Method and System For Facilitating Financial Transactions Over the Internet Using Registered Financial Instruments

• US 20070143209A1
• Filed: 02/12/2007
• Published: 06/21/2007
• Est. Priority Date: 12/30/1999
• Status: Abandoned Application

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: TSUEI, Henry, GOLUB, Matt, MOREA, Dominic, DUNCAN, John, GERMAN, Dan
• Application Number:
  US11/673,711
• Publication Number:
  US 20070143209A1
• Time in Patent Office: Days
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method for enabling two individual consumers to complete a transaction that includes payment from one consumer (the payor, or buyer) to another consumer (the payee, or seller). An intermediary typically operates the service over a computer network of nodes, such as the Internet. The buyer has the convenience of paying through a variety of different payment instruments. Likewise, the seller has the convenience of receiving payment through a variety of different disbursement instruments. For a fee, the intermediary collects the payment from the buyer and pays the seller. Although the intermediary may receive payment from the buyer before the intermediary transfers the payment to the seller, the intermediary may choose to pay the seller before receiving payment from the buyer. In this case, the intermediary assumes the risk of nonpayment by the buyer. Alternatively, the intermediary may pay a third party that specializes in processing transactions for the payment instrument chosen by the buyer to assume the risk of nonpayment by the buyer. In this case, the intermediary receives a promise of payment from the third party before the intermediary pays the seller. Such a promise of payment from the third party is referred to as an authorization.

Claims

1-31. -31. (canceled)

32. In an online commerce system including a buyer computer operated by a buyer, a seller computer operated by a seller, and a transaction facilitator comprising a network-accessible transaction computer that facilitates commercial transactions between buyers and sellers, a method for effecting a payment from the buyer to the seller in connection with an online transaction utilizing a payment enabling system operated by a payment enabler, comprising the computer-implemented steps of:

displaying information corresponding to a plurality of selectable payment instrument types to a buyer via the buyer computer;

receiving from the buyer computer information corresponding to registration by the buyer of a payment instrument comprising a selection of one of the plurality of payment instrument types as to define a registered payment instrument;

receiving from the seller computer information corresponding to registration by the seller of a disbursement instrument;

receiving a command from the transaction computer for a transfer of a predetermined amount of money from the buyer to the seller;

effecting a transfer of at least the predetermined amount of money from the buyer through a selected registered payment instrument; and

effecting a transfer of a disbursement amount of money through the disbursement instrument to the seller.

33. The method of claim 32, further comprising the step of obtaining an authorization in connection with the selected payment instrument from a third party.

34. The method of claim 32, wherein the predetermined amount of money from the buyer includes an amount to cover the cost of the payment service provided by the payment enabler, and the disbursement amount of money to the seller comprises an amount of money from the buyer less the cost of the payment service.

35. The method of claim 32, wherein the payment instrument registration information includes a buyer-entered payment amount.

36. The method of claim 35, wherein the buyer-entered payment amount is at least the amount of the transaction between the buyer and the seller.

37. The method of claim 32, wherein the steps of displaying selectable payment instrument information and receiving payment instrument registration information occur prior to the transaction between the buyer and the seller in a static registration process.

38. The method of claim 32, wherein the steps of displaying selectable payment instrument information and receiving payment instrument registration information occur after the transaction between the buyer and the seller in a dynamic registration process.

39. The method of claim 32, further comprising the step of determining if goods of the transaction have been acceptably delivered prior to transferring the disbursement amount to the seller.

40. The method of claim 32, wherein the payment instrument comprises a cash deposit made by the buyer at a payment location associated with a cash deposit payment instrument processor.

41. The method of claim 40, wherein the registration of the payment instrument comprises:

prearranging a cash deposit of the predetermined amount to be made by the buyer in person at the payment location; and

receiving notification that the buyer has completed the cash deposit.

42. The method of claim 40, further comprising step of, in response to receipt of information from the cash deposit payment instrument processor that the required deposit amount has been received from the buyer at the deposit location, transferring funds received from the buyer to a bank account of an intermediary, prior to making payment to the seller.

43. The method of claim 32, wherein the payment instrument comprises a credit card.

44. The method of claim 42, wherein the registration of the credit card as a payment instrument includes the steps of:

receiving from the buyer registration information comprising a name, address, card association, card number, and card expiration date;

sending the registration information to a credit card processor for approval; and

in response to receipt of approval from the credit card processor, registering the credit card as a payment instrument usable by the buyer.

45. The method of claim 32, further comprising the step of obtaining an authorization from a third party in connection with the use of a selected payment instrument.

46. The method of claim 32, wherein the payment instrument comprises an electronic fund transaction.

47. The method of claim 45, wherein the registration by the buyer of the payment instrument comprises:

receiving from the buyer registration information comprising a name, a routing number for a bank account to be used in the electronic fund transaction, and an account number for the bank account;

sending the registration information to an electronic fund transaction processor; and

receiving a decision whether future electronic fund transaction requests will be accepted by the electronic fund transaction processor.

48. The method of claim 45, further comprising the step of obtaining an authorization for the transfer of the amount of money using the electronic fund transaction, and wherein the step of obtaining the authorization comprises:

requesting that an electronic fund transaction processor debit a bank account of the buyer using an automated clearing house; and

receiving a decision whether the request is accepted based upon decision factors including a current balance for the bank account of the buyer and the amount of money.

49. The method of claim 32, wherein the payment instrument comprises a paper check.

50. The method of claim 48, wherein the registration of the payment instrument comprises:

prearranging a check deposit to be made by the buyer through a paper check sent through a postal service; and

receiving notification from a paper check processor that the paper check has cleared.

51. The method of claim 32, wherein the plurality of payment instrument types are selected from the group including:

flash cash deposit, credit card, electronic fund transaction, virtual private payment account, and paper check.

52. In an online commerce system including a buyer computer operated by a buyer, a seller computer operated by a seller, and a transaction facilitator comprising a network-accessible transaction computer that facilitates commercial transactions between buyers and sellers, a method for effecting a payment from the buyer to the seller in connection with an online transaction utilizing a payment enabling system operated by a payment enabler, comprising the computer-implemented steps of:

receiving from the buyer computer information corresponding to registration by a buyer of a cash deposit payment instrument;

receiving from the seller computer information corresponding to registration by a seller of a disbursement instrument;

receiving a command from the transaction computer for a transfer of a first predetermined amount of money from the buyer to the seller;

prearranging a cash deposit of a second predetermined amount to be made by the buyer in person at a deposit location associated with a cash deposit payment processor;

receiving notification from cash deposit payment processor that the buyer has completed the cash deposit of the second predetermined amount;

effecting a transfer of the first predetermined amount to an intermediary via the cash deposit payment processor; and

effecting a transfer of a disbursement amount of money through the disbursement instrument to the seller.

53. The method of claim 52, wherein the second predetermined amount includes an additional amount of money to cover the cost of the payment service provided by the payment enabler, and wherein the disbursement amount of money is an amount less than the second predetermined amount of money.

54. The method of claim 52, wherein the step of receiving payment instrument registration information occurs prior to the transaction between the buyer and the seller in a static registration process.

55. The method of claim 52, wherein the step of receiving payment instrument registration information occurs after the transaction between the buyer and the seller in a dynamic registration process.

56. The method of claim 52, further comprising the step of determining if goods of the transaction have been acceptably delivered prior to transferring the disbursement amount to the seller.

57. In an online commerce system including a buyer computer operated by a buyer, a seller computer operated by a seller, and a transaction facilitator comprising a network-accessible transaction computer that facilitates commercial transactions between buyers and sellers, a method for effecting a payment from the buyer to the seller in connection with an online transaction utilizing a payment enabling system operated by a payment enabler, comprising the computer-implemented steps of:

displaying information corresponding to a plurality of selectable payment instrument types to a buyer via the buyer computer;

receiving from the buyer computer information corresponding to registration by the buyer of one or more payment instruments comprising a selection of at least one of the plurality of payment instrument types as to define a registered payment instrument, either before or after a transaction is agreed upon between buyer and seller;

receiving from the seller computer information corresponding to registration by the seller of at least one disbursement instrument, either before or after a transaction is agreed upon between buyer and seller;

receiving a command from the transaction computer for a transfer of a predetermined amount of money from the buyer to the seller indicating an agreed upon transaction between the buyer and the seller;

if required for a selected payment instrument, obtaining an authorization from a third party for the transfer of at least the predetermined amount of money from the buyer;

effecting a transfer of at least the predetermined amount of money from the buyer through a selected registered payment instrument; and

effecting a transfer of a disbursement amount of money through the disbursement instrument to the seller.

58. The method of claim 57, wherein the predetermined amount of money from the buyer includes an amount to cover the cost of the payment service provided by the payment enabler, and the disbursement amount of money to the seller comprises an amount of money from the buyer less the cost of the payment service.

59. The method of claim 57, wherein the payment instrument registration information includes a buyer-entered payment amount.

60. The method of claim 57, wherein the buyer-entered payment amount is at least the amount of the transaction between the buyer and the seller.

61. The method of claim 57, wherein the steps of displaying selectable payment instrument information and receiving payment instrument registration information occur prior to the transaction between the buyer and the seller in a static registration process.

62. The method of claim 57, wherein the steps of displaying selectable payment instrument information and receiving payment instrument registration information occur after the transaction between the buyer and the seller in a dynamic registration process.

63. The method of claim 57, further comprising the step of determining if goods of the transaction have been acceptably delivered prior to transferring the disbursement amount to the seller.

64. The method of claim 57, wherein the payment instrument comprises a cash deposit made by the buyer at a payment location associated with a cash deposit payment processor.

65. The method of claim 64, wherein the registration of the payment instrument comprises:

prearranging a cash deposit to be made by the buyer in person at the payment location; and

receiving notification that the buyer has completed the cash deposit.

66. The method of claim 57, wherein the payment instrument comprises a credit card.

67. The method of claim 66, wherein the registration of the credit card as a payment instrument includes the steps of:

receiving from the buyer registration information comprising a name, address, card association, card number, and card expiration date;

sending the registration information to a credit card processor for approval; and

in response to receipt of approval from the credit card processor, registering the credit card as a payment instrument usable by the buyer.

68. The method of claim 67, wherein the step of obtaining an authorization comprises obtaining the authorization from a third party credit card transaction processor.

69. The method of claim 57, wherein the payment instrument comprises an electronic fund transaction.

70. The method of claim 69, wherein the registration by the buyer of the payment instrument comprises:

receiving from the buyer registration information comprising a name, a routing number for a bank account to be used in the electronic fund transaction, and an account number for the bank account;

sending the registration information to an electronic fund transaction processor; and

receiving a decision whether future electronic fund transaction requests will be accepted by the electronic fund transaction processor.

71. The method of claim 69, wherein the step of obtaining the authorization comprises:

requesting that an electronic fund transaction processor debit a bank account of the buyer using an automated clearing house; and

receiving a decision whether the request is accepted based upon decision factors including a current balance for the bank account of the buyer and the amount of money.

72. The method of claim 57, wherein the payment instrument comprises a paper check.

73. The method of claim 72, wherein the registration of the payment instrument comprises:

prearranging a check deposit to be made by the buyer through a paper check sent through a postal service; and

receiving notification from a paper check processor that the paper check has cleared.

74. The method of claim 57, wherein the plurality of payment instrument types are selected from the group including:

flash cash deposit, credit card, electronic fund transaction, virtual private payment account, and paper check.

75. A system for effecting payment for goods purchased by a buyer using a buyer computer system from a seller using a seller computer system in an online transaction facilitated by a transaction facilitator, the transaction facilitator operating a network-accessible transaction computer that facilitates commercial transactions between buyers and sellers, comprising:

a payment enabling system;

an interface for data communications with the buyer computer;

an interface for data communications with the seller computer;

an interface for data communications with the transaction computer;

the payment enabling system receiving transaction information from the transaction computer in response to a proposed transaction between the buyer and the seller facilitated by the transaction facilitator, the transaction information including a transaction amount;

the payment enabling system displaying information corresponding to a plurality of selectable payment instrument types to a buyer via the buyer computer;

the payment enabling system receiving from the buyer computer information corresponding to registration by the buyer of a payment instrument comprising a selection of one of the plurality of payment instrument types as to define a registered payment instrument;

the payment enabling system receiving from the seller computer information corresponding to registration by the seller of a disbursement instrument;

the payment enabling system receiving a command from the transaction computer for a transfer of a predetermined amount of money from the buyer to the seller;

the payment enabling system effecting a transfer of at least the predetermined amount of money from the buyer through a selected registered payment instrument; and

the payment enabling system effecting a transfer of a disbursement amount of money through the disbursement instrument to the seller.

76. The system of claim 75, wherein the payment enabling system obtains an authorization in connection with the selected payment instrument from a third party.

77. The system of claim 75, wherein the predetermined amount of money from the buyer includes an amount to cover the cost of the payment service provided by the payment enabler, and the disbursement amount of money to the seller comprises an amount of money from the buyer less the cost of the payment service.

78. The system of claim 75, wherein the payment instrument registration information includes a buyer-entered payment amount.

79. The system of claim 78, wherein the buyer-entered payment amount is at least the amount of the transaction between the buyer and the seller.

80. The system of claim 75, wherein the displaying of selectable payment instrument information and receiving payment instrument registration information occurs prior to the transaction between the buyer and the seller in a static registration process.

81. The system of claim 75, wherein the displaying of selectable payment instrument information and receiving payment instrument registration information occurs after the transaction between the buyer and the seller in a dynamic registration process.

82. The system of claim 75, wherein the payment enabling system determines if goods of the transaction have been acceptably delivered prior to transferring the disbursement amount to the seller.

83. The system of claim 75, wherein the payment instrument comprises a cash deposit made by the buyer at a payment location associated with a cash deposit payment instrument processor.

84. The system of claim 83, wherein the registration of the payment instrument comprises:

prearranging a cash deposit of the predetermined amount to be made by the buyer in person at the payment location; and

the payment enabling system receiving a notification that the buyer has completed the cash deposit.

85. The system of claim 83, the payment enabling system, in response to receipt of information from the cash deposit payment instrument processor that the required deposit amount has been received from the buyer at the deposit location, transferring funds received from the buyer to a bank account of an intermediary, prior to making payment to the seller.

86. The system of claim 75, wherein the payment instrument comprises a credit card.

87. The system of claim 86, wherein the registration of the credit card as a payment instrument comprises:

the payment enabling system receiving from the buyer registration information comprising a name, address, card association, card number, and card expiration date;

the payment enabling system sending the registration information to a credit card processor for approval; and

in response to receipt of approval from the credit card processor, the payment enabling system registering the credit card as a payment instrument usable by the buyer.

88. The system of claim 75, the payment enabling system obtaining an authorization from a third party in connection with the use of a selected payment instrument.

89. The system of claim 75, wherein the payment instrument comprises an electronic fund transaction.

90. The system of claim 89, wherein the registration by the buyer of the payment instrument comprises:

the payment enabling system receiving from the buyer registration information comprising a name, a routing number for a bank account to be used in the electronic fund transaction, and an account number for the bank account;

the payment enabling system sending the registration information to an electronic fund transaction processor; and

the payment enabling system receiving a decision whether future electronic fund transaction requests will be accepted by the electronic fund transaction processor.

91. The system of claim 89, the payment enabling system obtaining an authorization for the transfer of the amount of money using the electronic fund transaction, and wherein obtaining the authorization comprises:

the payment enabling system requesting that an electronic fund transaction processor debit a bank account of the buyer using an automated clearing house; and

the payment enabling system receiving a decision whether the request is accepted based upon decision factors including a current balance for the bank account of the buyer and the amount of money.

92. The system of claim 75, wherein the payment instrument comprises a paper check.

93. The system of claim 92, wherein the registration of the payment instrument comprises:

the payment enabling system prearranging a check deposit to be made by the buyer through a paper check sent through a postal service; and

the payment enabling system receiving notification from a paper check processor that the paper check has cleared.

94. The system of claim 75, wherein the plurality of payment instrument types are selected from the group including:

flash cash deposit, credit card, electronic fund transaction, virtual private payment account, and paper check.

95. A system for effecting payment for goods purchased by a buyer using a buyer computer system from a seller using a seller computer system in an online transaction facilitated by a transaction facilitator, a payment to the seller conditioned on receipt of a cash deposit by the buyer at a deposit location registered to a cash deposit payment instrument processor, the transaction facilitator operating a network-accessible transaction computer that facilitates commercial transactions between buyers and sellers, comprising:

a payment enabling system;

an interface for data communications with the buyer computer;

an interface for data communications with the seller computer;

an interface for data communications with the transaction computer;

an interface for data communications with at least one cash deposit payment instrument processor that issues cash deposit payment instruments;

the payment enabling system receiving from the buyer computer information corresponding to registration by a buyer of a cash deposit payment instrument;

the payment enabling system receiving from the seller computer information corresponding to registration by a seller of a disbursement instrument;

the payment enabling system receiving a command from the transaction computer for a transfer of a first predetermined amount of money from the buyer to the seller;

the payment enabling system prearranging a cash deposit of a second predetermined amount to be made by the buyer in person at a deposit location associated with a cash deposit payment processor;

the payment enabling system receiving notification from cash deposit payment processor that the buyer has completed the cash deposit of the second predetermined amount;

the payment enabling system effecting a transfer of the first predetermined amount to an intermediary via the cash deposit payment processor; and

the payment enabling system effecting a transfer of a disbursement amount of money through the disbursement instrument to the seller.

96. The system of claim 95, wherein the second predetermined amount includes an additional amount of money to cover the cost of the payment service provided by the payment enabler, and wherein the disbursement amount of money is an amount less than the second predetermined amount of money.

97. The system of claim 95, wherein the payment enabler receives payment instrument registration information prior to the transaction between the buyer and the seller in a static registration process.

98. The system of claim 95, wherein the payment enabler receives payment instrument registration information after the transaction between the buyer and the seller in a dynamic registration process.

99. The system of claim 95, wherein the payment enabler determines if goods of the transaction have been acceptably delivered prior to transferring the disbursement amount to the seller.

100. A system for effecting payment for goods purchased by a buyer using a buyer computer system from a seller using a seller computer system in an online transaction facilitated by a transaction facilitator, the transaction facilitator operating a network-accessible transaction computer that facilitates commercial transactions between buyers and sellers, comprising:

a payment enabling system;

an interface for data communications with the buyer computer;

an interface for data communications with the seller computer;

an interface for data communications with the transaction computer;

the payment enabling system displaying information corresponding to a plurality of selectable payment instrument types to a buyer via the buyer computer;

the payment enabling system receiving from the buyer computer information corresponding to registration by the buyer of one or more payment instruments comprising a selection of at least one of the plurality of payment instrument types as to define a registered payment instrument, either before or after a transaction is agreed upon between buyer and seller;

the payment enabling system receiving from the seller computer information corresponding to registration by the seller of at least one disbursement instrument, either before or after a transaction is agreed upon between buyer and seller;

the payment enabling system receiving a command from the transaction computer for a transfer of a predetermined amount of money from the buyer to the seller indicating an agreed upon transaction between the buyer and the seller;

if required for a selected payment instrument, the payment enabling system obtaining an authorization from a third party for the transfer of at least the predetermined amount of money from the buyer;

the payment enabling system effecting a transfer of at least the predetermined amount of money from the buyer through a selected registered payment instrument; and

the payment enabling system effecting a transfer of a disbursement amount of money through the disbursement instrument to the seller.

101. The system of claim 100, wherein the predetermined amount of money from the buyer includes an amount to cover the cost of the payment service provided by the payment enabler, and the disbursement amount of money to the seller comprises an amount of money from the buyer less the cost of the payment service.

102. The system of claim 100, wherein the payment instrument registration information includes a buyer-entered payment amount.

103. The system of claim 102, wherein the buyer-entered payment amount is at least the amount of the transaction between the buyer and the seller.

104. The system of claim 100, the payment enabling system displaying selectable payment instrument information and receiving payment instrument registration information prior to the transaction between the buyer and the seller in a static registration process.

105. The system of claim 100, the payment enabling system displaying selectable payment instrument information and receiving payment instrument registration information after the transaction between the buyer and the seller in a dynamic registration process.

106. The system of claim 100, the payment enabling system determining if goods of the transaction have been acceptably delivered prior to transferring the disbursement amount to the seller.

107. The system of claim 100, wherein the payment instrument comprises a cash deposit made by the buyer at a payment location associated with a cash deposit payment processor.

108. The system of claim 107, wherein the registration of the payment instrument comprises:

prearranging a cash deposit to be made by the buyer in person at the payment location; and

the payment enabling system receiving notification that the buyer has completed the cash deposit.

109. The system of claim 100, wherein the payment instrument comprises a credit card.

110. The system of claim 109 wherein the registration of the credit card as a payment instrument comprises:

the payment enabling system receiving from the buyer registration information comprising a name, address, card association, card number, and card expiration date;

the payment enabling system sending the registration information to a credit card processor for approval; and

in response to receipt of approval from the credit card processor, the payment enabling system registering the credit card as a payment instrument usable by the buyer.

111. The system of claim 109, wherein the obtaining of an authorization comprises obtaining the authorization from a third party credit card transaction processor.

112. The system of claim 100, wherein the payment instrument comprises an electronic fund transaction.

113. The system of claim 112, wherein the registration by the buyer of the payment instrument comprises:

the payment enabling system receiving from the buyer registration information comprising a name, a routing number for a bank account to be used in the electronic fund transaction, and an account number for the bank account;

the payment enabling system sending the registration information to an electronic fund transaction processor; and

the payment enabling system receiving a decision whether future electronic fund transaction requests will be accepted by the electronic fund transaction processor.

114. The system of claim 112, wherein obtaining the authorization comprises:

the payment enabling system requesting that an electronic fund transaction processor debit a bank account of the buyer using an automated clearing house; and

the payment enabling system receiving a decision whether the request is accepted based upon decision factors including a current balance for the bank account of the buyer and the amount of money.

115. The system of claim 100, wherein the payment instrument comprises a paper check.

116. The system of claim 115, wherein the registration of the payment instrument comprises:

the payment enabling system prearranging a check deposit to be made by the buyer through a paper check sent through a postal service; and

the payment enabling system receiving notification from a paper check processor that the paper check has cleared.

117. The system of claim 100, wherein the plurality of payment instrument types are selected from the group including:

flash cash deposit, credit card, electronic fund transaction, virtual private payment account, and paper check.