ELECTRONIC BOND AND GUARANTY PROCESS AND BUSINESS METHOD

• US 20070168218A1
• Filed: 03/28/2007
• Published: 07/19/2007
• Est. Priority Date: 05/03/2000
• Status: Active Grant

• Current Assignee: Shelton Harrison
• Original Assignee: Shelton Harrison
• Inventors: HARRISON, Shelton
• Granted Patent: US 7,853,515 B2
• Time in Patent Office: Days
• US Class Current: 705/57
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

Disclosed is a method by which suretyship bonds and guaranties can be purchased and deployed over the Internet in real time, providing automatic application evaluation and policy binding. The principal'"'"'s credit card information is used in a repeating cycle of pre-authorized charges so that the card account serves as effective collateral. A bond seal image, safeguarded against piracy, appears in Web pages indicating the existence of bond coverage. A dynamically updated gauge displays the margin of coverage available under the bond at any given moment. Means of integrating the information technology of auction site and surety company are also disclosed. The invention makes possible an unprecedented level of security in user-to-user auction environments and eliminates the need for online escrow services. Means of accepting bidder deposit accounts is also disclosed, enabling automatic, electronic payment the moment an Internet auction closes and eliminating the need for online payment services.

Claims

1. A method for providing bond or guaranty coverage, comprising:

providing an online site having a server operable to receive a bond or guaranty request;

receiving from a first entity a bond or guaranty request;

issuing a bond or guaranty in response to bond or guaranty request; and

generating a unique identifier suitable to display on a computer network evidencing to a second entity that a bond or guaranty is in effect with respect to transactions involving a first entity.

2. An online method for providing online bond or guaranty coverage, comprising:

providing an online site having a server operable to receive a bond or guaranty request;

issuing a bond or guaranty to a first entity in response to a bond or guaranty request;

generating a unique identifier suitable to display on a computer network evidencing to a second entity that a bond or guaranty is in effect with respect to transactions involving a first entity; and

receiving a claim from the second entity in response to a first entity default.

3. An online method for providing online bond or guaranty coverage, comprising:

providing an online site having a server operable to receive a bond request;

receiving a bond request for an online buyer;

registering the online buyer with the online site;

providing the online buyer with the ability to select a standard bond or a preferred bond; and

issuing a bond in response to the bond request by the online buyer.

4. An online method for providing online bond or guaranty coverage, comprising:

providing an online site having a server operable to receive a bond or guaranty request;

receiving a bond or guaranty request from a first entity;

processing the bond or guaranty request;

issuing a bond or guaranty to the first entity in response to the bond request; and

displaying an unique identifier to an online auction site carrying the first entity'"'"'s auction listing, the unique identifier evidencing that the first entity'"'"'s auction listing is covered by a bond.

5. A method for preventing the piracy of an online image, comprising:

generating a first image for display at a specified image address, the first image displaying a first expiration date;

generating a second image that is different than the first image, the second image displaying a second expiration date; and

replacing the first image with the second image, so that the second image displays the second expiration date at the specified image address.

6. A method for resolving a claim dispute associated with an on-line auction, comprising:

receiving a claim from a winning bidder of the on-line auction;

investigating the claim of the winning bidder based upon information contained in the claim and information provided by a seller of the on-line auction; and

determining validity of the claim based upon review of the information contained in the claim and the information provided by the seller.

7. The method of claim 6, further comprising reimbursing the winning bidder when the claim is determined to be valid.

8. The method of claim 6, further comprising having the seller visit a claim dispute page to submit information related to the claim.

9. The method of claim 6, further comprising reconsidering the claim by offering an opportunity for the winning bidder to provide supplemental information when the claim is denied.

10. The method of claim 9, further comprising affording the seller an opportunity to rebut the winning bidder'"'"'s supplemental information.

11. A method of conducting an on-line auction for a seller of goods, comprising:

hosting an on-line auction through a computer of a client-server environment;

allowing the seller of the on-line auction to accept bids from a bidder; and

allowing the seller of the on-line auction to reject bids from another bidder.

12. The method of claim 11, wherein allowing the seller to reject bids from the another bidder comprises determining whether payment by the another bidder for the on-line auction can be guaranteed.

13. A method for conducting an on-line auction, comprising:

providing a server on which an on-line auction is hosted;

enabling a seller to list a pending on-line auction on the server;

enabling a bidder to bid on the pending on-line auction;

providing a link upon completion of the on-line auction that enables a winning bidder to rate an experience with respect to the completed on-line auction, the link taking a web browser executing on a client device of the winning bidder to a location where the experience can be rated; and

reviewing the rated experience to determine whether a guarantee will be offered to the winning bidder.

14. The method of claim 13, wherein reviewing the rated experience comprises determining whether a preferred guarantee will be offered to the winning bidder.

15. A method for conducting an on-line auction, comprising:

hosting an on-line auction through a computer of a client-server environment;

providing a guarantee for the on-line auction; and

determining a level of the guarantee based on historical data recorded for a participant of the on-line auction.

16. A method for conducting on-line auctions, comprising:

hosting a first on-line auction through a computer of a client-server environment;

recording an evaluation parameter of a seller of the first on-line auction;

hosting a second on-line auction including the seller;

providing a guarantee for the second on-line auction; and

determining a level of the guarantee based on historical data recorded for the seller from the first on-line auction.

17. A method for conducting on-line auctions, comprising:

hosting a first on-line auction through a computer of a client-server environment;

recording an evaluation parameter of a seller of the first on-line auction;

hosting a second on-line auction including the seller; and

determining whether to offer a guarantee for the second on-line auction based on historical data recorded for the seller including the first on-line auction.

18. A method for displaying on an online auction site the coverage limit remaining a given bond or guaranty, the method comprising the steps of:

generating a Bond Margin Gauge, the Bond Margin Gauge corresponding to the difference between the bond or guaranty coverage limit and a value assigned to the transactions involving a first entity on an online auction site, and displaying the Bond Margin Gauge on an online auction site.

19. The online method as described in claim 18, wherein the step of generating a Bond Margin Gauge a Bond Margin Gauge providing a value equal to the difference between the first entity'"'"'s bond or guaranty coverage limit and the sum total for the high bid in each of the first entity'"'"'s auction listings that are presently open.

20. The online method as described in claims 18, wherein the step of generating a Bond Margin Gauge comprises a Bond Margin Gauge providing a value equal to the difference between the first entity'"'"'s bond or guaranty coverage limit and the sum of the sum total of the high bids in each of the first entity'"'"'s auction listing that are open and the sum total of the winning bids in each of the first entity'"'"'s auction listings that have closed, but for which the period during which a claim can be filed has not closed.