System and Method for Optimal Selection of Payment Authorizations in Complex Commerce Systems

• US 20070250443A1
• Filed: 04/19/2006
• Published: 10/25/2007
• Est. Priority Date: 04/19/2006
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Srikanth, Viswanath, Perazolo, Marcelo, Hoyos, Carlos
• Granted Patent: US 7,533,060 B2
• Time in Patent Office: Days
• US Class Current: 705/44
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system and method for optimal selection of payment authorization in a complex commerce system is presented. A commerce system uses an algorithm to select an optimum payment authorization for a particular payment deposit. The algorithm allows the commerce system to support multiple types of authorizations while minimizing the number of payment transactions if possible. The algorithm also handles payment instrument priority, sufficient authorization amount availability, and a selection of a favorable set of payment authorizations for which to apply the payment deposit. Once the algorithm selects an optimum payment authorization for a particular payment deposit, the commerce system applies the payment deposit towards the optimum payment authorization in order to receive funds from an external payment provider.

Claims

1. A computer-implemented method comprising:

receiving an order that includes one or more order items;

acquiring a plurality of payment authorizations that correspond to the order;

creating a payment deposit that corresponds to shipping one or more of the order items, the payment deposit including a deposit amount;

selecting an optimum payment authorization for which to apply the payment deposit, the optimum payment authorization included in the plurality of payment authorizations; and

transferring funds corresponding to the deposit amount based upon the optimum payment authorization.

2. The method of claim 1 wherein the plurality of payment authorizations are received from one or more external payment providers, and wherein the selecting results in minimizing a number of payment transactions to one or more of the external payment providers.

3. The method of claim 1 further comprising:

performing the selecting based upon determining that the optimum payment authorization corresponds to an authorization amount that equals the deposit amount.

4. The method of claim 1 wherein each of the plurality of authorizations includes an authorization amount, the method further comprising:

in response to determining that the deposit amount does not equal one of the authorization amounts, determining whether a plurality of payment deposits are allowed to be applied to one of the plurality of payment authorizations;

in response to determining that a plurality of payment deposits are allowed to be applied to one of the payment authorizations, determining whether one of the authorizations includes a remaining authorization amount that equals the deposit amount;

performing the selecting based upon determining that the optimum payment authorization corresponds to the remaining authorization amount that equals the deposit amount.

5. The method of claim 4 further comprising:

flagging the payment authorizations that equal one or more unshipped releases, the unshipped releases corresponding to one or more of the order items;

determining whether one of the payment authorizations has not been flagged whose authorization amount is larger than the deposit amount;

performing the selecting based upon determining that one of the payment authorizations has not been flagged whose authorization amount is larger than the deposit amount;

determining whether the summation of the authorization amounts of the unflagged authorizations is larger than the deposit amount;

performing the selecting based upon determining that the summation of the authorization amounts of the unflagged payment authorizations is larger than the deposit amount, the optimum payment authorization included in the unflagged payment authorizations.

6. The method of claim 5 further comprising:

in response to determining that the summation of the authorization amounts of the unflagged payment authorizations is not larger than the deposit amount;

using each of the unflagged payment authorizations, the optimum payment authorization included in the unflagged authorizations; and

requesting an additional payment authorization from an external payment provider.

7. The method of claim 1 further comprising:

wherein the order includes a plurality of shipment addresses; and

wherein the order includes a plurality of payment methods.

8. A computer program product stored on a computer operable media, the computer operable media containing instructions for execution by a computer, which, when executed by the computer, cause the computer to implement a method for payment authorization selection, the method comprising:

receiving an order that includes one or more order items;

acquiring a plurality of payment authorizations that correspond to the order;

creating a payment deposit that corresponds to shipping one or more of the order items, the payment deposit including a deposit amount;

selecting an optimum payment authorization for which to apply the payment deposit, the optimum payment authorization included in the plurality of payment authorizations; and

transferring funds corresponding to the deposit amount based upon the optimum payment authorization.

9. The computer program product of claim 8 wherein the plurality of payment authorizations are received from one or more external payment providers, and wherein the selecting results in minimizing a number of payment transactions to one or more of the external payment providers.

10. The computer program product of claim 8 wherein the method further comprises:

performing the selecting based upon determining that the optimum payment authorization corresponds to an authorization amount that equals the deposit amount.

11. The computer program product of claim 8 wherein each of the plurality of authorizations includes an authorization amount, the method further comprising:

in response to determining that the deposit amount does not equal one of the authorization amounts, determining whether a plurality of payment deposits are allowed to be applied to one of the plurality of payment authorizations;

in response to determining that a plurality of payment deposits are allowed to be applied to one of the payment authorizations, determining whether one of the authorizations includes a remaining authorization amount that equals the deposit amount;

performing the selecting based upon determining that the optimum payment authorization corresponds to the remaining authorization amount that equals the deposit amount.

12. The computer program product of claim 11 wherein the method further comprises:

flagging the payment authorizations that equal one or more unshipped releases, the unshipped releases corresponding to one or more of the order items;

determining whether one of the payment authorizations has not been flagged whose authorization amount is larger than the deposit amount;

performing the selecting based upon determining that one of the payment authorizations has not been flagged whose authorization amount is larger than the deposit amount;

determining whether the summation of the authorization amounts of the unflagged authorizations is larger than the deposit amount;

performing the selecting based upon determining that the summation of the authorization amounts of the unflagged payment authorizations is larger than the deposit amount, the optimum payment authorization included in the unflagged payment authorizations.

13. The computer program product of claim 12 wherein the method further comprises:

in response to determining that the summation of the authorization amounts of the unflagged payment authorizations is not larger than the deposit amount;

using each of the unflagged payment authorizations, the optimum payment authorization included in the unflagged authorizations; and

requesting an additional payment authorization from an external payment provider.

14. The computer program product of claim 8 wherein the method further comprises:

wherein the order includes a plurality of shipment addresses; and

wherein the order includes a plurality of payment methods.

15. An information handling system comprising:

one or more processors;

a memory accessible by the processors;

one or more nonvolatile storage devices accessible by the processors; and

a payment authorization selection tool for selecting an optimum payment authorization, the payment authorization selection tool being effective to;

receive an order over a computer network that includes one or more order items;

acquire a plurality of payment authorizations over the computer network that correspond to the order;

create a payment deposit that corresponds to shipping one or more of the order items, the payment deposit including a deposit amount;

select an optimum payment authorization included in one of the nonvolatile storage devices for which to apply the payment deposit, the optimum payment authorization included in the plurality of payment authorizations; and

transfer funds over the computer network corresponding to the deposit amount based upon the optimum payment authorization.

16. The information handling system of claim 15 wherein the plurality of payment authorizations are received from one or more external payment providers, and wherein the selecting results in minimizing a number of payment transactions to one or more of the external payment providers.

17. The information handling system of claim 15 wherein the payment authorization selection tool is further effective to:

perform the selecting based upon determining that the optimum payment authorization corresponds to an authorization amount that equals the deposit amount.

18. The information handling system of claim 15 wherein each of the plurality of authorizations includes an authorization amount, the payment authorization selection tool further effective to:

in response to determining that the deposit amount does not equal one of the authorization amounts, determine whether a plurality of payment deposits are allowed to be applied to one of the plurality of payment authorizations;

in response to determining that a plurality of payment deposits are allowed to be applied to one of the payment authorizations, determine whether one of the authorizations includes a remaining authorization amount that equals the deposit amount;

perform the selecting based upon determining that the optimum payment authorization corresponds to the remaining authorization amount that equals the deposit amount.

19. The information handling system of claim 18 wherein the payment authorization selection tool is further effective to:

flag the payment authorizations that equal one or more unshipped releases, the unshipped releases corresponding to one or more of the order items;

determine whether one of the payment authorizations has not been flagged whose authorization amount is larger than the deposit amount;

perform the selecting based upon determining that one of the payment authorizations has not been flagged whose authorization amount is larger than the deposit amount;

determine whether the summation of the authorization amounts of the unflagged authorizations is larger than the deposit amount;

perform the selecting based upon determining that the summation of the authorization amounts of the unflagged payment authorizations is larger than the deposit amount, the optimum payment authorization included in the unflagged payment authorizations.

20. The information handling system of claim 19 wherein the payment authorization selection tool is further effective to:

in response to determining that the summation of the authorization amounts of the unflagged payment authorizations is not larger than the deposit amount;

use each of the unflagged payment authorizations, the optimum payment authorization included in the unflagged authorizations; and

request an additional payment authorization from an external payment provider.