Automated Transaction Processing System and Approach with Currency Conversion

• US 20090265274A1
• Filed: 06/26/2009
• Published: 10/22/2009
• Est. Priority Date: 04/12/2005
• Status: Abandoned Application

• Current Assignee: Syncada LLC (US Bancorp)
• Original Assignee: US Bank National Association (US Bancorp)
• Inventors: Hahn-Carlson, Dean W., Bailey, William H., Pogue, James B.
• Application Number:
  US12/493,032
• Publication Number:
  US 20090265274A1
• Time in Patent Office: Days
• US Class Current: 705/44
• 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 30/04 Billing or invoicing
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Transaction management for contract and contract-related approaches is facilitated. According to an example embodiment of the present invention, a transaction management system automatically sets contract terms including currency conversion terms for a transaction based on business rules previously established between parties to a transaction. In one implementation, the transaction management node automatically derives a contract term including a pricing-related term for a transaction between a buyer and seller using contract information therefor. The pricing-related term is used to set a price for the transaction, and a currency conversion term is used to convert the set price (or a portion of the set price corresponding to a particular transaction party) into a different currency.

Claims

1. An automated transaction pricing and payment system comprising:

a rule-variable database that stores sets of predefined contract variables specific to each of a plurality of established contracts respectively agreed upon by parties including buyers and sellers, and sets of business rule variables for the buyers and sellers, the business rule variables including timing criteria and a predefined standard for computing currency conversion data, the standard being susceptible to fluctuation as a function of currency conversion rates;

a correlation database that stores correlation data for correlating received transaction data sets with a set of predefined contract variables and sets of business rule variables for a buyer and a seller involved in a transaction to which the transaction data set pertains;

a transaction processing engine configured with software to, for each received transaction data set for a transaction involving a buyer and seller,

use data in the correlation database to correlate the received transaction data set with contract variables and sets of business rule variables for the buyer and seller, and

execute a derivation algorithm, using the correlated contract variables and business rule variables as inputs to the algorithm, to derive a specific pricing term for the transaction and to set a price for the transaction based upon the specific term, the price being in a first currency; and

a pricing-settlement engine configured to respond to the derived pricing term by, for each transaction, using the correlated variables to

select a currency conversion standard and time based upon timing criteria and a predefined standard in the correlated business rule variables,

using the timing criteria and an active currency conversion rate defined for the predefined standard, convert the set price from the first currency into a converted price in a second different currency, and

generate and output electronic payment instructions to effect payment and settlement for the transaction based upon the set price, the business rule variables and the converted price.

2. The system of claim 1, wherein transaction processing engine is configured to execute a derivation algorithm by dynamically selecting and implementing a derivation algorithm on a transaction-by-transaction basis using the correlated business rule variables for at least one party to the transaction.

3. The system of claim 1, wherein the transaction processing engine is configured to execute a derivation algorithm by dynamically selecting and implementing a derivation algorithm on a transaction-by-transaction basis based upon currency conversion criteria specified in the business rule variables for at least one party to the transaction.

4. The system of claim 1, wherein the transaction processing engine is configured to generate new pricing term derivation variables specific to the transaction based upon correlated business rule variables for buyer and seller parties to the transaction, and to execute the derivation algorithm by using the generated derivation variables as inputs.

5. The system of claim 1, wherein the transaction processing engine is configured to generate new contract variables for the transaction using correlated business rule variables for buyer and seller parties to the transaction, and to execute the derivation algorithm by using the new contract variables as inputs to the algorithm.

6. The system of claim 1, wherein the pricing-settlement engine is configured to generate new currency conversion variables using correlated business rule variables, and to select the currency conversion standard by using the generated currency conversion variables to select the standard.

7. The system of claim 1, wherein the transaction processing engine is configured to execute a derivation algorithm by using stored contract pricing variables, previously agreed upon by the buyer and the seller, as inputs to the algorithm.

8. The system of claim 1, wherein the transaction processing engine is configured to match a product identification term in the correlated business rule variables for the buyer with a seller product specified in the transaction data set, and to execute a derivation algorithm to derive a specific pricing term by using correlated variables pertaining to the identified product as inputs to the algorithm.

9. The system of claim 1, wherein the pricing-settlement engine is configured to select a currency conversion standard based upon correlated business rule variables that specify a timing characteristic for determining a currency conversion rate.

10. The system of claim 1, wherein the pricing-settlement engine is configured to use correlated business rule variables that specify a reference location to set a date and time for determining a currency conversion rate, and to convert the set price using a currency conversion rate for the set date and time.

11. The system of claim 1, wherein the transaction processing engine is configured to execute the derivation algorithm using correlated contract variables defined for an established contract between a financing entity providing funds to effect payment for the transaction and one of a buyer and seller participant in the transaction.

12. The system of claim 1, wherein the pricing-settlement engine is configured to, for at least two transactions involving a currency conversion between a first and second currency during a particular time period,

convert the set price from the first currency into a converted price in a second different currency for each transaction by converting a bulk sum of currency for set prices in each transaction, processed using disparate derivation algorithm inputs, from the first currency to the second currency based upon a conversion configuration globally applied across the transactions, and

generate and output respective sets of electronic payment instructions for each transaction to effect payment individually for each party to each of the transactions.

13. The system of claim 1, wherein the pricing-settlement engine is configured to assess a currency conversion fee to at least one party to the transaction based upon the generated electronic payment data.

14. The system of claim 1, wherein the pricing-settlement engine is configured to convert the set price from the first currency into a converted currency by converting funds relating to the set price from the first currency to a second currency at a first currency conversion rate and to convert funds relating to the set price for at least one party to the transaction at a different currency conversion rate.

15. The system of claim 1, wherein the pricing-settlement engine is configured to select a currency conversion standard based upon correlated business rule variables indicating an acceptable range of currency exchange rates and external data indicating currently-available exchange rates.

16. The system of claim 1, wherein the pricing-settlement engine is further configured with software to

compare an actual currency conversion rate specified by the selected currency conversion standard to a budgeted currency conversion rate specified in the correlated business rule variables for a transaction party;

in response to the actual currency conversion rate being different than the budgeted currency conversion rate, calculate a difference between the converted set price using the actual currency conversion rate and a set price as converted using the budgeted currency conversion rate, and assess a fee to one of the transaction parties based upon the calculated difference.

17. The system of claim 1,

further including an auditing engine configured to audit the payment for each transaction using the correlated business rule variables and contract variables to determine a condition of payment authorization for the transaction, and

wherein the pricing-settlement engine is configured to generate and output electronic payment instructions in response to the determined condition of payment authorization.