METHOD AND SYSTEM FOR CONDUCTING A COMMERCIAL TRANSACTION BETWEEN A BUYER AND A SELLER

• US 20110004548A1
• Filed: 09/14/2010
• Published: 01/06/2011
• Est. Priority Date: 10/29/2001
• Status: Abandoned Application

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Deyer, Michael, Yeakle, Loraine Martin, Fernandes, Paulo, Duncan, Alistair, Vaux, Jonathan, Triplett, Brian
• Application Number:
  US12/881,831
• Publication Number:
  US 20110004548A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 40/03 Credit; Loans; Processing thereof

Abstract

A system for conducting a commercial transaction between a buyer and a seller is disclosed. The system includes a transaction processing system for facilitating payment for a transaction between the buyer and the seller. In addition to the buyer and the seller, the transaction processing system also interacts with an issuer and an acquirer. The issuer issues and manages an account for the buyer. The acquirer manages an account for the seller. The transaction processing system operates as follows. An electronic invoice relating to the transaction is first posted to the system by the seller or another system. Upon accepting the electronic invoice, the system creates a payment instruction. Each time a payment instruction is created, the system applies certain pre-negotiated payment terms and conditions between the buyer and the seller to the payment instruction. After the payment instruction is created, the system seeks approval from the buyer. Upon approval of the payment instruction by the buyer, the system schedules the payment for the specified date in the payment instruction. On the scheduled day of payment, the system calculates one or more fees, such as a transaction fee, for the transaction according to a pre-defined variable pricing matrix, which is determined based on a set of pre-negotiated conditions agreed to by the issuer, the acquirer, the seller and the buyer. For example, the transaction fee is an amount used by the issuer and the acquirer to compensate each other for processing the payment on behalf of the buyer and the seller. After the transaction fee is calculated, information relating to the transaction fee and the payment instruction is formatted into a proper message format(s) and submitted for authorization, clearing and settlement. The issuer and the acquirer then communicate with one another directly or indirectly to settle the funds. Additionally, the system provides transaction and activity reports to all relevant parties as well as access to status information for invoices and payments.

Claims

1. A system for executing a payment transaction between a buyer and a seller, comprising:

a module configured to allow the buyer to create and/or approve the payment transaction for payment; and

a transaction processing module configured to handle a first account and a second account for the buyer and the seller respectively, the transaction processing module further configured to store a plurality of terms and conditions relating to the buyer, the seller, an issuer and an acquirer;

wherein the transaction processing module cooperates with the issuer and the acquirer to process the payment transaction in accordance with the plurality of terms and conditions.

2. The system according to claim 1 further comprising:

a module configured to receive an invoice from the seller;

wherein the invoice represents a request for payment for the payment transaction.

3. The system according to claim 1 wherein the issuer manages the first account for the buyer;

and

wherein the acquirer manages the second account for the seller.

4. The system according to claim 1 wherein the transaction processing module determines one or more fees associated with the payment transaction based on the plurality of terms and conditions.

5. The system according to claim 4 wherein the one or more fees include a transaction fee;

and

wherein the transaction fee is an amount used by the issuer and the acquirer to compensate each other for processing the payment transaction.

6. The system according to claim 4 wherein the transaction module processing module calculates a net amount using the transaction fee;

and

wherein the net amount is an amount to be received by the seller from the payment transaction.

7. The system according to claim 6 wherein the net amount is calculated by subtracting the transaction fee from an invoice amount stated in the payment transaction.

8. The system according to claim 1 wherein the transaction processing module cooperates with a data transport and processing network to facilitate communication with the issuer and the acquirer.

9. The system according to claim 1 wherein the plurality of terms and conditions relating to the buyer, the seller, the issuer and the acquirer are pre-negotiated terms and conditions agreed to amongst the buyer, the seller, the issuer and the acquirer.

10. The system according to claim 9 wherein one or more the pre-negotiated terms and conditions are obtained from a sales agreement between the buyer and the seller.

11. The system according to claim 1 wherein at least one of the buyer, the seller, the issuer and the acquirer is authorized to modify one or more of the plurality of terms and conditions stored on the transaction processing module.

12-25. -25. (canceled)

26. A system for processing payment transactions between sellers and buyers, comprising:

an invoice processor configured to receive and process invoices received from the sellers and generate an output invoice file;

a payment manager configured to maintain buyer accounts and seller accounts for the buyers and the sellers respectively, the payment manager further configured to receive the output invoice file and generate one or more payment instructions, each payment instruction corresponding to a payment transaction;

an issuer pricing engine configured to store a plurality of terms and conditions relating to the buyers, the sellers, issuers and acquirers, the issuer pricing engine further configured to calculate one or more fees and a net amount for each payment transaction based on relevant portions of the plurality of terms and conditions;

an authorization and settlement interface configured to communicate with the issuers to obtain payment authorizations for the payment transactions respectively; and

a payment results processor configured to report results relating to the payment authorizations for the payment transactions and provide the payment manager with the results so as to allow the payment manager to update the buyer accounts and the seller accounts.

27. The system according to claim 26 wherein the issuers manage the buyer accounts for the buyers;

and

wherein the acquirers manage the seller accounts for the sellers.

28. The system according to claim 26 wherein the one or more fees include a transaction fee;

and

wherein the transaction fee for each payment transaction is an amount used by a participating issuer and a participating acquirer to compensate each other for handling the payment transaction.

29. The system according to claim 28 wherein the issuer pricing engine further calculates a net amount using the transaction fee for each payment transaction;

and

wherein the net amount is an amount to be received by a seller involved in the payment transaction.

30. The system according to claim 26 wherein the authorization and settlement interface cooperates with a data transport and processing network to facilitate communication with the issuers to obtain payment authorizations for the payment transactions.

31. The system according to claim 26 wherein the plurality of terms and conditions relating to the buyers, the sellers, the issuers and the acquirers are pre-negotiated terms and conditions agreed to amongst the buyers, the sellers, the issuers and the acquirers.

32. The system according to claim 26 wherein the plurality of terms and conditions are modifiable.

36. The method according to claim 26 wherein calculating the net amount further comprises:

subtracting the transaction fee from an invoice amount stated in the payment transaction;

wherein the net amount is an amount to be received by the seller for the payment transaction.

37. The method according to claim 26 further comprising:

upon obtaining the payment authorization, settling the payment transaction between the issuer and the buyer and between the acquirer and the seller.

33. A method for processing a payment transaction between a buyer and a seller, comprising:

maintaining a buyer account and a seller account for the buyer and the seller respectively;

maintaining a plurality of terms and conditions relating to the buyer, the seller, an issuer and an acquirer;

approving the payment transaction for payment out of the buyer account;

determining one or more fees for the payment transaction based on the plurality of terms and conditions;

calculating a net amount using the transaction fee;

obtaining payment authorization for the payment transaction from the issuer; and

upon obtaining the payment authorization, settling the payment transaction between the issuer and the acquirer.

34. The method according to claim 33 wherein the one or more fees include a transaction fee;

and

wherein the transaction fee is an amount to be used by the issuer and the acquirer to compensate each other for settling the payment transaction on behalf of the buyer and the seller.

35. The method according to claim 34 wherein respective portions of the transaction fee to be received by the issuer and the acquirer vary depending on arrangement made between the issuer and the acquirer.

38. The method according to claim 33 further comprising:

updating the plurality of terms and conditions.

39-42. -42. (canceled)