TRANSACTION PAYABLES PROCESSING SYSTEM AND APPROACH

• US 20110029404A1
• Filed: 05/24/2010
• Published: 02/03/2011
• Est. Priority Date: 10/06/2006
• Status: Abandoned Application

• Current Assignee: Syncada LLC (US Bancorp)
• Original Assignee: Syncada LLC (US Bancorp)
• Inventors: Hahn-Carlson, Dean W., Langer, Richard G.
• Application Number:
  US12/786,128
• Publication Number:
  US 20110029404A1
• Time in Patent Office: Days
• US Class Current: 705/26.35
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Transaction management for financial institution-based transactions is facilitated. According to an example embodiment of the present invention, a transaction management approach involves the processing of financial aspects of transactions for a plurality of buyers using transaction rules associated with each buyer for automatically auditing each transaction (for each buyer) and any associated invoices. When a transaction or series of transactions are approved for payment for a particular buyer, the payment is automatically facilitated on behalf of the particular buyer. A fee is then assessed for each transaction or series of transactions, to one or more of the particular buyer, involved seller (or sellers), and a sponsor of the buyer that sponsors the buyer'"'"'s participation.

Claims

1. A system for auditing and risk-value assessment for electronic funds transfers, the system comprising:

a database that stores a plurality of entity-specific algorithms for generating risk value criterion for collecting receivable funds for transactions between buyers and sellers, each algorithm being defined for a specific financial institution that finances payment for the transactions in return for the right to collect the receivable funds for the transactions; and

a risk-assessment computer circuit configured to, for each transaction to be financed by a particular financial institution and involving a buyer and a seller,

access the database to retrieve one of the entity-specific algorithms for the particular financial institution, using identification data assigned to the particular financial institution,

access historical data characterizing previous transactions involving at least one buyer and previous transactions involving at least one seller involved in the transaction,

generate risk evaluation criteria using the accessed historical data for both the buyer and seller parties, and

execute the retrieved entity-specific algorithm, using the risk evaluation criteria and a monetary amount of the transaction as inputs, to determine a condition of authorization for providing funds to cover payment to the seller in exchange for the right to collect receivable funds from the buyer.

2. The system of claim 1, wherein the risk-assessment computer circuit is configured to

generate the risk evaluation criteria for a plurality of transactions sponsored by a sponsoring financial institution that provides payment to sellers in each of the transactions, and

execute the retrieved entity-specific algorithm to determine the condition of authorization by using the evaluation criteria and a monetary amount for all of the plurality of transactions as inputs, to cover payment to the sellers involved in the plurality of transactions in exchange for the right to collect the receivables for all of the plurality of transactions.

3. The system of claim 1, wherein the risk-assessment computer circuit is configured to

generate the risk evaluation criteria for a pool of receivables for a plurality of transactions involving disparate combinations of buyers and sellers to be financed by the particular sponsoring financial institution, and

execute the retrieved entity-specific algorithm to determine the condition of authorization by using the evaluation criteria and a monetary amount for all of the transactions in the pool as inputs, to cover payment to the sellers involved in the plurality of transactions in exchange for the right to collect the receivables for all of the plurality of transactions.

4. The system of claim 1, wherein the risk-assessment computer circuit is configured to

generate the risk evaluation criteria for a pool of receivables for a plurality of transactions involving disparate combinations of buyers and sellers to be financed by the particular sponsoring financial institution, and

execute the retrieved entity-specific algorithm to determine the condition of authorization by using the evaluation criteria and a monetary amount for all of the transactions in the pool as inputs, to cover payment to the sellers involved in the plurality of transactions in exchange for the right to collect the receivables for all of the plurality of transactions.

5. The system of claim 1, wherein

the database stores entity-specific algorithms for disparate financial institutions,

the risk-assessment computer circuit is configured to

access the historical data by accessing historical data characterizing a determined condition of authorization for at least one previous transaction involving a financial institution that is different than the particular financial institution and at least one of a buyer and seller involved in the transaction, the condition of authorization for the previous transaction having been based upon an algorithm specific to the different financial institution, and

generate the risk-evaluation criteria using the historical data characterizing the at least one previous transaction funded by the different financial institution.

6. The system of claim 1, wherein the risk-assessment computer circuit is configured to, for each transaction to be financed by a particular financial institution and involving a buyer and a seller, access historical data characterizing previous transactions involving at least one buyer and previous transactions involving at least one seller involved in the transaction, at least one of the previous transactions involving a financial institution that is different from the particular financial institution.

7. The system of claim 1, wherein the risk-assessment computer circuit is configured to provide the determined condition of authorization for use in electronically generating an electronic funds transfer to the seller.

8. The system of claim 1, wherein the risk-assessment computer circuit is configured to

generate the risk evaluation criteria for a pool of receivables for a plurality of transactions involving disparate combinations of buyers and sellers to be financed by the particular sponsoring financial institution, and

execute the retrieved entity-specific algorithm to determine the condition of authorization by using the evaluation criteria and a monetary amount for all of the transactions in the pool as inputs, to cover payment to the sellers involved in the plurality of transactions in exchange for the right to collect the receivables for all of the plurality of transactions.

9. The system of claim 1, wherein the risk-assessment computer circuit is configured to

retrieve one of the entity-specific algorithms for an independent financial institution that is independent from buyer and seller parties to the transaction,

generate the risk evaluation criteria using the retrieved algorithm for the independent financial institution, and

determine the condition of authorization by using the evaluation criteria and a monetary amount for all of the transactions in the pool as inputs, to cover payment to the sellers involved in the plurality of transactions in exchange for the right to collect the receivables for all of the plurality of transactions.

10. The system of claim 1, wherein the risk-assessment computer circuit is configured to

determine a condition of authorization by assigning a risk value to a payment covered for the transaction,

pool receivables for a plurality of transactions having a similar risk values and assigning a pool risk value based upon the similar risk values,

for each pool of receivables, execute one of the entity-specific algorithms for a pool-funding financial entity to fund the pool of receivables, using a monetary amount for all of the receivables in the pool and the pool risk value as inputs, to determine a condition of authorization for funding of the pool by the pool-funding financial entity.

11. A system for auditing transaction data sets and risk-value assessment of electronic funds transfers, the system comprising:

a database that stores

a plurality of entity-specific algorithms for generating risk value criterion for collecting receivable funds for transactions between buyer and seller entities, each algorithm being defined for a specific financial institution that finances the transactions,

contract data sets for executed contracts between buyer and seller entities involved in a transaction to which the contract data set applies, and

buyer entity-specific auditing data that, when used with transaction data as inputs to an auditing algorithm, generates authorization data for transactions involving the buyer entity;

an auditing circuit configured, for each transaction data set pertaining to a transaction defined by one of the contract data sets and involving contracting buyer and seller entities, to execute an auditing algorithm using the transaction data set, contract data set, and buyer-specific auditing data for the buyer entity as inputs, to selectively generate buyer authorization data for the transaction;

a risk-assessment circuit configured to, for each transaction for which buyer authorization data is generated,

access historical data characterizing previous transactions involving at least one of the buyer and seller entities involved in the transaction,

generate risk evaluation criteria using the accessed historical data for at least one of the buyer and seller entities, and

execute one of the entity-specific algorithms for a financial institution that finances the transaction, using the risk evaluation criteria and a monetary amount of the transaction as inputs, to determine a condition of authorization for providing funds to cover payment to the seller entity in exchange for the right to collect receivable funds from the buyer entity.

12. The system of claim 11, further including a correlation circuit configured to correlate each set of transaction data with a contract data set and buyer-specific profile data.

13. The system of claim 11, wherein the risk-assessment circuit is configured to generate the risk evaluation criteria using the accessed historical data for at least one of the buyer entities and at least one of the seller entities.

14. The system of claim 11, wherein the risk-assessment circuit is configured to

access historical data characterizing previous transactions involving the buyer entity, and

generate the risk evaluation criteria using the accessed historical data for the buyer entity, for extending credit to the seller entity for electronic payment made to the seller entity'"'"'s financial institution.

15. The system of claim 11, wherein the risk-assessment circuit is configured to

access historical data characterizing previous transactions involving the seller entity, and

generate the risk evaluation criteria using the accessed historical data for the seller entity, for extending credit to the buyer entity for electronic payment made to the seller entity on behalf of the buyer entity.

16. The system of claim 11, wherein the risk-assessment circuit is configured to, in response to determining a condition of authorization for providing funds to cover payment to the seller entity, electronically acquire data specifying a right to collect funds from the buyer entity for the payment made to the seller entity and generating an electronic payment instruction for providing the funds to the seller entity.

17. The system of claim 11, wherein the risk-assessment circuit is configured to

determine a condition of authorization by assigning a risk value to a payment covered for the transaction,

pool receivables for a plurality of transactions having similar risk values and assigning a pool risk value based upon the similar risk values,

for each pool of receivables, execute one of the entity-specific algorithms for a pool-funding financial entity to fund the pool of receivables, using a monetary amount for all of the receivables in the pool and the pool risk value as inputs, to determine a condition of authorization for funding of the pool by the pool-funding financial entity.

18. A method for auditing and risk-value assessment for electronic payments, the method comprising:

storing, in a database, a plurality of entity-specific algorithms for generating risk value criterion for collecting receivable funds for transactions between buyer and seller entities, each algorithm being defined for a specific financial institution that finances payment for the transactions in return for the right to collect the receivable funds for the transactions; and

in a programmed risk-assessment logic circuit, for each transaction to be financed by a particular financial institution and involving buyer and seller entities,

accessing the database to retrieve one of the entity-specific algorithms for the particular financial institution, using identification data assigned to the particular financial institution,

accessing historical data characterizing previous transactions involving at least one buyer entity and previous transactions involving at least one seller entity involved in the transaction,

generating risk evaluation criteria using the accessed historical data for both the buyer and seller entities, and

executing the retrieved entity-specific algorithm, using the risk evaluation criteria and a monetary amount of the transaction as inputs, to determine a condition of authorization for providing funds to cover payment to the seller entity in exchange for the right to collect receivable funds from the buyer entity.

19. The method of claim 18, wherein

generating risk evaluation criteria includes generating criteria for a plurality of transactions sponsored by a sponsoring financial institution that provides payment to seller entities in each of the transactions, and

executing the retrieved entity-specific algorithm includes executing the algorithm to determine the condition of authorization by using the evaluation criteria and a monetary amount for all of the plurality of transactions as inputs, to cover payment to the seller entity involved in the plurality of transactions in exchange for the right to collect the receivables for all of the plurality of transactions.

20. The method of claim 18, wherein

generating the risk evaluation criteria includes generating the criteria for a pool of receivables for a plurality of transactions involving disparate combinations of buyer and seller entities to be financed by the particular sponsoring financial institution, and

executing the retrieved entity-specific algorithm includes executing the algorithm to determine the condition of authorization using the evaluation criteria and a monetary amount for all of the transactions in the pool as inputs, to cover payment to the seller entities involved in the plurality of transactions in exchange for the right to collect the receivables for all of the plurality of transactions.