METHOD AND SYSTEM FOR COMPLETING A TRANSACTION BETWEEN A CUSTOMER AND A MERCHANT

• US 20110125619A1
• Filed: 12/16/2010
• Published: 05/26/2011
• Est. Priority Date: 07/23/2003
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc., Bill Me Later Incorporated (PayPal Holdings, Inc.)
• Inventors: Keithly, Thomas H., Hirschfeld, Daniel A., Talbert, Vincent W., Lavelle, Mark L.
• Granted Patent: US 8,095,445 B2
• Time in Patent Office: Days
• US Class Current: 705/30
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• 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
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A computer-implemented method for completing a transaction between a customer and at least one merchant receives, by a transaction system, an authorization request including customer data and transaction specific data from the merchant, wherein, prior to the authorization request, the customer is unknown to the transaction system; authenticates the customer by the transaction system based at least in part upon at least one of the following: at least a portion of the customer data, at least a portion of the transaction specific data or any combination thereof; authorizes the transaction by the transaction system based at least in part upon at least one of the following: at least a portion of the customer data, at least a portion of the transaction specific data or any combination thereof; and communicates the authorization response to the merchant during the transaction. An apparatus for implementing the method is disclosed.

Claims

1. A computer-implemented method for completing a transaction between a customer and at least one merchant, comprising:

receiving, by a transaction system, an authorization request including customer data and transaction specific data from the merchant, wherein, prior to the authorization request, the customer is unknown to the transaction system;

authenticating the customer by the transaction system based at least in part upon at least one of the following;

at least a portion of the customer data, at least a portion of the transaction specific data or any combination thereof;

authorizing the transaction by the transaction system based at least in part upon at least one of the following;

at least a portion of the customer data, at least a portion of the transaction specific data or any combination thereof; and

communicating the authorization response to the merchant during the transaction.

2. The method of claim 1, further comprising establishing a customer account on the transaction system;

and creating a customer-specific authorization key.

3. The method of claim 2, wherein the authorization key is at least partially derived from the customer data.

4. The method of claim 2, wherein the customer is assigned a plurality of authorization keys.

5. The method of claim 2, wherein the customer account number is identical to the customer-specific authorization key.

6. The method of claim 2, further comprising:

establishing a customer accounting database on a third-party accounting system;

establishing a customer account on the customer accounting database;

communicating at least one of the customer data, the authorization key and the transaction specific data from the transaction system to the third-party accounting system;

and

updating the customer account on the customer accounting database.

7. The method of claim 2, further comprising:

initiating a subsequent transaction by the customer with a merchant;

communicating an authorization request including the authorization key and transaction specific data from the merchant to the transaction system;

analyzing customer account balance and customer account status;

authorizing the subsequent transaction by the transaction system;

communicating an authorization response from the transaction system to the merchant; and

completing the subsequent transaction between the merchant and the customer.

8. The method of claim 7, further comprising:

establishing a customer accounting database on a third-party accounting system;

establishing a customer account on the customer accounting database;

communicating the authorization key and transaction specific data from the transaction system to the third-party accounting system; and

updating the customer account on the customer accounting database.

9. The method of claim 7, wherein the subsequent transaction involves the same customer and a different merchant.

10. The method of claim 2, further comprising:

initiating a subsequent transaction by the customer with a merchant;

communicating an authorization request including the customer data and transaction specific data from the merchant to the transaction system;

matching the customer to the customer-specific authorization key based upon the customer data;

analyzing customer account balance and customer account status;

authorizing the subsequent transaction by the transaction system;

communicating an authorization response from the transaction system to the merchant; and

completing the subsequent transaction between the merchant and the customer.

11. The method of claim 1, further comprising creating a customer-specific authorization key that is unknown to the customer and privately held between the transaction system and the merchant.

12. The method of claim 2, further comprising generating a customer-specific user identification and password for the customer account on the transaction system;

and communicating the customer-specific user identification and password to the customer.

13. An apparatus for completing a transaction between a customer and at least one merchant, comprising:

means for receiving an authorization request including customer data and transaction specific data from the merchant, wherein, prior to the authorization request, the customer is unknown to the transaction system;

means for authenticating the customer by the transaction system based at least in part upon at least one of the following;

at least a portion of the customer data, at least a portion of the transaction specific data or any combination thereof;

means for authorizing the transaction by the transaction system based at least in part upon at least one of the following;

at least a portion of the customer data, at least a portion of the transaction specific data or any combination thereof; and

means for communicating the authorization response to the merchant during the transaction.

14. The apparatus of claim 13, further comprising:

a customer account on the transaction system; and

means for creating a customer-specific authorization key that is unknown to the customer and privately held between the transaction system and the merchant.

16. The apparatus of claim 14, further comprising means for matching the customer to the customer-specific authorization key based upon the customer data.

17. The apparatus of claim 14, further comprising:

a customer-specific file history database on the transaction system;

means for building a customer history for each customer account on the customer-specific file history database; and

means for analyzing the customer history on the customer-specific file history database.

18. The apparatus of claim 14, further comprising a means for communicating the authorization key to at least one of the merchant, a third-party payment processor system, a third-party credit system and a third-party accounting system.

19. The apparatus of claim 14, further comprising means for authenticating the merchant.

20. The apparatus of claim 14, further comprising:

an authorization database on the transaction system; and

means for entering the transaction specific data for each authorized transaction on the authorization database.

15. The apparatus of claim 49, further comprising:

a customer account on the transaction system; and

means for creating a customer-specific authorization key.