System and method for a risk-based purchase of goods

• US 5,732,400 A
• Filed: 01/04/1995
• Issued: 03/24/1998
• Est. Priority Date: 01/04/1995
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Blemings, Cornelia, Moody, Carol A. Baldwin, Mandler, Maria M., Krajewski, William Joseph, Benson, Carol, Engber, Marjorie, Battenfelder, Robert R., Nevens, James E., Figliozzi, John P., Luke, Keith W., Dixon, Kathleen M., Rouen, James E., McLaughlin, Ann P., Orbach, Levi Y.
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): Hughet, William N.
• Application Number:
  US08/368,290
• Time in Patent Office: 1,175 Days
• Field of Search: 364/401 R, 364/408, 235/379, 235/380, 235/381, 395/201, 395/226, 395/238
• US Class Current: 705/26.44
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/0619 Neutral agent
• CPC Class Codes: G06Q 30/0637 Approvals
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 17/0014 for vending, access and use of specific services not covered anywhere else in G07F17/00 meter-controlled dispensing of liquid, gas or electricity G07F15/00
• CPC Class Codes: G07F 7/00 Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A system and method provides for enabling on-line transactional services among sellers and buyers having no previous relationship with each other. The system includes a financial clearinghouse for receiving a request for goods or services from a buyer and making a real-time determination of a risk classification of the buyer utilizing an on-line repository of credit information. The financial clearinghouse determines a risk-based discount fee as a function of the buyer'"'"'s risk classification in order to establish a payment amount to the seller from the clearinghouse. If the transaction is authorized by the financial clearinghouse, the financial clearinghouse transmits the payment amount to the seller and transmits an invoice to the buyer for the purchase price of the transaction. The system can also include a broker coupled to the financial clearinghouse for providing an on-line order acceptance and processing capability between the buyers and sellers.

Claims

1. A financial clearinghouse for providing transactional services among at least one seller and a plurality of buyers, the financial clearinghouse being coupled to the at least one seller and to each of the plurality of buyers via a communications network, the financial clearinghouse comprising:

means for automatically determining a risk classification for one of the plurality of buyers;

means for automatically determining a risk-based discount fee for the one of the plurality of buyers as a function of the risk classification, the discount fee establishing a percentage of a purchase price of goods or services requested by the one of the plurality of buyers which will be transmitted to the at least one seller;

means for authorizing one of a request for goods or services and an acceptance of the request for goods and services;

means for automatically transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to the at least one seller; and

means for automatically transmitting an invoice in an amount equal to the purchase price to the one of the plurality of buyers.

2. The financial clearinghouse according to claim 1,

wherein the means for automatically determining the risk classification is responsive to a registration application from the one of the plurality of buyers, and further comprising:

means for receiving the request for goods or services from the one of the plurality of buyers;

means for forwarding the request for goods or services to the at least one seller; and

means for receiving at least one of the acceptance of the request and a rejection of the request from the at least one seller.

3. The financial clearinghouse according to claim 2,

wherein the means for automatically transmitting the amount is triggered based on a first predetermined criteria and

wherein the means for automatically transmitting the invoice is triggered based on a second predetermined criteria.

4. The financial clearinghouse according to claim 3,

wherein the first predetermined criteria and the second predetermined criteria include whether a notice of shipment has been received from the seller.

5. The financial clearinghouse according to claim 1, further comprising:

a broker coupled between the at least one seller and the plurality of buyers via a communications network, the broker including

means for receiving the request for goods or services from one of the plurality of buyers,

means for forwarding the request for goods or services to the at least one seller, and

means for receiving at least one of the acceptance of the request and a rejection of the request from the at least one seller.

6. A financial clearinghouse for providing transactional services to a plurality of sellers and a plurality of buyers, the financial clearinghouse being coupled to each of the plurality of sellers and to each of the plurality of buyers via a communications network, the financial clearinghouse comprising:

means for receiving a registration application from one of the plurality of buyers;

means for automatically determining a risk classification for the one of the plurality of buyers based on credit information retrieved from an on-line credit repository in response to receipt of the registration application;

means for automatically determining a risk-based discount fee as a function of the risk classification, the discount fee establishing a percentage of a purchase price of goods or services requested by the one of the plurality of buyers which will be transmitted to the plurality of sellers;

means for receiving a request for goods or services from one of the plurality of buyers;

means for forwarding the request for goods or services to at least one of the plurality of sellers;

means for receiving at least one of an acceptance and a rejection of the request for goods or services from the at least one of the plurality of sellers;

means for enabling the one of the plurality of buyers to select at least one of the plurality of sellers providing an acceptance;

means for authorizing at least one of the request for goods or services and the acceptance of the request for goods or services;

means for transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to the one of the plurality of sellers selected by the one of the plurality of buyers; and

means for transmitting an invoice in an amount equal to the purchase price to the one of the plurality of buyers.

7. The financial clearinghouse according to claim 6,

wherein the means for transmitting the amount is triggered based on a first predetermined criteria and

wherein the means for transmitting the invoice is triggered based on a second predetermined criteria.

8. The financial clearinghouse according to claim 7,

wherein the first predetermined criteria and the second predetermined criteria include whether a notice of shipment has been received.

9. A computer-implemented method of providing transactional services among at least one seller and a plurality of buyers, comprising the steps of:

automatically determining a risk classification for one of the plurality of buyers;

automatically determining a risk-based discount fee for the one of the plurality of buyers as a function of the risk classification, the discount fee establishing a percentage of a purchase price of goods or services requested by the one of the plurality of buyers which will be transmitted to the at least one seller;

authorizing one of a request for goods or services and an acceptance of the request for goods and services;

automatically transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to the at least one seller; and

automatically transmitting an invoice in an amount equal to the purchase price to the one of the plurality of buyers.

10. The method according to claim 9,

wherein the step of automatically determining the risk classification is responsive to a registration application from the one of the plurality of buyers, and further comprising the steps of:

receiving the request for goods or services from the one of the plurality of buyers;

forwarding the request for goods or services to the at least one seller; and

receiving at least one of the acceptance of the request and a rejection of the request from the at least one seller.

11. The method according to claim 10,

wherein the step of automatically transmitting the amount is triggered based on a first predetermined criteria and

wherein the step of automatically transmitting the invoice is triggered based on a second predetermined criteria.

12. The method according to claim 11,

wherein the first predetermined criteria and the second predetermined criteria include whether a notice of shipment has been received from the seller.

13. The method according to claim 9,

wherein a broker is coupled between the at least one seller and the plurality of buyers via a communications network, and further comprising the steps of:

receiving, by the broker, the request for goods or services from one of the plurality of buyers,

forwarding the request for goods or services from the broker to the at least one seller, and

receiving, in the broker, at least one of the acceptance of the request and a rejection of the request from the at least one seller.

14. A computer-implemented method for providing transactional services among at least one seller and a plurality of buyers, the method comprising the steps of:

receiving, in a financial clearinghouse, a registration application from one of the plurality of buyers;

automatically determining a risk classification for the one of the plurality of buyers in response to receipt of the registration application;

determining a risk-based discount fee as a function of the risk classification, the discount fee establishing a percentage of a purchase price of the goods or services which will be transmitted to the seller;

receiving, in the financial clearinghouse, a request for goods or services from one of the plurality of buyers;

forwarding the request for goods or services to the seller;

receiving at least one of an acceptance and a rejection of the request for goods or services from the seller;

authorizing at least one of the request for the goods or services and the acceptance of the request for goods or services;

if an acceptance is received, transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to the seller; and

transmitting an invoice in an amount equal to the purchase price to the one of the plurality of buyers.

15. The method according to claim 14,

wherein the step of receiving one of an acceptance and a rejection further includes receiving a notice of shipment of the goods or services to the one of the plurality of buyers from the seller, and

wherein the step of transmitting an amount equal to the purchase price less the discount fee further includes transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to the seller after the notice of shipment is received.

16. A system for providing transactional services among a plurality of sellers and a plurality of buyers, the system comprising:

a broker coupled between the plurality of sellers and the plurality of buyers via a communications network, the broker including means for receiving at least one of a registration application from one of the plurality of buyers and a request for goods or services from one of the plurality of buyers, the request including information identifying the one of the plurality of buyers;

a financial clearinghouse coupled to the broker via the communications network, the financial clearinghouse including

means for receiving the registration application from one of the plurality of buyers from the broker;

means for determining, in real time, a risk classification for the one of the plurality of buyers based on credit information retrieved from an on-line credit repository in response to receipt of the credit application,

means for determining a discount fee as a function of the risk classification, the discount fee establishing a percentage of a purchase price of the goods or services which will be transmitted to at least one of the plurality of sellers,

means for transmitting the discount fee to the broker;

the broker further including

means for receiving the discount fee from the financial clearinghouse,

means for transmitting the discount fee and the request for goods or services to at least one of the plurality of sellers,

means for receiving at least one of an acceptance and a rejection of the request for goods or services from the at least one of the plurality of sellers;

means for allowing the one of the plurality of buyers to select at least one of the at least one of the plurality of sellers providing an acceptance;

means for transmitting the one of an acceptance and a rejection of the request for goods or services to the financial clearinghouse;

the financial clearinghouse further including

means for receiving the one of an acceptance and a rejection of the request for goods or services from the broker,

if an acceptance is received, means for authorizing the acceptance by the one of the plurality of buyers,

means for transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to the selected one of the plurality of sellers, and

means for transmitting an invoice in an amount equal to the purchase price to the one of the plurality of buyers.

17. The system according to claim 16,

wherein, in the financial clearinghouse, the means for receiving the one of an acceptance and a rejection further includes means for receiving a notice of shipment of the goods or services to the one of the plurality of buyers, and

wherein the means for transmitting an amount further includes means for transmitting an amount equal to the purchase price less the discount fee multiplied by the purchase price to the selected one of the plurality of sellers when an acceptance of the request and a notice of shipment is received.