System and method for multi-currency transactions

• US 5,897,621 A
• Filed: 06/14/1996
• Issued: 04/27/1999
• Est. Priority Date: 06/14/1996
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.), Paypal International Limited (PayPal Holdings, Inc.)
• Original Assignee: Cybercash, Inc. (VeriSign, Inc.)
• Inventors: Jackson, Andrew, Hart, Alden Sherburne Jr., Lindenberg, Robert A., Crocker, Stephen David, Paredes, Denise Marie, Eastlake, Donald Eggleston III, Boesch, Brian Paul
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): Patel, Jagdish
• Application Number:
  US08/663,896
• Time in Patent Office: 1,047 Days
• Field of Search: 705/39, 705/42, 705/43, 705/38, 705/26, 235/379, 235/380
• US Class Current: 705/26.82
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 30/0637 Approvals
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method for determining approval of a multi-currency transaction between a customer and a merchant over a network. The system includes a customer computer which is connected to a communication network, a merchant computer which is connected to the communication network, and a server connected to both the customer computer via the communication network and to the merchant computer via the communication network. The customer computer includes a first set of data which contains an amount the customer is willing to pay the merchant for a product in a first currency. The merchant computer includes a second set of data which contains a product price at which the merchant agrees to sell the product in a second currency. The server receives the first set of data and the second set of data. The server then converts the amount in the first currency into a converted amount in the second currency. The server approves the transaction if the converted amount in the second currency is within a risk range of the product price in the second currency in accordance with current exchange rates. Once the transaction is approved, the approving entity may settle the transaction at its discretion thereby bearing the risk associated with currency exchange. The parties, however, incur no risk. The customer will pay be amount in the first currency and the merchant will receive the price in the second currency. These are values known and agreed to by the parties at the time of the transaction.

Claims

1. A system for determining approval of a transaction between a merchant and a customer over a network, wherein the system comprises:

a network;

a customer computer associated with a customer and connected to the network, wherein the customer computer further comprises a first set of data including an amount the customer agrees to pay a merchant for a product in a first currency;

a merchant computer associated with the merchant and connected to the network, wherein the merchant computer further comprises a second set of data including a product price at which the merchant agrees to sell the product in a second currency; and

a server connected to both the customer computer via the network and the merchant computer via the network for receiving the first set of data and the second set of data, for converting the amount in the first currency into a converted amount in the second currency, and for approving the transaction when the converted amount in the second currency is within a risk range of the product price in the second currency in accordance with current exchange rates.

2. The system of claim 1, wherein the server further comprises a customer balance account associated with the customer, wherein the customer balance account comprises a customer balance in the first currency and wherein the server deducts the amount in the first currency from the balance in the customer balance account.

3. The system of claim 1, wherein the server further comprises a merchant balance account associated with the merchant, wherein the merchant balance account comprises a balance in the second currency and wherein the server adds the converted amount in the second currency to the balance in the merchant balance account.

4. The system of claim 1, wherein the first set of data further comprises a plurality of currencies, wherein the server selects a selected currency from the plurality of currencies, which when converted to the converted amount in the second currency, the merchant price is the least expensive.

5. The system of claim 1, wherein the network is selected from the group consisting of the Internet, an intranet, and a Local Area Network (LAN).

6. A system for determining approval of a transaction between a customer and a merchant over a network, wherein the system comprises:

a network;

a customer computer associated with a customer and connected to the network, wherein the customer computer further comprises a first set of data including an amount the customer agrees to pay to a merchant in a first currency;

a merchant computer associated with a merchant and connected to the network, wherein the merchant computer further comprises a second set of data including a product price at which the merchant is willing to sell the product to the customer in a second currency; and

a server connected to both the customer computer via the network and the merchant computer via the network for receiving the first set of data and the second set of data, for converting the amount in the first currency into a converted amount in the second currency, for approving the transaction when the converted amount in the second currency is within a risk range of the product price in the second currency in accordance with current exchange rates, and for recording an insufficiency when the product price in the second currency exceeds the converted amount in the second currency.

7. The system of claim 6, wherein the server further comprises a customer balance account associated with the customer, wherein the customer balance account comprises a balance in the first currency and wherein the server deducts the amount in the first currency from the balance in the consumer balance account.

8. The system of claim 6, wherein the server further comprises a merchant balance account associated with the merchant, wherein the merchant balance account comprises a balance in the second currency and wherein the server adds the converted amount in the second currency to the balance in the merchant balance account.

9. The system of claim 6, wherein the first set of data further comprises a plurality of currencies, wherein the server selects a selected currency from the plurality of currencies, which when converted to the converted amount in the second currency, the product price is the least expensive.

10. The system of claim 6, wherein the network is selected from the group consisting of the Internet, an intranet, and a Local Area Network (LAN).

11. A system for determining approval of a transaction between a customer and a merchant over a network, wherein the transaction includes the merchant providing a product to the customer at a product price in a second currency, wherein the product price in the second currency is known by the customer, wherein the system comprises:

a network;

a customer computer associated with a customer and connected to the network, wherein the customer computer comprises a first set of data including an amount in a first currency; and

a server connected to the customer computer via the network and having the product price in the second currency, for receiving the first set of data, converting the amount in a first currency into a converted amount in the second currency, and for approving the transaction when the amount in the first currency is within a risk range of the product price in the second currency in accordance with current exchange rates.

12. The system of claim 11, wherein the server further comprises a customer balance account associated with the customer, wherein the customer balance account comprises a balance in the first currency and wherein the server deducts the amount in the first currency from the balance in the consumer balance account.

13. The system of claim 11, wherein the server further comprises a merchant balance account associated with the merchant, wherein the merchant balance account comprises a balance in the second currency and wherein the server adds the converted amount in the second currency to the balance in the merchant balance account.

14. The system of claim 11, wherein the first set of data further comprises a plurality of customer currencies, wherein the server selects a customer currency from the plurality of customer currencies, which when converted to the converted amount in the merchant currency, the merchant price is the least expensive.

15. The system of claim 11, wherein the network is selected from the group consisting of the Internet, an intranet, and a Local Area Network (LAN).

16. A system for determining approval of a transaction between a customer and a merchant over a network, wherein the transaction includes the merchant providing a product to the customer at a product price in a second currency, wherein the product price in the second currency is known by the customer, wherein the system comprises:

a network;

a customer computer associated with a customer and connected to the network, wherein the customer computer comprises a first set of data including an amount in a first currency; and

a server connected to the customer computer via the network and having the product price in the second currency, for receiving the first set of data, and for approving the transaction when the amount in the first currency is within a risk range of the product price in the second currency in accordance with current exchange rates.

17. The system of claim 16, wherein the server further comprises a customer balance account associated with the customer, wherein the customer balance account comprises a balance in the first currency and wherein the server deducts the amount in the first currency from the balance in the consumer balance account.

18. The system of claim 16, wherein the server further comprises a merchant balance account associated with the merchant, wherein the merchant balance account comprises a balance in the second currency and wherein the server adds the converted amount in the second currency to the balance in the merchant balance account.

19. The system of claim 16, wherein the first set of data further comprises a plurality of customer currencies, wherein the server selects a customer currency from the plurality of customer currencies, which when converted to the converted amount in the merchant currency, the merchant price is the least expensive.

20. The system of claim 16, wherein when the product price in the second currency exceeds the converted amount in the second currency, the server records the insufficiency.

21. The system of claim 16, wherein the network is selected from the group consisting of the Internet, an intranet, and a Local Area Network (LAN).

22. A method for determining approval of a transaction over a network between a customer having a customer computer connected to the network and a merchant having a merchant computer connected to the network, wherein the customer computer and the merchant computer are connected to a server via the network, wherein the method comprises:

transmitting a first set of data from a customer computer to a server, wherein the first set of data includes an amount in a first currency;

transmitting a second set of data by a merchant computer to the server;

wherein the second set of data includes a product price in a second currency;

receiving the first set of data and the second set of data by the server; and

approving the transaction by the server when the amount in the first currency is within a risk range of the product price in the second currency in accordance with current exchange rates.

23. A method for determining approval of a transaction over a network between a customer having a customer computer connected to the network and a merchant having a merchant computer connected to the network, wherein the customer computer and the merchant computer are connected to a server via the network, wherein the method comprises:

transmitting a second set of data from a merchant computer to a customer computer, wherein the second set of data includes a product price in a second currency;

receiving the second set of data by the customer computer, wherein the customer computer has a first set of data including an amount in a first currency;

transmitting the first set of data and the second set of data by the customer computer to a server; and

approving the transaction when the server determines if the amount in the first currency is within a risk range of the product price in the second currency in accordance with current exchange rates.

24. A method for determining approval of a transaction over a network between a customer having a customer computer connected to the network and a merchant having a merchant computer connected to the network, wherein the customer computer and the merchant computer are connected to a server via the network, wherein the method comprises:

transmitting a first set of data from a customer computer to a merchant computer, wherein the first set of data includes an amount in a first currency;

receiving the first set of data by the merchant computer, wherein the merchant computer has a second set of data including a product price in a second currency;

transmitting the first set of data and second set of data by the merchant computer to a server; and

approving the transaction by the server when the amount in the first currency is within a risk range of the product price in the second currency in accordance with current exchange rates.