System and method for multiple currency transactions
DCFirst Claim
1. A method for supporting a transaction for purchasing a product by a buyer from a vendor, the product having a price, a local currency of the buyer being different from a local currency of the vendor, the buyer communicating with the vendor through an electronic network, the method comprising:
- determining an exchange rate, obtained through the electronic network, of the local currency of the vendor to the local currency of the buyer and hedging to guarantee a future exchange of currency using said exchange rate, wherein said hedging is performed with at least one of an option or a forward contract;
converting the price of the product from the local currency of the vendor to the local currency of the buyer to form a final price according to said exchange rate, such that the buyer receives information according said final price before a payment transaction is performed;
receiving payment from the buyer for said final price to perform said payment transaction;
converting said payment from the local currency of the buyer to the local currency of the vendor to form a converted payment according to said exchange rate, wherein said exchange rate is guaranteed at a time of calculating said final price for the buyer, such that the price in the local currency of the vendor is guaranteed and such that the price in the local currency of the buyer is guaranteed for a predetermined period of time, and is hedged; and
paying the vendor with said converted payment;
wherein at least said receiving said payment from the buyer, said converting said payment and said paying the vendor are hedged, such that a risk of a change in said exchange rate is hedged.
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Accused Products
Abstract
A system and a method for supporting e-commerce transactions in multiple currencies, in which the local currency of the buyer is different from the local currency of the vendor, such that the exchange between the currencies is hedged at the time of sale of the product. The system and method enable the buyer to receive a final price for the product before the transaction is performed. The system and method also provide a mechanism for the actual exchange between the currencies of the buyer and of the vendor, such that the aspects of the transaction regarding payment are fully supported. Preferably, online hedging of the currency transactions is performed, in order to reduce the risk involved with predetermination of prices.
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Citations
26 Claims
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1. A method for supporting a transaction for purchasing a product by a buyer from a vendor, the product having a price, a local currency of the buyer being different from a local currency of the vendor, the buyer communicating with the vendor through an electronic network, the method comprising:
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determining an exchange rate, obtained through the electronic network, of the local currency of the vendor to the local currency of the buyer and hedging to guarantee a future exchange of currency using said exchange rate, wherein said hedging is performed with at least one of an option or a forward contract;
converting the price of the product from the local currency of the vendor to the local currency of the buyer to form a final price according to said exchange rate, such that the buyer receives information according said final price before a payment transaction is performed;
receiving payment from the buyer for said final price to perform said payment transaction;
converting said payment from the local currency of the buyer to the local currency of the vendor to form a converted payment according to said exchange rate, wherein said exchange rate is guaranteed at a time of calculating said final price for the buyer, such that the price in the local currency of the vendor is guaranteed and such that the price in the local currency of the buyer is guaranteed for a predetermined period of time, and is hedged; and
paying the vendor with said converted payment;
wherein at least said receiving said payment from the buyer, said converting said payment and said paying the vendor are hedged, such that a risk of a change in said exchange rate is hedged. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21)
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22. A method for performing online hedging at a Web site for a transaction for purchasing a product by a buyer from a vendor, the product having a price, a local currency of the buyer being different from local currency of the vendor, the buyer communicating with the vendor through an electronic network, the method comprising:
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determining an exchange rate, obtained through the electronic network, of the vendor to the local currency of the buyer;
converting the price of the product from the local currency of the vendor to the local currency of the buyer to form a final price according to said exchange rate, such that the buyer receives information concerning said final price before a payment transaction is performed;
hedging said payment transaction by a hedging enabler process, said hedging enabler process communicating only with the vendor;
receiving payment from the buyer for said final price to perform said payment transaction;
converting said payment from the local currency of the buyer to the local currency of the vendor to form a converted payment according to said exchange rate; and
paying the vendor with said converted payment. - View Dependent Claims (23)
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24. A method for supporting a transaction for purchasing a product by a buyer from a vendor, the product having a price, a local currency of the buyer being different from a local currency of the vendor, the buyer communicating with the vendor through an electronic network, the method comprising:
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determining an exchange rate, obtained through the electronic network, of the vendor to the local currency of the buyer;
converting the price of the product from the local currency of the vendor to the local currency of the buyer to form a final price according to said exchange rate, such that the buyer receives information concerning said final price before a payment transaction is performed;
receiving payment from the buyer for said final price to perform said payment transaction;
converting said payment from the local currency of the buyer to the local currency of the vendor to form a converted payment according to said exchange rate, wherein said exchange rate is guaranteed at a time of calculating said final price for the buyer, such that the price in the local currency of the vendor is guaranteed and such that the price in the local currency of the buyer is guaranteed; and
paying the vendor with said conventional payment;
wherein hedging is performed for the period from said determining said exchange rate to said paying the vendor such that a risk of a change in said exchange rate is hedged and wherein said hedging is performed with at least one of an option or a forward contract.
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25. A method for supporting a transaction for purchasing a product by a buyer from a vendor with a plurality of payments, the product having a price, a local currency of the buyer being different from a local buyer communicating with the vendor through an electronic network, the method comprising:
- the method comprising;
determining an exchange rate, obtained through the electronic network, of the vendor to the local currency of the buyer;
converting the price of the product from the local currency of the vendor to the local currency of the buyer to form a final price according to said exchange rate, such that the buyer receives information concerning said final price before a payment transaction is performed;
receiving payment from the buyer from said final price to perform said payment transaction;
converting said payment from the local currency of the buyer to the local currency of the vendor to form a conventional payment according to said exchange rate, wherein said converting the price of the product further comprises converting the price of the product to a plurality of payments for being paid by the buyer at a plurality of separate points in time, each payment being converted according to said exchange rate and each payment being hedged separately, such that said receiving payment from the buyer is performed repeatedly from each payment by the buyer; and
paying the vendor with each converted payment;
wherein hedging is performed for the period from said determining said exchange rate to said paying the vendor for each converted payment such that a risk of a change in said exchange rate is hedged. - View Dependent Claims (26)
- the method comprising;
Specification