Electronic purchasing method and apparatus for performing the same

• US 6,901,387 B2
• Filed: 06/14/2002
• Issued: 05/31/2005
• Est. Priority Date: 12/07/2001
• Status: Expired due to Term

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: General Electric Capital Financial (General Electric Company)
• Inventors: Buehler, Hans D., Wells, Jonathan B.
• Primary Examiner(s): Elisca, Pierre E.
• Application Number:
  US10/064,151
• Publication Number:
  US 20030110136A1
• Time in Patent Office: 1,082 Days
• Field of Search: 705/64, 705/44, 705/51, 705/4, 705/35, 705/38, 705/39, 705/40, 705/41
• US Class Current: 705/64
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A computer-assisted method includes hardware, software and telecommunications components that cooperatively achieve the technical effect of an improved electronic purchasing transaction system. In various embodiments of the invention, at least one master account is established for a client. A pool of limited use account identifiers or secondary account identifiers, that are separate and distinct from the master account, is associated with the master account by a purchasing system or account management system. Each of the limited use account identifiers may be used by the client to purchase items from merchants.

Claims

1. A method of providing a limited use account identifier to a client, the method comprising:

establishing a master account for a client;

assigning a pool of limited use account identifiers that correspond to the master account prior to a purchase by the client, said pool of limited use account identifiers including a plurality of limited use account identifiers each identifying a separate financial account at an issuer, each formatted for processing by payment card networks, and each issued without an associated physical transaction card, each of the pool of limited use account identifiers being different from the master account identifier;

receiving, from the client, a request for a purchase of an item from a merchant;

identifying the pool of limited use account identifiers associated with said client; and

assigning one of said plurality of limited use account identifiers from said pool for use by said client in making said purchase with said merchant.

2. The method of claim 1, wherein said request comprises:

an identification of a financial amount for the purchase, and a purchase order identifier assigned by the client for the purchase.

3. The method of claim 2, said purchase order identifier may be used to identify information in at least one of:

a general ledger of the client;

a client database;

a account management system database.

4. The method of claim 2, said request further comprising an identification of the merchant.

5. The method of claim 4, said identification of the merchant comprising a standard industrial code (SIC) corresponding to the merchant.

6. The method of claim 1, further comprising:

establishing a pre-authorization for the purchase, said pre-authorization including an amount and a period of validity.

7. The method of claim 6, further comprising:

receiving, from the merchant, the limited use account identifier and an amount of the purchase; and

authorizing completion of the transaction using the limited use account identifier if said purchase amount is within the pre-authorized amount.

8. The method of claim 7, further comprising:

providing an account summary of the master account to the client, the account summary including the financial amount and the purchase order number, whereby the client may enter data from the account summary into a general ledger.

9. An apparatus for providing a limited use account identifier to a client, comprising:

a processor; and

a memory in operative communication with the processor, the memory for storing a plurality of processing instructions enabling the processor to;

establish a master account for an client, the master account having a master account identifier;

assign a pool of limited use account identifiers that correspond to the master account prior to a purchase by the client, said pool of limited use account identifiers including a plurality of limited use account identifiers each identifying a separate financial account at an issuer, each formatted for processing by payment card networks, each of the pool of limited use account identifiers being different from the master account;

receive, from the client, a request for a purchase of an item from a merchant;

identify the pool of limited use account identifiers associated with said client;

assign one of said plurality of limited use account identifiers from said pool for use by said client in making said purchase with said merchant; and

provide said one of said plurality of limited use account identifiers to said client without issuing a physical transaction card.

10. A computer readable medium encoded with processing instructions for implementing a method, performed by a computer, for providing a limited use account identifier to a client, the method comprising:

establishing a master account for a client, the master account having a master account identifier;

assigning a pool of limited use account identifiers that correspond to the master account prior to a purchase by the client, said pool of limited use account identifiers including a plurality of limited use account identifiers each identifying a separate financial account at an issuer and each formatted for processing by payment card networks, each of the pool of limited use account identifiers being different from the master account identifier,

receiving, from the client, a request for a purchase of an item from a merchant;

identifying the pool of limited use account identifiers associated with said client;

assigning one of said plurality of limited use account identifiers from said pool for use by said client in making said purchase with said merchant; and

providing said one of said plurality of limited use account identifiers to said client without issuing a physical transaction card having said account identifier embossed thereon.

11. A method of conducting a transaction involving a client and a merchant, comprising:

identifying an item to purchase from said merchant;

associating information identifying the item to purchase with a purchase order identifier;

submitting the purchase order identifier to an account management system; and

receiving, in response to said submitting, a limited use account identifier allocated by said account management system for use in said transaction, said limited use account identifier associated with a pre-authorization record having at least a first authorization criteria, said limited use account identifier identifying a financial account at an issuer.

12. The method of claim 11, further comprising:

presenting said limited use account identifier to the merchant for payment; and

receiving an indication of an authorization for the transaction if the transaction complies with the at least first authorization criteria in the pre-authorization record.

13. The method of claim 11, said pre-authorization record having at least a second authorization criteria, said receiving an indication of an authorization if the transaction complies with both said at least first and said at least second authorization criteria.

14. The method of claim 11, further comprising:

receiving, after completion of the transaction, an account summary including information identifying details of the transaction.

15. The method of claim 11, wherein the associated information comprises at least one of:

the purchase order identifier;

an amount;

an identification of the merchant; and

detailed transaction information from the purchase order.

16. The method of claim 15 wherein said details further include general ledger information corresponding to an appropriate entry for the item in a general ledger of the client.

17. The method of claim 11, wherein said limited use account identifier is made available for a subsequent transaction upon at least one of:

settlement of said transaction and expiration of said pre-authorization.

18. An apparatus for conducting a transaction involving a client and a merchant, comprising:

a processor; and

a memory in operative communication with the processor, the memory for storing a plurality of processing instructions enabling the processor to;

identify an item to purchase from said merchant;

associate information identifying the item to purchase with a purchase order identifier;

submit the purchase order identifier to a account management system; and

receive, after submitting the purchase order identifier, a limited use account identifier allocated by said account management system for use in the transaction, said limited use account identifier associated with a pre-authorization record having at least a first authorization criteria, said limited use account identifier identifying a financial account at an issuer.

19. A computer-readable medium encoded with processing instructions for implementing a method, performed by a computer, for conducting a transaction involving a client and a merchant, the method comprising:

identifying an item to purchase from said merchant;

associating information identifying the item to purchase with a purchase order identifier;

submitting the purchase order identifier to a account management system; and

receiving, after said submitting, a limited use account identifier allocated by said account management system for use in said transaction, said limited use account identifier associated with a pre-authorization record having at least a first authorization criteria, said limited use account identifier identifying a financial account at an issuer.

20. A method for performing an electronic transaction, comprising:

receiving a plurality of limited use account identifiers corresponding to a master account, each of said limited use account identifiers identifying a financial account at an issuer;

receiving information identifying a desired transaction, said information including a purchase order identifier and an identification of a buyer and an amount;

associating one of said limited use account identifiers with said desired transaction;

establishing a pre-authorization record for said desired transaction, said pre-authorization record including at least one transaction limitation associated with said limited use account identifier;

forwarding said limited use account identifier to said buyer for use in conducting said transaction; and

receiving, after completion of said transaction, settlement information associated with said limited use account identifier and associating said settlement information with said purchase order identifier.

21. The method of claim 20, wherein said information identifying said desired transaction further includes information identifying an expected price of said item.

22. The method of claim 21, further comprising:

forwarding said settlement information to said buyer.

23. The method of claim 21, further comprising:

forwarding said settlement information to said buyer in a form which can be imported into a general ledger.

24. The method of claim 21, wherein said item comprises a plurality of items.

25. The method of claim 21, wherein said detailed transaction information further includes identification of a merchant.

26. The method of claim 20, wherein said identification of said buyer is confirmed using cryptographic techniques.

27. A method for initiating a purchasing transaction, comprising:

selecting a merchant and an item to purchase from the merchant;

associating a purchase order with the selected item;

providing information associated with the purchase order to an account management system for association with the purchase of the item;

receiving, from the account management system, a limited use account identifier corresponding to a master account, said limited use account identifier selected by said account management system for use in completing said purchase from said merchant, the limited use account identifier selected from a plurality of available, pre-assigned limited use account identifiers, each of said limited use account identifiers identifying a separate account at an account issuer; and

providing the selected limited use account identifier to the merchant in order to initiate payment for the item.

28. The method of claim 27, said item comprising at least one of:

a product and a service.

29. The method of claim 27, said limited use account identifier comprising one of:

a numerical code, an alphabetic code and an alpha-numeric code.

30. The method of claim 27, said master account having a single master account identification code that is different from each of the plurality of available limited use account identifiers by at least one character.

31. The method of claim 27, wherein said plurality of limited use account identifiers each comprise sixteen characters.

32. The method of claim 27, further comprising:

receiving settlement data confirming the completion of a transaction involving said limited use account identifier, said settlement data including a transaction date and a transaction amount; and

associating said settlement data with said purchase order to generate an account summary.

33. The method of claim 32, further comprising:

generating data indicating that said limited use account number is available for reuse.

34. The method of claim 32, further comprising:

updating a general ledger based on said account summary.

35. The method of claim 27, wherein said associating includes matching said settlement data with said purchase order based on said limited use account identifier.

36. The method of claim 27, said providing the information associated with the purchase order to the account management system further comprising:

providing information identifying a master account and information identifying said financial amount to said account management system.

37. The method of claim 27, said selected limited use account identifier comprising a re-activated limited use account identifier that was used in a prior transaction.

38. The method of claim 37, wherein the re-activated limited use account identifier is selected after a predetermined time from the prior transaction.

39. The method of claim 37, wherein the re-activated limited use account identifier is selected when said limited use account identifier is next in a listing of re-activated limited use account identifiers.

40. The method of claim 37, wherein the re-activated limited use account identifier is selected after settlement of a prior transaction involving the re-activated limited use identifier.

41. The method of claim 27, wherein said plurality of limited use account identifiers are assigned to the master account prior to said ordering.

42. The method of claim 27, further comprising:

receiving from the account management system an authorization to use the limited use account identifier, prior to said providing the selected limited use account identifier to the merchant.

43. The method of claim 27, wherein a total number of said plurality of limited use account identifiers is determined by at least one of the account management system and an account issuer.

44. The method of claim 43, wherein the total number is determined based on at least one of:

a purchasing history of the client and an anticipated purchasing volume of the client.

45. The method of claim 27, wherein the item comprises a plurality of items.

46. A method for purchasing an item, comprising:

associating a plurality of limited use account identifiers with a master account associated with a client, each of said limited use account identifiers identifying separate financial accounts at an issuer;

receiving information identifying a proposed transaction, said information including information identifying an item to purchase, an amount of the proposed transaction, and a purchase order identifier;

selecting one of said plurality of limited use account identifiers for use in purchasing said item, said selection based on an identity of the client and an availability of one of said plurality of limited use account identifiers;

submitting a pre-authorization request to one of an issuer or an issuer processor;

receiving a pre-authorization for said proposed transaction, said pre-authorization associated with an expiration date and a transaction amount limit; and

forwarding said selected limited use account identifier to said client for use in purchasing said item.

47. The method of claim 46, wherein said information identifying a proposed transaction includes information identifying a merchant and a date.

48. The method of claim 46, further comprising:

receiving settlement information from one of said issuer or said issuer processor, said settlement information including at least a transaction date and a transaction settlement amount;

determining that the proposed transaction was completed as a partial shipment; and

submitting a further pre-authorization request to one of said issuer or said issuer processor, said further pre-authorization for an amount approximately equal to the difference between said transaction amount limit and at least one of said transaction settlement amount and an authorized amount.

49. A method for issuing a pre-authorized limited use account identifier for purchase of an item by a buyer, comprising:

receiving, from a buyer, a purchase order code to identify a purchase of an item;

selecting a limited use account identifier for payment for the item, the limited use account identifier selected from a plurality of pre-assigned limited use account identifiers corresponding to a single master account of the buyer, the limited use identifier selected based on an identity of the buyer and an availability of one of said plurality of limited use account identifiers;

transmitting the limited use account identifier and a financial amount for the item to an account issuer, without the purchase order code, in order to establish a pre-authorization for the purchase; and

providing the limited use account identifier to the buyer for use in purchasing the item;

wherein at least one of said selecting transmitting and providing is performed using a computer.

50. A method for entering and reconciling a purchase transaction, comprising:

establishing a master account having a master account identifier with a account management system;

establishing a plurality of limited use account identifiers corresponding to the master account, each of the limited use account identifiers being different from the master account identifier;

selecting a merchant and an item to purchase from the merchant;

generating a purchase order identifying said item and a purchase amount;

forwarding information associated with said purchase order and information identifying said master account to said account management system;

receiving a pre-authorized limited use account identifier;

submitting said pre-authorized limited use account identifier to said merchant to purchase said item;

receiving an account summary, said account summary including information from said purchase order and information confirming said purchase;

wherein at least one of the steps of the method are performed using a computer.