System and method for causing multiple parties to be paid from a single credit card transaction

• US 6,983,261 B1
• Filed: 11/02/1999
• Issued: 01/03/2006
• Est. Priority Date: 05/10/1995
• Status: Expired due to Fees

• Current Assignee: Taxvantage LLC (Acacia Research Corporation)
• Original Assignee: Taxnet Systems, Inc.
• Inventors: Petschauer, Frederick J., Francisco, Paul A.
• Primary Examiner(s): Reagan, James A.
• Application Number:
  US09/431,616
• Time in Patent Office: 2,254 Days
• Field of Search: 705/14, 705/16, 705/19, 705/21, 705/26, 705/31, 705/35, 705/39, 705/40, 235379-383, 235/335, 235/375
• US Class Current: 705/39
• 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 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

A point of sale credit card payment system allowing multiple payments to be made to various payees from a single credit card transaction or any other form of electronic payment. Software, firmware, or hardware located at a consumer location or offsite determines the amount of commissions, travel agency fees, auction fees, or any other fees incidental to the transaction due to a third or other party. During the time of transaction when payment is being made by a credit card or any other form of electronic payment the fees and/or payment(s) due to third party(ies) are separately identified and, based upon instructions from the software, are paid directly by the credit card company to those third parties entitled to receive payment.

Claims

1. A system for making payments to a plurality of third party payees from a single credit card purchase in which a credit card is used, the system comprising:

at least one computer located at a merchant or retailer location, the computer including software therein for calculating commissions and other fees due to third parties from a credit card purchase;

said at least one computer including means for causing multiple party payment information indicating to whom payments are due from the credit card purchase to a credit card company; and

means for enabling one of the credit card company and the at least one computer to pay fees due to a plurality of third parties from the credit card purchase based upon the multiple party payment information received by the credit card company from the merchant or retailer.

2. The system of claim 1, further comprising a communication link connecting the at least one computer to the credit card company, the link permitting the at least one computer to instruct the credit card company to make multiple payments to parties related to the transaction.

3. The system of claim 2, wherein the credit card company includes one of an issuing bank, an acquiring processor, and a receiving bank.

4. The system of claim 1, wherein the at least one computer includes means for accessing an account of the customer via the credit card company and debiting an amount of price of sale, tax and fees, and means for automatically crediting accounts of the seller and third parties by amounts owed them relating to the purchase.

5. A method of making payments to a plurality of third party payees from a single credit card purchase in which a credit card is used, the method comprising the steps of:

a consumer initiating a credit card transaction purchasing goods or services from a merchant or retailer using a credit card via a packet switched data network such as the Internet;

at least one computer at a location of the merchant or retailer, the at least one computer totaling price of the goods or services, taxes thereon, freight and other fees, thereby resulting in a total price;

charging the total price to the consumer'"'"'s credit card, thereby completing the credit card transaction;

the at least one computer determining commissions, taxes, freight, and other fees due to third parties for the transaction; and

the at least one computer causing multiple payment instructions to be forwarded to a credit card company, the multiple payment instructions being indicative of third parties to whom payment amounts are owed for the transaction.

6. The method of claim 5, further comprising the credit card company causing the third parties to be paid amounts owed to them for the transaction, based upon the multiple payment instructions from the at least one computer.