Systems and methods for implementing person-to-person money exchange

• US 7,031,939 B1
• Filed: 08/15/2000
• Issued: 04/18/2006
• Est. Priority Date: 08/15/2000
• Status: Expired due to Term

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Yahoo! Inc. (Apollo Global Management, Inc.)
• Inventors: Gallagher, Paul, Simon, Robert, Liu, Ivan, Baum, Michael, Noa, Jorge, Meng, Peihuan, Schmandt, Mieko, Davis, Steve, Hampton, Martin, Robert, Kaycie
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Winter, John M.
• Application Number:
  US09/639,014
• Time in Patent Office: 2,072 Days
• Field of Search: 705/1, 705/39, 705/65, 705/42, 705/43, 235/380, 235/379
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/0855 involving a third party
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/401 Transaction verification
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Systems and methods for effecting online financial transactions between individuals or between individuals and entities such as banks, merchants and other companies. Each user accesses a fund exchange server to establish an online account, which is used to transfer funds to and from other entities'"'"' online accounts. To fund an online account, funds can be transferred to the online account from a credit card account or from another online account. To withdraw funds, money can be transferred to a credit card account or other bank account. Any user may initiate a send money transaction or a request payment transaction with any other entity provided that entity has an e-mail address. For a send money transaction, the user sending money (payor) enters an amount of funds to be transferred and an e-mail address of the recipient of the funds (payee). The system sends an e-mail message to the payee at the address provided indicating that the amount of funds has been “received” on the payee'"'"'s behalf. The payee must then either open an online account or identify an existing online account to complete the transaction. For a request money transaction, a user enters an amount of funds owed and an e-mail address for the recipient of the payment request (payor), and the system sends a payment request to the payor via e-mail at the provided address. If the payor accepts the payment request, the payor identifies an online account from which to transfer funds to the payee (initiator of the payment request). If the payor does not have an online account established, the payor must sign up for an online account and provide a credit card number to fund the online account. Thereafter, the amount of funds are transferred to the payee and the system sends an e-mail notification to the payee indicating that the funds have been “received” on the payee'"'"'s behalf. In both cases, to complete a transaction, the payee must direct the received funds to an online account, for example, by providing an online account number and/or other identifying information such as a password. The payor may cancel the transaction at any time until the payee directs the received funds to an online account.

Claims

1. A computer implemented method of transferring funds from one online account to another, the method comprising the steps of:

receiving a transfer request from a first user, the transfer request including an amount of funds for transfer from a first online account associated with the first user and identification information for a recipient of the funds, the identification information including an electronic message address for the recipient;

automatically sending an electronic message to the recipient using the electronic message address, the electronic message indicating that funds are ready for transfer to the recipient;

receiving a response from the recipient accepting or rejecting the transfer of funds;

transferring said amount of funds from the first online account to a second online account associated with the recipient if the response indicates acceptance;

receiving credit card account information from the recipient;

establishing a connection with a server associated with the credit card account;

transferring funds from the second online account to the credit card account in response to a withdrawal request received from the recipient; and

providing the first user with an option of two or more affiliate banks for conducting settlement of the fund transfer from the first online account to the second online account.

2. The method of claim 1, wherein the electronic message address is an e-mail address, and wherein the electronic message is an e-mail message.

3. The method of claim 1, wherein the electronic message address includes a user ID associated with the recipient, and wherein the step of automatically sending an electronic message includes initiating an instant message session with the recipient based on the user ID.

4. The method of claim 1, wherein the response includes a request by the recipient to open an account, and wherein the method further includes the step of opening the second online account for the recipient.

5. The method of claim 1, wherein the response from the recipient includes information identifying the second online account.

6. The method of claim 1, wherein the transfer request further includes a request for identity confirmation, and wherein the response from the recipient includes identity information responsive to the request for identity confirmation, the method further including the steps of:

automatically sending the identity information to the first user; and

receiving from the first user an acceptance or a rejection of the identity information;

wherein funds are transferred only if an acceptance is received from the first user.

7. The method of claim 6, wherein the request for identity confirmation includes a query, and wherein the identity information from the recipient includes an answer to the query.

8. The method of claim 1, wherein the method is implemented in a host server, and wherein the electronic message includes a URL link to the host server.

9. The method of claim 1, further comprising conducting settlement for the first online account using one of said affiliate banks selected by the first user.