Method and apparatus for integrated payments processing and decisioning for internet transactions

• US 7,333,953 B1
• Filed: 10/31/2000
• Issued: 02/19/2008
• Est. Priority Date: 10/31/2000
• Status: Expired due to Term

• Current Assignee: Wells Fargo Bank NA (Wells Fargo & Company)
• Original Assignee: Wells Fargo Bank NA (Wells Fargo & Company)
• Inventors: Potter, David, Wood, George Luis, Fry, Peggy J., Banaugh, Michelle
• Primary Examiner(s): Kazimi; Hani M.
• Application Number:
  US09/703,357
• Time in Patent Office: 2,667 Days
• Field of Search: 705/25, 705/78, 705/39, 705/40, 705/38
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/403 Solvency checks
• 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

Abstract

A method and apparatus provides a decisioning solution for merchants accepting Internet transactions, integrated with means for processing payments electronically. The invention claimed herein provides features, such as, but not limited to, electronic transfer of funds, authentication of parties, seemless integration with merchant'"'"'s Web page, and reporting of suspicious activity.

Claims

1. An apparatus that provides a decisioning solution to a merchant, wherein said merchant accepts Internet transactions from participating parties and that facilitates processing of payments between said participating parties and said merchant, comprising:

means for said merchant receiving from at least one participating party of said participating parties at least one Internet transaction on a Web page of said merchant;

responsive to receiving said at least one Internet transaction, means for said merchant'"'"'s Web page processing said at least one Internet transaction that creates a first transaction message in a predetermined format that comprises an embedded order ID and sending said message to an enterprise decision engine;

responsive to receiving said first transaction message, means for said enterprise decision engine;

authenticating said at least one participating party;

reporting to said merchant suspicious activity by any of said at least one participating party; and

creating and providing a decisioning solution to said merchant, wherein said decisioning solution indicates clearance to said merchant to transact with said at least one participating party and wherein said decisioning solution is based on a determined risk of said at least one participating party; and

means for said merchant, responsive to receiving said decisioning solution from said enterprise decision engine, sending to said enterprise decision engine a second transaction message in said predetermined format comprising said order ID and, if available, purchase information data, seller information data, shipping data information data, auction information data, buyer entered data, source generated data, client maintained data, buyer data, and additional credit card processing information data;

responsive to receiving said second transaction message, means for said enterprise decision engine processing said second transaction message and creating a third transaction message in a NACHA format for when said second transaction message is based on an electronic check and sending said NACHA formatted message to an associated automated clearing house (ACH) and in an FDMS format for when said second transaction message is based on a credit card and sending said FDMS formatted message to a first data merchant service (FDMS);

means for said enterprise decision engine, responsive to receiving said second transaction message, determining and indicating approval for shipment of goods and services by said merchant using risk analysis and guaranteeing payment to the merchant after shipment of goods and services and insurance against fraud after shipment of goods;

means for said merchant, when desired, initiating and processing a refund and subsequent ACH credit using said order ID to identify said at least one Internet transaction to confirm correct transaction; and

means for said merchant, when desired, initiating and processing a return and subsequent FDMA credit using said order ID to identify said at least one Internet transaction to confirm correct transaction.

2. The apparatus of claim 1, wherein said participating parties comprise at least one seller or at least one buyer.

3. The apparatus of claim 2, wherein at least one seller initiates a reversal.

4. The apparatus of claim 2, wherein means for determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

means for performing risk analysis on, but not limited to, said at least one buyer or said at least one seller for said decisioning solution.

5. The apparatus of claim 4, wherein means for performing risk analysis further comprises:

means for using risk management criteria for any of determining, quantifying, and qualifying risk of potential buyers and sellers, and wherein any of amounts of transactions, suspicious personal information of buyer or seller, behavior of buyer or seller, conventional statistical information and mode of operations are determined.

6. The apparatus of claim 2, wherein means for determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

means for controlling loss exposure for said merchant.

7. The apparatus of claim 2, wherein means for determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

means for identifying risk parameters for velocity and for identifying spending limits on said transactions for said merchant.

8. The apparatus of claim 2, wherein means for determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

means for guaranteeing a payment to said merchant after said shipment of goods and services; and

means for providing insurance against fraud after said shipment of goods and services.

9. The apparatus of claim 2, wherein means for determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

means for guaranteeing said shipment of goods and services from said merchant to said at least one buyer; and

means for providing insurance against fraud after a payment.

10. The apparatus of claim 2, wherein means for providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

means for performing a predetermined number of seconds online decisioning.

11. The apparatus of claim 2, wherein means for providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

means for performing additional intra-day fraud-screening.

12. The apparatus of claim 2, wherein means for providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

means for dynamically providing decision criteria updates for said decisioning solution as knowledge of said transactions is gained.

13. The apparatus of claim 2, wherein means for providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

means for storing data of said transactions, said data to be used for providing future decisioning solutions.

14. The apparatus of claim 1, wherein said participating parties comprise consumers and businesses, and wherein said means for electronic transfer of funds is between any of, but not limited to:

at least one consumer and at least one consumer;

at least one consumer and at least one business; and

at least one business and at least one business.

15. The apparatus of claim 1, wherein means for authentication of parties further comprises means for performing a predetermined number of seconds online decisioning, thereby authenticating said Internet transactions.

16. The apparatus of claim 1, wherein said authenticating said at least one participating party comprises storing registration information to be used at a later time.

17. The apparatus of claim 1, wherein said means for authentication comprises protected information.

18. The apparatus of claim 17, wherein said protected information comprises encrypted information.

19. The apparatus of claim 1, wherein means for handling exceptions further comprises returned item processing, and wherein said payments processing uses electronic checks.

20. The apparatus of claim 1, further comprises means for disbursing funds for approved transactions of said at least one Internet transaction.

21. The apparatus of claim 1, further comprising international disbursements of some of finds using international currencies.

22. The apparatus of claim 21, wherein a disbursement of said international disbursement is for Canadian transactions of said Internet transactions.

23. The apparatus of claim 1, further comprising means for real-time debiting of funds for electronic check transactions.

24. The apparatus of claim 23, further comprising means for guaranteed hold on funds.

25. The apparatus of claim 1, further comprising:

means for sending to said merchant'"'"'s Web page results from a predetermined number of seconds decisioning process, said decisioning process for a registration process, and said decisioning process for credit card and electronic check transactions.

26. The apparatus of claim 1, further comprising:

batch processing for timely processing of transactional level reconciliation information.

27. The apparatus of claim 26, wherein said transactional level reconciliation information comprises originations and exception items.

28. The apparatus of claim 1, further comprising:

means for accepting domestic and international payments for both credit card and electronic check transactions of said Internet transactions.

29. The apparatus of claim 1, further comprising means for interfacing with said merchant'"'"'s Web page by personal computer or wireless technology.

30. The apparatus of claim 1, wherein means for reporting suspicious activity to said merchant, further comprises:

means for conducting additional corresponding decisioning and intra-day fraud-screening.

31. The apparatus of claim 1, wherein means for reporting suspicious activity to said merchant, further comprises:

alert reports on said suspicious activity.

32. The apparatus of claim 1, wherein means for reporting suspicious activity to said merchant, further comprises:

a process to initiate transaction reversals, wherein reversals are due to, but not limited to, fraud.

33. A method that provides a decisioning solution to a merchant, wherein said merchant accepts Internet transactions from participating parties and that facilitates processing of payments between said participating parties and said merchant, comprising:

said merchant receiving from at least one participating party of said participating parties at least one Internet transaction on a Web page of said merchant;

responsive to receiving said at least one Internet transaction, said merchant'"'"'s Web page processing said at least one Internet transaction that creates a first transaction message in a predetermined format that comprises an embedded order ID and sending said message to an enterprise decision engine;

responsive to receiving said first transaction message, said enterprise decision engine;

authenticating said at least one participating party;

reporting to said merchant suspicious activity by any of said at least one participating party; and

creating and providing a decisioning solution to said merchant, wherein said decisioning solution indicates clearance to said merchant to transact with said at least one participating party and wherein said decisioning solution is based on a determined risk of said at least one participating party; and

responsive to receiving said decisioning solution from said enterprise decision engine, said merchant sending to said enterprise decision engine a second transaction message in said predetermined format comprising said source ID and said order ID and, if available, purchase information data, seller information data, shipping data information data, auction information data, buyer entered data, source generated data, client maintained data, buyer data, and additional credit card processing information data;

responsive to receiving said second transaction message said enterprise decision engine processing said second transaction message and creating a third transaction message in a NACHA format for when said second transaction message is based on an electronic check and sending said NACHA formatted message to an associated automated clearing house (ACH) and in an FDMS format for when said second transaction message is based on a credit card and sending said FDMS formatted message to a first data merchant service (FDMS);

responsive to receiving said second transaction message, said enterprise decision engine determining and indicating approval for shipment of goods and services by said merchant using risk analysis and guaranteeing payment to the merchant after shipment of goods and services and insurance against fraud after shipment of goods;

when desired said merchant initiating and processing a refund and subsequent ACH credit using said order ID to identify said at least one Internet transaction to confirm correct transaction; and

when desired said merchant initiating and processing a return and subsequent FDMS credit using said order ID to identify said at least one Internet transaction to confirm correct transaction.

34. The method of claim 33, wherein said participating parties comprise at least one seller or at least one buyer.

35. The method of claim 34, wherein at least one seller initiates a reversal.

36. The method of claim 34, wherein determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

performing risk analysis on, but not limited to, said at least one buyer or said at least one seller for said decisioning solution.

37. The method of claim 36, wherein performing risk analysis further comprises:

using risk management criteria for any of determining, quantifying, and qualifying risk of potential buyers and sellers, and wherein any of amounts of transactions, suspicious personal information of buyer or seller, behavior of buyer or seller, conventional statistical information and mode of operations are determined.

38. The method of claim 34, wherein determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

controlling loss exposure for said merchant.

39. The method of claim 34, wherein determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

identifying risk parameters for velocity and for identifying spending limits on said transactions for said merchant.

40. The method of claim 34, wherein determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

guaranteeing a payment to said merchant after said shipment of goods and services; and

providing insurance against fraud after said shipment of goods and services.

41. The method of claim 34, wherein determining and indicating to said at least one seller approval for shipment of goods and services by said merchant, further comprises:

guaranteeing said shipment of goods and services from said merchant to said at least one buyer; and

providing insurance against fraud after a payment.

42. The method of claim 34, wherein providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

performing a predetermined number of seconds online decisioning.

43. The method of claim 34, wherein providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

performing additional Intraday fraud-screening.

44. The method of claim 34, wherein providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

dynamically providing decision criteria updates for said decisioning solution as knowledge of said transactions is gained.

45. The method of claim 34, wherein providing said decisioning solution to said merchant, said decisioning solution indicating clearance to said merchant for said merchant to transact with said at least one buyer, and said decisioning solution based on a determined risk of said at least one buyer, further comprises:

storing data of said transactions, said data used for providing future decisioning solutions.

46. The method of claim 33, wherein said participating parties comprise consumers and businesses, and wherein said means for electronic transferring of funds is between any of, but not limited to:

at least one consumer and at least one consumer;

at least one consumer and at least one business; and

at least one business and at least one business.

47. The method of claim 33, wherein authenticating parties further comprises performing a predetermined number of seconds online decisioning, thereby authenticating said Internet transactions.

48. The method of claim 33, wherein said authenticating said at least one participating party comprises storing registration information to be used at a later time.

49. The method of claim 33, wherein authenticating parties uses protected information.

50. The method of claim 49, wherein said protected information comprises encrypted information.

51. The method of claim 33, wherein handling exceptions further comprises returned item processing, and wherein said payments processing uses electronic checks.

52. The method of claim 33, further comprise means for disbursing funds for approved transactions of said at least one Internet transaction.

53. The method of claim 33, further comprising providing international disbursements of some of funds using international currencies.

54. The method of claim 53, wherein a disbursement of said international disbursement is for Canadian transactions of said Internet transactions.

55. The method of claim 33, further comprising real-time debiting of funds for electronic check transactions.

56. The method of claim 55, further comprising guaranteeing hold on funds.

57. The method of claim 33, further comprising:

sending to said merchant'"'"'s Web page results from a predetermined number of seconds decisioning process, said decisioning process for a registration process, and said decisioning process for credit card and electronic check transactions.

58. The method of claim 33, further comprising:

providing batch processing for timely processing of transactional level reconciliation information.

59. The method of claim 58, wherein said transactional level reconciliation information comprises originations and exception items.

60. The method of claim 33, further comprising:

accepting domestic and international payments for both credit card and electronic check transactions of said Internet transactions.

61. The method of claim 33, further comprising interfacing with said merchant'"'"'s Web page by personal computer or wireless technology.

62. The method of claim 33, wherein reporting suspicious activity to said merchant, further comprises:

conducting additional corresponding decisioning and Intraday fraud-screening.

63. The method of claim 33, wherein reporting suspicious activity to said merchant, further comprises:

providing alert reports on said suspicious activity.

64. The method of claim 33, wherein reporting suspicious activity to said merchant, further comprises:

providing a process to initiate transaction reversals, wherein reversals are due to, but not limited to, fraud.