Internet based payment system

• US 7,356,502 B1
• Filed: 03/01/1999
• Issued: 04/08/2008
• Est. Priority Date: 03/03/1998
• Status: Expired due to Fees

• Current Assignee: CrossCheck, Inc.
• Original Assignee: CrossCheck, Inc.
• Inventors: LaBadie, Timothy, Ficarra, Robert, Green, Paul H.
• Primary Examiner(s): Colbert; Ella
• Application Number:
  US09/259,619
• Time in Patent Office: 3,326 Days
• Field of Search: 705/26, 705 38- 40, 705/35, 705/1, 705/42, 705/43, 705/27, 380/51, 235/379
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• 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 40/03 Credit; Loans; Processing thereof

Abstract

An internet based payment validation system links a customer computer to a third party processor computer after the customer, communicating with the a merchant computer over the Internet, indicates a desire to pay for a purchase directly and not with a credit card. The processor computer receives information from the customer identifying the customer then applies the identification to a statistical database indicating whether a payment obligation is likely to be honored. The processor computer then returns to the merchant computer an indication of whether a payment obligation should be accepted.

Claims

1. An Internet check payment computer system comprising:

a merchant computer executing a stored program to communicate with the Internet to create an Internet site listing products for sale to the public and indicating an option for payment for the products by check drawn on funds held by a third party bank independent of the merchant;

an anonymous customer computer independent from the merchant computer, and executing a stored program for communicating with the merchant computer over the Internet to identify the product desired to be purchased and to select the check payment option, the computer further transmitting at least one unique customer identifier from a customer over the Internet; and

a processor computer independent from the customer computer and the merchant computer programmed to receive the at least one unique customer identifier in response to a selection of the payment by check option, the processor computer further including a data structure matching the unique customer identifier to at least one statistical element indicating a probability of a payment obligation by the customer being honored, the probability of a payment being honored being determined without communication with the third party bank,

wherein the processor computer determines whether check payment for the product should be accepted based on the probability of the payment being honored, produces an authorization indication, and upon the authorization indication indicating that check payment should be accepted, transmits the authorization indication to the merchant computer and generates a printed check including the customer'"'"'s name, the third party bank name, a check amount, and further including bank routing information,

whereby the printed check may be processed at any location using standard check processing channels.

2. The Internet check payment computer system of claim 1 wherein the statistical element is based on a factor selected from a group consisting of a total price of the identified product, the price and timing of previous purchases of other products using the unique customer identifier, the type of identified product and the occurrence of any dishonored payment associated with the previous transactions using the unique customer identifier.

3. The Internet check payment computer system of claim 1 wherein the authorization indication provides the following responses:

(1) an indication of not authorized, indicating that the acceptance of a check is not advised; and

(2) an indication of authorized, indicating that the acceptance of a check is advised.

4. The Internet check payment computer system of claim 3, wherein the authorization indication indicating that an acceptance is advised further comprises the following responses:

(1) an indication of authorized with no guarantee, indicating that the acceptance of a check is subject to the discretion of the merchant; and

(2) an indication of authorized with a guarantee, indicating that the amount of the check will be guaranteed.

5. The Internet check payment computer system of claim 1 wherein the processor computer further transmits to a printer information to cause the printing of a check for the purchase of the merchandise.

6. The Internet check payment computer system of claim 1 wherein the statistical element is based on a total price of the identified product.

7. The Internet check payment computer system of claim 1 wherein the statistical element is based on the price and timing of previous purchases of other products using the unique customer identifier.

8. The Internet check payment computer system of claim 1 wherein the statistical element is based on the occurrence of any dishonored payment associated with the previous transactions using the unique customer identifier.

9. The Internet check payment computer system of claim 1 wherein the unique customer identifier is a driver'"'"'s license number of a customer operating the customer computer.

10. The Internet check payment computer system of claim 1 wherein the unique customer identifier is selected from the group consisting of:

a driver'"'"'s license number, a phone number, a bank transit and routing number of an account of a customer operating the customer computer.

11. The Internet check payment computer system of claim 1 wherein the data structure further matches the unique customer identifier to the bank name, the customer name, and the bank routing information.

12. The Internet check payment computer system of claim 1 wherein the processor computer transmits the authorization indication contemporaneously with the selection of the check payment option.