Electronic purchase method and funds transfer system

• US 7,366,695 B1
• Filed: 02/29/2000
• Issued: 04/29/2008
• Est. Priority Date: 02/29/2000
• Status: Expired due to Term

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Inventors: Mascavage, John Joseph III, Dravenstott, Robert Edwin, Levokove, Scott J., Allen-Rouman, Terry, Desai, Keval, Arrington, Jack Michael, Larson, Wendy D., Philipp, Peter Eric, Weichert, Margaret Morgan
• Primary Examiner(s): Bashore; Alain L.
• Application Number:
  US09/516,209
• Time in Patent Office: 2,982 Days
• Field of Search: 705/39, 705/40
• US Class Current: 705/39
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• 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 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0637 Approvals
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An electronic transaction method, funds transfer apparatus and method for facilitating a funds transfer. The methods comprise sending information from a purchaser or payor to a funds transfer system separate from a vendor system or payee, validating and confirming personal financial information at the funds transfer system, and transferring funds from a purchaser or payor account to the vendor or a payee account without exposing either party'"'"'s financial and account information to the other. Additionally, a funds transfer apparatus is disclosed comprising connections to a payor and payee system and mechanisms for receiving and validating party and transaction information and a mechanism for transferring funds from one party to the other.

Claims

1. A computer-readable medium having computer-executable instructions for performing the computer-implementable method for authorizing the electronic purchase during checkout with the user and the vendor system, the computer-readable medium comprising code for:

receiving, at a funds transfer system, purchase information from the vendor system, wherein the purchase information comprises a purchase price;

receiving, at the funds transfer system, selection of a private payment option from the user, the private payment option comprising indication of a choice for private transfer of financial information from the user to the funds transfer system;

establishing a secure connection from the funds transfer system to the user, wherein the secure connection is configured to prevent access by the vendor system during transfer of the financial information over the secure connection;

requesting user account information from the user;

receiving user account information from the user with funds transfer system via the secure connection;

transmitting, via the secure connection, a validation request to the purchaser;

receiving, via the secure connection, validation information from the purchaser in response to the validation request;

validating the received validation information with the funds transfer system;

crediting a vendor account in a first amount that corresponds to the purchase price if the step of validating the received validation information is successful; and

debiting the user account a second amount that corresponds to the purchase price if the step of validating the received validation information is successful.