Method and apparatus for facilitating a transaction between a buyer and one seller

• US 7,386,508 B1
• Filed: 12/23/1998
• Issued: 06/10/2008
• Est. Priority Date: 09/04/1996
• Status: Expired due to Fees

• Current Assignee: Priceline.com LLC (Booking Holdings, Inc., fka Priceline Group Inc.)
• Original Assignee: Priceline Com Incorporated (Booking Holdings, Inc., fka Priceline Group Inc.)
• Inventors: Tedesco, Daniel E., Walker, Jay S., Mik, Magdalena
• Primary Examiner(s): NGUYEN, NGA B
• Application Number:
  US09/220,191
• Time in Patent Office: 3,457 Days
• Field of Search: 705/37, 705/26, 705/1, 705/27, 705/39, 705/40, 705/80
• US Class Current: 705/39
• CPC Class Codes: G06Q 10/02 Reservations, e.g. for tickets, services or events
• CPC Class Codes: G06Q 10/025 Coordination of plural reservations, e.g. plural trip segments, transportation combined with accommodation
• 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 30/0206 Price or cost determination based on market factors
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A seller server receives an offer which specifies a type of product (e.g. a seat on a flight), at least one condition (e.g. destination and date of departure), and an offer price specified by a buyer. The seller server also receives an associated payment identifier that specifies a financial account, such as a credit card account. The payment identifier essentially “guarantees” the offer in that the seller may receive payment from the financial account even if the buyer attempts to renege. The seller determines whether to accept the offer, based on various factors such as the offer price and the availability of appropriate products to satisfy the conditions of the offer. If the offer is accepted, payment is provided to the seller using the payment identifier.

Claims

1. A method for facilitating a transaction between a buyer and one seller, the method comprising the steps of:

receiving an offer which specifies a type of product or service, at least one condition, and an offer price specified by a buyer, wherein the type of product or service identified in the offer specifies a category of products or services for use by the seller to select a specific product or service to satisfy the offer'"'"'s at least one condition;

receiving a payment identifier specifying a financial account, the payment identifier being associated with the offer;

making the offer available to one seller after receiving the payment identifier;

receiving an acceptance from the one seller, the acceptance being responsive to the offer; and

providing a payment to the one seller by using the payment identifier upon receiving the acceptance.

2. The method of claim 1, in which the step of providing a payment to the one seller comprises:

providing a payment that is based on the offer price.

3. The method of claim 1, in which the step of providing a payment to the one seller comprises:

providing a payment that is based a penalty payment amount if the buyer indicates withdrawal of the offer after the step of receiving an acceptance.

4. The method of claim 1, in which the offer price defines at least two forms of currency.

5. The method of claim 4, in which the offer price defines:

a first amount of first form of currency, and

a second amount of second form of currency.

6. The method of claim 4, in which at least one form of currency is frequent flyer miles.

7. The method of claim 4, in which the payment identifier specifies:

a first financial account for paying a first form of currency, and a second financial account for paying a second form of currency.

8. The method of claim 7, in which the first financial account is the second financial account.

9. The method of claim 7, in which the step of providing payment comprises:

debiting the first financial account and debiting the second financial account.

10. The method of claim 1, further comprising:

selecting the one seller from a plurality of sellers based on the type of product.

11. The method of claim 1, in which the financial account is a credit card account.

12. A method for facilitating a transaction between a buyer and one seller, the method comprising the steps of:

receiving an offer which specifies a type of product or service, at least one condition, and an offer price specified by a buyer, wherein the type of product or service identified in the offer specifies a category of products or services for use by the seller to select a specific product or service to satisfy the offer'"'"'s at least one condition;

receiving a payment identifier specifying a financial account, the payment identifier being associated with the offer;

determining whether to accept the offer; and

receiving payment by using the payment identifier upon determining to accept the offer.

13. The method of claim 12, in which the step of determining whether to accept the offer comprises:

randomly determining whether to accept the offer without considering the offer price.

14. The method of claim 13, further comprising:

determining whether to accept the offer based on product availability after the step of randomly determining to accept the offer without considering the offer price.

15. The method of claim 13, further comprising:

generating a random number; and

determining, if the random number is within a predetermined range, whether to accept the offer based on product availability without considering the offer price.

16. The method of claim 12, further comprising:

creating a counter offer upon determining to reject the offer, the counter offer specifying the type of product, and a counter offer price; and

transmitting the counter offer to the buyer.

17. The method of claim 16, in which the counter offer price is based on the offer price.

18. The method of claim 17, in which the counter offer price is less than the offer price.

19. The method of claim 12, further comprising:

determining a plurality of products that satisfy the at least one condition.

20. The method of claim 19, further comprising:

transmitting an indication of the plurality of products to the buyer.

21. The method of claim 20, further comprising:

receiving from the buyer a selection of one of the plurality of products.

22. The method of claim 19, further comprising:

selecting a product from the plurality of products to fulfill the offer.

23. The method of claim 22, in which the step of selecting comprises:

selecting a product based on expected profit from the product.

24. The method of claim 22, in which the step of selecting comprises:

selecting a product based on availability of the product.

25. The method of claim 22, in which the step of selecting comprises:

selecting a product based on a comparison of predicted sales of the product and actual sales of the product.

26. The method of claim 22, in which the step of selecting comprises:

selecting a product based on whether actual sales of the product are less than predicted sales of the product.

27. The method of claim 22, in which the step of selecting comprises:

determining, for each product, an amount by which actual sales of the product are less than predicted sales of the product; and

selecting a product that has a maximal amount by which actual sales of the product are less than predicted sales of the product.

28. The method of claim 22, in which the step of determining whether to accept the offer comprises:

determining whether sales of a first set of products are less than sales of a second set of products; and

selecting a product from the first set of products if sales of the first set are less than E sales of the second set.

29. The method of claim 28, in which each product of the plurality of products is allocated for fulfilling offers.

30. The method of claim 12, in which the step of determining whether to accept the offer comprises:

determining whether to accept the offer based on an availability of a product.

31. The method of claim 12, in which the step of determining whether to accept the offer comprises:

determining whether to accept the offer based on a comparison of predicted sales of a product and actual sales of the product.

32. The method of claim 31, in which the step of determining whether to accept the offer comprises:

determining whether to accept the offer based on whether actual sales of the product are less than predicted sales of the product.

33. The method of claim 12, in which the step of determining whether to accept the offer comprises:

determining a minimum price for a product; and

accepting the offer if the offer price is greater than the minimum price.

34. The method of claim 33, in which the step of determining a minimum price comprises:

determining a minimum price for the product based on an availability of the product.

35. The method of claim 33, in which the step of determining a minimum price comprises:

determining a minimum price for the product based on a comparison of predicted sales of the product and actual sales of the product.

36. The method of claim 33, in which the step of determining a minimum price comprises:

determining a minimum price for the product based on whether actual sales of the product are less than predicted sales of the product.

37. The method of claim 12, in which the financial account is a credit card account.

38. The method of claim 12, in which the step of determining whether to accept the offer comprises:

delaying acceptance until a predetermined time.