Method and apparatus for facilitating online payment transactions in a network-based transaction facility using multiple payment instruments

• US 7,499,875 B1
• Filed: 05/22/2000
• Issued: 03/03/2009
• Est. Priority Date: 03/17/2000
• Status: Expired due to Fees

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: May, Jason, Flint, Ian
• Primary Examiner(s): KAZIMI, HANI M
• Application Number:
  US09/577,434
• Time in Patent Office: 3,207 Days
• Field of Search: 705/37, 705/40, 705/26, 705/27, 705/39
• US Class Current: 705/26.3
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/08 Payment architectures
• 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 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and apparatus for facilitating online payment transactions between participants in a network-based transaction facility are described. In one embodiment, user interface information is communicated to a first participant via a communications network. The user interface information identifies various payment instruments available for processing online payment transactions in the network-based transaction facility. Further, payment option information is received from the first participant via the communications network. The payment option information indicates the willingness of the first participant to accept a payment from a second participant via one or more of the various payment instruments. This payment option information is passed to the second participant via the communications network. Afterwards, personal billing information is accepted from the second participant via the communications network to facilitate an online payment transaction between the first participant and the second participant. The personal billing information concerns a payment instrument selected by the second participant from the payment instruments specified by the first participant.

Claims

1. A computer-implemented method for facilitating online payment transactions between participants in a network-based transaction facility, the computer-implemented method comprising:

communicating to a first participant, information identifying a plurality of payment instruments available for processing online payment transactions in the network-based transaction facility, the information to facilitate a selection by the first participant of at least one of the plurality of payment instruments that the first participant is willing to accept when receiving a payment from a second participant;

receiving payment option information from the first participant, the payment option information identifying the selection of the at least one of the plurality of payment instruments;

determining that the first participant is qualified to accept the at least one of the plurality of payment instruments, the determination being based on a risk management operation;

communicating the payment option information to the second participant via a communications network;

determining a risk level of an online payment transaction between the first participant and the second participant using at least feedback information, the feedback information pertaining to the second participant and including information provided by peers of the second participant in the network-based transaction facility, the risk level to determine whether the second participant is qualified to use a payment instrument selected by the second participant from the at least one payment instrument acceptable to the first participant; and

accepting personal billing information concerning the selected payment instrument if the second participant is qualified to use the selected payment instrument, the personal billing information being accepted via the communications network to facilitate the online payment transaction between the first participant and the second participant.

2. The computer-implemented method of claim 1 further comprising:

dynamically evaluating risk involved in the online payment transaction between the first participant and the second participant; and

restricting the online payment transaction based on the evaluated risk.

3. The computer-implemented method of claim 2, wherein the involved risk is evaluated using various information concerning the first participant and the second participant, the various information including information stored by an online payment service and information obtained from any one of a plurality of third party risk analysis providers via the communications network.

4. The computer-implemented method of claim 2, wherein the involved risk is evaluated at various stages of the online payment transaction between the first participant and the second participant.

5. The computer-implemented method of claim 1 further comprising:

accepting multiple payments issued to the first participant in a course of business transactions conducted by the first participant;

accumulating the multiple payments over a period of time as a single accumulated payment; and

disbursing the single accumulated payment to the first participant.

6. The computer-implemented method of claim 5, wherein the multiple payments are accepted over the communications network using the plurality of payment instruments.

7. The computer-implemented method of claim 1, wherein the network-based transaction facility comprises a network-based auction facility.

8. The computer-implemented method of claim 1 further comprising:

communicating the personal billing information of the second participant to a financial institution to process the online payment transaction, the personal billing information being communicated over the communications network; and

notifying the first participant when the online payment transaction completes.

9. The computer-implemented method of claim 1 further comprising:

enabling the first participant to initiate the online payment transaction via communications network;

communicating to the first participant an invoice form interface to obtain invoice information from the first participant;

determining that the first participant is qualified to initiate the online payment transaction described by terms included in the invoice information; and

passing the invoice information to the second participant.

10. The computer-implemented method of claim 1 further comprising:

enabling the second participant to initiate the online payment transaction via communications network;

communicating to the first participant information indicating a willingness of the second participant to use at least one of the plurality of payment instruments; and

providing a billing information interface to the second participant to obtain personal billing information concerning the at least one of the plurality of payment instruments if the second participant is qualified to use the at least one of the plurality of payment instruments.

11. The computer-implemented method of claim 1, wherein the personal billing information is encrypted.

12. The computer-implemented method of claim 1, wherein the personal billing information of the second participant is not disclosed to the first participant unless permitted by the second participant.

13. A system for facilitating online payment transactions between participants in a network-based transaction facility, the system comprising:

the network-based transaction facility to implement a transaction system that facilitates business transactions between a user and another user;

a client, coupled to the network-based transaction facility, to present information identifying a plurality of payment instruments available for processing online payment transactions pertaining to corresponding business transactions, the presented information facilitating a selection by the user of at least one of the plurality of payment instruments that the user is willing to accept when receiving a payment from the other user, and to communicate payment option information of the user over a communications network, the payment option information identifying the selection of the at least one of the plurality of payment instruments; and

an online payment service, coupled to the network-based transaction facility and the client via the communications network, the online payment service to receive the payment option information from the client, to determine that the user is qualified to accept the at least one of the plurality of payment instruments, the determination being based on a risk management operation, to make the payment option information available to the other user via the communications network, to enable the other user to select a preferred payment instrument from the at least one of the payment instruments acceptable to the user, to determine whether the other user is qualified to use the preferred payment instrument based on a determination of a risk level of an online payment transaction between the user and the other user, and to accept personal billing information concerning the preferred payment instrument from the other user via the communications network if the other user is qualified to use the preferred payment instrument, wherein the risk level is performed using feedback information pertaining to the other user and provided by peers of the other user in the network-based transaction facility.

14. The system of claim 13, wherein the online payment service comprises:

a risk management system to dynamically evaluate risk involved in the online payment transaction between the user and the other user; and

a payment processing system to restrict the online payment transaction based on the evaluated risk.

15. The system of claim 14, wherein the involved risk is evaluated using various information concerning the user and the other user, the various information including information stored by an online payment service and information obtained from any one of a plurality of third party risk analysis providers via the communications network.

16. The system of claim 14, wherein the involved risk is evaluated at various stages of the online payment transaction between the user and the other user.

17. The system of claim 13 wherein the online payment service is further configured to

accept multiple payments issued to the user in a course of business transactions conducted by the user;

accumulate the multiple payments over a period of time as a single accumulated payment, and

disburse the single accumulated payment to the user.

18. The system of claim 17 wherein the multiple payments are accepted over the communications network using the plurality of payment instruments.

19. The system of claim 13 wherein the network-based transaction facility comprises a network-based auction facility.

20. The system of claim 13, wherein the online payment service is configured to

communicate the personal billing information of the other user to a financial institution to process the online payment transaction, the personal billing information being communicated over the communications network, and

notify the user when the online payment transaction completes.

21. The system of claim 13, wherein the online payment service is configured to

enable the user to initiate the online payment transaction via communications network,

communicate to the user an invoice form interface to obtain invoice information from the user,

determine that the user is qualified to initiate the online payment transaction described by terms included in the invoice information, and

pass the invoice information to the other user.

22. The system of claim 13, wherein the online payment service is configured to

enable the other user to initiate the online payment transaction via communications network,

communicate to the user information indicating a willingness of the other user to use at least one of the plurality of payment instruments, and

provide a billing information interface to the other user to obtain personal billing information concerning the at least one of the plurality of payment instruments if the other user is qualified to use the at least one of the plurality of payment instruments.

23. The system of claim 13 wherein the personal billing information is encrypted.

24. The system of claim 13, wherein the personal billing information of the other user is not disclosed to the user unless permitted by the other user.

25. A machine-readable medium comprising instructions, which when executed on a machine, cause the machine to perform a method for facilitating online payment transactions between participants in a network-based transaction facility, the method comprising:

communicating to a first participant, via a communications network, information identifying a plurality of payment instruments available for processing online payment transactions in the network-based transaction facility, the information to facilitate a selection by the first participant of at least one of the plurality of payment instruments that the first participant is willing to accept when receiving a payment from a second participant;

receiving payment option information from the first participant via the communications network, the payment option information identifying the selection of the at least one of the plurality of payment instruments;

determining that the first participant is qualified to accept the at least one of the plurality of payment instruments, the determination being based on a risk management operation;

communicating the payment option information to the second participant via the communications network;

determining a risk level of an online payment transaction between the first participant and the second participant using feedback information, pertaining to the second participant and provided by peers of the second participant in the network-based transaction facility, to determine, based on the risk level, whether the second participant is qualified to use a payment instrument selected by the second participant from the at least one payment instrument acceptable to the first participant; and

accepting personal billing information concerning the selected payment instrument if the second participant is qualified to use the selected payment instrument, the personal billing information being accepted via the communications network to facilitate the online payment transaction between the first participant and the second participant.