System and method to automate payment for a commerce transaction

• US 7,512,563 B2
• Filed: 01/17/2007
• Issued: 03/31/2009
• Est. Priority Date: 01/17/2001
• Status: Expired due to Fees

• Current Assignee: XPRT Ventures LLC
• Original Assignee: XPRT Ventures LLC
• Inventors: Likourezos, George, Scaturro, Michael A.
• Primary Examiner(s): Poinvil, Frantzy
• Assistant Examiner(s): GRAHAM, CLEMENT B
• Application Number:
  US11/654,237
• Publication Number:
  US 20070118476A1
• Time in Patent Office: 804 Days
• Field of Search: 705 35- 38, 705/34
• US Class Current: 705/39
• 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 20/14 specially adapted for billing 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 30/08 Auctions
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

The invention provides a computerized electronic auction payment system and method for effecting a real-time payment for an item won in an electronic auction by setting up and maintaining electronic auction payment accounts for prospective bidders and sellers. The prospective bidders provide funds to their electronic auction payment accounts maintained by the computerized electronic auction payment system, prior to being deemed as winning bidders, via direct deposit, using a credit card, or sending a check, money order, or other financial document to an operator of the computerized electronic auction payment system. In one embodiment, upon being deemed as a winning bidder, the winning bidder accesses a payment page, enters the total amount of funds to be transferred to the seller, and authorizes the computerized electronic auction payment system to effect a real-time payment by debiting his, i.e., the winning bidder'"'"'s, respective electronic auction payment account and crediting the electronic auction payment account of the seller, and/or another account specified by the seller. In an alternate embodiment, the prospective bidder authorizes the computerized electronic auction payment system to effect a real-time payment to the seller upon the prospective bidder being deemed the winning bidder (i.e., immediately following the conclusion of the auction). That is, without the winning bidder having to access the payment page.

Claims

1. A method for automatically effecting payment for a user of an electronic auction web site maintained by at least one computing device to an operator associated with the electronic auction web site, said method comprising the steps of:

executing by at least one processor a sequence of events, the sequence of events including the steps of providing the user with an option prior to the conclusion of an electronic auction provided by the electronic auction web site, the option enabling the user to authorize a payment system to execute an automatic payment method after the conclusion of the electronic auction, the automatic payment method includes automatically deducting funds from a payment account storing funds therein and corresponding to the user;

receiving authorization from the user in response to the provided option and prior to the beginning of the electronic auction to execute the automatic payment method after the conclusion of the electronic auction; and

determining whether to execute the automatic payment method for the user after the conclusion of the electronic auction based on whether the user has provided authorization to execute the automatic payment method in response to the provided option; and

executing by the at least one processor the automatic payment method after the conclusion of the electronic auction, if it is determined by the at least one processor to execute the automatic payment method and the user has provided authorization for executing the automatic payment method in response to the provided option, the executing step comprising the steps of;

automatically deducting funds from the funds stored in the payment account corresponding to the user of the electronic auction web site; and

automatically transferring at least a portion of the deducted funds into an account corresponding to the operator associated with the electronic auction web site.

2. The method according to claim 1, further comprising the step of receiving authorization from the user to periodically access the user'"'"'s payment account.

3. The method according to claim 1, further comprising the step of automatically transferring at least a remaining portion of the deducted funds into at least a payment account corresponding to another user of the electronic auction web site.

4. The method according to claim 1, wherein the payment account corresponding to the user stores funds and not information relating to sources which can be used to initiate payment, and wherein the deducted funds are equal to a final auction price for an auction item offered for auction sale via the electronic auction web site, plus additional fees.

5. The method according to claim 1, further comprising the steps of:

determining if there are sufficient funds in the payment account corresponding to the user to effect payment prior to the step of automatically deducting funds from the payment account; and

loaning funds to effect payment, if it is determined there are not sufficient funds in the payment account corresponding to the user.

6. The method according to claim 1, further comprising the step of automatically replenishing the payment account corresponding to the user after the step of automatically deducting funds from the payment account.

7. A method for automatically effecting payment for a user of an electronic commerce web site, said method comprising the steps of:

setting up an electronic payment account by at least one processor for the user, said payment account storing funds therein for use in effecting payment for network-based commerce transactions;

automatically deducting funds stored within the electronic payment account due to at least one network-based commerce transaction without receiving a request from the user to deduct funds following a termination event of the at least one network-based commerce transaction; and

automatically transferring at least a portion of the deducted funds to an account associated with an operator of the electronic commerce web site, the electronic payment account storing funds therein and the electronic commerce web site are maintained by an electronic commerce and payment computing architecture, said computing architecture having computing devices for maintaining the electronic payment account storing funds therein and the electronic commerce web site, said computing devices being in operative communication with each other via at least one non-Internet connection.

8. The method according to claim 7, wherein at least one of the computing devices includes a database storing a plurality of electronic payment accounts each corresponding to a respective user of the electronic commerce web site, including the user.

9. The method according to claim 7, further comprising the step of receiving authorization from the user to automatically deduct funds from the electronic payment account prior to the step of automatically deducting funds from the payment account.

10. A network-based commerce system for automatically effecting payment for a user of a network-based commerce web site maintained by at least one computing device to an operator associated with the network-based commerce web site, said network-based commerce system comprising:

an automatic payment service module; and

means for executing a sequence of events, the sequence of events including the steps of;

providing the user with an option to enable an automatic payment service prior to the termination event of a network-based commerce transaction, the option enabling the user to authorize the automatic payment service module to execute an automatic payment method after the termination of the network-based commerce transaction, the automatic payment method includes automatically deducting funds from a payment account storing funds therein and corresponding to the user;

receiving authorization from the user in response to the provided option and prior to the termination event of the network-based commerce transaction to execute the automatic payment method after the termination event of the network-based commerce transaction; and

determining whether to execute the automatic payment method for the user after the termination event of the network-based commerce transaction based on whether the user has provided authorization to execute the automatic payment method in response to the provided option;

wherein the automatic payment service module executes the automatic payment method after the conclusion of the network-based commerce transaction, if it is determined to execute the automatic payment method and the user has provided authorization for executing the automatic payment method in response to the provided option, the automatic payment method comprising the steps of;

automatically deducting funds from the funds stored in the payment account corresponding to the user of the network-based commerce transaction; and

automatically transferring at least a portion of the deducted funds into an account corresponding to the operator associated with the network-based commerce web site.

11. The network-based commerce system according to claim 10, wherein the automatic payment service module automatically provides payment to another user of the network-based commerce web site from the funds deducted from the payment account corresponding to the user.

12. The network-based commerce system according to claim 10, wherein the option is available to the user via a control panel provided by the automatic payment service module that allows the user to enable the automatic payment service, disable the automatic payment service, and edit payment information corresponding to the user.

13. The network-based commerce system according to claim 10, further comprising a network-based payment system having a payment machine configured to receive and send data from and to a network.

14. The network-based commerce system according to claim 13, wherein the network-based payment system includes a database storing a plurality of payment accounts configured for storing funds therein and for use in effecting payment for said network-based commerce transaction, including the payment account corresponding to the user.

15. The network-based commerce system according to claim 13, wherein the network-based payment system stores payment information corresponding to the user.

16. The network-based commerce system according to claim 15, the payment information including at least one of a credit card number, a checking account number, and an address.

17. The network-based commerce system according to claim 13, wherein the network-based commerce system and the network-based payment system are integrated.

18. The network-based commerce system according to claim 10, wherein the network-based commerce transaction is selected from the group consisting of a network-based auction, and a fixed-price sale of an item from an individual.

19. A payment system for automatically effecting payment for a user of an electronic commerce web site, said payment system comprising:

means for setting up a payment account for the user, said payment account storing funds therein for use in effecting payment for network-based commerce transactions;

means for automatically deducting funds stored within the payment account due to at least one network-based commerce transaction without receiving a request from the user to deduct funds following a termination event of the at least one network-based commerce transaction; and

means for automatically transferring at least a portion of the deducted funds to an account associated with an operator of the electronic commerce web site, the payment account storing funds therein and the electronic commerce web site are maintained by an electronic commerce and payment computing architecture, said computing architecture having computing devices for maintaining the payment account storing funds therein and the electronic commerce web site, said computing devices being in operative communication with each other via at least one non-Internet connection.

20. The payment system according to claim 19, wherein the at least one network-based commerce transaction is selected from the group consisting of a network-based auction, and a fixed-price sale of an item from an individual.

21. The payment system according to claim 19, further comprising means for loaning funds to the user if there are insufficient funds in the payment account.

22. The payment system according to claim 19, wherein at least one of the computing devices includes a database storing a plurality of payment accounts each corresponding to a respective user of the electronic commerce web site, including the payment account corresponding to the user.