System and method for optimal selection of payment authorizations in complex commerce systems

• US 7,533,060 B2
• Filed: 04/19/2006
• Issued: 05/12/2009
• Est. Priority Date: 04/19/2006
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Srikanth, Viswanath, Perazolo, Marcelo, Hoyos, Carlos Antonio Lorenzo
• Primary Examiner(s): Poinvil; Frantzy
• Application Number:
  US11/379,304
• Publication Number:
  US 20070250443A1
• Time in Patent Office: 1,119 Days
• Field of Search: 705 10- 44
• US Class Current: 705/44
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system and method for optimal selection of payment authorization in a complex commerce system is presented. A commerce system uses an algorithm to select an optimum payment authorization for a particular payment deposit. The algorithm allows the commerce system to support multiple types of authorizations while minimizing the number of payment transactions if possible. The algorithm also handles payment instrument priority, sufficient authorization amount availability, and a selection of a favorable set of payment authorizations for which to apply the payment deposit. Once the algorithm selects an optimum payment authorization for a particular payment deposit, the commerce system applies the payment deposit towards the optimum payment authorization in order to receive funds from an external payment provider.

Claims

1. A computer-implemented method comprising:

receiving, by a commerce system, an order that includes one or more order items, wherein a plurality of payment authorizations that correspond to the order are received from one or more external payment providers;

acquiring the plurality of payment authorizations that correspond to the order, wherein each of the plurality of authorizations includes an authorization amount;

creating a payment deposit that corresponds to shipping one or more of the order items, the payment deposit including a deposit amount;

in response to determining that the deposit amount does not equal one of the authorization amounts, determining whether a plurality of payment deposits are allowed to be applied to one of the plurality of payment authorizations;

in response to determining that the plurality of payment deposits are allowed to be applied to one of the payment authorizations, determining whether one of the authorizations includes a remaining authorization amount that equals the deposit amount;

selecting, by a processor included in the commerce system, an optimum payment authorization for which to apply the payment deposit, the optimum payment authorization included in the plurality of payment authorizations, wherein the selecting results in minimizing a number of payment transactions to one or more of the external payment providers wherein, and wherein the selecting is performed based upon determining that the optimum payment authorization corresponds to the remaining authorization amount that equals the deposit amount; and

transferring funds corresponding to the deposit amount based upon the optimum payment authorization.

2. A computer program product stored on a computer operable media, the computer operable media containing instructions for execution by a computer, which, when executed by the computer, cause the computer to implement a method for payment authorization selection, the method comprising:

receiving an order that includes one or more order items, wherein a plurality of payment authorizations that correspond to the order are received from one or more external payment providers;

acquiring the plurality of payment authorizations that correspond to the order, wherein each of the plurality of authorizations includes an authorization amount;

creating a payment deposit that corresponds to shipping one or more of the order items, the payment deposit including a deposit amount;

in response to determining that the deposit amount does not equal one of the authorization amounts, determining whether a plurality of payment deposits are allowed to be applied to one of the plurality of payment authorizations;

in response to determining that the plurality of payment deposits are allowed to be applied to one of the payment authorizations, determining whether one of the authorizations includes a remaining authorization amount that equals the deposit amount;

selecting an optimum payment authorization for which to apply the payment deposit, the optimum payment authorization included in the plurality of payment authorizations, wherein the selecting results in minimizing a number of payment transactions to one or more of the external payment providers wherein, and

wherein the selecting is performed based upon determining that the optimum payment authorization corresponds to the remaining authorization amount that equals the deposit amount; and

transferring funds corresponding to the deposit amount based upon the optimum payment authorization.

3. An information handling system comprising:

one or more processors;

a memory accessible by the processors;

one or more nonvolatile storage devices accessible by the processors; and

a payment authorization selection tool for selecting an optimum payment authorization, the payment authorization selection tool comprising software code executed by the processors to perform steps comprising;

receiving an order over a computer network, wherein the order includes one or more order items, wherein a plurality of payment authorizations that correspond to the order are received from one or more external payment providers;

acquiring a plurality of payment authorizations over the computer network, wherein the payment authorizations correspond to the order, wherein each of the plurality of authorizations includes an authorization amount;

creating a payment deposit that corresponds to shipping one or more of the order items, the payment deposit including a deposit amount;

in response to determining that the deposit amount does not equal one of the authorization amounts, determining whether a plurality of payment deposits are allowed to be applied to one of the plurality of payment authorizations;

in response to determining that the plurality of payment deposits are allowed to be applied to one of the payment authorizations, determining whether one of the authorizations includes a remaining authorization amount that equals the deposit amount;

selecting an optimum payment authorization included in one of the nonvolatile storage devices for which to apply the payment deposit, the optimum payment authorization included in the plurality of payment authorizations, wherein the selecting results in minimizing a number of payment transactions to one or more of the external payment providers wherein, and wherein the selecting is performed based upon determining that the optimum payment authorization corresponds to the remaining authorization amount that equals the deposit amount; and

transferring transfer funds over the computer network corresponding to the deposit amount based upon the optimum payment authorization.