System and method for automatically effecting payment for a user of an electronic auction system

• US 7,567,937 B2
• Filed: 09/05/2001
• Issued: 07/28/2009
• 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 Anthony
• Primary Examiner(s): Poinvil, Frantzy
• Assistant Examiner(s): GRAHAM, CLEMENT B
• Application Number:
  US09/946,616
• Publication Number:
  US 20020095376A1
• Time in Patent Office: 2,883 Days
• Field of Search: 382/139, 705 35- 44, 235/380
• 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. 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.

Claims

1. A method for automatically effecting payment for a user of an electronic auction web site maintained by an electronic auction system, said method comprising the steps of:

maintaining a plurality of electronic payment accounts by an electronic auction payment system integrated with said electronic auction system, each of said plurality of electronic payment accounts storing funds therein and each being used for user transactions in the electronic auction system;

receiving authorization from the user prior to the beginning of an electronic auction provided by the electronic auction web site to execute an automatic payment method after the conclusion of the electronic auction, wherein the automatic payment method includes at least automatically deducting funds from one of the electronic payment accounts corresponding to the user of the electronic auction web site; and

executing the automatic payment method for the user after the conclusion of the electronic auction, if the user has provided authorization prior to the beginning of the electronic auction for executing the automatic payment method, the executing step being performed by at least one processor and comprising the steps of;

automatically deducting funds from 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 at least one account for automatically effecting payment for the user of the electronic auction web site, wherein at least one payment source corresponding to the user of the electronic auction web site is used to obtain funds for storing within the payment account prior to deducting funds from the payment account.

2. The method according to claim 1, further comprising the step of accessing the user'"'"'s payment account on a periodic basis for at least withdrawing funds from therein and transferring the withdrawn funds to an account corresponding to an operator of the electronic auction system.

3. The method according to claim 1, wherein the at least one account corresponds to an operator of the electronic auction system.

4. The method according to claim 1, wherein the deducted funds include at least fees payable to an operator of an electronic auction payment system in operative communication with the electronic auction system.

5. The method according to claim 1, wherein the steps of automatically deducting funds from the payment account corresponding to the user and automatically transferring at least the portion of the deducted funds into the at least one account occur in real-time.

6. The method according to claim 1, wherein the at least one account corresponds to at least a payment account corresponding to another user of the electronic auction web site.

7. The method according to claim 1, wherein the at least one account includes an account corresponding to an operator of the electronic auction system and a payment account corresponding to another user of the electronic auction web site.

8. 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 executing the automatic payment method; and

loaning funds to effect payment, if there are not sufficient funds in the payment account corresponding to the user of the electronic auction web site.

9. 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.

10. The method according to claim 9, further comprising the step of charging a fee for automatically replenishing the payment account corresponding to the user of the electronic auction web site.

11. A system for automatically effecting payment for a user of an electronic auction web site maintained by an electronic auction system, said system for automatically effecting payment comprising:

an electronic auction payment system comprising means for maintaining a plurality of payment accounts each storing funds therein and each being used for user transactions in the electronic auction system, said electronic auction payment system being integrated with said electronic auction system;

means for receiving authorization from the user prior to the beginning of an electronic auction provided by the electronic auction web site to execute an automatic payment method after the conclusion of the electronic auction, wherein the automatic payment method includes at least automatically deducting funds from one of the payment accounts corresponding to the user of the electronic auction web site; and

means for executing the automatic payment method for the user after the conclusion of the electronic auction, if the user has provided authorization prior to the beginning of the electronic auction for executing the automatic payment method, the means for executing the automatic payment method comprising;

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

means for automatically transferring at least a portion of the deducted funds into at least one account for automatically effecting payment for the user of the electronic auction web site, wherein at least one payment source corresponding to the user of the electronic auction web site is used to obtain funds for storing within the payment account prior to deducting funds from the payment account.

12. The system according to claim 11, further comprising means for accessing the user'"'"'s payment account on a periodic basis for at least withdrawing funds from therein and transferring the withdrawn funds to an account corresponding to an operator of the electronic auction system.

13. The system according to claim 11, wherein the at least one account corresponds to an operator of the electronic auction system.

14. The system according to claim 11, wherein the deducted funds include at least fees payable to an operator of an electronic auction payment system in operative communication with the electronic auction system.

15. The system according to claim 11, wherein the means for automatically deducting funds from the payment account corresponding to the user of the electronic auction web site deducts the funds in real-time, and wherein the means for automatically transferring at least the portion of the deducted funds into the at least one account transfers at least the portion of the deducted funds in real-time.

16. The system according to claim 11, wherein the at least one account corresponds to at least a payment account corresponding to another user of the electronic auction web site.

17. The system according to claim 11, wherein the at least one account includes an account corresponding to an operator of the electronic auction system and a payment account corresponding to another user of the electronic auction web site.

18. The system according to claim 11, further comprising:

means for determining if there are sufficient funds in the payment account corresponding to the user to effect payment prior to activating the means for executing the automatic payment method; and

means for loaning funds to effect payment, if there are not sufficient funds in the payment account corresponding to the user.

19. The system according to claim 11, further comprising means for automatically replenishing the payment account corresponding to the user after automatically deducting funds from the payment account.

20. The system according to claim 19, further comprising the step of charging a fee for automatically replenishing the payment account corresponding to the user.