System and method for processing mircotransactions

• US 7,627,521 B1
• Filed: 01/10/2003
• Issued: 12/01/2009
• Est. Priority Date: 01/15/2002
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Sheehan, Mark, Knackstedt, Lee, Wallace, William
• Primary Examiner(s): Weisberger; Richard C
• Application Number:
  US10/339,596
• Time in Patent Office: 2,517 Days
• Field of Search: 705/1, 705 35- 45, 705/50, 705/64, 705/80
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

The method and system of the invention provide a variety of techniques for processing a microtransaction, wherein the microtransaction is a low monetary amount. In accordance with the invention, the method starts with a customer initiating a purchase through interaction with a merchant. The purchase is associated with purchase information, which includes the particulars of the purchase, such as the purchase price. In the purchase, the customer uses a transaction account, obtained from a payment enabler. The merchant submits the purchase information for processing of the purchase information. Thereafter, the purchase is classified as a microtransaction, if the purchase price is below a predetermined monetary amount. Thereafter, the purchase information is forwarded for processing based on the classifying, i.e., as a result of the purchase being classified as a microtransaction. Then, upon receipt of the purchase information by an appropriate recipient, such as an interchange entity or an alternate interchange entity, the purchase information is processed to effect the microtransaction between the customer and the merchant.

Claims

1. A computer-implemented method for processing a microtransaction, the method comprising:

receiving a purchase request having one or more electronic information packets comprising purchase information of a purchase initiated by a customer interacting with a merchant, the customer using a transaction account, the purchase request including a purchase amount;

accessing a microtransaction threshold amount;

determining whether the purchase amount is below the microtransaction threshold amount;

when the purchase amount is above the microtransaction threshold amount, processing the purchase information through a first interchange entity as a non-microtransaction; and

when the purchase amount is below the microtransaction threshold amount;

electronically routing the purchase information to a second interchange entity, and

processing the purchase information to effect the microtransaction between the customer and the merchant, wherein;

the second interchange entity aggregates the microtransaction with other microtransactions to form an aggregated transaction and outputs the aggregated transaction to the first interchange entity, and

the first interchange entity processes the aggregated transaction as a single transaction.

2. The method of claim 1, wherein the microtransaction threshold amount is $20.

3. The method of claim 1, wherein the microtransaction threshold amount is $15.

4. The method of claim 1, wherein the customer interacting with the merchant is performed over the internet.

5. The method of claim 1, wherein the customer interacting with the merchant is performed over a telephone network or a private network.

6. The method of claim 1, wherein the customer interacting with the merchant is performed through person to person interaction.

7. The method of claim 1, wherein the purchase information includes the purchase price and at least one of a transaction account number, a customer name, and a merchant name.

8. The method of claim 1, wherein the transaction account is one of a credit card and a debit card.

9. The method of claim 1, wherein

the second interchange entity aggregates the customer microtransaction with other microtransactions by combining the microtransaction with the other microtransactions that are effected by other customers of a payment enabler corresponding to the transaction accounts of said customers, so as to form the aggregated transaction.

10. The method of claim 9, further including

the second interchange entity forming an interim account, the aggregated transaction being associated with the interim account;

and

the first interchange entity processing the aggregated transaction in connection with the interim account.

11. The method of claim 10, wherein the aggregated transaction is associated with customer aggregate information containing information relating to those customers corresponding to the aggregated transaction.

12. The method of claim 11, wherein the customer aggregate information is forwarded to the payment enabler through the first interchange entity.

13. The method of claim 11, wherein the customer aggregate information is forwarded to the payment enabler separate from the aggregated transaction, such that the customer aggregate information does not pass through the first interchange entity.

14. The method of claim 13, wherein the customer aggregate information is communicated directly from the second interchange entity to the payment enabler.

15. The method of claim 11, wherein the customer aggregate information includes customer identification and purchase price information for each of the microtransactions.

16. The method of claim 9, wherein the aggregated transaction is created upon the customer microtransaction and the other microtransactions collectively attaining, in monetary value, a predetermined amount.

17. The method of claim 16, wherein the predetermined amount is $500.

18. The method of claim 1, wherein the other microtransactions are other microtransactions of the customer, and the aggregating the microtransactions with other microtransactions includes collecting a plurality of the microtransactions of the customer, to collectively form the aggregated transaction.

19. The method of claim 18, wherein the second interchange entity outputting the aggregated transaction to the first interchange entity is performed once the microtransaction and the other microtransactions collectively attain, in monetary value, a predetermined amount.

20. The method of claim 18, wherein the second interchange entity outputting the aggregated transaction to the first interchange entity is performed upon the first microtransaction being received by the second interchange entity, the aggregated transaction being, in monetary value, a predetermined aggregate amount;

and

the second interchange entity generating a temporary funds account having a balance, the balance being the difference between the aggregate amount and the purchase price.

21. The method of claim 20, wherein the other microtransactions are deducted from the balance once each of the other microtransactions is processed by the second interchange entity.

22. The method of claim 21, further including the second interchange entity providing notice to the customer that the microtransaction will not be afforded the same benefits as non-microtransaction benefits.

25. The method of claim 1, wherein the customer interacting with the merchant is performed using a radio frequency device, the radio frequency device outputting information to the merchant to initiate the microtransaction.

26. The method of claim 25, wherein the radio frequency device is disposed in a key chain possessed by the customer.

27. The method according to claim 1, wherein the outputting of the aggregated transaction is triggered by one or more events selected from a group comprising:

a predetermined time of the day;

an amount of time that has elapsed since a first microtransaction is received by the second interchange entity;

a total number of microtransactions received or aggregated by the second interchange entity;

or

a total dollar amount of microtransactions received or aggregated by the second interchange entity.

28. The method according to claim 1, wherein:

the purchase is a non-microtransaction when the purchase amount is equal to or above the predetermined monetary amount; and

the purchase is a microtransaction when the purchase amount is below the predetermined monetary amount.

29. The method according to claim 1, wherein:

the purchase is a non-microtransaction when the purchase amount is above the predetermined monetary amount; and

the purchase is a microtransaction when the purchase amount is equal to or below the predetermined monetary amount.

30. The method according to claim 1, wherein the purchase amount includes the purchase price and tax.

31. The method according to claim 1, wherein the purchase amount comprises the purchase price.

32. The method according to claim 1, wherein the purchase request is electronically routed to the first interchange entity or the second interchange entity based on the determination with respect to the microtransaction payment threshold.

23. A computer readable medium for processing a microtransaction, the computer readable medium comprising:

a first set of instructions to receive a purchase request having one or more electronic information packets comprising purchase information of a purchase initiated by a customer interacting with a merchant, the customer using a transaction account, the purchase information including a purchase amount;

a second set of instructions to access a microtransaction threshold amount;

a third set of instructions to determine whether the purchase price is below a microtransaction threshold amount, wherein;

when the purchase price is above the microtransaction threshold amount, the purchase information is processed through a first interchange entity as a non-microtransaction, and

when the purchase price is below the microtransaction threshold amount, the purchase is processed through a second interchange entity as a microtransaction; and

a fourth set of instructions to forward the purchase information for processing based on whether the purchase request is a non-microtransaction or a microtransaction, wherein;

the purchase information of the non-microtransaction is processed through a first interchange entity for processing, and

the purchase information of the microtransaction is electronically routed to a second interchange entity for processing, wherein;

the second interchange entity aggregates the microtransaction with other microtransactions to form an aggregated transaction and outputs the aggregated transaction to the first interchange entity, and

the first interchange entity processes the aggregated transaction as a single transaction.

24. The computer readable medium of claim 23, wherein the fourth set of instructions causes a plurality of microtransactions to be grouped into a pool, prior to forwarding the purchase information.