System and method for processing microtransactions

• US 7,660,765 B1
• Filed: 06/06/2008
• Issued: 02/09/2010
• Est. Priority Date: 01/15/2002
• Status: Expired due to Term

• 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, Wallace, William, Knackstedt, Lee
• Primary Examiner(s): Cheung; Mary
• Assistant Examiner(s): Nguyen; Tien C
• Application Number:
  US12/134,693
• Time in Patent Office: 613 Days
• Field of Search: 705 1- 45, 705 64- 80, 725/4, 707/9, 235/380
• US Class Current: 705/39
• 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 including one or more electronic information packets and a purchase amount, the one or more electronic information packets including purchase information of a purchase initiated by a customer using a transaction account and interacting with a merchant;

accessing a microtransaction threshold amount;

comparing the purchase amount to the microtransaction threshold amount using a computer processor;

when the purchase amount is above the microtransaction threshold amount;

classifying the purchase request as a non-microtransaction, and

processing the purchase information directly through a first interchange entity having a first processing protocol for a non-microtransaction;

when the purchase amount is equal to or below the microtransaction threshold amount;

classifying the purchase request as a microtransaction,

electronically routing the purchase information to a second interchange entity different than the first interchange entity, the second interchange entity having a second processing protocol for a microtransaction,

collecting a plurality of microtransactions into a pool,

forming an aggregate transaction from the plurality of microtransactions,

forwarding the aggregate transaction from the second interchange entity to the first interchange entity for processing as a single transaction, and

processing the purchase information through the second interchange entity to effect the microtransaction between the customer and the merchant;

wherein the microtransaction includes a first set of attributes and the non-microtransaction includes a second set of attributes, the first set of attributes different from the second set of attributes, and the first set of attributes including a decreased ability to challenge charges as being incorrect when compared to the second set of attributes.

2. The method of claim 1, wherein each of the first interchange entity, the second interchange entity, and the merchant communicate with each other over the internet.

3. The method of claim 1, further comprising:

outputting authorization information from at least one of the first interchange entity and the second interchange entity to the merchant after processing the purchase information.

4. The method of claim 3, wherein the outputting authorization information to the merchant comprises:

checking to confirm that a payment enabler including a financial services entity that issued the transaction account received the processed purchased information; and

basing the outputting authorization information to the merchant on the checking.

5. The method of claim 4, wherein when the payment enabler did not receive the processed purchase information, the authorization information includes an indication that the microtransaction cannot be processed at a location at which the merchant is disposed.

6. The method of claim 3, wherein the outputting authorization information to the merchant further comprises:

a customer notice indicating the terms of agreement of a non-microtransaction between the customer and the payment enabler will not apply to the transaction.

7. The method of claim 6, wherein the merchant interacts with the customer to obtain acknowledgment from the customer of the customer notice.

8. The method of claim 1, further comprising:

varying the microtransaction threshold amount based on the time of day.

9. The method of claim 1, further comprising:

varying the microtransaction threshold amount based on a throughput experienced by the merchant.

10. The method of claim 1, wherein the pool in which the plurality of microtransactions have been collected includes microtransactions associated with at least one customer.

11. The method of claim 10, further comprising:

adjusting a portion of the pool that is associated with a particular customer based on activities of the customer.

12. The method of claim 11, wherein the activities of the customer include the customer accessing web sites on a network.

13. The method according to claim 1, wherein the purchase amount includes a purchase price.

14. The method according to claim 13, wherein the purchase amount further includes a tax.

15. The method according to claim 1, wherein the transaction account is an account selected from the group consisting of:

a credit card account,

a debit card account, and

a stored value card account.

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

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

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

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

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

when the purchase price is equal to or below the microtransaction threshold amount, the purchase is processed as a microtransaction through a second interchange entity, the second interchange entity having a second processing protocol for 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 different than the first interchange entity for processing to effect the microtransaction between the customer and the merchant by collecting a plurality of microtransactions into a pool, forming an aggregate transaction from the plurality of microtransactions, and forwarding the aggregate transaction from the second interchange entity to the first interchange entity for processing as a single transaction,

wherein the microtransaction includes a first set of attributes and the non-microtransaction includes a second set of attributes, the first set of attributes different from the second set of attributes, and the first set of attributes including a decreased ability to challenge charges as being incorrect when compared to the second set of attributes.