Computer-assisted funds transfer system

• US 7,685,067 B1
• Filed: 05/14/1999
• Issued: 03/23/2010
• Est. Priority Date: 05/14/1999
• Status: Expired due to Fees

• Current Assignee: Amazon Technologies, Inc. (Amazon.com, Inc.)
• Original Assignee: Amazon.com, Inc.
• Inventors: Lee, Angela C., Young, FuMing, Blakey, Adrian J., Britto, Mark J., Ringewald, Erich L., Cardwell, Aimee K., Peddy, Nicholas K.
• Primary Examiner(s): Felten; Daniel S
• Application Number:
  US09/312,028
• Time in Patent Office: 3,966 Days
• Field of Search: 705/37, 705/39, 235/379
• US Class Current: 705/40
• 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 20/40 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 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• 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

Abstract

A payment request associated with a transfer of funds is received and a risk management assessment for both sides thereof is performed. If the risk management assessment procedure produces an adverse indication, the payment request is declined. Otherwise, the payment request may be processed for delivery of a payment associated therewith. The risk management assessment may be performed on the basis of credit/authentication information derived from customer information received with (or even prior to) the payment request. Such customer information may include credit card account information and/or bank account information (e.g., checking account) information. In some cases, the risk management assessment may include an automated component and a manual (non-automated) component. Such a manual component may be needed where the automated component of the risk management assessment provides suspect information regarding one of the parties to the transaction. Where the payment request is processed for delivery of the payment, such processing may include submitting a payment authorization request, and, upon receiving a settlement indication regarding that payment authorization request, transmitting the payment. In some cases, the payment may be transmitted as a check, while in others it may be transmitted as a money order or instruction to have funds automatically deposited in an account.

Claims

1. A computer-implemented method of reducing e-commerce fraud, the method comprising:

receiving a payment request at a computer system that implements a user-to-user funds transfer service, said payment request generated by a buyer via a web form of the computer system, and specifying a seller and a payment amount to transfer to the seller, said payment request being associated with a sales transaction between the buyer and the seller;

in response to the payment request, performing an automated fraud check of at least said seller, said automated fraud check comprising an automated assessment of data associated with the seller, including data obtained from a third party not directly associated with the transaction, wherein performing the automatic fraud check comprises using a risk score to assess a risk associated with the transaction;

when the automated fraud check produces an adverse indication, declining the payment request; and

when the automated fraud check does not produce an adverse indication, processing the payment request by causing the payment amount to be transferred from the buyer to the seller.

2. The method of claim 1, wherein the automated fraud check additionally includes an automated fraud check of the buyer.

3. The method of claim 1, wherein performing the automated fraud check comprises taking said payment amount into consideration in assessing a risk associated with the transaction.

5. The method of claim 1, wherein performing the automated fraud check comprises using risk assessment scoring provided by said third party.

6. The method of claim 1, wherein performing the automated fraud check comprises authenticating the seller.

7. The method of claim 1, wherein the automated fraud check is additionally performed using data collected by the computer system from the seller via one or more web forms.

9. The method of claim 1, wherein performing the automated fraud check comprising using information supplied by the seller during web-based registration to assess a risk associated with the seller.

10. The method of claim 1, further comprising, when the automated fraud check produces an adverse indication, electronically notifying the buyer and the seller of said adverse indication.

12. The method of claim 1, wherein the sales transaction is an Internet auction transaction.

13. The method of claim 12, wherein the payment request includes an auction identifier of said auction.

14. The method of claim 1, further comprising registering the buyer and the seller with the funds transfer service via a web-based user interface.

4. A computer-implemented method of reducing e-commerce fraud, the method comprising:

receiving a payment request at a computer system that implements a user-to-user funds transfer service, said payment request generated by a buyer via a web form of the computer system, and specifying a seller and a payment amount to transfer to the seller, said payment request being associated with a sales transaction between the buyer and the seller;

in response to the payment request, performing an automated fraud check of at least said seller, said automated fraud check comprising an automated assessment of data associated with the seller, including data obtained from a third party not directly associated with the transaction, wherein the third party is a credit bureau, and performing the automated fraud check comprises requesting credit information of the seller from the credit bureau;

when the automated fraud check produces an adverse indication, declining the payment request; and

when the automated fraud check does not produce an adverse indication, processing the payment request by causing the payment amount to be transferred from the buyer to the seller.

8. A computer-implemented method of reducing e-commerce fraud, the method comprising:

receiving a payment request at a computer system that implements a user-to-user funds transfer service, said payment request generated by a buyer via a web form of the computer system, and specifying a seller and a payment amount to transfer to the seller, said payment request being associated with a sales transaction between the buyer and the seller;

in response to the payment request, performing an automated fraud check of at least said seller, said automated fraud check comprising an automated assessment of data associated with the seller, including data obtained from a third party not directly associated with the transaction;

when the automated fraud check produces an adverse indication, declining the payment request; and

when the automated fraud check does not produce an adverse indication, processing the payment request by causing the payment amount to be transferred from the buyer to the seller;

wherein the method comprises responding to the payment request by sending an electronic request for information to the seller, and using information returned by the seller in response to the request to perform the automated fraud check.

11. A computer-implemented method of reducing e-commerce fraud, the method comprising:

receiving a payment request at a computer system that implements a user-to-user funds transfer service, said payment request generated by a buyer via a web form of the computer system, and specifying a seller and a payment amount to transfer to the seller, said payment request being associated with a sales transaction between the buyer and the seller;

in response to the payment request, performing an automated fraud check of at least said seller, said automated fraud check comprising an automated assessment of data associated with the seller, including data obtained from a third party not directly associated with the transaction;

when the automated fraud check produces an adverse indication, declining the payment request and initiating a manual review by a human risk management assessor; and

when the automated fraud check does not produce an adverse indication, processing the payment request by causing the payment amount to be transferred from the buyer to the seller.

15. A computer-readable medium having stored thereon a computer program which embodies a method of reducing e-commerce fraud, the method comprising:

receiving a payment request at a computer system that implements a user-to-user funds transfer service, said payment request generated by a buyer via a web form of the computer system, and specifying a seller and a payment amount to transfer to the seller, said payment request being associated with a sales transaction between the buyer and the seller;

in response to the payment request, performing an automated fraud check of at least said seller, said automated fraud check comprising an automated assessment of data associated with the seller, including data obtained from a third party not directly associated with the transaction, wherein performing the automatic fraud check comprises using a risk score to assess a risk associated with the transaction;

when the automated fraud check produces an adverse indication, declining the payment request; and

when the automated fraud check does not produce an adverse indication, processing the payment request by causing the payment amount to be transferred from the buyer to the seller.

16. The computer-readable medium of claim 15, wherein the automated fraud check additionally includes an automated fraud check of the buyer.

17. The computer-readable medium of claim 15, wherein performing the automated fraud check comprises taking said payment amount into consideration in assessing a risk associated with the transaction.

18. The computer-readable medium of claim 15, wherein the third party is a credit bureau, and performing the automated fraud check comprises requesting credit information of the seller from the credit bureau.

19. The computer-readable medium of claim 15, wherein the method comprises responding to the payment request by sending an electronic request for information to the seller, and using information returned by the seller in response to the request to perform the automated fraud check.

25. The computer-readable medium as in claim 15, in combination with said computer system, wherein the computer system is operative to execute said computer program to perform said method.

20. A computer-readable medium having stored thereon a computer program which embodies a method of reducing e-commerce fraud, the method comprising:

receiving a payment request at a computer system that implements a user-to-user funds transfer service, said payment request generated by a buyer via a web form of the computer system, and specifying a seller and a payment amount to transfer to the seller, said payment request being associated with a sales transaction between the buyer and the seller, wherein the payment request includes an auction identifier associated with the payment request;

in response to the payment request, performing an automated fraud check of at least said seller, said automated fraud check comprising an automated assessment of data associated with the seller, including data obtained from a third party not directly associated with the transaction;

when the automated fraud check produces an adverse indication, declining the payment request; and

when the automated fraud check does not produce an adverse indication, processing the payment request by causing the payment amount to be transferred from the buyer to the seller.

21. The computer-readable medium as in claim 20, wherein performing the automatic fraud check comprises using a risk score to assess a risk associated with the transaction.

22. The computer-readable medium as in claim 20, wherein the method further comprises initiating a manual review by a human risk management assessor when the automated fraud check produces an adverse indication.

23. The computer-readable medium as in claim 20, the third party is a credit bureau, and performing the automatic fraud check comprises requesting credit information of the seller from the credit bureau.

24. The computer-readable medium as in claim 20, in combination with said computer system, wherein the computer system is operative to execute said computer program to perform said method.