Authorization and capture with multiple currencies

• US 7,734,544 B2
• Filed: 03/16/2006
• Issued: 06/08/2010
• Est. Priority Date: 04/08/2005
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: Schleicher, Joerg
• Primary Examiner(s): Hewitt, II; Calvin L
• Assistant Examiner(s): Qayyum; Zeshan
• Application Number:
  US11/376,848
• Publication Number:
  US 20060229977A1
• Time in Patent Office: 1,545 Days
• Field of Search: 705/40
• US Class Current: 705/40
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/381 Currency conversion
• 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 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

Techniques are presented for authorization and capture with multiple funding sources and currencies. A transaction amount associated with a target currency is authorized from one or more funding sources, where at least one of the one or more funding sources includes funds associated with a different currency from the target currency. The funds from the different currency are calculated at authorization to cover the transaction amount and converted at settlement or capture to determine if the transaction amount is still covered at capture.

Claims

1. An authorization and conversion system comprising:

at least one processor;

a memory in communication with at least one processor, storing instructions that when executed by the at least one processor cause the at least one processor to perform the operations of;

storing at least one settlement policy and at least one mutually agreed threshold for a currency conversion between a buyer and a merchant;

receiving by a settlement and capture service a transaction from a merchant computer, for an amount in a target currency;

determining by the settlement and capture service that funds in an account of the buyer in a source currency are insufficient to cover the transaction amount in the target currency;

based on the settlement policy, acquiring by the settlement and capture service a balance of funds from an account of the buyer in a backup currency, wherein the backup currency is different from the source and target currencies;

acquiring by the settlement and capture service a currency conversion rate for conversion between the source currency and the backup currency;

comparing by the settlement and capture service a difference between the acquired currency conversion rate and an initial currency conversion rate with the mutually agreed threshold; and

authorizing the transaction by the settlement and capture service based on the comparison.

2. The system of claim 1, wherein the account of the buyer in the backup currency includes different available funds in the source currency or in the target currency.

3. The system of claim 2, wherein the settlement and capture service is to convert the funds in the account of the buyer in the source currency to the target currency when the transaction is consummated.

4. The system of claim 3, wherein the settlement and capture service is to determine that the converted funds are deficient to cover the transaction amount in the target currency and acquire additional funds in the target currency from other funding sources when the transaction is consummated based on the determination.

5. The system of claim 3, wherein the authorization and currency conversion system and/or the settlement and capture service assesses a fee to at least one of a buyer or a seller associated with the transaction for authorization and/or for settlement.

6. The system of claim 3, wherein the settlement and capture service is to determine that a proposed conversion will produce a deficiency to cover the transaction amount in the target currency and, based on the determination, abort the transaction and release the transaction amount when the transaction is to be consummated.

7. The system of claim 1, wherein the authorization and currency conversion system is to convert the funds in the account of the buyer in the source currency to the target currency using fixed currency rates available on a day that authorization is processed.

8. The system of claim 1, wherein the settlement and capture service is to convert the funds in the account of the buyer in the source currency to the target currency using currency rates at a time of settlement or capture.

9. The system of claim 8, wherein the settlement and capture service is to determine that the currency rates existing at the time of settlement or capture will produce a settlement amount that exceeds an authorized transaction amount to a certain or predefined percentage of authorization and, based on the determination, abort the transaction.

10. The system of claim 8, wherein the settlement and capture service is to determine that the currency rates existing at the time of settlement will produce a settlement amount that is equal to or less than the authorized transaction amount and, based on the determination, consummate the transaction.

11. The system of claim 8, wherein the settlement and capture service is to determine that the currency rates existing at the time of settlement will produce a settlement amount that exceeds the authorized transaction amount by a percentage of the authorized transaction amount and no additional funding is available to consummate the transaction and, based on the determination, abort the transaction.

12. The system of claim 8, wherein the settlement and capture service is to determine that authorization is insufficient to cover the transaction amount at settlement or capture and the additional funds are converted when necessary to the target currency, and based on the determination, attempt to acquire additional funds from a backup funding source to consummate the transaction.

13. A method comprising:

storing at least one settlement policy and at least one mutually agreed threshold for a currency conversion between a buyer and a merchant;

receiving by a settlement and capture service a transaction from a merchant computer, for an amount in a target currency;

determining by the settlement and capture service that funds in an account of the buyer in a source currency are insufficient to cover the transaction amount in the target currency;

based on the settlement policy, acquiring by the settlement and capture service a balance of funds from an account of the buyer in a backup currency, wherein the backup currency is different from the source and target currencies;

acquiring by the settlement and capture service a currency conversion rate for conversion between the source currency and the backup currency;

comparing by the settlement and capture service a difference between the acquired currency conversion rate and an initial currency conversion rate with the mutually agreed threshold; and

authorizing the transaction by the settlement and capture service based on the comparison.

14. The method of claim 13 further comprises:

converting the funds in the account of the buyer in the source currency to the target currency when the transaction is consummated.

15. The method of claim 13 further comprises:

determining that the balance of funds from the account of the buyer in the backup currency is sufficient to cover the transaction amount in the target currency and, based on the determination, deciding to proceed with a settlement.

16. The method of claim 13 further comprises:

determining that the currency conversion rates used with the target currency at the time of the settlement creates a deficiency in the funds authorized and, based on the determination, denying a settlement.

17. The method of claim 13 further comprises:

presenting estimated funds that are to be used to settle the transaction to the buyer via a buyer'"'"'s interface before authorization.

18. The method of claim 17, wherein presenting further comprises:

presenting a current conversion rate associated with determining the estimated funds.

19. The method of claim 13, further comprising:

interacting with the buyer via a buyer'"'"'s interface to acquire identities for the account of the buyer in the source currency;

determining that funds in the account of the buyer in the source currency is deficient at the settlement due to then-existing currency conversion rates, and

acquiring a backup credit card funding source from the buyer via the buyer'"'"'s interface to cover the transaction at a settlement, based on the determination.

20. The method of claim 13, further comprising:

asking the buyer whether a bank associated with a credit card is to be used as a backup funding source to convert to the target currency at settlement or whether a third-party conversion systems to be used to convert to the target currency at a settlement.

21. The method of claim 20, further comprising at least one of:

denying settlement when converting would produce a discrepancy;

using the account of the buyer in the backup currency to cover additional amounts when the transaction is more expensive in response to the conversion of the funds in the account of the buyer in the source currency; and

proceeding with the transaction at settlement when the conversion of the funds in the account of the buyer in the source currency is within a tolerance.

22. The method of claim 20, further comprising:

modifying a settlement amount at a settlement time when a present conversion rate between the target currency and the source currency produces a discrepancy in favor of the buyer.

23. A machine readable medium embodying instructions that, when executed by a machine, cause the machine to perform the following operations:

storing at least one settlement policy and at least one mutually agreed threshold for a currency conversion between a buyer and a merchant;

receiving by a settlement and capture service a transaction from a merchant computer, for an amount in a target currency;

determining by the settlement and capture service that funds in an account of the buyer in a source currency are insufficient to cover the transaction amount in the target currency;

based on the settlement policy, acquiring by the settlement and capture service a balance of funds from an account of the buyer in a backup currency, wherein the backup currency is different from the source and target currencies;

acquiring by the settlement and capture service a currency conversion rate for conversion between the source currency and the backup currency;

comparing by the settlement and capture service a difference between the acquired currency conversion rate and an initial currency conversion rate with the mutually agreed threshold; and

authorizing the transaction by the settlement and capture service based on the comparison.