Method and system for conducting a commercial transaction between a buyer and a seller

• US 7,822,679 B1
• Filed: 10/29/2001
• Issued: 10/26/2010
• Est. Priority Date: 10/29/2001
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.), Visa USA, Inc. (Visa, Inc.)
• Inventors: Yeakle, Loraine Martin, Fernandes, Paulo, Duncan, Alistair, Vaux, Jonathan, Triplett, Brian, Dreyer, Michael
• Primary Examiner(s): Felten; Daniel S
• Application Number:
  US10/020,466
• Time in Patent Office: 3,284 Days
• Field of Search: 705/38
• US Class Current: 705/38
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A system for conducting a commercial transaction between a buyer and a seller is disclosed. The system includes a transaction processing system for facilitating payment for a transaction between the buyer and the seller. In addition to the buyer and the seller, the transaction processing system also interacts with an issuer and an acquirer. An electronic invoice relating to the transaction is first posted to the system by the seller or another system. Upon accepting the electronic invoice, the system creates a payment instruction. Each time a payment instruction is created, the system applies certain pre-negotiated payment terms and conditions between the buyer and the seller to the payment instruction. After the payment instruction is created, the system seeks approval from the buyer. Upon approval of the payment instruction by the buyer, the system schedules the payment for the specified date in the payment instruction.

Claims

1. A method for processing invoices submitted by sellers to buyers, comprising:

using a server in a transaction processing system, maintaining buyer accounts and seller accounts for the buyers and the sellers respectively; and

using the server, maintaining a plurality of terms and conditions relating to the buyers, the sellers, issuers and acquirers;

with respect to each invoice, performing the following;

identifying the involved buyer, seller, issuer and acquirer;

determining one or more fees based on portions of the plurality of terms and conditions relating to the involved buyer, seller, issuer and acquirer;

calculating a net amount using the transaction fee;

obtaining payment authorization from the involved issuer; and

upon obtaining the payment authorization, settling payment of the invoice between the involved issuer and acquirer,

wherein the transaction processing system comprises a variable pricing matrix, which calculates one or more transaction fees based on a set of pre-negotiated terms and conditions agreed to by at least the issuer and the acquirer.

2. The method of claim 1 further comprising:

upon settling payment of the invoices, updating the buyer accounts and the seller accounts.

3. A method of conducting a transaction between a buyer and a seller, the method comprising:

receiving an electronic invoice or an instruction to create the electronic invoice from the seller at a transaction processing system;

transmitting a payment instruction from the transaction processing system to the buyer;

receiving approval from the buyer in response to the sent payment instruction at the transaction processing system;

after receiving the approval from the buyer, sending an authorization request to an issuer;

after sending the authorization request, receiving an authorization response from the issuer at the transaction processing system, wherein funds are thereafter transferred from the issuer to an acquirer using a payment processing network; and

updating a status of the electronic invoice with information regarding whether the invoice has been settled or declined.

4. The method of claim 3 wherein the transaction processing system comprises a payment manager that keeps track of the status of each invoice or payment transaction.

5. The method of claim 3 wherein the payment instruction is created based on terms and conditions that were previously negotiated by the buyer and the seller.

6. The method of claim 3 wherein after receiving approval from the buyer, goods are shipped from the seller to the buyer.

7. The method of claim 3 wherein the transaction processing system is associated with a credit card association.

8. The method of claim 3 wherein the payment instruction is sent in accordance with terms or conditions set by the buyer, the seller, or the buyer and the seller.

9. The method of claim 3 wherein the transaction processing system provides for a variable fee schedule.

10. The method of claim 3 wherein the transaction processing system provides for a fee, depending on a value of the transaction conducted between the buyer and the seller.

26. The method of claim 3 wherein the payment processing network is a data transport and processing network.

27. The method of claim 26 wherein the method further comprises creating and transmitting multiple payment instructions for the electronic invoice.

28. The method of claim 26 wherein the transaction processing system comprises an invoice preprocessor and a payment manager.

11. A system for conducting a transaction between a buyer and a seller, the system comprising:

a transaction processing system, wherein the transaction processing system is in communication with a buyer and a seller, and wherein the transaction processing system comprises an invoice preprocessor and a payment manager; and

a data transport and processing network coupled to the transaction processing system, wherein the data transport and processing network is in communication with an issuer,

wherein the transaction processing system comprises an issuer pricing engine, wherein the issuer pricing engine is configured to determine a transaction fee associated with an invoice associated with the transaction, the issuer retaining at least a portion of the transaction fee.

12. The system of claim 11 wherein the data transport and processing network facilitates interaction between various buyers and sellers.

13. The system of claim 11 wherein the transaction processing system includes an authorization and settlement interface.

14. The system of claim 11 wherein the transaction processing system further comprises a database including invoices with terms and conditions.

15. The system of claim 11 wherein the transaction processing system comprises a database comprising a table including transaction fees that are assessed depending upon terms and conditions in invoices.

16. The system of claim 11 wherein the transaction processing system comprises a variable pricing matrix, which calculates one or more transaction fees based on a set of pre-negotiated terms and conditions agreed to by at least the issuer and an acquirer associated with the seller.

17. The system of claim 11 wherein the transaction processing system creates or receives invoices from sellers.

18. The system of claim 11 wherein the transaction processing system is configured to create a settlement file for the transaction between the buyer and the seller.

19. The system of claim 11 wherein the transaction processing system is configured to create a settlement file for the transaction between the buyer and the seller and wherein the settlement file includes information regarding the cost of goods sold.

20. The system of claim 12 wherein the transaction processing system includes an authorization and settlement interface.

21. The system of claim 20 wherein the transaction processing system further comprises a database including invoices with terms and conditions.

22. The system of claim 21 wherein the transaction processing system comprises a database comprising a table including transaction fees that are assessed depending upon terms and conditions in invoices.

23. The system of claim 22 wherein the transaction processing system comprises a variable pricing matrix, which calculates one or more transaction fees based on a set of pre-negotiated terms and conditions agreed to by at least the issuer and an acquirer associated with the seller.

24. The system of claim 23 wherein the transaction processing system creates or receives invoices from sellers.

25. The system of claim 24 wherein the settlement file includes information regarding the cost of goods sold.