Interbank process

• US 7,844,537 B2
• Filed: 09/06/2001
• Issued: 11/30/2010
• Est. Priority Date: 09/06/2000
• Status: Active Grant

• Current Assignee: Edeposit Corp.
• Original Assignee: Edeposit Corp.
• Inventors: Understein, Norman
• Primary Examiner(s): KAZIMI, HANI M
• Application Number:
  US10/363,160
• Publication Number:
  US 20040015436A1
• Time in Patent Office: 3,372 Days
• Field of Search: 705 35- 44, 705 64- 67, 705 72- 79, 705/26, 705/37, 902 1- 4, 235379-381
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

In transactions between a consumer and a merchant where a merchant requires a deposit for participation, a method and system are provided for intermediating the transaction (10). The system enables a consumer to secure the required deposit amount for the transaction with funds deposited in one of a bank account (14) or a special deposit account (16). Fees are generated based on a percentage of the deposit amount secured with the deposited funds and/or by providing an interest rate on funds deposited in the special deposit account (16) with a fixed spread from a bank interest rate. The system assures merchants that deposit funds have been reserved for a particular transaction, and enables consumers to participate in such transactions without requiring an actual transfer of funds.

Claims

1. A method of intermediating a transaction between a consumer and a merchant involving an exchange of monetary funds, the method comprising:

(a) receiving subscriptions from merchants and registering the merchants as member merchants;

(b) providing a vehicle for the member merchants to require a deposit amount for the transaction; and

(c) enabling a consumer to secure the deposit amount for the transaction with funds deposited in one of a bank account or a special deposit account without requiring the consumer to provide the funds to the merchant or to another account,

wherein step (c) is practiced by placing a hold on the deposited funds in an amount corresponding to the deposit amount, wherein the deposited funds placed on hold are unavailable to the consumer, and wherein upon completion of the transaction, the hold on the deposited funds is released, and the released funds are again available to the consumer.

2. A method according to claim 1, further comprising the step of generating fees based on a percentage of the deposit amount secured with the deposited funds.

3. A method according to claim 1, further comprising the step of generating fees by providing an interest rate on funds deposited in the special deposit account with a fixed spread from a bank interest rate.

4. A method according to claim 1, further comprising the step of receiving subscriptions from banks and registering the banks as member banks, wherein step (c) is practiced by linking the consumer'"'"'s bank account and reserving an amount of funds in the consumer'"'"'s bank account corresponding to the deposit amount.

5. A method according to claim 4, wherein the consumer'"'"'s bank account comprises at least one of a checking account, savings account, credit card, or letter of credit.

6. A method according to claim 1, wherein upon completion of the transaction, the deposited funds placed on hold are transferred according to preset consumer preferences.

7. A method according to claim 1, wherein step (c) is practiced by providing an online link to a transaction intermediary through the consumer'"'"'s existing bank account.

8. A system for intermediating a transaction between a consumer and a merchant involving an exchange of monetary funds, the system comprising:

means for receiving subscriptions from merchants and registering the merchants as member merchants;

means for providing a vehicle for the member merchants to require a deposit amount for the transaction; and

means for enabling a consumer to secure the deposit amount for the transaction with funds deposited in one of a bank account or a special deposit account without requiring the consumer to provide the funds to the merchant or to another account,

wherein the means for enabling the consumer to secure the deposit amount comprises means for placing a hold on the deposited funds in an amount corresponding to the deposit amount, wherein the deposited funds placed on hold are unavailable to the consumer, and wherein upon completion of the transaction, the hold on the deposited funds is released, and the released funds are again available to the consumer.