System and method for selection of payment systems from a payment system directory to process a transaction

• US 7,908,215 B2
• Filed: 12/04/2003
• Issued: 03/15/2011
• Est. Priority Date: 06/30/2003
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Schwarz, Bill, Edelen, Jeffrey Alan, Bishop, Fred, Armes, David
• Primary Examiner(s): CHEUNG, MARY DA ZHI WANG
• Application Number:
  US10/728,279
• Publication Number:
  US 20040267643A1
• Time in Patent Office: 2,658 Days
• Field of Search: 705/35, 705 39- 40, 705 42- 44, 705 75- 79, 725/5, 707/999, 715/210
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

Dynamically enabling and facilitating businesses or other entities to locate and transact with payment systems for the purpose of processing payments. A customer interacts with a supplier of an item (e.g., goods or services), selects an item for purchase, and provides the supplier with payment criteria. The supplier queries a payment system directory to locate candidate payment systems for the transaction. The supplier then interacts directly with one or more of the payment systems to partially or fully process payment for the transaction. Alternatively, the supplier interacts with a gateway service, which queries a payment system directory to locate candidate payment systems and then interacts with one or more of the payment systems to process payment for the transaction.

Claims

1. A method for identifying payment systems for facilitating the processing of payments comprising:

receiving, by a computer based system for identifying the payment systems, payment criteria, wherein the payment criteria is transmitted by a customer to the computer based system;

querying, by the computer based system, a directory of payment systems in an attempt to locate a payment system to process the transaction based at least in part upon the received payment criteria, wherein the querying is not performed by an acquiring bank; and

returning, by the computer based system, an identification of the located payment system to process the transaction, wherein the returned identification includes rating information indicating the amount of matching between the located payment system and the payment criteria.

2. The method of claim 1, further including interacting with the located payment system to at least partially process the transaction using the payment criteria.

3. The method of claim 2, wherein the querying includes selecting the payment system based upon attributes of the transaction.

4. The method of claim 2, wherein the querying includes selecting the payment system based upon one or more of the following:

a supplier identity;

a customer identity;

a payment instrument selected by the customer;

a strength of an authentication method for the customer;

an amount of the purchase;

a type of item being purchased;

a delivery channel for the item;

a supplier risk tolerance;

desired payment terms;

an availability of the payment systems;

an optimal price for the item;

optimal response attributes;

contractual obligations with respect to transaction distribution arrangements for the item;

specialists that handle specific classes or types of goods or services;

a payment instrument;

a payment currency;

taxes related to payment of the item;

or fees associated with payment of the item.

5. The method of claim 2, wherein the interacting includes processing the transaction using a transaction account that includes a financial component or a non-financial component.

6. The method of claim 1, further including authenticating an identification of the customer.

7. The method of claim 1, further including negotiating with the payment system a price for the item or associated fees.

8. The method of claim 1, further including permitting the customer to decline the payment system.

9. The method of claim 1, further including identifying the payment system by corresponding routing information.

10. A computer based system, comprising:

a computer network communicating with a memory;

the memory communicating with a processor; and

the processor, when executing a computer program for identifying payment systems for facilitating the processing of payments by a gateway service, is configured to;

receive payment criteria, wherein the payment criteria is transmitted by a customer to the computer based system;

query a directory of payment systems in an attempt to locate a payment system to process the transaction based at least in part upon the received payment criteria, wherein the querying is not performed by an acquiring bank; and

return an identification of the located payment system to process the transaction, wherein the returned identification includes rating information indicating the amount of matching between the located payment system and the payment criteria.

11. The computer based system of claim 10, further configured to interact with the located payment system to at least partially process the transaction according to the payment criteria.

12. The computer based system of claim 11, wherein the query includes selecting the payment system based upon attributes of the transaction.

13. The computer based system of claim 11, wherein the query includes selecting the payment system based upon one or more of the following:

a supplier identity;

a customer identity;

a payment instrument selected by the customer;

a strength of an authentication method for the customer;

an amount of the purchase;

a type of item being purchased;

a delivery channel for the item;

a supplier risk tolerance;

desired payment terms;

an availability of the payment systems;

an optimal price for the item;

optimal response attributes;

contractual obligations with respect to transaction distribution arrangements for the item;

specialists that handle specific classes or types of goods or services;

a payment instrument;

a payment currency;

taxes related to payment of the item;

or fees associated with payment of the item.

14. The computer based system of claim 11, wherein the interacting step includes processing the transaction using a transaction account that includes a financial component or a non-financial component.

15. The computer based system of claim 10, further configured to enter into a contract with the payment system for processing of the transaction.

16. The computer based system of claim 10, further configured to authenticate an identification of the customer.

17. The computer based system of claim 10, further configured to negotiate with the payment system a price for the item or associated fees.

18. The computer based system of claim 10, further configured to permit the customer to decline the payment system.

19. A non-transitory computer-readable medium having stored thereon a plurality of instructions for identifying the payment systems, the plurality of instructions, when executed by a processor, are configured to cause the processor to perform operations comprising:

receiving payment criteria, wherein the payment criteria is transmitted by a customer to the supplier;

querying a directory of payment systems in an attempt to locate a payment system to process the transaction based at least in part upon the received payment criteria, wherein the querying is not performed by an acquiring bank; and

returning an identification of the located payment system, if any, to process the transaction, wherein the returned identification includes rating information indicating the amount of matching between the located payment system and the payment criteria.

20. The medium of claim 19, wherein the plurality of instructions further include selecting the payment system based upon preferences of the customer.