Conducting commerce between individuals

• US 7,921,038 B2
• Filed: 08/12/2008
• Issued: 04/05/2011
• Est. Priority Date: 02/19/1999
• Status: Expired due to Fees

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Matsuda, Paul, Wilk, Tracy L., Perry, Sarah E.
• Primary Examiner(s): Zeender; F. Ryan
• Assistant Examiner(s): ALMATRAHI, FARIS S
• Application Number:
  US12/190,130
• Publication Number:
  US 20090037304A1
• Time in Patent Office: 966 Days
• Field of Search: None
• US Class Current: 705/17
• 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 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• 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 20/403 Solvency checks
• CPC Class Codes: G06Q 30/0241 Advertisements
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/08 Auctions
• 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 40/12 Accounting

Abstract

Receiving payment includes the establishment, at a first server, a transaction record including information identifying a payment amount, a first account to be credited by the payment amount, and a second account to be debited by a debit amount. A financial authorization network performs an authorization analysis on at least the second account. The second account is debited if the authorization analysis is successfully completed, and the first account is directly credited by the payment amount to conclude the transaction. Risk analysis may be performed for each individual. Payment is integrated with shipping.

Claims

1. A method for facilitating a transaction between a first individual having a first payment card and a second individual having a second payment card, the method comprising:

receiving over a network at a transaction server information regarding a first account associated with said first payment card, information regarding a second account associated with said second payment card, and information identifying a payment amount;

receiving, at said transaction server, information concerning said first individual, said first individual not being a qualified merchant to accept payments;

establishing, at said transaction server, a transaction record for said transaction, said transaction record including said payment amount, said first account to be credited by said payment amount, and said second account to be debited by a debit amount;

presenting, by said transaction server, a set of payment rules to said first individual, said set of payment rules stating terms under which payment may be credited to said first account associated with said first payment card from said second account associated with said second payment card;

receiving at said transaction server, an indication of agreement to said set of payment rules from said first individual;

debiting said second account by having said transaction server send a debit message to a financial network;

directly crediting said first account by said payment amount, by having said transaction server send a credit message to said financial network, whereby said first individual is allowed to receive payment to said first account from said second individual using said second account; and

performing risk analysis by said transaction server upon said first account using said first account information and said first individual information, and reaching a positive result allowing said steps of debiting and crediting to occur.

2. The method of claim 1, further comprising the step of registering said first individual, said step comprising:

generating an account identifier if said first account is valid; and

communicating said account identifier to said first individual.

3. The method of claim 2, wherein said step of communicating said account identifier to said first individual comprises generating an electronic mail message containing said account identifier and transmitting said electronic mail message to said first individual over the Internet.

4. The method of claim 2 further comprising the step of registering said second individual, said step comprising:

receiving, at said transaction server, information concerning said second individual;

generating an account identifier if said second account is valid; and

communicating said account identifier to said second individual.

5. The method of claim 1 further comprising:

performing, using a financial network, an authorization analysis on said second account;

debiting said second account only if said authorization analysis is successfully completed.

6. The method of claim 1, further comprising the steps of:

after said step of debiting said second account, establishing an escrow account to hold said debit amount debited from said second account;

holding said debit amount until an escrow period has passed without a dispute, as determined by said transaction server; and

performing said step of directly crediting said first account after said escrow period has passed.

7. The method of claim 1 further comprising:

establishing a shipping price, wherein said debit amount is equal to said shipping price plus said payment amount; and

directly crediting said shipping price to a shipping account.

8. The method of claim 1 further comprising:

verifying receipt of said indication of agreement by transaction server, said verifying thus allowing said steps of debiting and directly crediting to occur.

9. A method as recited in claim 1 wherein said first account is a credit card account.

10. A method as recited in claim 1 wherein said second account is a credit card account.

11. A method as recited in claim 1 wherein said first account is a credit card account, and wherein said second account is a credit card account.

12. A method for sending money from a second individual to a first individual using a transaction server, said method comprising:

receiving a request from said second individual to send money to said first individual identified by contact information, said first individual not being a qualified merchant to accept payments;

receiving, by a transaction server, from said second individual an indication of an amount to send and account information identifying a second account associated with said second individual;

sending a confirmation message to said first individual using said contact information, said confirmation message being sent by said transaction server regarding said sending of money from said second individual to said first individual, said confirmation message being sent before said sending of money;

receiving, by said transaction server, from said first individual account information regarding a first account associated with said first individual and information concerning said first individual;

presenting, by said transaction server, a set of payment rules to said first individual regarding terms under which payment may be credited to said first account from said second account;

receiving, from said first individual, an indication of agreement to said set of payment rules at said transaction server;

directing, by said transaction server, that said second account associated with said second individual be debited by said amount;

directing, by said transaction server, that said first account associated with said first individual be credited by said amount, whereby said first individual is allowed to receive payment to said first account from said second individual using said second account; and

performing risk analysis by said transaction server upon said first account using said first account information and said first individual information, and reaching a positive result allowing said steps of debiting and crediting to occur.

13. A method as recited in claim 12 wherein said contact information of said first individual is an e-mail address.

14. A method as recited in claim 12 wherein said confirmation message sent to said first individual is an e-mail message.

15. A method as recited in claim 12 wherein said contact information of said first individual is an e-mail address and said confirmation message sent to said first individual is an e-mail message.

16. A method as recited in claim 12 wherein said first account is a payment card account and said second account is a payment card account.

17. A method as recited in claim 12 wherein said confirmation message includes a transaction identifier used to reference said sending of money.

18. A method as recited in claim 12 further comprising:

registering said second individual with said transaction server; and

registering said first individual with said transaction server.

19. A method as recited in claim 12 further comprising:

verifying, by said transaction server, receipt of said indication of agreement from said first individual.

20. A method for requesting money by a first individual of a second individual using a transaction server, said method comprising:

receiving, at a transaction server, a request from said first individual to request money of said second individual identified by contact information, said first individual not being a qualified merchant to accept payments;

receiving, at a transaction server, from said first individual an indication of an amount to request, account information regarding a first account associated with said first individual and information concerning said first individual;

presenting, by said transaction server, a set of payment rules to said first individual regarding terms under which payment may be credited to said first account from said second account;

receiving, from said first individual, an indication of agreement to said set of payment rules at said transaction server;

sending a confirmation message to said second individual using said contact information, said confirmation message being sent by said transaction server regarding said requesting of money by said first individual of said second individual, said confirmation message being sent before said money is sent;

receiving, at a transaction server, from said second individual account information identifying a second account associated with said second individual;

directing, by said transaction server, that said second account associated with said second individual be debited by said amount;

directing, by said transaction server, that said first account associated with said first individual be credited by said amount, whereby said first individual is allowed to receive payment to said first account from said second individual using said second account; and

performing risk analysis by said transaction server upon said first account using said first account information and said first individual information, and reaching a positive result allowing said steps of debiting and crediting to occur.

21. A method as recited in claim 20 wherein said contact information of said second individual is an e-mail address.

22. A method as recited in claim 20 wherein said confirmation message sent to said second individual is an e-mail message.

23. A method as recited in claim 20 wherein said contact information of said second individual is an e-mail address and said confirmation message sent to said second individual is an e-mail message.

24. A method as recited in claim 20 wherein said second account is a payment card account and said first account is a payment card account.

25. A method as recited in claim 20 wherein said confirmation message includes a transaction identifier used to reference said request for money.

26. A method as recited in claim 20 further comprising:

registering said first individual with said transaction server; and

registering said second individual with said transaction server.

27. A method as recited in claim 20 further comprising:

verifying, by said transaction server, receipt of said indication of agreement from said first individual, said verifying thus allowing said steps of directing to occur.

28. A method as recited in claim 20 further comprising:

registering said first individual with said transaction server; and

registering said second individual with said transaction server.

29. A method for transferring funds between a first individual and a second individual, the method comprising:

receiving over a network at a transaction server information from said first individual regarding a first individual'"'"'s account, information concerning said first individual, information from said second individual identifying a second individual'"'"'s account, and a payment amount to be transferred from said second individual to said first individual;

presenting, by said transaction server, a set of payment rules to said first individual regarding terms under which payment may be credited to said first account from said second account, said first individual not being a qualified merchant to accept payments;

receiving, by said transaction server, an indication of agreement to said set of payment rules from said first individual;

identifying a first payment card account associated with said first account;

identifying a second payment card account associated with said second account;

directing, by said transaction server, that said second individual'"'"'s second payment card account be debited by said payment amount;

directing, by said transaction server, that said first individual'"'"'s first payment card account be credited, whereby said first individual is allowed to receive payment to said first payment card account from said second individual using said second payment card account of said second individual; and

performing risk analysis by said transaction server upon said first account using said first account information and said first individual information, and reaching a positive result allowing said steps of debiting and crediting to occur.

30. A method as recited in claim 29 further comprising:

directing that said first payment card account number be credited by said payment amount.

31. A method as recited in claim 29 further comprising:

contacting, by said transaction server, a financial network;

directing, by said transaction server, that said financial network debit said second payment card account number; and

directing, by said transaction server, that said financial network credit said first payment card account number.

32. A method as recited in claim 29 wherein said first payment card account is a credit card account.

33. A method as recited in claim 29 wherein said second payment card account is a credit card account.

34. A method as recited in claim 29 wherein said first payment card account is a credit card account, and wherein said second payment card account is a credit card account.

35. A method as recited in claim 29 further comprising:

verifying, by said transaction server, receipt of said indication of agreement from said first individual, said verifying thus allowing said steps of directing to occur.