Facilitating electronic commerce transactions through binding offers

• US 7,937,312 B1
• Filed: 10/06/1998
• Issued: 05/03/2011
• Est. Priority Date: 04/26/1995
• Status: Expired due to Fees

• Current Assignee: eBay Inc.
• Original Assignee: eBay Inc.
• Inventors: Woolston, Thomas G.
• Primary Examiner(s): Kalinowski; Alexander
• Assistant Examiner(s): JOHNSON, GREGORY L
• Application Number:
  US09/166,779
• Time in Patent Office: 4,592 Days
• Field of Search: 705/26, 705/27, 705/35, 705/37, 705/39
• US Class Current: 705/37
• 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 20/20 Point-of-sale [POS] network systems
• 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 30/02 Marketing; Price estimation or determination; Fundraising
• 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 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/0623 Item investigation
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A computer system is used to facilitate a transaction between a seller and at least one buyer by receiving at the computer system a binding offer to sell an item. The binding offer to sell, which includes at least a binding sale price, is output to a plurality of potential buyers. A binding acceptance of the binding offer by at least one buyer is received at the computer system. The received binding acceptance includes payment information sufficient to authorize payment of the sale price to a third-party, for example, a trusted intermediary independent of the seller and buyer who keeps the buyer'"'"'s payment information confidential. In one embodiment, the buyer may elect to take delivery of the item or may elect to re-post the item for sale or auction. In another embodiment, a potential buyer may respond to a binding offer for sale by making a binding counteroffer, which the seller may then accept or reject.

Claims

1. A method for using a computer system, operating on a communications network comprising one or more central nodes communicably coupled to a plurality of user nodes corresponding to one or both of buyers and sellers, to facilitate a transaction between a seller and at least one buyer, the method performed by a computer system at a central node comprising:

hosting an electronic marketplace having an operably coupled transaction processor for processing transactions between buyers and sellers;

operating the electronic marketplace under a legal framework that imposes requirements on sellers of items, the legal framework including requirements that an item posted for sale is available for physical and legal ownership transfer to a buyer and that the seller is legally required to convey physical and legal ownership of the item if the buyer meets one or more seller-specified conditions of sale including a sale price;

receiving information from a seller corresponding to an item to be sold, the received information including a data record corresponding to the item to be sold, the data record including a description of the item to be sold, a sale price for the item, and a header including seller-specific identification information, the received data record representing a binding offer by the seller to sell the item;

verifying authenticity of the received data record based at least in part on the received seller-specific identification information;

upon successfully authenticating the received data record;

(i) outputting the binding offer to sell to a plurality of potential buyers;

(ii) receiving acceptance of said binding offer to sell said item from a first buyer, said first buyer tendering acceptance by providing payment information, said acceptance giving rise to a legal obligation by the seller to convey physical and legal ownership to said first buyer;

(iii) temporarily locking the data record corresponding to the item;

(iv) rejecting another acceptance of the binding offer by a second buyer while processing acceptance from, and payment by, the first buyer;

(v) processing the purchase transaction using the first buyer'"'"'s provided payment information and the transaction processor operably coupled to the electronic marketplace; and

(vi) unlocking and updating the data record corresponding to the item to indicate ownership of the item by the first buyer.

2. The method of claim 1 wherein the received payment information comprises information identifying an account maintained by or on behalf of an entity operating the computer system.

3. The method of claim 1 wherein the received payment information identifies a credit card account.

4. The method of claim 1 further comprising:

notifying the seller of the acceptance of the binding offer to sell the item.

5. The method of claim 4 further comprising:

withholding payment from the seller until delivery to the first buyer is assured.

6. The method of claim 4 further comprising:

processing the payment information to collect funds for the item;

deducting a predetermined commission for sale of the item; and

transferring a remainder of the funds to the seller as payment for the item.

7. The method of claim 4 further comprising:

processing the payment information to collect funds in payment for the item;

depositing the funds into an escrow account; and

withholding payment of the funds in the escrow account to the seller until delivery to the first buyer is assured.

8. The method of claim 1 further comprising:

requiring performance by the seller of terms and conditions associated with the binding offer to sell before providing payment to the seller.

9. The method of claim 1 further comprising policing the electronic marketplace to selectively revoke access to the electronic marketplace by misbehaving users.

10. The method of claim 9 further comprising revoking access to the electronic marketplace by a seller that has failed to comply with one or more requirements of the legal framework under which the electronic marketplace is operated.

11. The method of claim 9 further comprising revoking access to the electronic marketplace by an accepting buyer that has failed to provide payment information sufficient to facilitate payment for purchase of the item.

12. A method for using a computer system, operating on a communications network comprising one or more central nodes communicably coupled to a plurality of user nodes corresponding to one or both of buyers and sellers, to facilitate a transaction between a seller and at least one buyer, the method performed by a computer system at a central node comprising:

hosting an electronic marketplace having an operably coupled transaction processor for processing transactions between buyers and sellers;

operating the electronic marketplace under a legal framework that imposes requirements on sellers of items, the legal framework including requirements that an item posted for sale is available for physical and legal ownership transfer to a buyer and that the seller is legally required to convey physical and legal ownership of the item if the buyer meets one or more seller-specified conditions of sale including a sale price;

receiving information from a seller corresponding to an item to be sold, the received information including a data record corresponding to the item to be sold, the data record including a description of the item to be sold, a sale price for the item, and a header including seller-specific identification information, the received data record representing a binding offer by the seller to sell the item;

verifying authenticity of the received data record based at least in part on the received seller-specific identification information;

upon successfully authenticating the received data record;

(i) presenting to a plurality of potential buyers the seller'"'"'s binding offer to sell the item, the presented binding offer to sell including at least a binding offer price;

(ii) receiving from a first buyer a binding acceptance of the binding offer, the received binding acceptance including payment information sufficient to authorize payment of the offer price to a third-party, said acceptance giving rise to a legal obligation by the seller to convey physical and legal ownership to said first buyer;

(iii) temporarily locking the data record corresponding to the item;

(iv) rejecting another acceptance of the binding offer by a second buyer while processing acceptance from, and payment by, the first buyer;

(v) processing the purchase transaction using the received payment information and the transaction processor operably coupled to the electronic marketplace; and

(vi) unlocking and updating the data record corresponding to the item to indicate ownership of the item by the first buyer.

13. The method of claim 12 wherein the payment information sufficient to enable payment to the third-party comprises at least an account identifier, the possession of which provides authorization to debit the identified account by a predetermined amount.

14. The method of claim 12 further comprising using the received payment information to enable a transaction fee to be paid to the third-party.

15. The method of claim 14 wherein the transaction fee is independent of the binding offer price.

16. The method of claim 14 wherein the transaction fee is related to the binding offer price.

17. The method of claim 16 wherein the transaction fee is a percentage of the binding offer price.

18. The method of claim 12 wherein the third-party is an entity by whom, or on whose behalf, the computer system at the central node is operated.

19. The method of claim 12 wherein the third-party is independent of the seller.

20. The method of claim 12 further comprising receiving, by the third party, payment from the first buyer using the received payment information.

21. The method of claim 20 further comprising providing payment from the third-party to the seller.

22. The method of claim 12 further comprising charging the seller a transaction fee.

23. The method of claim 12 further comprising keeping the first buyer'"'"'s received payment information confidential from the seller.

24. The method of claim 12 further comprising selectively allowing the first buyer to take delivery of the item or to post the item for re-sale.

25. The method of claim 24 wherein, if the first buyer elects to post the item for re-sale, the third-party maintains possession of the item pending the re-sale.

26. The method of claim 24 wherein posting the item for re-sale comprises offering the item for auction.

27. The method of claim 24 wherein posting the item for re-sale comprises making another binding offer to sell the item.

28. The method of claim 12 further comprising allowing the first buyer to post the item for re-sale or auction without taking delivery of the item.

29. The method of claim 28 further comprising receiving from the first buyer a new offer price or a reserve price.

30. The method of claim 28 further comprising posting the item for re-sale or auction.

31. The method of claim 12 further comprising, prior to presenting the binding offer to the plurality of potential buyers, receiving from the seller an identifier associated with the item for sale.

32. The method of claim 31 further comprising using the received identifier as an index into a database to retrieve a data record descriptive of the item.

33. The method of claim 32 wherein the data record was previously created based on a prior transaction.

34. The method of claim 31 wherein the database was developed in a first instance by an entity independent of the third-party.

35. The method of claim 31 wherein the database is maintained by the third-party based on transactions facilitated by the computer system.

36. The method of claim 12 further comprising policing the electronic marketplace to selectively revoke access to the electronic marketplace by misbehaving users.

37. The method of claim 36 further comprising revoking access to the electronic marketplace by a seller that has failed to comply with one or more requirements of the legal framework under which the electronic marketplace is operated.

38. The method of claim 36 further comprising revoking access to the electronic marketplace by an accepting buyer that has failed to provide payment information sufficient to facilitate payment for purchase of the item.

39. A method for using a computer system, operating on a communications network comprising one or more central nodes communicably coupled to a plurality of user nodes corresponding to one or both of buyers and sellers, to facilitate a transaction between a seller and at least one buyer, the method performed by a computer system at a central node comprising:

hosting an electronic marketplace having an operably coupled transaction processor for processing transactions between buyers and sellers;

operating the electronic marketplace under a legal framework that imposes requirements on sellers of items, the legal framework including requirements that an item posted for sale is available for physical and legal ownership transfer to a buyer and that the seller is legally required to convey physical and legal ownership of the item if the buyer meets one or more seller-specified conditions of sale including a sale price;

receiving information from a seller corresponding to an item to be sold, the received information including a data record corresponding to the item to be sold, the data record including a description of the item to be sold, a sale price for the item, and a header including seller-specific identification information, the received data record representing a binding offer by the seller to sell the item;

verifying authenticity of the received data record based at least in part on the received seller-specific identification information;

upon successfully authenticating the received data record;

(i) presenting to a plurality of potential buyers the seller'"'"'s binding offer to sell the item, the presented binding offer to sell including at least a binding offer price;

(ii) receiving from a first buyer a binding acceptance of the binding offer, the received binding acceptance including payment information sufficient to authorize payment of the offer price to a third-party, said acceptance giving rise to a legal obligation by the seller to convey physical and legal ownership to said first buyer;

(iii) temporarily locking the data record corresponding to the item;

(iv) rejecting another acceptance of the binding offer by a second buyer while processing acceptance from, and payment by, the first buyer;

(v) processing the purchase transaction using the transaction processor operably coupled to the electronic marketplace, said processing including receiving payment for the item from the first buyer by the third-party and making payment for the item from the third-party to the seller while maintaining the first buyer'"'"'s payment information in confidence from the seller; and

(vi) unlocking and updating the data record corresponding to the item to indicate ownership of the item by the first buyer.

40. The method of claim 39 wherein the third-party comprises a trusted intermediary.

41. The method of claim 39 wherein the third-party is independent of the first buyer and of the seller.

42. The method of claim 39 further comprising charging by the third-party a transaction fee for handling the sale of the item.

43. The method of claim 42 wherein the transaction fee is charged to the seller.

44. The method of claim 42 wherein the transaction fee is independent of the offer price.

45. The method of claim 42 wherein the transaction fee is related to the offer price.

46. The method of claim 45 wherein the transaction fee is a percentage of the sales price.

47. The method of claim 39 further comprising allowing the first buyer to post the item for re-sale or auction without taking delivery of the item.

48. The method of claim 39 further comprising policing the electronic marketplace to selectively revoke access to the electronic marketplace by misbehaving users.

49. The method of claim 48 further comprising revoking access to the electronic marketplace by a seller that has failed to comply with one or more requirements of the legal framework under which the electronic marketplace is operated.

50. The method of claim 48 further comprising revoking access to the electronic marketplace by an accepting buyer that has failed to provide payment information sufficient to facilitate payment for purchase of the item.

51. A method for using a computer system, operating on a communications network comprising one or more central nodes communicably coupled to a plurality of user nodes corresponding to one or both of buyers and sellers, to facilitate a transaction between a seller and at least one buyer, the method performed by a computer system at a central node comprising:

hosting an electronic marketplace having an operably coupled transaction processor for processing transactions between buyers and sellers;

operating the electronic marketplace under a legal framework that imposes requirements on sellers of items, the legal framework including requirements that an item posted for sale is available for physical and legal ownership transfer to a buyer and that the seller is legally required to convey physical and legal ownership of the item if the buyer meets one or more seller-specified conditions of sale including a sale price;

receiving information from a seller corresponding to an item to be sold, the received information including a data record corresponding to the item to be sold, the data record including a description of the item to be sold, a sale price for the item, and a header including seller-specific identification information, the received data record representing a binding offer by the seller to sell the item;

verifying authenticity of the received data record based at least in part on the received seller-specific identification information;

upon successfully authenticating the received data record;

(i) presenting to a plurality of potential buyers the seller'"'"'s binding offer to sell an item, the presented binding offer to sell including at least a binding offer price;

(ii) receiving from a first buyer a binding acceptance of the binding offer, the received binding acceptance including payment information sufficient to authorize payment of the offer price to a third-party, said acceptance giving rise to a legal obligation by the seller to convey physical and legal ownership to said first buyer;

(iii) temporarily locking the data record corresponding to the item;

(iv) rejecting another acceptance of the binding offer by a second buyer while processing acceptance from, and payment by, the first buyer;

(v) processing the purchase transaction using the transaction processor operably coupled to the electronic marketplace

(vi) unlocking and updating the data record corresponding to the item to indicate ownership of the item by the first buyer; and

(vii) allowing the first buyer to post the item for re-sale or auction without taking delivery of the item.

52. The method of claim 51 further comprising policing the electronic marketplace to selectively revoke access to the electronic marketplace by misbehaving users.

53. The method of claim 52 further comprising revoking access to the electronic marketplace by a seller that has failed to comply with one or more requirements of the legal framework under which the electronic marketplace is operated.

54. The method of claim 52 further comprising revoking access to the electronic marketplace by an accepting buyer that has failed to provide payment information sufficient to facilitate payment for purchase of the item.

55. A method for using a computer system, operating on a communications network comprising one or more central nodes communicably coupled to a plurality of user nodes corresponding to one or both of buyers and sellers, to facilitate a transaction between a seller and at least one buyer, the method performed by a computer system at a central node comprising:

hosting an electronic marketplace having an operably coupled transaction processor for processing transactions between buyers and sellers;

operating the electronic marketplace under a legal framework that imposes requirements on sellers of items, the legal framework including requirements that an item posted for sale is available for physical and legal ownership transfer to a buyer and that the seller is legally required to convey physical and legal ownership of the item if the buyer meets one or more seller-specified conditions of sale including a sale price;

receiving information from a seller corresponding to an item to be sold, the received information including a data record corresponding to the item to be sold, the data record including a description of the item to be sold, a sale price for the item, and a header including seller-specific identification information, the received data record representing a binding offer by the seller to sell the item;

verifying authenticity of the received data record based at least in part on the received seller-specific identification information;

upon successfully authenticating the received data record;

(i) presenting to a plurality of potential buyers the seller'"'"'s binding offer to sell the item, the presented binding offer to sell including at least a binding offer price;

(ii) receiving from a first buyer a binding counteroffer for the item, the binding counteroffer including at least a binding counteroffer price for the item, the received binding counteroffer including payment information sufficient to authorize payment of the counteroffer price;

(iii) receiving from the seller an indication of acceptance or non-acceptance of the first buyer'"'"'s counteroffer, said acceptance giving rise to a legal obligation by the seller to convey physical and legal ownership to said first buyer; and

(iv) upon the seller accepting the first buyer'"'"'s counteroffer, temporarily locking the data record corresponding to the item;

(v) rejecting another acceptance of the binding offer by a second buyer while processing acceptance from, and payment by, the first buyer;

(vi) processing the purchase transaction at the counteroffer price using the transaction processor operably coupled to the electronic marketplace, unlocking the data record corresponding to the item, and updating the data record to indicate ownership by the first buyer.

56. The method of claim 55 wherein the binding counteroffer is subject to an expiration date.

57. The method of claim 56 wherein the first buyer specifies the expiration date.

58. The method of claim 55 wherein the first buyer'"'"'s counteroffer is received by a third-party that notifies the seller of the counteroffer'"'"'s existence.

59. The method of claim 55 wherein the seller may elect to accept or reject the binding counteroffer.

60. The method of claim 55 wherein the computer system at the central node is operated by or on behalf of a third-party that is independent of the seller and the first buyer.

61. The method of claim 60 wherein the third-party comprises a trusted intermediary.

62. The method of claim 60 wherein the third-party maintains the first buyer'"'"'s payment information in confidence from the seller.

63. The method of claim 55 wherein payment of the counteroffer price is made directly from the first buyer to the seller.

64. The method of claim 55 wherein payment of the counteroffer price is made indirectly from the first buyer to the seller through a third-party.

65. The method of claim 55 further comprising policing the electronic marketplace to selectively revoke access to the electronic marketplace by misbehaving users.

66. The method of claim 65 further comprising revoking access to the electronic marketplace by a seller that has failed to comply with one or more requirements of the legal framework under which the electronic marketplace is operated.

67. The method of claim 65 further comprising revoking access to the electronic marketplace by an accepting buyer that has failed to provide payment information sufficient to facilitate payment for purchase of the item.