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

• US 8,090,655 B2
• Filed: 02/03/2011
• Issued: 01/03/2012
• Est. Priority Date: 06/30/2003
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Edelen, Jeffrey Alan, Bishop, Fred, Armes, David, Schwarz, Bill
• Primary Examiner(s): Cheung, Mary
• Application Number:
  US13/020,579
• Publication Number:
  US 20110137798A1
• Time in Patent Office: 334 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, comprising:

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

receiving, by the computer based system, an identification of the located payment system, along with rating information indicating an amount of matching between the located payment system and the payment criteria; and

transmitting, by the computer based system, the identification of the located payment system to facilitate processing the transaction.

2. The method of claim 1, further comprising interacting, by the computer based system, with the located payment system to facilitate at least partially processing the transaction using the payment criteria.

3. The method of claim 2, wherein the at least partially processing the transaction comprises using a transaction account that comprises at least one of a financial component or a non-financial component.

4. The method of claim 1, wherein the querying comprises selecting the payment system based upon attributes of the transaction.

5. The method of claim 1, wherein the querying comprises selecting the payment system based upon at least one of:

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;

fees associated with payment of the item;

location of the customer;

location of the merchant;

location of the payment system;

regulatory issues;

legal issues;

the type of device being used by the customer to initiate the payment;

traffic capacity of the payment requests;

performance of the payment system;

response time of the payment system;

availability of the payment system;

fraud activity within the payment system;

knowledge of transaction patterns of the customer;

knowledge of transaction patterns of the merchant;

or geopolitical changes.

6. The method of claim 1, further comprising authenticating, by the computer based system, an identification of a customer associated with the transaction.

7. The method of claim 1, further comprising negotiating, by the computer based system, with the located payment system a price for at least one of an item associated with the transaction or fees associated with the transaction.

8. The method of claim 1, further comprising permitting, by the computer based system, declining the located payment system by at least one of a customer, a merchant or a third party.

9. The method of claim 1, wherein the directory of payment systems is a distributed directory of systems.

10. The method of claim 1, wherein the directory of payment systems is a distributed directory of systems with directories that are replicated across predetermined regions.

11. The method of claim 1, wherein the directory of payment systems is a distributed directory of systems containing different payment systems.

12. The method of claim 1, wherein the directory of payment systems is a distributed directory of systems containing different payment systems, wherein the directory contains payment systems based on at least one of merchant characteristics or customer characteristics supported by the payment systems.

13. The method of claim 1, further comprising, by the computer based system, identifying the payment system by corresponding routing information.

14. The method of claim 1, further comprising entering, by the computer based system, into a contract with the located payment system for processing of the transaction.

15. The method of claim 1, wherein the payment criteria is based upon preferences of at least one of a customer, a merchant or a third party.

16. The method of claim 1, further comprising receiving, by the computer based system, payment criteria.

17. The method of claim 1, further comprising receiving, by the computer based system, payment criteria from a customer.

18. The method of claim 1, wherein the identification comprises the rating information indicating the amount of matching between the located payment system and the payment criteria.

19. A system comprising:

a tangible, non-transitory memory communicating with a processor for identifying a payment system for facilitating processing of a transaction,

the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising;

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

receiving, by the processor, an identification of the located payment system, along with rating information indicating an amount of matching between the located payment system and the payment criteria; and

transmitting, by the processor, the identification of the located payment system to facilitate processing the transaction.

20. An article of manufacture including a non-transitory, tangible computer readable medium having instructions stored thereon that, in response to execution by a computer-based system for identifying a payment system for facilitating processing of a transaction, cause the computer-based system to perform operations comprising:

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

receiving, by the computer based system, an identification of the located payment system along with rating information indicating an amount of matching between the located payment system and the payment criteria; and

transmitting, by the computer based system, the identification of the located payment system to facilitate processing the transaction.