Escrow payment to faciliate on-line transactions

• US 8,112,314 B2
• Filed: 11/11/2008
• Issued: 02/07/2012
• Est. Priority Date: 06/30/2008
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: Patel, Amol, Scipioni, Germán
• Primary Examiner(s): Poinvil, Frantzy
• Application Number:
  US12/268,899
• Publication Number:
  US 20090327099A1
• Time in Patent Office: 1,183 Days
• Field of Search: 705 10- 44
• US Class Current: 705/26
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping 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 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G07G 1/0036 Checkout procedures

Abstract

A system and method enables sellers to define a secret shared with an on-line payment provider when listing an item or service for purchase. Consumers deposit funds into an on-line escrow or holding account before committing to a financial on-line transaction or purchase. Once an item is located, the consumer may contact the seller for additional information. By placing funds in escrow, the seller may be more willing to spend the time and effort to deal with the consumer. The consumer, in turn, receives more information to make a purchasing decision. If the transaction is to he completed, the consumer instructs the payment provider maintaining the escrow account to release the funds to the seller'"'"'s account. The seller is notified by the payment provider, where the notification includes the secret. This enables the seller to authenticate the confirmation message.

Claims

1. A method of facilitating an on-line transaction, comprising:

receiving, electronically by a hardware processor of an on-line site, a secret from a seller, wherein the secret is defined by the seller and unknown to a buyer;

receiving a request from the buyer to transfer funds from a funding account to an on-line holding account, wherein the funds are at least a partial payment for on-line goods or services;

transferring the funds to the holding account;

receiving a request from the buyer to release the funds to a user account if the on-line transaction is to be completed;

transferring the funds from the holding account to the user account; and

transmitting, electronically by a hardware processor mechanism, a confirmation comprising the secret to the seller when the funds are transferred to an account of the seller.

2. The method of claim 1, further comprising transferring the funds in the holding account back to the funding account if the on-line transaction is not completed.

3. The method of claim 1, wherein the funding account is maintained with the holding account.

4. The method of claim 1, wherein the user account is associated with a seller of the goods or services.

5. The method of claim 1, further comprising notifying the buyer when the funds are transferred to the holding account or to the user account.

6. The method of claim 4, further comprising notifying the seller when the funds are transferred to the holding account or to the user account, wherein the notifying comprises transmitting the secret.

7. The method of claim 5, wherein the notifying comprises wirelessly transmitting a message to the buyer.

8. The method of claim 6, wherein the notifying comprises wirelessly transmitting a message to the seller.

9. The method of claim 1, wherein the secret is an audio or text message, a sequence of symbols, or a picture.

10. The method of claim 1, wherein the secret is created by the seller.

11. The method of claim 1, wherein the secret is selected by the seller from a set of secrets.

12. The method of claim 1, wherein the secret is unique to each seller.

13. The method of claim 1, wherein the secret is unique to each good or service.

14. A method of facilitating an on-line transaction, comprising:

listing for sale a good or service on an on-line site;

defining, by a seller via a hardware processor mechanism, a secret associated with the good or service and unknown to a buyer;

transmitting, electronically by the seller via the hardware processor mechanism to an on-line payment provider, the secret;

receiving, electronically from a hardware processor mechanism of the on-line payment provider, a notification that funds from an escrow account of the on-line payment provider have been transferred to a seller'"'"'s account, wherein the notification comprises the secret; and

providing the good or service to the buyer after the notification.

15. The method of claim 14, wherein the escrow account and the seller'"'"'s account are maintained by a same on-line payment provider.

16. The method of claim 14, wherein the secret is an audio or text message, a sequence of symbols, or a picture.

17. The method of claim 14, wherein the secret is unique to each seller.

18. The method of claim 14, wherein the secret is unique to each good or service.

19. A computer-readable medium containing instructions that cause a service provider facilitating financial transactions over a network to perform a method comprising:

receiving a secret from a seller, wherein the secret is defined by the seller and unknown to a buyer;

receiving a request from the buyer to transfer funds from a funding account to an on-line holding account, wherein the funds are at least a partial payment for on-line goods or services;

transferring the funds to the holding account;

receiving a request from the buyer to release the funds to a user account if the on-line transaction is to be completed;

transferring the funds from the holding account to the user account; and

transmitting a confirmation comprising the secret to the seller when the funds are transferred to an account of the seller.

20. The computer-readable medium of claim 19, wherein the secret is an audio or text message, a sequence of symbols, or a picture.

21. The computer-readable medium of claim 19, wherein the secret is created by the seller.

22. The computer-readable medium of claim 19, wherein the secret is selected by the seller from a set of secrets.

23. The computer-readable medium of claim 19, wherein the secret is unique to each seller.

24. The computer-readable medium of claim 19, wherein the secret is unique to each good or service.

25. A computer-readable medium containing instructions that cause a seller device facilitating financial transactions over a network to perform a method comprising:

listing for sale a good or service on an on-line site;

defining, by a seller, a secret associated with the good or service and unknown to a buyer; and

receiving a notification that funds from an escrow account of an on-line payment provider have been transferred to a seller'"'"'s account, wherein the notification comprises the secret.

26. The computer-readable medium of claim 25, wherein the secret is an audio or text message, a sequence of symbols, or a picture.

27. The computer-readable medium of claim 25, wherein the secret is unique to each seller.

28. The computer-readable medium of claim 25, wherein the secret is unique to each good or service.