System and method for varying electronic settlements between buyers and suppliers with dynamic discount terms

• US 8,244,625 B2
• Filed: 06/16/2011
• Issued: 08/14/2012
• Est. Priority Date: 05/24/2002
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Holm, Don, Lam, Duc, McRae, Xuan (Sunny)
• Primary Examiner(s): Norman, Samica L
• Application Number:
  US13/162,185
• Publication Number:
  US 20110251965A1
• Time in Patent Office: 425 Days
• Field of Search: 705/42, 705/29, 705/37, 705/40, 705/36.R, 705/317, 705/39
• US Class Current: 705/37
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

A method of making payment. A request is received to effect payment between a buyer and a seller for a transaction having established terms. The terms include a payment amount and a settlement date. Messages are exchanged between the buyer and the seller that include an offer and acceptance of new terms for payment at other than the established terms. The new terms include an adjusted amount of payment to be made at a particular time after an event associated with the transaction. An electronic notification that the event has occurred is received, and the after the notification, payment between the buyer and seller is effected under the new terms.

Claims

1. A system for providing supply chain financing, comprising:

an invoice system associated with a financial institution for processing at least one invoice to initiate a financing process, the invoice system comprising;

a communications network;

one or more computers, each comprising at least a computer processor, communicatively coupled through the communications network and configured to;

receive information relating to the at least one invoice comprising information relating to a validation of the at least one invoice;

automatically prepare a discount proposal option to present to a seller, the discount proposal option being prepared by the financial institution and comprising a discount payment amount in exchange for earlier or immediate payment;

present, electronically, the discount proposal option to the seller;

negotiate the terms of the discount proposal option with the seller;

make modifications to the terms of the discount proposal option;

receive a counter-discount proposal from the seller; and

adjust the terms of the discount proposal option upon receiving the counter-discount proposal.

2. The system of claim 1 wherein the discount proposal option comprises different schemes for arranging early or immediate payment.

3. The system of claim 1 further comprising the one or more computers configured to arrange payments to the seller and/or from a buyer.

4. The system of claim 3 wherein the seller is paid at a discount on the agreed date if the seller accepts the discount proposal option, and on the date of maturity if the seller rejects the discount proposal option.

5. The system of claim 3 wherein payments are received or taken from a buyer'"'"'s account on the date of maturity, or on agreed-upon date.

6. The system of claim 1 further comprising the one or more computers further configured to enable negotiation between the buyer and the financial institution.

7. The system of claim 1, wherein the information relating to the validation is received from a buyer.

8. A method for providing supply chain financing, comprising:

receiving, by at least one computer processor, information relating to at least one invoice comprising information relating to a validation of the at least one invoice;

automatically preparing, by the at least one computer processor, a discount proposal option to present to a seller, the discount proposal option being prepared by the financial institution and comprising a discount payment amount in exchange for earlier or immediate payment;

presenting, electronically, the discount proposal option to the seller;

negotiating the terms of the discount proposal option with the seller,

making modifications to the terms of the discount proposal option,

receiving a counter-discount proposal from the seller, and

adjusting the terms of the discount proposal option upon receiving the counter-discount proposal.

9. The method of claim 8 wherein the discount proposal option comprises different schemes for arranging early or immediate payment.

10. The method of claim 8 further comprising:

arranging payments to the seller and/or from the buyer.

11. The method of claim 10 wherein the seller is paid at a discount on the agreed date if the seller accepts the discount proposal option, and on the date of maturity if the seller rejects the discount proposal option.

12. The method of claim 10 wherein payments are received or taken from a buyer'"'"'s account on the date of maturity, or on agreed-upon date.

13. The method of claim 8 further comprising:

negotiating the terms of a second discount proposal option with a buyer.

14. The method of claim 8, wherein the information relating to the validation is received from a buyer.