Method and apparatus for facilitating online payment transactions in a network-based transaction facility using multiple payment instruments

• US 8,255,325 B2
• Filed: 03/03/2009
• Issued: 08/28/2012
• Est. Priority Date: 03/17/2000
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: May, Jason, Flint, Ian
• Primary Examiner(s): Kazimi, Hani M
• Assistant Examiner(s): Ali, Hatem M
• Application Number:
  US12/397,244
• Publication Number:
  US 20090204523A1
• Time in Patent Office: 1,274 Days
• Field of Search: 705 38- 40
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/08 Payment architectures
• 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 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and apparatus for facilitating online payment transactions between participants in a network-based transaction facility are described. In one embodiment, user interface information is communicated to a first participant via a communications network. The user interface information identifies various payment instruments available for processing online payment transactions in the network-based transaction facility. Further, payment option information is received from the first participant via the communications network. The payment option information indicates the willingness of the first participant to accept a payment from a second participant via one or more of the various payment instruments. This payment option information is passed to the second participant via the communications network. Afterwards, personal billing information is accepted from the second participant via the communications network to facilitate an online payment transaction between the first participant and the second participant. The personal billing information concerns a payment instrument selected by the second participant from the payment instruments specified by the first participant.

Claims

1. A computer-implemented method for facilitating online payment transactions in a network-based transaction facility, the method comprising:

using one or more computer processors for receiving payment option information from a first user, the payment option information identifying a selection of at least one of a plurality of payment instruments;

determining that the first user is qualified to accept the at least one of the plurality of payment instruments, the determination being based on a risk management operation;

evaluating a risk level of an online payment transaction between the first user and a second user using at least feedback information retrieved from memory, the feedback information pertaining to the second user and including information provided by peers of the second user in the network-based transaction facility, the risk level used to determine that the second user is qualified to use a payment instrument selected by the second user from the at least one of the plurality of payment instruments acceptable to the first user; and

processing the online payment transaction based on the risk level evaluation.

2. The computer-implemented method of claim 1 further comprising:

accepting personal billing information concerning the selected payment instrument that the second user is qualified to use; and

encrypting the personal billing information.

3. The computer-implemented method of claim 2 further comprising:

communicating, via a communications network, the personal billing information of the second user to a financial institution to process the online payment transaction; and

notifying the first user when the online payment transaction completes.

4. The computer-implemented method of claim 2, wherein the personal billing information that the second user is qualified to use is not disclosed to the first user unless permitted by the second user.

5. The computer-implemented method of claim 1, wherein the evaluating of the risk level includes using a scoring algorithm based on criteria specified by the first user.

6. The computer-implemented method of claim 1 further comprising:

dynamically evaluating risk involved in the online payment transaction between the first user and the second user at various stages of the online payment transaction; and

restricting the online payment transaction based on the evaluated risk.

7. The computer-implemented method of claim 6, wherein the dynamically evaluating includes using various information concerning the first user and the second user, the various information including information stored by a payment processing system and information obtained from any one of a plurality of third party risk analysis providers.

8. The computer-implemented method of claim 1 further comprising:

accepting multiple payments issued to the first user in a course of business transactions conducted by the first user;

accumulating the multiple payments over a period of time as a single accumulated payment; and

disbursing the single accumulated payment to the first user.

9. The computer-implemented method of claim 1 further comprising:

enabling the first user to initiate the online payment transaction via a communications network;

communicating to the first user an invoice form interface to obtain invoice information from the first user;

determining that the first user is qualified to initiate the online payment transaction described by terms included in the invoice information; and

passing the invoice information to the second user.

10. The computer-implemented method of claim 1 further comprising:

enabling the second user to initiate the online payment transaction via a communications network;

communicating to the first user information indicating a willingness of the second user to use at least one of the plurality of payment instruments; and

presenting a billing information interface to the second user to obtain personal billing information concerning the at least one of the plurality of payment instruments that the second user is qualified to use.

11. A system for facilitating online payment transactions between users of a network-based transaction facility, the system comprising:

the network-based transaction facility to implement a transaction system that facilitates business transactions between a first user and a second user;

a client, coupled to the network-based transaction facility, to receive payment option information from the first user, the payment option information identifying a selection of at least one of a plurality of payment instruments to present information; and

a processor-implemented payment processing system, coupled to the network-based transaction facility and the client via a communications network, the payment processing system to determine that the first user is qualified to accept the at least one of the plurality of payment instruments and to evaluate a risk level of an online payment transaction between the first user and the second user using at least feedback information retrieved from memory, the feedback information pertaining to the second user and including information provided by peers of the second user in the network-based transaction facility, the risk level used to determine that the second user is qualified to use a payment instrument selected by the second user from the at least one of a plurality of payment instruments acceptable to the first user, and processing the online payment transaction based on the risk level evaluation.

12. The system of claim 11, wherein the network-based transaction facility is further to:

accept personal billing information concerning the selected payment instrument that the second user is qualified to use; and

encrypt the personal billing information.

13. The system of claim 12, wherein the payment processing system is configured to:

communicate, via the communications network, the personal billing information of the second user to a financial institution to process the online payment transaction; and

notify the first user when the online payment transaction completes.

14. The system of claim 12, wherein the personal billing information of the second user is not

disclosed to the first user unless permitted by the second user.

15. The system of claim 11, wherein the evaluating of the risk level includes using a scoring algorithm based on criteria specified by the first user.

16. The system of claim 11, wherein the payment processing system comprises a risk management system to dynamically evaluate risk involved in the online payment transaction between the first user and the second user and the payment processing system is to restrict the online payment transaction based on the evaluated risk.

17. The system of claim 16, wherein the involved risk is evaluated using various information concerning the first user and the second user, the various information including information stored by the payment processing system and information obtained from any one of a plurality of third party risk analysis providers.

18. The system of claim 17, wherein the payment processing system is further configured to:

accept multiple payments issued to the first user in a course of business transactions conducted by the first user;

accumulate the multiple payments over a period of time as a single accumulated payment; and

disburse the single accumulated payment to the first user.

19. The system of claim 18, wherein the multiple payments are accepted over the communications network using the plurality of payment instruments.

20. The system of claim 16, wherein the involved risk is evaluated at various stages of the

online payment transaction between the first user and the second user.

21. The system of claim 11, wherein the network-based transaction facility comprises a

network-based auction facility.

22. The system of claim 11, wherein the payment processing system is further configured to:

enable the first user to initiate the online payment transaction via the communications network;

communicate to the first user an invoice form interface to obtain invoice information from the first user;

determine that the first user is qualified to initiate the online payment transaction described by terms included in the invoice information; and

pass the invoice information to the second user.

23. The system of claim 11, wherein the payment processing system is further configured to:

enable the second user to initiate the online payment transaction via the communications network;

communicate to the first user information indicating a willingness of the second user to use at least one of the plurality of payment instruments; and

present a billing information interface to the second user to obtain personal billing information concerning the at least one of the plurality of payment instruments that the second user is qualified to use.

24. Computer storage having embedded instructions which, when executed on a machine, cause the machine to perform a method for facilitating online payment transactions in a network-based transaction facility, the method comprising:

receiving payment option information from a first user, the payment option information identifying a selection of at least one of a plurality of payment instruments;

determining that the first user is qualified to accept the at least one of the plurality of payment instruments, the determination being based on a risk management operation;

evaluating a risk level of an online payment transaction between the first user and a second user using at least feedback information retrieved from memory, the feedback information pertaining to the second user and including information provided by peers of the second user in the network-based transaction facility, the risk level used to determine that the second user is qualified to use a payment instrument selected by the second user from the at least one of the plurality of payment instruments acceptable to the first user; and

processing the online payment transaction based on the risk level evaluation.

25. A system for facilitating online payment transactions between users in a network-based transaction facility, the system comprising:

means for receiving payment option information from a first user, the payment option information identifying a selection of at least one of a plurality of payment instruments;

means for determining that the first user is qualified to accept the at least one of the plurality of payment instruments, the determination being based on a risk management operation;

means for evaluating a risk level of an online payment transaction between the first user and a second user using at least feedback information retrieved from memory, the feedback information pertaining to the second user and including information provided by peers of the second user in the network-based transaction facility, the risk level used to determine that the second user is qualified to use a payment instrument selected by the second user from the at least one of the plurality of payment instruments acceptable to the first user; and

means for processing the online payment transaction based on the risk level evaluation.