Method and system for processing micropayment transactions

• US 8,335,745 B2
• Filed: 10/11/2007
• Issued: 12/18/2012
• Est. Priority Date: 10/11/2006
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Lee, Timothy M., Perlman, Jeffrey W., Kearney, Michael J., Storey, Gregory
• Primary Examiner(s): ZELASKIEWICZ, CHRYSTINA E
• Application Number:
  US11/870,799
• Publication Number:
  US 20080091619A1
• Time in Patent Office: 1,895 Days
• Field of Search: 705/65, 705/64, 705/77, 705/67
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/123 Shopping for digital content
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

Methods and systems for performing micropayment transactions over communication networks is provided. These methods and systems enable ubiquitous micropayments by providing a seamless payment solution in which micropayment is one of a plurality of payments facilitated. In an embodiment, the transaction value may be compared to a predefined threshold, and processed as a micropayment if said value is less than said threshold, and otherwise processed using a second processing system. In another embodiment, the transaction may be processed as a micropayment if the payee has previously been verified by the micropayment processing system. In a third embodiment, the transaction takes place using the payee'"'"'s website.

Claims

1. A method of processing a micropayment transaction between a payer and a payee, the method comprising:

receiving, by a website, from a user interface, a request to make a purchase of an item or service with a transaction value;

comparing the transaction value with a pre-defined threshold;

displaying, by the website on the user interface, different payment source options from which a selection is to be made, wherein if the transaction value is less than the threshold then the payment source options include a micropayment option, and if the transaction value is not less than the threshold then the payment source options do not include a micropayment option, the micropayment option relating to payment for the purchase to be provided by a non-transitory micropayment processing system;

receiving, by the website from the user interface, a selection of the micropayment option and, in response, sending a payment authorization request to the micropayment processing system;

receiving the payment authorization request at the micropayment processing system, the payment authorization request including a payer identifier, a transaction amount and an identification of the item or service for purchase;

the micropayment processing system verifying the payer'"'"'s identity based at least in part on the payer identifier;

the micropayment processing system determining whether the payment authorization request satisfies one or more pre-defined account parameters, wherein the one or more pre-defined account parameters are specific to an account associated with the payer identifier;

the micropayment processing system determining whether the transaction value is less than the pre-defined threshold, wherein access to the micropayment processing system for processing payment authorization requests is restricted to requests for amounts less than the pre-defined threshold;

the micropayment processing system determining whether the account associated with the payer identifier contains a prefunded account balance greater than or equal to the transaction value;

the micropayment processing system approving the payment authorization request when the micropayment processing system has determined that the payment authorization request satisfies the one or more pre-defined account parameters, the transaction value is less than the pre-defined threshold, and the account associated with the payer identifier contains the prefunded account balance greater than or equal to the transaction value, and

the micropayment processing system causing the transaction value to be transferred from the prefunded account balance to a financial account of the payee.

2. The method of claim 1, wherein the payer'"'"'s identity is verified using a password.

3. The method of claim 1, wherein the payee has no access to said payer identifier.

4. The method of claim 1, wherein said pre-defined threshold is associated with said payee and said payer.

5. The method of claim 1, wherein said pre-defined account parameters comprise one or more of payee value limits, total value limits, time limitations, or whether the payee has been blocked.

11. The method of claim 1, further comprising:

the micropayment processing system requesting and receiving approval for the payment authorization request from an account funding source identified in the account associated with the payer identifier prior to approving the payment authorization request, when the transaction value is more than the prefunded account balance.

6. A method of processing a micropayment transaction between an secondary payer and a payee, the method comprising:

receiving, by a website, from a user interface, a request to make a purchase of an item or service with a transaction value;

comparing the transaction value with a pre-defined threshold;

displaying, by the website on the user interface, different payment source options from which a selection is to be made, wherein if the transaction value is less than the threshold then the payment source options include a micropayment option, and if the transaction value is not less than the threshold then the payment source options do not include a micropayment option, the micropayment option relating to payment for the purchase to be provided by a non-transitory micropayment processing system;

receiving, by the website from the user interface, a selection of the micropayment option and, in response, sending a payment authorization request to the micropayment processing system;

receiving the payment authorization request at the micropayment processing system, the payment authorization request including a secondary payer identifier, a transaction amount and an identification of the item or service for purchase;

the micropayment processing system verifying said secondary payer'"'"'s identity based at least in part on the secondary payer identifier;

the micropayment processing system determining whether one or more pre-defined account parameters are satisfied, wherein

(i) the one or more pre-defined account parameters are specific to an account associated with the secondary payer identifier,

(ii) the account is primarily associated with a primary payer, and

(iii) one or more of the parameters apply only to the secondary payer;

the micropayment processing system determining whether the transaction value that is less than the pre-defined threshold, wherein access to the micropayment processing system for processing payment authorization requests is restricted to requests for amounts less than the pre-defined threshold;

the micropayment processing system determining whether the account associated with the secondary payer identifier contains a prefunded account balance greater than or equal to the transaction value; and

the micropayment processing system approving the payment authorization request when the micropayment processing system has determined that the payment authorization request satisfies the one or more pre-defined account parameters, the transaction value is less than the pre-defined threshold, and the account associated with the payer identifier contains the prefunded account balance greater than or equal to the transaction value, and

the micropayment processing system causing the transaction value to be transferred from the prefunded account balance to a financial account of the payee.

7. The method of claim 6, wherein the secondary payer'"'"'s identity is verified using a password.

8. The method of claim 6, wherein said pre-defined threshold is associated with said payee and said secondary payer.

9. The method of claim 6, wherein said pre-defined threshold is associated with said secondary payer.

10. The method of claim 6, wherein said primary payer is a parent or guardian, and said secondary payer is a child.

12. A method of processing a micropayment transaction between a payer and a payee using a micropayment processing system, comprising:

receiving, by a website, from a user interface, a request to make a purchase of an item or service with a transaction value;

comparing the transaction value with a pre-defined threshold;

displaying, by the website on the user interface, different payment source options from which a selection is to be made, wherein if the transaction value is less than the threshold then the payment source options include a micropayment option, and if the transaction value is not less than the threshold then the payment source options do not include a micropayment option, the micropayment option relating to payment for the purchase to be provided by a non-transitory micropayment processing system;

receiving, by the website from the user interface, a selection of the micropayment option and, in response, sending a payment authorization request to the micropayment processing system;

receiving the payment authorization request at the micropayment processing system, the payment authorization request including a payer identifier, a transaction amount, and an identification of the item or service for purchase;

verifying the payer'"'"'s identity based at least in part on the payer identifier received by the micropayment processing system;

the micropayment processing system determining if the payment authorization request qualifies as a micropayment transaction based on the transaction amount, wherein a payment authorization request qualifies as a micropayment transaction if the transaction amount is less than the pre-determined micropayment threshold, and wherein access to the micropayment processing system for processing payment authorization requests is restricted to requests that qualify as a micropayment transactions;

determining whether an account associated with the payer at the micropayment processing system contains a prefunded account balance greater than or equal to the transaction value; and

the micropayment processing system approving the payment authorization request when the micropayment processing system has determined that the payment authorization request satisfies the one or more pre-defined account parameters, the transaction value is less than the pre-defined threshold, and the account associated with the payer identifier contains the prefunded account balance greater than or equal to the transaction value, and

the micropayment processing system causing the transaction value to be transferred from the prefunded account balance to a financial account of the payee.

13. The method of claim 12, further comprising:

the micropayment processing system requesting and receiving approval for the payment authorization request from an account funding source identified in the account associated with the payer identifier prior to approving the payment authorization request, when the transaction value is more than the prefunded account balance.