System and method for processing microtransactions

• US 8,429,072 B1
• Filed: 09/27/2011
• Issued: 04/23/2013
• Est. Priority Date: 01/15/2002
• Status: Expired due to Term

• 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: Sheehan, Mark, Wallace, William, Knackstedt, Lee
• Primary Examiner(s): Weisberger, Richard C
• Application Number:
  US13/246,321
• Time in Patent Office: 574 Days
• Field of Search: 428 35- 45
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

Methods and systems of the invention provide a variety of techniques for processing microtransactions. In accordance with the invention, the method starts with a customer initiating a purchase through interaction with a merchant. The purchase is associated with purchase information, which includes the particulars of the purchase, such as the purchase price. In the purchase, the customer uses a transaction account, obtained from a payment enabler. The purchase is classified as a microtransaction, if the purchase price is below a predetermined monetary amount. Thereafter, the purchase information is forwarded for processing based on the classifying, i.e., either as a regular transaction or as a microtransaction. Then, upon receipt of the purchase information by an appropriate recipient, such as an interchange entity or an alternate interchange entity, the purchase information is processed to effect the microtransaction, if so classified, between the customer and the merchant.

Claims

1. A computer-implemented method for processing a microtransaction, the method comprising:

receiving a transaction request having one or more electronic information packets comprising information of a transaction initiated by a customer interacting with a merchant, the customer using a transaction account, the transaction request including a transaction amount;

accessing a microtransaction threshold amount;

determining whether the transaction amount is below the microtransaction threshold amount;

when the transaction amount is above the microtransaction threshold amount, processing the transaction information through a first interchange entity as a non-microtransaction; and

when the transaction amount is below the microtransaction threshold amount;

electronically routing the transaction request to a second interchange entity, and

processing the transaction request to effect the microtransaction between the customer and the merchant,

wherein the second interchange entity processes the microtransaction by debiting or crediting at least a portion of the transaction amount to a pool of funds that has been established for microtransactions.

2. The method of claim 1, wherein the pool of funds is established for microtransactions associated with said customer only.

3. The method of claim 1, wherein the pool of funds is established for microtransactions associated with said customer and one or more other customers.

4. The method of claim 1, wherein the microtransaction threshold amount is at least $20.

5. The method of claim 1, wherein the microtransaction threshold amount is at least $15.

6. The method of claim 1, wherein the customer interacting with the merchant is performed over the internet.

7. The method of claim 6, wherein the transaction request comprises information associated with the customer'"'"'s activities related to one or more webpages.

8. The method of claim 7, wherein the pool of funds is debited a predetermined amount when the customer accesses a for-fee webpage.

9. The method of claim 7, wherein the pool of funds is credited a predetermined amount when the customer accesses an advertising content.

10. The method of claim 1, wherein the customer interacting with the merchant is performed over a telephone network or a private network.

11. The method of claim 1, wherein the customer interacting with the merchant is performed in person.

12. The method of claim 1, wherein the transaction information includes the transaction amount and at least one of a transaction account number, a customer name, and a merchant name.

13. The method of claim 1, wherein the transaction account is one of a credit card account and a debit card account.