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

• US 8,484,129 B2
• Filed: 07/06/2012
• Issued: 07/09/2013
• Est. Priority Date: 05/24/2002
• 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: Holm, Don, Lam, Duc, McRae, Xuan (Sunny)
• Primary Examiner(s): Norman, Samica L
• Application Number:
  US13/543,248
• Publication Number:
  US 20120278143A1
• Time in Patent Office: 368 Days
• Field of Search: 705/39, 705/40, 705/37, 705/36.R, 705/317
• US Class Current: 705/39
• 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 method for providing supply chain financing, comprising:

negotiating terms between a buyer and a financial institution in accordance with an incentive program which allow the buyer to make a payment to the financial institution on time or later;

negotiating terms between a seller and the financial institution which include additional terms that allow the seller to receive payment earlier than a scheduled payment time and the payment comprises a discounted amount;

establishing a trigger event for payment of an obligation;

receiving, by a computer processor, notification of occurrence of the trigger event;

receiving, by the computer processor, by the financial institution, a designated payment type from the buyer in accordance with the incentive program; and

affecting, by the computer processor, payment to the seller by the financial institution in accordance with the additional terms;

providing a rebate, by the financial institution, to the buyer following the affecting of the payment to the seller.

2. The method of claim 1, wherein the trigger event comprises one or more of:

validation of an invoice;

indication that the seller has shipped goods to the buyer, and the buyer has received the shipped goods.

3. The method of claim 2, wherein the invoice is validated by the buyer.

4. The method of claim 1 wherein the invoice, the designated payment type, and the payment are transmitted electronically over a communications network.

5. The method of claim 1, wherein the negotiation of term between the buyer and the financial institution and the negotiation of terms between the seller and the financial institution are independent of one another.