Invoiceless trading and settlement method and system

• US 8,515,867 B1
• Filed: 03/15/2013
• Issued: 08/20/2013
• Est. Priority Date: 05/03/1999
• Status: Expired due to Fees

• Current Assignee: Fast 101 Pty Ltd
• Original Assignee: Fast 101 Pty Ltd
• Inventors: Duncan, William James
• Primary Examiner(s): Akintola, Olabode
• Assistant Examiner(s): CRANFORD, MICHAEL D
• Application Number:
  US13/839,941
• Publication Number:
  US 20130204687A1
• Time in Patent Office: 158 Days
• Field of Search: 705/40
• US Class Current: 705/40
• 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 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• 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 30/0213 Consumer transaction fees
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

Methods and systems consistent with the present invention overcome the shortcomings of existing trading systems by providing an invoiceless trading system that creates incentives for customers to pay suppliers within a predetermined period of time, such as a settlement period. Specifically, the invoiceless trading system enables a customer to obtain a discount on orders placed with suppliers in return for an immediate payment (e.g., within 24 hours) by the customer. The supplier receives payment within the predetermined period of time, and the customer receives additional cash benefits by providing an early payment to the supplier. To communicate with and transfer funds between customers and suppliers, the invoiceless trading system may use an electronic gateway and a settlement bank. In addition to creating an incentive to embrace e-commerce, both customers and suppliers avoid the need to manually process orders and use invoices to complete transactions.

Claims

1. A system configured for electronic settlement of an order placed by a customer with a supplier comprising:

one or more bank servers, at least one of the one or more bank servers receives a message related to the order, the message comprising at least an order amount;

a database associated with at least one of the one or more bank servers that stores the order amount;

one or more processors associated with at least one of the one or more bank servers that determines an incentive amount, wherein the incentive amount is determined based at least in part on one or more fiscal attributes of the customer and the order amount; and

a payment gateway associated with at least one of the one or more bank servers, the payment gateway electronically transfers to a supplier account on a first date an early payment for the order, the supplier account associated with the supplier, wherein the early payment is less than the order amount by at least the incentive amount, and the payment gateway that electronically receives a customer payment from a customer account on a second date, the customer account associated with the customer, wherein the customer payment is not less than the early payment plus an interest amount, wherein the interest amount is based at least in part on a credit period, wherein the credit period is an amount of time between the first date and the second date.

2. The system of claim 1, wherein the order comprises a shortened settlement period and wherein the incentive amount is further based on the shortened settlement period.

3. The system of claim 1, wherein the customer payment is one of:

no more than the face value;

no more than the face value plus any applicable fees;

or not less than the early payment plus the interest amount plus any applicable fees.

4. The system of claim 1, wherein the one or more fiscal attributes of the customer include one or more of:

an interest rate of the customer;

a cost of funds of the customer;

a credit rating of the customer; and

an assessed strength of the customer'"'"'s balance sheet.

5. The system of claim 1, wherein the message further comprises the incentive amount.

6. The system of claim 1, wherein the incentive amount is one or more of:

negotiated between the customer and the supplier;

determined by a settlement bank; and

determined by a funds provider.

7. The system of claim 1, further comprising a settlement bank agreement between a settlement bank and the customer, wherein the settlement bank agreement enables the incentive amount to be based on at least one of the one or more fiscal attributes of the customer.

8. The system of claim 1, wherein the customer payment is debited by a settlement bank, wherein the settlement bank and the funds provider are one of:

associated with the same institution;

or associated with different institutions.

9. The system of claim 1, wherein an electronic network is used to communicate the message between at least two of:

one or more computers associated with the customer, one or more computers associated with the supplier, and one or more computers associated with one or more of;

a funds provider; and

a settlement bank.

10. The system of claim 1, wherein the early payment is paid within a shortened settlement period.

11. The system of claim 1, wherein the customer payment is debited from the customer account, wherein the customer account is located at one of:

a settlement bank;

or a customer bank.

12. The system of claim 1, wherein the early payment is paid by a funds provider.

13. The system of claim 1, wherein the early payment is paid by a settlement bank.

14. The system of claim 1, further comprising a settlement agreement between the customer and a settlement bank, wherein the settlement agreement enables one or more of the settlement bank and a funds provider to pay the early payment to the supplier.

15. The system of claim 1, wherein the customer payment is equal to the face value, and wherein the settlement bank periodically rebates to the customer the interest amount less a settlement bank interest amount and less any applicable fees.

16. The system of claim 1, wherein an advanced shipping notice is received by the customer and at least one of the one or more bank servers before the message is received.

17. The system of claim 1, wherein the incentive amount is further based on the credit period.

18. The system of claim 1, wherein the second date occurs after a standard payment period.

19. The system of claim 1, wherein the second date occurs after a normal trading term.

20. A non-transitory computer-readable information storage media having stored thereon instructions, that when executed by a processor, cause to be performed a method to electronically settle an order placed by a customer with a supplier comprising:

receiving, at one or more bank servers, a message related to the order, the message comprising at least an order amount;

storing, in a database associated with at least one of the one or more bank servers, the order amount;

determining, using one or more processors associated with at least one of the one or more bank servers, an incentive amount, wherein the incentive amount is determined based at least in part on one or more fiscal attributes of the customer and the order amount; and

electronically transferring to a supplier account on a first date an early payment for the order, the supplier account associated with the supplier, wherein the early payment is less than the order amount by at least the incentive amount, and the payment gateway that electronically receives a customer payment from a customer account on a second date, the customer account associated with the customer, wherein the customer payment is not less than the early payment plus an interest amount, wherein the interest amount is based at least in part on a credit period, wherein the credit period is an amount of time between the first date and the second date.