Electronic purchasing and funds transfer systems and methods

• US 8,538,870 B2
• Filed: 03/13/2008
• Issued: 09/17/2013
• Est. Priority Date: 02/29/2000
• Status: Expired due to Fees

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Inventors: Allen-Rouman, Terry, Arrington, Jack Michael, Desai, Keval, Dravenstott, Robert Edwin, Larson, Wendy D., Levokove, Scott J., Mascavage, John Joseph III, Philipp, Peter Eric, Weichert, Margaret Morgan
• Primary Examiner(s): Hammond, III, Thomas M.
• Assistant Examiner(s): SCARITO, JOHN D
• Application Number:
  US12/048,109
• Publication Number:
  US 20080162350A1
• Time in Patent Office: 2,014 Days
• Field of Search: 705/39, 705/35
• 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 20/023 the neutral party being a clearing house
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• 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 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0637 Approvals
• 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

Abstract

An electronic transaction method, funds transfer apparatus and method for facilitating a funds transfer. The methods comprise sending information from a purchaser or payor to a funds transfer system separate from a vendor system or payee, validating and confirming personal financial information at the funds transfer system, and transferring funds from a purchaser or payor account to the vendor or a payee account without exposing either party'"'"'s financial and account information to the other. Additionally, a funds transfer apparatus is disclosed comprising connections to a payor and payee system and mechanisms for receiving and validating party and transaction information and a mechanism for transferring funds from one party to the other.

Claims

1. A method for facilitating an electronic purchase using a funds transfer system, the method comprising steps of:

receiving, via a vendor system, a selection of a private payment option from a purchaser;

once the private payment option is selected, connecting the purchaser to a funds transfer system which is separate from the vendor system so that the purchaser can transfer financial information to the funds transfer system without exposure to the vendor system;

storing, at the funds transfer system, purchase information and a vendor system generated digital signature received from the vendor system;

sending, by the funds transfer system, a validation request directly to the purchaser via the connection between the purchaser and the funds transfer system;

receiving, by the funds transfer system, validation information directly from the purchaser via the connection between the purchaser and the funds transfer system in response to the validation request, wherein the validation information identifies a purchaser account;

validating the purchaser, by the funds transfer system, by comparing the received validation information against account information maintained in a database at the funds transfer system;

when the purchaser is validated by the funds transfer system, transmitting a digital IOU to the vendor system, wherein the digital IOU comprises the vendor system generated digital signature; and

redeeming, via the funds transfer system, the digital IOU at a later time by;

receiving the digital IOU from the vendor system;

confirming the digital IOU by comparing the vendor system generated digital signature included on the received digital IOU to vendor system generated digital signatures stored in a signature log at the funds transfer system; and

once confirmed, receiving from the purchaser account funds to cover an amount of the digital IOU at a funds transfer system account and transferring the funds from the funds transfer system account to a vendor account.

2. The method of claim 1, wherein the funds comprise:

a currency, a gift certificate, a store credit, mileage, points, or foreign funds.

3. The method of claim 1, further comprising:

notifying the vendor of the funds transfer.

4. The method of claim 1, wherein the validating step further comprises:

checking purchaser identification and vendor identification against a user database at the funds transfer system,

wherein the user database includes account information for the purchaser and the vendor.

5. The method of claim 1, wherein the purchaser account or the vendor account is a bank account or a credit card account.

6. The method of claim 1, further comprising:

notifying the purchaser of the funds transfer.

7. The method of claim 1, wherein sending the validation request to the purchaser comprises:

sending the validation request in the form of a pop-up window or a separate page.

8. A system for facilitating an electronic purchase using a funds transfer system, the system comprising:

a funds transfer server configured to;

receive, via a vendor system, a selection of a private payment option from a purchaser;

once the private payment option is selected, connect a purchaser system to the funds transfer server which is separate from the vendor system so that the purchaser can transfer financial information to the funds transfer server without exposure to the vendor system;

store purchase information and a vendor system generated digital signature received from the vendor system;

send a validation request directly to the purchaser via the connection between the purchaser system and the funds transfer server;

receive validation information directly from the purchaser via the connection between the purchaser system and the funds transfer server in response to the validation request, wherein the validation information identifies a purchaser account;

validate the purchaser by comparing the received validation information against account information maintained in a database at the funds transfer server;

when the purchaser is validated, transmit a digital IOU to the vendor system, wherein the digital IOU comprises the vendor system generated digital signature; and

redeem the digital IOU at a later time by;

receiving the digital IOU from the vendor system;

confirming the digital IOU by comparing the vendor system generated digital signature included on the received digital IOU to vendor system generated digital signatures stored in a signature log at the funds transfer server; and

once confirmed, receiving from the purchaser account funds to cover an amount of the digital IOU at a funds transfer server account and transferring the funds from the funds transfer server account to a vendor account.

9. A non-transitory machine readable medium having instructions stored thereon, the instructions executable by a processor for:

receiving, via a vendor system, a selection of a private payment option from a purchaser;

once the private payment option is selected, connecting the purchaser to a funds transfer system which is separate from the vendor system so that the purchaser can transfer financial information to the funds transfer system without exposure to the vendor system;

storing, at the funds transfer system, purchase information and a vendor system generated digital signature received from the vendor system;

sending, by the funds transfer system, a validation request directly to the purchaser via the connection between the purchaser and the funds transfer system;

receiving, by the funds transfer system, validation information directly from the purchaser via the connection between the purchaser and the funds transfer system in response to the validation request, wherein the validation information identifies a purchaser account;

validating the purchaser, by the funds transfer system, by comparing the received validation information against account information maintained in a database at the funds transfer system;

when the purchaser is validated by the funds transfer system, transmitting a digital IOU to the vendor system, wherein the digital IOU comprises the vendor system generated digital signature; and

redeeming, via the funds transfer system, the digital IOU at a later time by;

receiving the digital IOU from the vendor system;

confirming the digital IOU by comparing the vendor system generated digital signature included on the received digital IOU to vendor system generated digital signatures stored in a signature log at the funds transfer system; and

once confirmed, receiving from the purchaser account funds to cover an amount of the digital IOU at a funds transfer system account and transferring the funds from the funds transfer system account to a vendor account.