Payment methods with a payment service and tabs selected by a first party and opened by a second party at any geographic location of the first party's mobile device

• US 8,662,389 B2
• Filed: 09/06/2012
• Issued: 03/04/2014
• Est. Priority Date: 10/13/2010
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: Dorsey, Jack, Henderson, William, Grassadonia, Brian, McKelvey, Jim
• Primary Examiner(s): Le, Thien M
• Assistant Examiner(s): TAYLOR, APRIL ALICIA
• Application Number:
  US13/605,073
• Publication Number:
  US 20130031003A1
• Time in Patent Office: 544 Days
• Field of Search: 235/375, 235380-382, 235/492, 705/1, 705/16, 705/17, 705/35, 705/39, 705/41, 705/44, 705/64, 705/65, 705/67
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/3224 Transactions dependent on location of M-devices
• CPC Class Codes: G06Q 20/347 Passive cards
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction

Abstract

A method of paying a second party is provided. A first party accesses the names of one or more qualified second parties. The second parties (i) have an association with the payment service, and (ii) if they do not have an established association with the payment service have established one prior to payment. The first party has an association with the payment service. A tab is opened by the first party that can be selected by the second party at any geographic location of a first party'"'"'s mobile device. The second party is only able to charge a first party'"'"'s financial account when the first party'"'"'s mobile device is within a defined geographic area. The tab is a relationship between the first party, payment service and second party. The second party can engage in a financial transaction when the first party is within the defined geographic area.

Claims

1. A method of paying a second party, comprising:

using one or more processors to create open tabs for one or more transactions between first parties and second parties, the opening of a tab being a financial transaction mechanism for a first party and the second party to enter into a transaction using a financial instrument of the first party, each of the first and second parties being registered to conduct transactions with a payment system that includes a secure server, a product or service database, a user database and a transaction database, the payment system being in communication with a first party'"'"'s financial account of a financial institution, the payment system being a non-affiliate of the financial institution;

using one or more processors to access the user database by the first party, and find names of one or more second parties registered with the payment system;

using one or more processors by the second party registered with the payment system, to access the user database and find a list of first parties with open tabs, wherein the second party engages in a financial transaction using an open tab with the first party when the first party is within a defined geographic area;

allowing the listed first parties with open tabs to be selected by the second party, the second party being only able to charge the first party'"'"'s financial account via the payment system when a first party'"'"'s mobile device is within the defined geographic area;

using the secure server of the payment system to transfer funds from the first party to the second party when the first and second parties enter into a transaction; and

including information of the transaction in the transaction database when the transaction is entered into.

2. The method of claim 1, wherein the list of first parties seen by the second party has first party identifying information.

3. The method of claim 2, wherein the identifying information identifies the first party.

4. The method of claim 3, wherein the identifying information is selected from at least one of, names, photos, cell number, social security number, e-mail address, and other personal identifying information for the first party.

5. The method of claim 1, further comprising:

establishing the first party'"'"'s financial account by the first party.

6. The method of claim 1, wherein the first party'"'"'s mobile device is configured to communicate with the payment system.

7. The method of claim 1, wherein the first party views the names of the one or more second parties with the first party'"'"'s mobile device.

8. The method of claim 1, wherein the first party enters financial account information with a single initial entry to the payment system, without the payment system requiring additional entries of the financial account information to the payment system for future financial transactions between the first party and any second party when the same payment system is used.

9. The method of claim 8, wherein the first party'"'"'s mobile device or a second party'"'"'s mobile device is a portable electronic device that includes at least one of, software, firmware, hardware, or a combination thereof, that is capable of at least receiving a signal, decoding the signal if required, exchange information with the first party'"'"'s financial account or payment network to verify the first party and/or second party'"'"'s account information and conduct the transaction.

10. The method of claim 1, wherein the financial account is selected from at least one of, a bank account, credit card, debit card, pre-paid card and a second party financial account.

11. The method of claim 10, wherein the financial account is selected by the first party by at least one of, use of the first party'"'"'s mobile device, from a bank terminal and done on-line.

12. The method of claim 1, wherein the first party'"'"'s financial account is a financial transaction card, and the entering of the first party'"'"'s financial card information is with a mobile device, wherein the entering is done by at least one of, swiping the financial transaction card through a slot of a card reader coupled to the mobile device, through a slot of the mobile device, by touch of the financial transaction card to the mobile device, by typing in information at the mobile device, with photos, by selecting a card from an application on a mobile device and from an on-line entity.

13. The method of claim 1, wherein the second party sees a list of first parties that have an association with the payment system.

14. The method of claim 13, wherein the list of first parties accessible by the second party has first party identifying information.

15. The method of claim 14, wherein the identifying information is selected from, names, photos, cell number, social security number, e-mail address and other personal identifying information for a first party.

16. The method of claim 1, wherein the second party accesses a list of first parties with open tabs.

17. A method of paying a second party, comprising:

using one or more processors to create open tabs between first parties and second parties, the opening of a tab being a financial transaction mechanism for a first party and a second party to enter into a transaction using a financial instrument of the first party, each of the first and second parties being registered to conduct transactions with a payment system that includes a secure server, a user database and a transaction database, the payment system being in communication with a first party financial account of a financial institution and not an affiliate of the financial institution;

using one or more processors to access the user database by the first party and the second party to find names of first and second parties registered with the payment system, the second party only able to charge the first party'"'"'s financial account via the payment system when the first party is within a defined geographic area;

using a first party'"'"'s mobile device to enter into a financial transaction with the second party

opening a tab by the first party that can be selected by the second party at any geographic location of the first party'"'"'s mobile device, the second party being only able to charge a first party'"'"'s financial transaction card when the first party'"'"'s mobile device is within the defined geographic area, the tab being a relationship between the first party, the payment system and the second party wherein the second party can engage in a financial transaction when the first party is within the defined geographic area; and

using the secure server of the payment system to transfer funds to the second party in response to the financial transaction.

18. The method of claim 17, further comprising coupling the first party'"'"'s mobile device to a card reader, the first party'"'"'s mobile device including an output jack adapted to be inserted into at least one of the audio input port or microphone input port of the first party'"'"'s mobile device and delivers a signal to the mobile device.

19. The method of claim 18, wherein the signal includes financial transaction data selected from at least one of, amount of the transaction, additional notes related to the transaction, authorization and/or signature of the first party.

20. The method of claim 18, wherein the signal includes financial transaction card information selected from at least one of, one or more of financial transaction card number, financial transaction card holder'"'"'s name, expiration date, and security code.

21. The method of claim 18, wherein the signal produced is indicative of data stored on a magnetic stripe with minimum error via a single swipe of the financial transaction card.

22. The method of claim 17, further comprising entering financial account information by swiping the financial transaction card through a slot of a card reader coupled to the first party'"'"'s mobile device, swiping the financial transaction card through a slot of the mobile device, a touch of the financial transaction card to the mobile device, typing in information at the mobile device, using photos, or selecting a card from an application on a mobile device and from an on-line entity, or any combination thereof.

23. The method of claim 17, further comprising making a confirmation of payment to the first party by the payment system reflecting a transfer of funds from the financial transaction card.

24. The method of claim 17, wherein the financial transaction card is selected from at least one of, credit financial transaction card, debit financial transaction card, gift financial transaction card, fund transfer financial transaction card, and other types of payment authenticating piece capable of carrying out a transfer of funds.

25. The method of claim 17, wherein the financial transaction is completed without sharing financial transaction card information with the second party.