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

• US 9,619,797 B2
• Filed: 04/15/2011
• Issued: 04/11/2017
• 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:
  US13/088,038
• Publication Number:
  US 20120095916A1
• Time in Patent Office: 2,188 Days
• Field of Search: 235375, 235380-382, 235492, 705 1, 705 16, 705 17, 705 35, 705 39, 705 41, 705 44, 705 64, 705 65, 705 67
• 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 qualified second parties are second parties that, (i) have an association with the payment service, and (ii) second parties that if they do not have an established association with the payment service then they 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 qualified second party at any geographic location of a first party'"'"'s mobile device. The qualified 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, the payment service and the qualified second party, The qualified second party can engage in a financial transaction with the first party is within the defined geographic area.

Claims

1. A method of paying second parties comprising:

communicating, by a payment system, with a plurality of registered second parties for performing financial transactions, the second parties having account information stored by the payment system;

communicating, by the payment system, with respective transaction engines of a plurality of registered first parties electronic devices to identify the plurality of registered second parties, the registered first parties having accounts including payment information stored at the payment system;

identifying, by a transaction engine of a first party'"'"'s electronic device from the plurality of registered first parties, one or more of the plurality of registered second parties;

selecting, by the transaction engine of the first party'"'"'s electronic device, a second party from the one or more registered second parties associated with the payment system;

detecting, by the transaction engine of the first party'"'"'s electronic device operatively communicating with a geo-location system, that the first party'"'"'s electronic device is located outside of a predetermined geographic area of the second party selected by the transaction engine of the first party'"'"'s electronic device, the predetermined geographic area of the second party being defined by a geo-location boundary surrounding the second party;

opening an electronic tab, using the transaction engine of the first party'"'"'s electronic device to communicate with the payment system which communicates with the selected second party, the electronic tab allowing the first party and the second party to conduct a financial transaction through the payment system, the electronic tab being opened by the first party when the first party is outside of the predetermined geographic area of the second party;

after opening the tab, detecting, by the transaction engine of the first party'"'"'s electronic device operatively communicating with the geo-location system, that the first party'"'"'s electronic device is located within the predetermined geographic area of the second party; and

processing, by the transaction engine of the first party'"'"'s electronic device through the payment system, the financial transaction between the first party and the second party by transferring funds from a first financial account stored at the payment system of the first party to a second financial account stored at the payment system of the second party when the first party'"'"'s electronic device is located within the predetermined geographic area of the second party, wherein financial information associated with the first financial account of the first party is not shared with the second party.

2. The method of claim 1, further comprising:

requesting, by the transaction engine of the first party'"'"'s electronic device, promotional content from additional second parties within the predetermined geographic area of the second party.

3. The method of claim 1, wherein identifying one or more second parties associated with the payment system further comprises identifying, by the transaction engine of the first party'"'"'s electronic device operatively communicating with the geo-location system, one or more second parties within a predefined geographic area of the first party'"'"'s electronic device.

4. The method of claim 1, wherein identifying one or more second parties associated with the payment system further comprises identifying, by the transaction engine of the first party'"'"'s electronic device, second parties that have an established association with the payment system and second parties that establish an association with the payment system prior to payment of the electronic tab.

5. The method of claim 1, wherein identifying one or more second parties associated with the payment system further comprises:

displaying, by the transaction engine of the first party'"'"'s electronic device, on the first party'"'"'s electronic device, names of the one or more second parties; and

receiving, by the transaction engine of the first party'"'"'s electronic device, a selection of a name of the second party from the displayed names of the one or more second parties.

6. The method of claim 1, further comprising:

establishing, by the transaction engine of the first party'"'"'s electronic device, an association between the transaction engine of the first party'"'"'s electronic device and the payment system through a one-time entry of the first party'"'"'s financial account.

7. The method of claim 6, wherein the one-time entry of the first party'"'"'s financial account comprises swiping a financial card through a slot of a card reader coupled to the first party'"'"'s electronic device.

8. The method of claim 6, wherein paying the electronic tab further comprises:

exchanging, by a network interface in the first party'"'"'s electronic device, the second party'"'"'s financial account.

9. The method of claim 6, further comprising:

broadcasting, by the transaction engine of the first party'"'"'s electronic device, a signal the second party can decode and see a list including an identification of the first party.

10. The method of claim 1 wherein opening the electronic tab is performed, by the first party using the transaction engine of the first party'"'"'s electronic device to open the electronic tab for the first party that is represented on a second party'"'"'s electronic device.

11. A first party'"'"'s electronic device comprising:

at least one memory;

a geo-location system; and

a payment transaction engine, the payment transaction engine configured to;

identify, by the payment transaction engine of the first party'"'"'s electronic device, one or more second parties associated with a payment system, the transaction engine associated with the payment system, wherein the payment system is in communication with a first account of the first party;

select, by the payment transaction engine of the first party'"'"'s electronic device, a second party from the one or more second parties associated with the payment system;

detect, by the payment transaction engine of the first party'"'"'s electronic device operatively communicating with a geo-location system, that the first party'"'"'s electronic device is located outside of a predetermined geographic area of the second party selected by the payment transaction engine of the first party'"'"'s electronic device, the predetermined geographic area of the second party being defined by a geo-location boundary surrounding the second party;

open an electronic tab, by the transaction engine of the first party'"'"'s electronic device with the payment system, with the second party selected from the one or more second parties associated with the payment system to conduct a financial transaction through the payment system, the electronic tab being opened by the first party when the first party is outside of the predetermined geographic area of the second party;

detect, by the transaction engine of the first party'"'"'s electronic device operatively communicating with the geo-location system, the electronic device is located within the predetermined geographic area of the second party;

process, by the transaction engine of the first party'"'"'s electronic device through the payment system, the financial transaction between the first party and the second party selected from the one or more second parties associated with the payment system, by transferring funds from the first account of the first party stored at the payment system to a second account of the second party stored at the payment system when the first party'"'"'s electronic device is located within the predetermined geographic area of the second party wherein financial information associated with the first account of the first party is not shared with the second party.

12. The electronic device of claim 11, wherein the payment transaction engine is further configured to:

request, by the transaction engine of the first party'"'"'s electronic device, promotional content from additional second parties within the predetermined geographic area of the second party.

13. The electronic device of claim 11, wherein the payment transaction engine is further configured to:

establish, by the transaction engine of the first party'"'"'s electronic device, an association between the transaction engine of the first party'"'"'s electronic device and the payment system through a one-time entry of the first party'"'"'s account.

14. The electronic device of claim 13, further comprising a hardware input configured to couple with a card reader, wherein the one-time entry of the account comprises swiping a financial card through a slot of the card reader.

15. The electronic device of claim 11, further comprising:

a network interface configured to;

broadcast, by the transaction engine of the first party'"'"'s electronic device, a signal the second party can decode and see a list including an identification of the first party; and

exchange, by the transaction engine of the first party'"'"'s electronic device, the second party'"'"'s financial account.

16. A non-transitory computer-readable storage medium comprising:

a medium configured to store computer-readable instructions thereon; and

the computer-readable instructions that, when executed by a first party'"'"'s electronic device cause the first party'"'"'s electronic device to perform a method, comprising;

identifying, by a transaction engine of the first party'"'"'s electronic device, one or more second parties associated with a payment system, the transaction engine associated with the payment system, wherein the payment system is in communication with a first financial account of the first party;

selecting, by the transaction engine of the first party'"'"'s electronic device, a second party from the one or more second parties associated with the payment system;

detecting, by the transaction engine of the first party'"'"'s electronic device operatively communicating with a geo-location system, that the first party'"'"'s electronic device is located outside of a predetermined geographic area of the second party selected by the transaction engine of the first party'"'"'s electronic device, the predetermined geographic area of the second party being defined by a geo-location boundary surrounding the second party;

opening an electronic tab, using the transaction engine of the first party'"'"'s electronic device to communicate with the payment system which communicates with the selected second party, the electronic tab allowing the first party and the second party selected from the one or more second parties associated with the payment system to conduct a financial transaction through the payment system, the electronic tab being opened by the first party when the first party is outside of the predetermined geographic area of the second party;

detecting, by the transaction engine of the first party'"'"'s electronic device operatively communicating with a geo-location system, the first party'"'"'s electronic device is located within the predetermined geographic area of the second party; and

processing, by the transaction engine of the first party'"'"'s electronic device through the payment system, the financial transaction between the first party and the second party selected from the one or more second parties associated with the payment system, by transferring funds from the first financial account of the first party stored at the payment system to a second financial account of the second party stored at the payment system when the first party'"'"'s electronic device is located within the predetermined geographic area of the second party, wherein financial information associated with the first financial account of the first party is not shared with the second party.

17. The non-transitory computer-readable storage medium of claim 16, the instruction further causing the steps of:

requesting, by the transaction engine of the first party'"'"'s electronic device, promotional content from additional second parties within the predetermined geographic area.

18. The non-transitory computer-readable storage medium of claim 16, wherein identifying one or more second parties associated with the payment system further comprises identifying, by the transaction engine of the first party'"'"'s electronic device operatively communicating with the geo-location system, one or more second parties within a predefined geographic area of the first party'"'"'s electronic device.

19. The non-transitory computer-readable storage medium of claim 16, wherein identifying one or more second parties associated with the payment system further comprises identifying, by the transaction engine of the first party'"'"'s electronic device, second parties that have an established association with the payment system and second parties that establish an association with the payment system prior to payment of the electronic tab.

20. The non-transitory computer-readable storage medium of claim 16, wherein identifying one or more second parties associated with the payment system further comprises:

displaying, on the first party'"'"'s electronic device, names of the one or more second parties; and

receiving, by the transaction engine of the first party'"'"'s electronic device, a selection of a name of the second party from the displayed names of the one or more second parties.

21. The non-transitory computer-readable storage medium of claim 16, the instruction further causing the steps of:

establishing, by the transaction engine of the first party'"'"'s electronic device, an association between the transaction engine of the first party'"'"'s electronic device and the payment system through a one-time entry of the first party'"'"'s financial account.

22. The non-transitory computer-readable storage medium of claim 21, wherein the one-time entry of the first party'"'"'s financial account comprises swiping a financial card through a slot of a card reader coupled to the first party'"'"'s electronic device.

23. The non-transitory computer-readable storage medium of claim 21, wherein paying the tab further comprises:

exchanging, by a network interface in the first party'"'"'s electronic device, the second party'"'"'s financial account.

24. The non-transitory computer-readable storage medium of claim 21, the instruction further causing the steps of:

broadcasting, by the transaction engine of the first party'"'"'s electronic device, a signal the second party can decode the signal and see a list including an identification of the first party.