Mobile point-of-sale crowdfunding

• US 9,773,242 B1
• Filed: 03/19/2015
• Issued: 09/26/2017
• Est. Priority Date: 03/19/2015
• Status: Active Grant

• Current Assignee: Block, Inc. (f/k/a Square, Inc.)
• Original Assignee: Square Inc (Block, Inc. (f/k/a Square, Inc.))
• Inventors: Boates, Brian, Fern, Adam Jeremy, Scott, John Bryan, Kimball, Andrew, Clark, Donald
• Primary Examiner(s): Goyea, Olusegun
• Application Number:
  US14/663,209
• Time in Patent Office: 922 Days
• Field of Search: 705 4, 705 1439, 705 268, 705 271, 705 732, 705 12, 705 37, 705 39, 705 36 R, 705300, 705329, 705 35, 705 36, 705 40, 4554141
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/32 using wireless devices
• CPC Class Codes: G06Q 20/325 using wireless networks
• CPC Class Codes: G06Q 20/353 Payments by cards read by M-devices
• CPC Class Codes: G06Q 20/384 using social networks
• CPC Class Codes: G06Q 20/386 using messaging services or messaging apps using mobile network messaging services for payment, e.g. SMS G06Q20/3255
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A system and method for calculating crowdfunding terms based on a financial history of a merchant is described. The crowdfunding terms include an approved funding amount and repayment terms including a portion of transactions processed for the merchant by the payment processing system to withhold for repayment of the approved funding amount plus earnings to investors. The a payment processing system may withhold the portion of the transactions processed for the merchant by the payment processing system for repayment of the approved funding amount plus earnings to the investors, apportion the portion of the transactions processed for the merchant by the payment processing system amongst the investors, and transmit, by the payment processor system, the apportioned amount to each investor.

Claims

1. A computer-implemented method comprising:

receiving, by a payment processing system, from a mobile computing device associated with a merchant, transaction information for a plurality of transactions conducted between the merchant and a plurality of customers, wherein the mobile computing device has a register application installed thereon, which, when executed, configures the mobile computing device as a point-of-sale (POS) terminal to receive an input indicating a product or service for purchase by an individual customer, the register application further configuring the POS terminal to receive payment card information from a payment card reader coupled with the mobile computing device to enable a transfer of funds from the individual customer to the merchant, the register application further configuring the POS terminal to communicate corresponding transaction information over a network to the payment processing system;

generating, by the payment processing system, a data structure including attribute information of the plurality of customers of the merchant, wherein the attribute information is determined, at least partially, from aggregated transaction information received from the POS terminal of the merchant;

receiving, by the payment processing system, from the register application on the POS terminal, a request from the merchant to establish a crowdfunding project, the request including an amount of funding requested and one or more defined criteria for potential investors;

calculating, by the payment processing system, crowdfunding terms based on the amount of funding requested and a transaction history for the merchant, the crowdfunding terms including an approved funding amount, and repayment terms providing for repayment of the approved funding amount plus earnings to one or more investors, the repayment terms including a portion of each transaction processed for the merchant by the payment processing system to withhold for repayment of the approved funding amount plus earnings to the one or more investors;

receiving, by the payment processing system, from the register application on the POS terminal, a request to process a financial payment transaction conducted between the merchant and a first customer of the plurality of customers using the POS terminal;

accessing, by the payment processing system, the data structure to determine attributes of the first customer for determining that the first customer is a potential investor based on comparing the determined attributes of the first customer with the one or more defined criteria from the merchant;

in response to determining, by the payment processing system, that the first customer is a potential investor, sending crowdfunding information to the POS terminal to cause the register application to configure the POS terminal to present on a display associated with the POS terminal an offer for enabling the first customer to invest in the crowdfunding project, the offer including crowdfunding terms and an investment amount;

receiving, by the payment processing system, an acceptance of the offer including the crowdfunding terms, wherein the register application configures the POS terminal to receive the acceptance from the first customer and send the acceptance to the payment processing system;

processing, by the payment processing system, payment card information from the first customer to fund the investment amount, wherein the register application configures the POS terminal to receive the payment card information from the card reader and send the payment card information to the payment processing system;

withholding, by the payment processing system, the portion of each transaction processed via the POS terminal for the merchant by the payment processing system for repayment of the approved funding amount plus earnings to the one or more investors, wherein the first customer is one of the one or more investors;

apportioning, by the payment processing system, the portion of each transaction processed for the merchant by the payment processing system amongst the one or more investors; and

transmitting, by the payment processing system, the apportioned amount to a respective account associated with each investor of the one or more investors.

2. The computer-implemented method of claim 1, wherein the merchant has an account with a payment processing service provider, who operates the payment processing system, to process the plurality of transactions between the merchant and the plurality of customers via the POS terminal.

3. The computer-implemented method of claim 1, wherein the register application further configures the POS terminal to present a user interface to enable the merchant to specify the one or more defined criteria, wherein the one or more defined criteria include at least one of:

participation in one or more prior transactions with the merchant, or participation in prior crowdfunding projects established through the payment processing system, the method further comprising;

determining, by the payment processing system, based at least in part on accessing the data structure, a transaction history for the first customer, wherein the transaction history for the first customer is used, at least partially, to determine that the first customer is a potential investor.

4. A computer-implemented method comprising:

receiving, by a payment processing system, from a computing device configured by a register application as a POS terminal, transaction information for a plurality of transactions conducted between a merchant associated with the POS terminal and a plurality of customers;

generating, by the payment processing system, a data structure including attribute information of the plurality of customers of the merchant, wherein the attribute information is determined, at least partially, from aggregated transaction information received from the POS terminal;

calculating, by the payment processing system, crowdfunding terms based on a financial history of a merchant, the crowdfunding terms including an approved funding amount and repayment terms, the repayment terms including a portion of transactions processed for the merchant by the payment processing system to withhold for repayment of the approved funding amount plus earnings to one or more investors;

receiving, by the payment processing system, a request from the register application on the POS terminal to process a financial payment transaction conducted between the merchant and a first customer of the plurality of customers using the POS terminal;

accessing, by the payment processing system, the data structure to determine attributes of the first customer for determining that the first customer is a potential investor based on comparing the determined attributes of the first customer with one or more criteria for potential investors;

in response to determining, by the payment processing system, that the first customer is a potential investor, sending crowdfunding information to the POS terminal to cause the register application on the POS terminal to present on a display associated with the POS terminal an offer for enabling the first customer to invest in a crowdfunding project, the offer including crowdfunding terms;

receiving, by the payment processing system, an acceptance of the offer and an investment amount, wherein the register application configures the POS terminal to receive the acceptance and the investment amount from the first customer and transmit the acceptance and the investment amount to the payment processing system;

processing, by the payment processing system, payment card information from the first customer to fund the investment amount, wherein the register application configures the POS terminal to send the payment card information to the payment processing system, and the first customer is one of the one or more investors; and

based on receiving from the one or more investors, a threshold amount for the crowdfunding project, sending, by the payment processing system, an instruction to transfer at least a portion of the approved funding amount to an account of the merchant.

5. The computer-implemented method of claim 4, further comprising:

receiving, by the payment processing system, via the POS terminal, a request from the merchant to establish the crowdfunding project, the request including an amount of funding being requested, wherein the POS terminal is configured by the register application to receive an input from the merchant indicating the one or more criteria for potential investors.

6. The computer-implemented method of claim 5, wherein the account of the merchant is an account with a payment processing service provider who operates the payment processing system to process the plurality of transactions between the merchant and the plurality of customers via the POS terminal.

7. The computer-implemented method of claim 4, further comprising:

receiving, via a payment instrument reader connected to the computing device configured as the POS terminal, payment instrument information from the investors to fund the approved funding amount, the register application configuring the POS terminal to enable a transfer of funds from the one or more investors to the merchant.

8. The computer-implemented method of claim 4, further comprising:

withholding, by the payment processing system, the portion of the transactions processed for the merchant by the payment processing system for repayment of the approved funding amount plus earnings to the one or more investors;

apportioning, by the payment processing system, the portion of the transactions processed for the merchant by the payment processing system amongst the one or more investors; and

transmitting, by the payment processor system, the apportioned amount to a respective account of each investor of the one or more investors, wherein the portion of the transactions processed for the merchant by the payment processing system includes a percentage of each transaction processed for the merchant by the payment processing system.

9. The computer-implemented method of claim 4, further comprising:

determining, by the payment processing system, a transaction history for the first customer, wherein the transaction history for the first customer is used to determine whether the first customer is a potential investor.

10. The computer-implemented method of claim 4, wherein the attributes of the first customer include a transaction frequency between the first customer and the merchant.

11. The computer-implemented method of claim 4, further comprising:

withholding, by the payment processing system, the portion of the transactions processed for the merchant by the payment processing system for repayment of the approved funding amount plus earnings to the one or more investors;

apportioning, by the payment processing system, the portion of the transactions processed for the merchant by the payment processing system amongst the one or more investors;

transmitting, by the payment processor system, the apportioned amount to a respective account of each investor of the one or more investors; and

tracking an investment amount for each investor of the one or more investors, wherein the apportioned amount reflects the investment amount of each investor of the one or more investors.

12. The computer-implemented method of claim 4, wherein the POS terminal is configured by the register application to receive an input from the merchant indicating a product or service for purchase by the first customer and receive payment instrument information from a payment instrument reader coupled with the POS terminal to enable a transfer of funds from the first customer to the account of the merchant.

13. The computer-implemented method of claim 4, wherein the payment processing system is configured to provide data to be presented in a graphical user interface on a display associated with the POS terminal, the graphical user interface showing one or more of the approved funding amount, repayment terms, a current funding amount, or an option to invest in the crowdfunding project.

14. The computer-implemented method of claim 4, wherein the crowdfunding terms are further based on a transaction history of the merchant and on anticipated transactions of the merchant after receiving the approved funding amount.

15. The computer-implemented method of claim 4, wherein the earnings are tied to one or more of a utilization of a particular asset, a lifespan of the particular asset, a time period, or a total earnings amount.

16. A point-of-sale (POS) terminal for processing a plurality of transactions between a plurality of customers and a merchant, the POS terminal comprising:

a payment instrument reader comprising an interface configured to receive payment information from payment instruments associated with individual ones of the customers;

a computing device coupled with the payment instrument reader, the computing device comprising;

a display;

one or more processors able to communicate with the display;

a memory storing instructions for a register application, which when executed by the one or more processors, cause the one or more processors to;

receive an input from the merchant indicating a purchase;

receive payment instrument information from the payment instrument reader for transferring funds from a respective customer to the merchant for the purchase;

send corresponding transaction information to a payment processing system, wherein the payment processing system maintains a data structure including attribute information of the plurality of customers aggregated from transaction information of the plurality of transactions conducted by the plurality of customers;

receive, from the payment processing system, crowdfunding terms calculated by the payment processing system based on a financial history of the merchant, the crowdfunding terms including an approved funding amount and repayment terms, the repayment terms including a portion of transactions processed by the payment processing system for the merchant to withhold for repayment of the approved funding amount plus earnings to the one or more investors;

transmit, to the payment processing system, a request to process a financial payment transaction conducted between the merchant and a first customer of the plurality of customers using the POS terminal, wherein the register application configures the request to include information identifying the first customer useable by the payment processing system for accessing the data structure including the attribute information of the plurality of customers;

receive an indication that the customer is a potential investor based on a comparison of attributes of the first customer with the one or more criteria for potential investors;

present, on the display, a first graphical interface including an offer to the first customer to invest in the crowdfunding project, the offer including crowdfunding terms;

receive, via the first graphical interface presented on the display, an input from the first customer indicating an acceptance of the offer and an investment amount; and

transmit, to the payment processing system, payment instrument information from the first customer to fund the investment amount.

17. The POS terminal of claim 16, wherein the instructions, when executed by the one or more processors, cause the one or more processors to:

present, on the display, in the first graphical interface, a virtual control to enable the first customer to specify the investment amount.

18. The POS terminal of claim 16, wherein the instructions, when executed by the one or more processors, cause the one or more processors to:

receive, from the payment instrument reader, the payment instrument information from the one or more investors to fund the approved funding amount; and

transmit investment information including the payment instrument information and an investment amount, to the payment processing system.

19. The POS terminal of claim 16, wherein the portion of the transactions processed for the merchant by the payment processing system includes a percentage of each transaction processed for the merchant by the payment processing system.

20. The POS terminal of claim 16, wherein the instructions, when executed by the one or more processors, cause the one or more processors to:

receive, via a second graphical interface presented on the display, a request from the merchant to create the crowdfunding project, the request including an amount of funding being requested and the one or more criteria for potential investors; and

transmit, to the payment processing system, the request from the merchant to create the crowdfunding project and a request to calculate the crowdfunding terms for the crowdfunding project.

21. The POS terminal of claim 16, wherein the instructions, when executed by the one or more processors, cause the one or more processors to present, on the display, a second graphical interface showing one or more of the approved funding amount, repayment terms, or a current funding amount.

22. A computer-implemented method performed by a point-of-sale (POS) terminal comprising a payment instrument reader, a computing device coupled to the payment instrument reader, and a register application installed on the computing device that, when executed by the computing device configures the POS terminal to perform operations of the method comprising:

receiving an input from a merchant indicating a purchase;

receiving payment instrument information from the payment instrument reader for transferring funds from a respective customer to the merchant for the purchase;

sending corresponding transaction information to a payment processing system, wherein the payment processing system maintains a data structure including attribute information of a plurality of customers aggregated from transaction information of a plurality of transactions conducted by the plurality of customers;

receiving, from the payment processing system, crowdfunding terms calculated by the payment processing system based on a financial history of the merchant, the crowdfunding terms including an approved funding amount and repayment terms, the repayment terms including a portion of transactions processed for the merchant by the payment processing system to withhold for repayment of the approved funding amount plus earnings to one or more investors;

transmitting, to the payment processing system, a request to process a financial payment transaction conducted between the merchant and a first customer of the plurality of customers using the POS terminal, wherein the register application configures the request to include information identifying the first customer useable by the payment processing system for accessing the data structure including the attribute information of the plurality of customers;

receiving, an indication that the customer is a potential investor based on a comparison of attributes of the first customer with one or more criteria for potential investors;

presenting, on a display associated with the computing device, a first graphical interface including an offer to the first customer to invest in the crowdfunding project, the offer including crowdfunding terms;

receiving, via the first graphical interface presented on the display, an input from the first customer indicating an acceptance of the offer and an investment amount; and

transmitting, to the payment processing system, payment instrument information from the first customer to fund the investment amount.

23. The computer-implemented method of claim 22, the operations further comprising:

presenting, on the display, in the first the graphical interface, a virtual control to enable the first customer to specify the investment amount.

24. The computer-implemented method of claim 22, the operations further comprising:

receiving, from the payment instrument reader, the payment instrument information from a payment instrument of the first customer to fund the investment amount; and

transmitting the payment instrument information to the payment processing system, wherein the information identifying the first customer is determined at least partially from the payment instrument information.

25. The computer-implemented method of claim 22, wherein the portion of the transactions processed by the payment processing system for the merchant includes a percentage of each transaction processed for the merchant by the payment processing system.

26. The computer-implemented method of claim 22, the operations further comprising:

receiving, via a second graphical interface presented on the display, a request from the merchant to create the crowdfunding project, the request including an amount of funding being requested and the one or more criteria for potential investors; and

transmitting the request from the merchant to create the crowdfunding project and a request to calculate the crowdfunding terms for the crowdfunding project.

27. The computer-implemented method of claim 22, the operations further comprising:

presenting, on the display, a second graphical interface showing one or more of the approved funding amount, repayment terms, or a current funding amount.