System and method for effecting a real-time payment for an item won on an electronic auction

• US 20020095372A1
• Filed: 01/17/2001
• Published: 07/18/2002
• Est. Priority Date: 01/17/2001
• Status: Active Grant

• Current Assignee: XPRT Ventures LLC
• Original Assignee: XPRT Ventures LLC
• Inventors: Likourezos, George, Scaturro, Michael A.
• Granted Patent: US 7,483,856 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• 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 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0235 constrained by time limit or expiration date
• CPC Class Codes: G06Q 30/0275 Auctions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

The invention provides a computerized electronic auction payment system and method for effecting a real-time payment for an item won in an electronic auction by setting up and maintaining electronic auction payment accounts for prospective bidders and sellers. The prospective bidders provide funds to their electronic auction payment accounts maintained by the computerized electronic auction payment system, prior to being deemed as winning bidders, via direct deposit, using a credit card, or sending a check, money order, or other financial document to an operator of the computerized electronic auction payment system. In one embodiment, upon being deemed as a winning bidder, the winning bidder accesses a payment page, enters the total amount of funds to be transferred to the seller, and authorizes the computerized electronic auction payment system to effect a real-time payment by debiting his, i.e., the winning bidder'"'"'s, respective electronic auction payment account and crediting the electronic auction payment account of the seller, and/or another account specified by the seller. In an alternate embodiment, the prospective bidder authorizes the computerized electronic auction payment system to effect a real-time payment to the seller upon the prospective bidder being deemed the winning bidder (i.e., immediately following the conclusion of the auction). That is, without the winning bidder having to access the payment page.

Claims

1. A method for effecting payment of an item offered for an auction sale by a seller and won by a winning bidder at the conclusion of an electronic auction where computer terminals of potential purchasers are used to access a computer site maintained by an auction server computer, said method comprising the steps of:

debiting an electronic auction payment account corresponding to the winning bidder, where the electronic auction payment account is configured for storing funds therein; and

crediting at least one account corresponding to the seller to effect payment of the item won by the winning bidder.

2. The method according to claim 1, further comprising the step of maintaining a plurality of electronic auction payment accounts corresponding to potential users of the computer site, wherein the plurality of electronic auction payment accounts includes the electronic auction payment corresponding to the winning bidder and an electronic auction payment account corresponding to the seller.

3. The method according to claim 2, wherein the at least one credited account corresponding to the seller includes at least the electronic auction payment account corresponding to the seller.

4. The method according to claim 1, further comprising the step of receiving authorization from the winning bidder to debit the electronic auction payment account corresponding to the winning bidder and to credit the at least one account corresponding to the seller prior to the steps of debiting the winning bidder'"'"'s electronic auction payment account and crediting the at least one account corresponding to the seller.

5. The method according to claim 1, wherein the steps of debiting and crediting are performed in real-time.

6. The method according to claim 1, further comprising the steps of:

determining if there are sufficient funds in the electronic auction payment account corresponding to the winning bidder to effect payment; and

loaning funds to effect payment, if there are not sufficient funds in the electronic auction payment account corresponding to the winning bidder.

7. The method according to claim 6, further comprising the step of charging interest by an operator of the auction server computer for loaning funds to effect payment.

8. The method according to claim 1, further comprising the steps of:

determining if the winning bidder has indicated a purchase of insurance and/or for a personal guarantee of the item won; and

debiting the electronic auction payment account corresponding to the winning bidder for an amount of funds to cover the purchase of insurance and/or for the personal guarantee of the item won, if the winning bidder has indicated the purchase of insurance and/or for the personal guarantee of the item won.

9. The method according to claim 8, further comprising the step of retaining, by an operator of the auction server computer, a portion of the amount of funds debited as a service fee for the purchase of insurance and/or for the personal guarantee of the item won.

10. The method according to claim 2, further comprising the step of initiating the investment of funds corresponding to at least one of the plurality of electronic auction payment accounts.

11. The method according to claim 10, further comprising the steps of:

allocating a percentage of funds gained by investing the funds to the at least one of the plurality of electronic auction payment accounts; and

retaining, by an operator of the auction server computer, a percentage of funds gained by investing the funds.

12. The method according to claim 2, further comprising the step of issuing checks to at least one potential user having a corresponding electronic auction payment account.

13. The method according to claim 1, further comprising the step of retaining, by an operator of the auction server computer, a percentage of funds debited from the electronic auction payment account corresponding to the winning bidder prior to crediting the at least one account corresponding to the seller.

15. The system according to claim 14, further comprising:

means for determining if there are sufficient funds in the electronic auction payment account corresponding to the winning bidder to effect payment; and

means for loaning funds to effect payment, if there are not sufficient funds in the electronic auction payment account corresponding to the winning bidder.

16. The system according to claim 15, further comprising means for charging interest for loaning funds to effect payment.

17. The system according to claim 14, further comprising means for initiating the investment of funds corresponding to at least one of the plurality of electronic auction payment accounts.

18. The system according to claim 17, further comprising:

means for allocating a percentage of funds gained by investing the funds to the at least one of the plurality of electronic auction payment accounts; and

means for retaining a percentage of funds gained by investing the funds.

19. The system according to claim 14, further comprising means for retaining a percentage of funds debited from the electronic auction payment account corresponding to the winning bidder prior to crediting the at least one account corresponding to the seller.

20. The system according to claim 14, wherein the means for debiting and the means for crediting debit the electronic auction payment account corresponding to the winning bidder and credit the at least one account corresponding to the seller, respectively, in real-time.

14. A system for effecting payment of an item offered for an auction sale by a seller and won by a winning bidder at the conclusion of an electronic auction where computer terminals of potential purchasers are used to access a computer site maintained by an auction server computer, said system comprising:

means for maintaining a plurality of electronic auction payment accounts corresponding to potential users of the computer site, where the plurality of electronic auction payment accounts are configured for storing funds therein, and the plurality of electronic auction payment accounts include an electronic auction payment corresponding to the winning bidder and an electronic auction payment account corresponding to the seller;

means for debiting the electronic auction payment account corresponding to the winning bidder; and

means for crediting at least one account corresponding to the seller to effect payment of the item won by the winning bidder.

21. A payment system for effecting payment to a seller of an item offered for an auction sale and won by a winning bidder at the conclusion of an electronic auction, said system comprising:

a database containing a plurality of electronic auction payment accounts, where the plurality of electronic auction payment accounts are configured for storing funds therein, and where one of the plurality of electronic auction payment accounts corresponds to the winning bidder and one of the plurality of electronic auction payment accounts corresponds to the seller; and

a web server computer including application software for effecting payment by accessing the database and debiting an electronic auction payment account corresponding to the winning bidder and crediting at least one account corresponding to the seller.