Method and apparatus for facilitating online payment transactions in a network-based transaction facility

• US 20060116957A1
• Filed: 01/13/2006
• Published: 06/01/2006
• Est. Priority Date: 03/17/2000
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Ian Flint, Jason May
• Inventors: May, Jason, Flint, Ian
• Granted Patent: US 7,899,712 B2
• Time in Patent Office: Days
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A method and a system to transfer payment to a seller associated with a transaction facility are described. In one aspect, a risk level involved in a payment transaction using a scoring algorithm is evaluated based on seller-specific criteria; and a payment is processed based on the evaluation.

Claims

1. A system to transfer payment to a seller associated with a transaction facility, the system comprising:

a risk management system to evaluate a risk level involved in a payment transaction using a scoring algorithm based on seller-specific criteria; and

a payment processing system to process a payment based on the evaluation.

2. The system of claim 1 wherein timing for release of the payment to the seller varies according to the evaluation.

3. The system of claim 1 wherein the scoring algorithm is further based on buyer-specific criteria and transaction-specific criteria.

4. The system of claim 1 wherein the seller-specific criteria includes at least one from a group including:

user classification schemes, peer rating schemes associated with the transaction facility, third part trust ratings carried out by the transaction facility, a seller transaction history with the transaction facility, seller information collected by system operation staff, and a length of registration time associated with the transaction facility.

5. The system of claim 1 wherein the payment processing system is to deny service based on the evaluation.

6. The system of claim 1 wherein the payment processing system is to implement a service fee based on the evaluation.

7. The system of claim 1 wherein the payment processing system is to restrict a payment manner to certain payment instruments based on the evaluation.

8. A method to transfer payment to a'"'"'seller associated with a transaction facility, the method comprising:

evaluating a risk level involved in a payment transaction using a scoring algorithm based on seller-specific criteria; and

processing a payment based on the evaluation.

9. The method of claim 8 further comprising restricting timing of payment release to the seller according to the evaluation.

10. The method of claim 8 wherein the scoring algorithm is further based on buyer-specific criteria and transaction-specific criteria.

11. The method of claim 8 wherein the seller-specific criteria includes at least one from a group including:

user classification schemes, peer rating schemes associated with the transaction facility, third part trust ratings carried out by the transaction facility, a seller transaction history with the transaction facility, seller information collected by system operation staff, and a length of registration time associated with the transaction facility.

12. The method of claim 8 further comprising denying payment processing service based on the evaluation.

13. The method of claim 8 further comprising implementing a payment processing service fee based on the evaluation.

14. The method of claim 8 further comprising restricting a manner in which funds are disbursed to seller including restricting payment instruments offered for use in the payment transaction based on the evaluation.

15. A machine-readable medium storing instructions that, when executed by a computer, cause the computer to perform the method of claim 8.

16. A system to transfer payment to a seller associated with a transaction facility, the system comprising:

means for evaluating a risk level involved in a payment transaction using a scoring algorithm based on seller-specific criteria; and

means for processing a payment based on the evaluation.

17. The system of claim 16 wherein the means for evaluating includes a risk management system and the means for processing includes a payment processing system.