Trust Based Transaction System

• US 20110137789A1
• Filed: 12/02/2010
• Published: 06/09/2011
• Est. Priority Date: 12/03/2009
• Status: Abandoned Application

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Venmo, LLC (PayPal Holdings, Inc.)
• Inventors: Kortina, Andrew, Magdon-Ismail, Iqram, Lessin, Samuel
• Application Number:
  US12/959,254
• Publication Number:
  US 20110137789A1
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/384 using social networks
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A configuration for more efficient electronic financial transactions is disclosed. Users input personal and financial information into a system that validates the information to generate trusted financial profiles. Each user can establish trusted financial links with other users. The trusted financial link provides a mechanism for the user to allow other users to withdraw money from the link provider account. The data from these relationships and the financial data flowing through the system enable a measure of trustworthiness of users and the trustworthiness of all interactions in the system. The combination of trusted financial profiles, trusted financial links, and financial transactions between users create a measurable financial trust graph which is a true representation of the trusting economic relationships among the users. The financial trust graph enables a more accurate assessment of the creditworthiness and financial risk of transactions by users with little or no credit or transaction history.

Claims

1. A computer implemented method for determining creditworthiness for a transaction in a network of users, the method comprising:

creating a user profile for each user in the network of users;

receiving, from an authorizing user of the network of users, authorization for at least one permitted user, each permitted user permitted to complete a transaction from the authorizing user without receiving permission in advance, the authorization stored with the user profile of the authorizing user and the permission for each permitted user stored with a corresponding user profile of the permitted user;

receiving details of each completed transaction from each permitted user completing a transaction, the details of each completed transaction including an identification of a transaction and an amount of the transaction with the authorizing user;

receiving details of each failed transaction from each permitted user having a completed transaction that failed, the details of the failed transaction including an identification of the completed transaction that failed and an amount of the completed transaction that failed; and

storing the details of each completed transaction and each failed transaction with the user profile of the authorizing user and the corresponding user profile of the permitted user; and

assigning, in response to the details of each completed transaction and each failed transaction, a risk score and a trust score for the authorizing user and each permitted user; and

identifying a creditworthiness of a new transaction with a user having an identified relationship with at least one of the authorized user and a permitted user in network of users, the creditworthiness corresponding to the risk score and the trust score of each identified authorized user and permitted user.

2. The method of claim 1, wherein each permitted user permitted to complete a transaction from the authorizing user without receiving permission in advance is responsive to the permitted user being an authorizing user and the authorizing user being a permitted user.

3. The method of claim 1, further comprising:

receiving, for an authorizing user, authorization from a second authorizing user, the authorizing user permitted to complete a transaction with the second authorizing user without receiving permission in advance, the authorization stored with the user profile of the second authorizing user and the permission stored with the user profile of the authorizing user;

receiving details of each completed transaction for the authorizing user completing a transaction, the details of each completed transaction including an identification of a transaction and an amount of the transaction with the second authorizing user; and

receiving details of each failed transaction for the authorizing user having a completed transaction that failed, the details of the failed transaction including an identification of the completed transaction that failed and an amount of the completed transaction that failed.

4. The method of claim 3, further comprising:

updating, in response to the details of each completed transaction and each failed transaction, the risk score and the trust score for the authorizing user and a risk score and trust score for the second authorizing user; and

identifying a creditworthiness of a new transaction with a user having an identified relationship at least one of the authorized user and the second authorized user in the network of users, the creditworthiness corresponding to the risk score and the trust score of each identified authorized user and second authorized user.

5. The method of claim 1, wherein a failed transaction corresponds to one of a reversed transaction and a fraudulent transaction.

6. The method of claim 1, wherein the authorizing user also is a permitted user relative to another authorizing user.

7. The method of claim 1, wherein at least one permitted user is the authorizing user.

8. The method of claim 1, further comprises displaying user interface corresponding to the identified creditworthiness.

9. A non-transitory computer readable medium configured to store instructions, the instructions when executed cause at least one processor to:

create a user profile for each user in the network of users;

receive, from an authorizing user of the network of users, authorization for at least one permitted user, each permitted user permitted to complete a transaction from the authorizing user without receiving permission in advance, the authorization stored with the user profile of the authorizing user and the permission for each permitted user stored with a corresponding user profile of the permitted user;

receive details of each completed transaction from each permitted user completing a transaction, the details of each completed transaction including an identification of a transaction and an amount of the transaction with the authorizing user;

receive details of each failed transaction from each permitted user having a completed transaction that failed, the details of the failed transaction including an identification of the completed transaction that failed and an amount of the completed transaction that failed; and

store the details of each completed transaction and each failed transaction with the user profile of the authorizing user and the corresponding user profile of the permitted user; and

assign, in response to the details of each completed transaction and each failed transaction, a risk score and a trust score for the authorizing user and each permitted user; and

identify a creditworthiness of a new transaction with a user having an identified relationship with at least one of the authorized user and a permitted user in network of users, the creditworthiness corresponding to the risk score and the trust score of each identified authorized user and permitted user.

10. The computer readable storage medium of claim 9, wherein each permitted user permitted to complete a transaction from the authorizing user without receipt of permission in advance is responsive to the permitted user being an authorizing user and the authorizing user being a permitted user.

11. The computer readable storage medium of claim 9, further comprising instructions that cause the at least one processor to:

receive, for an authorizing user, authorization from a second authorizing user, the authorizing user permitted to complete a transaction with the second authorizing user without receiving permission in advance, the authorization stored with the user profile of the second authorizing user and the permission stored with the user profile of the authorizing user;

receive details of each completed transaction for the authorizing user completing a transaction, the details of each completed transaction including an identification of a transaction and an amount of the transaction with the second authorizing user; and

receive details of each failed transaction for the authorizing user having a completed transaction that failed, the details of the failed transaction including an identification of the completed transaction that failed and an amount of the completed transaction that failed.

12. The computer readable storage medium of claim 11, further comprising instructions that cause the at least one processor to:

update, in response to the details of each completed transaction and each failed transaction, the risk score and the trust score for the authorizing user and a risk score and trust score for the second authorizing user; and

identify a creditworthiness of a new transaction with a user having an identified relationship at least one of the authorized user and the second authorized user in the network of users, the creditworthiness corresponding to the risk score and the trust score of each identified authorized user and second authorized user.

13. The computer readable storage medium of claim 9, wherein a failed transaction corresponds to one of a reversed transaction and a fraudulent transaction.

14. The computer readable storage medium of claim 9, wherein the authorizing user also is a permitted user relative to another authorizing user.

15. The computer readable storage medium of claim 9, wherein at least one permitted user is the authorizing user.

16. The computer readable storage medium of claim 9, further comprising instructions that cause the at least one processor to display a user interface corresponding to the identified creditworthiness.

17. A transaction system for determining risk of a transaction, the system comprising:

a user profile database configured to store objective data and subjective data for a user;

a user relationship database configured to store links corresponding to trusted relationships between users;

a transactions database configured to store details of transactions between at least on user having a profile in the user profile database and another user, the transactions database including information on number of transactions, a value of each transaction, number of failed transactions and a value of each failed transaction;

a trust analysis module configured to generate a trust score based on a number of trusted relationships in the user relationship database and a number of disassociated trusted relationships in the user relationship database; and

a risk analysis module configured to generate a risk score based on the trust score and from the transactions database a total number of the transactions, a total value of the transactions, a total number of the failed transactions, and a total value of the failed transactions.

18. The transaction system of claim 17, further comprising a trust graph module, the trust graph module configured to map trusted relationships between users in the user profile database having links corresponding to trusted relationships in the user relationship database.

19. The transaction system of claim 18, wherein the trust graph module is further configured to include the details of the transactions from the transactions database corresponding to the mapped users with the trusted relationships.

20. The transaction system of claim 19, wherein an identity of each user in the user profile database is confirmed by objective information corresponding to the user.