Method and system for facilitating payment of an online auction transaction

• US 7,765,148 B2
• Filed: 02/12/2007
• Issued: 07/27/2010
• Est. Priority Date: 12/30/1999
• Status: Expired due to Fees

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Golub, Matt, Duncan, John, German, Dan A., Morea, Dominic J., Tsuei, Henry T.
• Primary Examiner(s): Poinvil; Frantzy
• Application Number:
  US11/673,731
• Publication Number:
  US 20070136192A1
• Time in Patent Office: 1,261 Days
• Field of Search: 705/1, 705 10- 44, 707/10, 707/100
• US Class Current: 705/37
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• 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 20/40 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 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method for enabling two individual consumers to complete a transaction that includes payment from one consumer (the payor, or buyer) to another consumer (the payee, or seller). An intermediary typically operates the service over a computer network of nodes, such as the Internet. The buyer has the convenience of paying through a variety of different payment instruments. Likewise, the seller has the convenience of receiving payment through a variety of different disbursement instruments. For a fee, the intermediary collects the payment from the buyer and pays the seller. Although the intermediary may receive payment from the buyer before the intermediary transfers the payment to the seller, the intermediary may choose to pay the seller before receiving payment from the buyer. In this case, the intermediary assumes the risk of nonpayment by the buyer. Alternatively, the intermediary may pay a third party that specializes in processing transactions for the payment instrument chosen by the buyer to assume the risk of nonpayment by the buyer. In this case, the intermediary receives a promise of payment from the third party before the intermediary pays the seller. Such a promise of payment from the third party is referred to as an authorization.

Claims

1. A computer-implemented method for facilitating a payment from a buyer operating a buyer computer to a seller operating a seller computer in connection with an online auction transaction utilizing a payment enabling system operated by a payment enabler, wherein the transaction is facilitated by a transaction facilitator comprising a network-accessible auction transaction computer, the computer-implemented method comprising:

receiving, by the payment enabling system, online redirection of the buyer as a party registered with the transaction facilitator in connection with an online auction completed by the transaction facilitator;

communicating, by the payment enabling system to the buyer computer for display to the buyer and following the redirection, information corresponding to a plurality of selectable payment instrument types;

receiving, by the payment enabling system from the buyer computer, information corresponding to a buyer selection of one of the plurality of payment instrument types;

registering, by the payment enabling system on behalf of the buyer, a payment instrument associated with the selected payment instrument type;

receiving, by the payment enabling system from the seller computer in response to a request for the seller to register with the payment enabler, information corresponding to a seller selection of a disbursement instrument type that facilitates payment to the seller by the payment enabling system on behalf of the buyer, wherein the request to register is communicated to the seller computer by the transaction facilitator subsequent to the completion of the online auction;

registering, by the payment enabling system on behalf of the seller and subsequent to the completion of the online auction and the redirection to the payment enabling system, a disbursement instrument associated with the selected disbursement instrument type;

receiving, by the payment enabling system from the transaction computer, a command for a transfer of a predetermined amount of money from the buyer to the seller in connection with a transaction of resulting from the online auction conducted by the transaction facilitator;

effecting, by the payment enabling system, a transfer of at least the predetermined amount of money from the buyer through the registered payment instrument associated with the buyer; and

effecting, by the payment enabling system to the seller, a transfer of a disbursement amount of money through the registered disbursement instrument associated with the seller.

2. The method of claim 1, wherein registering a payment instrument comprises registering a payment instrument prior to the transaction between the buyer and the seller in a static registration process.

3. The method of claim 1, wherein registering a payment instrument comprises registering a payment instrument after the transaction between the buyer and the seller in a dynamic registration process.

4. The method of claim 1, wherein registering a disbursement instrument comprises registering a disbursement after the transaction between the buyer and the seller in a dynamic registration process.

5. The method of claim 1, wherein the auction transaction computer assigns unique user IDs to parties permitted to participate in the auction, and further comprising receiving a unique user ID of the buyer and a unique user ID of the seller upon redirection.

6. The method of claim 5, wherein the auction transaction computer assigns a transaction ID to a transaction between the buyer and the seller, and wherein the command for transfer of money includes the buyer'"'"'s user ID, the seller'"'"'s user ID, and the transaction ID.

7. The method of claim 1, wherein the redirection is effected in response to one of the buyer or the seller choosing a menu option that appears when logging onto a web site associated with the auction transaction facilitator.

8. The method of claim 1, wherein the redirection is effected in response to the activation by one of the buyer or the seller of a hyperlink in an email.

9. The method of claim 1, wherein communicating information and receiving information corresponding to a buyer selection are effected through a web page provided by the payment enabling system.

10. The method of claim 9, wherein the web page provided by the payment enabling system is branded identically with a web page provided by the auction transaction facilitator.

11. The method of claim 1, further comprising generating an electronic invoice in connection with the transaction through a web page provided by the payment enabling system.

12. The method of claim 11, wherein the electronic invoice includes information selected from the group consisting of:

bid price, shipping charges, handling charges, total price, and fees charged by the payment enabler.

13. The method of claim 11, wherein the buyer reviews the electronic invoice by use of a web page provided by the payment enabling system.

14. The method of claim 11, wherein the buyer is informed of the existence of the electronic invoice by access to the buyer'"'"'s account with the transaction facilitator or by email.

15. The method of claim 11, further comprising providing a web page for a buyer to negotiate terms of the invoice via email or via a web page provided by the payment enabling system.

16. The method of claim 1, wherein the buyer provides information to the transaction facilitator indicative of a desire to pay on a transaction via the services of the payment enabler, and further comprising receiving and storing transaction details information from the transaction computer.

17. The method of claim 16, wherein the redirection occurs in response to the provision of the information from the buyer to the transaction facilitator indicative of the desire to pay on the transaction.

18. The method of claim 16, wherein the request to register is communicated by the transaction facilitator through the auction site and following completion of the online auction, and

wherein registering the disbursement instrument comprises registering the disbursement instrument in response to the seller accepting the request to register with the payment enabling system.

19. The method of claim 1, wherein the plurality of payment instrument types are selected from the group consisting of:

flash cash deposit, credit card, electronic fund transaction, virtual private payment account, and paper check.

20. The method of claim 1, wherein the predetermined amount of money from the buyer includes an amount to cover the cost of the payment service provided by the payment enabler, and the disbursement amount of money to the seller comprises an amount of money from the buyer less the cost of the payment service.

21. The method of claim 1, wherein communicating information corresponding to a plurality of selectable payment instrument types to the buyer computer and receiving from the buyer computer information corresponding to a buyer selection of a payment instrument type is effected through an online cash register on behalf of the seller.

22. The method of claim 21, further comprising communicating to the buyer computer via the online cash register information corresponding to the transaction including the specified price, any additional charges, and the total price.

23. A system for facilitating a payment from a buyer to a seller in connection with an online transaction utilizing a payment enabling system operated by a payment enabler, for use in connection with an online auction system including a buyer computer operated by a buyer, a seller computer operated by a seller, and a transaction facilitator comprising a network-accessible auction transaction computer that facilitates transactions between buyers and sellers, the system comprising:

a payment enabling system;

an interface for data communications with the buyer computer;

an interface for data communications with the seller computer;

an interface for data communications with the transaction computer;

the payment enabling system receiving online redirection of the buyer as a party registered with the transaction facilitator in connection with an online auction completed by the transaction facilitator;

the payment enabling system communicating, to the buyer computer for display to the buyer and following the redirection, information corresponding to a plurality of selectable payment instrument types;

the payment enabling system receiving from the buyer computer information corresponding to a buyer selection of one of the plurality of payment instrument types;

the payment enabling system registering, on behalf of the buyer, a payment instrument associated with the selected payment instrument type;

the payment enabling system receiving, from the seller computer in response to a request for the seller to register with the payment enabler, information corresponding to a seller selection of a disbursement instrument type that facilitates payment to the seller by the payment enabling system on behalf of the buyer, wherein the request to register is communicated to the seller computer by the transaction facilitator subsequent to the completion of the online auction;

the payment enabling system registering, on behalf of the seller and subsequent to the completion of the online auction and the redirection to the payment enabling system, a disbursement instrument associated with the selected disbursement instrument type;

the payment enabling system receiving a command from the transaction computer for a transfer of a predetermined amount of money from the buyer to the seller in connection with a transaction resulting from the online auction conducted by the transaction facilitator;

the payment enabling system effecting a transfer of at least the predetermined amount of money from the buyer through the registered payment instrument associated with the buyer; and

the payment enabling system effecting a transfer of a disbursement amount of money to the seller through the registered disbursement instrument associated with the seller.

24. The system of claim 23, wherein the payment enabling system registers the payment instrument prior to the transaction between the buyer and the seller in a static registration process.

25. The system of claim 23, wherein the payment enabling system registers the payment instrument after the transaction between the buyer and the seller in a dynamic registration process.

26. The system of claim 23, wherein the payment enabling system registers the disbursement instrument after the transaction between the buyer and the seller in a dynamic registration process.

27. The system of claim 23, wherein the auction transaction computer assigns unique user IDs to parties permitted to participate in the auction, and wherein the payment enabling system receives a unique user ID of the buyer and a unique user ID of the seller upon redirection.

28. The system of claim 27, wherein the auction transaction computer assigns a transaction ID to a transaction between the buyer and the seller, and wherein the command for transfer of money includes the buyer'"'"'s user ID, the seller'"'"'s user ID, and the transaction ID.

29. The system of claim 23, wherein the redirection is effected in response to one of the buyer or the seller choosing of a menu option that appears when logging onto a web site associated with the auction transaction facilitator.

30. The system of claim 23, wherein the redirection is effected in response to the activation by one of the buyer or the seller of a hyperlink in an email.

31. The system of claim 23, wherein the communication of information and receiving of information corresponding to a buyer selection are effected through a web page provided by the payment enabling system.

32. The system of claim 31, wherein the web page provided by the payment enabling system is branded identically with a web page provided by the auction transaction facilitator.

33. The system of claim 23, wherein the payment enabling system further generates an electronic invoice in connection with the transaction through a web page provided by the payment enabling system.

34. The system of claim 33, wherein the electronic invoice includes information selected from the group consisting of:

bid price, shipping charges, handling charges, total price, and fees charged by the payment enabler.

35. The system of claim 33, wherein the buyer reviews the electronic invoice by use of a web page provided by the payment enabling system.

36. The system of claim 33, wherein the buyer is informed of the existence of the electronic invoice by access to the buyer'"'"'s account with the transaction facilitator or by email.

37. The system of claim 33, wherein the payment enabling system further provides a web page for a buyer to negotiate terms of the invoice via email or via a web page provided by the payment enabling system.

38. The system of claim 23, wherein the buyer provides information to the transaction facilitator indicative of a desire to pay on a transaction via the services of the payment enabler, and wherein the payment enabling system further receives and stores transaction details information from the transaction computer.

39. The system of claim 38, wherein the redirection occurs in response to the provision of the information from the buyer to the transaction facilitator indicative of the desire to pay on the transaction.

40. The system of claim 38, wherein the transaction facilitator communicates the request to register through the auction site and following completion of the online auction, and

wherein the disbursement instrument is registered in response to the seller accepting the request to register with the payment enabling system.

41. The system of claim 23, wherein the plurality of payment instrument types are selected from the group consisting of:

flash cash deposit, credit card, electronic fund transaction, virtual private payment account, and paper check.

42. The system of claim 23, wherein the predetermined amount of money from the buyer includes an amount to cover the cost of the payment service provided by the payment enabler, and the disbursement amount of money to the seller comprises an amount of money from the buyer less the cost of the payment service.

43. The system of claim 23, wherein the payment enabling system communications information corresponding to a plurality of selectable payment instrument types to the buyer computer and receives from the buyer computer information corresponding to a buyer selection of a payment instrument type through an online cash register provided on behalf of the seller.

44. The system of claim 43, wherein the payment enabling system communicates to the buyer computer via the online cash register information corresponding to the transaction including the specified price, any additional charges, and the total price.