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

• US 7,899,712 B2
• Filed: 01/13/2006
• Issued: 03/01/2011
• Est. Priority Date: 03/17/2000
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: May, Jason, Flint, Ian
• Primary Examiner(s): CAMPEN, KELLY SCAGGS
• Application Number:
  US11/332,068
• Publication Number:
  US 20060116957A1
• Time in Patent Office: 1,873 Days
• Field of Search: 705/26, 705/37, 705/39, 705/40, 705/35, 705/1, 705/38, 705/44, 705/27, 705/36.R, 705/14, 235/380, 235/379
• US Class Current: 705/26.1
• 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. 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 perform an evaluation of a risk level involved in a payment transaction, the risk management system including memory for storing, and one or more processors for executing, a scoring algorithm based on seller-specific criteria; and

a payment processing system configured to process a payment based on the evaluation, wherein timing for release of the payment to the seller varies according to the evaluation.

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

3. 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 party 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.

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

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

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

7. A method of transferring payment to a seller associated with a network-based transaction facility, the method comprising:

using a processor to implement a risk management system to perform an evaluation of a risk level involved in a payment transaction associated with the network-based transaction facility, the evaluation using a scoring algorithm and being based on seller-specific criteria; and

using one or more processors associated with the network-based transaction facility for processing a payment based on the evaluation, wherein timing for release of the payment to the seller varies according to the evaluation.

8. The method of claim 7 wherein the scoring algorithm is further based on buyer-specific criteria, and transaction-specific criteria.

9. The method of claim 7 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 party 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.

10. The method of claim 7 further comprising denying payment processing service based on the evaluation.

11. The method of claim 7 further comprising implementing a payment processing service fee based on the evaluation.

12. The method of claim 7 further comprising restricting a manner in which funds are disbursed to the seller including restricting payment instruments offered for use in the payment transaction based on the evaluation.

13. A non-transitory machine-readable storage medium storing instructions that, when executed by a computer, cause the computer to perform a method comprising:

performing an evaluation of a risk level involved in a payment transaction associated with the network-based transaction facility, the evaluation using a scoring algorithm and seller-specific criteria; and

processing a payment based on the evaluation, wherein timing for release of the payment to the seller varies according to the evaluation.

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

means for evaluating a risk level involved in a payment transaction, the means including memory for storing, and one or more processors for executing, a scoring algorithm and based on seller-specific criteria, and

means for processing a payment based on the evaluation, wherein timing for release of the payment to the seller varies according to the evaluation.

15. The system of claim 14 wherein the means for evaluating includes a risk management system and the means for processing includes a payment processing system.