Method and system for using payment history for conducting commercial transactions

• US 8,175,961 B2
• Filed: 11/17/2006
• Issued: 05/08/2012
• Est. Priority Date: 11/17/2006
• Status: Active Grant

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Reid, William, Maslin, Fredric, Swackhammer, Craig, Belsky, Marc
• Primary Examiner(s): Kazimi, Hani M
• Assistant Examiner(s): Ali, Hatem M
• Application Number:
  US11/561,130
• Publication Number:
  US 20080120218A1
• Time in Patent Office: 1,999 Days
• Field of Search: 705/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/40 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• 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

Abstract

A method is disclosed. The method includes receiving transaction data relating to a plurality of commercial transactions conducted by a plurality of buyers and sellers conducting commercial transactions using a transaction processing system, and then receiving a request for transaction information relating to the received transaction data from an entity, wherein the transaction information also relates to a commercial transaction between a buyer and a seller. The method further includes providing the transaction information to an entity, wherein the entity thereafter makes a decision about further interacting with the buyer or the seller.

Claims

1. a method comprising:

receiving transaction data relating to a plurality of commercial transactions conducted by a plurality of buyers and sellers conducting commercial transactions using a transaction processing system comprising a server computer, wherein the transaction processing system is coupled to a payment processing system which is adapted to process credit and debit card transactions;

receiving, by the transaction processing system comprising the server computer, a request for transaction information relating to the received transaction data from an entity, wherein the transaction information also relates to a commercial transaction between a buyer and a seller; and

determining and providing, by the transaction processing system, the transaction information to the entity, wherein the entity thereafter makes a decision about further interaction with the buyer or the seller,

wherein the transaction information comprises future receivable information and future payable information associated with the buyer or the seller, wherein the entity matches and locks down future payables and receivables associated with the buyer and moves residual funds after the transaction information is provided to the entity, wherein a payment due date is associated with the commercial transaction, and wherein the method further comprises receiving the funds advanced by the entity and then forwarding funds to the seller on an advance payment date prior to the payment due date,

wherein the entity comprises a buyer bank.

2. The method of claim 1 wherein the transaction information comprises risk information, wherein the risk information comprises a risk rating for the buyer or the seller.

3. The method of claim 1 further comprising:

updating a payment history database in the transaction processing system after the commercial transaction is conducted.

8. The method of claim 1 further comprising:

sending a message to the payment processing system, by the transaction processing system, to initiate an authorization request message requesting advance payment to the buyer bank and receive an authorization response message approving of the advance payment, wherein an advance payment is thereafter sent from the buyer bank to a seller bank.

9. The method of claim 1 wherein the payment processing system sends an authorization request message requesting authorization for a funds transfer;

and receives an authorization response message approving of advance payment.

10. The method of claim 9 wherein the payment processing system and the transaction processing system use messaging to initiate the transfer of the funds.

11. The method of claim 10 wherein the transaction information includes information regarding late payments, short payments, and payments declined for insufficient funds.

12. The method of claim 11 wherein the buyer is a buyer-seller entity, which both buys and sells goods or services.

13. The method of claim 10 wherein the transaction information includes information regarding the buyer'"'"'s products and the timeliness of payments for specific products.

14. The method of claim 9 wherein the transaction processing system is used to provide fraud control on receivables.

15. The method of claim 9 wherein the payment processing system performs an authorization process, requesting authorization for a funds transfer from the entity.

16. The method of claim 15 wherein the payment processing system checks the buyer'"'"'s line of credit or funds, and relays to the seller whether or not the buyer has sufficient credit or funds to conduct the commercial transaction.

17. The method of claim 15 wherein the payment processing system performs a clearing and settlement process.

18. The method of claim 1 wherein the buyer and the seller are both buyer-seller entities, which both buy and sells goods or services.

19. The method of claim 1 wherein the buyer is a buyer-seller entity, which both buys and sells goods or services.

20. The method of claim 1 wherein the transaction information comprises raw or processed transaction data relating to the buyer or seller'"'"'s transaction history.

21. The method of claim 20 wherein the transaction information from the transaction processing system is used to make trade decisions.

22. The method of claim 1 wherein the buyer or seller can solicit financing offers in the transaction processing system.

4. A non-transitory computer readable medium comprising code executable by a processor to perform a method, the method comprising:

receiving transaction data relating to a plurality of commercial transactions conducted by a plurality of buyers and sellers conducting commercial transactions using a transaction processing system, wherein the transaction processing system is coupled to a payment processing system which is adapted to process credit and debit card transactions;

receiving a request for transaction information relating to the received transaction data from an entity, wherein the transaction information also relates to a commercial transaction between a buyer and a seller; and

providing the transaction information to the entity, wherein the entity thereafter makes a decision about further interacting with the buyer or the seller,

wherein the transaction information comprises future receivable information and future payable information associated with the buyer or the seller, wherein the entity matches and locks down future payables and receivables associated with the buyer and moves residual funds after the transaction information is provided to the entity, wherein a payment due date is associated with the commercial transaction, and wherein the method further comprises receiving the funds advanced by the entity and then forwarding funds to the seller on an advance payment date prior to the payment due date, wherein the entity comprises a buyer bank.

5. The non-transitory computer readable medium of claim 4 wherein the transaction information comprises risk information, wherein the risk information comprises a risk rating for the buyer or the seller.

6. The non-transitory computer readable medium of claim 4, the method further comprising:

updating a payment history database in the transaction processing system after the commercial transaction is conducted.

7. A server computer comprising a processor, and a non-transitory computer readable medium comprising code executable by the processor to perform a method, the method comprising:

receiving transaction data relating to a plurality of commercial transactions conducted by a plurality of buyers and sellers conducting commercial transactions using a transaction processing system, wherein the transaction processing system is coupled to a payment processing system which is adapted to process credit and debit card transactions;

receiving a request for transaction information relating to the received transaction data from an entity, wherein the transaction information also relates to a commercial transaction between a buyer and a seller; and

providing the transaction information to the entity, wherein the entity thereafter makes a decision about further interacting with the buyer or the seller,

wherein the transaction information comprises future receivable information and future payable information associated with the buyer or the seller, wherein the entity matches and locks down future payables and receivables associated with the buyer and moves residual funds after the transaction information is provided to the entity, wherein a payment due date is associated with the commercial transaction, and wherein the method further comprises receiving the funds advanced by the entity and then forwarding funds to the seller on an advance payment date prior to the payment due date, wherein the entity comprises a buyer bank.