U.S. patent application number 11/966830 was filed with the patent office on 2009-07-02 for universal funding card and delayed assignment of a funding instrument for a financial transaction.
Invention is credited to George Lee, Hugo Olliphant.
Application Number | 20090171843 11/966830 |
Document ID | / |
Family ID | 40799697 |
Filed Date | 2009-07-02 |
United States Patent
Application |
20090171843 |
Kind Code |
A1 |
Lee; George ; et
al. |
July 2, 2009 |
UNIVERSAL FUNDING CARD AND DELAYED ASSIGNMENT OF A FUNDING
INSTRUMENT FOR A FINANCIAL TRANSACTION
Abstract
A universal funding card and the delayed assignment of a funding
instrument for a financial transaction are described herein. In one
embodiment, a system for facilitating a financial transaction
comprises a communications interface; a database storing data
regarding a user and a plurality of funding instruments associated
with that user; and a payment processing system configured to
receive a request for payment authorization from a merchant via the
communications interface, to authorize payment to the merchant
prior to selection of a funding instrument, and after authorizing
payment to the merchant, receive instructions regarding a funding
instrument to debit for the payment.
Inventors: |
Lee; George; (Mountain View,
CA) ; Olliphant; Hugo; (San Francisco, CA) |
Correspondence
Address: |
Haynes and Boone, LLP;IP Section
2323 Victory Avenue, SUITE 700
Dallas
TX
75219
US
|
Family ID: |
40799697 |
Appl. No.: |
11/966830 |
Filed: |
December 28, 2007 |
Current U.S.
Class: |
705/44 |
Current CPC
Class: |
G06Q 20/356 20130101;
G06Q 20/204 20130101; G06Q 20/12 20130101; G06Q 20/40 20130101;
G06Q 20/24 20130101 |
Class at
Publication: |
705/44 |
International
Class: |
G06Q 20/00 20060101
G06Q020/00 |
Claims
1. A system for facilitating a financial transaction, comprising: a
database storing data regarding a user and a plurality of funding
instruments associated with that user used for the purchase of one
or more items; and a payment processing system configured to
receive a request for payment authorization from a merchant for the
purchase of the one or more items via a communications interface,
authorize payment to the merchant prior to selection of a funding
instrument by the user, and after payment to the merchant receive
instructions regarding assignment of the funding instrument to
debit for the payment.
2. The system of claim 1, wherein the payment processing system is
configured to permit one of assignment or delayed assignment of the
funding instrument at the time of purchase of the one or more
items.
3. The system of claim 1, wherein the payment processing system is
configured to permit immediate receipt of a partial payment for one
or more items purchased, and the delayed assignment of the funding
instrument for the receipt of the remaining payment of the one or
more items purchased.
4. The system of claim 1, wherein the financial transaction is
conducted over a network.
5. The system of claim 4, wherein the payment processing system is
configured to receive a request for the purchase of the one or more
items and provide payment to the merchant for the one or more items
purchased via the network.
6. The system of claim 5, wherein payment processing system is
adapted to provide periodic statements requesting assignment of a
funding instrument for each financial transaction, and debits the
assigned funding instrument based on the assignment.
7. A network payment processing system comprising: a payment
processing computer configured to enable the system to receive via
a communication interface a purchase request for one or more items,
one or more processors adapted to execute instruction stored on one
or more memory components of the payment processing system to
authorize the immediate purchase of the one or more items, and at
least one of the one or more memory components for storing data
relating to the purchase request to permit the delayed assignment
of a funding instrument used for payment of the one or more items
until after at the time of purchase.
8. The system of claim 7, further configured to permit an immediate
partial payment of one or more items purchased, and the delayed
assignment of the funding instrument for the remaining payment of
the one or more items purchased.
9. The system of claim 7, further configured to request assignment
of the funding instrument for the one or more items purchased after
the purchase of the one or more items.
10. The system of claim 9, further configured to assign the funding
instrument, and debit the assigned funding instrument based and the
assignment after the purchase of the one or more items.
11. A payment provider system implemented method for facilitating a
financial transaction, the method comprising; receiving a purchase
request for one or more items; processing the purchase request; and
authorizing the purchase of the one or more items prior to the
assignment of a funding instrument for the payment of the one or
more items, wherein the method is performed by one or more
processors of the payment provider system adapted to execute
instructions on one or more memory components of the payment
provider system.
12. The method of claim 11, further permitting an immediate partial
payment of one or more items purchased, and the delayed assignment
of the funding instrument for the remaining payment of the one or
more items purchased.
13. The method of claim 11, further including requesting assignment
of the funding instrument for the purchase of the one or more
items.
14. The method of claim 13, further including assigning the funding
instrument, and debiting the assigned funding instrument based on
the assignment.
15. A payment provider system implemented method for facilitating a
financial transaction over a network, the method comprising:
receiving a purchase request for one or more items over the
network; processing the purchase request; authorizing the immediate
purchase of the one or more items; providing compensation for the
one or more items at the time of purchase; and delaying assignment
of a funding instrument for the payment of the one or more items
purchased until after the purchase, wherein the method is performed
by one or more processors of the payment provider system adapted to
execute instructions on one or more memory components of the
payment provider system.
16. The method of claim 15, further permitting an immediate partial
payment of one or more items purchased, and the delayed assignment
of the funding instrument for the remaining payment of the one or
more items purchased.
17. The method of claim 15, further including requesting assignment
of the funding instrument for the purchase of the one or more
items.
18. The method of claim 17, further including assigning the funding
instrument, and debiting the assigned funding instrument based on
the assignment.
19. A universal funding card having contained thereon data relating
to one or more funding instruments that facilitates payment to a
merchant for an item offered for sale, as well as an immediate
assignment of one of the one or more of the funding instruments for
partial payment at the time of purchase, and/or a delayed
assignment of the one or a different one of the one or more of the
funding instruments for final payment until after the purchase.
20. (canceled)
Description
BACKGROUND
[0001] 1. Field of the Invention
[0002] The present disclosure relates generally to financial
transactions and more particularly to a universal funding card and
the delayed assignment of a funding instrument for a financial
transaction.
[0003] 2. Related Art
[0004] In many instances, customers shopping for products and/or
services directly from a merchant will typically fund the
face-to-face purchases of those goods and services with a funding
instrument such as a credit or debit card (cash or check).
Customers will typically carry any number of credit cards to
satisfy a variety of accounting purposes including one or more
cards for business related purchases and one or more cards for
personal related purchases. Accordingly, in addition to being
cumbersome and inconvenient, carrying or being in possession of
many cards at one time substantially increases the risk of the card
being lost or stolen. There is also the possibility that some forms
of payment are not accepted by the merchant (e.g. American Express,
personal checks, etc). Furthermore, having to make an on-the-spot
decision as to which card to use for which purchase may be
confusing and pose a financial risk for many individuals. In this
regard, many credit cards include joint accounts that may be
accessed and utilized by two or more individuals. As such, accurate
knowledge of associated balances for one or more cards at any given
time may be difficult if not impossible.
[0005] Likewise, customers may search for and purchase products
and/or services through electronic communications with online
merchants over electronic networks such as the Internet. During the
course of these transactions, customers may provide payment for
items in various ways including, for example, credit cards,
electronic fund transfers, and other payment schemes offered by
service providers. Similar to their direct purchase counterparts,
online customers may encounter confusion, indecision, and financial
risk as they must decide at the time of purchase which funding
instrument to use for each purchase and whether or not the funding
instrument is sufficiently funded to avoid overdraft and other
penalties.
[0006] Accordingly, there exists a need for a universal funding
card and the delayed assignment of a funding instrument for a
financial transaction.
SUMMARY
[0007] For purposes of summarizing the disclosure, exemplary
embodiments for a universal funding card and the delayed assignment
of a funding instrument for a financial transaction have been
described herein.
[0008] In one embodiment, a system for facilitating a financial
transaction comprises a communications interface; a database
storing data regarding a user and a plurality of funding
instruments associated with that user; and a payment processing
system configured to receive a request for payment authorization
from a merchant via the communications interface, to authorize
payment to the merchant prior to selection of a funding instrument,
and after authorizing payment to the merchant, receive instructions
regarding a funding instrument to debit for the payment.
[0009] In another embodiment, a network payment processing system
configured to receive a purchase request for one or more items,
authorize the immediate purchase of the one or more items, and
permit the delayed assignment of a funding instrument at the time
of purchase for the one or more items is disclosed.
[0010] In still another embodiment, a method for facilitating a
financial transaction comprises receiving a purchase request;
processing the purchase request; and authorizing the purchase of
the one or more items prior to the assignment of a funding
instrument for the payment of the one or more items.
[0011] These and other embodiments will become readily apparent to
those skilled in the art form the following detailed description of
the various embodiments having reference to the attached figures,
the invention not being limited to any particular preferred
embodiment(s) disclosed.
BRIEF DESCRIPTION OF THE DRAWINGS
[0012] FIG. 1 shows a block diagram of a known networked system
configured to facilitate online transactions with a funding
instrument.
[0013] FIG. 2 shows a block diagram of a universal funding card
method for a financial transaction in the networked system of FIG.
1 in accordance with one embodiment.
[0014] FIG. 3 shows a block diagram of a delay assignment of a
funding instrument method in a financial transaction in the network
system of FIG. 1 in accordance with one embodiment.
[0015] FIG. 4 shows a method for a delayed assignment of a funding
instrument in a financial transaction with reference to a client in
accordance with one embodiment.
[0016] FIG. 5 shows a method for a delayed assignment of a funding
instrument in a financial transaction with reference to a payment
provider in accordance with one embodiment.
[0017] Embodiments of the invention are understood by referring to
the detailed description that follows. It should be appreciated
that like reference numerals are used to identify like elements
illustrated in one or more of the figures, wherein showings therein
are for purposes of illustrating embodiments of the invention and
not for purposes of limiting the same.
DETAILED DESCRIPTION
[0018] Exemplary embodiments will now be described with references
to the accompanying figures, wherein like reference numbers refer
to like elements throughout. The terminology used in the
description presented herein is not intended to be interpreted in
any limited or restrictive manner simply because it is being
utilized in conjunction with a detailed description of certain
embodiments. Furthermore, various embodiments (whether or not
specifically described herein) may include novel features, no
single one of which is solely responsible for its desirable.
[0019] Embodiments of the present disclosure enable users to
overcome the inconvenience, confusion, indecision, and financial
risk typically associated with the possession and/or use of
multiple funding instruments for the real-time purchase of products
and/or services by providing a universal funding card and the
delayed assignment of a funding instrument for a financial
transaction.
[0020] Embodiments of the present disclosure are described herein
as they relate to a financial transaction as it may occur in an
electronic payment system environment. An electronic payment system
is generally considered as any kind of network service that
includes the exchange of money for goods or services. Such network
payment system includes, for example, a credit and/or debit card
processing system. For convenience, simplicity, and efficiency the
present disclosure is described relative to and online or web-based
transaction. However, persons of ordinary skill in the art will
understand that the teachings of the present disclosure apply
equally to financial transactions that occur directly between a
buyer and a merchant such as in a face-to-face transaction that may
occur in department store or similar type business environment.
[0021] In one embodiment, the network may be implemented as a
single network or a combination of multiple networks. For example,
in various embodiments, the network may include the Internet
and/one or more intranets, landline networks, wireless networks,
and/or other appropriate types of communication networks. In other
example, the network may comprise a wireless telecommunications
network (e.g., cellular phone network) adapted to communicate with
other communication networks, such as the Internet.
[0022] In one known scheme, as generally shown in FIG. 1, besides a
client system 5 (also referred to as a "user" system herein), a
merchant system 10, and a merchant provided website 15 for the sale
of goods and/or services, the flow of information and money between
the parties in a credit card system 20 occurring along a network 25
such as the Internet, generally includes several intermediaries
involved in a typical credit card transaction.
[0023] Generally, in the credit card system 20, a customer 2 (also
referred to as a "user", "buyer", "client", or "cardholder" herein)
is issued credit 30 after an account has been approved by a credit
provider or issuer 35 such as a financial institution or other
organization. The credit provider 35 registers the cardholder 2,
issues a credit card(s), and operates a card account to which
payments can be charged. The cardholder 2 is able to make purchases
with the credit card for products and/or services from a merchant
accepting that credit card up to a pre-established credit
limit.
[0024] By one definition, credit card interchange is the process by
which all parties involved in a credit card transaction manage the
processing, clearing and settlement of credit card transactions,
including the assessment, and collection and/or distribution of
fees between parties.
[0025] In this regard, the cardholder 2 chooses one of multiple
funding instruments 40, such as a credit card, to pay for the
purchase and the merchant submits the transaction for authorization
45. The issuing bank or credit provider 35 has up-to-date
information on the customer's account status. However, as there are
many banks that issue credit cards, it would be inconvenient if
each merchant had to figure out which bank issued the card and
contact the bank for credit card verification. Accordingly, a
financial institution or other organization (acquirer) 50 acting as
a payment provider, processor, or gateway may provide card services
to the merchant. In this regard, to process credit cards in
real-time, merchants establish a connection from their website 15
to the payment processing system 50. Gateway connections may be
made by developing in-house solutions, or by contracting with an
outsourced payment processing system 50 having an application
programming interface (API) for card verification and processing
service to the merchant 10. The APIs are generally HTTP or TCP/IP
based and provide a relatively simple interface to communicate with
the merchant's application software.
[0026] In this regard, a payment processing system 50 such the
system provided by PayPal Inc. of San Jose, Calif., USA may act as
the payment provider gateway between the buyer and seller
(merchant) to provide payment processing for online transactions on
behalf of the buyer so that the buyer never has to expose his
payment information directly to the seller. Instead the buyer
registers his credit card or bank account with the payment
processing system 50, maps the account to an email address, and
then uses the payment processing system 50 to make purchases when
redirected 60 to the payment processing system 50 from the
merchant's site 15. Upon completion of the purchase the buyer is
directed back to the merchant's site 15 to an order confirmation
page
[0027] In this regard, the payment processing system 50 may include
one or more payment applications 56 and user and/or merchant
accounts 57, which may be configured to interact with the client
system 5 and/or each of the merchant servers 10 over the network 25
to facilitate the purchase of items, products and/or services by
the user 2 from the merchant server 10.
[0028] The payment processing system 50 receives the credit card
data, validates 65 the card, and communicates with the credit
provider's system 35 to verify the amount for the transaction is
available in the customer's account 70. If the card is good and the
funds are available, the payment processing system 50 sends an
approved message back to the merchant. If the card is bad or if
funds are not available, the payment processing system 50 sends a
declined message back to the merchant. After the transaction is
authorized 45 it is then stored in a batch, which the merchant
sends to the payment processing system 50 later to receive
payment.
[0029] As transactions (payments and credits) arrive at the payment
processing system 50, they are batched 75 through to the
appropriate clearinghouse or card association 80. In this case, the
customer 2 may get a message from the website 15 stating their
order was received and will be processed. Later, the system 20
might send the customer 2 an e-mail with notification of a
successful card authorization (or failure). As the clearinghouse 80
receives transactions from all the gateways, the clearinghouse
batch the transactions for all the banks involved, debiting monies
85 from the customer's bank (credit provider) 35 and crediting 90
the merchant's bank 95.
[0030] The issuer 35 charges the cardholder's account 70 at regular
intervals and notifies the cardholder 2 of the transactions and
accumulated charges. The cardholder 2 pays 30 the corresponding
charges to the issuer 35.
[0031] Persons of ordinary skill in the art will understand that
although each of the tasks in the credit card interchange may be
performed by a different entity, one or more of the tasks may be
done by a single entity. For example, the task of issuing credit
may be done by a credit provider, while the tasks of establishing
and maintaining a merchant's account, authorization, and clearing
and settlement may all be done by a full-service third-party
processing company or commerce service provider (CSP).
[0032] As indicated above, unfortunately, when making real-time
point of sale purchases consumers are often forced to make hasty
decisions regard which card and account type to use to make the
purchase. Furthermore, it is often difficult or inconvenient for
customers to determine whether sufficient funds are available to
make a certain purchases while visiting a merchant's website 15.
For example, it is typically incumbent on customers to access their
personal financial records, or visit a separate financial website
in order to ascertain the current account balance associated with a
desired method of payment. These additional steps can detract from
the customer's online experiences and inconvenience consumers when
malting online purchases. In addition, the inability to ascertain
whether sufficient funds are available may result in overdraft or
other associated fees for purchases made when funds are unavailable
at the time of purchase.
[0033] For merchants, such inconveniences can translate into
potential lost sales to the extent that otherwise willing customers
are deterred from completing online transactions. In particular, if
customers are forced to visit other websites or retrieve
locally-stored records before engaging in online transactions,
customers may become distracted or attracted to a merchant's
competitors while taking such actions.
[0034] The present disclosure addresses, among other things, the
problem of having to decide at the time of purchase which funding
instrument(s) to use to make a particular purchase by providing a
universal funding card and the complete or partial delayed
assignment of a funding instrument(s) for a financial
transaction.
[0035] A block diagram of a universal funding card method for a
financial transaction in the networked system of FIG. 1 in
accordance with one embodiment is shown in FIG. 2. Other than the
use of a universal funding card to make real-time purchases,
delayed assignment of a funding instrument for a financial
transaction, eventual assignment of the funding instrument, and
debiting of the assigned funding instrument based on the
assignment, the interchange process described above in regard to
the use of a credit card including authorization, batching,
clearing and settlement, and funding generally remains the
same.
[0036] In one embodiment, the client system 5 may include one or
more browser applications 6 which may be used, for example, to
provide a user interface to permit the user 2 to browse information
available over the network 25. For example, the browser application
6 may be implemented as a web browser to view information available
over the Internet.
[0037] The client system 5 may include one or more toolbar
applications 7, which may be used, for example, to provide
client-side processing for performing tasks in response to
operations selected by the user 2. For example, the toolbar
application 7 may display a graphical user interface (GUI) in
connection with the browser application 6.
[0038] The client system 5 may further include a service
application 8 for facilitating financial transactions on the
network 25 and other applications 9 to provide additional features
to the user 2. In one implementation, the service application 8
comprises a software program, such as a graphical user interface
(GUI), executable by a processor that is configured to interface
and communicate with the one or more merchant servers 10 and the
payment processing system 50 via the network 25. The user 2 is able
to access merchant websites 15 via merchant servers 10 to view and
select items for purchase, and the user 2 is able to purchase
selected items from merchants by communicating with the payment
processing system 50.
[0039] When installed and executed by the client system 5, the
service application 8 may be configured to provide and display a
payment mechanism, such as an image or icon, on the display
component (e.g., monitor) of the client system 5.
[0040] In one embodiment, the one or more merchant servers 10 may
be maintained, for example, by one or more merchants offering one
or more items, such as products and/or services, in exchange for
financial payment to be received from users, such as the user 2 or
from the payment processing system 50 acting on behalf of the user
2, over the network 25. In this regard, each of the one or more
merchant servers 10 may include a database 16 for identifying
available products and/or services, which may be made available to
the client system 5 for viewing and purchase by the user 2.
Accordingly, each of the merchant servers 10 may include a
marketplace application 17, which may be configured to provide
information over the network 25 to the browser application 6 of the
client system 5. For example, the user 2 may interact with the
marketplace application 17 through the browser application 6 over
the network 25 to search and view various items, products and/or
services identified in the database 6.
[0041] Each of the one or more merchant servers 10 may include a
checkout application 18, which may be configured to facilitate
online purchase transactions by the user 2 of products and/or
services identified by the marketplace application 17. In this
regard, the checkout application 18 may be configured to accept
payment information from the user 2 and/or from payment processing
system 50 over the network 25.
[0042] The one or more merchant servers 10 may include one or more
merchant identifiers 19, which may be included as part of the one
or more items made available for purchase so that particular items
are associated with a particular merchant. The merchant identifier
19 may include attributes related to the merchant, such as business
and banking information. In various implementations, the merchant
identifier 19 may be passed with a user purchase request to the
payment processing system 50 when the user 2 selects an item for
purchase, and the merchant identifier 19 may be used by the payment
processing system 50 to associate a particular item purchased with
a particular merchant account 110 maintained by the payment
processing system 50.
[0043] In one embodiment, as shown in FIG. 2, a user 2 is issued a
universal funding card (UFC) 100 that is used to complete a product
and/or service purchase. Upon selection of a product and/or service
the UFC 100 is swiped at a point-of-sale terminal in a direct
financial transaction or the UFC card number is entered at a
merchant's website 15. In the case of an online transaction,
entering the UFC card number at the merchant's website 15 redirects
the user to the payment processing system 50 where the user 2 is
given a choice of complete or partial assignment of a funding
instrument 105 for the financial transaction at the time of
purchase and/or the complete or partial delayed assignment of the
funding instrument for the financial transaction until some later
date. In either case, the products and/or services are purchased by
the user 2 immediately, i.e., in real-time, while the choice of one
or more funding instruments for the financial transaction may or
may not be delayed.
[0044] Funding instruments 105 made available to the user 2 are
embedded on one or more lines of the magnetic card stripe found on
the UFC 100. Funding instruments 105 for purchase and immediate
assignment of the funding instrument for the financial transaction
may include, but are not limited to, a bank account, gift
certificate, debit account, credit card account, and/or other
account such as a designated business or personal account. When one
or more funding instruments 105 are assigned at the time of
purchase the payment processing system 50 processes the user's
assigned funding instrument 105 as generally detailed above in
regarding the a credit card interchange. Accordingly, the funding
instrument 105 is authorized, and funds are cleared, settled, and
distributed to the merchant's account 110 and debited from the
user's account 70 (see FIG. 1).
[0045] In one embodiment, by choosing an appropriate icon, for
example, a "remind me later" (delayed assignment option) icon, the
user 2 may choose to purchase a product and/or service but delayed
assignment of a funding instrument 105 for a financial transaction
until some later date which may be set or established by the
payment processing system 50. In this regard, the user 2 may decide
at the time of purchase to delay assignment of one or more funding
instruments 105 for the payment of the one or more items purchased
to some later date. Alternatively, the user 2 may decide to make a
partial assignment of one or more funding instruments 105 for the
payment of the one or more items and delay assignment of one or
more funding instrument 105 for the remaining payment of the one or
more items purchased.
[0046] Authorization (acceptance or decline) for such a delayed
assignment of a funding instrument may be based on such factors as
credit worthiness, payment history, cash reserves, etc., and
determined by an acceptance logic application. Upon authorization,
the products and/or services are purchased by the user 2.
[0047] As shown in FIG. 3, data 117 relating to each of the
financial transactions opted by the user 2 for complete or partial
delayed assignment of a financial instrument is communicated from
the one or more merchant servers 10 to the payment processing
system 50 where the data 117 may be stored in a purchase database
120. Such data 117, which may be contained in the merchant
identifier 19, may include identification of the product and/or
service purchased, cost or amount owed, and merchant
information.
[0048] At regular intervals, perhaps monthly, a financial
transaction or purchase statement 125 indicated the data of each
financial transaction(s) in which delayed assignment of a financial
instrument was chosen during the purchase of a product and/or
service may be communicated 130 to the user 2.
[0049] Upon receipt of the periodic purchase statement 125 the user
2 is able to review finances, account information including
balances, as well as make appropriate funding deposits,
withdrawals, and/or transfers to various accounts prior to
assigning one or more funding instruments 105 to each of the
financial transaction(s) contained in the purchase statement 125.
Of course, the user 102 may also make a deposits, withdrawal, and
payments to one or more of the funding instrument accounts at
anytime prior to receiving purchase statement 125. In this manner,
the user 2 is better able to evaluate and decide on which funding
instrument 105 to assign for each financial transaction to better
manage business and personal finances, as well as potentially
avoiding overdraft and other penalties when compared to the
immediate real-time assignment of a funding instrument for a
financial transaction.
[0050] The user 2 then communicates 135 back to the payment
processing system 50 the desired assignment of the one or more
funding instruments 105 for each financial transaction in which the
complete or partial delay assignment of the funding instrument was
chosen. The payment processing system 50 then debits the
corresponding funding instrument account accordingly, and
communicates 140 to the user 2 information regarding financial
activities for each funding instrument account in subsequent
account statements 145 or in a single accounts summary statement
150.
[0051] Accordingly, in one embodiment, funds for purchase of the
selected products and/or services in the delayed assignment of a
funding instrument are distributed immediately to the merchant's
account 110 from an account maintained by the payment processing
system 50. Accounting of such distributions are tracked by the
payment processing system 50 until the user 102 assigns a funding
instrument, at which time, funds are debited from the designated
funding instrument account of the user 102 and distributed into the
account maintained by the payment processing system 50.
[0052] In another embodiment, an initial default funding instrument
may be assigned by user 102 so that funds for a particular purchase
may be distributed to the merchant within a reasonable time. In
this regard, the user 102 may do nothing and funds from the initial
default account would be withdrawn as required and paid to the
merchant within a predetermined time limit. Alternatively, if,
within the predetermined time limit the user 102 wanted to reassign
the purchase to another funding instrument, the user 102 may do so
and the funds for the purchase would be debited from the
alternative funding account and distributed to the merchant.
[0053] FIG. 4, shows a method 400 for a delayed assignment of a
funding instrument in a financial transaction with reference to a
user in accordance with one embodiment.
[0054] As previously discussed, the service application 8 allows
the client device 5 to communicate with one or more of the merchant
servers 15 via the network 25 to select items for purchase and
further communicate with the payment processing system 50 to
process online purchase requests and/or transactions for items
selected for purchase.
[0055] In one embodiment, upon user instruction, the service
application 8 may be installed and/or run on the client system 5
(block 405) to access at least one merchant website 15 via a
related merchant server 15 (block 410) to search the accessed
merchant website 15 and view one or more items for purchase (block
415). In one embodiment, upon installation, the user 2 may be
prompted to establish a user account 57 with the payment processing
system 50, wherein the user 2 may use the client system 5 to access
the payment processing system 50 via the network 25. When
establishing a user account 57, the user 2 may be asked to provide
personal information, such as name, address, phone number, etc.,
and financial information, such as banking information, credit card
information, etc.
[0056] Next, the user 2 may generate a purchase request for at
least one item by selecting the at least one item (block 420) from
the merchant's site 15. Methods of item selection (product and/or
service) and communication of the purchase request including user
information, merchant information, and selected item information to
the payment processing system 50 for payment processing is
generally well-known in the art. It should be appreciated by those
skilled in the art that more than one item may be selected for
purchase prior to completing the online purchase transaction as
well as deciding whether to assign a single funding instrument or
multiple funding instruments at the time of purchase or delaying
complete or partial assignment of the one or more funding
instruments. For example, a plurality of items may be selected and
placed in a virtual shopping cart and then purchased in a single
online purchase transaction.
[0057] At this point, the user 2 is given a choice of assigning a
funding instrument 105 at the time of purchase or delaying the
assignment of the funding instrument (block 425). In other words,
even though the items are purchased in real-time, the user may
decide to delay assignment of a funding instrument of the financial
transaction. As explained below, even though one or more items may
have been purchased in a single financial transaction, the
subsequent assignment of funding instrument may include multiple
funding instruments including one or more funding instruments for
each item purchased.
[0058] In either case of assigning a funding instrument or delaying
assignment of the funding instrument, the user 2 may provide user
identification or at least verify the user identification for a
related user account 57 stored in payment processing system 50 so
that authorization (acceptance or decline) for the financial
transaction by the payment processing system 50 can be completed.
Once proper user identification is provided and/or verified, the
online purchase transaction may be completed (blocks 430 and
440).
[0059] As indicated above, at regular intervals, perhaps monthly, a
financial transaction or purchase statement 125 indicated the data
of each financial transaction(s) in which complete or partial
delayed assignment of a financial instrument was chosen during the
purchase of a product and/or service is received by the user 2
(block 450). The user 2 then transmits, communicates, or otherwise
sends back to the payment processing system 50 the desired
assignment of the one or more funding instruments 105 for each of
the one or more items purchased in each of the one or more
financial transaction in which the complete or partial delay
assignment of the funding instrument (block 460) was indicated.
[0060] FIG. 5 shows a method 500 for a delayed assignment of a
funding instrument in a financial transaction with reference to a
payment processing system in accordance with one embodiment. As
shown in FIG. 5, the payment processing system 50 receives a
purchase request from the user 2 via the client system 5 (block
505). As previously discussed in reference to FIG. 4, the user 2
will typically begin an online transaction by selecting an item for
purchase which initiates the user purchase request with the payment
processing system 50.
[0061] Upon receiving the user purchase request (block 505), the
payment processing system 50 may determine whether the user 2 is an
existing user having an established user account 57 by, for
example, checking a user account list in a user account database
(block 510). If the user 2 does not have an established user
account, then the payment processing system 50 may prompt the user
2 to establish a user account 57 by providing user information
(block 520), and the payment processing system 50 uploads the
service application 8 to the client system 5 so that the user 2 may
install and run the service application 8 on client system 5 (block
530). Once the service application 8 is installed and run on the
client device 5, the payment processing system 50 processes the
purchase information provided in the user purchase request (block
550).
[0062] Otherwise, if the user 2 is determined to be an existing
user by the payment processing system (block 510), then the payment
processing system 50 verifies the user account and user
identification information provided by user 2 in the user purchase
request (block 515). For example, as previously discussed, the user
2 may be prompted to provide user identification to purchase any
selected items and complete the online transaction. Next, the
payment processing system 50 may determine if the user account is
current and active (block 540). In some instances, a user's account
information may need to be updated, and thus, the payment
processing system 50 may prompt the user 2 to update user account
information in the user account 57 for the user 2 (block 560). If
the user account 57 is current and active, then the payment
processing system 50 processes the purchase information in the user
purchase request (block 550). It should be appreciated by those
skilled in the art that the payment processing system 50 may cancel
the online purchase transaction at any point in the process if it
is determined, for example, that the user 2 enters wrong
information.
[0063] The purchase information may include information related to
the item selected for purchase, information related to the merchant
providing the item selected for purchase, information related to
the user including user account number, balance information, credit
card information, etc. In one implementation, the payment
processing system 50 may optionally access the merchant site 15 via
the merchant server 10 to verify purchase information including
verifying that the selected item is available (e.g., in stock),
verifying the pricing information, verifying that the merchant
account is up-to-date, etc.
[0064] The payment processing system 50 then determines if the user
2 has assigned a funding instrument 105 or chosen complete or
partial delayed assignment of the funding instrument (block 570).
In either case, authorization (acceptance or decline) for the
financial transaction by the payment processing system 50 may be
completed by verifying user information and account 57 details
stored in the payment processing system 50. Once proper user
identification is provided and/or verified, the online purchase
transaction may be completed (blocks 580 and 590). In one example
embodiment, completing the purchase request may include redirecting
the user 2 to a page on the merchant site 15 that confirms their
purchase of the selected product to provide, for example, a receipt
to the user 2.
[0065] Data 117 relating to each of the financial transaction(s)
chosen for delayed assignment of a funding instrument 105 is stored
in a purchase database 120 (block 595). Such data 117, which may be
contained in the merchant identifier 19, may include identification
of the product and/or service purchased, cost or amount owed, and
merchant information.
[0066] At regular intervals, perhaps monthly, a financial
transaction or purchase statement 125 indicated the data 117 of
each financial transaction(s) in which delayed assignment of a
financial instrument was chosen during the purchase of a product
and/or service may be communicated 130 to the user 2 (block
596).
[0067] The payment processing system 50 receives back from the user
2 the assignment of the one or more funding instruments 105 for
each item of each financial transaction in which the delay
assignment of the funding instrument was chosen (block 597). The
payment processing system 50 then debits and/or credits the
corresponding funding instrument account(s), and communicates 140
to the user 2 information regarding financial activities for each
funding instrument account in corresponding account statements 145
or in a single accounts summary statement 150 (block 599).
[0068] Although the method(s)/step(s) are illustrated and described
herein as occurring in a certain order, the specific order, or any
combination or interpretation of the order, is not required.
Obvious modifications will make themselves apparent to those of
ordinary skill in the art, all of which will not depart from the
essence of disclosed subject matter, and all such changes and
modifications are intended to be encompassed within the appended
claims.
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