U.S. patent application number 12/911139 was filed with the patent office on 2011-02-17 for interbank process.
This patent application is currently assigned to eDEPOSIT Corporation. Invention is credited to Norman Understein.
Application Number | 20110040683 12/911139 |
Document ID | / |
Family ID | 22865146 |
Filed Date | 2011-02-17 |
United States Patent
Application |
20110040683 |
Kind Code |
A1 |
Understein; Norman |
February 17, 2011 |
Interbank Process
Abstract
In transactions between a consumer and a merchant where a
merchant requires a deposit for participation, a method and system
are provided for intermediating the transaction. The system enables
a consumer to secure the required deposit amount for the
transaction with funds deposited in one of a bank account or a
special deposit account. Fees are generated based on a percentage
of the deposit amount secured with the deposited funds and/or by
providing an interest rate on funds deposited in the special
deposit account with a fixed spread from a bank interest rate. The
system assures merchants that deposit funds have been reserved for
a particular transaction, and enables consumers to participate in
such transactions without requiring an actual transfer of
funds.
Inventors: |
Understein; Norman;
(Potomac, MD) |
Correspondence
Address: |
NIXON & VANDERHYE, PC
901 NORTH GLEBE ROAD, 11TH FLOOR
ARLINGTON
VA
22203
US
|
Assignee: |
eDEPOSIT Corporation
Silver Spring
MD
|
Family ID: |
22865146 |
Appl. No.: |
12/911139 |
Filed: |
October 25, 2010 |
Related U.S. Patent Documents
|
|
|
|
|
|
Application
Number |
Filing Date |
Patent Number |
|
|
10363160 |
May 29, 2003 |
7844537 |
|
|
PCT/US01/27514 |
Sep 6, 2001 |
|
|
|
12911139 |
|
|
|
|
60230418 |
Sep 6, 2000 |
|
|
|
Current U.S.
Class: |
705/42 ;
705/500 |
Current CPC
Class: |
G06Q 40/04 20130101;
G06Q 99/00 20130101; G06Q 20/10 20130101; G06Q 20/108 20130101;
G06Q 20/02 20130101; G06Q 30/02 20130101; G06Q 40/02 20130101; G06Q
20/04 20130101; G06Q 20/12 20130101 |
Class at
Publication: |
705/42 ;
705/500 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00; G06Q 90/00 20060101 G06Q090/00 |
Claims
1. A method of reserving funds in a transaction requiring a deposit
between a consumer and a merchant, the method comprising holding
consumer funds in one of an existing bank account or a special
deposit account in an amount corresponding to a required deposit,
and generating service fees (1) on a transaction basis in
accordance with either an amount of funds deposited in the special
deposit account or an average amount of funds held over a set
period of time, or (2) based on a fixed spread between an interest
rate offered by associated banks and an interest rate provided to
the consumer.
2. A method according to claim 1, wherein the existing bank account
comprises at least one of a checking account, savings account,
credit card, or letter of credit.
3. A method according to claim 1, wherein the funds placed on hold
are unavailable to the consumer.
4. A method according to claim 3, wherein upon completion of the
transaction, the hold on the funds is released.
5. A method according to claim 3, wherein upon completion of the
transaction, the funds placed on hold are transferred according to
preset consumer preferences.
6. A method according to claim 1, further comprising providing an
online link to a transaction intermediary through the consumer's
existing bank account.
7. A system for reserving funds in a transaction requiring a
deposit between a consumer and a merchant, the system comprising
means for holding consumer funds in one of an existing bank account
or a special deposit account in an amount corresponding to a
required deposit, and means for generating service fees (1) on a
transaction basis in accordance with either an amount of funds
deposited in the special deposit account or an average amount of
funds held over a set period of time, or (2) based on a fixed
spread between an interest rate offered by associated banks and an
interest rate provided to the consumer.
Description
CROSS-REFERENCES TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent
application Ser. No. 10/363,160, filed May 29, 2003, pending, which
is the U.S. national phase of PCT International Application No.
PCT/US01/27514 filed Sep. 6, 2001 which designated the U.S. and
claims priority to U.S. Provisional Patent Application Serial No.
60/230,418, filed Sep. 6, 2000, the entire contents of each of
which are hereby incorporated by reference.
STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT
[0002] Not Applicable
BACKGROUND OF THE INVENTION
[0003] The present invention relates to methods and systems for
intermediating a transaction between a consumer and a merchant and,
more particularly, to such methods and systems wherein consumers
can satisfy deposit requirements for a transaction via a direct
link with an existing bank account or a special deposit
account.
[0004] Several types of transactions typically require consumers to
provide a deposit before enabling them to participate in the
transaction. Examples of transactions that often require deposits
include auctions, automobile sales, real estate sales, and the
like. If a large deposit is required, e.g., for a transaction
involving a high cost product such as real estate, in order to
secure the deposit, consumers may be required to access savings
accounts, brokerage accounts or the like to obtain a bank check for
participating in the transaction. Ultimately, if the transaction is
not completed, the consumer must then return the funds to their
account or otherwise process their funds. This procedure results in
a significant burden for the consumer.
BRIEF SUMMARY OF THE INVENTION
[0005] It would thus be desirable to provide consumers with a means
of securing a transaction deposit requirement without requiring the
consumer to actually provide the funds to the merchant. From a
merchant's standpoint, it would be desirable for the merchant to be
assured that the deposit funds were available without requiring the
merchant to process the deposit funds unless necessary. The method
and system according to the present invention provides security to
a seller of goods to know that the payment is available and will be
made when the goods are delivered, and security to the buyer of
goods to know that the goods being purchased are actually delivered
before the payment is made.
[0006] The method and system according to the present invention
effects an intermediary in a transaction between a consumer and a
merchant involving an exchange of monetary funds. The intermediary
provides access via a link to an existing bank account or via a
special deposit account for consumers to secure deposits required
in a transaction.
[0007] In an exemplary embodiment of the invention, a method of
intermediating a transaction between a consumer and a merchant
involving an exchange of monetary funds includes the steps of (a)
receiving subscriptions from merchants and registering the
merchants as member merchants; (b) providing a vehicle for the
member merchants to require a deposit amount for the transaction;
and (c) enabling a consumer to secure the deposit amount for the
transaction with funds deposited in one of a bank account or a
special deposit account. The method may further include the step of
generating fees based on a percentage of the deposit amount secured
with the deposited funds. Alternatively or additionally, fees may
be generated by providing an interest rate on funds deposited in
the special deposit account with a fixed spread from a bank
interest rate.
[0008] In one embodiment, the method further includes the step of
receiving subscriptions from banks and registering the banks as
member banks, wherein step (c) is practiced by linking the
consumer's bank account and reserving an amount of funds in the
consumer's bank account corresponding to the deposit amount. In
this context, the consumer's bank account is at least one of a
checking account, savings account, credit card, or letter of
credit.
[0009] Step (c) may be practiced by placing a hold on the deposited
funds in an amount corresponding to the deposit amount, wherein the
deposited funds placed on hold are made unavailable to the
consumer. Upon completion of the transaction, the hold on the
deposited funds may be released, or the deposited funds placed on
hold may be transferred according to preset consumer
preferences.
[0010] Step (c) may also be practiced by providing an online link
to a transaction intermediary through the consumer's existing bank
account.
[0011] In another exemplary embodiment of the invention, a method
of reserving funds in a transaction requiring a deposit between a
consumer and a merchant is provided. The method includes holding
consumer funds in one of an existing bank account or a special
deposit account in an amount corresponding to a required deposit.
Service fees are generated: (1) on a transaction basis in
accordance with either an amount of funds deposited in the special
deposit account or an average amount of funds held over a set
period of time, or (2) based on a fixed spread between an interest
rate offered by associated banks and an interest rate provided to
the consumer.
[0012] In yet another exemplary embodiment of the invention,
systems for practicing the methods of the invention are
provided.
BRIEF DESCRIPTION OF THE DRAWING
[0013] These and other aspects and advantages of the present
invention will be described in detail with reference to the
accompanying drawing, showing a schematic block diagram of the
method and system according to the present invention.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS
[0014] The present invention is an extension of commonly-owned
co-pending U.S. patent application Ser. No. 09/567,589, filed May
10, 2000, and commonly-owned co-pending U.S. patent application
Ser. No. 09/617,065, filed Jul. 13, 2000, the entire contents of
which are hereby incorporated by reference. The features according
to the present invention may be implemented as a supplement to the
methods and systems discussed in the noted co-pending applications
or alternatively may be used independently. Although the noted
co-pending applications are directed to e-commerce transactions and
the methods and systems according to the present invention are well
suited for e-commerce transactions, the invention is not
necessarily meant to be limited, but could have broad applications
in offline consumer transactions.
[0015] Additionally, in the context of the present invention, a
"merchant" can be any company or individual that offers a product
or service for sale or acts as an intermediary for a transaction.
"Banks" encompass those banks, other financial institutions, and
other depositories of funds, both national and international who
either hold customer funds, issue credit, or provide other
conventional banking services to customers. Reference to a "bank
account" in the context of the present invention may encompass any
type of account including checking, savings, certificates of
deposits, credit cards, letters of credit, and the like.
[0016] Referring to the FIGURE, the eDeposit.TM. system 10 acts as
an intermediary between member merchants 12 and consumers via
member banks 14 or special system-supported deposit accounts 16.
The system 10 receives subscriptions from merchants for
registration as member merchants. The member merchants 12 may be
required to pay a fee for registration. Member banks 14 may offer
the intermediary system 10 according to the invention as a service
to its customers 18. Similar to merchants, the system 10 receives
subscriptions from interested banks for registration as member
banks Bank customers 18 of the member banks 14 are provided with
the ability to open a new account to be used for these transactions
or link one or more of their current accounts 20 for system
functionality. The special deposit account 16 is an account similar
to a regular bank savings account that is set up through the
eDeposit.TM. system 10. The special deposit account 16 is described
in more detail in the above-noted co-pending applications.
[0017] If a merchant 12 such as a car dealer, real estate firm,
etc. requires a deposit for a consumer to participate in a
transaction (such as placing a bid on the purchase of real estate),
instead of the consumer supplying actual deposit funds in the form
of a check, money order or the like, the consumer rather uses the
system 10 to allow the merchant 12 to reserve or place a "hold" on
a deposit amount in the consumer's account 16, 20, which as
discussed above can be linked to a current checking, savings or
credit card account or a separate bank account used exclusively for
deposit transactions. The "hold" status provides the needed
assurance to the merchant 12 of the consumer's bona fide interest
in completing a transaction, without requiring the consumer to
transfer funds to the respective merchant 12. From the consumer's
perspective, the system 10 enables transactions to proceed without
risk of default and subsequent loss of transferred deposit
funds.
[0018] When a "hold" is placed on funds in a consumer's account,
the funds are unavailable to the consumer for other purposes. Upon
completion of the transaction, the "hold" can be released by the
system 10 or the funds transferred according to preset consumer
preferences.
[0019] The system 10 may itself be associated with one or more
banks to offer complementary banking services with associated
deposit accounts. In this context, users can register directly with
the system 10 and set up the special deposit account 16 that is
maintained by the system 10 through an associated bank. Fees for
services can be generated, for example, by offering an interest
rate to system customers with a fixed spread from the interest rate
offered by the associated banks to the system 10. Alternatively,
member banks 14 can offer a link to the system to existing bank
customers 18 through existing accounts 20 or special accounts
established exclusively for deposit transactions. The system
according to the present invention can thus be an attractive
additional feature that banks can offer to its customers.
[0020] System fees can be generated via bank service fees for use
of the system based on, for example, an amount deposited in the
special deposit account 16 or dedicated bank account or based on an
average amount of funds held or reserved on a monthly or other time
period basis or the like.
[0021] With the system and methods of the present invention, both
consumers and merchants are provided with a vehicle to facilitate
participation in transactions requiring a deposit. For consumers,
the system conveniently relieves the burden of having to process
funds for every transaction, and for merchants, they can be assured
that deposit funds are available without requiring physical
processing of the funds unless necessary.
[0022] While the invention has been described in connection with
what is presently considered to be the most practical and preferred
embodiments, it is to be understood that the invention is not to be
limited to the disclosed embodiments, but on the contrary, is
intended to cover various modifications and equivalent arrangements
included within the spirit and scope of the appended claims.
* * * * *