Method and system for processing Internet payments

Abstract

A system and method for implementing electronic funds transfer account messages is disclosed (see FIG. 12). The main structural components of the system include Payment Entry Processor (Network Broker), Internet Payment Anyone (IPA) Account (1202), Virtual Private Lockbox (VPL) and Account Reporter, existing EFT network and access to VPL Or cash card for IPA account. Web agents are software applications that provide secure entry to a user's checking account (DDA) or IPA account and can incorporate the functionality of a traditional e-wallet. Consumers use the Web Broker Enhanced Wallet to fund their accounts, shop online, pay bills, store electronic receipts and transaction history, and verify their most recent Web Broker Enhanced Wallet activity. An IPA is a dedicated account with limited functionality for making electronic payments in the form of EFT account messages. VPL is a limited functionality receive-only account used to receive electronic payments via EFT. The account report device is the entrance to view the transaction history and the income and expenditure balance in the IPA and VPL accounts, and provides online, real-time transaction reports and reconciliation of the incoming EFT payment records to adjust the account's receipt / purchase records. A physical card can be linked to an IPA or VPL account to provide PIN debit capability.

Description

[0001] related application [0002] This application is based upon and claims priority from US Provisional Patent Application Nos. 60 / 213,423, filed June 22, 2000, and 60 / 250,495, filed December 1, 2000. field of invention [0003] The present invention relates generally to systems and methods for conducting electronic commerce, and more particularly to systems and methods for processing real-time payments between customer accounts. Background of the invention [0004] There are currently many methods by which consumers can electronically pay for purchases made on the Internet, such as credit cards, offline debit cards, online debit cards, digital cash and smart cards. Each of these methods has its own advantages and disadvantages. Offline debit cards use the traditional credit card system to settle payments, but do not require a personal identification number (PIN). Use of the online debit card requires the consumer to provide his or her PIN, and the purchase is immediate...

AI Technical Summary

Problems solved by technology

[0016] Some or all of the above models for Internet POS payment have two significant disadvantages: 1) a pre-existing relationship between the consumer and the merchant must exist; and 2) the consumer is required to provide the merchant with his or her account and / or PIN

The first disadvantage of requiring a pre-existing relationship between the consumer and the bill payee is not a major concern since this relationship likely already exists between the consumer and the payee (such as the phone, cable or utility company)

The second disadvantage of requiring the consumer to provide the payee with his or her account and / or PIN remains a concern in electronic bill payment

While fraudulent behavior is less of a problem with bill payments, some consumers still feel that providing at least her (his) account number to the payee reduces the consumer's confidentiality because the consumer has regular transactions with the payee.

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