Computerized system for facilitating transactions between parties on the internet using e-mail

Abstract

A payment system and method are disclosed for processing financial exchanges over a network between a merchant and a buyer. For example, receiving from a merchant, over the network, information associated with a financial transaction and non-financial data relating to a buyer involved in the financial transaction. Authorizing payment, associated with the financial transaction, to the merchant on behalf of the buyer using the non-financial data related to the buyer. A notification of the authorized payment on behalf of the buyer is sent to the merchant over the network. Upon notification from the merchant that the buyer has committed to completing the financial transaction, processing payment to the merchant on behalf of the buyer.

Description

RELATED APPLICATIONS[0001]This application is a continuation of Reissue Application No. 10 / 461,604, filed Jun. 12, 2003, which is a Reissue of U.S. Pat. No. 6,246,996, issued Jun. 12, 2001, which is a continuation of U.S. Pat. No. 5,826,241, issued on Oct. 20, 1998, all of which are incorporated herein by reference in their entirety.BACKGROUND OF THE INVENTION[0002]The present invention relates to a system for enabling payment for information products that can be transferred electronically over a nonsecure network, and more particularly, the present invention relates to a payment system that can be used to enable an Internet user to make a payment to another Internet user for information products of value that can be electronically transferred over the Internet.[0003]The Internet has emerged as a large community of electronically-connected users located around the world who readily and regularly exchange significant amounts of information. The Internet continues to serve its origina...

AI Technical Summary

Problems solved by technology

Because information is easily duplicated with the point and click of a mouse on a user's workstation, the cost of manufacturing and reproducing inventory closely approaches zero, leaving the cost of creating or synthesizing the information as the dominant cost.

Although the Internet presently has the capability to serve as a marketplace for new information products, use of the Internet for this purpose has been slow to develop.

One reason that accounts for this lack of development is that it is difficult to pay for information products using the Internet.

A user cannot send cash or a check via the Internet and sending a check via physical delivery services is slow.

Sending a credit card number over the Internet poses security problems.

Moreover, even if it were reasonably safe to send credit card numbers, there are a lot of potential sellers of information products who do not have—and could not qualify for—the required merchant accounts.

The need for a conventional merchant account impedes commerce in the Internet marketplace because an average Internet user may have a difficult time qualifying for a merchant account.

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