WO2006000240A1

WO2006000240A1 - Computer system and method for operating an online auction system

Info

Publication number: WO2006000240A1
Application number: PCT/EP2004/006853
Authority: WO
Inventors: Everhard Vissers
Original assignee: Everhard Vissers
Priority date: 2004-06-24
Filing date: 2004-06-24
Publication date: 2006-01-05
Also published as: WO2006000247A2

Abstract

In a method for operating an online auction system, the system comprising an auction database hosted on an auction server, a first client computer assigned to a bidding user (BU), a solvency database storing solvency data assigned to the bidding user (BU), a second client computer assigned to a selling user (SU), a web server and a computer network for networking the web server, the first and the second client computer, the seller can determine whether the buyer is willing or able to pay the agreed price when being the successful high bidder by a method comprising the steps of - retrieval of data in the solvency database on the bidding user (BU) when the bidding user (BU) enters a bid on a product or service offered by the selling user (SU) through an online auction; - retrieval of available credit line (ACL) assigned to the bidding user (BU) in the retrieved data; - processing of data by comparison of bid price (BP) to available credit line (ACL) assigned to the bidding user (BU); - creation of a web page and transmission of the web page to the first client computer, the web page containing information about a remaining available credit line (RCL) being the available credit line (ACL) minus bid price (BP).

Description

Computer system and method for operating an online auction system

Field of the invention

The present invention relates to a computer system and a method for operating an online auction system.

Background of the invention

Online auction systems have become a fixture of electronic commerce. Auctions offer buyers the possibility of finding specialized goods and services, antiques, used items, and other items that can be difficult to find in conventional stores or in other electronic commerce storefronts. Because prices are not fixed, buyers can also obtain some items at significant discounts to retail list prices. Auctions offer sellers the benefit of price competition among buyers, creating cross border markets for goods and services also for those for which it is normally difficult to set prices. However, participants in auctions face certain difficulties. The online system suffers from the inherent weakness that it heavily relies on trust and goodwill between geographically separated seller and buyer who do not know each other. In particular, the seller can not determine whether the buyer is willing or even able to pay the agreed price when being the successful high bidder. Objects of the invention

It is an object of the invention to provide a method and a system to eliminate certain important uncertainties associated with online auction transactions and to increase the transaction speed.

Summary of the invention

The aforesaid object is achieved by a method and a system according to the claims attached hereto. According to the present invention, the aforesaid object is especially achieved by a method for operating an online auction system, the system comprising an auction database hosted on an auction server, a first client computer assigned to a bidding user, a solvency database storing solvency data assigned to the bidding user, a second client computer assigned to a selling user, a web server and a computer network for networking the web server, the first and the second client computer, comprising the steps of - retrieval of data in the solvency database on the bidding user when the bidding user enters a bid on a product or service offered by the selling user through an online auction; - retrieval of available credit line assigned to the bidding user in the retrieved data; - processing of data by comparison of bid price to available credit line assigned to the bidding user; - creation of a web page and transmission of the web page to the first client computer, the web page containing information about a remaining available credit line being the available credit line minus bid price. The method according to the invention allows a seller to determine whether he can trust the bidder to pay the bid sum when becoming the high bidder. All information is stored in databases and is automatically calculated during the bidding process. The seller is informed during and at the end of an online auction about the ability of a bidder to pay the transaction amount and the certainty that the seller will receive the amount once he has properly satisfied certain conditions, e.g. he has shipped the goods or delivered services. The bidder is assured that the goods or services will be received and can be inspected before the seller receives the transaction amount. Administrative functions by the seller or buyer inherent to online auction transactions can be reduced to a minimum. The method according to the invention allows a speedier conclusion of post auction transaction and a reduction of the need to rely on trust in online auction transactions and thereby reducing the risks for both buyer and seller. All information required for this method is stored in databases and is automatically processed during and after the bidding process. The auction web page describes the offered product or service as well as information on the bidder or byuer and the bid status.

In a preferred embodiment, a bid is valid only if the available credit line is higher than the bid price. This allows a fully automated limitation of auctions to users according to the available credit line. Invalid bids are automatically cancelled by the auction system. Bidding in an auction is prohibited by the system if the bid price will exceed the user's available credit line. The user is not able to take part in an auction if the bid price exceeds his available credit line. This avoids unnecessary network and database traffic on cancelled bids.

In a further preferred embodiment, upon end of an auction, if 5 the bidding user is the high bidder, the bid price is transferred from a credit account assigned to the bidding user to an account assigned to the selling user or to an escrow account. Payment is therefore automatically done by the system. In case of an escrow account, the selling user is able 0 to ship the goods or services to the bidding user if the amount has reached the escrow account.

In a further preferred embodiment, the web page comprises a first set of graphical elements if the available credit line is higher than the bid price and a second set of graphical 5 elements if the available credit line is lower than the bid price. The graphical elements are preferably logos being easy to identify by a user. The logo depicting that the available credit line is lower than the bid price is preferably visible only to the bidding user.

,0 In a further preferred embodiment, a user having a credit line is assigned a graphical item. In lists generated by the auction system, a user having an available credit line is therefore easily identified by other users.

15 The above said problem is also solved by a computer system comprising a web server, an auction database, a first client computer assigned to a bidding user and a computer network for networking the web server, the auction database and the client computer, where said computer system further comprises a »0 solvency database storing solvency data assigned to the bidding user. Preferably, the auction database is hosted by an auction server and/or the solvency database is hosted on a financial server being connected to said auction server. Brief description of the drawings

Fig. 1 is a sketch showing the principal architecture of a communications environment according to the present invention.

Detailed Description of the Invention

System architecture

Fig. 1 depicts a sketch showing the principal architecture or the computer system according to the present invention. The computer system comprises client computers 1, which are connected via a data communications network 3 with a web server 4. In this example the network 3 is an IP network which connects a multitude of client computers 1 with a multitude of web servers such as web server 4. The Fig. 1 just shows three client computers being connected with one web server 4 as a simple example to reduce the complexity of the following description. For the understanding of the described embodiment of the present invention it is sufficient to regard two client computers 1 being connected via the data network 3 to one web server 4. Thus, the following description can be limited on the description of these elements.

The client computers 1 can be any kind of computer or computing system, such as a personal computer, a laptop, a computer terminal or the like. The client computers 1 run a web browser 2 as software application to easily access and request the web server 4 for providing information. Upon a request the web server 4 retrieves information to be provided to the client computer 1. The information data is then processed by the client computer 1 and preferably displayed as a web page by web browser 2. The web page displayed by web browser 2 may include active and/or user controlled elements, for example buttons, sliders, check boxes or input fields for the purpose of interaction between user and the web server 4. Thus the user may simply enter his or her search terms into an text input field (search field) and may start the search by simply clicking on a send button. Or the user may chose standard terms from a list or pull-down menu.

The web server 4 offers a diversity of services for the client computer 1 and said web browser 2, respectively. Services are for example e-mail, chat, data base front ends of a great variety of information systems or so called unified messaging systems and so on.

As shown in Fig. 1 the web server 4 is connected with an auction server 5 storing an auction database. The connection can be established by use of any data network, such as network 3 or the like. Preferably a dedicated connection 6 within a private network is used. Instead of a remote auction server 5, the database itself can be integrated into or installed on the web server 4.

A first client computer Ia is assigned to a bidding user BU, a second client computer Ib assigned to a selling user SU. The selling user SU offers goods or services in an online auction. The bidding user BU bids for the goods or services e.g. by entering certain data on the web page. Usually a multitude of users give bids in an online auction. A user transmits a bid to the auction server 5 e.g. by entering data in form fields of the web site including data to identify the user and a bid price. The user currently holding the 5 highest bid is here referred to as high bidder HB.

Solvency subsystem

The computer system further comprises a solvency database 7 0 storing solvency data assigned to the bidding user BU. The solvency data comprises an amount of money the user has at his disposal and is referred to as available credit line ACL. The amount is deposited with a credit account CA at a bank or the bank guarantees for the credit line ACL, preferably the bank 5 running the solvency database 7. A user having an account with solvency data is identified by the system during login, the system maintains a list assigning any user to a database holding solvency information of the user.

.0 The method according to the invention basically comprises the step of retrieving data in the solvency database on a user when the user bids for an offer. The data is retrieved on¬ line, all subsystems therefore perform necessary steps in "real time". In a first step the available credit line ACL '5 assigned to the user BU is retrieved in the solvency database 7. The result is e.g. a tuple assigning the available credit line ACL to a user's ID or the user's name or the like.

In the next step, the available credit line ACL is compared 10 with the bidden price BP. If the available credit line ACL is higher than the bidden price BP, the bid is further processed by the auction server 5. If the available credit line ACL is smaller than the bidden price BP, the bid is denied and not further processed. In the first case, a first web page is generated indicating that the available credit line ACL is higher than the bidden price BP and the bid is accepted. The first web page is transmitted to the first client computer Ia, processed and displayed by web browser 2. The web page 5 containing the logo indicating that the available credit line is higher than the bid price BP is made available also for other users. In the second case a second web page is generated indicating that the available credit line ACL is smaller than the bid price BP and the bid therefore is denied, transmitted 0 to the first client computer Ia, processed and displayed by web browser 2. This information is also displayed e.g. as a logo visible to the bidding user BU.

In the first case, the bid being accepted, the available 5 credit line ACL is lowered by the bid price BP so as to calculate a remaining credit line RCL=ACL-BP. The remaining credit line RCL is the available credit line for further auctions of bidding user BU.

O If another user overbids the price and becomes high bidder in the auction, the bidder retracts his bid or the seller terminates the auction, then the bid price BP is added to the remaining credit line RCL. Hence the prior credit line ACL=RCL+BP is restored. The overbidden auction does not '5 inhibit the bidding user in other auctions by lowering his available credit line ACL.

Upon end of the auction while the bidding user BU being the high bidder HB, the bid price BP is automatically transferred 10 from the credit account CA to an account of the selling user SU or, alternatively, to an escrow account. Thus the remaining credit line RCL=ACL-BP is stored as new available credit line ACL. The system now automatically generates a message for the bidding user informing him about the new available credit line. Alternatively, an automated bank transfer filling up the amount deposited with the bank is initiated.

Graphical editing of the retrieved data

The data retrieved in the auction database and the solvency database is processed by the web server and transmitted to the first client computer Ia, e.g. in XML-format.

The first client computer Ia displays the information as a web page having different looks depending on the result of the foregoing steps. If the available credit line ACL is higher than the bidden price BP, a first page containing e.g. a logo indicating that the bid price BP is covered by the available credit line ACL is displayed. On the other hand, if the available credit line ACL is lower than the bid price BP, another page containing a logo indicating that the bidden amount is not covered by the available credit line and that the bid was not accepted is displayed on the first computer client's browser which is assigned to the bidding user BU.

In lists or personal data pages, a user having solvency information available according to the present invention is displayed in conjunction with a special logo of the respective bank running the assigned solvency database. Hence other users and especially the selling user SU are informed on the solvency status of the bidding user BU.

Upon the bidding user BU being the successful high bidder, he can choose, by selecting an icon on his screen, between a direct pay option and an escrow pay option. When choosing the direct pay option, the bank automatically transfers the bid sum from the bidding user's credit account CA into the account of the seller, when choosing the escrow pay option, the bank automatically transfers the bid sum from the credit account CA into an escrow account.

Claims

1. A method for operating an online auction system, the system 5 comprising an auction database hosted on an auction server (5), a first client computer (Ia) assigned to a bidding user (BU), a solvency database storing solvency data assigned to the bidding user (BU), a second client computer (Ib) assigned to a selling user (SU), a web server (4) and LO a computer network (3) for networking the web server, the first and the second client computer, comprising the steps of - retrieval of data in the solvency database on the bidding user (BU) when the bidding user (BU) enters a bid on a L5 product or service offered by the selling user (SU) through an online auction; - retrieval of available credit line (ACL) assigned to the bidding user (BU) in the retrieved data; - processing of data by comparison of bid price (BP) to 10 available credit line (ACL) assigned to the bidding user (BU); - creation of a web page and transmission of the web page to the first client computer, the web page containing information about a remaining available credit line (RCL) 15 being the available credit line (ACL) minus bid price (BP).

2. A method according to claim 1, characterized in that a bid is only accepted if the available credit line (ACL) is higher than the bid price (BP).

3. A method according to any the preceding claims, 50 characterized in that upon end of an auction, if the bidding user (BU) is high bidder (HB), the bid price (BP) is transferred from a credit account (CA) assigned to the bidding user (BU) to an account assigned to the selling user (SU) or to an escrow account.

4. A method according to any of the preceding claims, characterized in that the web page comprises a first set of graphical elements if the available credit line (ACL) is higher than the bid price (BP) and a second set of graphical elements if the available credit line (ACL) is lower than the bid price (BP).

5. A method according to any of the preceding claims, characterized in that a user having an available credit line (ACL) is assigned a graphical item.

6. A computer system comprising a web server, an auction database, a first client computer assigned to a bidding user (BU) and a computer network for networking the web server, the auction database and the client computer, characterized in that said computer system further comprises a solvency database storing solvency data assigned to the bidding user (BU) .

7. A computer system according to any of the preceding claims, characterized in that the auction database is hosted by an auction server.

8. A computer system according to any of the preceding claims, characterized in that said solvency database is hosted on a financial server being connected to said auction server.