WO2010049856A1

WO2010049856A1 - A method and system for managing payment for a transaction between a vendor and a customer of the vendor

Info

Publication number: WO2010049856A1
Application number: PCT/IB2009/054653
Authority: WO
Inventors: Alastair Freimuth
Original assignee: Individual
Current assignee: Individual
Priority date: 2008-10-30
Filing date: 2009-10-21
Publication date: 2010-05-06
Anticipated expiration: 2011-04-30
Also published as: ZA201005352B

Abstract

A computer-aided method for managing payment for a transaction between a vendor of goods or services and a customer of the vendor by an escrow agent and a computer system 100 for aiding the implementation of the method. The computer-aided method includes the escrow agent: receiving payment from the customer; holding the payment received from the customer in escrow; issuing a unique release code corresponding to the payment for later presentation by the customer to the vendor, should the customer be satisfied with the goods or services provided by the vendor; and releasing the payment held in escrow corresponding to the unique release code, on presentation of the unique release code by the vendor to the escrow agent. The computer system 100 includes a database 102, a computer program 106 executable on a processor 107 and a user interface comprising web pages 108 and electronic mail messages 110.

Description

A METHOD AND SYSTEM FOR MANAGING PAYMENT FOR A TRANSACTION BETWEEN A VENDOR AND A CUSTOMER OF THE VENDOR

FIELDOFINVENTION

The invention relates to a method and system for managing payment for a transaction between a vendor of goods or services and a customer of the vendor by an escrow agent.

SUMMARY OF INVENTION

According to a first aspect of the invention there is provided a computer-aided method of managing payment for a transaction between a vendor of goods or services and a customer of the vendor by an escrow agent, the method including the escrow agent:

recording by means of a computer system predetermined particulars of the vendor sufficient to identify the vendor;

recording by means of the computer system predetermined particulars of the customer sufficient to identify the customer; recording by means of the computer system predetermined particulars of the transaction sufficient to identify the transaction including at least the quantum of the payment to be made to the vendor;

receiving payment in relation to the transaction from the customer for the goods and services to be supplied by the vendor to the customer;

recording by means of the computer system, particulars of the payment received;

holding the payment received from the customer in escrow;

issuing a unique release code corresponding to the payment and generated by the computer system to the customer for later presentation by the customer to the vendor, should the customer be satisfied with the goods or services provided by the vendor in terms of the transaction; and

releasing the payment held in escrow corresponding to the unique release code, on presentation of the unique release code by the vendor to the escrow agent.

The method may include issuing more than one unique release code to the customer, each unique release code being generated by the computer system and corresponding to a portion of the payment held in escrow; and releasing the payment held in escrow corresponding to each unique release code, on presentation of each unique release code by the vendor to the escrow agent.

The method may include notifying the vendor of the escrow agent receiving the payment from the customer.

The method may include notifying the vendor and the customer of the release of the payment or a portion thereof by the escrow agent to the vendor. The method may include recording by means of the computer system a predetermined readiness time limit, being the time period within which the vendor expects to be ready to provide the goods or services; notifying the vendor that the readiness time limit has been reached; getting confirmation from the vendor, after expiry of the readiness time limit, that the vendor is ready to provide the goods or services; and notifying the customer to make the payment for the transaction once the confirmation is received from the vendor.

The method may include issuing to the vendor and the customer a unique transaction identifier for the transaction, generated by the computer system.

According to a second aspect of the invention there is provided a computer system for aiding the implementation of the method of the first aspect of the invention, the computer system comprising:

a database for storing the predetermined particulars of the vendor, the customer and the transaction, the particulars of the payment received and the or each unique release code;

a computer program executable on a processor for utilising the database; for generating the or each unique release code; and for communicating with a server of a financial institution to facilitate the receipt of payment in relation to the transaction from the customer and the release to the vendor of the portion of the payment held in escrow corresponding to the or each unique release code; and

a user interface providing for the entry of the predetermined particulars of the vendor, the customer and the transaction; for the presentation of the or each unique release code to the customer and for the entry of the or each unique release code by the vendor.

The user interface may provide for the notification of the vendor of the receipt of the payment by the escrow agent from the customer. The user interface may provide for the notification of the vendor and the customer of the release of any portion of the payment by the escrow agent to the vendor.

The database may be configured to store a readiness time limit; the user interface providing for the entry of the readiness time limit, for notifying the vendor that the readiness time limit has been reached, for the confirmation by the vendor, after expiry of the readiness time limit, that the vendor is ready to provide the goods or services and for notifying the customer to make the payment for the transaction, on receipt of the confirmation from the vendor.

The database may be configured to store a unique transaction identifier for the transaction, the computer program being operable to generate the unique transaction identifier and the user interface providing for the presentation of the unique transaction identifier to the vendor and to the customer.

The user interface may include web pages which are accessible over the internet.

The user interface may include electronic mail messages which are sent and received by the computer program via an electronic mail system.

The user interface may include Short Message Service messages which are sent and received by the computer program via a Short Message Service system.

BRIEF DESCRIPTION OF DRAWINGS

Further features of the invention are described hereinafter by way of a non-limiting example of the invention, with reference to and as illustrated in the accompanying diagrammatic drawings. In the drawings: Figure 1 shows a flowchart describing the registration, transaction recording and customer payment phases of a computer-aided method for handling escrow arrangements in accordance with the first aspect of the invention;

Figure 2 shows a flowchart describing the funds release phase of the computer-aided method of Figure 1 ;

Figure 3 shows a flowchart describing the readiness confirmation phase of the computer-aided method of Figure 1 ; and

Figure 4 shows a block diagram describing a computer system in accordance with the second aspect of the invention.

DESCRIPTION OF PREFERRED EMBODIMENTS

With reference to Figures 1 to 3 of the drawings, a computer-aided method for handling escrow arrangements, in accordance with the first aspect of the invention, is designated generally by the reference numeral 10. The method consists, broadly, of a registration phase 12, a transaction recording phase 14, a readiness confirmation phase 16, a customer payment phase 18 and a funds release phase 20.

During the registration phase, the vendor registers (block 22) with the escrow agent through a computer system in the form of an Automatic Escrow Service (AES). The vendor provides relevant particulars (block 24) such as personal identification information and banking details which are recorded by the AES. The customer also registers (block 26) and provides relevant particulars (block 28) such as personal identification details which are recorded by the AES. The Applicant envisages that for certain types of transactions the customer would only need to provide very limited particulars such as a contact number or an electronic mail address. During the transaction recording phase, the vendor records (block 30) a transaction (block 32) with the customer on the AES. The vendor specifies the amount to be paid in terms of the escrow arrangement and the number of stages in which the payment will be released. The vendor can also specify a readiness time limit which is the time which the vendor indicated it would take to bring the product or service to a state of readiness for initial delivery or installation. On recording of the transaction the AES generates (block 34) a unique transaction identifier for the transaction. A message (block 36) containing the unique transaction identifier is thereafter sent to both the vendor and the customer.

The readiness confirmation phase 16 is only executed where the vendor has specified a readiness time limit on recording of the transaction. On reaching of the readiness time limit the AES automatically sends (block 38) a message (block 40) to the vendor to notify the vendor that the readiness time limit has been reached and to get confirmation that the vendor is ready to provide the goods or services. If the vendor confirms (block 42) that the goods or services are ready the AES sends (block 44) a message (block 46) to notify the customer to make the payment for the transaction which is to be secured by means of the escrow arrangement. Where no readiness time limit is specified, the customer payment phase 18 follows directly after the transaction recording phase.

During the customer payment phase 18, the customer pays (block 48) money for the transaction to the escrow agent through the AES. The payment (block 50) is held in escrow by the escrow agent. The AES sends (block 51 ) a message to the vendor to confirm the payment received and held in escrow. The AES also generates (block 52) unique release codes, one unique release code corresponding to a portion of the payment held in escrow for each stage of the transaction. The release codes are made available (block 54) to the customer.

During the funds release phase 20 the customer, if satisfied with the relevant stage of delivery or installation of the product, provides (block 56) the unique release code (block 58) corresponding to the portion of the payment for that stage of the transaction to the vendor. The vendor presents (block 60) the release code to the escrow agent through the AES. The AES system releases (block 62) the payment held in escrow corresponding to the unique release code to the vendor. Confirmatory messages (block 64) confirming finalisation of payment through the AES for the stage of the transaction is sent (block 66) to both the vendor and the customer. The sequence is repeated until all the release codes have been presented and all the stages of the transaction have been completed.

With reference to Figure 4 of the drawings, a computer system for implementing the computer-aided method, in accordance with the second aspect of the invention, is designated generally by the reference numeral 100. The system consists of a database 102 which is executable on a computer server 104, processing means in the form of a computer program 106 which is executable on a processor 107 of the computer server 104 and a user interface comprising a web channel in the form of web pages 108 which are accessible over the internet and a messaging channel in the form of electronic mail messages 1 10 which are sent and received by the computer program via an electronic mail system (not shown).

In use, the predetermined particulars of vendors and customers are entered via the web pages 108. The computer program 106 inserts the predetermined particulars of the vendors and the customers into the database 102.

In use, the predetermined particulars of the transaction are entered via the web pages 108. The computer program 106 generates the unique transaction identifier for the transaction. The computer program initiates the sending of notifications, in the form of electronic mail messages 1 10 containing the unique transaction identifier, to the vendor 1 12 and the customer 1 14.

In use, where a readiness time limit was specified, the computer program 106 automatically initiates, on reaching the readiness time limit, an electronic mail message 1 10 to the vendor 1 12 to notify the vendor that the readiness time limit has been reached. The computer program is operable to receive an electronic mail message 1 10 from the vendor indicating that the goods or services are ready and thereon initiates an electronic mail message 110 to the customer 1 14 to make the payment in relation to the transaction.

In use, the payment in relation to the transaction is initiated by the customer 1 14 via the web pages 108. The computer program 106 communicates with a financial institution server 1 16 to facilitate the receipt of payment in relation to the transaction. The computer program inserts details of the payment received into the database 102 and generates the unique release codes. The computer program further initiates an electronic mail message 1 10 to the vendor confirming the payment received. An electronic mail message 1 10 to the customer, containing the unique release codes, is also initiated by the computer program.

In use, the vendor 1 12 presents each unique release code by entering it via the web pages 108. The release to the vendor of the portion of the payment held in escrow corresponding to each unique release code is initiated by the computer program 106 on presentation of each release code. The computer program communicates with the financial institution server 1 16 to facilitate the release of the portion of the payment corresponding to each unique release code and inserts details of each released portion into the database 102. The computer program initiates electronic mail messages 1 10 to the vendor and the customer on each release of a portion of the payment.

In use, the web pages 108 allow for the particulars of vendors, customers and transactions to be viewed by authorised users.

The Applicant envisages that the computer-aided method for handling escrow arrangements will allow for vendors to secure payment for their goods or services while allowing customers adequate control over the release of the payment thereof. The Applicant further envisages that the computer system for implementing the computer- aided method will allow for the implementation of the method in an accessible, efficient and user-friendly manner.

Claims

Claims:

1. A computer-aided method of managing payment for a transaction between a vendor of goods or services and a customer of the vendor by an escrow agent, the method including the escrow agent:

recording by means of the computer system predetermined particulars of the customer sufficient to identify the customer;

recording by means of the computer system predetermined particulars of the transaction sufficient to identify the transaction including at least the quantum of the payment to be made to the vendor;

recording by means of the computer system, particulars of the payment received;

holding the payment received from the customer in escrow;

2. The method as claimed in claim 1 , including issuing more than one unique release code to the customer, each unique release code being generated by the computer system and corresponding to a portion of the payment held in escrow; and releasing the payment held in escrow corresponding to each unique release code, on presentation of each unique release code by the vendor to the escrow agent.

3. The method as claimed in claim 1 or claim 2, including notifying the vendor of the escrow agent receiving the payment from the customer.

4. The method as claimed in any one of claims 1 to 3, including notifying the vendor and the customer of the release of the payment or a portion thereof by the escrow agent to the vendor.

5. The method as claimed in any one of claims 1 to 4, including recording by means of the computer system a predetermined readiness time limit, being the time period within which the vendor expects to be ready to provide the goods or services; notifying the vendor that the readiness time limit has been reached; getting confirmation from the vendor, after expiry of the readiness time limit, that the vendor is ready to provide the goods or services; and notifying the customer to make the payment for the transaction once the confirmation is received from the vendor.

6. The method as claimed in any one of claims 1 to 5, including issuing to the vendor and the customer a unique transaction identifier for the transaction, generated by the computer system.

7. A computer system for aiding the implementation of the method as claimed in claim 1 , the computer system comprising: a database for storing the predetermined particulars of the vendor, the customer and the transaction, the particulars of the payment received and the or each unique release code;

8. The computer system as claimed in claim 7, wherein the user interface provides for the notification of the vendor of the receipt of the payment by the escrow agent from the customer.

9. The computer system as claimed in claim 7 or claim 8, wherein the user interface provides for the notification of the vendor and the customer of the release of any portion of the payment by the escrow agent to the vendor.

10. The computer system as claimed in any one of claims 7 to 9, wherein the database is configured to store a readiness time limit; wherein the user interface provides for the entry of the readiness time limit, for notifying the vendor that the readiness time limit has been reached, for the confirmation by the vendor, after expiry of the readiness time limit, that the vendor is ready to provide the goods or services and for notifying the customer to make the payment for the transaction, on receipt of the confirmation from the vendor.

1 1. The computer system as claimed in any one of claims 7 to 10, wherein the database is configured to store a unique transaction identifier for the transaction, the computer program is operable to generate the unique transaction identifier and the user interface provides for the presentation of the unique transaction identifier to the vendor and to the customer.

12. The computer system as claimed in any one of claims 7 to 11 , wherein the user interface includes web pages which are accessible over the internet.

13. The computer system as claimed in any one of claims 7 to 12, wherein the user interface includes electronic mail messages which are sent and received by the computer program via an electronic mail system.

14. The computer system as claimed in any one of claims 7 to 13, wherein the user interface includes Short Message Service messages which are sent and received by the computer program via a Short Message Service system.