Systems and methods for determining regulations governing financial transactions conducted over a network

Abstract

Various embodiments of the invention provide a more secure financial transaction system for e-commerce sectors that (1) more securely processes payment transactions, (2) helps to protect merchants and banks against fraudulent transactions, money laundering, and underage gambling, and (3) helps to limit other abuses in areas of e-commerce that are perceived to pose special risks, such as Internet gaming, travel, and consumer purchasing of electronic goods. To accomplish the above goals, various embodiments of the financial transaction system (1) establish operating and transaction processing protocols for merchants, Internet payment service providers, acquiring banks, and card schemes and (2) provide automated systems for monitoring and securely processing payment and financial transactions.

Description

CROSS REFERENCE TO RELATED APPLICATIONS[0001]This application claims priority from U.S. Provisional Patent Application Ser. No. 60 / 745,561, entitled “Systems and Methods for Providing Financial Transactions over a Network”, filed on Apr. 25, 2006, the contents of which are herein incorporated by reference in their entirety. In addition, this application herein incorporates by reference co-pending U.S. patent application Ser. No. ______, entitled “Systems and Methods for Determining Taxes Owed for Financial Transactions Conducted over a Network”, filed on Dec. 12, 2006, co-pending U.S. patent application Ser. No. ______, entitled “Systems and Methods for Funding Payback Requests for Financial Transactions”, filed on Dec. 12, 2006, and co-pending U.S. patent application Ser. No. ______, entitled “Systems and Methods for Identifying Potentially Fraudulent Financial Transactions and Compulsive Spending Behavior”, filed on Dec. 12, 2006.BACKGROUND OF THE INVENTION[0002]In general, when a...

AI Technical Summary

Benefits of technology

[0004]Various embodiments of the invention provide a more secure financial transaction system for e-commerce sectors that (1) more securely processes payment transactions, (2) helps to protect merchants and banks against fraudulent transactions, money laundering, and underage gambling, and (3) helps to limit other abuses in areas of e-commerce that are perceived to pose special risks, such as Internet gaming, travel, and consumer purchasing of electronic goods. To accomplish the above goals, various embodiments of the financial transaction system (1) establish operating and transaction processing protocols for merchants, Internet payment service providers, acquiring banks, and card schemes and (2) provide automated systems for monitoring and securely processing payment and financial transactions. Two or more of the various embodiments described herein may be combined to provide a system or method that meets one or more of these goals.

[0009]In addition, in a further embodiment, the method also includes the step of transferring a portion of the funds in the escrow account to the merchant in response to the portion of funds being stored in the escrow account for a particular time period (e.g., at least six months). In another embodiment, the method further includes the steps of: (1) reducing the percentage of funds to be paid by the merchant into the escrow account in response to the merchant receiving a reduced number of payback requests over a particular time period; and (2) increasing the percentage of funds to be paid by the merchant into the escrow account in response to the merchant receiving an increased number of payback request over said particular time period. In yet another embodiment, the method includes the step of applying one or more fraud filters that are configured for identifying potentially fraudulent payback requests to the payback request. The fraud filters are executed by a fraud prevention module implemented on a computer readable medium according to one embodiment of the invention.

Problems solved by technology

Payment card transactions that occur over the Internet or other networks involve risks not necessarily present in face-to-face payment transactions because the card holder and the merchant are not normally together when the transaction occurs.

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