Method and system for conducting a commercial transaction between a buyer and a seller

Abstract

A system for conducting a commercial transaction between a buyer and a seller is disclosed. The system includes a transaction processing system for facilitating payment for a transaction between the buyer and the seller. In addition to the buyer and the seller, the transaction processing system also interacts with an issuer and an acquirer. The issuer issues and manages an account for the buyer. The acquirer manages an account for the seller. The transaction processing system operates as follows. An electronic invoice relating to the transaction is first posted to the system by the seller or another system. Upon accepting the electronic invoice, the system creates a payment instruction. Each time a payment instruction is created, the system applies certain pre-negotiated payment terms and conditions between the buyer and the seller to the payment instruction. After the payment instruction is created, the system seeks approval from the buyer. Upon approval of the payment instruction by the buyer, the system schedules the payment for the specified date in the payment instruction. On the scheduled day of payment, the system calculates one or more fees, such as a transaction fee, for the transaction according to a pre-defined variable pricing matrix, which is determined based on a set of pre-negotiated conditions agreed to by the issuer, the acquirer, the seller and the buyer. For example, the transaction fee is an amount used by the issuer and the acquirer to compensate each other for processing the payment on behalf of the buyer and the seller. After the transaction fee is calculated, information relating to the transaction fee and the payment instruction is formatted into a proper message format(s) and submitted for authorization, clearing and settlement. The issuer and the acquirer then communicate with one another directly or indirectly to settle the funds. Additionally, the system provides transaction and activity reports to all relevant parties as well as access to status information for invoices and payments.

1 .- 42 . (canceled) 
     
     
         43 . A method comprising:
 sending, by a seller, an electronic invoice to a transaction processing system comprising a server, wherein the server in the transaction processing system thereafter creates one or more payment instructions after accepting the electronic invoice, seeks approval for the one or more payment instructions from a buyer, initiates processing of a payment from a transaction account belonging to the buyer pursuant to the one or more payment instructions, determines one or more fees based on terms and conditions previously agreed to amongst at least the buyer, the seller, and an issuer, calculates a net amount to be received by the seller, and prepares an authorization request to be forwarded to the issuer via a data transport and processing network; and   receiving a credit for the net amount.   
     
     
         44 . The method of  claim 43  wherein the terms and conditions are previously agreed to amongst the buyer, the seller, the issuer, and an acquirer. 
     
     
         45 . The method of  claim 43  wherein the server includes an invoice pre-processor that generates a standardized invoice file. 
     
     
         46 . The method of  claim 43  wherein the invoice pre-processor combines all seller invoices into a standard file to be delivered as input into a payment manager. 
     
     
         47 . The method of  claim 46  wherein the payment manager keeps track of the status of the invoice and the payment. 
     
     
         48 . The method of  claim 47  wherein the payment manager allows the buyer to administer users belonging to the buyer. 
     
     
         49 . The method of  claim 47  wherein the payment manager allows the buyer to create a payment for the seller if there is no associated invoice. 
     
     
         50 . The method of  claim 47  wherein the server further comprises an issuer pricing engine coupled to the payment manager. 
     
     
         51 . The method of  claim 43  wherein the transaction processing system includes an interface through which the electronic invoice is sent. 
     
     
         52 . The method of  claim 50  wherein the issuer pricing engine stores the terms and conditions. 
     
     
         53 . A method comprising:
 receiving one or more payment instructions from a transaction processing system comprising a server, wherein the server in the transaction processing system is configured to receive an electronic invoice from a seller and the creates one or more payment instructions associated with a transaction amount after accepting the electronic invoice, seek approval for the one or more payment instructions from a buyer, initiate processing of a payment from a transaction account belonging to the buyer pursuant to the one or more payment instructions, determine one or more fees based on terms and conditions previously agreed amongst at least the buyer, the seller, and an issuer, calculates a net amount to be received by the seller, and prepare an authorization request to be forwarded to the issuer via a data transport and processing network; and   receiving a debit for the transaction amount.   
     
     
         54 . The method of  claim 53  wherein the terms and conditions are previously agreed to amongst the buyer, the seller, the issuer, and an acquirer. 
     
     
         55 . The method of  claim 53  wherein the server includes an invoice pre-processor that generates a standardized invoice file. 
     
     
         56 . The method of  claim 53  wherein the invoice pre-processor combines all seller invoices into a standard file to be delivered as input into a payment manager. 
     
     
         57 . The method of  claim 56  wherein the payment manager keeps track of the status of the invoice and the payment. 
     
     
         58 . The method of  claim 57  wherein the payment manager allows the buyer to administer users belonging to the buyer. 
     
     
         59 . The method of  claim 57  wherein the payment manager allows the buyer to create a payment for the seller if there is no associated invoice. 
     
     
         60 . The method of  claim 57  wherein the server further comprises an issuer pricing engine coupled to the payment manager. 
     
     
         61 . The method of  claim 53  wherein the transaction processing system includes an interface through which the electronic invoice is sent. 
     
     
         62 . The method of  claim 57  wherein the issuer pricing engine stores the terms and conditions.