Interbank Process

Abstract

In transactions between a consumer and a merchant where a merchant requires a deposit for participation, a method and system are provided for intermediating the transaction. The system enables a consumer to secure the required deposit amount for the transaction with funds deposited in one of a bank account or a special deposit account. Fees are generated based on a percentage of the deposit amount secured with the deposited funds and/or by providing an interest rate on funds deposited in the special deposit account with a fixed spread from a bank interest rate. The system assures merchants that deposit funds have been reserved for a particular transaction, and enables consumers to participate in such transactions without requiring an actual transfer of funds.

1 . A method of reserving funds in a transaction requiring a deposit between a consumer and a merchant, the method comprising holding consumer funds in one of an existing bank account or a special deposit account in an amount corresponding to a required deposit, and generating service fees (1) on a transaction basis in accordance with either an amount of funds deposited in the special deposit account or an average amount of funds held over a set period of time, or (2) based on a fixed spread between an interest rate offered by associated banks and an interest rate provided to the consumer. 
     
     
         2 . A method according to  claim 1 , wherein the existing bank account comprises at least one of a checking account, savings account, credit card, or letter of credit. 
     
     
         3 . A method according to  claim 1 , wherein the funds placed on hold are unavailable to the consumer. 
     
     
         4 . A method according to  claim 3 , wherein upon completion of the transaction, the hold on the funds is released. 
     
     
         5 . A method according to  claim 3 , wherein upon completion of the transaction, the funds placed on hold are transferred according to preset consumer preferences. 
     
     
         6 . A method according to  claim 1 , further comprising providing an online link to a transaction intermediary through the consumer's existing bank account. 
     
     
         7 . A system for reserving funds in a transaction requiring a deposit between a consumer and a merchant, the system comprising means for holding consumer funds in one of an existing bank account or a special deposit account in an amount corresponding to a required deposit, and means for generating service fees (1) on a transaction basis in accordance with either an amount of funds deposited in the special deposit account or an average amount of funds held over a set period of time, or (2) based on a fixed spread between an interest rate offered by associated banks and an interest rate provided to the consumer.