Safe transaction guaranty

US 20040210527A1
Filed: 04/21/2003
Published: 10/21/2004
Est. Priority Date: 04/21/2003
Status: Active Grant

First Claim

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1. A method, comprising:

receiving, by a safe transaction service provider, a request from a first party for obtaining a transaction performance guaranty service with respect to an online commercial transaction;

processing, by the safe transaction service provider, the request by underwriting the first party in order to provide the transaction performance guaranty service to the first party, wherein the safe transaction service provider offers the transaction performance guaranty service that binds a transaction performance guaranty to an online commercial transaction involving the first party to guarantee the performance of the first party.

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Abstract

A method and system is provided for safe online commercial transaction. When a safe transaction service provider receives a request from a first party for obtaining a transaction performance guaranty service, the safe transaction service provider processes the request by underwriting the first party. If the underwriting is successful, the transaction performance guaranty service is provided to the first party which binds a transaction performance guaranty to an online commercial transaction involving the first party and guarantees the first party'"'"'s performance when the first party and a second party enter the online transaction.

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115 Claims

1. A method, comprising:
- receiving, by a safe transaction service provider, a request from a first party for obtaining a transaction performance guaranty service with respect to an online commercial transaction;
  
  processing, by the safe transaction service provider, the request by underwriting the first party in order to provide the transaction performance guaranty service to the first party, wherein the safe transaction service provider offers the transaction performance guaranty service that binds a transaction performance guaranty to an online commercial transaction involving the first party to guarantee the performance of the first party.
- View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38)
- - 2. The method according to claim 1, wherein the transaction performance guaranty service provider is an underwriter.
  - 3. The method according to claim 1, wherein the safe transaction service provider provides the transaction performance guaranty service on behalf of one or more independent underwriters.
  - 4. The method according to claim 1, wherein the online commercial transaction is conducted at a marketspace provided by a marketspace provider.
  - 5. The method according to claim 4, wherein the marketspace corresponds to an online marketspace.
  - 6. The method according to claim 5, wherein the marketspace provider is an online auction marketspace provider.
  - 7. The method according to claim 6, wherein the online auction marketspace provider includes:
    - eBay;
      
      uBid;
      
      Amazon Auctions; and
      
      Yahoo Auctions.
  - 8. The method according to claim 4, wherein the transaction performance guaranty service is offered to the first party through the marketspace provider.
  - 9. The method according to claim 4, wherein the transaction performance guaranty service is offered to the first party by the marketspace provider.
  - 10. The method according to claim 1, wherein:
    - the transaction performance guaranty enables a second party involved in an online commercial transaction with the first party to make a claim when the first party violates a term of the transaction, wherein the second party is a beneficiary of the transaction performance guaranty; and
      
      the first party becomes liable to the safe transaction service provider for an amount associated with a claim amount paid to the second party in case of the first party'"'"'s failure to perform in compliance with a term of the transaction.
  - 11. The method according to claim 10, wherein the first party is a service subscriber;
    - and the second party is a service beneficiary.
  - 12. The method according to claims 10, wherein the first party is one of:
    - a seller in the online commercial transaction; and
      
      a buyer in the online commercial transaction.
  - 13. The method according to claim 10, wherein the second party is one of:
    - a buyer in the online commercial transaction; and
      
      a seller in the online commercial transaction.
  - 14. The method according to claim 1, wherein the transaction performance guaranty is provided in one form of:
    - a surety bond;
      
      a specialized bank guaranty;
      
      a specialized insurance policy; and
      
      a safe transaction guaranty provided by the safe transaction service provider.
  - 15. The method according to claim 1, wherein said processing the request comprises:
    - collecting information relevant to applying the transaction performance guaranty service;
      
      conducting pre-screening on the first party;
      
      underwriting the first party if the pre-screening is satisfactory;
      
      validating the first party if said underwriting is successful;
      
      establishing a service account if said validating is successful.
  - 16. The method according to claim 15, wherein said pre-screening is performed by means of at least one of:
    - a risk evaluation;
      
      a scoring data analysis;
      
      a random auditing; and
      
      a special review process.
  - 17. The method according to claim 16, wherein the scoring data includes:
    - credit scores collected from one or more credit agencies;
      
      rating scores accessible from one or more external rating agencies rating scores derived internally by the safe transaction service provider, wherein the internal rating scores are computed based on at least one of;
      
      individual ratings collected over time, and benchmarking ratings evaluated based on a group of individuals.
  - 18. The method according to claim 15, further comprising:
    - generating a first authentication key for the approved service provided to the first party after the service account is established; and
      
      notifying the first party of the approved service request and the first authentication key.
  - 19. The method according to claim 1, further comprising:
    - receiving, from the first party after a successful underwriting, a transaction binding request to bind, under the transaction performance guaranty service provided to the first party, a transaction performance guaranty to a specific online commercial transaction; and
      
      binding, as a response to the binding request, a transaction performance guaranty to the specific online commercial transaction.
  - 20. The method according to claim 19, wherein said binding comprises:
    - registering, by the first party, the specific online commercial transaction with the safe transaction service provider;
      
      performing, by the safe transaction service provider, an exposure validation to determine the current total liability registered against the first party;
      
      carrying out the binding if the exposure validation is successful.
  - 21. The method according to claim 20, wherein said registering comprises at least one of:
    - specifying an item involved in the specific transaction;
      
      specifying a quantity of the item involved in the specific transaction;
      
      indicating a unit price associated with the item; and
      
      describing a term related to the specific transaction.
  - 22. The method according to claim 20, wherein said carrying out the binding comprises:
    - generating a second authentication key associated with the specific online commercial transaction involving the first party;
      
      generating a seal that represents the bound transaction performance guaranty for the specific online commercial transaction;
      
      incorporating the seal into the posting of the specific online commercial transaction, indicating that there is a bound transaction performance guaranty associated with the specific online commercial transaction; and
      
      registering liability associated with the specific transaction against the first party.
  - 23. The method according to claim 22, further comprising selecting the seal from a plurality of predetermined seal types.
  - 24. The method according to claim 22, wherein said seal is generated in the form including at least one of:
    - an HTML code; and
      
      an XML code.
  - 25. The method according to claim 22, wherein said incorporating the seal is through at least one of:
    - a manual incorporation process, wherein the seal representation is sent to the first party and is manually inserted into the posting for the specific transaction;
      
      an automatic incorporation process, wherein the automatic incorporation is achieved through at least one of;
      
      a periodic check and posting operation conducted according to a predetermined interval;
      
      an implicit request driven operation invoked by the first party whenever there is a new online commercial transaction is posted; and
      
      an explicit request driven operation invoked by the first party with a specified online commercial transaction to which a seal is to be posted.
  - 26. The method according to claim 22, further comprising activating a first timer for measuring the duration of the specific online transaction according to a term of the specific online transaction.
  - 27. The method according to claim 22, further comprising closing the specific online transaction.
  - 28. The method according to claim 27, wherein said closing comprises:
    - determining a winner who is to be involved in the final specific online transaction;
      
      determining a total price of the specific online transaction if there is a winner;
      
      sending information related to the transaction performance guaranty bound to the specific online transaction to the winner.
  - 29. The claim according to claim 28, further comprising:
    - activating the transaction performance guaranty associated with the specific online transaction by issuing the guaranty to the winner in a form selected by the first party to deliver the service; and
      
      triggering a second timer for measuring the amount of time between the activation of the transaction performance guaranty and when a claim is received against a predetermined time period.
  - 30. The method according to claim 28, further comprising removing the liability associated with the specific online transaction and registered against the first party when there is no winner.
  - 31. The method according to claim 19, further comprising:
    - receiving a claim from a winner involved in the specific online transaction with the first party;
      
      determining whether the claim is received within a predetermined time period measured from when the transaction performance guaranty bound to the specific online transaction is activated;
      
      declining the claim if the claim is received after the predetermined time period; and
      
      processing the claim if the claim is received within the predetermined time period.
  - 32. The method according to claim 31, wherein said processing the claim comprises:
    - collecting information related to the claim;
      
      analyzing issues related to the claim;
      
      determining a dispute resolution according to the information collected and the results produced by said analyzing; and
      
      carrying out the resolution determined.
  - 33. The method according to claim 32, wherein the issues related to the claim include at least one of:
    - issues raised by the winner;
      
      issues raised by the first party; and
      
      issues related to a marketspace provider.
  - 34. The method according to claim 32, wherein said carrying out the resolution comprises:
    - resolving the dispute in favor of the first party if it is determined that the first party does not violate a term of the specific online transaction;
      
      resolving the dispute in favor of the winner if it is determined that the first party violates a term of the specific online transaction.
  - 35. The method according to claim 34, wherein said resolving in favor of the first party comprises:
    - declining the claim made by the winner of the specific online transaction; and
      
      removing the liability associated with the specific online transaction and registered against the first party.
  - 36. The method according to claim 35, wherein said resolving in favor of the winner comprises:
    - making a payment to the winner in a claim amount; and
      
      initiating a process seeking indemnity from the first party in compliance with the transaction performance guaranty service agreement with the first party.
  - 37. The method according to claim 36, further comprising suspending the transaction performance guaranty service associated with the first party.
  - 38. The method according to claim 34, further comprising updating a rating score associated with at least one of:
    - the first party; and
      
      the winner.

39. A method for a service subscriber, comprising:
- sending, by a service subscriber, a request to a safe transaction service provider for a transaction performance guaranty service;
  
  receiving a response from the safe transaction service provider, wherein the response indicates whether an underwriting process is successful to extend to the first party the requested transaction performance guaranty service, wherein the safe transaction service provider, upon a successful underwriting of the first party, enters into a transaction performance guaranty service agreement with the first party to provide the transaction performance guaranty service that binds a transaction performance guaranty to an online commercial transaction involving the first party to guarantee the performance of the first party.
- View Dependent Claims (40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54, 55, 56, 57)
- - 40. The method according to claim 39, wherein the online commercial transaction is conducted at a marketspace provided by a marketspace provider.
  - 41. The method according to claim 40, wherein the marketspace provider is an online auction marketspace provider.
  - 42. The method according to claim 41, wherein the first party obtains the transaction performance guaranty service offered through the marketspace provider.
  - 43. The method according to claim 41, wherein the first party obtains the transaction performance guaranty service offered by the marketspace provider.
  - 44. The method according to claim 41, wherein the transaction performance guaranty service is offered to the first party by the marketspace provider.
  - 45. The method according to claim 39, wherein:
    - the transaction performance guaranty enables a second party involved in the online transaction with the first party to make a claim when the first party violates a term of the online transaction, wherein the first party is a service subscriber and the second party is a beneficiary of the transaction performance guaranty; and
      
      the first party becomes liable to the safe transaction service provider for an amount associated with a claim amount paid to the second party in case of the first party'"'"'s failure to perform in compliance with a term of the online transaction.
  - 46. The method according to claim 45, wherein the first party is one of:
    - a seller in the online transaction; and
      
      a buyer in the online transaction.
  - 47. The method according to claim 45, wherein the second party is one of:
    - a buyer in the online transaction; and
      
      a seller in the online transaction.
  - 48. The method according to claim 39, wherein the transaction performance guaranty is provided in one form of:
    - a surety bond;
      
      a specialized bank guaranty;
      
      a specialized insurance policy; and
      
      a safe transaction guaranty provided by the safe transaction service provider.
  - 49. The method according to claim 39, further comprising receiving a first authentication key associated with the extended service after the underwriting is successfully performed.
  - 50. The method according to claim 39, further comprising:
    - sending, after a successful underwriting, a transaction binding request to the safe transaction service provider to bind a transaction performance guaranty to a specific online commercial transaction involving the first party; and
      
      registering the specific transaction with the safe transaction service provider to specify relevant terms associated with the specific online transaction.
  - 51. The method according to claim 50, further comprising:
    - receiving, after a transaction performance guaranty is bound to the specific online transaction, a second authentication key associated with the specific online transaction;
      
      receiving a seal generated by the safe transaction service provider to represent the bound transaction performance guaranty for the specific online transaction;
      
      incorporating the seal into the posting of the specific online transaction, indicating that there is a transaction performance guaranty associated with the specific online transaction.
  - 52. The method according to claim 51, wherein the seal is in the form including at least one of:
    - an HTML code; and
      
      an XML code.
  - 53. The method according to claim 50, further comprising closing the specific online transaction, wherein a winner is identified as involved in the specific online transaction with the first party.
  - 54. The method according to claim 53, further comprising:
    - receiving a request from the safe transaction service provider, indicating that the winner claims that the first party violates a term of the specific online transaction and requesting information related to the specific online transaction; and
      
      sending the requested information to the safe transaction service provider.
  - 55. The method according to claim 54, further comprising:
    - receiving a notification indicating a resolution to the claim in favor of the first party if it is determined that the first party does not violate a term of the specific online transaction;
      
      receiving a notification indicating a resolution to the claim in favor of the winner if it is determined that the first party violates a term of the specific online transaction.
  - 56. The method according to claim 55, further comprising receiving a request, seeking indemnity from the first party after the claim is resolved in favor of the winner, wherein the indemnity request is issued in compliance with the transaction performance guaranty service agreement.
  - 57. The method according to claim 56, wherein the first party indemnifies the safe transaction service provider.

58. A method for a service beneficiary, comprising:
- examining, at a marketspace, an online commercial transaction posted with certain transaction terms;
  
  entering the online commercial transaction, wherein the online transaction is posted with a seal indicating that a transaction performance guaranty is bound to the online transaction.
- View Dependent Claims (59, 60, 61, 62, 63)
- - 59. The method according to claim 58, further comprising receiving information related to the transaction performance guaranty from a safe transaction service provider after said entering, wherein the information describes the transaction performance guaranty issued for a service subscriber who posts the online transaction.
  - 60. The method according to claim 58, further comprising filing a claim with a claim amount regarding a dispute related to the transaction according to the terms of the transaction performance guaranty when the service subscriber violates a term of the online transaction.
  - 61. The method according to claim 60, further comprising receiving a notification from the safe transaction service provider indicating a resolution to the claim.
  - 62. The method according to claim 61, wherein the resolution to the claim includes at least one of:
    - a resolution in favor of the service subscriber when it is determined that the service subscriber does not violate a term of the online transaction; and
      
      a resolution in favor of the service beneficiary when it is determined that the service subscriber violates a term of the online transaction.
  - 63. The method according to claim 62, further comprising receiving, from the safe transaction service provider, an amount of compensation computed based on the claim amount.

64. A safe transaction method, comprising:
- providing, by a safe transaction service provider, a transaction performance guaranty service to a first party;
  
  requesting, by the first party, the safe transaction service provider to bind a transaction performance guaranty to a specific online commercial transaction involving the first party;
  
  binding a transaction performance guaranty to the specific online commercial transaction;
  
  entering the specific online transaction between the first party and the second party; and
  
  activating the transaction performance guaranty bound to the specific online transaction.
- View Dependent Claims (65, 66, 67, 68, 69)
- - 65. The method according to claim 64, further comprising:
    - receiving a claim from the second party with an claim amount, wherein the claim is filed in compliance with the terms of the transaction performance guaranty bound to the specific online transaction;
      
      determining a resolution regarding a dispute raised in the claim; and
      
      carrying out the resolution determined.
  - 66. The method according to claim 65, wherein said carrying out the resolution comprises:
    - resolving the dispute in favor of the first party if it is determined that the first party does not violate a term of the specific online transaction;
      
      resolving the dispute in favor of the second party if it is determined that the first party violates a term of the specific online transaction.
  - 67. The method according to claim 66, wherein said resolving in favor of the first party comprises:
    - declining the claim made by the second party; and
      
      removing a liability associated with the specific online transaction that is registered against the first party.
  - 68. The method according to claim 66, wherein said resolving in favor of the second party comprises:
    - compensating the second party in an amount determined based on the claim amount; and
      
      initiating a process seeking indemnity from the first party in compliance with a transaction performance guaranty service agreement between the first party and the safe transaction service provider.
  - 69. The method according to claim 68, further comprising suspending the transaction performance guaranty service provided to the first party.

70. A system, comprising:
- a safe transaction service provider;
  
  a first party, wherein the first party requests a transaction performance guaranty service from the safe transaction service provider, and an underwriter underwrites the first party in order to approve the request for the transaction performance guaranty service, and the requested transaction performance guaranty service, after the underwriter successfully underwrites the first party, binds a transaction performance guaranty to an online commercial transaction involving the first party.
- View Dependent Claims (71, 72, 73, 74, 75, 76, 77, 78, 79, 80, 81, 82, 83, 84, 85)
- - 71. The system according to claim 70, wherein the safe transaction service provider operates as one of:
    - the underwriter that underwrites the first party;
      
      an agency representing one or more underwriters in offering the transaction performance guaranty service; and
      
      both an underwriter and an agency representing one or more independent underwriters.
  - 72. The system according to claim 70, further comprising a marketspace where the online transaction is posted.
  - 73. The system according to claim 72, further comprising a marketspace provider providing the marketspace.
  - 74. The system according to claim 73, wherein the marketspace provider offers the transaction performance guaranty service to the first party.
  - 75. The system according to claim 73, wherein the marketspace provider offers the transaction performance guaranty service to the first party on behalf of the safe transaction service provider.
  - 76. The system according to claim 70, wherein the safe transaction service provider comprises:
    - a service application processing mechanism capable of processing a request from a first party for obtaining a transaction performance guaranty service;
      
      a transaction performance guaranty issuer capable of binding a transaction performance guaranty to a specific online commercial transaction involving the first party under the transaction performance guaranty service offered to the first party; and
      
      a claim processing mechanism capable of processing a claim filed by a second party involved in the specific online transaction with the first party, wherein the filed claim claims that the first party is in violation of a term of the specific online transaction.
  - 77. The system according to claim 76, wherein the service application processing mechanism comprises:
    - a pre-screening mechanism capable of performing a pre-screening of the first party using information from different sources;
      
      an underwriting mechanism capable of underwriting the first party if the pre-screening yields satisfactory result; and
      
      an application validation mechanism capable of validating the first party when the underwriting is successful.
  - 78. The system according to claim 77, wherein the information used for pre-screening includes:
    - individual ratings derived based on rating information on individuals collected over time;
      
      benchmark ratings derived based on ratings of a group of individuals collected over time;
      
      external ratings collected from public sources; and
      
      credit scores.
  - 79. The system according to claim 77, further comprising:
    - an account creation mechanism capable of creating an account for the first party when the first party is successfully validated; and
      
      an authentication key generation mechanism capable of generating an authentication key associated with the approved service to the first party.
  - 80. The system according to claim 76, wherein the transaction performance guaranty issuer comprises:
    - a transaction information acquisition mechanism capable of collecting information related to the specific online transaction from the first party when the first party requests to bind a transaction performance guaranty to the specific online transaction; and
      
      a guaranty seal generation mechanism capable of generating a seal to be used to indicate a binding of the transaction performance guaranty to the specific online transaction.
  - 81. The system according to claim 80, wherein the guaranty seal generation mechanism is further capable of generating a seal in a form including at least one of:
    - HTML code with an applet;
      
      HTML code; and
      
      XML code.
  - 82. The system according to claim 80, wherein the guaranty seal generation mechanism is further capable of automatically incorporating the generated seal into a posting of the specific online transaction.
  - 83. The system according to claim 76, wherein the claim processing mechanism comprises:
    - a claim information collection mechanism capable of gathering information relevant to a claim related to the specific online transaction and received from a second party involved in the specific online transaction with the first party;
      
      a dispute resolution mechanism capable of determining a resolution to the claim based on information related to the claim and the specific online transaction involving the first party and the second party; and
      
      a resolution execution mechanism capable of carrying out the resolution derived by the dispute resolution mechanism.
  - 84. The system according to claim 83, further comprising:
    - an indemnity processing mechanism capable of seeking indemnity from the first party when the claim is resolved in favor of the second party; and
      
      an account suspension mechanism capable of suspending the service account associated with the first party after the claim is resolved in favor of the second party.
  - 85. The system according to claim 83, further comprising a communication forum set up for the claim arising under the specific online transaction involving the first party and the second party, wherein communications between the first party and the second party related to the dispute regarding the claim are recorded in the communication forum.

86. A safe transaction service provider system, comprising:
- a service application processing mechanism capable of processing a request from a first party for obtaining a transaction performance guaranty service;
  
  a transaction performance guaranty issuer capable of binding a transaction performance guaranty to a specific online transaction involving the first party under the transaction performance guaranty service offered to the first party; and
  
  a claim processing mechanism capable of processing a claim filed by a second party involved in the specific online transaction with the first party, wherein the filed claim claims that the first party is in violation of a term of the specific online transaction.
- View Dependent Claims (87, 88, 89, 90, 91, 92, 93, 94, 95)
- - 87. The system according to claim 86, wherein the service application processing mechanism comprises:
    - a pre-screening mechanism capable of performing a pre-screening of the first party using information from different sources;
      
      an underwriting mechanism capable of underwriting the first party if the pre-screening yields satisfactory result; and
      
      an application validation mechanism capable of validating the first party when the underwriting is successful.
  - 88. The system according to claim 87, wherein the information used for pre-screening includes:
    - individual ratings derived based on rating information on individuals collected over time;
      
      benchmark ratings derived based on ratings of a group of individuals collected over time;
      
      external ratings collected from public sources; and
      
      credit scores.
  - 89. The system according to claim 87, further comprising:
    - an account creation mechanism capable of creating an account for the first party when the first party is successfully validated; and
      
      an authentication key generation mechanism capable of generating an authentication key associated with the approved service to the first party.
  - 90. The system according to claim 86, wherein the transaction performance guaranty issuer comprises:
    - a transaction information acquisition mechanism capable of collecting information related to the specific online transaction from the first party when the first party requests to bind a transaction performance guaranty to the specific online transaction; and
      
      a guaranty seal generation mechanism capable of generating a seal to be used to indicate a binding of the transaction performance guaranty to the specific online transaction.
  - 91. The system according to claim 90, wherein the guaranty seal generation mechanism is further capable of generating a seal in a form including at least one of:
    - HTML code with an applet;
      
      HTML code; and
      
      XML code.
  - 92. The system according to claim 90, wherein the guaranty seal generation mechanism is further capable of automatically incorporating the generated seal into a posting of the specific online transaction.
  - 93. The system according to claim 86, wherein the claim processing mechanism comprises:
    - a claim information collection mechanism capable of gathering information relevant to a claim related to the specific online transaction and received from a second party involved in the specific online transaction with the first party;
      
      a dispute resolution mechanism capable of determining a resolution to the claim based on information related to the claim and the specific online transaction involving the first party and the second party; and
      
      a resolution execution mechanism capable of carrying out the resolution derived by the dispute resolution mechanism.
  - 94. The system according to claim 93, further comprising:
    - an indemnity processing mechanism capable of seeking indemnity from the first party when the claim is resolved in favor of the second party; and
      
      an account suspension mechanism capable of suspending the service account associated with the first party after the claim is resolved in favor of the second party.
  - 95. The system according to claim 93, further comprising a communication forum set up for the claim arising under the specific online transaction involving the first party and the second party, wherein communications between the first party and the second party related to the dispute regarding the claim are recorded in the communication forum.

96. A machine readable medium, encoded with instructions, that when executed by a machine, result in the following:
- receiving, by a safe transaction service provider, a request from a first party for obtaining a transaction performance guaranty service with respect to an online commercial transaction;
  
  processing, by the safe transaction service provider, the request by underwriting the first party in order to provide the transaction performance guaranty service to the first party, wherein the safe transaction service provider offers the transaction performance guaranty service that binds a transaction performance guaranty to an online commercial transaction involving the first party to guarantee the performance of the first party.
- View Dependent Claims (97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109)
- - 97. The medium according to claim 96, wherein:
    - the transaction performance guaranty enables a second party involved in an online commercial transaction with the first party to make a claim when the first party violates a term of the transaction, wherein the second party is a beneficiary of the transaction performance guaranty; and
      
      the first party becomes liable to the safe transaction service provider for an amount associated with a claim amount paid to the second party in case of the first party'"'"'s failure to perform in compliance with a term of the transaction.
  - 98. The medium according to claim 97, wherein the first party is a service subscriber;
    - and the second party is a service beneficiary.
  - 99. The medium according to claims 97, wherein the first party is one of:
    - a seller in the online commercial transaction; and
      
      a buyer in the online commercial transaction.
  - 100. The medium according to claim 97, wherein the second party is one of:
    - a buyer in the online commercial transaction; and
      
      a seller in the online commercial transaction.
  - 101. The medium according to claim 96, wherein the transaction performance guaranty is provided in one form of:
    - a surety bond;
      
      a specialized bank guaranty;
      
      a specialized insurance policy; and
      
      a safe transaction guaranty provided by the safe transaction service provider.
  - 102. The medium according to claim 96, wherein said processing the request comprises:
    - collecting information relevant to applying the transaction performance guaranty service;
      
      conducting pre-screening on the first party;
      
      underwriting the first party if the pre-screening is satisfactory;
      
      validating the first party if said underwriting is successful;
      
      establishing a service account if said validating is successful.
  - 103. The medium according to claim 96, the instructions, when executed by a machine, further result in:
    - receiving, from the first party after a successful underwriting, a transaction binding request to bind, under the transaction performance guaranty service provided to the first party, a transaction performance guaranty to a specific online commercial transaction; and
      
      binding, as a response to the binding request, a transaction performance guaranty to the specific online commercial transaction.
  - 104. The medium according to claim 103, wherein said binding comprises:
    - registering, by the first party, the specific online commercial transaction with the safe transaction service provider;
      
      performing, by the safe transaction service provider, an exposure validation to determine the current total liability registered against the first party;
      
      carrying out the binding if the exposure validation is successful.
  - 105. The medium according to claim 104, wherein said carrying out the binding comprises:
    - generating a second authentication key associated with the specific online commercial transaction involving the first party;
      
      generating a seal that represents the bound transaction performance guaranty for the specific online commercial transaction;
      
      incorporating the seal into the posting of the specific online commercial transaction, indicating that there is a bound transaction performance guaranty associated with the specific online commercial transaction; and
      
      registering liability associated with the specific transaction against the first party.
  - 106. The medium according to claim 96, further comprising closing the specific online transaction, which comprises:
    - determining a winner who is to be involved in the final specific online transaction;
      
      determining a total price of the specific online transaction if there is a winner;
      
      sending information related to the transaction performance guaranty bound to the specific online transaction to the winner.
  - 107. The medium according to claim 106, further comprising:
    - activating the transaction performance guaranty associated with the specific online transaction by issuing the guaranty to the winner in a form selected by the first party to deliver the service; and
      
      triggering a second timer for measuring the amount of time between the activation of the transaction performance guaranty and when a claim is received against a predetermined time period.
  - 108. The medium according to claim 107, further comprising:
    - receiving a claim from a winner involved in the specific online transaction with the first party;
      
      determining whether the claim is received within a predetermined time period measured from when the transaction performance guaranty bound to the specific online transaction is activated;
      
      declining the claim if the claim is received after the predetermined time period; and
      
      processing the claim if the claim is received within the predetermined time period.
  - 109. The medium according to claim 108, wherein said processing the claim comprises:
    - collecting information related to the claim;
      
      analyzing issues related to the claim;
      
      determining a dispute resolution according to the information collected and the results produced by said analyzing; and
      
      carrying out the resolution determined.

110. A machine readable medium encoded with instructions that, when executed, result in the following:
- providing, by a safe transaction service provider, a transaction performance guaranty service to a first party;
  
  requesting, by the first party, the safe transaction service provider to bind a transaction performance guaranty to a specific online commercial transaction involving the first party;
  
  binding a transaction performance guaranty to the specific online commercial transaction;
  
  entering the specific online transaction between the first party and the second party; and
  
  activating the transaction performance guaranty bound to the specific online transaction.
- View Dependent Claims (111, 112, 113, 114, 115)
- - 111. The medium according to claim 110, further comprising:
    - receiving a claim from the second party with an claim amount, wherein the claim is filed in compliance with the terms of the transaction performance guaranty bound to the specific online transaction;
      
      determining a resolution regarding a dispute raised in the claim; and
      
      carrying out the resolution determined.
  - 112. The medium according to claim 111, wherein said carrying out the resolution comprises:
    - resolving the dispute in favor of the first party if it is determined that the first party does not violate a term of the specific online transaction;
      
      resolving the dispute in favor of the second party if it is determined that the first party violates a term of the specific online transaction.
  - 113. The medium according to claim 112, wherein said resolving in favor of the first party comprises:
    - declining the claim made by the second party; and
      
      removing a liability associated with the specific online transaction that is registered against the first party.
  - 114. The medium according to claim 113, wherein said resolving in favor of the second party comprises:
    - compensating the second party in an amount determined based on the claim amount; and
      
      initiating a process seeking indemnity from the first party in compliance with a transaction performance guaranty service agreement between the first party and the safe transaction service provider.
  - 115. The medium according to claim 110, further comprising suspending the transaction performance guaranty service provided to the first party.

Specification

Resources

Litigation Campaign Assessment

Current Assignee
buySAFE Incorporated
Original Assignee
buySAFE Incorporated
Inventors
Grass, Jeffrey E., Woda, Steven L.

Granted Patent

US 7,644,019 B2
Time in Patent Office

Days
Field of Search
US Class Current

705/40
CPC Class Codes

G06Q 10/10   Office automation; Time man...

G06Q 20/02   involving a neutral party, ...

G06Q 20/10   specially adapted for elect...

G06Q 20/102   Bill distribution or payments

G06Q 40/00   Finance; Insurance; Tax str...

G06Q 40/03   Credit; Loans; Processing t...

G06Q 40/04   Trading; Exchange, e.g. sto...

Safe transaction guaranty

First Claim

13 Assignments

0 Petitions

Accused Products

Abstract

59 Citations

115 Claims

Specification

Solutions

Use Cases

Quick Links

Safe transaction guaranty

First Claim

13 Assignments

Subscription Required

Subscription Required

0 Petitions

Subscription Required

Accused Products

Subscription Required

Abstract

59 Citations

115 Claims

Specification

Subscription Required

Solutions

Use Cases

Quick Links