Instant availability of electronically transferred funds

US8738526B2 · kind B2 · utility

Assignee

• PAYPAL, INC. · US

Inventors

• Luke Paul Nosek · Palo Alto, US
• Christopher Richman · Palo Alto, US
• Roelof Frederik Botha · Mountain View, US
• Maria Lee · Fremont, US
• Kyle Hansen · Castle Rock, US
• Todd Pearson · Oakland, US
• Denise Aptekar · Menlo Park, US

Key dates

• Filing date: Oct 6, 2011
• Grant date: May 27, 2014
• Expiry date: Jan 1, 2032

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/06
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A system and method for making proceeds of an ACH (Automated Clearinghouse) transaction available to a user before the transaction is completed. The system may be part of an on-line system or traditional merchant configured to facilitate payments or fund transfers from users. A user requests the transfer of funds to an entity (e.g., another user, a merchant, the user's account with the system) via an ACH entry. The system calculates a risk associated with the user, while considering various data (e.g., number of previous ACH entries, how many failed, how many succeeded, amount of the transfer). If the risk is low enough, the ACH entry is initiated and the desired funds are released for the transfer even before the ACH entry clears. The ACH entry may be presented as a default choice for funding the transfer.