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Escrow Secured Internet Gambling Payment System with Electronic Funds Transfer

IP.com Disclosure Number: IPCOM000004517D
Publication Date: 2001-Jan-05
Document File: 2 page(s) / 17K

Publishing Venue

The IP.com Prior Art Database

Abstract

The present invention is an escrow payment secured internet gambling system which allows funds to be electronically transferred to escrow account. In the present system no bets can be placed unless both the vendor and the customer have covered the bet in the account of a third party escrow company. If the bets are not covered the parties have the option to transfer funds electronically into an escrow account. Upon realization of the betting event, payments are made from the escrow account to the account of the respective winner of the bet.

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Escrow Secured Internet Gambling Payment System with Electronic Funds Transfer

Gambling over the internet is a quick and convenient means of placing a bet. Many gamblers however are hesitant to gamble online without sufficient assurance that they will be able to collect their payout. What is need is a way to secure the payment of internet gambling bets and payouts.

The present invention is an escrow payment secured internet gambling system which allows funds to be electronically transferred to escrow account. In the present system no bets can be placed unless both the vendor and the customer have covered the bet in the account of a third party escrow company. If the bets are not covered the parties have the option to transfer funds electronically into an escrow account. Upon realization of the betting event, payments are made from the escrow account to the account of the respective winner of the bet.

Figure 1 Escrow secured internet gambling payment system with electronic funds transfer.

In Figure 1 shows an escrow secured internet gambling payment system with electronic funds transfer 100. System 100 operates as follows. A customer enters a bet on vendor website 110. The entered bet is transmitted from vendor website 110 to escrow C.P.U. 120 for approval of transaction. Escrow C.P.U. 120 accesses outstanding transactions database 140 and stores outstanding transactions. Escrow C.P.U. 120 then calculates the minimum required funds necessary to cover all outstanding bets for vendor and customer including current transaction. These amounts constitute the minimum coverage equity that the vendor and customer can maintain in escrow account 130. Escrow C.P.U. 120 retrieves from escrow account 130 the funds the vendor and customer have in escrow account 130. When the funds of both parties are at least as great as the minimum coverage equity requirement the transaction is approved and escrow C.P.U. 130 transmits to vendor web page that the transaction has been approved. If the vendor's funds are less than the minimum coverage equity the transaction is denied and escrow C.P.U. 130 transmits message to vendor C.P.U. 160 that additional funds are needed to conduct the transaction. The vendor then has the option to electronically transfer funds from vender account 180 to escrow account 130 to meet the minimum coverage requirement. If the customer's funds are less than the minimum coverage equity the transaction is denied and escrow C.P.U. 130 transmits message to vendor web site 110, which the customer access via customer C.P.U. 170, that additional funds are needed to conduct the transaction. The customer then has the option to electronically transfer funds from customer account 190 to escrow account 130 to meet the minimum coverage requirement. Upon approval of the transaction, escrow C.P.U. 120 updates outstanding transaction database 140 to include current transaction. C.P.U. 120 continuousl...