Abstract:
This invention relates to a method and system for processing transactions over a distributed computer network wherein proceeds from subscriber transactions are allocated among geographically diverse entities that may have dissimilar accounting, accrual and organizational structures.

Description:
FIELD 
       [0001]    This invention relates to the field of distributed computer systems and more specifically to a method and system for processing financial and/or ecommerce transactions in which proceeds and/or dividends associated with individual transactions are dynamically allocated between geo-spatially distinct organizations of different types such as profit and non-profit organizations as directed by each user who initiates a transaction. The invention provides a method and system for processing financial transactions wherein acquisition, allocation and accrual may be segregated and processed as partially taxable and non-taxable events to promote individual philanthropic or charitable contributions while simultaneously supporting the efforts to promote corporate responsibility. 
       BACKGROUND 
       [0002]    It has become increasingly important to consumers that products and/or services are provided by merchants and/or vendors who have demonstrated social responsibility. It has become increasingly popular for merchants and/or vendors that their products and/or services are produced from recycled or renewable materials or are manufactured using alternative energy sources. In the alternative, many merchants and/or vendors have become more involved in supporting charitable giving programs, openly support various non-profit organizations or may even sponsor their own socially accountable programs. 
         [0003]    Many consumers base their purchasing decisions on the social accountability of a merchant and/or vendor and may elect to avoid merchants and/or vendors who are not perceived as being socially accountable. In addition, consumers within a “community of interest” frequently have a need and/or desire to inform others of emergent beneficiaries who may be in need of assistance. For example, natural disasters such as earthquakes, hurricanes or other catastrophic events may generate an immediate and unplanned intent among groups of interested individuals to provide support for the victims thereof and to communicate that intent within their “community of interest”. 
         [0004]    Increasingly, interne based social networking services such as Linkedin, Twitter and Facebook are now virtual “communities of interest” wherein users of these services may promote and support any of a number of charitable or otherwise socially desirable causes that could have otherwise been neglected due to lack of funding, organization or any internal capacity for self-promotion. Many of these worthy endeavors previously failed due to an inability to achieve self-sustaining funding levels. 
         [0005]    The invention presented herein provides a novel method and system for satisfying the desires of consumers to engage socially accountable vendors and/or merchants while simultaneously providing the ability to increase the exposure and funding levels of charitable or otherwise socially desirable causes that may not have survived without the capabilities of the method and system presented herein. 
       SUMMARY 
       [0006]    This invention provides a system for processing transactions in a distributed transaction processing system for subscribers to effect transactions with socially accountable merchants and/or vendors while simultaneously directing a portion of the proceeds from those transactions to beneficiaries designated by the subscriber. The method and system contemplate a social accounting system coupled to a vendor fulfillment system having a database of socially accountable merchants. 
         [0007]    Subscriber initiated transactions are effected directly between a respective subscriber and at least one of the socially accountable merchants. A transaction processor in a social accounting system authenticates each respective subscriber as well as the socially accountable merchants listed in a vendor fulfillment system. 
         [0008]    An accounting services system receives proceeds from each transaction and a payment system allocates a portion of the proceeds between any of a number of beneficiaries which may have distinct organizational and accounting structures. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0009]      FIG. 1  is a diagram of the architecture of the distributed transaction processing system of the present invention. 
           [0010]      FIG. 2  is a cascading functional flow block diagram showing the basic operation of the distributed transaction processing system of  FIG. 1 . 
           [0011]      FIG. 3  is a diagram showing the architectural hierarchy of the subsystems managed by the subscriber services server described in conjunction with  FIG. 1 . 
           [0012]      FIGS. 4A-4D  show the data schema used in the operation of the social accounting system described in conjunction with  FIG. 1 . 
           [0013]      FIG. 5  is a system flow diagram showing the subscriber controls and data flow while initiating a transaction and designating a beneficiary in distributed transaction processing system of  FIG. 1 . 
           [0014]      FIG. 6  depicts the system control and data flow  600  associated with processing, accounting and reconciliation of payments over distributed computer network  100 . 
           [0015]      FIG. 7  depicts the system control and data flow  700  associated with the distribution of payments to beneficiaries by accounting server  122  of social accounting system  102 . 
           [0016]      FIG. 8  shows the system flow and control  800  in which a subscriber may generate messages for advocating on behalf of their preferred beneficiaries. 
       
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
       [0017]    Referring to  FIG. 1 , system  100  comprises a social accounting system  102 , coupled to a vendor fulfillment system  104 , wherein subscribers  106  initiate transactions using any of a number of client devices  108  to effect transactions between respective subscribers  106  and socially responsible merchants within vendor fulfillment system  104 . 
         [0018]    The overall operation of social accounting system  102  is controlled by subscriber services server  114 . Subscriber services server  114  is an application server whose operation is further described in conjunction with  FIGS. 3-8 . Subscriber services server  114  may communicate with web server  112 , database server  118 , subscriber authentication server  116 , and accounting server  122  via a conventional local area network (LAN) to coordinate and control the overall operation of social accounting system  102 . 
         [0019]    Subscriber services server  114  may communicate with vendor fulfillment system  104 , beneficiary database server  124 , payment distribution services  126  and subscriber communication services  128  through web server  112  which is adapted for communication via conventional wide-area network (WAN) connections such as those deployed over internet  136 . 
         [0020]    Respective subscribers  106  initiate transactions through social accounting system  102  through web server  112  which provides a variety of end-user services as further described herein. Upon establishing a connection with web server  112 , subscriber services server  114  authenticates the subscriber with authentication server  116  to provide access to a database of social responsible merchants listed in database  118 . 
         [0021]    Those skilled in the art will appreciate that the table of socially responsible merchants maintained in database  118  maybe derived from a remote server hosting a service  125  such as popshops.com, linkshare.com, commissionjunction.com or any of a number of similar services. Database  118  further includes a table of beneficiaries which may be designated by a subscriber to receive a dividend or a portion of the proceeds from each transaction initiated by respective subscribers  106 . 
         [0022]    In one embodiment of the present invention, in the event a subscriber discovers a desired merchant and/or desired beneficiary is not previously listed in database  118 , a subscriber may append beneficiary table  404  or merchant table  408  stored in database  118  to reflect their philanthropic intent. 
         [0023]    Authenticated subscribers  106  select a socially responsible merchant listed in database  118  to directly initiate a merchant transaction with any of a number of merchant systems  120  to effect a transaction for the delivery of goods or services. Payment for the requested goods of services and fulfillment or delivery thereof is transmitted directly between authenticated subscribers  106  through any of the respective client devices  108  and the vendor fulfillment system  104 . 
         [0024]    Proceeds from each respective transaction are received by accounting server  122  from vendor fulfillment system  104  and distributed among designated beneficiaries listed in beneficiary database  124  through payment distribution service  126 . A portion of the proceeds are retained within social accounting system  102  for costs, expenses and other accounting items associated with the operation and maintenance of social accounting system  102 . Beneficiary database may be derived from any of a number of sources, including without limitation, publically available listings such as those provided by guidestar.org. 
         [0025]    This invention uniquely provides a system and method for allocating and accounting proceeds from transactions among both profit and non-profit organizations enumerated in beneficiary database  124  through payment services  126  which may include services such as Paypal or PayQuicker. 
         [0026]    This invention further provides the ability for a respective subscriber to designate beneficiaries of each transaction wherein if a desired beneficiary is not listed in beneficiary database  124 , authenticated subscribers  106  may append database  118  to effect payment through payment service  126  to entities irrespective of organizational structure while accommodating the philanthropic intent of respective subscribers  106 . 
         [0027]    Authenticated subscribers  106  are provided the ability to communicate with other subscribers (or potential subscribers) through subscriber communication servers  128  to promote or advocate on behalf of charitable or otherwise socially desirable causes. In one embodiment of the invention, communication servers  128  may host various social networking services such as Twitter, Facebook, Linkedin or any of a number of other services adapted for communication between large groups. 
         [0028]    Those skilled in the art will appreciate that the various servers and devices of distributed computer system  100  are adapted to send, receive and route network communications using conventional internet connections and protocols which may include HTTP, HTTPS, IPV4, IPV6, TCP/IP and/or any of a number of networking protocols adapted for data communication via the internet  136 . 
         [0029]    Those skilled in the art will further appreciate that the respective end-user devices  108  which may include a laptop computer  130 , an internet enabled “smart phone”  132 , or a conventional desktop computer system  134 , each of which are shown by way of example and not limitation. 
         [0030]    As noted above, social accounting system  102  includes a subscriber services server  114  which is an application server that coordinates the overall operation of distributed computer network  100  as defined by the API shown in  FIG. 3 , the schema shown in  FIGS. 4A-4D , and the associated system flow diagrams shown in  FIGS. 5-8 . 
         [0031]      FIG. 2  is a recursive cascading functional flow block diagram showing the high level operation of the distributed transaction processing system of  FIG. 1 . This invention includes approximately five system partitions organized in a cascading structure, each of which is described in further detail herein. Each of the respective system partitions operates in conjunction with the relational database schema shown in  FIGS. 4A-4D  through the application programming interface implemented in subscriber services server  114 . 
         [0032]    When invoked, system module  202  provides system controls for selecting or designating one or more beneficiaries. The detailed operation of module  202  is described further in conjunction with  FIG. 5 . 
         [0033]    System module  204  provides system controls wherein a subscriber initiates a transaction with one or more socially accountable merchants and/or vendors listed in the database managed by social accounting system  102 . The detailed operation of system module  204  is described further in conjunction with  FIG. 6 . 
         [0034]    System module  206  provides system controls wherein a subscriber selects or designates one or more socially accountable merchants and/or vendors. The detailed operation of system module  206  is described further in conjunction with  FIG. 7 . 
         [0035]    System module  208  provides system controls wherein a subscriber may advocate on behalf of their preferred beneficiaries through various social networking services. The detailed operation of system module  208  is described further in conjunction with  FIG. 8 . 
         [0036]    The system returns to system module  202  upon completion of the tasks in system module  208 , to recursively provides services to subscribers  106 . 
         [0037]      FIG. 3  is a diagram of the application program interface (API)  300  which is used to control the overall operation of the distributed computer network  100 . The API is hosted in subscriber services server  114  within social accounting system  102  and operates in association with the schema depicted in  FIGS. 4A-4D . API  300  includes application layer  302  which works in cooperation with message routing application layer  304 , access control layer  306  which operate in cooperation with operating system layer  312  to provide subscriber network access and authentication to social accounting system  102  via the internet  136 . 
         [0038]    Upon authentication, subscribers utilize the system and method presented herein via the social accounting system  102  in accordance with accounting services  308  hosted on accounting server  122  as further described herein. The database service  310  is hosted on subscriber services server  114  and transaction processor  110  as further described in conjunction with  FIGS. 4A-4D . 
         [0039]      FIGS. 4A-4D  show a pseudo-code depiction of a schema constructed in accordance with the requirements of the ISO SQL: 2003 standard published by ISO/IEC. Those skilled in the art will appreciate that the various tables shown in  FIGS. 4A-4D  provide a relational database wherein the naming conventions shown therein conform to ISO/IEC 9075:2003 which is available from the International Standards Organization at http://www.iso.org/. 
         [0040]    Schema  400  defines operating modules  402 - 416  which are configured as tables within an ISO SQL: 2003 structure which is invoked in accordance with the system flow diagrams shown in  FIGS. 5-8 . In accordance with the nomenclature defined in ISO/IEC 9075:2003, a primary key is a direct reference to a defined field or variable within a table or data structure while a foreign key is a referential constraint between two tables. The referencing and referenced table may be in the same table which is referred to as a self-referencing or recursive foreign key. A table may include multiple foreign keys, and each foreign key may have a different referenced table. Therefore, cascading relationships can be established using foreign keys. 
         [0041]    Subscriber table  402  stores essential information related to individual subscribers and includes unique fields for storing subscriber name, password, tax identification information and payment information including a subscribers preferred bank account number, bank routing number and routing type. Those skilled in the art will appreciate that accounting and payment processing may be implemented in accordance with the Automated Clearing House (ACH) payment processing regulations established by the National Clearing House Association (NACHA) and the United States Federal Reserve. Subscriber table  402  defines each respective subscriber as a “primary key” within the ISO SQL: 2003 structure. 
         [0042]    Beneficiary table  404  stores essential information related to charitable or otherwise socially desirable beneficiaries as described herein and includes unique fields for storing beneficiary name, tax identification information and payment information including a beneficiaries preferred bank account number, bank routing number and routing type. Beneficiary table  404  further includes a field that identifies whether a particular beneficiary is presently active within social accounting system  102 . Beneficiary table  404  defines each respective beneficiary as a “primary key” within the ISO SQL: 2003 structure. 
         [0043]    Preferred_beneficiary table  406  stores essential information related to preferred beneficiaries as described herein and includes wherein a preferred beneficiary may be determined in accordance with user preference. Preferred_beneficiary table  406  defines unique fields for storing subscriber and beneficiary names and further includes a field that associates a weighting factor with each preferred beneficiary. Preferred_beneficiary table  406  defines each respective preferred beneficiary as a “primary key” within the ISO SQL: 2003 structure, but further includes “foreign key” references to subscriber table  402  and beneficiary table  404 . 
         [0044]    Merchant table  408  stores essential information related to merchants as described herein. Merchant table  408  defines unique fields for storing the identity “id” of each respective merchant and further includes a field that indicates whether respective merchants are presently active in the distributed computer network  102 . Merchant table  408  defines each respective preferred merchant as a “primary key” within the ISO SQL: 2003 structure. 
         [0045]    Merchant_visit table  410  stores essential information for tracking transactions between subscribers and merchants. Merchant_visit table  410  defines unique fields for the number of subscriber “visits” associated with each respective merchant and further includes a field that provides a timestamp associated with each of said “visits”. Merchant_visit table  410  defines each respective merchant “id” as a “primary key” within the ISO SQL: 2003 structure, but further includes “foreign key” references to subscriber table  402 , beneficiary table  404 , and merchant table  408 . 
         [0046]    Merchant_payment table  412  stores essential information related to payments associated with each transaction between respective subscribers and respective merchants. Merchant_visit table  410  defines unique fields for the number of subscriber “visits” associated with each respective merchant and further includes a field that provides a timestamp associated with each of said “visits”. Merchant_visit table  410  defines each respective merchant visit “id” as a “primary key” within the ISO SQL: 2003 structure, but further includes “foreign key” references to subscriber table  402 , beneficiary table  404 , and merchant table  408 . 
         [0047]    Beneficiary_distribution table  414  stores essential information related to distributions to beneficiaries associated with each merchant payment resulting from a transaction between respective subscribers and respective merchants. Beneficiary_distribution table  414  defines a unique field for the payment amount associated with each “distribution” and further includes a field that provides a timestamp associated with each of said “distributions”. Beneficiary_distribution table  414  defines each respective beneficiary distribution “id” as a “primary key” within the ISO SQL: 2003 structure, but further includes “foreign key” references to merchant_payment table  412  and beneficiary table  404 , respectively. 
         [0048]    Published_link table  416  contains fields for storing links associated with each respective subscriber, respective merchants and respective beneficiaries wherein such links may be hyperlinks as defined in accordance with the HTTP protocol. Published_link table  416  defines unique fields for the identification of beneficiaries, merchants, and subscribers which are defined as primary keys, each of which include foreign keys which reference tables  404 ,  408  and  402  within the ISO SQL: 2003 structure, and further includes fields for storing variables “display_title” and “display_info”. 
         [0049]    Those skilled in the art will appreciate that tables  402 - 416  may be implemented as a SQL database hosted on database server  118  or distributed between servers  116 - 118  within transaction processor  110  wherein the information maintained in tables  402 - 416  is accessed and updated by subscriber services server  114  to control the overall operation of distributed computer network  100 . 
         [0050]    The overall operation of distributed computer network  100  as controlled by social accounting system  102  is depicted in further detail in conjunction with the system flow diagrams shown in  FIGS. 5-8 . 
         [0051]      FIG. 5  shows the system control and data flow  500  associated with subscriber initiated transactions and the designation of beneficiaries over distributed computer network  100 . A subscriber initiates a transaction with social accounting system  102  in process step  502 . Decision step  504  queries table  416  to determine whether the subscriber selected a link previously stored in table  416 . If so, process step  508  retrieves the beneficiary link from table  416 . Otherwise, in input step  512 , the subscriber selects from the list of beneficiaries enumerated in table  404 . 
         [0052]    Output step  516  sends display data to the subscriber based on detailed beneficiary information stored in table  402 . Decision step  518  queries whether the subscriber intends to proceed with the selected beneficiary. If not, input step  514  accepts an alternate beneficiary selection listed in table  404  from the subscriber. Otherwise, process step  520  stores the relationship between the beneficiary and subscriber along with a weighting variable in table  406 . 
         [0053]    Process step  522  then determines the relative distribution of proceeds between selected beneficiaries on the basis of the weighting variable stored in table  406 . The results of process step  522  are displayed to the subscriber in output step  524 . Decision step  526  determines whether the subscriber intends to adjust the relative distribution of proceeds among beneficiaries. If so, input step  528  allows the subscriber to adjust the relative distribution of proceeds among beneficiaries. Otherwise, the system control and data flow  500  returns to process subsequent transactions. 
         [0054]      FIG. 6  depicts the system control and data flow  600  associated with processing, accounting and reconciliation of payments over distributed computer network  100 . Upon invocation, output step  602  displays the list of merchants maintained in table through any of client devices  108 . A respective subscriber  104  then selects a merchant in input step  604 . In process step  606 , table  410  is updated with associated subscriber information such as the subscriber identification, link and timestamp described above. 
         [0055]    Process step  608  then re-directs the subscriber to a respective vendor server associated with a selected vendor and the subscriber initiates a transaction in input step  610 . Process step  612  then updates table  412  to record the transaction as a pending payment. Payment and transaction metadata are sent from merchant server  120  to accounting system  122  in process step  614  and the subscriber payment is reconciled in process step  618 . The accounting system  122  then records the received payment and subscriber metadata in table  412 . 
         [0056]      FIG. 7  depicts the system control and data flow  700  associated with the distribution of payments to beneficiaries by accounting server  122  of social accounting system  102 . Upon invocation, decision step  702  determines whether undistributed merchant payments are indicated in table  412 . If not, system control and data flow  700  returns until invoked for subsequent transactions. 
         [0057]    While decision  702  determines un-distributed payments are indicated in table  412 , process step  704  retrieves the payment record from table  412  and process step  706  retrieves associated beneficiary information stored in tables  406 ,  410 . A weighted beneficiary distribution is computed in process step  708  and beneficiary and payment data is transmitted or communicated to payment distribution service  126 . Table  414  is then updated to record respective distributed payments in output step  712  and table  412  is updated in output step  714  to indicate the payment has been distributed. When decision  702  determines un-distributed payments are not indicated in table  412 , system control and data flow  700  returns until invoked for subsequent transactions. 
         [0058]      FIG. 8  shows the system flow and control  800  in which a subscriber may generate messages for advocating on behalf of their preferred beneficiaries through various social media as described above. Upon invocation, a respective subscriber selects a beneficiary from table  404  in input step  802 . The subscriber may optionally designate a preferred merchant from table  408  in input step  804 . The subscriber then enters a narrative or descriptive information in input step  806 . A unique link and validated information input in steps  802 - 806  is stored in table  416  in process step  808 . In output step  810 , the validated information is transmitted to designated recipients through subscriber communication servers  128 . The transmitted information may then be received and viewed by the designated recipients in output step  812  and the system flow and control returns to process subsequent subscriber messages. 
         [0059]    The techniques described herein may be implemented in hardware, software, or any combination thereof. For a hardware implementation, the processing units may be implemented within one or more application specific integrated circuits (ASICs), digital signal processors (DSPs), digital signal processing devices (DSPDs), programmable logic devices (PLDs), field programmable gate arrays (FPGAs), processors, controllers, micro-controllers, microprocessors, desktop computers, any of a number of server types or other electronic units designed to perform the functions described herein, or a combination thereof. 
         [0060]    For software implementations, the techniques described herein may be implemented with modules (e.g., procedures, functions, and so on) that perform the functions described herein. The software codes may be stored in a memory unit and executed by processors, controllers, computers and/or servers described herein. The memory unit may be implemented within the processor or external to the processor, in which case it can be communicatively coupled to the processor via various means as is known in the art. 
         [0061]    The description of the disclosed embodiments is provided to enable any person skilled in the art to make or use the present invention. Various modifications to these embodiments will be readily apparent to those skilled in the art, and the generic principles defined herein may be applied to other embodiments without departing from the spirit or scope of the invention. Thus, the present invention is not intended to be limited to the embodiments shown herein but is to be accorded the widest scope consistent with the principles and novel features disclosed herein. 
         [0062]    Even though the invention is described above with reference to an example according to the accompanying drawings, it is clear that the invention is not restricted thereto and can be modified in several ways within the scope of the appended claims.