Patent ID: 8412627

Claim:
A method for transferring funds in an online transaction between a first party and a second party, the method comprising steps of: receiving payment information from the first party, the payment information including a payee identification; determining a first account associated with the first party; determining a second account associated with the second party, wherein at least one of the first account and the second account is a bank account; providing a third account, the third account not associated with either the first party or the second party, wherein the third account is a stored value account, the third account receiving credits from the first account and debits from the second account, wherein the store value account holds stored value funds; initiating a first transfer from the first account to the third account; receiving payee information from the second party, the payee information including the payee identification; checking the payee identification received from the second party with the payment information; if the payee identification received from the second party is the same as the payment information, initiating a second transfer from the third account to the second account, wherein initiating the second transfer occurs before the first transfer has cleared; and if the payee identification received from the second party is not the same as the payment information, denying the second transfer from the third account to the second account.