Patent ID: 7941370

Claim:
A system for processing a financial transaction with an online merchant, the system comprising: a computing device configured to execute a payment service provider module, the payment service provider module configured for: receiving a request to transfer funds from a customer account to an online merchant; in response to receiving the request to transfer funds, allocating a portion of funds being less than all of the funds to be paid to the online merchant to an escrow account limited solely for the benefit of one or more customers to fund a chargeback request or a refund request; in response to allocating the portion of the funds to be paid to the online merchant to the escrow account, storing the allocated portion of funds in the escrow account for a lesser of a predetermined period of time or until the chargeback request or the refund request is received by the system; in response to the merchant receiving a reduced number of chargeback requests or refund requests over a particular time period, reducing the portion of funds to be allocated into the escrow account; and in response to the merchant receiving an increased number of chargeback requests or refund requests over the particular time period, increasing the portion of funds to be allocated into the escrow account.