Interactive market management system

What is claimed is:

1. A system for interactive online electronic communications and interactive on-line processing of business transactions between different types of independent users including at least a plurality of separate on-line sellers, and a plurality of buyers, wherein each user communicates with the system, the system comprising:

access means for providing selective access by users to a data base and for permitting selection of users by at least one other user;

processing means responsive to the access means for interactive on-line processing of a business transaction between one of the plurality of buyers and one of the plurality of online sellers wherein one party to the transaction is specifically selected by the other party via the access means.

2. The system of claim 1 wherein the seller is specifically selected by the buyer via the access means.

3. The system of claim 1 wherein the business transaction involves goods.

4. The system of claim 3 wherein the business transaction involves goods related services.

5. The system of claim 1 wherein the independent users further comprise at least one of a financial institution, and a freight service.

6. The system of claim 1 wherein the independent users further comprise financial institutions and freight service providers.

7. The system of claim 1 wherein the independent users further comprise at least one of agents, information services, commercial services and independent network systems.

8. The system of claim 7 wherein sellers include distributors, wholesalers, and suppliers, and wherein the users in addition to sellers, buyers, freight service providers, and financial service providers, comprise agents, information services, commercial services, and public data bases.

9. The system of claim 8 wherein the processing means further comprises means to permit distributors and agents to order shipments to be made directly from a supplier to a buyer.

10. The system of claim 1 wherein buyers communicate with the system from remote terminals adapted to access communication links, and the access means provides access to the buyers on remote terminals.

11. The system of claim 10 wherein the processing means comprises a central resident means for processing business transactions on behalf of users.

12. The system of claim 11 wherein the processing means further comprises means for processing some business transactions at the remote terminals.

13. The system of claim 10 wherein at least one remote terminal is an automated computer system.

14. The system of claim 10 further comprising means for access by users from remote terminals to public data bases and remote information services.

15. The system of claim 1 wherein the data base comprises a central resident data base for storage of at least seller information.

16. The system of claim 15 wherein the data base further comprises at least one remote data base.

17. The system of claim 1 wherein the processing means further comprises means for concurrent, interactive on-line processing of business transactions between more than two different types of users concurrently conducting an interactive business transaction session.

18. The system of claim 1 further comprising storage means responsive to the processing means for validation and storage of information generated during business transactions.

19. The system of claim 1 further comprising means responsive to the processing means for permitting freight service providers to auction freight services to users and for users to subscribe to and confirm the freight services on-line from remote terminals.

20. The system of claim 1 further comprising financial means responsive to the processing means for permitting users, including financial institutions, to provide financial services to users.

21. The system of claim 20 further comprising means responsive to the financial means for providing selective access to the data base by users providing financial services to permit updating of financial information utilized to evaluate the extension of financial services.

22. The system of claim 1 wherein users information is stored in the data base comprising at least some of seller catalog information, price lists, inventory information, accounting information, customer credit limits, contractual terms of delivery, shipment quantities, back orders, general agreements, special instructions, requests for quotations, routing and freight information, agency agreements, financial agreements, access authorization for individual users, agreements regarding payments, telecommunications network usage, market information, statistical information, econometric information, engineering data, bill of material information, seller history including cancelled orders, bids, shipments, payments, and other transactions processed by the system for the seller.

23. The system of claim 1 further comprising message means for providing message storage, routing, and delivery between system users.

24. The system of claim 1 further comprising validation means responsive to the access means for selectively limiting access to the system based upon at least one password.

25. The system of claim 24 wherein the validation means further comprises means for selectively limiting access to selected data bases, selected services, selected users, and selected business transactions, based upon multiple levels of validation.

26. The system of claim 1 further comprising means responsive to the processing means and data base to process, retrieve and update statistical information regarding transactions and user information.

27. The system of claim 1 wherein the access means further comprises interactive conversational means for providing direct communications between a plurality of users.

28. A system for interactive electronic communications and processing of business transactions between a plurality of different types of independent users including at least a plurality of sellers and a plurality of buyers, and at least one of a financial institution and a freight service provider, wherein each user communicates with the system, the system comprising:

a central resident data base for storage of user information;

access means for providing selective access to the resident data base user information by users from remote terminals on communication links and for providing for periodic exchange of information files between a user's remote terminal and the system;

validation means responsive to the access means for selectively limiting access to the system based upon at least one password;

processing means responsive to the access means and the validation means for on-line interactive processing of business transactions between a user and a plurality of other users during an interactive business transaction session comprising a plurality of different types of business transactions from a remote terminal; and,

means responsive to the processing means for providing access to the data base by sellers from a remote terminal during an interactive business transaction session with a buyer.

29. The system of claim 28 further comprising means responsive to the processing means for freight service providers to auction freight services to users on remote terminals and for users to subscribe to and confirm the freight services on-line from remote terminals.

30. The system of claim 29 further comprising at least one remote data base.

31. The system of claim 30 further comprising storage means responsive to the processing means for validation and storage of information generated during business transaction sessions, and financial transaction means responsive to the processing means for permitting users, including financial institutions, to provide financial services to users.

32. The system of claim 31 further comprising means responsive to the financial transaction means for providing selective access to the data base and to the storage means by users providing financial services to update financial information utilized to evaluate the extension of financial services.

33. The system of claim 32 wherein the seller information stored in the data bases comprises at least some of seller catalog information, price lists, inventory information, accounting information, customer credit limits, contractual terms of delivery, shipment, quantities, back orders, general agreements and special instructions, requests for quotations, routing information to agents, financial agreements, access authorization for individual users, agreements regarding payments, and seller history including cancelled orders, bids, shipments, payments, and other transactions processed by the system for the seller.

34. The system of claim 31 further comprising means for access to the data bases by users from remote terminals to permit updating and retrieval of seller information including inventory information, orders, quotations, and transactions.

35. The system of claim 31 further comprising message means for providing message storage, routing and delivery between system users

36. The system of claim 31 wherein at least one remote terminal is an automated computer system.

37. The system of claim 31 wherein the transaction means processes buyer business transactions including at least one of requesting and receiving price quotations, mortgaging inventory, placing and amending orders, making direct shipment instructions, receiving invoices and statements, product catalog screening, electronic shopping, making payments and accessing user information.

38. The system of claim 31 wherein the validation means further comprises means for selectively limiting access to selected data bases, selected services, selected users, selected business transactions, and selected system functions based upon multiple levels of validation.

39. The system of claim 31 further comprising means for access by users from remote terminals to public data bases and remote information services.

40. The system of claim 31 wherein sellers includes distributors, wholesalers, and suppliers, and wherein the users in addition to sellers, buyers, freight service providers, and financial service providers, comprise agents, information services, commercial services, and public data bases.

41. The system of claim 40 when the processing means further comprises means to permit distributors and agents from remote terminals to order shipments to be made directly from a supplier to a buyer.

42. The system of claim 31 further comprising means responsive to the processing means and data bases to process, retrieve and update statistical information regarding transactions and user information.

43. The system of claim 31 wherein the access means further comprises interactive conversational means for providing direct communications between the remote terminals of a plurality of users

Description Submit all comments and votes

This invention relates generally to the field of automated business, data processing, and data communications systems, and more particularly to a system for interactive communications and processing of business transactions between a plurality of types of users within at least one industry including buyers, wholesalers, distributors, suppliers, agents, and financial and freight carrier services.

The modern business marketplace is consistently growing in complexity thereby generating a need for businesses to achieve new levels of efficiency to maintain a competitive advantage as well as to take advantage of opportunities presented by the marketplace growth and complexity. Thus, for example, data processing and other computer functions are becoming widely utilized in modern business with most businesses having installed on-site computer facilities to aid in business operations (e.g., accounting, scheduling, payroll, etc.).

In addition, electronic data communications systems and networks have provided improvements over existing business communication links. As a result, recent efforts have been made to provide computer to computer data exchange standards within a particular market. Such standards employ standardized information structure, standardized communication protocols, and special interface programs to facilitate the interlinking of on-site computer systems and terminals. These standards permit what amounts to an electronic mail system within a single industry to accommodate two-way transactions such as sending purchase orders, purchase order acknowledgements, etc. Software systems have been proposed for translating a company's internal data to conform to standard communication standards for transmission and for reconfiguring received data to internal formats. This software permits wider use of the communications standards. These systems, nevertheless, are limited to direct two-way communications between two parties.

Additional efforts to provide interlinking services between computer systems within a given industry have involved the development of some compatibly standards between otherwise incompatible data processing and communication equipment. In addition, third party service providers have started what are commonly known as "value added networks" based on packet switching technology, in which many otherwise incompatible users may "dial-up" a local access phone number to get on the network, which itself provides some compatibility conversions, and thereby provides access to a particular set of software services. In addition, some manufacturers have developed dedicated private networks in which they give their customers or suppliers a dedicated set of software based services to be interconnected over a predetermined system of compatible hardware.

Dramatic new efficiencies can be provided by the configuration of on-line interactive concurrent electronic services which creates a marketplace which can serve a wide spectrum of buyers, wholesalers, distributors, suppliers, agents, and other service providers within an industry or multiple industries, as well as to freight, financial, and other services deployed over any number of existing communications systems. Such an electronic marketplace can optimize the procurement process, optimize freight usage, cut inventory costs at each level of the distribution chain, and permit new and previously impossible or impractical transactions and business arrangements.

It is accordingly an object of this invention to provide a novel interactive, broad spectrum business transaction processing system.

It is yet another object of the invention to provide a novel interactive business transaction processing system permitting controlled on-line interactive concurrent electronic access to various members of an industry, to freight, financial, and related services, and to operational and commercial information data bases and computing services.

It is yet another object of the invention to provide a novel system for interactive on-line electronic communications and processing of business transactions between a plurality of sellers and a plurality of buyers.

Briefly, according to one embodiment of the invention, a system is provided for interactive on-line communications and processing of business transactions between different types of independent users including at least a plurality of sellers, and a plurality of buyers, wherein each user communicates with the system. The system comprises access means for providing selective access to a data base by users. Processing means is provided responsive to the access means for interactive on-line transactions between one of the plurality of buyers and a selected one of the plurality of sellers wherein one party to the transaction specifically selects the other party. In an alternative embodiment, the processing means provide for concurrent, interactive on-line processing of business transactions between more than two different users concurrently conducting an interactive business transaction session.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention, together with further objects and advantages thereof, may be understood by reference to the following description taken in conjunction with the accompanying drawings.

FIG. 1 is a generalized block diagram illustrating the structure of a specific embodiment of the interactive business transaction market management system according to the invention.

FIG. 2 is a generalized block diagram illustrating the organizational relationship between market participants and the interactive market management system according to the invention.

FIG. 3 is a generalized flow diagram illustrating the methodology and structural flow for a BUYER transaction function for a specific embodiment of the interactive market management system according to the invention.

FIG. 4 is a detailed flow diagram illustrating the methodology and structural flow for a LOG-IN function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 5 is a flow diagram illustrating the processing methodology and structural flow for the NEWS function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 6 is a flow diagram illustrating the processing methodology and structural flow for the INCOMING MAIL function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 7 is a flow diagram illustrating the processing methodology and structural flow for the SERVICE SELECTION and security validation level-2 function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 8 is a flow diagram illustrating the processing methodology and structural flow for the SIGNING and function shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 9 is a flow diagram illustrating the processing methodology and structural flow of an ESTABLISH CONNECTION function as shown in FIG. 8. for a specific embodiment of the interactive market management systems according to the invention.

FIG. 10 is a flow diagram illustrating the processing methodology and structural flow for a service selection SHORTCUT function for a specific embodiment of the interactive market management system according to the invention.

FIG. 11 is a flow diagram illustrating the processing methodology and structural flow for the MAIL function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 12 is a flow diagram illustrating the processing methodology and structural flow for the FUNCTION SELECTION and security validation level-4 function as shown in FIG. 11 for a specific embodiment of the interactive market management system according to the invention.

FIG. 13 is a flow diagram illustrating the processing methodology and structural flow for the general INFORMATIONAL SERVICE function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 14 is a flow diagram illustrating the processing methodology and structural flow for the PROCUREMENT PROCESS function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 15 is a flow diagram illustrating the processing methodology and structural flow for the PAYMENT function as shown in FIG. 14 for a specific embodiment of the interactive market management system according to the invention.

FIG. 16 is a flow diagram illustrating the processing methodology and structural flow for the FINANCIAL SERVICES function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 17 is a flow diagram illustrating the processing methodology and structural flow for the BORROWING function as shown in FIG. 16 for a specific embodiment of the interactive market management system according to the invention.

FIG. 18 is a flow diagram illustrating the processing methodology and structural flow for the MORTGAGE ORDER/INVOICE function as shown in FIG. 16 for a specific embodiment of the interactive market management system according to the invention.

FIG. 19 is a flow diagram illustrating the processing methodology and structural flow for the FREIGHT SERVICE function as shown in FIG. 3 for a specific embodiment of the interactive market management system according to the invention.

FIG. 20 is a flow diagram illustrating the processing methodology and structural flow for the DISTRIBUTOR function for a specific embodiment of the interactive market management system according to the invention.

FIG. 21 is a flow diagram illustrating the processing methodology and structural flow for the AUTOMATIC INFORMATION SERVICES function as shown in FIG. 20 for a specific embodiment of the interactive market management system according to the invention.

FIG. 22 is a flow diagram illustrating the processing methodology and structural flow for the distributor's FINANCIAL SERVICE functions as shown in FIG. 20 for a specific embodiment of the interaction market management system according to the invention.

FIG. 23 is a flow diagram illustrating the processing methodology and structural flow for the distributor's FACTORING-BORROWING function as shown in FIG. 22 for a specific embodiment of the interactive market management system according to the invention.

FIG. 24 is a flow diagram illustrating the processing methodology and structural flow for the CUSTOMER SERVICE function as shown in FIG. 20 for a specific embodiment of the interactive market management system according to the invention.

FIG. 25 is a flow diagram illustrating the processing methodology and structural flow for a SUPPLIER function for a specific embodiment of the interactive market management system according to the invention.

FIG. 26 is a flow diagram illustrating the processing methodology and structural flow for the supplier's AUTOMATIC INFORMATION SERVICE function as shown in FIG. 25 for a specific embodiment of the interactive market management system according to the invention.

FIG. 27 is a flow diagram illustrating the processing methodology and structural flow for the supplier's FINANCIAL SERVICES function as shown in FIG. 25 for a specific embodiment of the interactive market management system according to the invention.

FIG. 28 is a flow diagram illustrating the processing methodology and structural flow for a FINANCIAL INSTITUTION transaction function for a specific embodiment of the interactive market management system according to the invention.

FIG. 29 is a flow diagram illustrating the processing methodology and structural flow for the AUTOMATIC FINANCIAL SERVICE function as shown in FIG. 28 for a specific embodiment of the interactive market management system according to the invention.

FIG. 30 is a flow diagram illustrating the processing methodology and structural flow for the FINANCIAL INSTITUTION OPERATIONAL function as shown in FIG. 28 for a specific embodiment of the interactive market management system according to the invention.

FIG. 31 is a flow diagram illustrating the processing methodology and structural flow for a FREIGHT CARRIER function for a specific embodiment of the interactive market management system according to the invention.

FIG. 32 is a flow diagram illustrating the processing methodology and structural flow for the freight carrier AUTOMATIC INFORMATION SERVICE function as shown in FIG. 31 for a specific embodiment of the interactive market management system according to the invention.

FIG. 33 is a flow diagram illustrating the processing methodology and structural flow for the FREIGHT CARRIER OPERATIONAL function as shown in FIG. 31 for a specific embodiment of the interactive market management system according to the invention.

FIG. 34 is a flow diagram illustrating the processing methodology and structural flow for the BORROWING GOODS function as shown in FIG. 20 for a specific embodiment of the interactive market management system according to the invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

FIG. 1 is a generalized block diagram illustrating the structure of a specific embodiment of the interactive market management system 50 for interactive communications and processing of business transactions between users according to the invention. The system 50 permits users such as buyers, sellers, etc. at remote sites to conduct business transactions and communicate with data bases on other computing services from a variety of remote terminals, as shown. Various types of remote terminals may b e utilized such as dumb terminals 68, 70 (e.g., ASCII terminals) which provide terminal access to the system 50 without any local processing capability, or remote intelligent terminals 62, 64 such as a personal computer 62, and a personal computer 64 including a mass storage device 66 (e.g., an International Business Machines personal computer, or a 327x terminal) for storage of a remote data base. Additionally, the remote sites may comprise a remote computer system 56 through which operators communicate via terminals 58, 60, as shown, or the remote site may comprise an automatic computer system 52, 54 which may include a mass storage device 53, (e.g., magnetic hard disk) for storage of a remote data base.

Various remote sites communicate with a central processor 80 which comprises a central processing unit (CPU) 81, communications interface 79, and a mass storage system 72. The CPU 81 provides local processing capability and the communications interface 79 provides an interface to permit access by the remote users to the processor 80 and to the local data bases stored on the mass storage system 72 via communication links 74a-i. In addition, pass-thru communications is also available, such as terminals 60, 70 communicating thru the central processor 80 with the computer 52 accessing data stored on the mass storage device 53. The communication links 74a-8i may be any of a wide variety of network services, such as public telephone networks, public data networks (e.g., Telenet), open virtual lines, private or public network, ISDN, Software Defined Networks, leased datalines, etc. The remote communications may use any of a variety communications protocols such as System Network Architecture (SNA), X.25, ASYNCH, BSC, etc. The communications interface 79 also permits users to access remote data bases of subscribers providing such data bases, as well as access to external information services including public data base services, or remote computer services. The communications interface 79 further provides for access to other interactive market management (IMM) systems 75 via a communications link 74g, as shown.

Referring now to FIG. 2, there is shown a generalized block diagram illustrating the organizational relationship between market participants (i.e., system users) and the interactive market management system 50 according to the invention. Users may include a wide variety of participants in an industry market as well as other service providers and interested users. Users who subscribe to the services of the interactive market management system have all the services of the system available to them while non-subscribers may access the system and communicate with data bases of subscribers who authorize such access. Subscribers may include such market participants as sellers (i.e. distributors 83, suppliers 84), their agents 98 (e.g., manufacturers'representatives), buyers 82, freight service providers 86, financial service providers 96, commercial service providers 88, information service providers 94, and proprietary service providers 90, as shown. The interactive market management system 50 may also be linked to other interactive market management systems 92 in other industries.

Subscribing distributors, for example, can provide their customers with more convenient and more efficient ways to purchase goods and enjoy improved operations when utilizing the interactive market management system 50. In providing on-line, interactive electronic access to multiple sources as well as to freight, financial, and other related services, the interactive market management system 50 optimizes the procurement process, cuts costly inventories at each level of the distribution chain and provides controlled access to valuable operational and commercial information. Access to distributors is provided by a menu of optional services which may range from a simple mailbox service used to collect customer orders to a complete automated wholesale distributor management system that includes such functions as order entry, inventory control, sales and management reports and financial subsystems. Thus, a distributor may offer its customers an interactive, convenient and consistent way to place orders or conduct any other business with the distributor. This also permits the system 50 to provide buyers with a reliable and consistent way of reaching multiple sources to shop for goods, electronic access to carriers for shipping, and convenient access to financial resources and services, and information services. Thus, subscribing sellers are provided the necessary exposure and availability to a large community of buyers as well as a convenient access to a variety of important services related to their operation. This creates new efficiencies in shipping, financing, and promotion of products by providing a novel system for electronic online interactive access to a whole range of services related to the selling or buying process.

The interactive market management system 50 allows concurrent sessions with multiple parties, usable, for example, for shopping or closing all the details of an urgent shipment that has to be coordinated with an agent, a source, and a shipping company. In shipping and freight services, the market management system 50 makes available an option to permit shopping for available space on desired routes as advertised by various freight carriers or to directly inquire and book carrier services and receive intermediate confirmation that allows immediate scheduling. In addition, the system 50 supports for batch communications with third parties providing mailbox services to buyers and sellers who don't want to make their own systems available continuously. A unique advantage of this service is that while communications with the mailbox owner may be done periodically and on a batch basis, the appearance to the user can be one of an interactive exchange. A user may use the system 50 resources for its processing capabilities or may use the system simply as a conduit to translate the transactions and communicate them to remote computing facilities.

In addition, the system 50 can interconnect and serve as a conduit to a variety of other services such as airline reservations, data bases, banks, insurance companies, etc. Also, the system 50 provides subscribers with access to a variety of information services such as data base services including those provided by the system 50 itself using information stored in its own files (i.e., directories, information purchased by it for distribution, etc) or as a conduit to other information data base providers (e.g., Dialog, etc.). Access is also provided to computer services where the system 50 itself provides the processing capability or where a remote computer service is linked to the system 50 to provide users with computing services (e.g., engineering, forecasting, etc.). Finally, the system allows individual subscribers to use the network as a means to provide their own proprietary commercial and information services.

To provide the various services to subscribers and other users the system 50 maintains a local data base which may include a complete data base for individual subscribers as well as a partial data base of a subscriber. The service available to users can be accessed in a variety of operational modes which are characterized by the location of the computing logic, the location of the data base, and the communications mode. The location of the computing intelligence, which includes the logic for accepting or rejecting and processing a transaction, may reside with the central processor of the system 50 or it may reside in a remote computer of the subscriber. In addition, the subscriber's data base may be a completely local data base entirely located within the storage device of the system 50 or may be completely remote residing entirely in the data base storage medium of the subscriber's computing system. Alternatively, the systems may be shared in which case part of the user's data base is maintained at the system 50 processing center and part is maintained at the subscriber's computing center. Communication modes may be either interactive involving a continuous flow of transactions in both directions or batch involving periodic transfer of information or transactions in one direction at a time.

An Alert feature is available to subscribers using direct point to point communications with the system 50. Such users can define one or more of its remote terminals as Alert terminals. When an event that was flagged by the subscriber occurs, a message is displayed on the status line of the remote terminal along with an audio indication. Events that may be flagged include a shortage of inventory to satisfy an umbrella agreement order, an incoming conversational call, and incoming request for quotation (RFQ) from an important customer, etc.

An interactive conversational service is also available between different users who have either a need for immediate response or want their conversation to be recorded by the system 50 for their records. In a conversational session, one party submits to the system 50 a request for conversation. The system 50 uses its alert feature to advise the other party about the incoming call. Once the communications link has been established, the two parties exchange messages in turn. The entire conversation is recorded and a copy may be submitted to both parties as well as to other authorized subscribers. While the initiator may use either a switched or a dedicated communication link, the receiver should be a subscriber with a direct point to point link connecting its terminal.

Various transactions may involve an interactive mode in which complete interactive service is provided with immediate confirmation based on a local system data base. Interactive service may also be based upon a data base residing in another subscriber's remote computing center such that the interactive process requires retrieving and modifying information on the remote data base. In addition, an interactive mode is provided in which the system computer translates and transmits transactions to and from a user subscriber's computer system. Batch modes may be initiated in which a remote data base and other information are downloaded periodically to the system 50 data base and wherein transactions are accumulated by the system and periodically transmitted to the remote site. Further, a third party mailbox service is provided for accumulating transactions collected by the system 50 and transferring them periodically to the appropriate correspondents.

Financial service can be made available via the system 50 allowing financial institutions to lend money to the industry and to finance both the distribution channels and the buyer. This is achieved by control of the credit levels at each stage in a detailed way and by novel distribution of the credit risks between the lending party, the supplier, the distributor, and the buyers. In addition, the system 50 provides direct interaction between sellers, buyers, and service providers in all stages of the market distribution chain. Thus, it can accumulate all of the relevant information throughout the trading process. As a result of these capabilities, the system 50 has the unique ability to handle the financial outcome of the various transactions (e.g., payment, mortgaging, collection of funds, reports, etc.). Consequently, the system 50 may make available some financial services that are practically impossible without an overall coverage of the trading cycle including invoice and order mortgaging. For example, the system 50 also allows a buyer to mortgage a payment of a particular order or invoice to a financial institution or supplier. Using a set of detailed reports, the system 50 makes it convenient and practical for distributors to raise capital based on the credit rating of their customers, for suppliers to extend credit to their distributors or to the end users via the distributors for orders of their products, and for financial institutions to provide factoring with detailed credit controls and limits approved for both the buyer and the distributor. Thus, buyers can use novel or previously impractical financial services in a manner heretofore unavailable to enable them to negotiate better terms.

A payment service capability is provided to the user (e.g., buyer, distributor, supplier, service provider, etc.) who authorizes the system 50 to carry its payment instructions to the user's bank. Based upon the acceptance of such authorization by the bank, the user may use its remote terminal to authorize the system 50 to transfer payment instructions through the bank. This payment service automatically advises all relevant parties about such transactions even before the actual payment takes place. An early automatic advisory to the payee allows the payee to immediately update his credit control information. In some cases a payor will commit in advance to pay a particular invoice through the system 50. Based upon this commitment, a bank, financial institution, or a lender will make credit available to either the buyer or the seller (factoring). Payment of such "mortgaged invoices" is diverted by the system 50 and is made to the beneficiary's account on behalf of the seller (in factoring) or on behalf of the buyer (where the credit was extended to the buyer by a third party).

The buyer of goods or services can inform the system 50 that he commits to pay for a particular invoice or for invoices covering a particular order through the system payment services. This commitment is the basis for allowing third parties to extend credit to the buyer through the system and for allowing third parties to extend credit to the seller on the basis of its outstanding invo