Paypal, Inc.

Luke Paul Nosek

Kyle Hansen

Denise Aptekar

Todd Pearson

Roelof Frederik Botha

Maria Lee

Christopher Richman

Max Levchin

Scott Alan Banister

Peter Thiel

Chris Richman

A system and method for making proceeds of a transaction available to a user before the transaction is completed is provided. The system may be part of an on-line system or traditional merchant configured to facilitate payments or fund transfers from users. In example embodiments, a request from a first entity to conduct a transaction involving a first value is received. Funds of the transaction are caused to be released prior to the transaction clearing a financial institution. Based on the transaction being rejected by the financial institution, at least a portion of the first value is charged against a credit source.

Instant availability of electronically transferred funds

A system and method for facilitating a value exchange transaction. A first party initiates the transaction by selecting or providing an identifier of another party and the value to be exchanged. The second party may be identified by a pre-existing identifier such as an electronic mail address, telephone number, etc. The system informs the second party of the transaction (e.g., using the specified pre-existing identifier). If the second party is not a registered user of the system, he or she is invited to register and complete the transaction. The system may comprise a synchronization server for exchanging transaction details with users' devices, a communication server for registering new users and/or conducting transactions online and a financial server for interacting with external financial institutions.

System and methods for facilitating value exchanges using mobile devices

A system and method for making funds of a transaction available to a user before a funding entry clears is provided. The system may be part of an on-line system configured to facilitate payments or fund transfers from users. In example embodiments, a transaction request from a user is received. A risk score indicating a perceived risk involved with releasing funds before the funding entry clears is computed. Funds of the transaction are caused to be released prior to the funding entry clearing a financial institution based on the risk score exceeding a transfer threshold.

Instant availabililty of electronically transferred funds

A system and method for making proceeds of an ACH (Automated Clearinghouse) transaction available to a user before the transaction is completed. The system may be part of an on-line system or traditional merchant configured to facilitate payments or fund transfers from users. A user requests the transfer of funds to an entity (e.g., another user, a merchant, the user's account with the system) via an ACH entry. The system calculates a risk associated with the user, while considering various data (e.g., number of previous ACH entries, how many failed, how many succeeded, amount of the transfer). If the risk is low enough, the ACH entry is initiated and the desired funds are released for the transfer even before the ACH entry clears. The ACH entry may be presented as a default choice for funding the transfer.

A system and method for making proceeds of an ACH (Automated Clearing House) transaction available to a user before the transaction is completed. The system may be part of an on-line or traditional merchant or system configured to allow or facilitate payments or fund transfers from users. When a user requests payment or transfer of funds to an entity (e.g., another user, a merchant, the user's account with the system) via an ACH entry, the system authorizes the amount against a credit source of the user or otherwise verifies that the user has sufficient credit to cover the payment/transfer. If the authorization succeeds, the system places a hold on the credit source in the amount of the transaction. The ACH entry is then initiated and the desired funds are released. If the ACH transaction is rejected or returned, the user's credit source is charged.

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Palo Alto, CA, United States of America

Luke Paul Nosek