How Digital Systems Pool Money from Many People for One Goal
A system that lets multiple people contribute small amounts of money toward a shared goal, only releasing the total funds to a recipient once specific conditions are met.
Original patent title: “Methods and systems for coordinating pooled financial transactions”
A system that lets multiple people contribute small amounts of money toward a shared goal, only releasing the total funds to a recipient once specific conditions are met. Granted to First Data Corp in 2007 with 22 claims and 9 forward citations.
Key facts
Coverage
What does this patent actually cover?
This patent describes a central host system that manages group payments. It allows multiple people to contribute funds from different locations using various devices, like credit card terminals or online interfaces. The system holds these partial payments in a virtual pool until a predefined set of conditions—such as reaching a target dollar amount or a specific deadline—is satisfied. Once the host system confirms the conditions are met, it automatically transfers the accumulated money to the intended beneficiary.
The gap
What does this patent NOT cover?
- Does not cover direct peer-to-peer transfers that do not involve a central host system managing pooled conditions.
- Does not cover simple escrow services where funds are held for a single buyer and seller without a multi-contributor pool.
- Does not cover offline, manual collection of funds that are not processed through a networked host system.
- Does not cover systems where the beneficiary has direct control over the funds before the conditions are met.
These exclusions are unique to PatentBrief — derived from the actual claim language, not patent-office boilerplate.
What made this novel
The innovation lies in the host system's ability to intermittently monitor external conditions to trigger a payout, effectively turning a static payment processor into a logic-based escrow controller.
Schematic visualization of the patent's claim structure. Hand-drawn diagrams in progress for each landmark patent.
Where you've seen this
Real-world examples
Crowdfunding platforms like Kickstarter or GoFundMe
Group gift-giving websites
Shared expense or 'pot' payment apps
Why it matters
The bigger picture
This technology provided an early framework for what we now recognize as crowdfunding and group gifting platforms. By automating the collection and conditional release of funds, it reduced the administrative burden of managing group contributions, which was historically difficult to coordinate across different geographic locations.
Filed
March 17, 2003
Granted
May 29, 2007
Market context
Who's building on this
Companies in this space
Major payment processors like First Data (now Fiserv) and modern fintech companies like Stripe or PayPal utilize similar logic for their payment orchestration layers. These platforms have expanded on these concepts to include complex API-driven triggers for automated payouts.
Market impact
This patent helped formalize the digital infrastructure needed for the modern gig and creator economies. It enabled the shift from manual, trust-based group collections to automated, platform-managed transactions, which is now a standard feature in most consumer finance applications.
Claim 1 — Plain English
What this patent covers
This patent describes a central host system that manages group payments. It allows multiple people to contribute funds from different locations using various devices, like credit card terminals or online interfaces. The system holds these partial payments in a virtual pool until a predefined set of conditions—such as reaching a target dollar amount or a specific deadline—is satisfied. Once the host system confirms the conditions are met, it automatically transfers the accumulated money to the intended beneficiary.
The clever bit
The innovation lies in the host system's ability to intermittently monitor external conditions to trigger a payout, effectively turning a static payment processor into a logic-based escrow controller.
What it does not cover
- Does not cover direct peer-to-peer transfers that do not involve a central host system managing pooled conditions.
- Does not cover simple escrow services where funds are held for a single buyer and seller without a multi-contributor pool.
- Does not cover offline, manual collection of funds that are not processed through a networked host system.
- Does not cover systems where the beneficiary has direct control over the funds before the conditions are met.
Patent timeline
Application submitted to the patent office
Application published, typically 18 months after filing
Patent officially issued
PatentBrief Score
Impact Score
Moderate
Citation count
20/40
Early citations
Claim breadth
15/20
Broad claimsclaimsThe numbered statements at the end of a patent that legally define what the inventor owns.Read more →
Recency
5/20
Granted 10–20 years ago
Assignee scale
0/20
Independent or smaller assigneeassigneeThe entity that owns the patent — usually the inventor's employer or a company.Read more →
PatentBrief Impact Score — based on citation count, claim breadth, recency, and assignee scale. Not a legal assessment.
Heuristic Value Estimate
What this patent might be worth
$19K – $60K
Midpoint $37K · expired or expiring · industry ×1.6
Heuristic only — blends forward/backward citation counts, claim scope, time remaining, litigation history, and CPC-derived industry baseline. Real valuations need a professional appraisal.
The original legal language
Original claims
22 claims as filed with the patent office.
Concepts involved
Citations
Patent lineage
Cite this patent
Hansen, K. (2007). How Digital Systems Pool Money from Many People for One Goal (U.S. Patent No. 7,225,154). U.S. Patent and Trademark Office. https://patentbrief.org/patent/us/7225154/amazon-marketplace
Auto-generated from the patent record. Double-check author order and the issue date against the official USPTO document before submitting.
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Common Questions
Frequently Asked Questions
What does How Digital Systems Pool Money from Many People for One Goal cover?
A system that lets multiple people contribute small amounts of money toward a shared goal, only releasing the total funds to a recipient once specific conditions are met.
Who owns patent US 7225154?
First Data Corp owns this patent, granted in 2007.
When does this patent expire?
This patent is expected to expire on May 29, 2027, when the invention enters the public domain.
What is patent US 7225154 cited by?
This patent has been cited by 9 later patents that build on its ideas.
What problem does this patent solve?
This technology provided an early framework for what we now recognize as crowdfunding and group gifting platforms. By automating the collection and conditional release of funds, it reduced the administrative burden of managing group contributions, which was historically difficult to coordinate across different geographic locations.
What does this patent NOT cover?
Does not cover direct peer-to-peer transfers that do not involve a central host system managing pooled conditions.
Patent monitoring