How a Centralized Broker Handles Online Shopping Transactions
A system where a third-party broker handles payments and shipping logistics for online merchants, allowing customers to checkout without entering payment details on every individual site.
Original patent title: “Distributed electronic commerce system with centralized point of purchase”
A system where a third-party broker handles payments and shipping logistics for online merchants, allowing customers to checkout without entering payment details on every individual site. Granted to Google LLC in 2011 with 32 claims and 9 forward citations, and it is now in the public domain.
Coverage
What does this patent actually cover?
The patent describes a central broker system that acts as an intermediary between a customer and an online merchant. When a customer is ready to buy, the merchant sends a description of the shopping cart to the customer's device, which then forwards that data to the broker. The broker then takes over the checkout process, presenting the user with shipping and payment options, calculating the final total, and charging the customer directly. Finally, the broker notifies the merchant of the completed transaction so the goods can be shipped. This allows the broker to manage the financial and logistical details while the merchant focuses on the product catalog.
The gap
What does this patent NOT cover?
- Does not cover direct merchant-to-customer transactions where the merchant processes the payment themselves.
- Does not cover systems where the merchant retains full control over the payment processing and tax calculation.
- Does not cover peer-to-peer payment systems that lack a centralized broker coordinating with a merchant's inventory.
These exclusions are unique to PatentBrief — derived from the actual claim language, not patent-office boilerplate.
Key facts
What made this novel
The innovation lies in the merchant offloading the most complex parts of e-commerce—payment processing, tax calculation, and shipping coordination—to a third-party broker, while still maintaining the merchant's own storefront.
The Patent Drawing
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
Google Pay (formerly Google Checkout)
PayPal Express Checkout
Amazon Pay
Shop Pay
Why it matters
The bigger picture
This patent describes the architectural foundation for modern 'Buy with Google' or 'Checkout' style services. By centralizing the transaction, it reduces the security risk of sharing credit card information with hundreds of different small merchants and simplifies the checkout experience for the user.
Filed
April 22, 2005
Granted
January 4, 2011
Market context
Who's building on this
Companies in this space
Google continues to iterate on this architecture through its Google Pay platform. Other major players like PayPal and Stripe have built extensive ecosystems that rely on this same fundamental broker-merchant relationship to facilitate global online commerce.
Market impact
This technology enabled the rise of universal checkout buttons, which significantly reduced cart abandonmentabandonmentWhen an applicant fails to respond to an office action in time, the application is abandoned and the case closed.Read more → rates by streamlining the payment process. It helped shift the e-commerce landscape from fragmented, merchant-specific checkouts to a more unified, platform-based experience.
Claim 1 — Plain English
What this patent covers
The patent describes a central broker system that acts as an intermediary between a customer and an online merchant. When a customer is ready to buy, the merchant sends a description of the shopping cart to the customer's device, which then forwards that data to the broker. The broker then takes over the checkout process, presenting the user with shipping and payment options, calculating the final total, and charging the customer directly. Finally, the broker notifies the merchant of the completed transaction so the goods can be shipped. This allows the broker to manage the financial and logistical details while the merchant focuses on the product catalog.
The clever bit
The innovation lies in the merchant offloading the most complex parts of e-commerce—payment processing, tax calculation, and shipping coordination—to a third-party broker, while still maintaining the merchant's own storefront.
What it does not cover
- Does not cover direct merchant-to-customer transactions where the merchant processes the payment themselves.
- Does not cover systems where the merchant retains full control over the payment processing and tax calculation.
- Does not cover peer-to-peer payment systems that lack a centralized broker coordinating with a merchant's inventory.
Patent timeline
Application submitted to the patent office
Application published, typically 18 months after filing
Patent officially issued
Patent enters public domain
This patent is in the public domain
See the Freedom to Build guide — what is free to use, what is not, and how to cite this patent.
PatentBrief Score
Impact Score
Strong
Citation count
20/40
Early citations
Claim breadth
20/20
Very broad protection
Recency
5/20
Granted 10–20 years ago
Assignee scale
20/20
Major company or institution
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
$23K – $74K
Midpoint $46K · 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.
Patent Claims
0 independent claims · 1 dependent
Claims are the legal boundaries of the patent. An independent claim stands alone. A dependent claim adds limitations to its parent, narrowing — but not broadening — the scope.
The original legal language
Original claims
32 claims as filed with the patent office.
Concepts involved
Citations
Patent lineage
Cite this patent
Dierks, T. M., Perrochon, L. V., & Crespo, A. E. (2011). How a Centralized Broker Handles Online Shopping Transactions (U.S. Patent No. 7,865,399). U.S. Patent and Trademark Office. https://patentbrief.org/patent/us/7865399/distributed-electronic-commerce-system-with-centralized-point-of-purchase
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 a Centralized Broker Handles Online Shopping Transactions cover?
A system where a third-party broker handles payments and shipping logistics for online merchants, allowing customers to checkout without entering payment details on every individual site.
Who owns patent US 7865399?
Google LLC owns this patent, granted in 2011.
When does this patent expire?
This patent has expired and is now in the public domain — anyone can use the invention freely.
What is patent US 7865399 cited by?
This patent has been cited by 9 later patents that build on its ideas.
What problem does this patent solve?
This patent describes the architectural foundation for modern 'Buy with Google' or 'Checkout' style services. By centralizing the transaction, it reduces the security risk of sharing credit card information with hundreds of different small merchants and simplifies the checkout experience for the user.
What does this patent NOT cover?
Does not cover direct merchant-to-customer transactions where the merchant processes the payment themselves.
Same assignee
More from Google LLC
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