U.S. patent application number 11/139523 was filed with the patent office on 2005-10-06 for multi-factor algorithm for facilitating electronic payments to payees.
This patent application is currently assigned to CHECKFREE CORPORATION. Invention is credited to Baulch, Howard, Keown, Blake, Koltnow, Adam, Moenickheim, Peter.
Application Number | 20050222954 11/139523 |
Document ID | / |
Family ID | 30770106 |
Filed Date | 2005-10-06 |
United States Patent
Application |
20050222954 |
Kind Code |
A1 |
Keown, Blake ; et
al. |
October 6, 2005 |
Multi-factor algorithm for facilitating electronic payments to
payees
Abstract
The payment service provider receives a request to make a
payment to a payee on behalf of the payor, via a wide area network.
The payment service provider first determines whether or not first
payee identity information for the payee to be paid pursuant to the
received request, which is included in first data associated with
the payor, has an associated indicator indicating that the payee to
be paid is payable by crediting that payee via electronic funds
transfer. If not, the payment service provider next determines
whether or not respective second payee identity information, which
is included in second data associated with multiple payees and
identifies each of the multiple payees payable on behalf of
multiple payors by crediting that payee via electronic funds
transfer, identifies the payee to be paid. If so, the payment
service provider directs the requested payment by crediting, via
electronic funds transfer, a deposit account represented by the
deposit account information associated with the respective second
payee identity information identifying the payee to be paid in the
second data.
Inventors: |
Keown, Blake; (Lewis Center,
OH) ; Moenickheim, Peter; (Dublin, OH) ;
Baulch, Howard; (Dublin, OH) ; Koltnow, Adam;
(Delware, OH) |
Correspondence
Address: |
ANTONELLI, TERRY, STOUT & KRAUS, LLP
1300 NORTH SEVENTEENTH STREET
SUITE 1800
ARLINGTON
VA
22209-3873
US
|
Assignee: |
CHECKFREE CORPORATION
NORCROSS
GA
|
Family ID: |
30770106 |
Appl. No.: |
11/139523 |
Filed: |
May 31, 2005 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
11139523 |
May 31, 2005 |
|
|
|
10205615 |
Jul 26, 2002 |
|
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Current U.S.
Class: |
705/40 |
Current CPC
Class: |
G06Q 20/02 20130101;
G06Q 20/401 20130101; G06Q 20/00 20130101; G06Q 30/04 20130101;
G06Q 20/108 20130101; Y10S 707/99931 20130101; Y10S 707/99933
20130101; G06Q 20/102 20130101 |
Class at
Publication: |
705/040 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A method for making a payment requested via a wide area network
on behalf of a payor, comprising: receiving, by a payment service
provider via a network, a request for the payment service provider
to make a payment to a payee on behalf of the payor; determining,
by the payment service provider, whether or not first payee
identity information for the payee to be paid pursuant to the
received request, which is included in first data associated with
the payor, has an associated indicator indicating that the payee to
be paid is payable by crediting that payee via electronic funds
transfer; if it is determined that there is no indicator,
determining, by the payment service provider, whether or not
respective second payee identity information included in second
data associated with and identifying multiple payees payable on
behalf of multiple payors by crediting via electronic funds
transfer, identifies the payee to be paid; and if it is determined
that the payee to be paid is identified, directing, by the payment
service provider, the requested payment on behalf of the payor by
crediting, via electronic funds transfer, a deposit account
represented by deposit account information associated with the
respective second payee identity information identifying the payee
to be paid included in the second data.
2. The method of claim 1, wherein: the received request for the
payment service provider to make the payment to the payee on behalf
of the payor includes a name of the payee; and the payee name
included in the received request corresponds to the first payee
identity information for the payee to be paid that is included in
the first data.
3. The method of claim 1, further comprising: if it is determined
that the respective second payee identity information included in
the second data does not identify the payee to be paid, directing,
by the payment service provider, the requested payment by check or
draft payable to the payee to be paid.
4. The method of claim 1, wherein: the electronic funds transfer is
an ACH transfer.
5. The method of claim 1, wherein: the indicator is a unique payee
identifier for the payee to be paid.
6. The method of claim 5, further comprising: if it is determined
that the associated unique payee identifier is included in first
data, determining, by the payment service provider, the deposit
account represented by the deposit account information which is
included in the second data in association with unique payee
identifier determined to be included in the first data; and
directing, by the payment service provider, the requested payment
by crediting, via electronic funds transfer, the determined deposit
account.
7. The method of claim 6, wherein: the electronic funds transfer is
an ACH transfer.
8. A system for making a payment requested via a wide area network
on behalf of a payor, comprising: a first data store, associated
with the payor, having first payee identity information for a
payee; a second data store, associated with payees, having
respective second payee identity information identifying each of
multiple payees payable on behalf of multiple payors by crediting
via electronic funds transfer and respective deposit account
information associated with the second payee identity information
identifying each of the multiple payees; and a processor configure
to (i) receive, via a network, a request to make a payment to the
payee on behalf of the payor, (ii) determine, responsive to the
received request, whether or not the stored first payee identity
information for the payee has an associated indicator indicating
that the payee is payable by crediting via electronic funds
transfer, (iii) if it is determined that there is no associated
indicator, determining whether or not the respective second payee
identity information in the second data store identifies the payee,
and (iv) if it is determined that the respective second payee
identity information identifies the payee, directing the requested
payment by crediting, via electronic funds transfer, a deposit
account represented by the respective deposit account information
associated with the respective second payee identity information
identifying the payee in the second data store.
9. The system of claim 8, wherein: the received request to make the
payment to the payee on behalf of the payor includes a name of the
payee; and the payee name included in the received request
corresponds to the first payee identity information in first data
store.
10. The system of claim 8, wherein: the processor is further
configured to direct the requested payment by check or draft
payable to the payee, if it is determined that the payee is not
identified by the respective second payee identity information in
the second data store.
11. The system of claim 8, wherein: the electronic funds transfer
is an ACH transfer.
12. The system of claim 8, wherein: the associated indicator is an
associated unique payee identifier for the payee to be paid.
13. The system of claim 12, wherein: the second data store also has
a respective unique payee identifier associated with the respective
deposit account information associated with the second payee
identity information identifying each of one or more of the
multiple payees; and if it is determined that the first data store
has the associated unique payee identifier, the processor is
further configured to direct the requested payment by crediting,
via electronic funds transfer, the deposit account represented by
the respective deposit account information associated, in the
second data store, with the unique payee identifier determined to
be in the first data store.
14. The system of claim 13, wherein: the electronic funds transfer
is an ACH transfer.
15. A networked system, including multiple network stations
interconnected by a wide area communications network, for making a
payment requested via the network on behalf of a payor, comprising:
a first data store, associated with the payor, having first payee
identity information for a payee; a second data store, associated
with payees, having respective second payee identity information
identifying each of multiple payees payable on behalf of multiple
payors by crediting via electronic funds transfer and respective
deposit account information associated with the second payee
identity information identifying each of the multiple payees; a
first network station, representing the payor, configured to
transmit, via the network, a request to make a payment to the payee
on behalf of the payor; and a second network station, representing
a bill payment service provider, configured (i) to determine,
responsive to the transmitted request, whether or not the first
payee identity information for the payee in the first data store
has an associated indicator indicating that the payee is payable by
crediting via electronic funds transfer, and (ii) if it is
determined that there is no associated indicator, to determine
whether or not the respective second payee identity information in
the second data store identifies the payee, and (iii) if it is
determined that the respective second payee identity information
identifies the payee, to direct the requested payment by crediting,
via electronic funds transfer, a deposit account represented by the
respective deposit account information associated with the
respective second payee identity information identifying the payee
in the second data store.
16. The networked system of claim 15, wherein: the transmitted
request to make the payment to the payee on behalf of the payor
includes a name of the payee; and the second network station
determines that the respective second payee identity information in
the second data store identifies the payee based on a
correspondence between the payee name included in the transmitted
request and the respective first payee identity information in the
first data store.
17. The networked system of claim 15, wherein: the second network
station is further configured to direct the requested payment by
check or draft payable to the payee, if it is determined that the
respective second payee identity information in the second data
store does not identify the payee.
18. The networked system of claim 15, wherein: the electronic funds
transfer is an ACH transfer.
19. The networked system of claim 15, wherein: the associated
indicator is an associated unique payee identifier for the payee to
be paid.
20. The networked system of claim 19, wherein: the second data
store also has a respective unique payee identifier associated with
the respective deposit account information associated with the
second payee identity information identifying each of one or more
of the multiple payees; and if it is determined that the first data
store has the associated unique payee identifier, the second
network station is further configured to direct the requested
payment by crediting, via electronic funds transfer, the deposit
account represented by the respective deposit account information
associated, in the second data store, with the unique payee
identifier determined to be in the first data store.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of application Ser. No.
10/205,615, filed Jul. 26, 2002, and entitled "ELECTRONIC PAYMENTS
USING MULTIPLE UNIQUE PAYEE IDENTIFIERS", the contents of which are
incorporated by reference herein in their entirety.
FIELD OF THE INVENTION
[0002] The present invention relates to electronic commerce and
more particularly to processing information associated with payees
of an electronic commerce service provider.
BACKGROUND OF THE INVENTION
[0003] Today a myriad of electronic commerce services exist. One
popular electronic service is the service of making payments to
payees on behalf of payors. This service is often called an on-line
payment service, though neither the payment request nor the
payments themselves actually have to be made on-line. Provision of
an on-line payment service includes a payor (customer of a payment
service provider) directing the payment service provider, typically
on-line, though it could be via telephone or another form of
electronic communications, to make a payment on behalf of the payor
to a payee (which may or may not be a customer of the payment
service provider). These payments are often bill payments, though
other types of payments are also common, such as person-to-person
payments and payments for goods or services purchased via the
Internet or other computing networks. Upon receipt of a payment
request, the service provider makes payment to the payee on behalf
of the payor. The assignee of the present application, CheckFree
Services Corporation, is a pioneer in providing on-line payment
services.
[0004] FIG. 1 depicts operations of a typical prior art on-line
payment service. A payor 100 transmits a payment request to a
payment service provider 105. The payment service provider 105
could be CheckFree or any other payment service provider. The
payment service provider 105 receives the payment request,
processes the request to determine a form of payment, and then pays
payee 110 based upon the received payment request and determined
form of payment. As shown, the determined form of payment can be
check, draft or electronic funds transfer.
[0005] In making payments on behalf of payors, a payment service
provider can make payments to a payee (that is, deliver funds) by
one of several methods. Payment can be made by check drawn on an
account associated with the payment service provider, can be made
by a draft drawn on an account associated with the payor, and can
be made electronically, as will be discussed further below.
[0006] As will be understood by one skilled in the art, electronic
payments are more cost effective for both a payment service
provider and payee than payments made by check or draft (paper
payments). Paper payments have inherent disadvantages over
electronic payments. Processing costs (including generation and
handling) are higher for paper payments than electronic payments.
Also, paper payments take longer to complete than electronic
payments. Another disadvantage with paper payments is that such
payments are not easily reversible, while electronic payments
(based upon agreement with a payee) are. As a result of these
disadvantages, it is preferable for payments to be made
electronically.
[0007] For payment made by check or draft, remittance information
(such as payor name, account number with the payee, etc.) is
typically delivered to the payee along with the check or draft. For
electronic payments, remittance information is typically delivered
electronically. It should be noted that electronic remittance
information can be part of an electronic payment, or a separate
transmission.
[0008] An electronic payment is made by electronic funds transfer
directly to a payee's deposit account from an account associated
with a payment service provider. Typically, electronic payments are
made to only large, sophisticated commercial payees, though other
types of payees could certainly receive electronic payments. In one
form of electronic funds transfer, CheckFree utilizes the Federal
Reserve's Automated Clearing House Network (ACH). For payments made
via the ACH Network, the payee provides CheckFree with information
identifying the payee's deposit account maintained at a financial
institution. CheckFree transfers funds to the payee's financial
institution via the ACH Network, which in turn credits those funds
to the payee's deposit account. CheckFree also transmits remittance
information via the ACH Network to the payee's financial
institution, which in turn delivers that remittance information to
the payee. While fees associated with using the ACH Network are
low, CheckFree's use of this payment channel is limited to those
payees whose financial institutions offer remittance advice
delivery service and who utilize their financial institutions'
remittance advice delivery service. One drawback to the use of the
ACH Network is that there is no available listing of all payees who
are accessible via the ACH Network. Thus, the only payments that
can be made to a payee by a payment service provider via the ACH
Network are payments to those payees who have provided a payment
service provider with deposit account identifying information.
[0009] For some electronic payments, CheckFree has utilized
networks maintained by credit card companies, such as MasterCard's
RPS service, and VISA's E-Pay service. In such payments, funds
and/or remittance information move to a payee via a credit card
company's network. This service has been attractive to many payees
whose financial institutions do not offer a remittance delivery
service. While fees charged by credit card companies for use of
their networks are slightly greater than the fees charged by the
Federal Reserve System, an advantage to such systems is that credit
card companies routinely publish directories of all payees as well
as the data required to send payments to those payees through the
credit card networks.
[0010] There still remain payees who are not associated with
financial institutions which offer remittance advice delivery
service, not associated with any credit card company network, or
simply choose not to utilize either of these services. In response,
CheckFree developed its proprietary DIRECT SEND system in which
CheckFree utilizes the ACH to send funds to the payee, but
independently sends an electronic remittance data file to the
payee. This innovation dramatically increased the number of payees
receiving electronic payment from CheckFree.
[0011] The combination of electronic payments via the ACH Network,
via a credit card network, and via the DIRECT SEND system account
for the majority of payments made by CheckFree on behalf of payors.
The remaining payments are typically made by either check or draft,
a determination of which can be based upon risk processing
methods.
[0012] Paper payments can be divided into two categories: payments
to businesses without electronic remittance capabilities, and
payments to individuals. There are varied reasons why these payees
do not receive electronic payments, including, as discussed above,
no relationship with financial institutions which offer remittance
advice delivery service, no relationship with a credit card payment
network such as MasterCard's RPS network or VISA's E-Pay network,
as well as a low volume of received payments from CheckFree, making
DIRECT SEND somewhat cost prohibitive, especially for individual
payees. Accordingly, a need exists to overcome these barriers to
increasing the number of payments made electronically to payees by
payment service providers.
[0013] FIG. 2 depicts a typical payment processing system 200
maintained by a payment service provider. The depicted payment
service provider system 200 could be associated with any payment
service provider. System 200 includes a server 202, an electronic
payee database 212, a rules database 210, and a memory 230. It will
be understood that other components could be, and typically are,
included in such a system 200, such as communications interfaces
and other databases, though these components are not depicted in
FIG. 2. It will also be understood that the memory 230 could store
one or more of the various databases, as well as programming which
drives the operation of the server 202, as well as other data
processed by the server 202 and generated by the server 202.
[0014] As shown, server 202 is configured to receive payment
requests 201, which each include at least a payment amount and
information identifying a payee. This identifying information could
be merely a payee's name, or could include further identifying
information such as payee address, phone number, or payor's account
number with the payee. If only a payee's name is supplied by the
payor, it will be understood by those skilled in the art that the
payor has previously supplied additional payee identifying
information to the payment service provider. This information would
be stored in memory 230.
[0015] Information identifying payees which can be paid
electronically is stored in the electronic payee database 212.
These payees have supplied deposit account information to the
payment service provider such that the payment service provider can
make electronic payments to these payees. For non-electronic
payees, who currently receive paper payments, the process to become
an electronic payee includes multiple steps, including supplying
deposit account information as well as criteria for delivery of
remittance information. This can be a time consuming endeavor that
many payees have chosen not to participate in. According, a need
exists for an enrollment technique to become an electronic payee
which overcomes this barrier to increasing the number of electronic
payees.
[0016] Upon receiving a payment request 201, the payment service
provider's server 202, among other processing, determines if the
indicated payee is included in the electronic payee database 212.
That is, the service provider determines if payment to that payee
can be made electronically. The process for determining if the
payee is included in the electronic payee database 212 is driven by
rules stored in rules database 210. The rules dictate combinations
of payor and/or payee identifying information to use in determining
if any given payee is included in the electronic payee database
212.
[0017] Large payees typically have multiple remittance centers. A
remittance center is a location to which payments and remittance
information from a payor to a payee are delivered. That is, for a
large payee, a first payor may be required to remit payment to a
first remittance center, while a second payor, perhaps
geographically distant from the first payor, may be required to
remit payment to a second remittance center. As shown in FIG. 3,
the electronic payee database 212 includes information identifying
multiple payees, i.e., payees 1-3. The stored information includes
payee name 301 and information identifying one or more remittance
centers 305. As shown payee one is associated with three remittance
centers. Payee two is associated with a single remittance center
and payee three is associated with two remittance centers. It
should be understood that stored remittance center information
identifies deposit accounts to which payment should be credited as
well as locations, electronic or physical, to which remittance
information should be delivered.
[0018] For a payee having multiple remittance centers, the payment
service provider must determine the proper remittance center for a
particular payor requesting that payment be made to the payee on
his or her behalf. Rules stored in the rules database 210 are not
only used to determine if a payee is included in the electronic
payee database 212, but to determine the proper remittance center
to which payments and/or remittance advice should be directed if an
electronic payee has multiple remittance centers. These rules can
be tailored for specific payees, based upon a specific payee's
business rules.
[0019] In one implementation utilized by CheckFree, the rules are
used to identify a proper remittance center based upon the payor's
zip code. Thus, in its most simplistic form, a proper remittance
center is selected based upon the zip code in which the payor
resides. It should be noted that geographic location is not the
only criteria available for determining a proper remittance center
to which a payor should remit payment.
[0020] The rules database 210 can also store rules to identify
electronic payees and/or identify proper remittance centers based
upon unique payee name variations, payee account number structures,
as well as payee account number ranges. Thus, for example, based
upon a payee name supplied by a payor, a proper remittance center
could be selected. Thus, a single company could be doing business
under various names. Also, based upon the payor's account number
with the payee a proper remittance center could be selected.
[0021] While the use of rules has been successfully utilized by
payment service providers in identifying electronic payees and/or
determining proper remittance centers, deficiencies have arisen in
the use of rules. For example, certain payees do not have
remittance centers based upon payor zip codes. That is, two payors
residing in the same zip code may be associated with different
remittance centers for the same payee. Also, often two or more
electronic payees are physically located in the same zip code. And,
many payees do not have, for example, standardized name variations
which can be used to identify electronic payees and/or remittance
centers or standardized payee account number structure or ranges
which can be used to identify remittance centers. Accordingly, a
need exists for a technique to identify information associated with
electronic payees and/or proper remittance centers for which
standardized rules cannot be utilized to do so.
OBJECTS OF THE INVENTION
[0022] It is an object of the present invention to provide a
technique to increase the number of payees receiving electronic
payments from payment service providers.
[0023] It is also an object of the present invention to provide a
technique to simplify the enrollment process to receive electronic
payments.
[0024] It is another object of the present invention to provide a
technique to identify payees capable of receiving electronic
payments.
[0025] The above-stated objects, as well as other objects,
features, and advantages, of the present invention will become
readily apparent from the following detailed description which is
to be read in conjunction with the appended drawings.
SUMMARY OF THE INVENTION
[0026] In accordance with the present invention, a method and a
system for accessing a database identifying electronic payees are
provided. An electronic payee is any individual, business, or other
organization that has provided an entity that makes payment to that
payee information enabling that entity to make an electronic
payment to the payee. In electronic payment funds are credited to a
payee without the need for paper instructions. An electronic
payment could be made via the Federal Reserve Automated
Clearinghouse Network, via another financial institution network,
or a remittance network such as a credit card network. Payments
made to an electronic payee can be any type of payment, including,
but not limited to, payment of a bill issued by a payee, a
point-of-sale payment for goods or services purchased via a network
interface, and a person-to-person payment. A bill can include a
paper bill as well as an electronic bill delivered via a
network.
[0027] The system includes a communications interface, a processor,
and a database identifying electronic payees. The communications
interface is configured to receive, via one or more networks,
information associated with electronic commerce, as will be
described below. The one or more networks can include, but is not
limited to, the Internet, a local area network, a wide area
network, and the public switched telephone network, as well as any
other network capable of transmitting information. The processor
could be any type of processor capable of functioning to implement
the method as described herein, including, but not limited to, a
processor as found in a typical personal computer, main-frame
computer, server-type computer, or any other type computing device.
The database is a collection of information associated with
electronic payees. The database could also include other
information beyond that associated with electronic payees, such as,
for instance, information associated with payees that are not
electronic payees.
[0028] First information identifying a payee is received. The
information could be received from a payor or from an entity
representing the payor, such as a Web portal, financial
institution, or other entity. The payor could be an individual, a
business, or organization. A payor is an entity that makes payments
to a payee. A payee is an entity receiving payment. The information
identifying a payee could include any of, any combination of, or
all of, a payee name, address, zip code, and telephone number, in
addition to other payee identifying information. The information is
preferably received by a payment service provider, though it could
be received by another entity practicing the present invention. It
should be noted that the information identifying the payee could be
received as part of a payment request to pay the payee on behalf of
the payor, or received otherwise, such as in a request to add the
payee to a list of payees.
[0029] The received first information is processed to identify a
unique payee identifier associated with the payee. No other payee
is associated with this payee identifier. The unique payee
identifier is assigned to the payee only after the payee responds
to an invitation to receive electronic payments. The invitation is
associated with a paper payment made to the payee. The paper
payment could be a check or a draft. The invitation could be a
printed invitation delivered with the paper payment, or could be an
electronic invitation such as an e-mail message. In any event, the
paper payment triggers the extension of the invitation to receive
electronic payments
[0030] Information associated with the payee stored in the database
of electronic payees is accessed based upon the identified unique
payee identifier. That is, the unique payee identifier is used to
locate information associated with the payee contained in the
electronic payee database. The accessed information associated with
the payee could be any information associated with the payee,
including information necessary to make an electronic payment to
the payee.
[0031] According to one aspect of the method and system of
accessing a database identifying electronic payees, the payee is a
first payee. Second information identifying a second payee is
received. The second payee is not associated with a unique payee
identifier. That is, the second payee has not requested to receive
electronic payments. Information associated with the second payee
stored in the electronic payee database is accessed based upon the
received identifying information. Thus, the database is accessed
two ways, by a unique payee identifier, and by received
payee-identifying information.
[0032] According to a further aspect of this method and system, the
first information is publicly available information identifying the
first payee, and the second information is publicly available
information identifying the second payee. Thus, publicly available
information is utilized to identify a unique payee identifier,
which then is utilized to access the database. Preferably, the
unique payee identifier is not known to the public. Publicly
available information is also utilized to directly access the
database without the use of a unique payee identifier.
[0033] In another aspect of the method and system for accessing a
database identifying electronic payees the unique payee identifier
identifies a demand deposit account belonging to the payee to which
electronic payments to the payee should be directed. Thus, the
unique payee identifier is stored in association with information
identifying a demand deposit account in the database.
[0034] According to a still further aspect of this method and
system, the unique payee identifier identifies the demand deposit
account as well as a remittance location to which remittance
information should be directed. Remittance information, also known
as remittance advice, is information associated with a payment,
such as a payment amount, information identifying a payor, and
information indicating apportionment of a total payment amount from
a payor across different line items or sub-accounts. However,
remittance information can include other information. The
remittance location could be an electronic location or a physical
location. The electronic location could be different than the
payee's demand deposit account. Thus, electronic payments could be
directed to one location, while electronic remittance information
associated with those payments could be directed another location.
Also, payments could be electronically directed to one location,
while remittance information associated with those payments could
be delivered in hard copy to a physical location, which could be a
fax machine, physical mail box, or other type of physical
location.
[0035] In an especially beneficial aspect of this method and system
the invitation is an invitation to receive electronic payments from
the payor. Also, the unique payee identifier identifies an
association between the payee and only the payor. The unique payee
identifier, according to this aspect, does not identify an
association between any other payor and this payee. The unique
payee identifier is only utilized in relation to processing which
is associated with both this payor and this payee.
[0036] Also in accordance with the present invention, a method and
a system for making a payment to a payee on behalf of a payor are
provided. A payee as well as a payor could be any individual,
business, or other organization. The payment can be any type of
payment, including, but not limited to, payment of a bill issued by
a payee, a point-of-sale payment for goods or services purchased
via a network interface, and a person-to-person payment. A bill can
include a paper bill physically delivered to a payor, as well as an
electronic bill delivered to a payor via a network.
[0037] The system includes a communications interface and a
processor. The communications interface is configured to receive,
via one or more networks, information associated with electronic
commerce, as will be described below. The one or more networks can
include, but is not limited to, the Internet, a local area network,
a wide area network, and the public switch telephone network, as
well as any other network capable of transmitting information. The
processor could be any type of processor capable of functioning to
implement the method as described herein, including, but not
limited to, a processor as found in a typical personal computer,
main-frame computer, server-type computer, or any other type
computing device. According to certain aspects of this system, the
system also includes a database which stores information associated
with electronic payees. As described above, an electronic payee is
any individual, business, or other organization that has provided
an entity that makes payment to that payee information enabling the
paying entity to make electronic payments to the payee. The
database could be stored in any type memory, including, but not
limited to, hard disk, floppy disk, and optical disk.
[0038] A payment request to make a payment to a payee on behalf of
payor is received. The payment request could be received directly
from a payor, or from an entity acting on behalf of the payor,
including the payee. The payment request is an instruction
directing the entity receiving the payment request to make a
payment to the payee for the payor. Thus, in accordance with this
method and system, a payor does not deliver funds, negotiable
instruments, or other payment instruments directly pay a payee.
Rather, a payment service provider completes funds delivery to the
payee on behalf of the payor.
[0039] The received payment request is processed to identify a
unique payee identifier associated with the payee. As discussed
above, no other payee is assigned this same identifier. Also as
above, this unique payee identifier has previously been assigned to
the payee only after the payee requests to receive electronic
payments responsive to an invitation to receive electronic payments
associated with a paper payment. An electronic payment is directed
to the payee based upon the identified unique payee identifier.
That is, payment is made to the payee on behalf of the payor only
after the unique payee identifier is identified. Further, the
unique payee identifier is used in processing which results in
delivery of funds to the payee.
[0040] According to one aspect of the method and system for making
a payment to a payee on behalf of a payor the unique payee
identifier identifies a demand deposit account belonging to the
payee to which electronic payments to the payee should be
directed.
[0041] According to a still further aspect of this method and
system, the unique payee identifier identifies the demand deposit
account as well as a remittance location to which remittance
information should be directed. Also, the remittance location could
be an electronic location or a physical location. The electronic
location could be different than the payee's demand deposit
account. Thus, as discussed above, electronic payments could be
directed to one location, while remittance information associated
with those payments could be directed another location. Also,
payments could be electronically directed to one location, while
remittance information associated with those payments could be
delivered in hard copy to a physical location.
[0042] According to an especially beneficial aspect of this method
and system, the unique payee identifier is not based upon publicly
available information identifying the payee. That is, the unique
payee identifier is not generated or otherwise produced utilizing
information about the payee known to the public.
[0043] In another aspect of the method and system for making a
payment to a payee on behalf of a payor the unique payee identifier
is stored in a database of payees capable of receiving electronic
payments. Such a database is described above. Information necessary
to direct the electronic payment to the payee is retrieved from the
database based upon the identified unique payee identifier. This
necessary information could include information identifying a
demand deposit account belonging to the payee, but it could include
other or additional information, such as information identifying a
remittance network.
[0044] According to another aspect of this method and system, the
payment to the payee is a first payment is directed to a first
demand deposit account belonging to the payee. The invitation is an
invitation to receive electronic payments from the first payor.
Also according to this aspect, another payment request is received
from another payor. This other payment request also requests that a
payment be made to the payee, but on behalf of this other, second,
payor. Information associated with the second payor is accessed to
identify a second unique payee identifier associated with the
payee. This second unique payee identifier is assigned to the payee
subsequent to receiving a request from the payee to receive
electronic payments from the second payor. Thus, the second unique
payee identifier is stored in association with information
associated with the second payor. Based upon the second unique
payee identifier a second electronic payment is directed to a
second demand deposit account belonging to the payee.
[0045] The second unique payee identifier is either the same as or
different than the first unique payee identifier. If the first and
second unique payee identifiers are the same, the first and second
demand deposit accounts are the same. If the first and second
unique payee identifiers are different, the first and second demand
deposit accounts are different demand deposit accounts. Thus, the
payee can identify a single demand deposit account to which
payments made on behalf of multiple payors will be directed. Or,
the payee can identify multiple demand deposit accounts, with
payments made on behalf of one payor directed to a first demand
deposit account, and payments made on behalf of another payor
directed to a second demand deposit account. In such a case, a
unique payee identifier identifies not only the payee, but also a
demand deposit account belonging to the payee.
[0046] In a further aspect of this method and system, remittance
advice associated with the first payment is directed to a first
remittance location, while remittance advice associated with the
second payment is directed to a second remittance location. The
first remittance location could be an electronic location or a
physical location. Likewise, the second remittance location could
be an electronic location or a physical location. If the first and
second unique payee identifiers are the same, the first and second
remittance locations are the same. If the first and second unique
payee identifiers are different, the first and second remittance
locations are different remittance locations. Thus, similar to
demand deposit accounts, remittance advice is directed based upon a
unique payee identifier.
[0047] According to yet another aspect of the method and system for
making a payment to a payee on behalf of a payor the payment
request is a first payment request, the payee is a first payee, and
the electronic payment is a first electronic payment. A second
payment request is received from the payor. The second payment
request requests that a payment be made to another, second, payee.
The second payment request is processed to identify a unique payee
identifier associated with the second payee. In this aspect, the
second payee is not associated with a unique payee identifier.
[0048] Information necessary to direct a second electronic payment
to the second payee is retrieved from an electronic payee database
based upon publicly available information identifying the second
payee. The second electronic payment is directed to the second
payee based upon this retrieved information. A payee does not have
to be associated with a unique payee identifier to receive
electronic payments in accordance with this aspect of the method
and system for making payment. Thus, a payee does not have to
respond to an invitation associated with a paper payment to receive
electronic payments.
[0049] In still another aspect of this method and system a notice
indicating that the electronic payment has been directed is
transmitted to the payee. This notice includes either remittance
information associated with the payment, or a notice that
remittance information associated with the payment is
available.
[0050] According to a further aspect of this method and system, the
notice includes a hyperlink to view the remittance information.
Thus, the payee must actively request remittance information in
this further aspect.
[0051] In still another aspect of this method and system,
processing the received payment request to identify the unique
payee identifier includes accessing information associated with the
payor and retrieving the unique payee identifier from the
information associated with the payor. Thus, the payee's unique
identifier is stored with information associate with the payor.
[0052] According to yet another aspect of the method and system for
making a payment to a payee on behalf of a payor the invitation is
an invitation to receive electronic payments from the payor and the
unique payee identifier identifies an association between the payee
and only the payor. Thus, the unique payee identifier does not
identify an association between any other payor and the payee,
according to this aspect, as discussed above.
[0053] Also in accordance with the present invention, a database
for storing information identifying payees capable of receiving
electronic payments is provided. The database includes first data
associated with a payee capable of receiving electronic payments.
This first data could include, but is not limited to, payee
identifying information, information identifying a demand deposit
account belonging to the payee, a remittance location associated
with the payee, or a remittance network.
[0054] The database also includes second data stored in association
with the first data. Thus, the first and second data are linked in
the database. The second data includes a unique payee identifier
which identifies the payee. This unique payee identifier is
assigned to the payee only after receipt of a request from the
payee to receive electronic payments from a payor. This request to
receive electronic payments is responsive to an invitation to
receive electronic payments. The invitation is associated with a
paper payment to the payee.
[0055] In one aspect of the database the payee is a first payee.
The database also includes third data associated with a second
payee capable of receiving electronic payment. This second payee is
not associated with a unique payee identifier. Thus, the database
stores information associated with electronic payees that have been
assigned unique payee identifiers and information associated with
electronic payees that have not been assigned unique payee
identifiers.
BRIEF DESCRIPTION OF THE DRAWINGS
[0056] In order to facilitate a fuller understanding of the present
invention, reference is now made to the appended drawings. These
drawings should not be construed as limiting the present invention,
but are intended to be exemplary only.
[0057] FIG. 1 is a simplified depiction of the processing of a
prior art on-line payment service.
[0058] FIG. 2 depicts a prior art on-line payment service computing
system.
[0059] FIG. 3 is a simplified depiction of a prior art electronic
payee database.
[0060] FIG. 4 depicts a check having an advertisement for receipt
of electronic payments in accordance with the present
invention.
[0061] FIG. 5 is a simplified depiction of a payment service
provider in communication with first and second payors and a
payee.
[0062] FIG. 6 is a simplified depiction of an initial log in screen
in accordance with the present invention.
[0063] FIG. 7 is a simplified depiction of an identity screen in
accordance with the present invention.
[0064] FIG. 8 is a simplified depiction of an electronic payee
database in accordance wit the present invention.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENT(S)
[0065] payment service provider has a built-in communication
channel with any payee receiving payment via check or draft, the
check or draft itself. Thus, the check or draft is the most
effective place to advertise availability of electronic payments
for those payees receiving paper payments. An example of a check
400 is shown in FIG. 4. To advertise this availability, an insert
could be included in an envelope which includes the check or draft
advertising the possibility of receiving electronic payments.
Secondly a message itself could be printed on a check or draft.
Inserting a flyer into the envelope with a check or draft has the
advantage of being able to provide a more descriptive compelling
message. Printing an advertisement on a check or draft has the
advantage of incurring no increase in stock cost and no increase in
insertion time. No matter the form of advertisement, a payee
receiving paper payment is notified of the availability of
electronic payments.
[0066] In accordance with the present invention and as shown in
FIG. 5, payor 1 directs a payment service provider 505 to make a
payment to payee 1 on the payor's behalf by way of first payment
request 502a transmitted to a server 511. As will be discussed in
detail below, the payment service provider 505 determines if payee
1 can receive electronic payments. If not, payment will be made by
either check or draft 503. The check or draft 503 is generated by
the payment service provider 505. Information associated with the
payment request and payment is stored in memory 516, which also
stores other information. The stored information includes
information identifying payee 1 received from payor 1.
[0067] As shown in FIG. 4, a check 400 (or draft) includes an
advertisement to entice payees to register to receive payments
electronically. The advertisement of FIG. 4 includes a payment
service provider 505 website identifier and an access code. Of
course, as described above, the advertisement could be delivered to
the payee in an insert with check 400 (or draft), as well as
separate letter. If the payees fax number or e-mail address can be
discovered, the advertisement could be delivered via either of
these routes.
[0068] The access code is utilized for fraud prevention. It is most
preferable to generate a random sequence of characters and numbers
that can be used as this unique access code. Use of this code
ensures that someone cannot log onto a service provider website and
redirect another payee's payments into their own deposit account
without having received a paper payment from the service provider.
In addition to the access code, entry of one or more of multiple
fields from the check 400 (or draft), that would only be known by
the person receiving the check 400 (or draft), is required once the
payee logs onto the payment service provider website.
[0069] After accessing the payment service provider website,
advertised on or included as an insert with the check (or draft)
400, to initiate an on-line, real-time, registration session 507,
payee 1 is prompted to enter preferably three data elements, check
number, payment amount, and access code. The server 511 retrieves
the stored information associated with the payment and determines
if the correct information has been entered. Ideally, in order to
build the utmost confidence in the minds of payees, an image of the
check that looks exactly like the check in the hands of a payee
should be displayed upon a determination that the correct
information has in fact been entered. Of course, the required data
elements could be data which is related to the invitation, not data
that is related to the payment itself.
[0070] Payee 1, upon providing correct information, will be
required to register to receive electronic payments. Registration,
in which a secure user name and password will be issued, also
allows payee 1 to view details of all received electronic payments
either via a web interface or via email. Payee 1 will also be given
the opportunity to download this payment detail (remittance)
information, to be discussed further below. Payee 1 must provide
information to the payment service provider 505 during
registration. This information will be stored in an electronic
payee database 515. The information includes a preferred payee
name, preferred payee address, payee telephone number, payees bank
name, payees bank routing transit number, payees bank deposit
account number, payees primary e-mail address, any other e-mail
addresses, a log-in name, and a password. Once this information has
been populated into the electronic payee database 515, and stored
in memory 516, discussed further below, payee 1 can receive
payments electronically from payor 1.
[0071] During an on-line registration process, the information
stored in memory 516 during the payment request processing
described above is retrieved. This retrieved information is used to
pre-populate the on-line registration form completed by payee 1. In
particular, the payee name received from payor 1 is inserted into
the on-line form, the payee address (remittance center) received
from payor 1 is inserted into the on-line form, along with any
other payee identifying information received from payor 1. Also,
the payor's account number with payee 1, if received, is inserted
into the on-line form. Thus, payee 1 does not have to supply any of
this pre-populated information received from payor 1. It should be
noted that payee 1 can modify any of the pre-populated information,
in addition to supplying information not received from payor 1.
[0072] In addition to the payor-identifying information received
from payor 1 and/or payee 1 that is populated into the electronic
payee database 515, other information generated by the payment
service provider 505 is also populated into the electronic payee
database 515. This information includes an alternate name for payee
1 which is only known by the payment service provider 505. This
alternate name is unique to payee 1. Use of the alternate payee
name will be discussed further below.
[0073] Though a simplified on-line and real-time registration is
discussed above, a payee could also register in a non-real-time
fashion. This could include registration by letter, fax, or email.
In non-real-time registration, a payee supplies the same
information to the payment service provider as required in on-line
registration. The payment service provider processes the received
information to complete the registration process.
[0074] It should be noted that during the registration process,
whether on-line or not, the payee must accept certain terms and
conditions. This preferably includes a reversibility condition. If
the payment service provider 505 does not receive funds associated
with a payment to payee 1 from payor 1 subsequent to the payment
service provider 505 electronically crediting an account belonging
to payee 1, payee 1 must agree that the credited funds will be
recaptured by the payment service provider 505 from payee 1. This
recapture could be by a net settlement procedure or an electronic
debit, among ways to recapture funds.
[0075] The alternate payee name, introduced above and also known as
a unique payee identifier, is stored by the payment service
provider 505 in at least two locations. First, the alternate payee
name is stored in the electronic payee database 515 in association
with other information identifying and associated with payee 1.
Secondly, the alternate payee name is stored in memory 516 along
with other information associated with payor 1.
[0076] As shown in FIG. 5, a second payment request 502b to pay
payee 1 is received from payor 1. Introduced above, upon receipt of
a payment request, in this example second payment request 502b, the
payment service provider 505 determines if the indicated payee is
an electronic payee. To accomplish this, server 511 accesses memory
516 and determines if a unique payee identifier which identifies
payee 1 is stored in association with information associated with
payor 1. If so, and as is the case in this example of a second
payment to a now-registered payee, the unique identifier is used to
access the electronic payee database 515 to retrieve information
utilized to make an electronic payment 560 to payee 1.
[0077] It should be noted that if memory 516 did not contain a
unique payee identifier for payee 1 (payee 1 had never registered
for electronic payment via a check or draft invitation), the
electronic payee database 515 is preferably accessed in an attempt
to locate payee 1 based upon rules stored in a rules database (not
shown in FIG. 5), as discussed above. That is, at this point, the
payment service provider 505 does not know if payee 1 has
previously supplied deposit account information to receive
electronic payments in a conventional fashion (not based upon a
check draft invitation). If payee 1 cannot be located in the
electronic payee database 515 based upon both a unique payee
identifier and rules, payment would then go as check or draft, with
an invitation. It should be noted that information identifying a
payee stored in the electronic payee database 515 which includes a
unique payee identifier is never processed utilizing a rules
database. Thus, the only way an entry in the electronic payee
database 515 which includes a unique payee identifier is accessed
is by way of the unique payee identifier first retrieved from
memory 516 stored in association with a payor making payment to the
payee.
[0078] It will be recognized that a payee, upon receiving multiple
advertisements to entice the payee to register to receive payments
electronically, instead of registering as described above, may
instead contact the payment service provider 505 directly in order
to receive electronic payments from all current and future payors.
The payment service provider 505 may then choose to extend the use
of the same unique payee identifier to all payors currently sending
payments to this payee. The payment service provider could identify
current and future payments from payors to this payee and make use
of the unique identifier in all such payments. Alternatively, the
payee could choose to be enrolled as an electronic merchant (payee)
by way of conventional processing. In such a case, the payee would
not be associated with a unique payee identifier. Rather,
information associated with the payee would be added to the
electronic payee database and the payee would be located in the
electronic payee database 515 using conventional techniques, not
the inventive unique payee identifier of the present invention.
[0079] In this example, payment is made to payee 1 electronically.
Upon making an electronic payment to payee 1, the server 511
generates an email message 565 to payee 1 informing payee 1 that an
electronic payment has been made. Based upon this email, or at any
time, payee 1 accesses the payment service provider web site to
retrieve remittance information 570. This is known as a `pull`
scenario, in that payee 1 must request remittance information. It
should be noted that remittance information could also be
automatically transmitted to payee 1. This is known as a `push`
scenario. Thus, for example, the e-mail message could include the
remittance information. Also, a batch transmission of remittance
information could periodically be transmitted to payee 1. This
transmission could be sent via a computing network or via fax. It
should also be noted that payee 1 could be notified of a received
payment by a method other than email.
[0080] Whenever the payment service provider web site is accessed,
an initial log in screen is presented. This screen 600, as shown in
FIG. 6, includes a link 601 for previously unregistered payees to
access the payment service provider 505 web site to register, and a
link 605 for registered payees to access the payment service
provider 505 website to add another payor, to receive remittance
information, and to make any changes to stored information
associated with the payee. For unregistered payees, activation of
link 601 brings up another screen (not shown) in which the unique
access code printed on a check or draft is entered. For registered
payees, activation of link 605 brings up an identity screen, shown
in FIG. 7. Identity screen 700 includes field(s) 710 to enter the
unique user name and password assigned during the registration
process, discussed above. Upon entry of this information, payee 1
can select a link 715 to remittance information for electronic
payments made to payee 1, and link 720 to an add payor screen (not
shown), in which the payee can add another payor. Adding additional
payors will be discussed below.
[0081] The present invention supports payments to payees having
multiple remittance centers by the use of multiple unique payee
identifiers. As shown in FIG. 5, payor 2 transmits a payment
request 525 to pay payee 1. In this example, payor 2 has a
different remittance center with payee 1 than does payor 1. Upon
receipt of payment request 525, the server 511 performs the
above-described processing to determine if a unique payee
identifier for payee 1 is stored in memory 516 in association with
information associated with payor 2. In this example, no such
identifier is stored. Next, based upon rules, the server 511
determines if payee 1 is otherwise included in the electronic payee
database 515 by way of conventional registration (not check or
draft invitation). In this example, payee 1 is not otherwise
included in the electronic payee database 515. As a result, a paper
payment, with another advertisement and another unique access code,
will be delivered to payee 503.
[0082] Payee 1, to receive electronic payments from payor 2, must
once again access the payment service provider's web site 507. Upon
entering the web site, payee 1 selects link 605 and then enters his
or her unique user name and password. Payee 1 then selects link 720
to add payor 2. Upon selection of the add payee link 720, payee 1
enters this second unique access code. Information associated with
payment request 525 is then retrieved from memory 516, as well as
information identifying the deposit account belonging to payee 1,
and displayed as a pre-populated registration form. At this point,
payee 1 makes any necessary changes and submits the information to
the payment service provider 505. Because the pre-populated
information, in this example, indicates a different remittance
center, received from payor 2, a second unique identifier
associated with payee 1 is assigned to payee 1. This second unique
identifier is stored in both memory 516 and the electronic payee
database 515, as will be understood from the discussion above. This
second unique identifier is linked to information identifying the
second remittance center. It should be stressed that a single
unique identifier, while associated with only a single remittance
center, can be associated with multiple payors required to remit
payment to that same remittance center.
[0083] FIG. 8 is a simplified depiction of electronic payee
database 515, as shown, database 515 includes entries for payees 1
through N. Information included in database 515 includes, among
other information, payee identifying information 805, any unique
payee identifiers 810, and remittance center information 815. As
shown, payee 1 is associated with two remittance centers and two
unique identifiers. Payee 2 is associated with a single remittance
center and a single unique identifier. Payee 3 is associated with a
single remittance center and no unique identifier. Payee N is
associated with two remittance centers and no unique identifiers.
Thus, payees 1 and 3 are located in the electronic payee database
515 by way of unique identifiers, while payees 1 and N are located
in the database 515 by conventional techniques, such as rules
driven processing. Thus, the electronic payee database 515 of the
present invention can be accessed two ways to locate a payee, by
unique identifier known only to the payment service provider, and
by publicly available identifying information.
[0084] It will be appreciated that multiple unique access codes for
a single payee can be associated with different deposit accounts
and/or different remittance centers. It will also be appreciated
that if both remittance center and deposit account information are
the same for two payors of a single payee, the same unique access
code would be stored in association with information associated
with each of these payors in memory 516.
[0085] For the `pull` scenario in receiving remittance information
570, once a payee has accessed the payment service provider 505 web
site and identified him or herself and requested remittance
information, a total of the funds deposited on that day as well as
a list of all payors making payment on that day are displayed.
Information associated with each payor is also displayed. This
information can include any or all of the following information:
payor name, payor address, payor account number with the payee, and
payment amount. It will be recognized by one skilled in the art
that other remittance information could also be displayed. A payee
is also given the option to enter a date in the past (preferably up
to 90 days in the past) and review remittance information since
that specified date.
[0086] It is quite likely that some of the payees will be using
accounting software that can import a file into an accounts
receivable system. As a convenience to payees, remittance
information, preferably in the form of a comma-delimited file, can
either be pulled by a payee, or pushed to a payee.
[0087] If the payment service provider 505 cannot obtain funds from
a payor, preferably in multiple attempts, the payee will be
notified that the payment will be reversed. That is, that the
payee's deposit account will be settled accordingly. The payee can
access the payment service provider 505 web site to obtain details
of the situation. For each instance in which funds could not be
obtained from a payor, the payee can view the payor name, payor
address, payor account number with the payee, and payment
amount.
[0088] The present invention is not to be limited in scope by the
specific embodiments described herein. Indeed, various
modifications of the present invention in addition to those
described herein, will be apparent to those of skill in the art
from the foregoing description and accompanying drawings. Thus,
such modifications are intended to fall within the scope of the
appended claims.
* * * * *