U.S. patent application number 12/658278 was filed with the patent office on 2011-08-11 for transaction processing system.
Invention is credited to Benjamin P. Milne.
Application Number | 20110196790 12/658278 |
Document ID | / |
Family ID | 44354462 |
Filed Date | 2011-08-11 |
United States Patent
Application |
20110196790 |
Kind Code |
A1 |
Milne; Benjamin P. |
August 11, 2011 |
Transaction processing system
Abstract
A system for optimizing the transfer of funds from an account
holder to an associate. The system identifies the geographic
location of a first financial institution involved in the
transaction. The system selects from a plurality of financial
institutions a second financial institution which is located near
the first financial institution to be involved in the transaction.
Selecting a second financial institution nearby the first financial
institution facilitates the transaction and reduces the time
transaction funds are unavailable.
Inventors: |
Milne; Benjamin P.; (Newton,
IA) |
Family ID: |
44354462 |
Appl. No.: |
12/658278 |
Filed: |
February 5, 2010 |
Current U.S.
Class: |
705/44 |
Current CPC
Class: |
G06Q 20/40 20130101;
G06Q 20/023 20130101; G06Q 30/0613 20130101; G06Q 20/10 20130101;
G06Q 20/227 20130101; G06Q 20/405 20130101; G06Q 40/00
20130101 |
Class at
Publication: |
705/44 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00; G06Q 20/00 20060101 G06Q020/00 |
Claims
1. A method comprising: (a) providing an account holder account
associated with an account holder; (b) providing an associate
account associated with an associate; (c) transferring a
predetermined amount of account holder funds from the account
holder to the account holder account; (d) crediting the account
holder account an amount associated with the account holder funds;
(e) comingling the account holder funds with other funds to create
a fund pool; (f) depositing portions of the fund pool with a
plurality of financial institutions; (g) requesting a transfer of
payment funds from the account holder to an associate associated
with an associate financial institution; (h) identifying a
predetermined receiver characteristic associated with the receiving
financial institution; (i) selecting from the plurality of
financial institutions a transfer financial institution having a
predetermined transfer characteristic; (j) authorizing a transfer
of at least a portion of the payment funds from the transfer
financial institution to the receiving financial institution; (k)
transferring at least a portion of the payment funds from the
transfer financial institution to the associate financial
institution; (l) debiting the account holder account an amount
associated with the transfer; and (m) crediting the receiver
account an amount associated with the transfer.
2. The method of claim 1, wherein the associate financial
institution is a receiving depository financial institution.
3. The method of claim 2, wherein the transfer financial
institution is an originating depository financial institution.
4. The method of claim 3, further comprising transferring the
payment funds from the originating depository financial institution
to the receiving depository financial institution through a
financial clearinghouse.
5. The method of claim 4, wherein the financial clearinghouse is an
automated clearinghouse.
6. The method of claim 5, wherein the predetermined receiver
characteristic is a geographic location.
7. The method of claim 6, wherein the predetermined transfer
characteristic is a geographic location.
8. The method of claim 5, wherein the predetermined transfer
characteristic is a transfer time;
9. The method of claim 1, further comprising transferring the
payment funds from the transfer financial institution to the
receiving financial institution through a financial
clearinghouse.
10. The method of claim 9, wherein the financial clearinghouse is
an automated clearinghouse.
11. The method of claim 1, further comprising: (a) selecting from
the plurality of financial institutions a supplemental transfer
financial institution having a third predetermined transfer
characteristic; (b) authorizing a supplemental transfer of a
supplemental portion of payment funds from the supplemental
transfer financial institution to the receiving financial
institution; and (c) transferring the supplemental portion of
payment funds from the supplemental transfer financial institution
to the receiving financial institution.
12. A method comprising: (a) receiving account holder funds from an
account holder; (b) comingling the account holder funds with a
third party funds to create a fund pool; (c) dividing the fund pool
into a plurality of fund groups; (d) depositing the fund groups in
a plurality of financial institutions; (e) receiving a transfer
request from the account holder to transfer an amount of the
account holder funds to an associate; (f) identifying a receiving
financial institution associated with the receiver; (g) selecting
from the plurality of financial institutions a transfer financial
institution having a predetermined transfer characteristic relating
to the receiving financial institution; and (h) transferring at
least a portion of the amount of the account holder funds from the
transfer financial institution to the receiving financial
institution.
13. The method of claim 12, wherein the receiving financial
institution is a receiving depository financial institution.
14. The method of claim 13, wherein the transfer financial
institution is an originating depository financial institution.
15. The method of claim 14, further comprising transferring the
payment funds from the originating depository financial institution
to the receiving depository financial institution through a
financial clearinghouse.
16. The method of claim 15, wherein the financial clearinghouse is
an automated clearinghouse.
17. The method of claim 12, wherein said predetermined transfer
characteristic is an estimate of the time involved in processing a
transfer of at least a portion of the amount of the account holder
funds from the transfer financial institution to the receiving
financial institution.
18. A method comprising: (a) receiving account holder funds from an
account holder; (b) depositing first funds into a first transfer
financial institution located at a first location; (c) depositing
second funds into a second transfer financial institution located
at a second location; (d) receiving a transfer request from the
account holder to transfer an amount of the account holder funds to
a receiving financial institution; (e) selecting a transfer
financial institution from the first financial institution and the
second financial institution, based upon proximity to the receiving
financial institution; and (f) transferring at least a portion of
the amount of the account holder funds from the transfer financial
institution to the receiving financial institution.
19. The method of claim 18, wherein the receiving financial
institution is a receiving depository financial institution.
20. The method of claim 19, wherein the transfer financial
institution is an originating depository financial institution
Description
TECHNICAL FIELD
[0001] The disclosed embodiments relate generally to financial
transactions and, in particular, to using financial institution
information to increase the efficiency of financial
transactions.
BACKGROUND
[0002] Conventional financial transactions only support traditional
financial transfers from one financial institution to another. The
use of various systems, including clearinghouse systems to
facilitate the transfer of funds can cause undesirable delays
during which the funds may not be accessible.
SUMMARY
[0003] The present invention includes systems and methods for
modifying the routing of funds from an account holder to an
associate to increase the efficiency of the transaction. An account
holder authorizes the transfer of a predetermined amount of account
holder funds to an associate. The location of a receiving financial
institution associated with the associate is determined and a
transfer financial institution is selected from a plurality of
financial institutions based upon proximity to the receiving
financial institution. Funds are transferred from the transfer
financial institution to the receiving financial institution and
the account holder's account is debited the amount of the transfer.
The transfer financial institution is selected from the plurality
of financial institutions to decrease the time associated with the
transfer of the funds. The features and advantages described in
this summary and the following detailed description are not
all-inclusive. Many additional features and advantages will be
apparent to one of ordinary skill in the art in view of the
drawings, specification and claims presented herein.
BRIEF DESCRIPTION OF THE DRAWINGS
[0004] The present invention will now be described, by way of
example, with reference to the accompanying drawings in which:
[0005] FIG. 1 is a block diagram of the financial institution
architecture in accordance with one embodiment;
[0006] FIG. 2 is a block diagram of the system architecture in
accordance with one embodiment;
[0007] FIG. 3A is a block diagram of a home page of a website used
in accordance with one embodiment;
[0008] FIG. 3B is a block diagram of a registration webpage used in
accordance with one embodiment;
[0009] FIG. 3C is a block diagram of an account information webpage
used in accordance with one embodiment;
[0010] FIG. 4A is a block diagram of a credit card deposit webpage
used in accordance with one embodiment;
[0011] FIG. 4B is a block diagram of a deposit webpage used in
accordance with one embodiment;
[0012] FIG. 5 is a flowchart illustrating depositing funds into the
system used in accordance with one embodiment;
[0013] FIG. 6 is a flowchart illustrating receiving funds into the
system used in accordance with one embodiment;
[0014] FIG. 7A is a block diagram of a transfer funds page of a
website used in accordance with one embodiment; and
[0015] FIG. 7B is a block diagram of a transfer funds error page of
a website used in accordance with one embodiment.
DETAILED DESCRIPTION
[0016] As shown in FIG. 1, a transaction processing system (100) is
provided to allow a manager (102) to optimize the transfer of funds
(104) from an account holder (106) to an associate (108). The
system (100) collects funds (110), (112) and (114) from users
(116), (118) and (120), and deposits the funds (110), (112) and
(114) in a plurality of holding accounts (122), (124) and (126)
located in a plurality of financial institutions (128), (130) and
(132). When a user such as the account holder (106) wishes to
originate a fund transfer, the system (100) dynamically determines
an optimized transfer financial institution (128) or institutions
(128) and (132) to make the transfer. By collecting information
about the transfer and selecting an optimized transfer financial
institution (128) based upon the information, the system (100)
advantageously avoids the delays and other drawbacks of traditional
financial transaction systems.
[0017] FIG. 2 is a block diagram of the architecture of the system
(100) in accordance with one embodiment. As illustrated in FIG. 1,
a server (134) associated with the manager (102) is provided with a
front end server (136), a network interface (138), a central
processing unit (140), a user database (142) a financial
institution database (144) and system software (146). Conventional
features, such as firewalls, load balancers, application servers,
failover servers, site management tools, as well as additional
conventional and known features, are not shown to allow a clearer
illustration of the novel features of the system. The manager (102)
may be a financial institution, or any desired type of individual
or entity.
[0018] When the account holder (106) wishes to use the system
(100), the account holder (106) accesses the manager's website
(148) via a network (150) and provides identifying information
(152) to create a user account (154) (FIGS. 1, 2, 3A). As used
herein, the term "website" means any system providing content and
is not limited to those systems supporting content provided via the
Internet or the http protocol. In general, functions described
herein as being performed on the server side may also be performed
on the client side as appropriate.
[0019] Alternatively, the account holder (106) may provide the
information (152) telephonically, via electronic mail, via
facsimile or by any suitable method of communication (FIGS. 1 and
3A). The account holder (106) uses a client (156) to execute a
browser (158) that connects to the server (136) via the network
(150). The network (150) is typically the Internet, but may also be
any network, including, but not limited to, a LAN, a MAN, a WAN, a
mobile, wired or wireless network, a private network or a virtual
private network. Although only a single client (156) and browser
(158) are shown, it is to be understood that millions of clients
may be supported and can be in communication with the server (134)
at any given time. If desired, multiple servers may be used. The
client (156) may include a variety of different computing devices.
Examples of client devices are personal computers, digital
assistants, personal digital assistants, mobile phones, smart
phones, tablet devices or laptop computers. As will be obvious to
one of ordinary skill in the art, the present invention is not
limited to the foregoing devices.
[0020] The website (148) presents the account holder (106) with an
interface (160) which prompts the account holder (106) to click a
button (162) which causes the server (134) to display a request
page (164) via a secure socket layer (SSL) or similar security
protocol (FIGS. 1, 3A, 3B and 3C). The account holder (106) enters
the user information (152) in the boxes (166) provided and clicks
the submit button (168). The system (100) creates a user account
(170) associated with a username (172) and a password (174). The
user account (170) includes an account balance (176) and account
history (178) that may be displayed on an account webpage (180) in
a manner such as that known in the art. The account holder (106)
transfers funds into the user account (170) by any known means
including, but not limited to, check, credit card, debit card,
other ACH processing or a physically delivered cash deposit. The
account holder (106) may also transfer funds into the account (170)
via another user (116) of the system (100).
[0021] The account holder (106) has multiple options to deposit
funds into the account (170). The account holder (106) or a
third-party may provide an associate financial institution (182)
with routing and account numbers associated with the account (170).
The associate financial institution (182) may be any type of
financial institution. The associate financial institution (182)
may transmit the funds and information regarding the transfer to an
automated clearinghouse (184) that transmits the funds to a holding
account (122) associated with the routing and account numbers. The
system (100) then credits the account (170) with the funds.
[0022] Alternatively, the account holder (106) may add funds
directly to the account (170) by using the client (156) to access a
deposit funds webpage (186) residing on the server (134) (FIGS. 1,
2 and 4A). From the deposit funds webpage (184), the account holder
(106) enters credit or debit card information (188), such as the
credit card number (190), expiration date (192) and CVS number
(194), along with an account number (196) identifying which of
account holder's accounts (170) is to receive the funds. The
account holder (106) clicks the submit button (198) and the funds
are transferred to the system (100).
[0023] Alternatively, the system (100) may be configured to allow
the account holder (106) to deposit the funds directly from an
account associated with a third party financial institution, the
account holder (106) obtains from the system (100) dynamically
generated routing and account numbers (200) for the deposit to
reduce the transfer time associated with each transaction (FIGS. 1,
2 and 4B). The account holder (106) uses the client (156) to access
a deposit funds webpage (202) residing on the server (134). Prior
to the deposit, the account holder enters predetermined information
(204) associated with the deposit on the deposit funds webpage
(202). This information may include the name (206) of the
depositing financial institution, the account number (208) of the
account (170) the account holder wishes to receive the funds, the
routing number (210) and any other information required by the
manager (102). The account holder (106) clicks the submit button
(212) and the deposit funds webpage (202) displays the dynamically
generated routing and account numbers (200).
[0024] The account holder (106) provides the dynamically generated
routing and account numbers (200) to the third-party financial
institution (182) along with transfer instructions, whereafter the
third-party financial institution (182) transmits the funds and
information regarding the transfer to an automated clearinghouse
(184) that transmits the funds to a financial institution (130) and
holding account (124) associated with the routing and account
numbers (200). The system (100) then credits the account (170) with
the funds.
[0025] If the ACH system (184) is used, the associate financial
institution (182) is the ODFI. The account holder (106) forwards
authorization for the transaction to the ODFI via accounts
receivable entry (ARC), point of purchase (POP), prearranged
payments and deposits (PPD), telephone initiated-entry (TEL) or
web-initiated entry (WEB) authorization. The ODFI then forwards the
authorized request to an ACH operator, which passes it on the
receiving depository financial institution (RDFI). In this case,
the RDFI is the financial institution (130) associated with the
holding account (124), which credits the account holder's account
(170) with the funds.
[0026] The system (100) dynamically generates the routing and
account numbers (200) to optimize the fund transfer process. When
the account holder (106) sends (214) the system (100) the
predetermined information (204) by pressing the submit button
(212), the system (100) collects (216) the predetermined
information (204) and uses it to collect (218) additional the
predetermined information (220) (FIGS. 1, 2, 4B and 5). As an
example, the system (100) may use the routing and account numbers
(210) to obtain the geographic location and routing subnet of the
third-party financial institution (182) from the financial
institution database (144) located on the server (134). The system
(100) may collect additional information from cached or "real-time"
third-party providers, such as the ACH (184) system.
[0027] Using the predetermined information (204) and (220), the
system (100) determines (222) the optimal holding account (122),
(124) or (126) to receive the funds. This determination may be
based upon which of the holding accounts (122), (124) or (126) are
insured, which are under the Federal Deposit Insurance Corporation
(FDIC) and/or National Credit Union Administrations (NCUA)
insurance limit and by what amounts, as well as which of the
holding accounts (122), (124) or (126) offer the greatest return on
investment. Once the system (100) dynamically determines (222) the
optimal holding account (122), (124) or (126) to receive the funds,
the system (100) returns (224) the routing and account numbers
(200) associated with that holding account (124) to the account
holder (106) by displaying the routing and account numbers (200) on
the webpage (202). In determining the optimal holding account, the
system (100) may weight all factors equally. Alternatively, the
system (100) may employ algorithms contained within the system
software (146) to determine the optimal holding account to receive
the deposited funds. Preferably the optimal holding account (124)
as determined by the system (100) is located closest to the
third-party financial institution (182) to reduce the transfer time
associated with the deposit and thereby reduce the time during
which the funds are not available.
[0028] The system (100) may also split the funds into a plurality
of holding accounts (122), (124) or (126). Alternatively, the
system (100) may receive the funds in a single holding account
(124), before moving some or all of the funds to additional
accounts (122) and (126) as desired. The system (100) may also use
"real-time" information relating to the holding accounts (122),
(124) or (126), other transactions and the proposed routing to
dynamically select the optimal holding account (124).
[0029] The foregoing process is used to create multiple user
accounts and receive funds from multiple sources. The system (100)
uses these funds to seed multiple holding accounts (122), (124) or
(126) across multiple financial institutions (128), (130) and
(132). The system (100) may also use algorithms within the software
(146) to analyze the flow of funds through the system (100), using
past data to anticipate future needs and deposit new funds
accordingly.
[0030] The system (100) may also transfer funds between holding
accounts (122), (124) or (126) to optimize the return on investment
and to position the system (100) to handle anticipated future
transactions more efficiently. Using information from the system
(100), the manager (102) may open new holding accounts in new
financial institutions or close existing holding accounts in other
financial institutions to take advantage of changing returns on
investment, or to locate accounts within or closer to financial
institutions with increasing transaction activity.
[0031] For transfers between users (116) and (118) having accounts
associated with the system (100), the system (100) may simply make
a bookkeeping entry, crediting and debiting the user accounts,
without having to actually transfer any funds between financial
institutions (128), (130) and (132).
[0032] When the account holder (106) wishes to transfer funds to an
associate (108), the account holder (106) provides the system (100)
with transfer instructions. The account holder (106) may provide
the manager (102) the transfer instructions via the client (156) or
via a third-party device, such as a magnetic strip reader (226),
check reader (228), parking meter (230), RFID reader (232) or any
other third-party device (234). Although the following describes
the account holder (106) providing transfer instructions to the
system (100) via the client (156) across the network (150), it will
be understood by those of ordinary skill in the art, that the
account holder (106) may provide the transfer instructions to the
system (100) via any conventional or known financial transaction
processing device or process.
[0033] When the account holder (106) wishes to transfer funds to an
associate (108), such as a merchant, the account holder (106)
connects via the client (156) to the server (134) via SSL. The
server (134) returns the webpage (148), which the account holder
(106) uses to enter security information, such as the username
(172) and password (174) to access the account holder's account
information (236) stored on the user database (142) located on the
server (134). The account holder (106) selects the transfer funds
webpage (238) by clicking the transfer button (240) on the account
webpage (180).
[0034] The account holder (106) enters fund transfer instructions
(242) on the transfer funds webpage (238) (FIGS. 1, 2 and 7A). The
transfer instructions (242) include predetermined information (244)
such as the amount (246) of the fund transfer and the routing and
account numbers (248) of the transfer account (250) that is to
receive the funds. Additional instructions may include time
information (252) indicating when the transfer is to be executed
and any additional information the manager (102) requires. After
the account holder (106) enters the fund transfer instructions
(242) on the transfer funds webpage (238), the account holder (106)
clicks the submit button (254), which sends (256) the fund transfer
instructions (242) to the server (134) (FIGS. 1, 2, 6 and 7A).
[0035] The system (100) collects (258) the predetermined
information (244) at the server (134) and determines (260) whether
the account holder's account (176) contains sufficient available
funds to execute the fund transfer instructions (242). If the
account holder account (176) does not contain sufficient available
funds to complete the transaction, the system (100) returns (262)
an error message (264) to the account holder (106) in the form of
an transfer error webpage (266), where the account holder is
prompted to send (256) corrected transfer instructions (242) (FIGS.
1, 2, 6, 7A and 7B).
[0036] If the account holder account (176) does contain sufficient
available funds to complete the transaction, the system (100) uses
the collected predetermined information (244) to collect (268)
additional predetermined information (270). As an example, the
system (100) may use the routing number (248) to obtain the
geographic location and routing subnet of a third-party financial
institution (272) associated with the transfer account (250) from
the financial institution database (144) located on the server
(134). The system (100) may collect additional information from
cached or "real-time" third-party providers, such as the ACH
(184).
[0037] Using the predetermined information (244) and (270), the
system (100) determines (274) the optimal holding account (122),
(124) or (126) from which to transfer the funds. This determination
may be based upon the amount of funds in the holding accounts
(122), (124) or (126), which accounts are insured, which are under
the FDIC and/or NCUA insurance limit and by what amounts, as well
as which of the holding accounts (122), (124) or (126) offer the
least return on investment. Once the system (100) dynamically
determines (274) the optimal holding account (122), (124) or (126)
from which to transfer the funds, the system (100) initiates (276)
the transfer of funds to the financial institution (272) and
associated transfer account (250).
[0038] In determining the optimal holding account from which to
transfer the funds, the system (100) may weight all factors
equally. Alternatively, the system (100) may employ algorithms
contained within the system software (146) to determine the optimal
holding account to receive the deposited funds. Preferably the
optimal holding account (122) to transfer the funds, as determined
by the system (100) is located closest to the financial institution
(272) and associated transfer account (250), to reduce the transfer
time associated with the transfer and thereby reduce the time
during which the funds are not available.
[0039] If the ACH system is used, the financial institution (128)
associated with the optimal holding account (122) is the ODFI. The
account holder (106) may initiate the authorization for the
transaction through the system (100) to the ODFI via accounts
receivable entry (ARC), point of purchase (POP), prearranged
payments and deposits (PPD), telephone initiated-entry (TEL) or
web-initiated entry (WEB) authorization. The ODFI then forwards the
authorized request to an ACH operator, which passes it on the
receiving depository financial institution (RDFI). In this case,
the RDFI is the financial institution (272) and associated transfer
account (250), which credits the transfer account (170) with the
funds.
[0040] The system (100) may also split the transfer, transferring
funds from two or more holding accounts (122) and (124), to further
optimize factors associated with the transfer, such as maintaining
individual transfers under the FDIC and/or NCUA insured limit.
Alternatively, the system (100) may transfer funds from one or more
holding accounts (122) and (124) into another holding account (126)
before making the transfer. The system (100) may also use
"real-time" information relating to the holding accounts (122),
(124) or (126), other transactions and the proposed routing of the
transaction, to dynamically select the optimal holding account
(124) from which to transfer the funds.
[0041] Although the invention has been described with respect to a
preferred embodiment thereof, it is to be understood that it is not
to be so limited since changes and modifications can be made
therein which are within the full, intended scope of this invention
as defined by the appended claims.
* * * * *