U.S. patent application number 13/251927 was filed with the patent office on 2012-04-05 for method and system for transferring electronic funds.
Invention is credited to Vladimir Ostrovsky.
Application Number | 20120084201 13/251927 |
Document ID | / |
Family ID | 46332375 |
Filed Date | 2012-04-05 |
United States Patent
Application |
20120084201 |
Kind Code |
A1 |
Ostrovsky; Vladimir |
April 5, 2012 |
Method and System for Transferring Electronic Funds
Abstract
A method and system for transferring electronic funds over the
Internet wherein a sender provides payment information to a
transfer processing system. The sender may choose from a plurality
of types of funds transfer. The transfer processing system sends an
electronic payment message to a recipient indicating the transfer
of funds and a transfer message to a financial institution
providing instructions to debit the sender's account and make those
funds available to the recipient. If the recipient has an account
with a financial institution that is affiliated with the transfer
processing system of the present invention, the funds are credited
to the recipient's account wherein the payment message serves as a
confirmation message. If the recipient does not have such an
account, the recipient may access the transfer processing system to
access the funds made available by the system wherein the payment
message serves as a payment availability message.
Inventors: |
Ostrovsky; Vladimir;
(Closter, NJ) |
Family ID: |
46332375 |
Appl. No.: |
13/251927 |
Filed: |
October 3, 2011 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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12645020 |
Dec 22, 2009 |
8032457 |
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13251927 |
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09524281 |
Mar 13, 2000 |
7644037 |
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12645020 |
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60148968 |
Aug 13, 1999 |
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60164449 |
Nov 10, 1999 |
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60164274 |
Nov 9, 1999 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 20/04 20130101;
G06Q 20/10 20130101; G06Q 20/102 20130101; G06Q 40/12 20131203;
G06Q 20/40 20130101 |
Class at
Publication: |
705/39 |
International
Class: |
G06Q 20/10 20120101
G06Q020/10 |
Claims
1-50. (canceled)
51. A method for transferring funds over the Internet comprising
the steps of: receiving via the Internet at a transfer processing
system that has access to funds from a payor account an electronic
message that contains fund transfer information, the fund transfer
information comprising a fund transfer amount and an electronic
address for a payee; initiating transfer of funds from the payor
account to the payee at the transfer processing system, wherein the
initiating step comprises the following: if a payee account
associated with the electronic address for the payee provided in
the electronic message is accessible to the transfer processing
system, then initiating transfer of funds from the payor account to
the payee account associated with the electronic address for the
payee; and if a payee account is not accessible to the transfer
processing system, then temporarily storing funds from the payor
account until a payee account is established; and transmitting a
payment message over the Internet to the payee's electronic address
from the transfer processing system, the payment message containing
information that confirms to the payee that the payor has made
funds available to the payee.
Description
FIELD OF INVENTION
[0001] The present invention relates to the field of electronic
funds transfer via the Internet wherein a sender provides payment
information to an on line transfer processing system which sends an
electronic payment message to a recipient indicating the transfer
of funds and a transfer message to a financial institution that
debits the sender/payor's account and makes those funds available
to the recipient. The receipt of the electronic payment message
from the sender unequivocally informs the receiver that funds have
been successfully transferred and are available for withdrawal or
other transactions.
BACKGROUND OF THE INVENTION
[0002] In a typical financial transaction, a payor transfers funds
to a payee through one or more financial institutions. Generally,
the transaction involves a payor who submits a request to his or
her bank to transfer a specific amount of funds to a payee's
account. The payor's bank debits the payor's account and contacts
the payee's bank. The payee's bank then credits the payee's account
with funds from the payor's account. Finally, the funds are made
available to the payee for withdrawal. However, this process
usually takes several days or weeks to complete. In other words,
the funds are not available to the payee for an extended period of
time after the transaction has been initiated. The typical funds
transfer process unnecessarily delays business transactions. This
is particularly fatal for Internet businesses where speed and
availability of funds are essential. Another problem arises when
the transaction is not executed properly due to security problems
or errors in entering multiple identification codes. These and
related problems further prolong the transaction process and delay
fund availability.
[0003] International transfer of funds is especially complicated
because of various government regulations and the use of different
currencies. International transfer of funds requires the payor to
obtain the relevant exchange rate in order to calculate the
equivalent value of the foreign currency. The rate of exchange is
not always available to the payor. This lack of important
information generally delays international funds transfers.
[0004] The Internet has provided numerous opportunities for
purchasers to browse and shop on line. In particular, the Internet
has made buying and selling goods, information and services
increasingly easy, convenient and affordable. The opportunities to
buy and sell over the Internet are vast and plentiful, however, a
system and method of payment that complements the speed and
convenience of the Internet has yet to be implemented.
[0005] These and other drawbacks exist with current systems.
SUMMARY OF THE INVENTION
[0006] An object of the present invention is to overcome these and
other drawbacks with existing systems.
[0007] It is an object of the present invention to provide a system
and method for transferring funds over the Internet wherein a
sender provides payment information to a transfer processing system
wherein the transfer processing system sends a payment message to a
recipient indicating the transfer of funds and a transfer message
to a financial institution that debits the payor's account and
makes those funds available to the recipient.
[0008] It is another object of the present invention to provide a
system and method of funds transfer over the Internet wherein a
payment message indicating information of funds transfer is sent to
an electronic address of a payee where the payment message may be
sent by email, AOL Instant Messenger.TM., NetMeeting.TM., Microsoft
Chat.TM., ICQ.TM., Netscape Messenger.TM., or other electronic
communication methods wherein receipt of the message by the payee
informs the payee that funds have been or are in the process of
being transferred and are or will shortly be available for
withdrawal or other transactions. The payment message may also be
sent as a text message to a cell phone.
[0009] It is another object of the present invention to transfer
funds over the Internet to a recipient's account with an IBQ
financial institution's transfer processing system where receipt by
the recipient of a payment message informs the recipient that funds
have been successfully transferred.
[0010] It is another object of the present invention to transfer
funds over the Internet to a recipient who does not have an account
through use of a financial institution's online transfer processing
system where receipt of a payment message by the recipient informs
that recipient that funds are available for withdrawal once the
recipient establishes communication with the financial
institution's online transfer processing system over the Internet.
In this situation, the sender may convey a password to a recipient
through a separate method of communication where the password
allows the recipient to gain access to the funds transferred and
made available through the transfer processing system.
[0011] It is another object of the present invention to transfer
funds over the Internet where a payor's personal account number is
not conveyed, a payee's personal account number is not required,
and funds may be conveyed anonymously.
[0012] It is another object of the present invention to provide a
system and method of funds transfer over the Internet where the
payee may automatically redirect funds received from the payor to a
second payee without even opening an account with the fund transfer
system.
[0013] The present invention provides a system and method of funds
transfer over the Internet where security measures are implemented
to ensure safe and confidential transfer of funds. Users may
transfer funds through various methods including email transfers,
wire transfers, electronic checks, certified checks, conventional
checks, Western Union money transfer, transfers to ATM debit/credit
cards, letters of credit, buy/sell securities, stop payment orders,
and other types of transactions.
[0014] A payor system enters payment information to a transfer
processing system such as an IBQ Server.TM. developed according to
the present invention through the Internet. The transfer processing
system (e.g., IBQ Server) verifies that the payor system has the
requisite amount of money in a specified payor's account in a
financial institution associated with that transfer processing
system to make the desired transfer. Communication between the
transfer processing system and the payor's financial institution
may occur to exchange account information. Transfer processing
system sends a transfer message to the payor's financial
institution and simultaneously sends a payment message to the
payee. The payment message may contain information regarding the
funds transfer.
[0015] When the payee system receives the payment message over the
Internet, the payee system is notified of the availability of funds
where the funds may be (1) transferred into the payee system's
account where the payee system's bank is a member of the transfer
processing system or (2) made available to the payee system by
establishing a connection with the transfer processing system where
the funds may be redirected as desired by the payee system. The
receipt of a payment message from a payor system through a transfer
processing system to a payee system indicates that (1) the payee
has received the funds in an account with the transfer processing
system of the present invention or (2) money transfer has been
successfully initiated and funds are or will be available for
withdrawal or further funds transactions through the transfer
method selected by the payor. A payor system may include an
individual, a group of individuals, a company, a merchant, or any
other entity that may need to make a payment. Likewise, a payee
system may include an individual, a group of individuals, a
company, a seller of goods or services, or any other entity that
may receive a payment. Thus, individuals or other entities may
transfer funds while sending messages over the Internet.
[0016] The payee may receive different types of messages. The
payment message may indicate that the transfer of funds has been
completed and the payee's personal account has been credited
accordingly (in the case of an email transfer between two system
account holders). Instead, when the payee does not have an account
and the payor requests an email transfer, the payment message may
inform the payee that funds have been transferred from the payor's
account and are now immediately available to the payee for
withdrawal or other transactions. Also, if the payor selects a
transfer other than an email transfer, the payee may receive a
payment message indicating a wire transfer, a mail delivered check,
or an electronic check has been initiated, or that the payee may
withdraw cash from a financial institution that is associated with
the present invention. In any case, the payee system may then
receive the funds and redirect those funds to whomever the payee
desires through a selection of different transaction methods.
Transactions in accordance with the present invention occur online
in real time. Thus, transfer of funds according to the system of
the present invention is similar to the exchange of cash between
two entities. The payee is informed of the availability of funds
and may immediately use the transferred funds towards a purchase, a
debit payment, or any other financial transaction.
[0017] The present invention provides banking services to
individuals and local business communities with the ability to
promote commercial links around the world. The present invention
provides secure and convenient banking services on the Internet.
Banking communications are thoroughly encrypted and supplied with a
unique electronic signature to ensure confidentiality and security.
Most recent and historic account(s) activity reports may be
available to the subscribers of the present invention upon request.
Also, subscribers may verify the balance in his or her account(s)
at any time. Subscribers may maintain multiple accounts to manage
all types of financial transactions, including personal and
business related fund transfers. Email transfers, wire transfers,
electronic checks, certified checks, conventional checks, Western
Union money transfer, and other transaction activities are
available. The present invention provides flexible Internet access,
secure remote banking tools, multi-currency capability and fast
on-line application; processing and management. Users may send cash
in minutes throughout the entire world for personal and business
reasons.
[0018] The present invention simplifies the process of exchanging
money for purchases over the Internet. If both the buyer and seller
have accounts with a financial institution affiliated with a
transfer processing system according to the present invention,
funds are transferred from the buyer's account to the seller's
account instantly by the transfer processing system(s) and
confirmed by the buyer and seller's affiliated financial
institutions. In this case, the buyer may access his or her account
with the present invention from the seller's web page, complete a
form for funds transfer, input the seller's information, and
provide an electronic signature to make an instant electronic
payment. Also, the buyer may complete an invoice on the seller's
web-site, provide the buyer's personal account information of the
present invention, and provide an electronic signature to
successfully make an electronic payment.
[0019] Other objects and advantages of the present invention will
be apparent to one of ordinary skill in the art upon reviewing the
specification herein.
BRIEF DESCRIPTION OF THE DRAWINGS
[0020] FIG. 1 is a diagram of an overall system of funds transfer
where the payor and payee are subscribers to a system according to
an embodiment of the present invention.
[0021] FIG. 2 is a diagram of an overall system of funds transfer
where the payee is not a subscriber to the system according to an
embodiment of the present invention.
[0022] FIG. 3 is a detailed diagram of an overall system for
transferring funds over the Internet according to an embodiment of
the present invention.
[0023] FIG. 4 is a flowchart illustrating a process of electronic
funds transfer according to an embodiment of the present
invention.
[0024] FIG. 5 is a flowchart illustrating a process of electronic
funds transfer where both the payor and payee are subscribers of
the present invention.
[0025] FIG. 6 is a flowchart illustrating a process of electronic
funds transfer where the payor is a subscriber of the present
invention but the payee is not.
[0026] FIG. 7a illustrates a screen shot of a graphical user
interface for requesting an email transfer where a payee maintains
an account with the system according to an embodiment of the
present invention.
[0027] FIG. 7b illustrates a screen shot of a graphical user
interface for requesting an email transfer where a payee does not
maintain an account with the system according to an embodiment of
the present invention.
[0028] FIG. 8a illustrates a screen shot of an email received by a
payee according to an embodiment of the present invention.
[0029] FIG. 8b illustrates a screen shot of a graphical user
interface for accessing funds transferred to a payee according to
an embodiment of the present invention.
[0030] FIG. 9 illustrates a screen shot of a graphical user
interface for requesting a Western Union money transfer according
to an embodiment of the present invention.
[0031] FIG. 10 illustrates a screen shot of a graphical user
interface for requesting a check transfer according to an
embodiment of the present invention.
[0032] FIG. 11a and 11b illustrate a screen shot of a graphical
user interface for requesting a wire transfer according to an
embodiment of the present invention.
[0033] FIG. 12 illustrates a screen shot of a graphical user
interface for requesting an ATM credit/debit card transfer
according to an embodiment of the present invention.
[0034] FIG. 13 is a diagram of a system where clients of different
processing systems transfer funds according to an embodiment of the
present invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0035] The present invention relates to methods and systems for
transferring funds over the Internet. In these systems and methods,
a payor system may provide payment information to a transfer
processing system of the present invention to make a funds
transfer. That transfer processing system is affiliated with a
financial institution wherein a payor's account has been designated
for use by the transfer processing system. For purposes of example,
the account may be designated as an IBQ.TM. account so that funds
in that account are available for use by an IBQ Server.TM.
(transfer processing system) for on-line money transfers. In a
preferred embodiment, each member financial institution has its own
IBQ server. Further, each member institution maintains its own
account with a Settlement Bank. The Settlement Bank may maintain
accounts for all system member banks to settle inter-bank
clearance. After verifying that sufficient funds exist in the
payor's account, the IBQ server transmits a transfer message to a
financial institution and a payment message to the payee system.
The transfer message informs the financial institution how much to
debit from the payor's account. If the payee system has an account
with a financial institution that is a member of the transfer
processing system, the transfer message may also inform the
financial institution how much to credit the payee's account. This
is called an IBQ transfer because both participants are IBQ system
customers. The payment message informs the payee system that funds
have been transferred and are available.
[0036] When the payee receives an electronic payment message from
the payor, the payee is informed that funds have been successfully
transferred to the payee and are now immediately available. For an
IBQ transfer, because the payee has an account with a transfer
processing system of the present invention, the payment message
unequivocally informs the payee that funds have been transferred to
the payee's account at a financial institution that is an IBQ
member. An email transfer may also be sent to a payee that does not
maintain such an account. For that system, the payee may enter the
transfer processing system (IBQ server) through the Internet and
easily retrieve the funds transferred from the payor by inputting a
password separately provided to the payee by the payor. This method
and system of electronic funds transfer provides speed, convenience
and security in financial transactions over the Internet.
[0037] The funds may be transferred through a plurality of payment
methods including an email transfer (described above), wire
transfer, electronic check, conventional check, Western Union money
transfer, transfer to ATM Debit/Credit cards, letters of credits,
buy/sell securities, stop payment orders, and other types of
transfers.
[0038] The present invention combines electronic messaging and
financial transactions into one fast, convenient, affordable,
easy-to-use system over the Internet. This combination provides an
extremely beneficial system for Internet-based business
transactions which require fast transactions and easy
accessibility. Transfer of funds according to the present invention
may be completed in the normal amount of time it takes for a
recipient to receive an electronic message from a sender.
Generally, electronic messages are received instantaneously or in a
matter of seconds. The speed at which funds are transferred through
the system of the present invention is very beneficial for
Internet-based transactions world-wide.
[0039] The payment information and payment message may be sent via
email, AOL Instant Messenger.TM., NetMeeting.TM., Microsoft
Chat.TM., ICQ.TM., Netscape Messenger.TM. and other methods of
electronic communication over the Internet. In addition, a payment
message may be sent as a text file to a cell phone or other
communication methods so that a recipient may be informed of funds
transfer even when access to the Internet is not immediately
available. Upon receipt of the payment message by the payee, the
payee is assured that the funds have been successfully transferred.
Subsequently, the payor may receive confirmation of the
transaction.
[0040] For example, after negotiations between a merchant and a
buyer for goods, the buyer may access the present invention to make
a payment for the goods at the agreed price. The buyer may access
the present invention and complete a payment order by providing the
merchant's email address, the buyer's electronic signature, and
possibly other information as well. The specifics of the order may
be sent as a text file or as an email message to the merchant with
the payment message. If both the merchant and buyer maintain
accounts with a participating financial institution according to
the present invention, the merchant's account is credited instantly
and the goods are on their way to the buyer. If the merchant does
not maintain an account with the system, the merchant may easily
access the transfer processing system through the Internet (or
other methods, if desired) and withdraw the funds transferred by
entering security information. The merchant may even redirect the
funds received to the merchant's account at a different bank
electronically through the system.
[0041] The present invention also allows payor systems to transfer
funds to a payee system without knowledge of the recipient's
account number or anything beyond an email address, chat name, ICQ
name and the like. Also, the sender's account number may not be
conveyed to the payee system to conduct an electronic funds
transaction. This feature of the present invention preserves user
security and protects highly confidential information. According to
another embodiment, payor and payee personal account numbers may
not be disclosed to either user in accessing funds, thereby
maintaining the confidentiality of both account numbers. This
feature of the present invention applies to the situations where
(1) both the payor system and the payee system have accounts with
the transfer processing system and (2) only the payor system has an
account with the transfer processing system, as well.
[0042] More specifically, when both the payor and payee maintain
accounts with the present invention, the system provides internal
authentication. Security and confidentiality are preserved because
the entire funds transfer transaction occurs within the system.
Thus, personal account information and passwords are not required
to safely transfer funds between two subscriber entities.
[0043] When the payee does not maintain an account with the system,
a payment control number (PCN) generated by a transfer processing
system is conveyed to the payee, such as by including that number
as part of the payment message to the payee. To access the funds
transferred, the payee enters the transfer processing system,
enters that PCN and then enters a password provided by the payor.
In one embodiment, the password may be conveyed to the payee
through a method of communication that is different from the method
used to convey the payment message. For example, the payment
message may be sent as an email while the password used to retrieve
the funds may be conveyed by telephone, fax, cell phone, a separate
email to a different account, or other modes of communication. The
non-subscriber payee may then access the transferred funds at the
transfer processing system by supplying specifics of the
transaction, a reference number, and the password conveyed by the
payor.
[0044] FIG. 1 is a diagram of an overall system according to the
present invention where both the payor system and payee system are
account holders of a system of the present invention, as shown by
100 (e.g., IBQ account holders). This figure illustrates an
embodiment of the present invention where both payor system 110 and
payee system 120 have accounts at financial institution 180 (e.g.,
IBQ.TM. accounts) that maintains or is otherwise affiliated with
transfer processing system 140 (e.g., an IBQ.TM. Server). Payor
system 110 may enter payment information 125 at transfer processing
system 140 through the Internet. Payor system 110 may input payment
information 125 at transfer processing system 140 or may send
payment information 125 as a packet over the Internet. Transfer
processing system 140 verifies that payor system 110 has adequate
funds to make the transfer requested. Transfer processing system
communicates with financial institution 180 about member accounts
so that verification may be established automatically. Payor system
110 may also have access to account information through transfer
processing system 140. The payment message 130 is sent to payee
system 140 through the Internet while a transfer message 135 is
sent to the financial institution 180. Transfer processing system
140 debits and credits payor and payee accounts pursuant to the
payor system's payment instructions instantly. Once payee system
120 receives payment message 130, payee system 110 is informed that
funds have been successfully transferred from the payor's account
to the payee's personal account. At this point, the transfer of
funds has been completed and the payee system is assured of proper
credit to the payee's account. Payee system 110 may access the
funds, transfer the funds to a different entity, or perform other
transactions. Depending on the type of funds transfer, once the
payee receives the payment message which provides confirmation of
funds transfer, payee system 120 may redirect those funds through
one or more of the following:
[0045] (1) Western Union--The payee may issue a request to have the
funds transferred from his or her account to Western Union for cash
delivery;
[0046] (2) Financial Institution Withdrawal--The payee may withdraw
funds in his or her account from his/her member financial
institution such as ATM 184, cash withdrawal at the financial
institution, additional wire transfers, etc.;
[0047] (3) Check issuance--The payee may issue a check from those
funds to himself to take to clear at another financial institution;
or
[0048] (4) Other funds related establishments,
[0049] FIG. 2 is a diagram of an overall system 200 according to
the present invention where the payee system is not a subscriber of
the system of the present invention. This figure illustrates an
embodiment of the present invention where payor system 110
maintains an account with financial institution 180 while payee
system 120 does not. Payor system 110 may enter payment information
125 directly at transfer processing system 140 through the
Internet. Payor may input payment information 125 at transfer
processing system or may send payment information 125 as a packet
over the Internet. Transfer processing system 140 verifies that
payor system 110 has adequate funds to make the transfer requested.
Transfer processing system 140 communicates with financial
institution 180 about member accounts so that verification may be
established automatically. Payor system 110 may also have access to
account information through the transfer processing system.
Transfer processing system 140 generates a PCN is sent to payee
system 140 in payment message 130 through the Internet. A transfer
message 135 is sent to a financial institution 180. Transfer
processing system 140 debits the payor's account pursuant to the
payor system's payment instructions instantly.
[0050] Payor system 110 may convey a password 115 to payee system
120 through a separate communication means, such as a telephone,
cell phone, fax, an email to a different account, or other mode of
communication. By separating the payment message which contains
valuable information regarding funds transfer and the password that
is needed to actual receive the funds, security is maintained.
[0051] In this embodiment, payee system 120 comprises an email
address (or other nickname for AOL, ICQ, etc.) enabled device that
receives the message. Payee system 120 may then access transfer
processing system 140 through the Internet to actually retrieve the
funds. To retrieve the funds made available, payee system 120
inputs password 115, the PCN conveyed in the payment message, and
specifics of how that payee desires to receive the funds transfer,
including Western Union, ATM, forwarding the funds to an IBQ
account opened by the payee, etc.
[0052] Although these steps are performed to actually retrieve the
funds, once payee system 120 receives payment message 130, payee
system 110 is informed that funds are immediately available. Payee
system may access the funds, transfer the funds to a different
entity, or perform other transactions. Depending on the type of
funds transfer, once payee receives the payment message which
provides confirmation of funds transfer, payee system 120 may
access the funds through a Western Union office 182, an ATM 184, or
a different bank 186, or other funds related establishments to
which funds may be made available for access.
[0053] Payment message 130 may be in the form of an email message,
a message in a chat room, instant messenger, ICQ, or other similar
methods of sending messages over the Internet. Also, payment
message 130 may be sent as a text file to a cell phone of the payee
system. In these embodiments, the chat program, instant messenger,
ICQ, or other modules are IBQ enabled so sending the message also
initiates contact with an IBQ server to initiate funds
transfer.
[0054] FIG. 3 is a detailed diagram of an overall system according
to the present invention, as shown by 300. Payor system 110 may
select the type of funds transfer. Funds may be transferred through
an email transfer 150, Western Union money transfer 151, check
transfer 152, wire transfer 153, ATM debit/credit card transfer
154, and other methods of transferring funds 155, such as letters
of credit, buy/sell securities, or stop payment orders. Check
transfer module 152 may include electronic checks, certified checks
or regular checks. Transfer processing system 140 also provides for
a payment interface system 142. One or more payor systems 110
(e.g., user terminals connected over the WWW) are provided that may
enter payment information to be processed by transfer processing
system 140. Transfer processing system 140 sends a transfer message
135 to financial institution 180 and a payment message 130 to payee
system 120. A plurality of payee systems 120 may be provided in
system 200. The subscriber's account information, transaction
histories, and other relevant information are stored in databases
160 and are accessible by transfer processing system 140. Funds
transfer may be realized by either crediting the payee's account at
financial institution 180, providing access to the funds via
Western Union 182, financial institution withdrawal (e.g., ATM
184), as a check available at a different financial institution
186, or other methods of accessing funds.
[0055] For example, if both payor system 110 and payee system 120
are subscribers to transfer processing system 140, the payor's
account is debited and the payee's account is credited pursuant to
the payor system's instructions instantly. If payor 110 is a
subscriber to a member financial institution 180 while payee 120 is
not, the payor's IBQ account is debited and those funds are made
available to payee system 120. Payee system 120 may then access
transfer processing system 140 through the Internet to retrieve the
funds transferred by subscriber payor system 110 by entering
specific transaction information.
[0056] FIG. 4 is a flowchart illustrating a funds transfer method
400 according to an embodiment of the present invention. A payor
may enter the transfer processing system through the Internet/WWW
at 401. A payor may view his or her account statement to determine
whether the desired amount of funds may be transferred, at step
405. The payor may then input information to make a transfer. At
step 410, the payor may select a type of funds transfer, which may
include email transfer; Western Union money transfer; check
transfer (e.g., an electronic check, certified check or regular
check); wire transfer; ATM debit/credit card transfer; letters of
credit; buy/sell securities; stop payment orders; and other types
of transactions. An electronic form corresponding to the desired
method of transfer prompts the payor to enter appropriate
information specific for each type of transmission. These
transactions may occur within the financial institution where both
the payor and payee have accounts. Alternatively, the transactions
may occur between a payor who has an account with one of the member
financial institutions and a payee who does not maintain an account
with one of the financial institutions. At step 420, the payor may
input the type of currency, amount of transfer and the payee's ID
(e.g., electronic address, ICQ name instant messenger address, chat
room names, etc.). The transfer processing system may verify the
amount available, at step 425. If funds are insufficient for
transfer, the system may deny the ability to send instructions for
payment. Depending on the type of funds transfer selected, the
payor may input additional information for proper transaction, at
step 430. The payor may also input his or her information at step
440, which may include an electronic signature, a personal message
or other information used by the system to authenticate the payor.
The transfer processing system 140 sends a payment message to the
payee and a transfer message to a financial institution, at step
450. Finally, the transferred funds are made available for the
payee, at step 460.
[0057] FIG. 5 is a flowchart illustrating a funds transfer method
involving a payor and a payee who are both subscribers to the
system of the present invention. The subscriber payor may select to
send funds to a subscriber payee through an IBQ transfer, at step
210. The subscriber payor may enter the subscriber payee's email
address 212, a personal message 214, the type of currency 216, and
other relevant information. The subscriber payor may receive a
confirmation message at step 218 where an electronic signature may
be requested from the payor for verification, at step 220. Where
both the payor and payee are subscribers to the present invention,
security passwords may be avoided, if desired, because the entire
funds transaction occurs within the system of the present
invention.
[0058] Once a subscriber payor inputs payment information, transfer
processing system 140 sends a transfer message to a transfer
processing system (see FIG. 13) associated with a financial
institution where the payee's account is opened pursuant to the
payor's request, at step 224. The funds are directly transferred
from the subscriber payor's personal account into the subscriber
payee's personal account, at step 226. Simultaneously, the
subscriber payee receives a confirmation message from the
subscriber payor through the transfer processing system 140
informing the subscriber payee that the funds have been
successfully transferred and are now available, at step 228. The
subscriber payor may then receive confirmation that the money
transfer has been successfully processed, at step 230. The
subscriber payee may check the status of the transaction and verify
that the funds have been properly transferred by entering the
transfer processing system, at step 240. At this point, the
subscriber payee may withdraw the funds, redirect the funds,
monitor the transaction and perform other related activities. In
particular, the payee may make a transfer to a different account
within the present invention, order a wire transfer, make a
transfer via Western Union money transfer, generate a check, an
electronic check or a certified check, make a transfer to an ATM or
credit/debit card, or retrieve cash at a bank that subscribes to
the present invention.
[0059] FIG. 6 is a flowchart illustrating a funds transfer method
involving a payor who is a subscriber to the system and a payee who
is not a subscriber to the system of the present invention. The
subscriber payor may select to send funds to a payee through an
email transfer, at step 310. The subscriber payor may enter the
payee's email address 312, a personal message 314, the type of
currency 316, and other relevant information. The subscriber payor
may receive a confirmation message at step 318 where an electronic
signature may be required for verification, at step 322. In
addition, the subscriber payor may enter a password for the payee's
transfer access for security purposes, at step 320.
[0060] The subscriber payor may inform the payee of the password
through a separate method of communication, such as phone,
facsimile, a separate email in a different account or other modes
of communication to ensure security and confidentiality, at step
326. In one embodiment of the present invention, password is
transferred through an alternative channel outside of the system of
the present invention. By separating the message indicating funds
transfer and the password required to retrieve the funds
transferred, security is enhanced because the information to access
the funds is not contained in one single message. Although,
according to the present invention, the password may be encrypted
with the payment message as well or may simply be sent with the
message, although doing so may not be entirely secure.
[0061] In another embodiment of the present invention, the payor
may implement an added security measure. This may include requiring
a payor to confirm the transfer before the actual transaction takes
place. In this case, the payee sends a message to the payor stating
certain confidential information regarding transfer for
verification. The payer may then confirm the transaction with his
or her personal electronic signature to allow the transaction to
actually occur. Thus, the payee provides verification by inputting
a reference number and a password provided by the payor while the
payor confirms the accuracy of the verification and subsequently
permits the transaction to occur.
[0062] When the payor inputs payment instructions over the
Internet, the transfer processing system sends a transfer message
to its financial institution, at step 328. The funds are deducted
from the subscriber payor's personal account with the present
invention and made available to the payee, at step 330.
Simultaneously, the transfer processing system sends a payment
message to a payee informing the payee that the funds are available
through the present invention, at step 332. The email message may
also provide the payor's information, the PCN generated by the
transfer processing system, the personal message from the
subscriber payor, and instructions for retrieving the money through
the present invention. For example, a merchant may convey the
details of a particular order for goods or services along with his
payment. Also, a merchant may include a file attachment which may
include a contract or other documents relating to the purchase of
goods or services. The subscriber payor may then receive
confirmation that the money transfer has been successfully
processed, at step 333. The payee may enter the transfer processing
system through the Internet to retrieve the funds made available by
the subscriber payor, at step 334. The payee may click on an icon
to receive money, at step 336. At this point, the payee may enter
the payor's information and the PCN generated by the transfer
processing system at step 338, and the authentication password
provided by the subscriber payor (e.g., through a separate method
of communication, at step 340. The payee may then withdraw the
funds, redirect the funds (by opening an IBQ account), monitor the
transaction and perform related activities, at step 350. In
particular, the payee may make a transfer to an account within the
present invention, order a wire transfer, make a transfer via
Western Union money transfer, generate a check, an electronic check
or a certified check, make a transfer to an ATM or credit/debit
card, or retrieve cash at a financial institution that holds a
membership to the present invention. The payee may also then
monitor the status of those transactions. If desired, the payor may
be notified when the payee accesses the funds and/or transfers the
funds, opens an account, etc.
[0063] If a payee needs the funds quickly, that payee will desire
to use the redirect feature because opening an IBQ account may take
time. Also, the payee may also desire to remain anonymous to a
certain extent with the IBQ system. In that case, the payee is able
to redirect the funds held for the payee to case or to an account
already established by the payee (e.g., through wire transfer,
etc.).
[0064] FIGS. 7a and 7b are illustrations of screen shots of
graphical user interfaces through which a payor may request an
email transfer. The payor may provide an electronic address of the
payee. If the payor does not indicate an amount to be transferred,
a personal message is sent to the addressee, but no funds are
transferred. The present invention functions as an email service if
the payor fails to specify an amount to be transferred. The payor
may even include file attachments which may include documents,
advertisements, or other pertinent information related to business
or personal transactions.
[0065] For example, Bob Smith may send a payment for lawn services
to Joe Jones at Green Lawns, Inc. as detailed in FIG. 7a. Bob Smith
may have an account with the present invention with an email
address of bobsmith@ibq.com. Bob Smith may send his monthly lawn
payment to Joe Jones through an email transfer according to the
present invention. Since Bob Smith has an account with the system,
his name automatically appears in the "From" line. Bob Smith may
enter Joe Jones' email address, a brief description of the transfer
in the "Subject" line, a file attachment which may include a
document regarding the details of the lawn service, the amount of
payment, and a detailed message. Bob Smith may also send a courtesy
copy of this email to Joe Jones' senior manager, Ed George.
However, payment is entered into GreenLawns' account while Ed
George receives a copy of the email message.
[0066] If Joe Jones maintains an account under Green Lawns, Inc.
with the present invention, Bob Smith may send his payment to
greenlawns@ibq.com where receipt of the email message informs Joe
Jones at Green Lawns, Inc. that payment has been successfully
transferred. If Green Lawns, Inc. does not maintain an account with
the present invention, Bob Smith may send the payment to Joe Jones'
email address at Green Lawns, Inc. (e.g., joejones@greenlawns.com)
as shown in FIG. 7b. Joe Jones of Green Lawns, Inc. may access the
funds transferred from Bob Jones, once the payment message is
received, through the transfer processing system of the present
invention. Instructions regarding the retrieval of funds may be
detailed in the payment message sent to Joe Jones through an email,
as shown in FIG. 8a, for example. Other methods of communicating
instructions may also be used.
[0067] FIG. 8a is an illustration of an email message received by a
payee upon a funds transfer. The message informs the payee that
transferred money may be retrieved from the transaction processing
system, such as by accessing a transfer processing system through
the Internet according to the present invention. Instructions to
retrieve the funds transferred are provided to the payee in the
message. The message informs the payee of the payor's name, the
payor's email address, and a PCN, which is generated by the
transfer processing system, that the payee enters into the transfer
processing system to retrieve the funds transferred. Also, the
payee receives a personal message sent by the payor through the
same system that provides the funds transaction. The payee may
provide specifics of an order, specific directions, or other
information that may be relevant to the transaction.
[0068] The payee does not have to be a subscriber of the present
invention to retrieve money. In order to preserve authenticity and
security, each message and transaction may be verified through a
PCN provided in the electronic message and a password provided by
the payor through a separate method of communication. The password
may be provided by the payor or generated randomly by the system.
Thus, the payee may check on the status of the transaction by
inputting the PCN and password. On the other hand, transactions
between subscriber payors and subscriber payees are more simple and
very secure because each transaction is authenticated and verified
within the system. Also, the funds transferred to a subscriber
payee are conveniently deposited in the subscriber payee's personal
account of the present invention.
[0069] For example, Joe Jones of Green Lawns, Inc. may access the
web-site of the present invention to access the funds transferred.
FIG. 8b illustrates a graphical user interface on the web-site of
the present invention which allows a payee who does not have an
account with the system to access the funds transferred. In this
example, Joe Jones may enter Bob Smith's name and PCN provided by
the payment message sent by email (FIG. 8a) and a password given to
Joe Jones such as by a separate method of communications (e.g., a
phone call, fax, or pager). Joe Jones may then access the money and
redirect the payment to Green Lawn's corporate account. Joe Jones
may also open an account with the system on behalf of Green Lawn,
Inc. to facilitate future transactions through the system.
[0070] According to an embodiment of the present invention, the
payor may also specify certain limitations when providing the payee
the right to withdraw from the payor's account. For example, the
payor may specify a time frame for when a payee may exercise his or
her rights to access the funds made available to the payee. If the
payee fails to exercise this right to the funds transferred by a
specified date, the funds may be returned to the original account
of the payor.
[0071] Although the preferred transfer methods involve an IBQ or
email transfer, the IBQ system also enables subscribers to initiate
other transfer methods through the web and the IBQ server. An
advantage of using the IBQ system to initiate these types of
transfers is to allow the initiator to remain anonymous to the
payee and to allow the payor to trace the status of each transfer
online through the IBQ server. The IBQ server provides the payor
with up-to-the-minute status information so the payor knows the
exact date and time when the payment is made.
[0072] The payor may select to transfer funds to a payee through an
email transfer, Western Union money transfer, electronic check,
certified check or other types of check, wire transfer, transfer to
a debit/credit ATM card, Letter of Credit, Buy/Sell securities,
stop payment orders or other methods of funds transfer. An
electronic form corresponding to the selected method of transfer
prompts the payor to enter appropriate information for proper
transmission. Security features may also be enforced to maintain
confidentiality. Payors may select the most convenient type of
funds transfer based on personal or business preferences which may
depend on the type of transaction and preferences of the intended
recipient.
[0073] One method of transferring money available through the
present invention is a Western Union money transfer that provides a
fast and reliable method of transferring funds around the world.
There is no need to wait for a check to clear or arrive in the
mail. Western Union money transfer is an efficient way for payors
to access funds from their bank accounts. The transaction is
generally completed within a few hours where the transfer may be
collected in cash.
[0074] As discussed above, FIG. 4 provides an overview of a funds
transfer process according to the present invention. With respect
to a Western Union money transfer transaction, the payor may input
additional information at step 430. FIG. 9 is an illustration of a
screen shot of a graphical user interface for a payor to perform to
a Western Union money transaction. The payor may enter an
electronic address and a personal message. In addition, the payor
may enter the name of the individual who retrieves the funds. A
destination city, province/state and country may also be specified.
Some countries may require a test question so that the individual,
designated as the person who picks up the funds, is prompted with
the question. Once the proper answer is given, the individual may
retrieve the funds.
[0075] For example, Karen Brown owns a small card store that sells
paper products and greeting cards. Karen Brown may need to transfer
funds in the form of a Western Union money transfer to a seller of
specialty greeting cards in France. She is late on an important
payment and needs to transfer funds quickly and safely. Karen Brown
has an account with the present invention and an email address of
karenbrown@ibq.com. Karen may attach a document as a file
attachment, which may include an invoice detailing the types of
greeting cards and the amounts needed by Karen Brown, and a brief
personal message. She may send the payment in US dollars and the
system converts the funds into the currency of the destination
country. In this example, 600 US dollars will be converted into
French Francs. Karen Brown may input a question with an answer and
relay that answer to Anna so that Anna may receive the transferred
funds by inputting the correct answer. Once Anna receives the
payment message notifying her of the transfer through Western Union
money transfer, Anna may obtain the funds through a participating
financial institution, such as a Western Union outlet.
[0076] Another method of transferring money available through the
present invention is through Check Issuance, which may include the
issuance of electronic checks, certified checks, and regular
checks. By requesting funds transfer by check issuance, the
transfer processing system may prepare the specified type of check
and send the check either electronically or by mail. A payor may
send a message to a payee indicating that a check was sent or will
be sent by either mail or in electronic form.
[0077] As discussed above, FIG. 4 provides an overview of a funds
transfer process according to an embodiment of the present
invention. With respect to a check transaction, the payor may input
additional information at step 430. FIG. 10 is an illustration of a
screen shot of a graphical user interface for a payor to request a
check payment transaction. The payor may enter an electronic
address and a personal message. In addition, the payor may enter
the name of the entity to which the check is to be issued. An
address of the payee and memo explaining the type of transaction or
other pertinent information may also be entered. The check is
delivered to the mailing address specified by the payor. The method
of delivery may also be specified, which may include DHL, UPS,
FedEx, EMS, registered mail, or other methods of delivery.
[0078] Electronic checks may be used for money transfers in
accordance with the present invention. An electronic check may be
forwarded as an attachment to the payment message via email. The
recipient may access the system and verify the authenticity of the
check using a password supplied by the payor, reference number, and
other applicable parameters. Also, the payee may print out the
electronic check and submit it to a bank with confirmation
information to receive payment or make a deposit.
[0079] For example, Sam Woods has a restaurant business that is
expanding and he wants to redecorate his restaurant to create a
more welcoming atmosphere. Sam Woods needs to purchase dining
tables (round and square), chairs, a new bar, and ceiling fans. He
finds everything he needs through Edgar Bradley Furniture's
web-site. Sam Woods wants to purchase these products immediately
through the web-site and begin upgrading his restaurant. Sam Woods
may send a payment message to Lisa Bradley, the sales
representative of Edgar Bradley Furniture, at
LisaBradley@EdgarBradley.com. Sam Woods may also specify the exact
order, including quantity, color and model as a file attachment.
Sam Woods may include the payment and delivery information. Sam
Woods also has the option to send this payment as an electronic
check or certified check.
[0080] Another method of transferring money available through the
present invention is through Wire Transfers. Money transferred
through a wire transfer may be completed in minutes or may take
several days. Generally, wire transfers are commonly used between
entities in a business transaction for large amounts of money.
[0081] As discussed above, FIG. 4 provides an overview of a funds
transfer process according to the present invention. With respect
to a wire transfer, the payor may input additional information at
step 430. FIG. 11a and 11b illustrate a screen shot of a graphical
user interface for a payor to make a Wire Transfer transaction. The
payor may enter an electronic address and a personal message. In
addition, the payor may enter information pertaining to an
intermediary bank. The payor may also enter information pertaining
to a beneficiary bank, which holds the account the payee desires
the funds to be transferred. The payor may enter the beneficiary's
account information and address. The type of payment may also be
specified. For example, the payor may designate the transfer as
either urgent or normal. A value date may also be indicated and the
payor has the option of requesting confirmation of payment.
[0082] For example, Tony Martin is financing a start up company
called E-shirts.com that specializes in selling T-shirts over the
Internet. The entrepreneurs Dave and Tom are in dire need of money
fast. Tony Martin who is a successful businessman wants to wire
transfer money to this company. Tony Martin who has an account with
a transfer processing system of the present invention may select
the wire transfer option and send an email message to
Dave&Tom@eshirts.com informing them that money is being sent by
wire transfer. Tony Martin may also input information regarding the
Intermediary Bank and Beneficiary Bank, including details of the
wire transfer.
[0083] Another method of transferring money available through the
present invention is through ATM Credit/Debit Card Transfers where
funds are transferred to a card account.
[0084] As discussed above, FIG. 4 provides an overview of a funds
transfer process according to the present invention. With respect
to an ATM credit/debit transfer, the payor may input additional
information at step 430. FIG. 12 is an illustration of a screen
shot of a graphical user interface for a payor to make an ATM
Credit/Debit transfer transaction. The payor may enter an
electronic address and a personal message. In addition, the payor
may enter the account number and the card number to conduct an ATM
credit/debit card transfer.
[0085] For example, Sue Parker may purchase a digital camera from
Mike at CameraShop.com over the Internet through a payment to her
ATM Credit Card. Sue Parker may send a payment message by email to
Mike where the payment message is simultaneously sent to a transfer
processing system. Mike may have an account with the present
invention with an email address of CameraShop@ibq.com. The payment
message provides instructions to debit Sue Parker's ATM Credit Card
and transfer these funds to CameraShop.com's account with the
system. Sue Parker provides the system with her account number and
card number. When the payment message is sent, her account is
debited immediately and her order for a digital camera is
processed. If CameraShop.com maintains an account with the present
invention, the payment for the digital camera is immediately
transferred into CameraShop.com's account thereby facilitating
payment.
[0086] Each user who maintains an account with a transfer
processing system of the present invention may receive a unique
email address. Email messages may be signed with a secret code or
electronic signature for authentication purposes. For
confidentiality reasons, some users may prefer to remain anonymous.
This may be accomplished by using an email address that does not
reveal anything about the user's name or personality, such as a
series of random numbers. Users may send and receive email via the
Internet, send and receive secure mail to the transfer processing
system, send and receive secure communications with other users,
send out invitations to other non-members to join the system, and
send out special instructions explaining how to make payments to
accounts maintained by the system and how to receive funds from
users of the system.
[0087] The system of the present invention enables payees to
receive money to an email or postal address whether the recipient
has an account with the system or not. The payor may enter the
system and complete a payment message addressed to the recipient.
The payor may provide the recipient's name and the recipient's
email or postal address. The payment message informs the recipient
of payment through email or regular mail. This message may include
detailed instructions on how to verify the authenticity of the
payment message and how to access the funds available to the
recipient. This payment message simultaneously serves as funds
transfer instructions to the bank. The payment message may be
electronically signed and forwarded to a transfer processing system
where the payor's account is debited accordingly.
[0088] Once the recipient is notified of the transfer of funds, the
recipient may access the funds through the transfer processing
system using a reference number provided by the payment message and
a password provided by the payor. The payment message gives the
recipient the right to access the funds (held in route) which are
made available to the recipient by the sender. The payor may
specify the time frame at which the recipient may exercise this
right of withdrawal. Thus, the recipient is informing the system of
the particulars of the transfer (such as, reference number and
password) and the sender is confirming the accuracy of the request
and allows the transaction to occur. Once the recipient has
accessed the funds, the recipient may make a transfer to a system
account, order a wire transfer, make a transfer via Western Union
money transfer, generate a certified check, electronic check or
regular check, make a transfer to an ATM or credit/debit card, or
receive cash at a bank or transfer processing system that has an
account with the present invention.
[0089] Senders may send payment messages to subscriber payees and
non-subscriber payees. Once the non-subscriber payee enters the
system and accesses the funds, the non-subscriber payee may
register with the system and open a personal account where the
funds accessed may be immediately deposited. The payee is also
given a personal email account with the system. This payee who is
now a subscriber of the system may send input payment instructions
at a transfer processing system for funds transfers to other
individuals or entities.
[0090] Another feature of the present invention is the anonymity at
which funds may be transferred. Users may select email addresses
that do not disclose anything about the user's name or affiliation
with a group or company. For example, a user may send and receive
funds using an email address comprising random numbers to preserve
the user's confidentiality. Local banking laws may require the IBQ
subscriber to provide information to the financial institution, but
only the email address is sent to the payee if the payor so
desires. Moreover, the payee may maintain anonymity as well because
only an email address may be used at which to receive funds, when
they are redirected to another form of payment.
[0091] Subscriber payors may invite a potential recipient, who is
not a subscriber to the present invention, to become a member of
the transfer processing system before the payor actually makes a
transfer of funds. The payor may enter the system and provide the
potential recipient's information so that the system may issue an
invitation to join the system. Once the payor obtains an IBQ
account with the system, the payee may instantly transfer funds to
the payee's IBQ account. Thus, the potential payee becomes a member
of the system before the payor transfer the funds. The payor may
now transfer the funds to the payee's account with the system for a
instant transaction.
[0092] Alternatively, a subscriber payor may send a payment message
to a non-subscriber payee. Once the payment message is processed
and received, the payee may access a transfer processing system to
retrieve the funds transferred. At this point, the payee may open
an account with the transfer processing system. The funds that are
available to the payee may be immediately transferred into the
payee's newly opened account with the system. Now, the payee may
transfer funds to other subscribers or non-subscribers of the
system. The system of the present invention may compensate the
subscriber through financial compensation or by providing
additional services to the payor for each invitation that is
accepted by potential payees. Also, the financial institution and
IBQ system may enter into a business arrangement whereby
compensation is exchanged based on new customers. Because accessing
IBQ funds provides an incentive to open an account with a member
institution, the IBQ system may be paid by the financial
institution for each new customer. The compensation may be a flat
fee, may be based on a percentage of the deposit, may be based on a
percentage of transaction fees generated or any other shared risk
compensation structure.
[0093] Another option available to the payee is the ability to
redirect the funds received from the payor. The payee may redirect
the funds to another bank or credit account(s). To initiate this
feature, the payee may complete an order requesting the redirection
of funds. A notice of confirmation may be sent to the original
payor for confirmation. In addition, an electronic signature of the
original payor may be required. The request for redirection may
then be processed and completed. Redirection of funds may be useful
for business and personal transactions. For example, a buyer may
transfer funds to a seller in exchange for goods. Once the buyer
receives notice of the transfer of funds, the buyer may redirect
all or a portion of these funds to the manufacturer of goods as
payment for the goods. In another example, an individual may
receive funds through a business deal by the present invention.
This individual may then redirect the funds received to his or her
creditors to remain in business.
[0094] FIG. 13 is a diagram of a system where transfers occur
between clients of different financial institutions as affiliates
of different transfer processing systems according to an embodiment
of the present invention. This feature of the present invention
provides funds transfer between clients of different transfer
processing systems in a fast and convenient manner. Settlement
system 450 maintains a network of agreements with different
financial institutions (460, 470, 480) (which perform as financial
institutions 180 described above) and their clients for settling
funds transfers between different banks through the Internet. Payor
system 410 may send payment information to a transfer processing
system. The transfer processing system sends a transfer message to
the appropriate financial institution and a payment message to
payee system 420, which may be in the form of an email or other
mode of communication. The payment message is received by
settlement system 450 so that the funds from the payor system's
account maintained in financial institution 460 is debited and the
payee system's account maintained in a different financial
institution 470 is credited pursuant to payor system's payment
instruction. Because the payee system 420 also maintains an account
that is maintained by settlement system 450, payee system 420
receives payment immediately. The payee system does not have to
maintain an account that is maintained by settlement system 450. In
this case, the funds transferred by the payor system to a
non-member payee system are made available to the payee system
through connection with the settlement system. Settlement system
450 is also responsible for maintaining and providing communication
channels and systems via the Internet to clients of various banks.
Thus, fast and convenient funds transfer is provided by the present
invention with minimum transaction costs.
[0095] For example, Bill Roberts may have an account with financial
institution 460 in Germany while Mike Yojihama may have an account
with financial institution 470 in Japan. Bill and Mike are partners
in an on-line audio visual equipment store. Bill who manages the
company in Germany needs to transfer funds to Mike who purchases
technical equipment from Japan. Bill may send a payment message via
email to Mike through the present invention where the payment
message informs Mike of the details of the transfer. When Mike
receives this payment message, Mike is assured that the funds have
been transferred into his account the financial institution where
his IBQ account exists and may be used to pay wholesalers in Japan
for audio visual equipment.
[0096] The present invention may be particularly useful for
e-commerce transactions. More and more web-sites are selling goods
and services over the Internet. This includes the sale of cars,
books, jewelry, clothing, various services, information, and
anything else that may be sold for a price. Purchases over the
Internet are convenient, economical, and quick. Auction-type
services on the Internet have also gained more popularity and
general acceptance. The speed at which transactions occur is
especially critical in auction-type transactions where time is of
the essence. If the potential purchaser is delayed in transferring
the funds, the purchaser may lose the opportunity to purchase the
product or may have to offer an even higher bid. Transferring funds
in accordance with the present invention may be completed instantly
when both parties are members of a transfer processing system. The
buyer may access his or her account with the present invention from
the seller's web page, complete a form for funds transfer, input
the seller's information, and provide an electronic signature to
make an immediate electronic payment. Alternatively, the buyer may
complete an invoice on the seller's web page, provide the buyer's
personal account information of the present invention, and provide
an electronic signature to complete an electronic payment.
[0097] Financial institutions that are members of a settlement
system may open system accounts for their clients in accordance
with local banking laws. This is important for world-wide funds
transfer to different countries with different banking laws. For
example, a resident of Germany may open an account with a financial
institution in Germany according to those banking laws and
regulations. Financial institutions located in different countries
may establish relationships through a settlement system for
world-wide funds transfer. Financial institutions that are members
of the settlement system gain access to an enormous customer base,
receive commission from each transaction, and gain expansive use of
the Internet through funds transactions.
[0098] Another feature of the present invention is the ability to
send funds in a different currency. This is particularly important
for international funds transfer. Through the use of the Internet,
business transactions are expanding more rapidly into world wide
transactions. The present invention simplifies the task of
converting funds into different currency by automating the process.
Payors may conveniently make payments to individuals and
corporations in foreign countries.
[0099] Another feature of the present invention is the ability to
invite non subscribers to join the system of the present invention
when a subscriber payor sends an electronic message informing a non
subscriber payee that funds have been transferred and are now
available. This feature of the present invention provides a useful
marketing tool in reaching potential subscribers by targeting
individuals who need to access the present invention in order to
retrieve funds transferred to them. Another method of reaching new
subscribers involves a subscriber providing a list of email
addresses of potential subscribers.
[0100] The present invention also provides the ability to inform
payees of funds transfer through other modes of communication, such
as cell phones and pagers. This allows the payee to receive
information of funds transfer immediately and at the payee's most
convenient method of receiving information. Therefore, the payee
may be informed of funds transfer even when the payee does not have
immediate access to a computer.
[0101] The present invention also provides the ability to sends
payment message through private chat rooms, AOL Instant Messenger,
NetMeeting, Microsoft Chat, ICQ, Netscape Messenger and other
similar electronic methods of communication. Thus, funds may be
instantly transferred while the payor and payee are conversing over
an electronic medium. This feature may facilitate negotiations and
transactions between business entities.
[0102] The present invention provides many services with respect to
sending funds from an account with the system. For example, senders
may transfer funds to other recipients having accounts with the
system. Senders may transfer funds to an email address to a
recipient who does not have an account with the system where the
intended recipient may be invited to join the system, informed of
funds transfer, receives a password through an alternative
communication method to access and receive the transferred funds
and receives instructions for funds retrieval. The sender may also
issue an order for a check where transfer processing system
prepares and mails a regular or certified check by mail or may
issue an electronic check. The sender may even issue an order for a
wire transfer, send a transfer via Western Union money transfer
where the transfer is collected in cash, or transfer money to an
ATM credit/debit card where the transfer is made to a card
account.
[0103] Individuals receiving transferred funds are also entitled to
many services through the present invention. For example, the
recipient may receive a transfer from another system account or a
money transfer. Recipients may also collect payments through a
debit/credit card or deposit a check in the recipient's personal
account.
[0104] Cash withdrawals are also provided by the system of the
present invention through an ATM credit/debit card, via Western
Union money transfer, or cash withdrawals at a member hank. In
addition, users may transfer funds through letters of credit,
buy/sell securities and may also issue stop payment orders.
[0105] One time money transfer are also available through the
present invention. In particular, the system allows a single money
transfer without requiring an account with the system. Non-account
holders may participate in money transfers through authorized
transfer processing systems.
[0106] Other embodiments and uses of the invention will be apparent
to those skilled in the art from consideration of the specification
and practice of the invention disclosed herein. The specification
and examples should be considered exemplary only.
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