U.S. patent application number 13/472972 was filed with the patent office on 2012-09-06 for system and method for selectable funding of electronic transactions.
This patent application is currently assigned to JPMorgan Chase Bank. Invention is credited to Glen R. CATALINE, William Smith Rielly, Mark Robert Sheehan, William Scott Wallace.
Application Number | 20120226607 13/472972 |
Document ID | / |
Family ID | 22927588 |
Filed Date | 2012-09-06 |
United States Patent
Application |
20120226607 |
Kind Code |
A1 |
CATALINE; Glen R. ; et
al. |
September 6, 2012 |
SYSTEM AND METHOD FOR SELECTABLE FUNDING OF ELECTRONIC
TRANSACTIONS
Abstract
A system for transferring funds to pay bills and to and from
selected accounts on an optimized is provided. A mediation engine
may manage the payments made to selected payees, including by
scheduling the payments and selecting sources for funds. A
rules-based optimizer may automatically select the least-cost or
other most efficient or desirable transaction, given the customer's
available funds, types of funds and payment date. All payment
providers and payees may manipulated using one seamless view. A
customer service representative may also view the transfers.
Inventors: |
CATALINE; Glen R.; (Dublin,
OH) ; Rielly; William Smith; (Redmond, WA) ;
Wallace; William Scott; (Downingtown, PA) ; Sheehan;
Mark Robert; (Middletown, DE) |
Assignee: |
JPMorgan Chase Bank
|
Family ID: |
22927588 |
Appl. No.: |
13/472972 |
Filed: |
May 16, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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09985900 |
Nov 6, 2001 |
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13472972 |
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60245665 |
Nov 6, 2000 |
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Current U.S.
Class: |
705/40 |
Current CPC
Class: |
G06Q 40/02 20130101;
G06Q 20/10 20130101; G06Q 30/06 20130101; G06Q 20/102 20130101;
G06Q 20/14 20130101; G06Q 20/02 20130101; G06Q 20/023 20130101;
G06Q 20/00 20130101 |
Class at
Publication: |
705/40 |
International
Class: |
G06Q 20/14 20120101
G06Q020/14 |
Claims
1-41. (canceled)
42. A system for managing a transmission of funds, the system
comprising: a user device that interfaces with a human user to
input first information, the first information including payment
source information and payee information; a payment platform
database that includes payment platform information; and a
processor, the processor communicating with the user device and the
payment platform database so as to input the first information and
access select payment platform information, the processor:
identifying a single payment source based on the payment source
information, the single payment source being selected from a
plurality of payment sources, the single payment source being the
source of funds for the transmission of funds; identifying,
automatically without human involvement, a payee account based on
the payee information; performing, after identifying the single
payment source and the payee account, an optimization determination
to determine a payment mechanism to use to transfer the funds from
the single payment source to the payee account, the processor using
the first information and payment platform information in the
optimization determination, the optimization determination
performed automatically without human involvement; and effecting
the transmission of funds from the single payment source to the
payee account using the payment mechanism; and wherein the
processor inputs a plurality of selected payment sources, and
performs a determination to determine which one of the selected
payment sources is the single payment source.
43. The system of claim 42, wherein the user device is a cellular
phone.
44. The system of claim 43, wherein the cellular phone is a
network-enabled cellular telephone.
45. The system of claim 43, wherein the cellular phone is a browser
equipped cellular telephone.
46. The system of claim 43, wherein the cellular phone communicates
with the processor utilizing a Wi-Fi based radio frequency
link.
47. The system of claim 43, wherein the cellular phone communicates
with the processor utilizing a cellular phone channel.
48. The system of claim 42, wherein the user device is one selected
from the group consisting of a portable digital assistant, a paging
device, and a set-top box.
49. The system of claim 42, wherein the processor identifying a
single payment source includes the processor inputting the single
payment source from the user device.
50. The system of claim 42, wherein the user device provides for
the user to select the plurality of selected payment sources.
51. The system of claim 42, wherein the user device presents the
user with at least two payment sources, and the user device
interfaces with the user to allow the user to manually choose the
single payment source.
52. The system of claim 42, wherein the at least two payment
sources meet payment schedule data and the user device presents
associated costs of the at least two sources.
53. The system of claim 42, wherein the processor determines from a
set of payment mechanisms a reduced set of payment mechanisms, the
reduced set being a set of payment mechanisms from which the
payment mechanism is selected, the reduced set of payment
mechanisms including at least two payment mechanisms.
54. The system of claim 42, wherein the optimization determination
comprises a calculation of at least one of payee account data,
payment schedule data, payment type data and privacy data.
55. The system of claim 42, wherein the single payment source
comprises at least one of a direct deposit account, a source credit
account, a mortgage account, a securities account, a money market
account, a micro payment account, an overdraft account and a stored
value account.
56. The system of claim 42, wherein the payee account comprises at
least one of a utility account, a mortgage account, a payee credit
account, and a contribution account.
57. The system of claim 42, wherein user device comprises a
graphical user interface directly communicating with the
processor.
58. The system of claim 42, wherein the optimization determination
includes at least one of minimizing a cost variable, fulfilling a
transaction schedule, utilizing a determined affiliation between
the single payment source and the payee account, maximizing
security, maximizing reliability, minimizing risk, fulfilling a
contractual obligation, maximizing volume discounts, aggregating a
transaction amounts, maximizing a transaction amount and maximizing
available bonus awards.
59. The system of claim 42, wherein the optimization determination
includes: the processor performing processing so as to identify an
affiliation between the single payment source and the payee
account; and determining the payment mechanism based on the
identified affiliation.
60. The system of claim 42, wherein the optimization determination
comprises minimizing a cost variable, and the cost variable
comprises at least one of a transaction cost charged to the user
and an internal cost absorbed by a payment enabler, the payment
enabler maintaining the processor.
61. A computer implemented method for managing a transmission of
funds for a payment, comprising: inputting first information from a
cellular phone, the first information including payment source
information and payee information; inputting, from a payment
platform database, payment platform information; and performing
processing based on the first information and the payment platform
information, the processing being performed by a processor, the
processing including: identifying, automatically without human
involvement, a single payment source based on the payment source
information, the single payment source being selected from a
plurality of payment sources, the single payment source being the
source of funds for the transmission of funds; identifying a payee
account based on the payee information; performing, after
identifying the single payment source and the payee account, an
optimization determination to determine a payment mechanism to use
to transfer the funds from the single payment source to the payee
account, the processing including using the first information and
payment platform information in the optimization determination, the
optimization determination performed automatically without human
involvement; and effecting the transmission of funds from the
single payment source to the payee account using the payment
mechanism; and the processor further selecting the single payment
source, from a plurality of payment sources.
62. The computer implemented method of claim 62, wherein the single
payment source comprises one selected from the group consisting of
a checking or other demand deposit account (DDA), money market
fund, securities account, stored value account, credit card
account, currency account, overdraft line of credit, micro payment
account, and line of credit.
63. A system for managing a transmission of funds for a user
effecting a payment, comprising: a user device that interfaces with
a human user to input first information, the first information
including payment source information and payee information; a
payment platform database that includes payment platform
information; and a processor, the processor communicating with the
user device and the payment platform database so as to input the
first information and access select payment platform information,
the processor: identifying a single payment source based on the
payment source information, the single payment source being
selected from a plurality of payment sources, the single payment
source being the source of funds for the transmission of funds;
identifying a payee account based on the payee information;
performing, after identifying the single payment source and the
payee account, a first optimization determination to determine a
payment mechanism to use to transfer the funds from the single
payment source to the payee account, the processor using the first
information and payment platform information in performing the
first optimization determination, the first optimization
determination performed automatically without human involvement;
and effecting the transmission of funds from the single payment
source to the payee account using the payment mechanism; and the
processor identifying a single payment source includes the
processor performing a determination to determine the single
payment source, the processor inputting a plurality of selected
payment sources, and performing the determination to determine
which one of the plurality of selected payment sources is to
constitute the single payment source; the user device providing for
the payment initiator to select the plurality of selected payment
sources; and wherein the first optimization determination includes
at least one selected from the group consisting of minimizing a
cost variable, consideration of risk, and determination of whether
there is an affiliation between the single payment source and the
payee account.
Description
CROSS REFERENCE TO RELATED APPLICATIONS
[0001] The subject matter of this application is related to the
subject matter of provisional application U.S. Ser. No. 60/245,665
filed Nov. 6, 2000, assigned or under obligation of assignment to
the same entity as this application, from which application
priority is claimed, and which application is incorporated by
reference.
FIELD OF THE INVENTION
[0002] The invention relates generally to electronic commerce, and
more particularly to a system and method for selectively scheduling
payment and other transactions such as bill pay from a variety of
sources and according to selectable schedules, while optimizing
those transactions for least cost and other benefits to the payment
enabler, consumer or others.
BACKGROUND OF THE INVENTION
[0003] Electronic commerce, such as personal banking via the
Internet, has become increasingly popular. Many electronic banking
applications enable a user to perform banking related transactions
from home, such as through a personal computer, browser-equipped
cellular phone, electronic wallet (both client side and server
side) or other client device. Using the client device, a user may
manipulate a graphical user interface to transfer funds between
accounts, direct a wire payment to a third party, redeem securities
or perform other transaction functions.
[0004] Electronic banking may however suffer from the drawback that
it is difficult for a user to manipulate and move funds when and
how the person desires. Some systems require a user to access
multiple graphic user interface screens to effectuate the transfer
of money, even from just one source account to just one recipient.
These access requirements, possibly including repeated logins, may
lengthen the process and cause user confusion, thereby discouraging
a user from accessing the service.
[0005] Electronic banking may also suffer the drawback of
defaulting to a payment mechanism which may not be the most
efficient or cost effective manner for achieving various
transactions. For example, some methods for transferring funds may
be more expensive than others. A balance transfer transaction using
a credit card account as a source of payment which is executed at a
cost of, for example, 3% of balance may be more expensive than an
ACH transfer, or transmitting a personal or certified check or
postal or bank money order to satisfy the same credit card or other
bill.
[0006] The host financial institution, acting as the payment
enabler to the transaction, may therefore absorb different internal
costs depending on the payment mechanism chosen by the user, or to
which the transaction defaults. The consumer may in cases see those
differing transaction costs reflected in different fees charged to
them.
[0007] Moreover some financial institutions, from the point of view
of internal operations, consider certain categories of funds
transfer, including the Automated Clearing House (ACH) and wire
transfer, as risky since authenticating the identity of the
customer may be difficult or impossible. However security criteria
may not always be factored into transaction defaults or rules.
Other parameters, such as contractual obligations such as minimums
with different payment providers, possible volume discounts, tiered
rewards thresholds and others may not be taken into account in the
ordinary routing of transactions.
[0008] The consumer, business or other payment initiator for their
part may need to be aware of various payment mechanisms and the
costs associated with each method of delivering payment to
determine the most cost-effective way of transmitting funds,
without assistance from the electronic payment system itself.
[0009] Fulfillment services may therefore be more expensive for
providers and users than necessary, and less expedient or secure
than they could be.
[0010] Further, many financial institutions such as banks, credit
card companies, mortgage companies, securities houses and other
entities contract with a single third party bill payment provider
to have bills presented and paid on their behalf using bill pay
platforms. Typically the Web site or telephone bill pay products
are branded by the provider to represent the financial institution.
In some cases the financial institution maintains the user
interface but in other cases, the bill payment provider provides
the user interface. Examples of bill payment providers include
CheckFree, Spectrum, ePrinceton Telecom, M&I and others.
[0011] In addition, in most cases only one bill payment provider
can be used at one time or by one customer due to a financial
institution's inability to provide a consolidated view of the
various bill payment and transfer methods. Usage of multiple bill
payment services and transfers may cause further confusion for the
customer, and the institution's customer care team.
[0012] An integrated, programmable and optimizing technique for
managing various fund transfers and other transaction, and
providing tracking to the customer and customer service
representative, is not available. Other drawbacks exist.
SUMMARY OF THE INVENTION
[0013] The invention overcoming these and other problems in the art
relates in one regard to a system and method for selectable funding
or adaptable routing of transactions, including electronic and
other transactions, which enables a payment initiator such as a
consumer, business or government entity to select, schedule,
maintain and optimize the timing and technique used to effect
various payments, including to schedule bill payments on time and
at least cost to the payment enabler or payment initiator.
[0014] In one regard, the invention may permit a payment initiator
to transparently enjoy the benefits of optimization, once payment
schedules and other data are input, since the system arranges for
the best available delivery mechanism to satisfy the scheduled
payment obligations automatically. The invention may furthermore
achieve economies for the bank or other participating institution,
since payment sourcing and routing may be optimized at the level of
the payment enabler, as well as for the consumer. The invention in
another regard may increase the range and flexibility of available
funding sources, as well as recipients, using an integrated
mediation engine.
BRIEF DESCRIPTION OF THE DRAWINGS
[0015] FIG. 1 is a schematic representation of a system for
transferring funds according to an embodiment of the invention.
[0016] FIG. 2 is a flowchart illustrating funds processing
according to an embodiment of the invention.
[0017] FIG. 3 illustrates a user interface to schedule and manage
payment transactions according to an embodiment of the
invention.
[0018] FIG. 4 illustrates optimization processing according to an
embodiment of the invention.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS
[0019] As illustrated in FIG. 1, the payment system 100 of the
invention in one regard provide a consumer, business or other
payment initiator with an integrated interface with which to manage
the programmable payment of a number of types of bill and other
payments from diverse sources of funds on an optimized basis.
[0020] For instance, using the payment system 100 of the invention
the payment initiator may schedule electronic, paper or other
payments to, for instance, a mortgage account, a car finance or
lease account, credit card or merchant card accounts, utility
accounts, contribution accounts such as 401(k) or educational or
charitable accounts, or other accounts or recipients through an
integrated and relatively streamlined interface. The invention in
another regard may interface to conventional software packages,
such as personal finance managers (PFMs) or others as a front end,
to increase ease of use for consumers, businesses and other payment
initiators familiar with those tools.
[0021] The payment initiator may schedule those funds transfers
from a variety of source accounts, such as checking or other demand
deposit accounts (DDAs), money market funds, securities accounts,
stored value accounts, other credit card accounts, currency
accounts, overdraft lines of credit, micro payment accounts, lines
or credit or other accounts or facilities which may act as a source
of funds.
[0022] The payment system 100 of the invention in an embodiment
provides a flexible, one-view interface to all of the possible
sources and recipients of one-time or recurring funds transfers.
The payment initiator may therefore view and manage all their
transactions without resorting to multiple platforms or performing
multiple authentications.
[0023] In another regard, the payment system 100 of the invention
may automatically drive transactions from source funds to recipient
accounts using the most efficient transfer mechanism available for
the payment the user has selected. For instance, a payment
initiator may select to have a payment made on a credit card
account by way of a check or other payment or instrument drawn on a
deposit account by a certain day of the month while maintaining
funds availability for the longest possible time.
[0024] The payment system 100 of the invention may then analyze the
costs and delivery timeline for that fund transfer to effectuate
the most optimal available transfer. Factors taken into account to
optimize the transaction may include the identity of the payee as
the funding destination (such as a credit card provider), the
delivery timeline (such as the number of days until the payment
must be made), the funding source (such as a financial institution
providing a direct deposit account), and any third party providers
having a relationship with the funding source, including
identifying those that offer rewards or other benefits accrue
through that channel.
[0025] Other optimization factors or rules may include costs to the
payment initiator and to the bank or other host entity, contractual
or other account minimums, the reliability of the payment channel,
dollar amount (e.g. micropayments or macropayments), any discounts
for quantity of transactions or amounts of transactions, and other
rules-based intelligence. In an embodiment of the invention, the
payment system 100 may also aggregate multiple payment transactions
to increase efficiency, such as for instance aggregating all of one
payment initiator's payments to a single large bank for a month, or
the transactions of multiple customers to realize rewards leverage,
economies of scale or other benefits.
[0026] Other factors accounted for in performing an optimized
calculation include the type or category of payee, payment
thresholds, tiered rewards or other graduated benefits, the type
and nature of any intermediary account used to effect the
transaction, and others. Two or more of a payment source,
intermediary and a payee for instance may be identified as both
belonging to the same association or network, permitting
efficiencies to be realized when remaining within the association
or network. The factors and rules taken into account may be
modified over time to reflect changing market conditions,
refinements to the transaction model and other evolving
criteria.
[0027] As a result, the payment system 100 may determine that the
funding destination, such as a revolving credit account provider,
is a member of a third party association with which the funding
source subscribes or otherwise has access to, such as the
commercially available Spectrum service. As a result, the cost of
the scheduled payment may be reduced by routing the payment through
the common association (such as Spectrum or others) with the payee,
rather than routing the transaction through a default payment
provider outside the association.
[0028] By contrast, the payment system 100 may determine that the
payee account and the funding source, or the host entity itself,
are part of the same organization. In this instance, an internal
transfer may be determined to be the most cost efficient mechanism
for effecting payment, without resort to any external payment
network. Costs may be reduced for both payment initiator and
payment enabler, in that scenario.
[0029] In operation, as illustrated in FIG. 1, consumers,
businesses, government entities and other payment initiators may
use one or more clients 105 to access the payment system 100
through network 102, for instance through multiple connector
providers (CPs) 110 such as Internet service providers (ISPs) or
others.
[0030] According to an embodiment of the invention, the clients 105
may be or include, for instance, a personal computer running
Microsoft Windows.TM. 9.times., Millenium.TM., NT.TM., 2000 or
XP.TM., Windows.TM.CE.TM., MacOS.TM., PalmOS.TM., Unix, Linux,
Solaris.TM., OS/2.TM.. Clients 105 may also be or include a
network-enabled appliance such as a WebTV.TM. radio-enabled
Palm.TM. Pilot or similar unit, a set-top box, a networkable
game-playing console such as Sony Playstation.TM., Sega
Dreamcast.TM. or Microsoft XBox.TM., a browser-equipped or other
network-enabled cellular telephone, an automated teller machine
(ATM), an electronic wallet (client side or server side), or other
TCP/IP client or other device, or a stand-alone Website offering.
Client 105 may yet further be, include or interface to character
recognition platforms or voice recognition platforms or other
channels.
[0031] Network 102 may be, include or interface to any one or more
of, for instance, the Internet, an intranet, a LAN (Local Area
Network), a WAN (Wide Area Network) a digital T1, T3, E1 or E3
line, DSL (Digital Subscriber Line) connection, an Ethernet
connection, an ISDN (Integrated Services Digital Network) line, a
dial-up port such as a V.90, V.34 or V.34bis analog modem
connection, a cable modem, an ATM (Asynchronous Transfer Mode)
connection, or other connection. Network 102 may furthermore be,
include or interface to any one or more of a WAP (Wireless
Application Protocol) link, a GPRS (General Packet Radio Service)
link, a GSM (Global System for Mobile Communication) link, a CDMA
(Code Division Multiple Access) or TDMA (Time Division Multiple
Access) link such as a cellular phone channel, a GPS (Global
Positioning System) link, CDPD (cellular digital packet data), a
RIM (Research in Motion, Limited) duplex paging type device, a
Bluetooth, BlueTeeth or WhiteTooth radio link, or an IEEE 802.11
(Wi-Fi)-based radio frequency link. Network 102 may yet further be,
include or interface to any other wired or wireless, digital or
analog interface or connection.
[0032] Connection provider 110 may be or include a provider that
connects the requesters to the network 102. For example, connection
provider 110 may be or include an interne service provider (ISP), a
virtual private network (VPN), an intranet, a dial-up access device
such as a modem, or other manner of connecting to network 102.
[0033] FIG. 1 illustrates four clients 105 connected to network 102
through two connection providers 110, but it will be understood
that in practice less or significantly more users may be connected
or connectable to payment system 100 than shown in FIG. 1,
including through one or more connection providers 110.
[0034] The payment system 100 may include a processor 112, which
may also have a connection to the network 102. Processor 112 may
communicate with one or more data storage modules 114, discussed in
more detail below.
[0035] Each of clients 105 used by payment initiators to manipulate
payments and accounts may contain a processor module 104, a display
module 108, and a user interface module 106. Each of clients 105
may have at least one user interface module 106 for interacting and
controlling the computer. The user interface module 106 may be,
include or interface to one or more of a keyboard, joystick,
touchpad, mouse, scanner or similar device or combination of
devices. In an embodiment, the display module 108 may be or include
a graphical user interface (GUI) to input data and conduct other
transaction tasks.
[0036] The processor 112 may maintain a connection to the network
102 through transmitter module 118 and receiver module 120.
Transmitter module 118 and receiver module 120 may be or include
conventional devices which enable processor 112 to interact with
network 102. According to an embodiment of the invention,
transmitter module 118 and receiver module 120 may be integral with
processor 112. The connection to network 102 by processor 112 and
clients 105 may be a broadband connection, such as through a T1 or
13 line, a cable connection, a telephone line connection, DSL
connection, or other type connection.
[0037] Processor 112 functions to communicate with clients 105 and
permit clients 105s to interact with each other in connection with
transaction services, messaging services and other services which
may be provided through payment system 100.
[0038] The processor 112 may communicate with a number of data
storage modules 114. Each of data storage module 114s may stores
various information associated with the payment platform, including
administrator data, received instructions, transaction logs or
other files or other information. According to an embodiment of the
invention, each of data storage module 114s may be located on one
or more data storage devices, where the data storage devices are
combined or separate from processor 112. Each of data storage
modules 114 may be, include or interface to, for example, the
Oracle.TM. relational database sold commercially by Oracle Corp.
Other databases, such as Informix.TM., DB2 (Database 2), Sybase.TM.
or other data storage or query formats, platforms or resources such
as OLAP (On Line Analytical Processing), SQL (Standard Query
Language), a storage area network (SAN), Microsoft Access.TM. or
others may also be used, incorporated or accessed in the invention.
Each of data storage modules 114 may be supported by server or
other resources, and may in embodiments include redundancy, such as
a redundant array of independent disks (RAID), for data
protection.
[0039] While a supporting architecture has been described, it will
be understood that other architectures could support the operation
of payment system 100. In general, the payment system 100 is
designed to allow financial and other payment initiators to be able
to pay bills and transfer funds when and where they want, in a
selectable, integrated and optimized manner.
[0040] The payment system 100 of the invention in one regard
permits a financial institution or other payment enabler to
consolidate and aggregate the movement of money via the Internet,
at in-person branch visits, at retail or other kiosks, over the
telephone or other network and provide one view to the payment
initiator. In an embodiment, a view may also be provided to a call
center representative. According to an embodiment of the invention,
the payment initiator may be provided with a cumulative total of
bills paid and transfers made both in and out for a term defined by
the payment initiator (e.g. daily, weekly, monthly, quarterly,
annually). Optimizations may be executed on scheduled transactions
to minimize cost or maximize float, or manage other variables.
[0041] For example, parameters can be established to allow the
payment initiator to automatically pay a bill and/or transfer funds
without further any involvement based on desired payment date,
payment recipient such as a merchant, bank or other account holder,
the dollar amount of the transaction, the source of the transaction
funds, and other variables. By way of example, a payment initiator
may designate that the electricity bill should be paid on the due
date for a given month, to avoid a significant late fee by the
utility or other entity or a surcharge applied by commercial wire
delivery services. Same-day payment may be programmed for other
accounts with timing sensitivity, for instance mortgage payments.
The payments scheduled according to various tiers of timing may, in
embodiments of the invention, be offered to the consumer or other
payment initiator at different levels of costs, depending on
urgency.
[0042] The payment system 100 may also allow the payment initiator
to select a prospective frame in which the payment shall be made.
The time frame may be, for example, besides the same day, the next
day, next week, specified date, an offset from a bill date (e.g. 2
days before due), or other designated payment windows. The payment
system 100 may have an open architecture that supports various
interfaces between a server or Web site and host systems such as
ACH/NACHA, Wire, RPS, OFX or other protocols.
[0043] The ACH network, or automated clearing house, as
administered by the NACHA, may for example provide a payment
initiator with the ability to transfer funds over the ACH network.
Wire transfers, which transfer funds immediately, but at a
significantly greater cost than the ACH network, may also be
designated by a payment initiator. A remittance process system
(RPS) protocol, designed by MasterCard.RTM., an open financial
exchange (OFX) protocol, designed by Intuit, CheckFree, and
Microsoft, may also be used to transfer financial information.
Other protocols may be employed.
[0044] According to an embodiment of the invention, an optimization
function may be used by payment system 100 to optimize the transfer
mechanisms for transferring funds. By way of example, Thursday, a
payment initiator may instruct that her funds be transferred for
bill payment by Friday. The payment system 100 may permit that type
of short turnaround transaction to take place for instance by, in
embodiments, allowing the consumer or other payment initiator to
make use of payment mechanisms not generally available to consumers
and others for rapid transfers, such as wire transfers or ACH
transactions. The payment enabler may assign different service
charges to different urgencies of payment.
[0045] The payment system 100 may determine what method of transfer
will achieve the results requested by the payment initiator, at the
lowest cost to the payment enabler or while satisfying other
criteria for optimal results. Other methods of optimization may
also be used, for instance by utilizing rules based intelligence.
Variables included in the optimization model may include, for
example, classification of the funding mechanism, payee, dollar
amount (for example micro payments, macro payments and others) and
other rules such as time of day; lead time, dollar amount,
contractual minimums, reliability, pricing, detecting and taking
advantage of intra-entity transfers and others. A flowchart of
transaction processing according to an embodiment of the invention
is illustrated in FIG. 2. In step 200, processing of new customers
(not preexisting) begins, at which point the customer, such as a
consumer, a qualified business or other payment initiator may
register for a new account enabled for payment system 100.
Registration may be by in-person registration at a branch or other
facility, Web site, telephone, any of the other network techniques
illustrated in FIG. 1, or otherwise. In step 202, the customer may
undergo a standard screening process, with possible further
screening for the integrated payment services of the invention. The
customer may sign up for one or more services, such as credit card,
DDA, mutual fund, home equity, or others.
[0046] After identification, addressing and other information is
gathered, at step 204 the host bank or other entity may decide
which transfer mechanisms to allow to the customer depending on the
customer's request, the risk the entity perceives and what the
entity assesses the customer actually needs. If approval is
received at step 206, the customer may be directed to an existing
customer flow, such as that described below. If approval is
declined at step 208, then the customer may be provided with a
reduced or modified set of automated features at step 260.
[0047] In step 220, an existing customer of a financial institution
or other host entity who desires access to payment system 100 may
likewise be set up to enjoy an integrated method of accessing
payment vehicles instead of having to deal with a differing
pipelines of instruments. Using a client 105, the customer may
authorize themselves at step 222 to a Web page, VRU, bank teller,
CSR or other channel. The customer may then select the type of
payment and the urgency, date, cost, rewards allocations or other
factors at step 224. For example, a customer may want to pay a
corporate credit card bill from a travel bank account. The payment
initiator may direct and authorize the payment and choose to have
the bill paid the day before the date it is due.
[0048] The payment initiator may permit the payment system 100 to
optimize the routing and timing of that payment. If the payment
initiator chooses to key the payment to a date function to avoid
late fees, the payment system 100 may select the best method that
will assure that funds are presented on time at the least cost,
while also deferring the payment until, for example, 3 days before
hand to increase the float or interest on money in a source
checking account.
[0049] On the other hand, if a payment initiator prefers to program
the payment system to pay bills on the day they are received to
ensure they are satisfied with time to spare, the payment system
100 may generate instructions for prompt payment at the lowest
transaction fee available, benefiting the payment enabler, payment
initiator or both.
[0050] As a further example, if a payment initiator has
procrastinated and is near to a payment due date, they may
authorize an immediate and higher cost payment to ensure payment is
received by any due date, such as a mortgage or credit card due
date. Depending on the my selection of payment type and urgency, in
step 226 the payment system 100 may determines whether additional
authorization is needed to complete the scheduled transaction.
Factors taken into account for approval may include the length of
time that a payment initiator has been with the bank or other host
entity, the number of accounts or assets maintained by the payment
initiator, risk factors such as credit history or NSF history, or
others.
[0051] At this point, the bank or other host entity as payment
enabler may also determine whether the transaction is possible. For
instance, a payment initiator may desire to send a payment for a
child's college tuition. The payment initiator may want to draw
$3000 from a checking account, $4000 from a home equity account,
and sell $3000 from a stock brokerage account to satisfy a $10,000
school payment due. However, if the payment initiator eagerly
pursues bonus point or other benefits, they may want to use a
participating credit card so the points can be used to fly the
college student home over a holiday.
[0052] At 226, the payment system 100 may permit the payment
initiator to register these variables in a stored profile or
otherwise to optimize the tuition payment according to date,
amount, float, bonus points or other rewards or parameters. The
bank or other host entity may determine if the payment initiator
has sufficient available funds at step 228, and may suggest
different solutions to the payments based on the payment
initiator's profile. Once approved, the payment system 100 may
determine the most efficient manner for payment in step 230. In
step 232, the request for transaction approval may be transparently
processed by the payment system 100. While the processing may be
transparent to the payment initiator, the payment system 100 may
provide a GUI tracking display 136 for customer service
representative (CSR) of the bank or other host entity. If there is
a question on how the item was processed, the CSR can pull up the
transaction and see details in an integrated view. At step 234, the
payment system 100 may notify the payment initiator of a completed
or scheduled transfer via a Web page message, e-mail notification,
on a statement mailed to the payment initiator or other
channel.
[0053] In the case of a payment initiator seeking a payment
transaction who may not be a preexisting customer of the bank or
other host entity, in step 260 a person having a separately branded
credit card account may wish to pay a bill on that account using a
check drawn on a third party bank. The payment initiator may
register for access to the payment system 100 with those or other
accounts. In step 262, the host entity may authenticate the offered
accounts to verify that the accounts actually exist. If they do and
the customer is eligible to be set up, the host entity may inform
the payment initiator which payment options he or she is eligible
for to fulfill their desired transaction.
[0054] For instance, the host entity may not allow a non-customer
to execute a wire transaction because once the funds are
transferred, there is no way to reverse the transaction. At step
266, the host entity may therefore request authentication
information to set up the process, as well as optionally offer the
customer accounts with the host entity to increase payment
capabilities. If the payment initiator elects to open an account
with the host entity, processing may proceed to step 206.
[0055] Assuming that the payment initiator wants to access the
payment system 100 with their existing accounts, the available
options may be made to depend on the level of risk the host entity
perceives. At step 268, the payment initiator may for instance
request a transfer of money from their checking account to pay
their credit account. The host entity may validate the funds
availability at step 270. At step 272, the payment system 100 may
determine the most efficient manner to transfer the funds, but
selecting among the reduced set of available payment vehicles. At
step 274, the funds may be moved into an intermediary account, or
pass directly through to the payee. At step 276, the payment
initiator may be notified of the completed payment or scheduled
payment via a Web page message, e-mail, monthly statement, page, or
other channel. An illustrative interface for use by a consumer,
business or other payment initiator is shown in FIG. 3, in which a
GUI 302 is displayed. GUI 302 may include pay-from selector box 304
to identify accounts from which to pay bills, a payee selector box
306 to identity the recipient of the payment, a schedule selector
box 308 to enter or select desired dates, date ranges or date
offsets by which to effectuate payments, and an optimization
selector box 310 with which to select one or more variables by
which the transaction will be optimized including cost, schedule,
rewards and other criteria. Other functions, such as account
registration and other functions, may be provided.
[0056] An optimization process which may be employed according to
an embodiment of the invention is illustrated in FIG. 4. In step
402, a payment request is received. In step 404, a test of the
funding source's affiliations may be made, for instance by running
a query against a corporate database 460. The corporate database
460 may contain information describing various corporate/merchant
hierarchies and interrelationships, for instance indicating that
FirstUSA Bank NA is a wholly owned subsidiary of Bank One Corp.
Other affiliations are possible.
[0057] In step 406, a test may be made of affiliations of the payee
of the transaction, for instance by consulting corporate database
460 or other resources. In either of step 404 and 406, information
regarding the detected affiliations may be stored to memory 462,
such as a relational database, data cache or other resource. In
step 408, a test may be made whether the payment source and payee
indicate a common affiliation, such as a parent/subsidiary or other
relationship.
[0058] In step 410, a test may be made whether the payee
participates in a third party association that may have an effect
on the transaction. This may be done by running a query against an
association database 464 or other resource, for instance storing
all participants in an electronic transaction network such as
Spectrum.TM., ACH or others. In step 412, a set of possible funding
mechanisms to fulfill the transaction may be generated, for
instance indicated all transfer types that will fulfill minimal
scheduling requirements. This may be done by running a query on
funding mechanism database 466, which may include descriptive
fields such as cost, eligibility criteria, time frame, risk level,
security, reliability rating and others.
[0059] In step 414 an optimal funding mechanism under all the
parameters of the transaction may be generated. In so doing, a
business rules database 468 may be consulted, to determine whether
factors such as contractual minimums, volume discounts, micro
payments or other special funds processing, tiered thresholds or
other rules or intelligence may be stored. The business rules may
be modified over time to reflect updated market conditions or
refinements to the processing model. In step 416, the optimal
transaction may be executed. In various other of the steps, data
may be stored to memory 462 as appropriate.
[0060] The foregoing description of the system and method of the
invention is illustrative, and variations in configuration and
implementation will occur to persons skilled in the art. For
instance, while the invention has generally been described in terms
of a processor 116 managing the scheduling and optimization of
transactions over a network 102, in embodiments the processor 116
or other intelligent device may be self-contained, for instance in
a desktop machine, for instance running a so-called fat client.
[0061] In other embodiments, the input interface to the payment
initiator may be by way of a telephone connection, for instance via
a call center facility or a voice response unit (VRU) enabled to
communicate with data storage 114 or other elements. Yet further,
while the invention has generally been described in terms of
scheduled transactions in which the presented bill, payment source
and payee all deal in the same currency, in embodiments currency
conversions may be performed at appropriate stages of the
transaction. Yet further, while the invention has generally been
described in terms of electronic fulfillment of scheduled bills,
check or other hard copy or other types of payment may be optimized
and delivered according to the invention. The scope of the
invention is accordingly intended to be limited only by the
following claims.
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