System and method for transferring funds

• US 10,395,223 B2
• Filed: 03/01/2013
• Issued: 08/27/2019
• Est. Priority Date: 03/07/2012
• Status: Active Grant

• Current Assignee: Early Warning Services, LLC (Bank of America Corp.)
• Original Assignee: Early Warning Services, LLC (Bank of America Corp.)
• Inventors: Muthu, Sri Saravana, Feldman, John G., Pigg, Esther, Cornman, Jeffrey, McMillian, Alfonso
• Primary Examiner(s): Rankins, William E
• Application Number:
  US13/782,587
• Publication Number:
  US 20130238492A1
• Time in Patent Office: 2,370 Days
• Field of Search: 705 35, 705 44
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules

Abstract

A method for facilitating transfer of funds from a sender to a recipient, the method comprising: receiving a funds transfer request from the sender having a first account at a first financial institution, determining that the recipient is not registered with the payment network, transmitting an invitation to the recipient to join the payment network, receiving the token from the recipient in response to the invitation, collecting identifying information from the recipient including information, including an account number, regarding the second account, creating a first record for the recipient in a database of registered users, and creating a second record for the recipient in an out-of-network database, the second record including the account number for the second account.

Claims

1. A method comprising:

receiving a first funds transfer request from a first sender through a computer network, the first funds transfer request to facilitate a transfer of first funds to a recipient, the first funds being transferred using an automatic clearing house (ACH) network from an account of the first sender at a first financial institution to an account of the recipient at a second financial institution, the first funds transfer request including a token for the recipient but not including an account number of the account of the recipient at the second financial institution, the token for the recipient comprising at least one of an email address of the recipient or a phone number of the recipient, the first financial institution being a registered financial institution member of a computer-implemented funds transfer payment network, and the second financial institution not being a registered financial institution member of the computer-implemented funds transfer payment network;

determining that the recipient is not a registered user of the computer-implemented funds transfer payment network;

automatically transmitting an invitation to the recipient to join the computer-implemented funds transfer payment network, the invitation being directed to the recipient using the token for the recipient from the first funds transfer request by sending the invitation to at least one of the email address of the recipient or the phone number of the recipient, and the invitation being automatically generated;

receiving a response to the invitation from the recipient, the response including an indication that the recipient would like to be a registered user of the computer-implemented funds transfer payment network;

collecting, from the response, identifying information that identifies the recipient, the identifying information including the account number of the account of the recipient at the second financial institution;

creating a record for the recipient in a database of registered users contained in the computer-implemented funds transfer payment network, the record including the token for the recipient, and at least some of the identifying information, and the record including the account number of the account of the recipient at the second financial institution;

sending a message to the first financial institution indicating that the recipient is newly registered; and

based upon receiving a request from the first financial institution in response to the message;

encrypting the account number of the account of the recipient to generate an encrypted account number; and

providing the encrypted account number of the account of the recipient to the first financial institution to enable the first financial institution to initiate the transfer of the first funds from the account of the first sender to the account of the recipient in a single ACH transfer from the first financial institution to the second financial institution using the ACH network, wherein the account number of the account of the recipient is not shared with the first sender, and the encrypted account number of the account of the recipient is not shared with the first sender,

wherein;

creating the record for the recipient is conditioned upon a pending payment from the first sender that was initiated by the first sender using the token for the recipient.

2. The method of claim 1, further comprising sending a notification to the first sender regarding a status of the transfer of the first funds.

3. The method of claim 1, further comprising gaining approval of the recipient to receive other funds transfer requests from other members of the computer-implemented funds transfer payment network as a condition for registering with the computer-implemented funds transfer payment network.

4. The method of claim 3, further comprising allowing any of the other members of the computer-implemented funds transfer payment network to contact the recipient using the token for the recipient after approval of the recipient is received.

5. The method of claim 1, wherein the token for the recipient is the email address of the recipient.

6. The method of claim 1, further comprising:

receiving a second funds transfer request from a second sender to the recipient, the second funds transfer request to facilitate transfer of second funds, the second funds being transferred using the ACH network from an account of the second sender at a third financial institution to the account of the recipient at the second financial institution, and the second funds transfer request including the token for the recipient but not including the account number or the encrypted account number of the account of the recipient;

determining that the recipient is a registered user with the computer-implemented funds transfer payment network based on the record;

providing the account number or the encrypted account number of the account of the recipient from the record to the third financial institution to enable the third financial institution to initiate transfer of the second funds from the account of the second sender to the account of the recipient using the ACH network.

7. The method of claim 1, further comprising:

receiving a second funds transfer request from the recipient, the second funds transfer request to facilitate transfer of second funds to a transferee, the second funds being transferred using the ACH network from the account of the recipient at the second financial institution to an account of the transferee at a third financial institution, and the second funds transfer request including a token for the transferee;

determining that the recipient is registered with the computer-implemented funds transfer payment network;

determining that the third financial institution is a registered financial institution member of the computer-implemented funds transfer payment network;

accessing the record; and

providing the encrypted account number of the account of the recipient to the third financial institution to enable the third financial institution to debit the second funds from the account of the recipient using the ACH network, wherein the account number of the account of the recipient is not shared with the transferee, and the encrypted account number of the account of the recipient is not shared with the transferee.

8. The method of claim 1, wherein the response to the invitation from the recipient further includes a routing number of the second financial institution and wherein the method further comprises providing the routing number to the first financial institution to enable the first financial institution to initiate the transfer of the first funds from the account of the first sender to the account of the recipient using the ACH network.

9. The method of claim 8, further comprising verifying the routing number before providing the routing number to the first financial institution.

10. The method of claim 1, wherein the recipient is checked against an identity database before providing the encrypted account number of the account of the recipient to the first financial institution.

11. A method comprising:

providing, before receiving a first funds transfer request, a first list of potential recipients to a first instance of an interface to be displayed to a first sender, each potential recipient of the first list of potential recipients being registered users of a computer-implemented funds transfer payment network, wherein a recipient is not identified in the first list of potential recipients and the first funds transfer request is provided using the first instance of the interface;

receiving the first funds transfer request from the first sender through a computer network, the first funds transfer request to facilitate a transfer of first funds to the recipient, the first funds being transferred using an automatic clearing house (ACH) network from an account of the first sender at a first financial institution to an account of the recipient at a second financial institution, the first funds transfer request including a token for the recipient but not including an account number of the account of the recipient at the second financial institution, the token for the recipient comprising at least one of an email address of the recipient or a phone number of the recipient, the first financial institution being a registered financial institution member of the computer-implemented funds transfer payment network, and the second financial institution not being a registered financial institution member of the computer-implemented funds transfer payment network;

determining that the recipient is not a registered user of the computer-implemented funds transfer payment network;

automatically transmitting an invitation to the recipient to join the computer-implemented funds transfer payment network, the invitation being directed to the recipient using the token for the recipient from the first funds transfer request by sending the invitation to at least one of the email address of the recipient or the phone number of the recipient, and the invitation being automatically generated;

receiving a response to the invitation from the recipient, the response including an indication that the recipient would like to be a registered user of the computer-implemented funds transfer payment network;

collecting, from the response, identifying information that identifies the recipient, the identifying information including the account number of the account of the recipient at the second financial institution;

creating a record for the recipient in a database of registered users contained in the computer-implemented funds transfer payment network, the record including the token for the recipient and at least some of the identifying information, and the record including the account number of the account of the recipient at the second financial institution;

encrypting the account number of the account of the recipient to generate an encrypted account number;

providing the encrypted account number of the account of the recipient to the first financial institution to enable the first financial institution to initiate the transfer of the first funds from the account of the first sender to the account of the recipient in a single ACH transfer from the first financial institution to the second financial institution using the ACH network, wherein the account number of the account of the recipient is not shared with the first sender, and the encrypted account number of the account of the recipient is not shared with the first sender; and

providing, before receiving a second funds transfer request from a second sender to the recipient, a second list of potential recipients to a second instance of the interface to be displayed to the second sender, each potential recipient of the second list of potential recipients being registered users of the computer-implemented funds transfer payment network, wherein the recipient is identified in the second list of potential recipients and the second funds transfer request is provided using the second instance of the interface,

wherein;

creating the record for the recipient is conditioned upon a pending payment from the first sender that was initiated by the first sender using the token for the recipient.

12. A system comprising:

a processor;

network interface logic configured to control the processor to;

receive a first funds transfer request from a first sender through a computer network, the first funds transfer request to facilitate a transfer of first funds to a recipient, the first funds being transferred using an automatic clearing house (ACH) network from an account of the first sender at a first financial institution to an account of the recipient at a second financial institution, the first funds transfer request including a token for the recipient but not including an account number of the account of the recipient at the second financial institution, the token for the recipient comprising at least one of an email address of the recipient or a phone number of the recipient, the first financial institution being a registered financial institution member of a computer-implemented funds transfer payment network, and the second financial institution not being a registered financial institution member of the computer-implemented funds transfer payment network;

determine that the recipient is not a registered user of the computer-implemented funds transfer payment network;

automatically transmit an invitation to the recipient to join the computer-implemented funds transfer payment network, the invitation being directed to the recipient using the token for the recipient from the first funds transfer request by sending the invitation to at least one of the email address of the recipient or the phone number of the recipient, and the invitation being automatically generated;

receive a response to the invitation from the recipient, the response including an indication that the recipient would like to be a registered user of the computer-implemented funds transfer payment network;

collect, from the response, identifying information that identifies the recipient, the identifying information including the account number of the account of the recipient at the second financial institution;

create a record for the recipient in a database of registered users contained in the computer-implemented funds transfer payment network, the record including the token for the recipient and at least some of the identifying information, and the record including the account number of the account of the recipient at the second financial institution;

send a message to the first financial institution indicating that the recipient is newly registered; and

based upon receiving a request from the first financial institution in response to the message;

encrypting the account number of the account of the recipient to generate an encrypted account number; and

provide the encrypted account number of the account of the recipient to the first financial institution to enable the first financial institution to initiate the transfer of the first funds from the account of the first sender to the account of the recipient in a single ACH transfer from the first financial institution to the second financial institution using the ACH network, wherein the account number of the account of the recipient is not shared with the first sender, and the encrypted account number of the account of the recipient is not shared with the first sender; and

an information directory configured to store information associated with the record,

wherein;

creating the record for the recipient is conditioned upon a pending payment from the first sender that was initiated by the first sender using the token for the recipient.

13. A nontransitory computer readable medium comprising instructions executable by a processor, the instructions being executable to perform a method, the method comprising:

receiving a first funds transfer request from a first sender through a computer network, the first funds transfer request to facilitate a transfer of first funds to a recipient, the first funds being transferred using an automatic clearing house (ACH) network from an account of the first sender at a first financial institution to an account of the recipient at a second financial institution, the first funds transfer request including a token for the recipient but not including an account number of the account of the recipient at the second financial institution, the token for the recipient comprising at least one of an email address of the recipient or a phone number of the recipient, the first financial institution being a registered financial institution member of a computer-implemented funds transfer payment network, and the second financial institution not being a registered financial institution member of the computer-implemented funds transfer payment network;

determining that the recipient is not a registered user of the computer-implemented funds transfer payment network;

automatically transmitting an invitation to the recipient to join the computer-implemented funds transfer payment network, the invitation being directed to the recipient using the token for the recipient from the first funds transfer request by sending the invitation to at least one of the email address of the recipient or the phone number of the recipient, and the invitation being automatically generated;

receiving a response to the invitation from the recipient, the response including an indication that the recipient would like to be a registered user of the computer-implemented funds transfer payment network;

collecting, from the response, identifying information that identifies the recipient, the identifying information including the account number of the account of the recipient at the second financial institution;

creating a record for the recipient in a database of registered users contained in the computer-implemented funds transfer payment network, the record including the token for the recipient and at least some of the identifying information, and the record including the account number of the account of the recipient at the second financial institution;

sending a message to the first financial institution indicating that the recipient is newly registered; and

based upon receiving a request from the first financial institution in response to the message;

encrypting the account number of the account of the recipient to generate an encrypted account number; and

providing the encrypted account number of the account of the recipient to the first financial institution to enable the first financial institution to initiate the transfer of the first funds from the account of the first sender to the account of the recipient in a single ACH transfer from the first financial institution to the second financial institution using the ACH network, wherein the account number of the account of the recipient is not shared with the first sender, and the encrypted account number of the account of the recipient is not shared with the first sender,

wherein;

creating the record for the recipient is conditioned upon a pending payment from the first sender that was initiated by the first sender using the token for the recipient.

14. A system comprising:

a processor;

network interface logic configured to control the processor to;

provide, before receiving a first funds transfer request, a first list of potential recipients to a first instance of an interface to be displayed to a first sender, each potential recipient of the first list of potential recipients being registered users of a computer-implemented funds transfer payment network, wherein a recipient is not identified in the first list of potential recipients and the first funds transfer request is provided using the first instance of the interface;

receive the first funds transfer request from the first sender through a computer network, the first funds transfer request to facilitate a transfer of first funds to the recipient, the first funds being transferred using an automatic clearing house (ACH) network from an account of the first sender at a first financial institution to an account of the recipient at a second financial institution, the first funds transfer request including a token for the recipient but not including an account number of the account of the recipient at the second financial institution, the token for the recipient comprising at least one of an email address of the recipient or a phone number of the recipient, the first financial institution being a registered financial institution member of the computer-implemented funds transfer payment network, and the second financial institution not being a registered financial institution member of the computer-implemented funds transfer payment network;

determine that the recipient is not a registered user of the computer-implemented funds transfer payment network;

automatically transmit an invitation to the recipient to join the computer-implemented funds transfer payment network, the invitation being directed to the recipient using the token for the recipient from the first funds transfer request by sending the invitation to at least one of the email address of the recipient or the phone number of the recipient, and the invitation being automatically generated;

receive a response to the invitation from the recipient, the response including an indication that the recipient would like to be a registered user of the computer-implemented funds transfer payment network;

collect, from the response, identifying information that identifies the recipient, the identifying information including the account number of the account of the recipient at the second financial institution;

create a record for the recipient in a database of registered users contained in the computer-implemented funds transfer payment network, the record including the token for the recipient and at least some of the identifying information, and the record including the account number of the account of the recipient at the second financial institution;

encrypting the account number of the account of the recipient to generate an encrypted account number;

provide the encrypted account number of the account of the recipient to the first financial institution to enable the first financial institution to initiate the transfer of the first funds from the account of the first sender to the account of the recipient in a single ACH transfer from the first financial institution to the second financial institution using the ACH network, wherein the account number of the account of the recipient is not shared with the first sender, and the encrypted account number of the account of the recipient is not shared with the first sender; and

provide, before receiving a second funds transfer request from a second sender to the recipient, a second list of potential recipients to a second instance of the interface to be displayed to the second sender, each potential recipient of the second list of potential recipients being registered users of the computer-implemented funds transfer payment network, wherein the recipient is identified in the second list of potential recipients and the second funds transfer request is provided using the second instance of the interface; and

an information directory configured to store information associated with the record,

wherein;

creating the record for the recipient is conditioned upon a pending payment from the first sender that was initiated by the first sender using the token for the recipient.

15. A nontransitory computer readable medium comprising instructions executable by a processor, the instructions being executable to perform a method, the method comprising:

providing, before receiving a first funds transfer request, a first list of potential recipients to a first instance of an interface to be displayed to a first sender, each potential recipient of the first list of potential recipients being registered users of a computer-implemented funds transfer payment network, wherein a recipient is not identified in the first list of potential recipients and the first funds transfer request is provided using the first instance of the interface;

receiving the first funds transfer request from the first sender through a computer network, the first funds transfer request to facilitate a transfer of first funds to the recipient, the first funds being transferred using an automatic clearing house (ACH) network from an account of the first sender at a first financial institution to an account of the recipient at a second financial institution, the first funds transfer request including a token for the recipient but not including an account number of the account of the recipient at the second financial institution, the token for the recipient comprising at least one of an email address of the recipient or a phone number of the recipient, the first financial institution being a registered financial institution member of the computer-implemented funds transfer payment network, and the second financial institution not being a registered financial institution member of the computer-implemented funds transfer payment network;

determining that the recipient is not a registered user of the computer-implemented funds transfer payment network;

automatically transmitting an invitation to the recipient to join the computer-implemented funds transfer payment network, the invitation being directed to the recipient using the token for the recipient from the first funds transfer request by sending the invitation to at least one of the email address of the recipient or the phone number of the recipient, and the invitation being automatically generated;

receiving a response to the invitation from the recipient, the response including an indication that the recipient would like to be a registered user of the computer-implemented funds transfer payment network;

collecting, from the response, identifying information that identifies the recipient, the identifying information including the account number of the account of the recipient at the second financial institution;

creating a record for the recipient in a database of registered users contained in the computer-implemented funds transfer payment network, the record including the token for the recipient and at least some of the identifying information, and the record including the account number of the account of the recipient at the second financial institution;

encrypting the account number of the account of the recipient to generate an encrypted account number;

providing the encrypted account number of the account of the recipient to the first financial institution to enable the first financial institution to initiate the transfer of the first funds from the account of the first sender to the account of the recipient in a single ACH transfer from the first financial institution to the second financial institution using the ACH network, wherein the account number of the account of the recipient is not shared with the first sender, and the encrypted account number of the account of the recipient is not shared with the first sender; and

providing, before receiving a second funds transfer request from a second sender to the recipient, a second list of potential recipients to a second instance of the interface to be displayed to the second sender, each potential recipient of the second list of potential recipients being registered users of the computer-implemented funds transfer payment network, wherein the recipient is identified in the second list of potential recipients and the second funds transfer request is provided using the second instance of the interface,

wherein;

creating the record for the recipient is conditioned upon a pending payment from the first sender that was initiated by the first sender using the token for the recipient.