Systems and methods for use in routing funds, associated with transactions, to direct-pay accounts

• US 10,685,342 B2
• Filed: 12/03/2015
• Issued: 06/16/2020
• Est. Priority Date: 12/03/2015
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Chauhan, Rohit
• Primary Examiner(s): Kalinowski, Alexander G
• Assistant Examiner(s): Bunker, William B.
• Application Number:
  US14/958,285
• Publication Number:
  US 20170161715A1
• Time in Patent Office: 1,657 Days
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"

Abstract

Systems and methods are provided for rerouting funds, associated with transactions between consumers and merchants, to direct-pay accounts associated with creditors that provide loan and/or credit arrangements to the merchants. One exemplary method generally includes identifying, by a computing device, funds directed to a primary payment account associated with a merchant during settlement of at least one transaction for which funds are directed to the merchant. The computing device then routes a first portion of the funds to a direct-pay account associated with a creditor of the merchant, whereby the first portion of the funds is delivered to the direct-pay account in service of a debt between the creditor and the merchant, without the first portion of the funds being appended to the primary account associated with the merchant. The computing device then also routes a second portion of the funds to the primary account associated with the merchant.

Claims

1. A computer-implemented method for use in apportioning funds directed to merchants based on purchase transactions to payment accounts associated with merchants, the method comprising:

storing, by at least one computing device of a payment network, a direct-pay rule for a merchant in a data structure in a memory, the direct-pay rule including a merchant identifier for the merchant and defining an apportionment of network-based funds, payable to the merchant, between a payment account of the merchant and a direct-pay account of a creditor, the payment network coupled between an issuer and an acquirer associated with the merchant;

identifying, by the at least one computing device, in a first clearing record from the acquirer, a network-based fund transfer directed, via the payment network, to the payment account of the merchant during clearing and settlement of one or more transactions, the one or more transactions included in the first clearing record and directing funds to the payment account of the merchant, the network-based fund transfer identified based on the merchant identifier for the merchant embedded in the first clearing record;

interrupting, by the at least one computing device, the network-based fund transfer and apportioning funds of the network-based fund transfer into a first portion and a second portion based on the apportionment defined by the direct-pay rule, prior to deposit of the funds into the payment account of the merchant;

modifying a second clearing record associated with the creditor to include the first portion of the funds;

embedding an identifier in the second clearing record regarding one or more of;

a relationship between the merchant and the creditor, a total payment to be made by the merchant to the creditor, a month-to-date amount paid by the merchant to the creditor, a life-to-date amount paid by the merchant to the creditor, or a total remaining balance of a debt associated with the direct-pay rule;

routing, by the at least one computing device, the first portion of the funds to the direct-pay account associated with the creditor consistent with the modified second clearing record, whereby the first portion of the funds is delivered to the direct-pay account in service of a debt between the creditor and the merchant, without the first portion of the funds being deposited to the payment account of the merchant;

modifying the first clearing record from the acquirer associated with the merchant to include the second portion of the funds;

routing, by the at least one computing device, the second portion of the funds to the payment account of the merchant consistent with the modified first clearing record, thereby completing the network-based fund transfer; and

transmitting, by the at least one computing device, based on the embedded identifier in the second clearing record, one or more apportionment records to at least one of the merchant, the acquirer, or the creditor.

2. The computer-implemented method of claim 1, wherein the creditor includes a creditor merchant;

and

wherein modifying the second clearing record associated with the creditor includes modifying the second clearing record from an acquirer associated with the creditor merchant to include the first portion of the funds, the acquirer associated with the creditor merchant different than the acquirer associated with the merchant.

3. The computer-implemented method of claim 1, wherein the payment account of the merchant is issued by the acquirer, and the direct-pay account is issued by a banking institution different than the acquirer.

4. The computer-implemented method of claim 1, wherein the first portion is less than 20% of the funds.

5. The computer-implemented method of claim 1, further comprising:

receiving a request for reversal of one of the one or more transactions, after routing the first and second portions of the funds;

debiting, by the at least one computing device, the first portion of the funds from the payment account;

debiting, by the at least one computing device, the second portion of the funds from the direct-pay account; and

routing the funds to an account associated with a consumer involved in said one of the one or more transactions.

6. The computer-implement method of claim 1, wherein apportioning the funds of the network-based fund transfer further includes apportioning the funds of the network-based fund transfer into a third portion;

and

further comprising routing the third portion of the funds to a fee account associated with the payment network, the third portion of the funds including a fee associated with routing the first portion of the funds to the direct-pay account of the creditor.

7. The computer-implemented method of claim 1, wherein routing the first portion and routing the second portion of the funds includes routing the first portion and routing the second portion in connection with settlement of the one or more transactions.

13. The computer-implemented method of claim 1, wherein the merchant identifier includes a number for the payment of the merchant.

8. A system for use in processing transactions to payment accounts, the system comprising:

a memory including a data structure, the data structure including a direct-pay rule, the direct-pay rule defining an apportionment of network-based funds to a merchant between a payment account of the merchant and a direct-pay account of a creditor, the direct-pay rule including a merchant identifier for the merchant; and

at least one computing device of a payment network coupled between one or more issuers and an acquirer associated with the merchant, the at least one computing device configured to;

identify a network-based fund transfer in a first clearing record, via the payment network, from the acquirer, to the payment account of the merchant during clearing and settlement of one or more transactions included in the first clearing record, the one or more transactions directing funds to the payment account of the merchant, the network-based fund transfer identified based on the merchant identifier for the merchant embedded in the first clearing record;

interrupt the network-based fund transfer;

apportion the funds of the network-based fund transfer between at least the creditor and the merchant, based on the apportionment defined in the direct-pay rule in the data structure, the apportionment defining at least one of a percentage or a minimal threshold for apportioning the funds;

modify the first clearing record associated with the payment account of the merchant based on the apportioned funds;

route the funds apportioned to the merchant to the payment account of the merchant consistent with the modified first clearing record;

modify a second clearing record associated with the direct-pay account of the creditor, based on the apportioned funds;

embed an identifier in the second clearing record associated with the direct-pay account regarding one or more of;

a relationship between the merchant and the creditor, a total payment to be made by the merchant to the creditor, a month-to-date amount paid by the merchant to the creditor, a life-to-date amount paid by the merchant to the creditor, or a total remaining balance of a debt between the merchant and the creditor;

route the funds apportioned to the creditor to the direct-pay account of the creditor consistent with the modified second clearing record, whereby the funds apportioned to the creditor are delivered to the direct-pay account in service of a debt between the creditor and the merchant, without the funds apportioned to the creditor being deposited to the payment account of the merchant; and

transmit, based on the embedded identifier in the second clearing record, one or more apportionment records to at least one of the merchant, the acquirer, or the creditor.

9. The system of claim 8, wherein the at least one computing device is further configured to debit at least a portion of the apportioned funds from the direct-pay account, when one of the one or more transactions underlying the network-based fund transfer is reversed between a consumer and the merchant.

10. The system of claim 8, wherein modifying the first clearing record associated with the payment account of the merchant includes modifying a batch file received from the acquirer associated with the merchant.

11. The system of claim 8, wherein the merchant identifier includes a account number associated with the account.

12. The system of claim 8, wherein the creditor includes a creditor merchant.

14. A non-transitory computer-readable storage medium including executable instructions for apportioning funds directed to merchants based on purchase transactions to payment accounts associated with merchants, which when executed by at least one processor, cause the at least one processor to:

store a direct-pay rule in a data structure of a payment network, the direct-pay rule including a merchant identifier associated with a merchant and defining an apportionment of network-based funds payable to the merchant between a payment account of the merchant and a direct-pay account of a creditor, the payment network coupled between an issuer and an acquirer associated with the merchant;

identify, in a first clearing record from the acquirer, a network-based fund transfer directed, via the payment network, to the payment account of the merchant during clearing and settlement of one or more transactions directing funds to the payment account of the merchant, the network-based fund transfer identified based on the merchant identifier for the merchant embedded in the first clearing record;

interrupt the network-based fund transfer;

apportion funds of the network-based fund transfer into a first portion and a second portion based on the apportionment defined by the direct-pay rule, prior to deposit of the funds into the payment account of the merchant;

modify a second clearing record associated with the creditor to include the first portion of the funds;

embed an identifier in the second clearing record regarding one or more of;

a relationship between the merchant and the creditor, a total payment to be made by the merchant to the creditor, a month-to-date amount paid by the merchant to the creditor, a life-to-date amount paid by the merchant to the creditor, or a total remaining balance of a debt associated with the direct-pay rule;

route the first portion of the funds to the direct-pay account associated with the creditor consistent with the modified second clearing record, whereby the first portion of the funds is delivered to the direct-pay account in service of a debt between the creditor and the merchant, without the first portion of the funds being deposited to the payment account of the merchant;

modify the first clearing record from the acquirer associated with the merchant to include the second portion of the funds;

route the second portion of the funds to the payment account of the merchant consistent with the modified first clearing record, thereby completing the network-based fund transfer; and

transmit, based on the embedded identifier in the second clearing record, one or more apportionment records to at least one of the merchant, the acquirer, or the creditor.

15. The non-transitory computer-readable storage medium of claim 14, wherein the executable instructions, when executed by the at least one processor, cause the at least one processor to apportion the funds of the network-based fund transfer further into a third portion and to route the third portion of the funds to a fee account, the third portion of the funds including a fee associated with routing the first portion of the funds to the direct-pay account.

16. The non-transitory computer-readable storage medium of claim 14, wherein the apportionment defined by the direct-pay rule includes at least one apportionment parameter, and wherein the at least one apportionment parameter defines a percentage of the funds of the network-based fund transfer.