Value processing network and methods

• US 20040039693A1
• Filed: 06/11/2003
• Published: 02/26/2004
• Est. Priority Date: 06/11/2002
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Abel, Vicki, Swartz, Doug, Nauman, George, Turek, Judy
• Granted Patent: US 8,086,539 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A method of processing a transaction involving at least two parties includes establishing rules that define transaction processing between combinations of a plurality of origination entities and a plurality of destination entities and storing the rules at a storage arrangement associated with a host computer system. The method also includes receiving at the host computer system transaction information relating to the transaction between the two parties. One of the parties is a particular one of the origination entities and one of the parties is a particular one of the destination entities. The transaction information contains at least an identifier from which at least one of the parties may be identified. The method also includes using the transaction information at the host computer system to identify at least one of the parties and consulting the storage arrangement to determine the rules that define transaction processing for the at least one party. The method also includes processing the transaction based, at least in part, on the rules.

Claims

1. A method of processing a transaction involving at least two parties, the method comprising:

establishing rules that define transaction processing between combinations of a plurality of origination entities and a plurality of destination entities;

storing the rules at a storage arrangement associated with a host computer system;

receiving at the host computer system transaction information relating to the transaction between the two parties, wherein one of the parties comprises a particular one of the origination entities and one of the parties comprises a particular one of the destination entities and wherein the transaction information contains at least an identifier from which at least one of the parties may be identified;

at the host computer system, using the transaction information to identify at least one of the parties;

consulting the storage arrangement to determine the rules that define transaction processing for the at least one party; and

processing the transaction based, at least in part, on the rules.

2. The method according to claim 1, wherein the rules define one or more of routing of the transaction, fees associated with the transaction, timing of settlement, method of settlement, aggregation and reporting, dispute resolution, compliance, fraud detection, and risk sharing.

3. The method according to claim 1, wherein the transaction relates to a selection from the group consisting of credit card transaction, retail card transaction, debit card transaction, account withdrawal, money transfer, gift card, negotiable instrument, loyalty or reward points, pre-paid commodities, insurance benefits, cell-phone minutes, stored value card, and discount certificate.

4. The method according to claim 1, wherein receiving transaction information comprises receiving an electronic message or transmission from a transaction processing device.

5. The method according to claim 4, wherein the transaction processing device comprises a selection from the group consisting of an automated teller machine, a merchandise scanner, a point-of-sale device, a data entry device, a Radio Frequency (RF) fob, a point-of-sale computer, a money transfer device, a telephone and a PDA.

6. The method according to claim 1, wherein processing the transaction comprises:

forwarding information representing at least a portion of the transaction to a network or a destination processing system.

7. The method according to claim 6, wherein the network comprises one or more of the Automated Clearing House network, the Federal Reserve network, a branded network, a banking network, an international banking network, a money transfer network, a loyalty network, a health care benefits network, a discount certificate clearinghouse, and the Internet.

8. A system for processing a transaction involving at least two parties, the system comprising:

a host computer system; and

a storage arrangement, wherein the storage arrangement is configured to store rules that define transaction processing between combinations of a plurality of origination entities and a plurality of settlement entities;

wherein the host computer is programmed to;

receive transaction information relating to the transaction between the two parties, wherein one of the parties comprises a particular one of the origination entities and one of the parties comprises a particular one of the destination entities and wherein the transaction information contains at least an identifier from which at least one of the parties may be identified;

use the transaction information to identify at least one of the parties;

consult the storage arrangement to determine the rules that define transaction processing for the at least one party; and

cause the transaction to be processed based, at least in part, on the rules.

9. The system according to claim 8, wherein, in receiving transaction information, the host computer system is further programmed to receive an electronic message or transmission from a transaction initiation device.

10. The system according to claim 9, wherein the transaction initiation device comprises a selection from the group consisting of an automated teller machine, a merchandise scanner, a point-of-sale device, a point-of-sale computer, a data entry device, a Radio Frequency (RF) fob, a money transfer device, a telephone and a PDA.

11. The system according to claim 8, wherein, in causing the transaction to be processed, the host computer system is further programmed to forward information representing at least a portion of the transaction to a destination computer processing system.

12. The system according to claim 11, wherein the destination computer processing system comprises one or more of the Automated Clearing House network, the Federal Reserve network, a branded network, a banking network, a money transfer network, an international banking network, a loyalty network, a health care benefits network, a discount certificate clearinghouse, and the Internet.

13. A network for processing transactions, comprising:

means for receiving transaction information from a transaction initiation device, wherein the transaction information relates to a transaction involving at least two parties, an origination entity and a destination entity, wherein the parties have a pre-established relationship embodied in transaction processing rules, wherein the transaction information comprises at least an identifier for determining at least one party to the transaction;

means for determining the rules relating to the transaction; and

means for processing, at least in part, the transaction.

14. A method of processing a transaction involving two parties, an origination entity and a destination entity, wherein the parties have a pre-established relationship embodied in rules relating to the relationship, the method comprising:

receiving transaction information relating to the transaction;

identifying the origination entity and the destination entity at least in part from the transaction information;

consulting the rules to determine how the transaction should be processed; and

processing the transaction based at least in part on the rules.

15. The method of claim 14, wherein the destination entity comprises a selection from the group consisting of issuing financial institution, money transfer service provider, telephone company, airline, loyalty or rewards provider, manufacturer, insurance company, and retailer bank.

16. The method of claim 14, wherein the transaction involves value, and wherein the value is represented by a selection from the group consisting of bank card account number, credit card account number, discount certificate, bank account number, debit card account number, stored value account number, insurance coverage identifier, money transfer identifier, loyalty account identifier, telephone account number, airline ticket PNR identifier, and gift card identifier.

17. The method of claim 16, wherein the value comprises a selection from the group consisting of money, credits, loyalty points, minutes, miles, and insurance benefits.

18. The method of claim 14, further comprising:

receiving additional rules from a second destination entity; and

processing a second transaction according to the additional rules.

19. The method of claim 14, further comprising identifying processing rules relating to the destination entity.

20. The method of claim 19, wherein identifying processing rules comprises consulting a table having rules information relating to a plurality of destination entities.

21. The method of claim 14, wherein processing the transaction comprises aggregating a plurality of transactions having a common destination entity and sending a request for reimbursement to the destination entity.

22. The method of claim 14, wherein processing the transaction comprises aggregating a plurality of transactions having a common origination entity and sending a reimbursement to the origination entity.

23. A system for processing a value transaction between an origination entity and a destination entity, the system comprising:

an input transaction handler that determines a transaction type and accesses an appropriate format and data and transaction validation according to a ruleset obtained from a rules service based on the origination entity;

a routing service that identifies the destination entity using rules for the particular transaction type;

a fee calculation service that determines a fee to apply and any calculations to perform based on rules identified by a relationship between the origination entity and the destination entity and performs the calculations and attaches fee information to the transaction; and

an output transaction handler that formats, validates, and sends the transaction based on rules determined by the identity of the destination entity.

24. The system of claim 23, further comprising:

a transaction aggregation service that uses rules to determine how the origination entity and the destination entity require transaction information to be combined for their businesses, which includes both transaction grouping and transaction summarization.

25. The system of claim 24, further comprising a reconciliation service that uses information from the transaction aggregation service to balance multiple transactions according to rules for the transaction types.

26. The system of claim 25, further comprising a funds movement service that generates instructions based upon the rules defined by origination and destination entities for an actual value-exchange represented by a particular group of transactions.