Funds collection tools and techniques

• US 20060095350A1
• Filed: 10/28/2005
• Published: 05/04/2006
• Est. Priority Date: 11/02/2004
• Status: Active Grant

• Current Assignee: John W.L. Ogilvie
• Original Assignee: John W.L. Ogilvie
• Inventors: Ogilvie, John W., Hall, Josh
• Granted Patent: US 8,719,126 B2
• Time in Patent Office: Days
• US Class Current: 705/30
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 40/123 Tax preparation or submission

Abstract

Tax collection tools and techniques automatically and electronically separate tax amounts from other funds in a commercial transaction, and divert the collected tax into a holding fund. The holding fund bears income, at little or no risk. Funds collected are tracked, as are their payment due dates, and tax payments are made automatically from the holding fund to tax authorities in a timely manner on behalf of merchants. Income from the holding fund may be distributed among various parties. Collection of debt, whether taxes or otherwise, through automatic incremental billing is also described.

Claims

1. A tax collection system, comprising:

a merchant purchasing component; and

an accounting module;

wherein the merchant purchasing component is configured to receive at least purchase price information concerning a consumer purchase from a merchant during a transaction, and the accounting module is configured to determine a sales tax amount based at least in part on the purchase price information, and

wherein the system automatically and electronically separates the sales tax amount from a corresponding taxable amount in the transaction, thereby facilitating automatic sales tax collections without needing manual intervention by a merchant.

2. The tax collection system of claim 1, wherein the accounting module resides at least in part in at least one of:

a register at a physical point of sale, a device having a card reader at a physical point of sale, an internet payment gateway.

3. The tax collection system of claim 1, further comprising a holding fund holding the determined sales tax amount in trust for subsequent payment to a tax collection authority on behalf of the merchant.

4. The tax collection system of claim 1, comprising software and hardware means for automatic credit card tax collecting and automatic electronic tax payment by facilitating a method which includes a third party receiving a purchase amount charge request from a merchant, performing a separating function that separates the purchase amount from a sales tax amount, passing along the purchase amount to a merchant credit card processor, receiving a corresponding tax amount from the merchant, charging the total of the tax amount to a credit card account, placing the resulting tax received in an interest-bearing account, paying a tax authority the tax amount on behalf of the merchant who collected the sales tax, and profiting from the interest on taxes collected but not yet paid to the tax authority.

5. A method of tax collection and payment to be performed by at least part of a group of cooperating contracting entities, comprising the computer-assisted steps of:

relying on a result of electronically and automatically separating a taxable amount from a corresponding tax amount for a merchant in connection with a commercial transaction;

relying on directing funds corresponding to at least a portion of the tax amount into an income bearing low-to-no risk holding account;

relying on automatically tracking such directed funds and corresponding tax due deadlines for a plurality of merchants;

relying on making timely payments from the holding account to at least one tax collection authority on behalf of multiple merchants; and

relying on distributing income from the holding account.

6. The tax collection and payment method of claim 5, wherein the act of electronically and automatically separating a taxable amount from a corresponding tax amount for a merchant is performed by at least one of:

the merchant at the location of the commercial transaction, a credit card processor processing a credit card transaction as part of the commercial transaction.

7. The tax collection and payment method of claim 5, wherein directing funds corresponding to at least a portion of the tax amount into an income bearing low-to-no risk holding account occurs in response to at least one of:

passage of a specified period of time since funds were last so directed, accumulation of undirected funds past a specified threshold amount, execution of a specified number of commercial transactions since funds were last so directed.

8. The tax collection and payment method of claim 5, wherein making timely payments comprises making timely payments of at least one of the following taxes:

alcohol tax, tobacco tax, gambling tax, gasoline tax.

9. The tax collection and payment method of claim 5, wherein distributing income from the holding account comprises distributing income to at least one of:

a holding funds manager, a credit card processor, the merchant, an entity which permits performance of the method under a patent license.

10. The tax collection and payment method of claim 5, further comprising relying on collecting at least a portion of the tax amount by retrying a funds source using amounts lower than the total tax due, and relying on distinguishing between debts incurred and amounts actually collected in order to prevent or reduce merchant tax payment on amounts owed but not paid by a consumer.

11. The tax collection and payment method of claim 5, further comprising at least one of:

relying on re-investing a portion of the income from the holding fund back into the holding fund;

relying on automatically calculating sales tax based on geographic location information.

12. The tax collection and payment method of claim 5, further comprising relying on receiving an installation request for software and technology from a merchant, the software operating to facilitate tax collection, the merchant then inserting their federal tax identification number and other identifying and/or routing numbers into an email or other electronic form to facilitate automatic tax payment on behalf of the merchant.

13. A tax collection and payment method comprising:

automatically, promptly, and electronically determining a tax amount associated with a commercial transaction, the commercial transaction having a transaction amount;

receiving electronically a payment covering the tax amount and another part of the transaction amount;

automatically, promptly, and electronically making payment of the tax amount to a tax collection authority; and

receiving value in response to said step of making payment of the tax.

14. The collection and payment method of claim 13, further comprising electronically sending the merchant a receipt for the payment of the tax.

15. A method for automatic billing after payment of a debt by a funds source is declined for insufficient funds, comprising the steps of:

retrying to collect at least a portion of the debt by automatically and electronically charging the funds source at a lower amount than the full debt; and

if the lower amount is paid by said retrying then reducing the debt by the lower amount and if the lower amount is not paid then retrying again with an amount that is determined automatically and electronically.

16. The automatic billing method of claim 15, wherein the debt is part of a taxable commercial transaction, and the method further comprises electronically and automatically separating a taxable amount from a corresponding tax amount in connection with the commercial transaction.

17. The automatic billing method of claim 15, further comprising waiting a specified time before a retry.

18. The automatic billing method of claim 17, wherein said waiting step waits between two consecutive retries for a period which depends on at least one of the following:

whether an earlier retry of the two succeeded in obtaining a partial payment, whether the amount remaining in the debt after the earlier of the two retries exceeds a threshold debt write-off value, whether the funds source is a credit card as opposed to a debit card, whether the time of year the debt was incurred is a relatively busy time of year for credit card processors.

19. The automatic billing method of claim 15, wherein retries are performed at intervals on a predetermined schedule until one of the following occurs:

the complete total charge is paid, a maximum time for retries has passed, a maximum number of retries has been made.

20. The automatic billing method of claim 15, further comprising at least one of:

automatically sending a consumer a debt collection notice, automatically adding a debt collection fee to the debt owed.

21. The automatic billing method of claim 15, further comprising the step of adjusting the amount to use in a next retry so it differs from the amount used in an earlier retry.

22. The automatic billing method of claim 21, wherein the adjusting sets the amount of the next retry to at least one of the following:

the total amount of unpaid debt remaining, an amount lower than the amount of a previous unsuccessful retry.