Electronic bill pay system
First Claim
1. An electronic funds transfer network for transferring funds from a consumer account to a biller account, wherein a funds transfer from the consumer account occurs when a first transaction processor applies a debit portion of an accounting transaction to the consumer account and a funds transfer to the biller account occurs where a second transaction processor applies a credit portion of a resulting accounting transaction to the biller account, comprising:
- order input means for consumer input of a bill pay order, said bill pay order including at least a reference to a biller identification (biller ID), a payment amount, and an identifier of a consumer-biller account to be credited, wherein said consumer-biller account is used to determine amounts owed to a biller by a consumer;
a first transaction processor, configured to at least maintain a balance of the consumer account and process debit portions of accounting transactions against the consumer account, said first transaction processor being a computer operated for a consumer financial institution with whom the consumer maintains the consumer account;
means for transmitting said bill pay order from said order input means to said first transaction processor;
payment data packet generation means, controlled by said first transaction processor, for generating a payment data packet based on said bill pay order, said payment data packet comprising at least data fields indicating said biller ID, said payment amount and said consumer-biller account identifier;
an electronic packet transfer network which electronically couples said payment data packet generation means at an originating node to a plurality of similar nodes, wherein each node is uniquely identified by a financial institution identifier (BID), said electronic packet transfer network including destination translation means for translating said biller ID field of said payment data packet into a pointer to a destination node;
a second transaction processor located at said destination node, configured to at least maintain a balance of the biller account and process credit portions of accounting transactions against the biller account, said second transaction processor being a computer operated for the biller financial institution with whom a biller maintains the biller account;
payment data packet accepting means, coupled to said electronic packet transfer network and to said second transaction processor, for accepting said payment data packet from said electronic packet transfer network and applying a credit transaction to the biller account according to said payment amount field of said payment data packet; and
a biller accounts receivable data processor, coupled to one of said electronic packet transfer network or said payment data packet accepting means, which processes biller data included in said payment data packet and provides said biller data in a form used by said biller to update said consumer-biller account to reflect a credit based on to said payment amount.
2 Assignments
0 Petitions
Reexamination
Accused Products
Abstract
A bill pay system wherein participating consumers pay bills to participating billers through a payment network operating according to preset rules. The participating consumers receive bills from participating billers (paper/mail bills, e-mail notices, implied bills for automatic debts) which indicate an amount, and a unique biller identification number. To authorize a remittance, a consumer transmits to its bank (a participating bank) a bill pay order indicating a payment date, a payment amount, the consumer'"'"'s account number with the biller, a source of funds and the biller'"'"'s biller identification number, either directly or by reference to static data containing those data elements. Bank C then submits a payment message to a payment network, and the payment network, which assigns the biller reference numbers, forwards the payment message to the biller'"'"'s bank. For settlement, the consumer'"'"'s bank debits the consumer'"'"'s account and is obligated to a net position with the payment network; likewise, the biller'"'"'s bank receives a net position from the payment network and credits the biller'"'"'s bank account. If the consumer'"'"'s bank agrees to send non-reversible payment messages, the consumer'"'"'s bank does not submit the transaction until funds are good unless the consumer'"'"'s bank is willing to take the risk of loss if funds are not good, in the case of a guaranteed payment network. The biller'"'"'s bank, upon receipt of the payment message, releases the funds to the biller, and provides A/R data to biller in a form which biller B has indicated, the form being one which does not have to be treated as an exception item to the biller. The biller'"'"'s bank is assured of payment by the payment network, unless the transaction is a reversible transaction according to the preset rules of the payment network. In specific embodiments, the consumer initiates the bill pay orders manually, via paper at an ATM, via PC, or via telephone keypad.
1377 Citations
30 Claims
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1. An electronic funds transfer network for transferring funds from a consumer account to a biller account, wherein a funds transfer from the consumer account occurs when a first transaction processor applies a debit portion of an accounting transaction to the consumer account and a funds transfer to the biller account occurs where a second transaction processor applies a credit portion of a resulting accounting transaction to the biller account, comprising:
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order input means for consumer input of a bill pay order, said bill pay order including at least a reference to a biller identification (biller ID), a payment amount, and an identifier of a consumer-biller account to be credited, wherein said consumer-biller account is used to determine amounts owed to a biller by a consumer; a first transaction processor, configured to at least maintain a balance of the consumer account and process debit portions of accounting transactions against the consumer account, said first transaction processor being a computer operated for a consumer financial institution with whom the consumer maintains the consumer account; means for transmitting said bill pay order from said order input means to said first transaction processor; payment data packet generation means, controlled by said first transaction processor, for generating a payment data packet based on said bill pay order, said payment data packet comprising at least data fields indicating said biller ID, said payment amount and said consumer-biller account identifier; an electronic packet transfer network which electronically couples said payment data packet generation means at an originating node to a plurality of similar nodes, wherein each node is uniquely identified by a financial institution identifier (BID), said electronic packet transfer network including destination translation means for translating said biller ID field of said payment data packet into a pointer to a destination node; a second transaction processor located at said destination node, configured to at least maintain a balance of the biller account and process credit portions of accounting transactions against the biller account, said second transaction processor being a computer operated for the biller financial institution with whom a biller maintains the biller account; payment data packet accepting means, coupled to said electronic packet transfer network and to said second transaction processor, for accepting said payment data packet from said electronic packet transfer network and applying a credit transaction to the biller account according to said payment amount field of said payment data packet; and a biller accounts receivable data processor, coupled to one of said electronic packet transfer network or said payment data packet accepting means, which processes biller data included in said payment data packet and provides said biller data in a form used by said biller to update said consumer-biller account to reflect a credit based on to said payment amount. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15)
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16. A method of paying bills electronically, wherein funds are effectively transferred between a consumer and a biller, comprising the steps of:
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accepting a payment amount and a biller identification (ID) from the consumer; converting said payment amount and said biller ID into a bill pay order, which bill pay order is stored as an electronic data record; transmitting said bill pay order to a first transaction processor, said first transaction processor being a computer configured to maintain a balance of a consumer account and to apply debit portions of accounting transactions against said consumer account; applying a debit of said payment amount against said consumer account using said first transaction processor; transmitting an outbound payment data packet from said first transaction processor to an electronic payment network, said outbound payment data packet including at least data fields indicating said payment amount, said biller ID and an indication of a consumer-biller account number; identifying, from said biller ID field of said outbound payment data packet, a destination node for said outbound payment data packet and a destination account identifier (ID); transmitting an inbound payment data packet from said electronic payment network to a second transaction processor located at said destination node, said inbound payment data packet including at least data fields indicating an inbound payment amount and said destination account ID, said second transaction processor being a computer configured to maintain a balance of a biller account and to apply credit portions of accounting transactions against accounts including a biller account identified by said destination account ID; applying a credit of said inbound payment amount against said biller account using said second transaction processor; and providing at least said inbound payment amount and said consumer-biller account number to a biller accounts receivable data processor. - View Dependent Claims (17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27)
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28. A method for paying a bill from a biller to a consumer, comprising the steps of:
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verifying authority of the consumer to issue a bill pay order; accepting said bill pay order at a consumer financial institution from the consumer, said bill pay order comprising data elements indicating at least a source of funds, a biller ID, a customer-biller account number assigned by the biller and a payment amount, wherein said biller ID identifies the biller to each consumer; if said bill pay order is guaranteed, securing at least a guarantee of funds from the consumer in favor of said consumer financial institution; electronically transmitting an outbound payment data packet from a first transaction processor to an electronic payment network, wherein said outbound payment data packet includes at least said payment amount, said consumer-biller account number and said biller ID, and wherein said first transaction processor maintains balance information on said source of funds and is configured to process debits and credits applied to said source of funds; electronically comparing said biller ID to an index of a biller reference file to determine a destination node for an inbound payment data packet corresponding to said outbound payment data packet; transmitting said inbound payment data packet from said electronic payment network to a second transaction processor located at said destination node, wherein said second transaction processor maintains balance information on a biller account held in favor of the biller and is configured to process debits and credits applied to said biller account; applying a credit to said biller account with said second transaction processor, said credit being in an amount corresponding to a payment amount of said inbound payment data packet; applying a debit to an account held in favor of said consumer financial institution by an amount corresponding to said payment amount of said outbound payment data packet; and providing, from said second transaction processor, data fields from said inbound payment data packet including at least said payment amount and said consumer-biller account number. - View Dependent Claims (29)
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30. An electronic payment network for transferring funds from a consumer to a biller to pay a bill owed by the consumer to the biller, comprising:
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a network coupling transaction processors of participating financial institutions; a first transaction processor of an initiating financial institution, comprising means for sending an outbound payment data packet to said electronic payment network in response to a bill pay order issued by the consumer, said outbound payment data packet identifying the biller by a biller ID assigned to the biller for use with each consumer who is a customer of the biller and which biller ID is disclosed to consumers desiring to make payments to the biller using said electronic payment network; a conversion means, coupled to said electronic payment network, for converting an outbound payment data packet to an inbound payment data packet, including a conversion of said biller ID to a destination node and a destination account ID;
a second transaction processor of a receiving financial institution located at said destination node, capable of receiving said inbound payment data packet from said electronic payment network, identifying a biller account from said biller ID, debiting an account held in favor of said initiating financial institution by a payment amount included in said outbound payment data packet, and crediting an account held in favor of said receiving financial institution by a payment amount included in said inbound payment data packet; andmeans for crediting the consumer'"'"'s account with the biller by said payment amount included in said inbound payment data packet.
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Specification