Method and apparatus for payment processing using debit-based electronic funds transfer and disbursement processing using addendum-based electronic data interchange

• US 6,119,107 A
• Filed: 01/07/1998
• Issued: 09/12/2000
• Est. Priority Date: 09/30/1997
• Status: Expired due to Term

• Current Assignee: Conduent Business Services, LLC (Conduent, Inc.)
• Original Assignee: Lockheed Martin Corporation (Martin Marietta Corporation)
• Inventors: Polk, John
• Primary Examiner(s): Cosimano, Edward R.
• Application Number:
  US09/003,941
• Time in Patent Office: 979 Days
• Field of Search: 705/1, 705/35, 705/40, 705/44, 902/41
• US Class Current: 705/40
• 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 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

This disclosure describes a payment and disbursement system, wherein an initiator authorizes a payment and disbursement to a collector and the collector processes the payment and disbursement through an accumulator agency. The accumulator agency processes the payment as a debit-based transaction and processes the disbursement as an addendum-based transaction. The processing of a debit-based transaction generally occurs by electronic funds transfer (EFT) or by financial electronic data interchange (FEDI). The processing of an addendum-based transaction generally occurs by electronic data interchange (EDI).

Claims

1. A method of accumulating a payment and processing a disbursement, comprising the steps, performed by a processor, of:

initiating the payment with disbursement information from a payor to a payee through a collector;

transferring to an accumulator agency the payment and the disbursement information from the collector;

processing from the agency to a bank the payment as a debit transaction; and

processing from the agency to an intermediary the disbursement information as an addendum transaction.

2. The method of claim 1, wherein the transferring step occurs by financial electronic data interchange (FEDI).

3. The method of claim 1, wherein the step of processing the payment occurs by electronic funds transfer (EFT).

4. The method of claim 1, wherein the step of processing the disbursement information occurs by electronic data interchange (EDI).

5. A system for accumulating a payment and processing a disbursement, comprising:

an initiating component configured to initiate the payment with disbursement information from a payor to a payee through a collector;

a transferring component configured to transfer to an accumulator agency the payment and the disbursement information from the collector;

a payment processing component configured to process from the agency to a bank the payment as a debit transaction; and

a disbursement processing component configured to process from the agency to an intermediary the disbursement information as an addendum transaction.

6. The system of claim 5, wherein the transferring component occurs by financial electronic data interchange (FEDI).

7. The system of claim 5, wherein the payment processing component occurs by electronic funds transfer (EFT).

8. The system of claim 5, wherein the disbursement processing component occurs by electronic data interchange (EDI).

9. A computer usable medium having computer readable code embodied therein for causing a computer to accumulate a payment and process a disbursement, the computer usable code comprising:

an initiation module configured to initiate a payment with disbursement information from a payor to a payee through a collector;

a transfer module configured to transfer to an accumulator agency the payment and the disbursement information from the collector;

a payment module configured to process from the agency to a bank the payment as a debit transaction; and

a disbursement module configured to process from the agency to an intermediary the disbursement information as an addendum transaction.

10. The computer usable code of claim 9, wherein the transfer module occurs by financial electronic data interchange (FEDI).

11. The computer usable code of claim 9, wherein the payment module occurs by electronic funds transfer (EFT).

12. The computer usable code of claim 9, wherein the disbursement module occurs by electronic data interchange (EDI).

13. A method of processing a payment, comprising the steps, performed by a processor, of:

receiving payment information at a collector;

sending the payment information from the collector to an accumulator agency;

receiving at the accumulator agency payment information from the collector regarding the payment;

initiating by the accumulator agency the payment as a debit transaction;

executing the debit transaction from the accumulator agency through an automated clearing house (ACH); and

dispatching a credit reflecting the payment from the ACH to an intermediary'"'"'s bank for the benefit of an intermediary.

14. The method of claim 13, wherein the sending step occurs by the transmission of an addendum-based FEDI file.

15. The method of claim 13, wherein the initiating step occurs by an EFT transaction.

16. The method of claim 13, wherein the initiating step occurs by an FEDI transaction.

17. The method of claim 13, wherein the initiating step occurs through an accumulator agency'"'"'s bank.

18. The method of claim 13, further comprising the step of:

processing the debit transaction from the ACH to a collector'"'"'s bank.

19. A system for processing a payment, comprising:

a first receiving component configured to receive payment information at a collector;

a sending component configured to send the payment information from the collector to an accumulator agency;

a second receiving component configured to receive at the accumulator agency payment information from the collector regarding the payment;

an initiating component configured to initiate by the accumulator agency the payment as a debit transaction;

an executing component configured to execute the debit transaction from the accumulator agency through an automated clearing house (ACH); and

a dispatching component configured to dispatch a credit reflecting the payment from the ACH to an intermediary'"'"'s bank for the benefit of an intermediary.

20. The system of claim 19, wherein the sending component occurs by the transmission of an addendum-based FEDI file.

21. The system of claim 19, wherein the initiating component occurs by an EFT transaction.

22. The system of claim 19, wherein the initiating component occurs by an FEDI transaction.

23. The system of claim 19, wherein the initiating component occurs through an accumulator agency'"'"'s bank.

24. The system of claim 19, further comprising:

a processing component configured to process the debit transaction from the ACH to a collector'"'"'s bank.

25. A computer usable medium having computer readable code embodied therein for causing a computer to process a payment, the computer usable code comprising:

a first receiving module configured to receive payment information at a collector;

a sending module configured to send the payment information from the collector to an accumulator agency;

a second receiving module configured to receive at the accumulator agency payment information from the collector regarding the payment;

an initiating module configured to initiate by the accumulator agency the payment as a debit transaction;

an executing component configured to execute the debit transaction from the accumulator agency through an automated clearing house (ACH); and

a dispatching component configured to dispatch a credit reflecting the payment from the ACH to an intermediary'"'"'s bank for the benefit of an intermediary.

26. A method of processing a disbursement, comprising the steps, performed by a processor, of:

transmitting by an accumulator agency disbursement information to a state;

receiving at the accumulator agency disbursement transaction information from the state regarding authorization for the disbursement as an addendum transaction; and

executing the disbursement to a recipient.

27. The method of claim 26, wherein the transmitting step occurs by an addendum-based EDI transaction.

28. The method of claim 26, wherein the executing step includes the substep of paying the recipient via one of paper check, direct deposit, and debit deposit.

29. The method of claim 26, further comprising the step of:

issuing an invoice for the disbursement.

30. A system for processing a disbursement, comprising:

a transmitting component configured to transmit by an accumulator agency disbursement information to a state;

a receiving component configured to receive at the accumulator agency disbursement transaction information from the state regarding authorization for the disbursement as an addendum transaction; and

an executing component configured to execute the disbursement to a recipient.

31. The system of claim 30, wherein the transmitting component occurs by an addendum-based EDI transaction.

32. The system of claim 30, wherein the executing component further includes a paying component configured to pay the recipient via one of paper check, direct deposit, and debit deposit.

33. The system of claim 30, further comprising an issuing component configured to issue an invoice for the disbursement.

34. A computer usable medium having computer readable code embodied therein for causing a computer to process a disbursement, the computer usable code comprising:

a transmitting module configured to transmit by an accumulator agency disbursement information to a state;

a receiving module configured to receive at the accumulator agency disbursement transaction information from the state regarding authorization for the disbursement as an addendum transaction; and

an executing module configured to execute the disbursement to a recipient.

35. A method of processing a disbursement, comprising the steps, performed by a processor, of:

receiving at an accumulator agency disbursement transaction information from a state regarding the disbursement as an addendum transaction; and

executing the disbursement to a recipient.

36. The method of claim 35, wherein the receiving step occurs by an EDI transaction.

37. The method of claim 35, wherein the disbursement is a child support disbursement.

38. The method of claim 35, wherein the disbursement is an alimony disbursement.

39. The method of claim 35, wherein the disbursement is a disbursement based on a judgment.

40. The method of claim 35, wherein the disbursement is a disbursement based on an attachment.

41. The method of claim 35, wherein the recipient is a custodial parent.

42. The method of claim 35, further comprising the step of:

transmitting an invoice for the disbursement to the recipient.

43. The method of claim 35, wherein the receiving step further includes the substep of paying the recipient via one of paper check, direct deposit, and debit deposit.

44. The method of claim 43, further comprising the step of:

initiating by the accumulator agency the debit deposit through the accumulator agency.

45. The method of claim 43, further comprising the step of:

establishing by the accumulator agency the debit deposit at a bank of the recipient'"'"'s choice.

46. The method of claim 43, further comprising the step of:

initiating by the accumulator agency the debit deposit through a bank.

47. The method of claim 46, further comprising the step of:

establishing by the accumulator agency the debit deposit at the accumulator agency'"'"'s bank.

48. The method of claim 46, further comprising the step of:

establishing by the accumulator agency the debit deposit at the state'"'"'s bank.

49. The method of claim 43, further comprising the step of:

initiating by the accumulator agency the direct deposit through a bank.

50. The method of claim 49, further comprising the step of:

executing the direct deposit from the bank through an ACH.

51. The method of claim 50, further comprising the step of:

processing the direct deposit from the ACH to a recipient'"'"'s bank.

52. The method of claim 51, further comprising the step of:

dispatching a credit reflecting the direct deposit from the ACH to the recipient'"'"'s bank for the benefit of the recipient.

53. A system for processing a disbursement, comprising:

a receiving component configured to receive at an accumulator agency disbursement transaction information from a state regarding the disbursement as an addendum transaction; and

an executing component configured to execute the disbursement to a recipient.

54. The system of claim 53, wherein the receiving component occurs by an EDI transaction.

55. The system of claim 53, wherein the disbursement is a child support payment.

56. The system of claim 53, wherein the disbursement is an alimony disbursement.

57. The system of claim 53, wherein the disbursement is a disbursement based on a judgment.

58. The system of claim 53, wherein the disbursement is a disbursement based on an attachment.

59. The system of claim 53, wherein the recipient is a custodial parent.

60. The system of claim 53, further comprising:

a transmitting component configured to transmit an invoice for the disbursement to the recipient.

61. The system of claim 53, wherein the receiving component further includes a paying component configured to pay the recipient via one of paper check, direct deposit, and debit deposit.

62. The system of claim 61, further comprising:

a direct initiating component configured to initiate by the accumulator agency the debit deposit through the accumulator agency.

63. The system of claim 61, further comprising:

a choice establishing component configured to establish by the accumulator agency the debit deposit at a bank of the recipient'"'"'s choice.

64. The system of claim 61, further comprising:

a debit initiating component configured to initiate by the accumulator agency the debit deposit through a bank.

65. The system of claim 64, further comprising:

a debit establishing component configured to establish by the accumulator agency the debit deposit at the accumulator agency'"'"'s bank.

66. The system of claim 64, further comprising:

a state establishing component configured to establish by the accumulator agency the debit deposit at the state'"'"'s bank.

67. The system of claim 61, further comprising:

a deposit initiating component configured to initiate by the accumulator agency the direct deposit through a bank.

68. The system of claim 67, further comprising:

a deposit executing component configured to execute the direct deposit from the bank through an ACH.

69. The system of claim 68, further comprising:

a deposit processing component configured to process the direct deposit from the ACH to a recipient'"'"'s bank.

70. The system of claim 69, further comprising:

a deposit dispatching component configured to dispatch a credit reflecting the direct deposit from the ACH to the recipient'"'"'s bank for the benefit of the recipient.