Electronic bill pay system for consumers to generate messages directing financial institutions to pay a biller's bill

• US 6,408,284 B1
• Filed: 06/11/1999
• Issued: 06/18/2002
• Est. Priority Date: 11/01/1993
• Status: Expired due to Term

• Current Assignee: Visa International Service Association (Visa, Inc.)
• Original Assignee: Visa International Service Association (Visa, Inc.)
• Inventors: Powar, William L., Hilt, James J., Hodges, Ron, Pardue, Stephen W.
• Primary Examiner(s): Thomas, Joseph
• Assistant Examiner(s): Kalinowski, Alexander
• Application Number:
  US09/330,929
• Time in Patent Office: 1,103 Days
• Field of Search: 705/40, 705/41, 705/42, 705/39
• 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 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G06Q 30/04 Billing or invoicing

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.

Claims

1. A computer readable medium including at least computer readable code thereon for allowing a consumer to pay a bill, said computer readable medium comprising:

computer readable code to forward a bill pay order to a first processor, said bill pay order including information identifying a biller, an amount owed, and a consumer-biller account number;

computer readable code to determine whether said consumer has sufficient funds to cover said amount owed;

computer readable code to compare said information identifying said biller to a local biller file to determine a biller financial institution identification number for a financial institution designated to receive funds for said biller;

computer readable code to generate a payment message including said information identifying said biller, said amount owed, said consumer-biller account number, and said biller financial institution identification number;

computer readable code to forward said payment message to a network if said computer readable code to determine whether said consumer has sufficient funds is satisfied; and

computer readable code to route said payment message to said biller financial institution over said network using said biller financial institution identification number.

2. A computer readable medium as recited in claim 1, wherein said computer readable medium further comprises:

computer readable code to receive said payment message at said biller financial institution; and

computer readable code to compare said information identifying said biller to a biller account number table to determine a biller account number at the biller financial institution.

3. A computer readable medium as recited in claim 1, wherein said computer readable code to compare said information to a local biller file comprises:

computer readable code to verify said information identifying said biller by comparing said information identifying said biller to said local biller file and determining whether said biller is an active biller; and

computer readable code to send an error message back to said consumer if said verification step indicates that said biller is not an active biller.

4. A computer readable medium as recited in claim 1, wherein said computer readable code to compare said information to a local biller file comprises:

computer readable code to check said consumer-biller account number against predetermined criteria for consumer-biller account numbers stored in said local biller file; and

computer readable code to send an error message back to said consumer if said consumer-biller account number contained in said bill pay order does not meet said predetermined criteria stored in said local biller file.

5. A computer readable medium as recited in claim 1, wherein said computer readable medium further comprises:

computer readable code to applying a credit of said amount owed to a biller account at said biller financial institution; and

computer readable code to providing at least information identifying said credit amount and said consumer-biller account number to a biller accounts receivable processor.

6. A bill pay system, including:

an order entry device, accessible by a consumer, for generating a bill pay order message including data representing a biller identification (BID) number, an amount owed, and a consumer-biller (C/B) account number;

a communications link, coupled to said order entry device, to forward said bill pay order message to a first processor;

said first processor including at least

means for comparing said BID number to a biller file to determine a bank identification number (BIN) identifying a biller financial institution designated to receive funds for said biller;

means for generating a payment message including data representing said BID number, said amount owed, said C/B account number, and said BIN; and

means for forwarding said payment message to a network;

said network routing said message to said biller financial institution based on said BIN; and

said biller financial institution determining a biller account to which funds equal to the amount owed are to be deposited by comparing said C/B account number to a biller account number table maintained by said biller financial institution.

7. A bill pay system as recited in claim 6, wherein said master biller file includes at least a record of information identifying all billers enrolled in the bill pay system.

8. A bill pay system as recited in claim 6, wherein said bill pay order message further includes data representing a source of funds among a plurality of sources of funds controlled by said consumer.

9. A bill pay system as recited in claim 6, wherein said first processor generates a reversal message if a source of consumer funds is insufficient to cover said amount owed.

10. A bill pay system as recited in claim 6, wherein said biller file at said first processor is updated from a master biller file maintained by said network.

11. A bill pay system as recited in claim 6, wherein said biller financial institution stores a second biller file which is also updated from said master biller file maintained by said network.

12. A bill pay system as recited in claim 7, wherein said record of information includes data identifying a BID, a BIN associated with each BID, and a C/B account number mask.