Method and system for processing internet payments using the electronic funds transfer network

• US 6,609,113 B1
• Filed: 02/03/2000
• Issued: 08/19/2003
• Est. Priority Date: 05/03/1999
• Status: Expired due to Term

• Current Assignee: Chase Manhattan Mortgage Corporation (JP Morgan Chase & Co)
• Original Assignee: The Chase Manhattan Bank (JP Morgan Chase & Co)
• Inventors: O'Leary, Denis, D'Agostino, Vincent, Re, S. Richard, Burney, Jessica, Hoffman, Adam
• Primary Examiner(s): Millin, Vincent
• Assistant Examiner(s): Patel, Jagdish
• Application Number:
  US09/497,307
• Time in Patent Office: 1,293 Days
• Field of Search: 705/39-45
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• 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 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered

Abstract

A system and method for effectuating Electronic Funds Transfer credit messages. The main structural components of the system include a Payment Portal Processor (PPP), an Internet Pay Anyone (IPA) Account, a Virtual Private Lockbox (VPL) and an associated Account Reporter, the existing EFT networks, and a cash card for accessing a VPL or IP account. The PPP is a software application that provides a secure portal for accessing (linking to) either the user'"'"'s Demand Deposit Account (DDA) or an IPA account and can be combined with the functionality of a traditional digital Wallet. Consumers use a PPP enhanced Wallet to fund their account, shop on the web, pay bills, pay anyone, store electronic receipts and transaction history, and check their recent PPP enhanced Wallet activity. The IPA account is a special purpose account with limited functionality for making electronic payments in the form of EFT credit messages. The VPL is a limited function receive only account for receiving electronic payments through the EFT. The Account Reporter is a portal to view transaction history and balance of IPA and VPL accounts, provide online, real-time transaction reports, and to reconciles accounts receivable/purchase records against incoming EFT payment records. A physical card can be associated with either an IPA or VPL account in order to provide PIN debit capability.

Claims

1. A method for effectuating an electronic credit to a destination account at a destination institution, the method comprising the steps of:

identifying the destination account, the destination institution and an amount of the credit, wherein the destination account is identified by a receive only address of the destination account; and

transmitting an Electronic Funds Transfer (EFT) credit message to the destination institution through an Electronic Funds Transfer network, the EFT credit message representing the credit.

2. The method as recited in claim 1, further comprising the step of crediting the destination account in the amount of the credit in response to the receipt of the EFT credit message.

3. The method as recited in claim 1, wherein the credit originates from an origination account, the method further comprising the step of debiting the origination account in the amount of the credit.

4. The method as recited in claim 1, wherein the destination institution is a bank.

5. The method as recited in claim 1, wherein the destination account further has a second address through which debit and credit translations are permitted.

6. A method for effectuating an electronic payment between a payor and a payee using an Electronic Funds Transfer (EFT) network, the payor having a payor account at a payor institution and the payee having a payee account at a payee institution, the method comprising the steps of:

making an identification of the payee account publicly available;

generating a payment authorization identifying the payee institution, the payee account and an amount of the payment;

transmitting the payment authorization to the payor institution;

debiting the payor account by the amount of the payment;

transmitting from the payor institution to the payee institution through the EFT network an EFT credit message representing a credit in the amount of the payment; and

crediting the payee account in the amount of the payment in response to the receipt of the EFT credit message.

7. A method for effectuating an electronic payment between a payor and a payee using an Electronic Funds Transfer (EFT) network, the payor having a payor account at a payor institution and the payee having a payee account at a payee institution, the method comprising the steps of:

generating a payment authorization identifying the payee institution, the payee account and an amount of the payment, wherein the payee account is identified by a receive only address of the payee account;

transmitting the payment authorization to the payor institution;

debiting the payor account by the amount of the payment;

transmitting from the payor institution to the payee institution through the EFT network an EFT credit message representing a credit in the amount of the payment; and

crediting the payee account in the amount of the payment in response to the receipt of the EFT credit message.

8. The method as recited in claim 7, wherein the EFT network is the Automated Clearing House (ACH) network.

9. The method as recited in claim 7, wherein the payee account further has a second address through which debit and credit transactions are permitted.

10. The method as recited in claim 9, wherein the EFT network is the Automated Clearing House (ACH) network.