Virtual private lock box

• US 6,704,714 B1
• Filed: 02/03/2000
• Issued: 03/09/2004
• Est. Priority Date: 05/03/1999
• Status: Expired due to Term

• Current Assignee: The Chase Manhattan Bank (JP Morgan Chase & Co)
• Original Assignee: The Chase Manhattan Bank (JP Morgan Chase & Co)
• Inventors: Re, S. Richard, Burney, Jessica, Hoffman, Adam, OʼLeary, Denis, DʼAgostino, Vincent
• Primary Examiner(s): Millin, Vincent
• Assistant Examiner(s): FULTS, RICHARD C
• Application Number:
  US09/497,334
• Time in Patent Office: 1,496 Days
• Field of Search: 705/39, 705/30-33, 705/35-45
• 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 20/42 Confirmation, e.g. check or permission by the legal debtor of payment
• 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 of receiving electronic payments comprising the steps of:

establishing an account for receiving the electronic payments, the account being denoted as a Virtual Private Lockbox (VPL), the VPL having a first receive only address from which debits are prohibited, the VPL further having a second address through which debits and credits to the account are allowed, wherein the first receive only address and the second address are different;

publicizing the VPL first receive only address to payors, wherein the first receive only address is an actual direct account address of the VPL; and

receiving the electronic payments from the payors into the VPL through the first receive only address.

2. The method as recited in claim 1, wherein the step of receiving the electronic payments further comprises receiving the electronic payment as a credit over an Electronic Funds Transfer network.

3. The method as recited in claim 2, wherein the electronic payment represents a unique credit and not a reversal of a debit.

4. The method as recited in claim 1, wherein the account is a bank account maintained at a bank.

5. The method as recited in claim 1, wherein the account is maintained at an institution.

6. The method as recited in claim 5, wherein the first receive only address includes an address of the institution.

7. The method as recited in claim 1, wherein step of publishing further comprises the step of placing the first receive only address in a directory at an Internet site.

8. The method as recited in claim 7, wherein the directory contains a plurality of addresses for a plurality of VPLs.

9. The method as recited in claim 8, wherein the plurality of VPLs are associated with a plurality of businesses.

10. The method as recited in claim 1, wherein the VPL is associated with a user, the method further comprising the step of reporting the receipt of the electronic payments by the VPL to the user.

11. The method as recited in claim 10, wherein the user maintains an Internet site, the reporting step further comprising reporting the receipt of the electronic payments to the Internet site.

12. The method as recited in claim 1, further comprising the step of storing payment information with respect to each electronic payment received by the VPL.

13. The method as recited in claim 12, further comprising the step of viewing the payment information.

14. The method as recited in claim 12, wherein the payment information includes a source, date and amount of the electronic payment.

15. The method as recited in claim 12, further comprising the step of sorting the payment information.

16. The method as recited in claim 12, further comprising the step of editing the payment information.

17. The method as recited in claim 12, further comprising the step of searching the payment information.

18. The method as recited in claim 12, further comprising the step of exporting the payment information to a software application.

19. The method as recited in claim 1, wherein the VPL is associated with a user, the method further comprising the step of generating an expected payment record when the user expects the receipt of an electronic payment by the VPL.

20. The method as recited in claim 19, further comprising the steps of:

reporting the receipt of electronic payments in the form of a payment records; and

reconciling the payment records with the expected payment records.

21. The method as recited in claim 1, wherein at least one of the received electronic payments originated from a payor, the method further comprising the step of receiving a payment confirmation from the payor confirming a transmission of the at least one electronic payment.

22. The method as recited in claim 21, wherein the payment confirmation is received through the Internet.

23. The method as recited in claim 21, wherein the payment confirmation is received by E-mail.

24. The method as recited in claim 21, further comprising the step of generating an expected payment record in expectation of the receipt of an electronic payment by the VPL.

25. The method of claim 24, further comprising the step of reconciling payment confirmations with expected payment records.

26. A method for a merchant to receive electronic payments, the method comprising the steps of:

establishing an account for receiving the electronic payments, the account being denoted as a Virtual Private Lockbox (VPL), the VPL having a first receive only address for receiving the electronic payments, wherein debits are prohibited from the first receive only address and the first receive only address is an actual direct account address of the VPL, the VPL further having a second address through which debits and credits to the account are allowed, wherein the first receive only address and the second address are different;

offering goods or services for sale at an Internet website of the merchant;

transmitting a payment message to a customer who has selected a good or service for purchase, the payment message identifying the first receive only address and a purchase price; and

the VPL receiving an electronic payment through the first receive only address in the amount of the purchase price from the customer.

27. The method as recited in claim 26, wherein the step of receiving the electronic payment further comprises the step of receiving the electronic payment through an Electronic Funds Transfer network.

28. The method as recited in claim 26, further comprising the step of generating an account receivable record after the step of transmitting the payment message, the account receivable record identifying the customer and the purchase price.

29. The method as recited in claim 28, further comprising the step of receiving a payment confirmation from the customer, the payment confirmation confirming transmission of the electronic.

30. The method of claim 29, further comprising the step of reconciling payment confirmations with account receivable records.

31. The method of claim 29, further comprising the step of releasing the selected goods to the customer after receipt of the payment confirmation.

32. The method of claim 31, wherein the selected goods are digital in nature, the step of releasing the selected goods further comprises the step of transmitting the selected goods to the customer over the Internet.

33. The method of claim 31, wherein the selected goods are physical in nature, the step of releasing the selected goods further comprises the steps of:

notifying a warehouse of the releasing of the goods; and

contacting a shipper to arrange for shipment of the selected goods.

34. A Virtual Private Lockbox (VPL) account system comprising:

a first receive only address into the VPL account, the first receive only address being a receive only address for receiving electronic payments into the VPL account, wherein debits are prohibited from the first receive only address and wherein the first receive only address is an actual direct account address of the VPL account; and

a second address for sweeping finds out of the VPL account, wherein the first receive only address and the second address arc different.

35. The system as recited in claim 34, wherein the first receive only address is accessible by an Electronic Funds Transfer network, the electronic payments being received by the first receive only address as credits over the Electronic Funds Transfer network.

36. The system as recited in claim 35, wherein the electronic payments represents unique credits and not reversals of previous debits.

37. The system as recited in claim 34, further comprising a third address into the VPL account, wherein a user of the VPL account has access to the third address for transferring funds out of the VPL account.

38. The system as recited in claim 37, wherein the first, second and third addresses are different.

39. The system as recited in claim 34, wherein the VPL account is a bank account maintained at a bank.

40. The system as recited in claim 34, wherein the VPL account is maintained at an institution.

41. The system as recited in claim 40, wherein the first receive only address includes an address of the institution.

42. The system as recited in claim 34, further comprising:

an account reporting module coupled to the VPL account, the account reporting module reporting the receipt of the electronic payments by the VPL account.

43. The system as recited in claim 34, further comprising:

a transaction database; and

an account reporting module coupled to the VPL account and coupled to the transaction database, the account reporting module storing payment information in the transaction database with respect to each electronic payment received by the VPL account.

44. The system as recited in claim 43, wherein the account reporter enables viewing of the payment information stored in the transaction database.

45. The system as recited in claim 43, wherein the payment information includes a source, date and amount of the electronic payment.

46. The system as recited in claim 43, wherein the account reporter enables sorting of the payment information stored in the transaction database.

47. The system as recited in claim 43, wherein the account reporter enables editing of the payment information stored in the transaction database.

48. The system as recited in claim 43, wherein the account reporter enables searching of the payment information stored in the transaction database.

49. The system as recited in claim 43, wherein the transaction database stored an expected payment records when the receipt of an electronic payment by the VPL account is expected.

51. The method as recited in claim 43, further comprising the step of transferring funds out of the account through the second address.

61. The system as recited in claim 34, wherein the second address is only accessible by a supervisor of the VPL account.

50. The system as recited in 49, wherein the account reporter reconciles the payment records with the expected payment records.

52. A Virtual Private Lockbox (VPL) account comprising:

a first receive only address of the VPL account for receiving electronic payments into the VPL account, wherein debits are prohibited from the first receive only address, and wherein the first receive only address is an actual direct account address of the VPL; and

a second address of the VPL account, wherein debits from the VPL account are permitted using the second address, wherein the first receive only address and the second address are different.

53. The VPL account as recited in claim 52, wherein credits to the VPL account are permitted using the second address.

54. The VPL account as recited in claim 52, wherein the second address is a traditional address of a Demand Deposit Account (DDA).

55. The VPL account as recited in claim 52, wherein the first receive only address does not require translation.

56. The VPL account as recited in claim 52, wherein the first receive only address is made publicly available.

57. A method for establishing an account for receiving electronic payments comprising:

establishing an account for receiving the electronic payments, the account being denoted as a Virtual Private Lockbox (VPL),

establishing a first receive only address for the VPL from which debits are prohibited, wherein the first receive only address is an actual direct account address of the VPL; and

establishing a second address of the VPL account, wherein debits from the VPL account are permitted using the second address, wherein the first receive only address and the second address are different.

58. The method as recited in claim 57, further comprising making the VPL first receive only address publicly available.

59. The method as recited in claim 57, wherein the first receive only address does not require translation.

60. The method as recited in claim 57, further comprising permitting credits to the VPL account are permitted using the second address.