Financial management system

• US 6,970,843 B1
• Filed: 08/24/2000
• Issued: 11/29/2005
• Est. Priority Date: 08/24/2000
• Status: Active Grant

• Current Assignee: Kioba Processing, LLC (IP Investments Group LLC)
• Original Assignee: Patrick A. Forte
• Inventors: Forte, Patrick A.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Greene, Daniel L.
• Application Number:
  US09/644,560
• Time in Patent Office: 1,923 Days
• Field of Search: 705/35, 705/42, 705/39, 705/40, 705/41, 380/21, 380/24
• US Class Current: 705/39
• 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 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A financial transaction network includes a customer network serviced by a host processor. The financial transaction network provides customers with a plurality of diverse and interchangeable financial products and financial services that customers may utilize to directly manage their financial assets. The host processor acts as a communications switch validating incoming transaction requests and routing them to specialized subsystems. The host processor maintains central records that can be accessed by network participants. The financial transaction network enables customers to continually interchange account values relating to any financial product, or financial service within the network. With its accessibility, speed and finality of settlement, the network permits these interchanges to be accomplished with maximum efficiency.

Claims

1. A financial transaction network for facilitating direct management of financial assets for customers in individual program accounts, comprising:

means allowing a customer to access his individual program account, the individual program account being an account representing an array of accounts that have been individually selected by the customer from the totality of the accounts and including at least one stored value account, (“

SVA”

, which is a nonbank credit account maintained by a merchant for the customer), for a merchant,

a host processor for executing transaction instructions and maintaining individual program account information, said host processor including a database for maintaining individual program account transactions and records,

means for establishing and maintaining a plurality of customer individual program accounts and,

means to support a customers'"'"' transactional interchange of said individual program account including access to a stored value account having been pre-authorized by a customer to settle transactions and,

means enabling a customer to utilize the value in the customer'"'"'s stored value account and instruct the merchant to credit the customer'"'"'s demand deposit account at a bank with funds from said merchant'"'"'s demand deposit account.

2. The financial transaction network of claim 1 further comprising, means to support a plurality of stored value accounts maintained by a merchant for a plurality of customers each having an individual program account.

3. The financial transaction network of claim 1 further comprising, means to support a plurality of demand deposit accounts maintained by a plurality customers in a federally-insured banks as a component of an individual program account.

4. The financial transaction network of claim 2 further comprising, means to support, at a merchant locations, a plurality of point of sale terminals by which a customer may convert the value of a negotiable instrument to a customer'"'"'s stored value account.

5. The financial transaction network of claim 1 further comprising, means to support an array of mechanisms by which customers may convert value from one account in their individual program account to another account in the same individual program account.

6. The financial transaction network of claim 4 further comprising, means enabling said merchant to utilize point of sale terminals to access services to verify a check presented by a customer to the merchant.

7. The financial transaction network of claim 1 further comprising, means for establishing a merchant demand deposit account and providing said merchant access to that same merchant demand deposit account.

8. The financial transaction network of claim 4 further comprising means enabling said merchant to credit to a customer'"'"'s stored value account by an amount based on the value of a negotiable instrument presented to the merchant by the customer.

9. The financial transaction network of claim 2 further comprising means enabling a customer to access their stored value account to credit or debit other accounts in their individual program account.

10. A method of consumer transaction comprising the steps of:

establishing a customer individual program account which includes at least one customer stored value account,

establishing a customer demand deposit account,

establishing a merchant stored value account, (“

SVA”

, which is a nonbank credit account maintained by a merchant for the customer), and

executing a transaction between said consumer and said merchant affecting the account balances in said customer stored value account, said customer demand deposit account and said merchant'"'"'s stored value account, and

enabling a customer to utilize the value in the customer'"'"'s stored value account and instruct the merchant to credit the customer'"'"'s demand deposit account at a bank with funds from said merchant'"'"'s demand deposit account.

11. The method of claim 10 further comprising, the step of pre-approving withdrawals from either a customer stored value account or a customer demand deposit account.

12. The method of claim 10 further comprising, the step of establishing accounts within said individual program account.

13. The method of claim 10 wherein said step of executing a transaction comprising the step of presenting a negotiable instrument at a point of sale at said merchant, to credit or debit account balances.

14. The method of claim 10 further comprising the step of providing customer access to the customer demand deposit account and said customer individual program account accounts to convert balances from one account to another account.

15. The method of claim 10 further comprising the step of providing merchant access to the merchant stored value account to convert a balance to said customer demand deposit account.

16. The method of claim 10 further comprising, the step of establishing a merchant demand deposit account.

17. The method of claim 16 further comprising, the step of converting a balance from said merchant demand deposit account to said customer demand deposit account.

18. The method of claim 11 further comprising, the steps of said customer presenting a negotiable instrument at a point of sale at said merchant, acceptance of the negotiable instrument by the merchant, crediting a corresponding value corresponding to the negotiable instrument to the customer stored value account and paying for the purchase of goods from said merchant.