Payment convergence system and method

• US 7,039,593 B2
• Filed: 08/13/2002
• Issued: 05/02/2006
• Est. Priority Date: 06/20/2002
• Status: Expired due to Term

• Current Assignee: Cardtek International Incorporated
• Original Assignee: Robert David Sager
• Inventors: Sager, Robert David
• Primary Examiner(s): Thomas, Joseph
• Assistant Examiner(s): Gilligan, Christopher L
• Application Number:
  US10/217,903
• Publication Number:
  US 20030236747A1
• Time in Patent Office: 1,358 Days
• Field of Search: 705 7- 9, 705 2- 4, 705/16, 705/17, 705/26, 902/26, 902/22
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 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 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/357 Cards having a plurality of specified features
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method and system is provided for convergence of multiple independent applications into a single payment vehicle. In the context of a medical procedure, the invention provides for the convergence of medical/dental insurance with at least one secondary payment source to effect payment for the entire procedure. Through the instant invention insurance benefit information can be determined and funds blocked, then secondary payment source(s) can be utilized to effect payment of the insurance co-payment amount. The use of Smart Card technology enables the convergence at the point of sale of information about multiple applications/payment sources (i.e. insurance plan and secondary payment plan) that are processed to determine the amount of payment to be received from each source.

Claims

1. A method of payment for a transaction comprising the steps of:

establishing a transaction total;

storing convergence information on a portable storage medium, said convergence information including data about a plurality of payment sources for the transaction and said convergence information including processing instructions, said processing instructions including order information for utilization of said plurality of payment sources;

obtaining said convergence information from said storage medium at a point of sale terminal while said storage medium is located at the location of said point of sale terminal;

processing of said order information by said point of sale terminal to determine from said plurality of payment source, a primary payment source to be utilized first for the transaction, and at least one secondary payment source to be utilized for the transaction after said primary payment source is utilized;

utilizing of said convergence information to communicate electronically through said point of sale terminal with said primary payment source to establish a primary payment amount from said primary payment source;

determining a secondary payment amount to be obtained from said at least one secondary payment source to satisfy said transaction total; and

utilizing of said convergence information to communicate electronically through said point of sale terminal with said at least one secondary payment source to secure payment of said secondary payment amount;

wherein at least two payment sources are utilized to satisfy said transaction total.

2. The method as claimed in claim 1 wherein said primary payment amount is determined by said primary payment source and transmitted to said point of sale terminal.

3. The method as claimed in claim 2 wherein said step of determining said secondary payment amount is determined by said point of sale terminal.

4. The method as claimed in claim 1 wherein said communication steps are accomplished through at least one processor.

5. The method as claimed in claim 1 wherein said convergence information is stored on a Smart Card.

6. The method as claimed in claim 1 wherein said primary payment amount is determined at the point of sale.

7. The method as claimed in claim 1 wherein said point of sale is a dental office.

8. The method as claimed in claim 7 wherein said primary payment source comprises a dental insurance plan.

9. The method as claimed in claim 8 wherein said secondary payment source is selected from the group consisting of a first party payment plan, a third party payment plan, and any combination thereof.

10. The method as claimed in claim 9 wherein said first party payment plan is selected from the group consisting of credit card, debit card, electronic check, electronic bank transfers, gifts, loyalty and prepayment.

11. The method as claimed in claim 9 wherein said third party payment plan is selected from the group consisting of insurance settlements, government assistance and private credit.

12. The method as claimed in claim 9 wherein said processing instructions comprise:

an instruction to determine said primary payment amount from said dental insurance plan;

an instruction to determine at least a portion of said secondary payment amount from said third party payment plan after said determination of said primary payment amount; and

an instruction to determine the remainder of said secondary payment amount from said first party payment plan.

13. The method as claimed in claim 1 wherein said convergence information comprises information about said primary payment source stored in a first location on said storage medium, and information about said secondary payment source stored in a second location on said storage medium.

14. The method as claimed in claim 13 wherein the storage location of said convergence information has significance in said order information.

15. The method as claimed in claim 1 wherein said processing instructions are stored on said storage medium.

16. The method as claimed in claim 1 wherein said point of sale terminal stores additional processing instructions that utilize said processing instructions obtained from said storage medium.

17. The method as claimed in claim 1 further comprising the steps of:

blocking funds from said payment sources prior to completion of the transaction; and

claiming payment of said funds upon completion of the transaction.

18. A method of converging payment for a medical procedure from multiple independent payment sources into a single payment vehicle for the procedure, the method comprising the steps of:

storing convergence information on a portable storage medium, said convergence information including insurance carrier information, said convergence information including at least one secondary payment source information, and said convergence information including processing instructions, said processing instructions including order information for utilization of said plurality of payment sources;

determining a procedure cost at a medical provider point of sale;

obtaining at the medical provider through a point of sale terminal said convergence information from said storage medium while said storage medium is located at the location of said point of sale terminal; and

processing of said order information by said point of sale terminal to;

(i) determine an insurance carrier to be utilized first as a primary payment source, (ii) communicate electronically with said insurance carrier to determine a primary payment amount from an insurance plan, (iii) determine at least one secondary payment source to be utilized after said primary payment amount is determined, and (iv) determine a secondary payment amount to be obtained from said at least one secondary payment source, to satisfy said procedure cost; and

utilizing said convergence information by said point of sale terminal to communicate with said at least one secondary payment source to secure payment of said secondary payment amount;

wherein at least two payment sources are utilized to satisfy said transaction total.

19. The method as claimed in claim 18 wherein said at least one secondary payment source is selected from the group consisting of a third party payment source, a first party payment source, and any combination thereof.

20. The method as claimed in claim 18 wherein said medical provider is a dentist.

21. The method as claimed in claim 18 wherein said convergence information comprises insurance plan contact information and secondary payment source contact information, and wherein said processing step further comprises the steps of:

contacting an insurance company with said contact information to determine said primary payment amount and an insurance co-payment amount;

blocking funds at said insurance company for said primary payment amount;

contacting said at least one secondary payment source with said contact information to determine said secondary payment amount to cover at least a portion of said co-payment amount; and

blocking funds at said at least one secondary payment source for said secondary payment amount.

22. The method as claimed in claim 21 further comprising the steps of:

completing the medical procedure; and

claiming payment of said funds blocked at said insurance company and at said secondary payment source.

23. A method of payment comprising the steps of:

storing primary convergence information on a portable storage medium, said convergence information including primary payment source information, said convergence information including at least one secondary payment source information and said convergence information including processing instructions, said instructions including order information for utilization of said primary and secondary payment source;

establishing a transaction total at a point of sale;

obtaining at the point of sale through a point of sale terminal a convergence information stored on said storage medium while said storage medium is located at said point of sale;

processing by said point of sale terminal of said order information to determine a primary payment source to be utilized first and at least one secondary payment source to be utilized after utilization of said primary payment source;

utilizing of said convergence information by said point of sale terminal to communicate with said primary payment source to establish a primary payment amount from said primary payment source and a secondary payment amount to be obtained from said at least one secondary payment source to satisfy said transaction total; and

utilizing of said convergence information by said point of sale terminal to communicate with said at least one secondary payment source to secure payment of said secondary payment amount;

wherein at least two payment sources are utilized to satisfy said transaction total.