Pre-funding system and method

• US 7,711,639 B2
• Filed: 01/12/2005
• Issued: 05/04/2010
• Est. Priority Date: 01/12/2005
• Status: Active Grant

• Current Assignee: Visa International (Visa, Inc.)
• Original Assignee: Visa International (Visa, Inc.)
• Inventors: Swackhammer, Craig, Lynch, Keiron G., Martinez, L. Ted, Reid, William, Novak, M. Kathrina, Bryant, John M.
• Primary Examiner(s): Kazimi; Hani M.
• Assistant Examiner(s): MADAMBA, CLIFFORD B
• Application Number:
  US11/034,667
• Publication Number:
  US 20060155644A1
• Time in Patent Office: 1,938 Days
• Field of Search: 705 35- 45, 705/99
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/108 Remote banking, e.g. home banking
• 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 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A method for pre-funding is disclosed. The method includes sending a plurality of pre-fund authorization requests to a buyer financial institution, and then receiving a plurality of responses to the pre-fund authorization requests from the buyer financial institution, where each response either accepts or declines a pre-fund authorization request. A funds transfer request is sent to the buyer financial institution, where the funds transfer request corresponds to a total value of the accepted pre-fund authorization requests. Notification that funds have transferred from the buyer financial institution in response to the funds transfer request is received. Then, the sending of the funds to a supplier financial institution is authorized.

Claims

1. A method for pre-funding, the method comprising:

defining a settlement process, by a commerce processor, for a payer financial institution with a settlement process setup;

providing a cutoff time parameter, by the commerce processor, to the settlement process setup, the cutoff time parameter defining the cutoff time for processing post-dated payments for payers using the payer financial institution;

using the cutoff time parameter, by the commerce processor, to calculate a predetermined time period associated with the post-dated payments;

receiving a plurality of post-dated payments from payers at a gateway associated with the commerce processor, wherein the commerce processor comprises a server computer;

sending, by the commerce processor, a plurality of pre-fund authorization requests to the payer financial institution, wherein the pre-fund authorization requests are respectively generated from the plurality of post-dated payments, wherein the sending of the plurality of pre-fund authorization requests occurs within the predetermined time period;

receiving a plurality of responses to the pre-fund authorization requests from the payer financial institution, at the commerce processor, wherein each response either accepts or declines a pre-fund authorization request;

accumulating, by a subsystem in communication with the commerce processor, the accepted pre-fund authorization requests from the payer financial institution into a total value of the accepted pre-fund authorization requests;

sending a funds transfer request, by a funds transfer system in communication with the subsystem, which is eventually received at the payer financial institution, wherein the funds transfer request corresponds to the total value of the accepted pre-fund authorization requests, and wherein the payer financial institution thereafter transfers funds to an account with a settlement financial institution in response to the funds transfer request;

reporting, by the subsystem, in advance of the funds transfer request, the total value of the accepted pre-fund authorization requests;

receiving, at a treasury reconciliation system, a pre-fund amount associated with the account with the settlement financial institution;

determining, with the treasury reconciliation system, an allowable authorized amount from the pre-fund amount associated with the account;

authorizing or declining by the subsystem, the plurality of post-dated payments on the due dates for the post-dated payments, based on the allowable authorized amount; and

sending, by the funds transfer system, a subsequent funds transfer request based on the authorized post-dated payments, wherein the subsequent funds transfer request is based on a gross credit position.

2. The method of claim 1 wherein the pre-determined time period is between 0 and 72 hours before the post-dated payments are due.

3. The method of claim 1 wherein the payer financial institution is a buyer bank.

4. The method of claim 1 wherein the pre-fund authorization requests are in the form of non-financial authorization messages.

5. The method of claim 4 wherein the messages are SMS messages.

6. The method of claim 4 wherein after the payer financial institution approves of a pre-fund authorization request, the payer financial institution prevents the post-dated payment associated with that pre-fund authorization request from further modification.

7. The computer readable medium of claim 4 wherein the messages are SMS messages.

8. The computer readable medium of claim 4 wherein after the payer financial institution approves of a pre-fund authorization request, the payer financial institution prevents the post-dated payment associated with that pre-fund authorization request from further modification.

9. A computer readable medium comprising code, executable by a processor, for implementing a method comprising:

defining a settlement process, by a commerce processor, for a payer financial institution with a settlement process setup;

providing a cutoff time parameter, by the commerce processor, to the settlement process setup, the cutoff time parameter defining the cutoff time for processing post-dated payments for payers using the payer financial institution;

using the cutoff time parameter, by the commerce processor, to calculate a predetermined time period associated with the post-dated payments;

receiving a plurality of post-dated payments from payers at a gateway associated with the commerce processor, wherein the commerce processor comprises a server computer;

sending, by the commerce processor, a plurality of pre-fund authorization requests to the payer financial institution, wherein the pre-fund authorization requests are respectively generated from the plurality of post-dated payments, wherein the sending of the plurality of pre-fund authorization requests occurs within the predetermined time period;

receiving a plurality of responses to the pre-fund authorization requests from the payer financial institution, at the commerce processor, wherein each response either accepts or declines a pre-fund authorization request;

accumulating, by a subsystem in communication with the commerce processor, the accepted pre-fund authorization requests from the payer financial institution into a total value of the accepted pre-fund authorization requests;

sending a funds transfer request, by a funds transfer system in communication with the subsystem, which is eventually received at the payer financial institution, wherein the funds transfer request corresponds to the total value of the accepted pre-fund authorization requests, and wherein the payer financial institution thereafter transfers funds to an account with a settlement financial institution in response to the funds transfer request;

reporting, by the subsystem, in advance of the funds transfer request, the total value of the accepted pre-fund authorization requests;

receiving, at a treasury reconciliation system, a pre-fund amount associated with the account with the settlement financial institution;

determining, with the treasury reconciliation system, an allowable authorized amount from the pre-fund amount associated with the account;

authorizing or declining by the subsystem, the plurality of post-dated payments on the due dates for the post-dated payments, based on the allowable authorized amount; and

sending, by the funds transfer system, a subsequent funds transfer request based on the authorized post-dated payments, wherein the subsequent funds transfer request is based on a gross credit position.

10. The computer readable medium of claim 9 wherein the pre-determined time period is between 0 and 72 hours before the post-dated payments are due.

11. The computer readable medium of claim 9 wherein the payer financial institution is a buyer bank.

12. The computer readable medium of claim 9 wherein the pre-fund authorization requests are in the form of non-financial authorization messages.