Computerized system and method for an automated payment process

• US 7,752,133 B2
• Filed: 12/23/2005
• Issued: 07/06/2010
• Est. Priority Date: 12/23/2004
• Status: Active Grant

• Current Assignee: Unirich LLC
• Original Assignee: Unirich LLC
• Inventors: Wiley, Robin, Rich, J. Stephen
• Primary Examiner(s): Poinvil; Frantzy
• Application Number:
  US11/318,205
• Publication Number:
  US 20060161499A1
• Time in Patent Office: 1,656 Days
• Field of Search: 705 10- 44
• US Class Current: 705/40
• 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 20/40 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A computerized payment system and method is disclosed which provides subscribers with funds based on their income at regular, pre-defined intervals other than those on which they are normally paid. In so doing, it interfaces with the subscriber or with the subscriber and his source of income, and utilizes a computer network to electronically transfer funds and record transactions. Payments may be made with either net pay, or net pay less deductions; may be of advances or distributions; and may be of either fixed or variable amounts.

Claims

1. A method for an automated payment process for providing potential subscribers with funds based on their income at regular, pre-defined intervals, which they are normally paid, comprising the steps of:

(A) Subscribing an individual, including authorizing financial institution transfers, by contacting a service provider, completing authorization forms and returning said forms to the service provider, entering the completed forms into the service provider'"'"'s database, and returning the forms to the potential subscribers for verification of status and income;

(B) Verifying subscription;

(C) Authorizing electronic funds transfer with direct deposit data to the service provider'"'"'s financial institution;

(D) The service provider'"'"'s financial institution electronically transferring funds into a customer account for the potential subscribers, electronically forwarding the remainder of subscribers'"'"'deposit to the Federal Reserve;

(E) The Federal Reserve electronically distributing the rest of the deposit to subscriber'"'"'s own financial institution account, where subscribers may optionally access their funds at their respective financial institutions;

(F) The service provider optionally periodically confirming wage verification data;

(G) The service provider sending a transaction report for each transfer; and

(H) The service provider deducting a service charge from the subscriber'"'"'s account on designated dates.

2. A method for an automated payment process for providing subscribers with funds based on their income at regular, pre-defined intervals, comprising the steps of:

(A) Enrolling a subscriber, including executing direct deposit forms and agreements setting forth an amount to be paid to subscriber;

(B) Sending direct deposit pre-notes to test accuracy;

(C) Electronically depositing designated pay amount into subscriber'"'"'s financial institution account, less service charge;

(D) Direct depositing subscriber'"'"'s pay into service provider'"'"'s financial institution account;

(E) Deducting amount of prepayment and service charge from subscriber'"'"'s pay; and

(F) Electronically transferring a balance of pay into subscriber'"'"'s financial institution account via the Federal Reserve Bank, all deposits being reported by each financial institution or bank to its respective customers in a transaction report, and subscribers optionally accessing their funds at their respective financial institutions.

3. The method of claim, wherein subscriber'"'"'s pay is deposited into service provider'"'"'s financial institution account.

4. The method of claim, wherein the subscriber'"'"'s pay is direct deposited into a subscriber'"'"'s financial institution account.

5. A method for an automated payment process for providing subscribers with funds based on their income at regular, pre-defined intervals, comprising the steps of:

(A) Starting a registration period for a company'"'"'s employees by execution of an agreement between a service provider and the company, which then registers on the service provider'"'"'s website;

(B) Service provider giving company access to a computer network and testing its systems once company has completed a registration process;

(C) Company informing its employees of availability of interim pay service and putting interested employees on direct deposit;

(D) Subscribing an individual employee by employee authorizing company to send appropriate funds to the service provider;

company informing the service provider of any new subscribers;

company, employee/subscriber, and service provider agreeing upon an amount and frequency that subscriber is to be paid;

completing authorization forms and returning said forms to the service provider;

entering the completed forms into the service provider'"'"'s database;

returning the forms to the potential subscriber for verification of status and income; and

company or subscribers themselves registering subscribers;

(E) Verifying subscription;

(F) Exporting employee wage information from company'"'"'s accounting software to service provider'"'"'s software and storing appropriate information in a secure relational database;

(G) In first and third alternating weeks, company notifying service provider of subscribers'"'"' earned but unpaid wage data for the respective week, and service provider notifying company of deposits made to service provider'"'"'s financial institution;

(H) Service provider'"'"'s financial institution depositing funds into the accounts of subscribers who are also its banking customers, and forwarding the rest of the funds to the Federal Reserve Bank;

(I) Federal Reserve Bank distributing the rest of the deposits to subscribers'"'"' bank accounts, all deposits being reported by each financial institution or bank to its respective customers in a transaction report, and subscribers optionally accessing their funds at their respective financial institutions;

(J) Service provider reconciling the transaction report from its financial institution and forwarding a copy to company;

(K) In second and fourth alternating weeks, company exporting wage verification data to service provider and transferring two weeks of subscriber'"'"'s base net pay to service provider'"'"'s bank account, repaying service provider for funds issued to date plus service charges and enabling service provider to pay subscriber'"'"'s current week'"'"'s pay;

(L) Service provider initiating direct deposits from its own financial institution into the accounts of all subscribers who are due to receive intermediate funds that week; and

(M) The service provider deducting a service charge from the subscriber'"'"'s account on designated dates.

6. A method for an automated payment process for providing subscribers with funds based on their income at regular, pre-defined intervals, comprising the steps of:

(A) Starting a registration period for a company'"'"'s employees by optional endorsement of the service provider by the company, with individual employees subscribing with the service provider;

(B) Subscribing an individual employee by employee contracting with service provider and authorizing company to send appropriate funds to service provider'"'"'s financial institution and authorizing service provider'"'"'s financial institution to send appropriate funds to the subscriber'"'"'s account at subscriber'"'"'s financial institution, and entering completed forms into the service provider'"'"'s database;

(C) Verifying subscription and testing the accuracy of direct deposits;

(D) Service provider depositing designated pay into subscriber'"'"'s account on designated days,

(E) Company paying its subscribing employees'"'"' pay, on scheduled company paydays, into service provider'"'"'s account at its financial institution;

(F) Service provider deducting amounts that it is owed for service charges and previous payments, and direct depositing the balance into subscriber'"'"'s account at its financial institution via the Federal Reserve Bank, all deposits being reported by each financial institution or bank to its respective customers in a transaction report, and subscribers optionally accessing their funds at their respective financial institutions.

7. A method for an automated payment process for providing subscribers with funds based on their income at regular, pre-defined intervals, comprising the steps of:

(A) Starting a registration period for a company'"'"'s employees by optional endorsement of service provider by the company, with individual employees subscribing with service provider;

(B) Subscribing an individual employee by employee contracting with service provider and authorizing company to send appropriate funds to the service provider'"'"'s financial institution, authorizing the service provider'"'"'s financial institution to send funds to the subscriber'"'"'s account at subscriber'"'"'s financial institution, and authorizing the transfer from subscriber'"'"'s account at its own financial institution to service provider in an amount equal to previous payments made by service provider to subscriber, plus service charges, and entering the relevant authorization data into the service provider'"'"'s database;

(C) Verifying subscription and testing the accuracy of direct deposits;

(D) Service provider depositing designated pay into subscriber'"'"'s account on designated days, all deposits being reported by each financial institution or bank to its respective customers in a transaction report, and subscribers optionally accessing their funds at their financial institutions;

(E) Company paying its subscribing employees'"'"' pay, on scheduled company paydays, into subscribing employee'"'"'s account at its financial institution in accordance with company'"'"'s wage verification data, all deposits being reported by each financial institution or bank to its respective customers in a transaction report, and subscribers optionally accessing their funds at their respective financial institutions; and

(F) Transferring funds from subscriber'"'"'s account at its financial institution to service provider to reimburse for service charges and previous payments.