System and method for selectable funding of electronic transactions

• US 7,801,814 B2
• Filed: 09/08/2006
• Issued: 09/21/2010
• Est. Priority Date: 11/06/2000
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Wallace, William Scott, Sheehan, Mark Robert, Cataline, Glen R., Rielly, William Smith
• Primary Examiner(s): Karmis; Stefanos
• Application Number:
  US11/517,268
• Publication Number:
  US 20070005496A1
• Time in Patent Office: 1,474 Days
• Field of Search: 705/35, 705/39, 705/40, 705/1
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system for transferring funds to pay bills and to and from selected accounts on an optimized is provided. A mediation engine may manage the payments made to selected payees, including by scheduling the payments and selecting sources for funds. A rules-based optimizer may automatically select the least-cost or other most efficient or desirable transaction, given the customer'"'"'s available funds, types of funds and payment date. All payment providers and payees may manipulated using one seamless view. A customer service representative may also view the transfers.

Claims

1. A system for managing a transmission of funds, based on a request for the transmission of funds, the system comprising:

a first input interface for communicating first information to a processor, the first information identifying at least one of a payment source and a payee account;

a second input interface for communicating second information to the processor, the second information containing affiliation information; and

the processor communicating with the first input interface and the second input interface so as to receive the first information and the second information;

the processor performing an affiliation test, using the affiliation information, to determine affiliates of the payment source and to determine affiliations of a payee, the payee being associated with the payee account;

the processor, based on the affiliation test, determining from a set of payment mechanisms a reduced set of payment mechanisms, the reduced set being a set of possible payment mechanisms that could effect the transmission of funds;

the processor performing an optimization determination so as to determine a selected payment mechanism, out of the reduced set of payment mechanisms, to use to transfer the funds from the payment source to the payee account, the selected payment mechanism being the optimal payment mechanism based on considered parameters, the considered parameters including the first information and the affiliates of the payment source determined by the affiliation test;

the processor performing the transmission of funds using the selected payment mechanism.

2. The system of claim 1, in which the affiliation test, which is performed by the processor, includes determining a common affiliate of the payee and the payment source.

3. The system of claim 1, in which the affiliation test, which is performed by the processor, includes determining a common affiliate of the payment source and the payee account.

4. The system of claim 1, the considered parameters include at least one of fulfilling a transaction schedule and minimizing a payment penalty.

5. The system of claim 1, the considered parameters include fulfilling a contractual obligation.

6. The system of claim 1, the considered parameters include maximizing volume discounts.

7. The system of claim 1, the considered parameters include aggregating transaction amounts.

8. The system of claim 1, the optimization comprises minimizing a cost variable, and the cost variable comprises at least one of a transaction cost charged to a payment initiator and an internal cost absorbed by a payment enabler.

9. The system of claim 1, in which the payment source includes at least one of a direct deposit account, a source credit account, a mortgage account, a securities account, a money market account, a micro payment account, an overdraft account and a stored value account;

and

the payee account includes at least one of a utility account, a mortgage account, a payee credit account, and a contribution account.

10. The system of claim 1, the first input interface receives first information from a desktop graphical user interface.

11. The system of claim 1, the at least one payment source comprises at least one selected from the group consisting of a checking or other demand deposit account (DDA), money market fund, securities account, stored value account, credit card account, currency account, overdraft line of credit, micro payment account, and line of credit.

12. The system of claim 1, the processor further performing a second optimization determination, the second optimization determination selecting the payment source, from a plurality of payment sources.

13. The system of claim 1, the system allows the payment request initiator to select a payment source from a plurality of payment sources.

14. The system of claim 1, the processor aggregating the transaction with other transactions so as to realize economies of scale, the economies of scale being considered in the optimization determination.

15. The system of claim 1, where the payment source includes multiple payment sources.

16. A system for managing a transmission of funds, based on a request for the transmission of funds, the system comprising:

a first input interface for communicating first information to a processor, the first information identifying at least one of a payment source and a payee account;

a second input interface for communicating second information to the processor, the second information containing affiliation information; and

the processor communicating with the first input interface and the second input interface so as to receive the first information and the second information;

the processor performing an affiliation test, using the affiliation information, to determine affiliates of the payee account and the payment source;

the processor, based on the affiliation test, determining from a set of payment mechanisms a reduced set of payment mechanisms, the reduced set being a set of possible payment mechanisms that could effect the transmission of funds;

the processor performing an optimization determination so as to determine a selected payment mechanism, out of the reduced set of payment mechanisms, to use to transfer the funds from the payment source to the payee account, the selected payment mechanism being the optimal payment mechanism based on considered parameters, the considered parameters including the first information and the affiliates of the payee account determined by the affiliation test;

the processor performing the transmission of funds using the selected payment mechanism.

17. A method for managing a transmission of funds using a processor, in conjunction with a request for the transmission of funds, the method comprising:

communicating first information to the processor, the first information identifying at least one of a payment source and a payee account;

communicating second information to the processor, the second information containing affiliation information; and

receiving, by the processor, the first information and the second information;

performing an affiliation test, by the processor, using the affiliation information, to determine affiliates of the payment source and to determine affiliations of a payee, the payee being associated with the payee account;

based on the affiliation test, the processor determining from a set of payment mechanisms a reduced set of payment mechanisms, the reduced set being a set of possible payment mechanisms that could effect the transmission of funds;

performing an optimization determination, by the processor, so as to determine a selected payment mechanism, out of the reduced set of payment mechanisms, to use to transfer the funds from the payment source to the payee account, the selected payment mechanism being the optimal payment mechanism based on considered parameters, the considered parameters including the first information and the affiliates of the payment source determined by the affiliation test;

performing the transmission of funds, by the processor, using the selected payment mechanism.