Method and system for pushing credit payments as buyer initiated transactions

• US 7,895,119 B2
• Filed: 04/14/2004
• Issued: 02/22/2011
• Est. Priority Date: 05/13/2003
• Status: Active Grant

• Current Assignee: Bank of America Corp.
• Original Assignee: Bank of America Corp.
• Inventors: Praisner, C. Todd
• Primary Examiner(s): Colbert; Ella
• Assistant Examiner(s): Shaikh; Mohammad Z
• Application Number:
  US10/824,290
• Publication Number:
  US 20040230539A1
• Time in Patent Office: 2,505 Days
• Field of Search: 705 35- 42
• 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 20/383 Anonymous user system

Abstract

A method and system are disclosed for pushing credit payments as buyer initiated transactions. The buyer communicates payment instructions to initiate payment of accounts payable items so that the existing credit card infrastructure can be used to make payments to merchants without a credit card transaction being initiated by the merchants. In this way, a buyer can push credit payments into the system without having to communicate with the merchant, and these transactions can be processed as credit transactions with respect to standard settlement procedures, for example, as used by credit card receipt acquirers. This ability to push credit payments provides an advantageous, efficient and powerful solution to handling accounts payable operations, particularly in a corporate environment. And a purchasing management system can be used to manage and control these activities and to allow selection, or automatic selection based upon merchant profiles, of whether to make payments as pushed credit payments or cash/debit transactions.

Claims

1. A method for pushing credit payments as buyer-initiated transactions, comprising:

allowing a buyer to initiate a credit payment as a buyer-initiated transaction comprising;

allowing the buyer to determine payment instructions for an accounts payable, the accounts payable representing a purchase made by the buyer from a merchant;

allowing the buyer to select an acquirer that participates in the transaction, such that the buyer is allowed to send the payment instructions directly to the acquirer;

receiving electronically, from a computer of the buyer, the payment instructions of the buyer initiated transaction to the acquirer as a transaction;

generating the transaction based upon the payment instructions, the transaction representing the buyer-initiated payment; and

settling the transaction from the acquirer to the merchant.

2. The method of claim 1, further comprising utilizing merchant profiles to determine whether the payment instructions should include a credit payment or a debit payment, wherein the generating of the transaction takes place where the payment instructions include a credit payment and wherein a separate step is used of electronically transferring funds from the buyer to the acquirer where the payment instructions include a debit payment.

7. The method of claim 1, wherein the acquirer comprises an entity that buys credit card receipts from merchants.

3. A system for pushing credit payments as buyer initiated transactions, comprising:

a purchasing management system associated with a buyer to initiate a credit payment as a buyer-initiated transaction, the buyer having an accounts payable with a merchant and the buyer having an account at an issuing bank;

an acquirer computer system configured to receive electronically payment instructions directly from the purchasing management system as transaction, the buyer being able to select an acquirer that participates in the transaction, such that the buyer is allowed to send the payment instructions directly to the acquirer;

wherein the acquirer computer system is further configured to generate the transaction based upon the payment instructions, the transaction representing the buyer initiated payment; and

wherein the acquirer computer system is further configured to settle the transaction by the acquirer computer system making payment to the merchant and working with a card processor and the issuing bank to receive funds from the account of the buyer at the issuing bank.

4. The system of claim 3, wherein the purchasing management system is configured to utilize merchant profiles to determine whether the payment instructions should include a credit payment or a debit payment, such that the transaction is generated where the payment instructions include a credit payment and such that funds are electronically transferred from the buyer to the acquirer where the payment instructions include a debit payment.

8. The system of claim 3, wherein the acquirer computer system being associated with an entity that buys credit card receipts from merchants.

5. Apparatus for pushing credit payments as buyer initiated transactions, comprising:

means for allowing a buyer to initiate a credit payment as a buyer-initiated transaction comprising;

means for allowing the buyer to determine payment instructions for an accounts payable, the accounts payable representing a purchase made by a the buyer from a merchant;

means for allowing the buyer to select an acquirer that participates in the transaction, such that the buyer is allowed to send the payment instructions directly to the acquirer;

means for communicating electronically, from the buyer, the payment instructions of the buyer-initiated transaction to an the acquirer as a transaction;

means for generating the transaction based upon the payment instructions, the transaction representing the buyer initiated payment; and

settling the transaction from the acquirer to the merchant.

6. The apparatus of claim 5, further comprising means for utilizing merchant profiles to determine whether the payment instructions should include a credit payment or a debit payment, wherein the generating step is used where the payment instructions include a credit payment and wherein a separate step is used of electronically transferring funds from the buyer to the acquirer where the payment instructions include a debit payment.

9. The apparatus of claim 5, wherein the acquirer comprises an entity that buys credit card receipts from merchants.