Payment account monitoring system and method

• US 7,958,050 B2
• Filed: 07/02/2007
• Issued: 06/07/2011
• Est. Priority Date: 07/02/2007
• Status: Active Grant

• Current Assignee: Early Warning Services, LLC (Bank of America Corp.)
• Original Assignee: Early Warning Services, LLC (Bank of America Corp.)
• Inventors: Finch, Paul
• Primary Examiner(s): Kazimi; Hani
• Assistant Examiner(s): Scarito; John D
• Application Number:
  US11/772,604
• Publication Number:
  US 20090012889A1
• Time in Patent Office: 1,436 Days
• Field of Search: 705/35, 705/39, 705/40
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A network includes an account status system for checking the status of checking accounts used to make payments, and a payment account monitoring system that includes linking files that store, for individual credit card accounts, the account numbers for checking accounts used to pay the credit card accounts. The monitoring system periodically retrieves checking account numbers from the linking files and checks the account numbers at the status system. If a negative status is indicated at the status system, an alert is provided to the credit card company.

Claims

1. A computerized method for monitoring the status of a payment account against which a recurring payment has been drawn, via a monitoring file which is continuously updated as payments are made to a recipient by a payer, the method comprising:

providing, as part of a computer system, a status database that stores status information on payment accounts, the status information comprising an account status and/or an account condition associated with each of the payment accounts, the status database operated by or on behalf of an entity other than the recipient or the payer;

updating the status database in the computer system if there is a change in the status information for any of the payment accounts;

providing, as part of the computer system, a monitoring file that stores a plurality of recipient account numbers and a plurality of payment account numbers, and that associates at least one of the plurality of recipient account numbers to at least one of the plurality of payment account numbers;

receiving, at the computer system, a recipient account number and a payment account number from the recipient in response to a payment toward a recurring payment from the payer to the recipient;

updating the monitoring file, via the computer system, by comparing the received payment account number to any payment account numbers previously stored in association with the received recipient account number in the monitoring file and by storing the received payment account number in association with the received recipient account number in the monitoring file if the received payment account number is a new payment account number; and

subsequent to and independently of said updating of the monitoring file to periodically accessing, via the status database of the computer system, the status information using any payment accounts numbers stored in association with any recipient account number of the plurality of recipient account numbers in the updated monitoring file, wherein said periodic access occurs prior to a due date for an expected recurring payment and before a date on which the expected recurring payment is made on said any recipient account number, so that notification can be sent to the recipient if the status information has changed for said any payment account numbers stored in association with said any recipient account number in the updated monitoring file.

2. The method of claim 1, wherein said any recipient account number is a creditor account number.

3. The method of claim 2, further comprising:

notifying the creditor of a change in status information if the status information has changed for said any payment account numbers stored in association with said creditor account number.

4. The method of claim 2, wherein the creditor account number is a credit card account number.

5. The method of claim 2, wherein the creditor account number is a loan account number to which ACH transfers are made from said any payment account numbers stored in association with the loan account number.

6. The method of claim 2, wherein a checking account number is stored in association with said creditor account number as one of said any payment account numbers.

7. The method of claim 2, further comprising:

determining whether the status information for said any periodically accessed payment account numbers has been updated to reflect a change in status information; and

notifying the creditor if there has been a change in the status information, so that the creditor is aware of the change in status information before the due date of the expected recurring payment.

8. The method of claim 1, wherein the updating of the status database is periodic.

9. The method of claim 8, wherein periodic is daily.

10. The method of claim 1, wherein the status database is updated by receiving from participating banks a current status of each of the payment accounts maintained at said participating banks.

11. The method of claim 10, wherein the status database is further updated by requesting the participating banks provide the current status of the payment accounts maintained by other banks which have had items returned when drawn against the payment accounts of said other banks.

12. The method of claim 1, wherein said periodic access occurs daily using the updated monitoring file.

13. The method of claim 1, wherein said periodic access is based on condition data stored in the monitoring file.

14. The method of claim 13, wherein the condition data is based on the due date associated with the expected recurring payment to be made on said any recipient account number.

15. The method of claim 1, wherein the status information comprises one or more of the following:

open and valid;

closed;

has had checks returned for insufficient funds;

has had a change in the account address;

and

has had a change relating to account holders.

16. The method of claim 1, wherein said updating the monitoring file further includes periodically receiving batched linking data from the recipient, the batched linking data including a plurality of recipient account numbers and one or more payment account numbers linked to each of said plurality of recipient account numbers.

17. The method of claim 1, further comprising storing the received payment account number in association with the received recipient account number in the monitoring file when the payment is a first payment being made by the payer to the recipient on the received recipient account number.

18. A computer system for monitoring the status of payment accounts against which recurring payments have been drawn, via a monitoring file which is continuously updated as payments are made by a payer for the benefit of a creditor, the system comprising:

a status database, on a storage medium of an account status system, that stores status information on payment accounts, the status information comprising an account status and/or an account condition associated with each of the payment accounts, the status database operated by or on behalf of an entity other than the payer or the creditor;

a monitoring file, on a storage medium of a monitoring system, that associates at least one creditor account identifier to at least one payment account identifier, wherein the association between the at least one creditor account identifier and the at least one payment account identifier is updated when a creditor account identifier and a payment account identifier are received by the monitoring system in response to a payment toward a recurring payment from the payer to the creditor and when a comparison of the received payment account identifier to any payment account identifiers previously stored in association with the received creditor account identifier indicates that the received payment account identifier is a new payment account identifier, said update including storing the received payment account identifier in association with the received creditor account identifier in the monitoring file and a processor configured to periodically access, via the status database, the status information using any payment account identifiers stored in association with any creditor account identifier of the at least one creditor account identifier in the updated monitoring file, wherein said periodic access occurs subsequent to and independently of said update to the monitoring file, prior to a due date for an expected recurring payment and before a date on which the expected recurring payment is made on said any creditor account identifier, so that notification can be sent to the creditor if the status information has changed for said any payment account identifiers stored in association with said any creditor account identifier in the updated monitoring file.

19. The system of claim 18, wherein said any creditor account identifier is a credit card account identifier, and the creditor is a credit card company managing the credit card account identifier.

20. The system of claim 18, wherein said any creditor account identifier is a loan account identifier to which ACH transfers are made from said any payment account identifiers stored in association with the loan account identifier.

21. The system of claim 18, wherein a checking account identifier is stored in association with said any creditor account identifier as one of said any payment account identifiers.

22. The system of claim 18, wherein the processor is further configured to provide any accessed status information to the creditor.

23. The system of claim 18, wherein the processor is further configured to:

determine whether the status information for said any periodically accessed payment account identifiers has been updated to reflect a change in status information; and

notify the creditor if there has been a change in the status information, so that the creditor is aware of the change in the status information before the due date of the expected recurring payment.

24. The system of claim 18, further comprising a database management system configured to update the status database periodically.

25. The system of claim 24, wherein periodically is daily.

26. The system of claim 18, further comprising a database management system configured to update the status database in response to receiving from participating banks a current status of each of the payment accounts maintained at said participating banks.

27. The system of claim 26, wherein the database management system is further configured to update the status database in response to requesting the participating banks provide the current status of the payment accounts maintained by other banks which have had payment refused for checks drawn against the payment accounts of said other banks.

28. The system of claim 27, wherein said periodic access occurs daily using the updated monitoring file.

29. The system of claim 18, wherein said periodic access is based on condition data stored in the monitoring file.

30. The system of claim 29, wherein the condition data is based on the due date associated with the expected recurring payment to be made on said any creditor account identifier.

31. The system of claim 18, further comprising a database management system configured to update the status database with status information comprising one or more of the following:

open and valid;

closed;

has had checks returned for insufficient funds;

has had a change in the account address;

and

has had a change relating to account holders.