Method and system for processing internet payments using the electronic funds transfer network

• US 7,962,409 B2
• Filed: 10/09/2009
• Issued: 06/14/2011
• Est. Priority Date: 05/03/1999
• Status: Expired due to Term

• 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: Re, S. Richard, O'Leary, Denis, Burney, Jessica, Hoffman, Adam, D'Agostino, Vincent
• Primary Examiner(s): PATEL, JAGDISH
• Application Number:
  US12/576,463
• Publication Number:
  US 20100057552A1
• Time in Patent Office: 613 Days
• Field of Search: 705/39
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/22 Payment schemes or models
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• 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 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0613 Third-party assisted
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered

Abstract

A system and method for effectuating Electronic Funds Transfer credit messages. The main structural components of the system include a Payment Portal Processor (PPP), an Internet Pay Anyone (IPA) Account, a Virtual Private Lockbox (VPL) and an associated Account. Reporter, the existing EFT networks, and a cash card for accessing a VPL or IP account. The PPP is a software application that provides a secure portal for accessing (linking to) either the user'"'"'s Demand Deposit Account (DDA) or an IPA account and can be combined with the functionality of a traditional digital Wallet. Consumers use a PPP enhanced Wallet to fund their account, shop on the web, pay bills, pay anyone, store electronic receipts and transaction history, and check their recent PPP enhanced Wallet activity. The IPA account is a special purpose account with limited functionality for making electronic payments in the form of EFT credit messages. The VPL is a limited function receive only account for receiving electronic payments through the EFT. The Account Reporter is a portal to view transaction history and balance of IPA and VPL accounts, provide online, real-time transaction reports, and to reconciles accounts receivable/purchase records against incoming EFT payment records. A physical card can be associated with either an IPA or VPL account in order to provide PIN debit capability.

Claims

1. A computer-implemented method for effectuating an electronic payment between a transferor and a transferee using an electronic funds transfer (EFT) network, the transferor having a transferor account at a transferor institution and the transferee having a transferee account at a transferee institution, the method comprising the steps of:

receiving an incoming payment request from the transferor at a payment administration processor hosted by a host server at a host institution, the payment request containing payment information including an identification of the transferor institution, the transferor account, the transferee institution, and quantity of funds to be transferred;

generating a payment order using a payment application program stored in a memory of the host server, the payment application program executed by the payment administration processor, the processing conducted based on the incoming payment request;

storing loyalty program information for the transferor and providing a mechanism for updating the stored loyalty program information-based on the payment information; and

sending the payment order over as communication network from the payment administration processor in order to facilitate payment to the transferee institution to enable the transferor institution to credit the transferee account with the quantity of funds, whereby funds are electronically transferred from the transferor institution to the transferee institution.

2. The method of claim 1, wherein the executed payment application program enables a real time credit to be transmitted from the transferor institution to the transferee institution over EFT network.

3. The method of claim 1, wherein the transferee institution and the transferor institution are distinct and unrelated institutions.

4. The method of claim 1, wherein the executed payment application program generates and stores payment confirmations for the transferee.

5. The method of claim 1, further composing generating a payment record, the payment record including a transaction identifier and an identification of the transferee account.

6. The method of claim 1, further comprising facilitating identification of the transferee for the transferor by providing electronically accessible transferee information on the host server, the transferee information including a payee account identifier.

7. The method of claim 1, wherein generating the payment order comprises generating a payment authorization in response to the transferor request, the payment order including accessed transferee information stored on the host server and an amount of payment equal to the quantity of funds to be transferred.

8. The method of claim 7, further comprising transmitting the payment authorization to the transferor institution.

9. The method of claim 8, further comprising debiting the transferor account by the amount of the payment.

10. The method of claim 9, further comprising transmitting from the transferor institution to the transferee institution through the EFT network an EFT credit message representing, a credit in the amount of the payment and crediting the transferee account in the amount of the payment in response to the receipt of the EFT credit message.

11. The method of claim 1, further comprising retrieving the transferee information from an Internet site provided by the host server.

12. The method of claim 11, wherein the transferee information is pushed to the transferor from the Internet site.

13. The method of claim 12, wherein the Internet site contains a directory of transferee information for a plurality of transferees.

14. A computer-implemented system for effectuating an electronic payment between a transferor and a transferee using an electronic funds transfer (EFT) network, the transferor having a transferor account at a transferor institution and the transferee having a transferee account at a transferee institution, the system comprising:

a host server comprising, a payment processor, a memory and an input interface; and

a payment application program stored by the memory of the host server, the payment application program receiving data through the input interface and processing the input data upon execution by the payment processor, the executed payment application program performing the steps of;

receiving an incoming payment request from the transferor, the payment request containing payment information including an identification of the transferor institution, the transferor account, the transferee institution, and quantity of funds to be transferred;

generating a payment order based on the payment request;

storing loyalty program information for the transferor and providing a mechanism for updating the stored loyalty program information based on the payment information; and

sending the payment order from the payment processor over a communication network in order to facilitate payment to the transferee institution to enable the transferor institution to credit the transferee account with the quantity of funds, whereby funds are electronically transferred from the transferor institution to the transferee institution.

15. The system of claim 14, wherein the executed payment application program enables a real time credit to be transmitted from the transferor institution to the transferee institution over EFT network.

16. The system of claim 14, wherein the transferee institution and the transferor institution are distinct and unrelated institutions.

17. The system of claim 14, wherein the executed payment application program generates and stores payment confirmations for the transferee.

18. The system of claim 14, wherein the executed payment application program further generates a payment record, the payment record including a transaction identifier and an identification of the transferee account.

19. The system of claim 14, further comprising electronically accessible transferee information on the host server, the transferee information including a payee account identifier and facilitating identification of the transferee for the transferor.

20. The system of claim 19, wherein generating the payment order comprises generating a payment authorization in response to the transferor request, the payment order including accessed transferee information on the host server and an amount of the payment.

21. The system of claim 20, further comprising transmitting the payment authorization to the transferor institution.

22. The system of claim 21, further comp sing debiting the transferor account by the amount of the payment.

23. The system of claim 14, further comprising retrieving the transferee information from an Internet site provided by the host, server.

24. The system of claim 23, wherein the Internet site contains a directory of transferee information for a plurality of transferees.