Instant availability of electronically transferred funds
First Claim
1. An automated method of determining whether to release funds from an ACH (Automated Clearinghouse) entry before the ACH entry clears, the method comprising:
- receiving from a user a request to transfer value;
retrieving a profile of the user;
calculating, using one or more processors, a risk using one or more details from the user profile by computing a risk score, said risk is inversely proportional to said risk score, the risk score indicating a perceived risk involved with releasing funds before the ACH entry clears;
if said risk is less than an instant ACH threshold, allowing the user to fund the transfer of value with an instant ACH entry;
if said risk is greater than the instant ACH threshold, allowing the user to fund the transfer of value with one of an electronic check, a normal ACH entry, and a credit card; and
if the transfer of value is to be funded with the instant ACH entry;
initiating a first ACH entry to obtain funds from a financial account of the user; and
providing the user the funds before the first ACH entry clears.
1 Assignment
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Accused Products
Abstract
A system and method for making proceeds of an ACH (Automated Clearinghouse) transaction available to a user before the transaction is completed. The system may be part of an on-line system or traditional merchant configured to facilitate payments or fund transfers from users. A user requests the transfer of funds to an entity (e.g., another user, a merchant, the user'"'"'s account with the system) via an ACH entry. The system calculates a risk associated with the user, while considering various data (e.g., number of previous ACH entries, how many failed, how many succeeded, amount of the transfer). If the risk is low enough, the ACH entry is initiated and the desired funds are released for the transfer even before the ACH entry clears. The ACH entry may be presented as a default choice for funding the transfer.
250 Citations
64 Claims
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1. An automated method of determining whether to release funds from an ACH (Automated Clearinghouse) entry before the ACH entry clears, the method comprising:
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receiving from a user a request to transfer value; retrieving a profile of the user; calculating, using one or more processors, a risk using one or more details from the user profile by computing a risk score, said risk is inversely proportional to said risk score, the risk score indicating a perceived risk involved with releasing funds before the ACH entry clears; if said risk is less than an instant ACH threshold, allowing the user to fund the transfer of value with an instant ACH entry; if said risk is greater than the instant ACH threshold, allowing the user to fund the transfer of value with one of an electronic check, a normal ACH entry, and a credit card; and if the transfer of value is to be funded with the instant ACH entry; initiating a first ACH entry to obtain funds from a financial account of the user; and providing the user the funds before the first ACH entry clears. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30)
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31. A computer readable storage medium storing instructions that, when executed by a computer, cause the computer to perform a method of determining whether to release funds from an ACH (Automated Clearinghouse) entry before the ACH entry clears, the method comprising:
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receiving from a user a request to transfer value; retrieving a profile of the user; calculating a risk using one or more details from the user profile by computing a risk score, said risk is inversely proportional to said risk score, the risk score indicating a perceived risk involved with releasing funds before the ACH entry clears; if said risk is less than an instant ACH threshold, allowing the user to fund the transfer of value with an instant ACH entry; if said risk is greater than the instant ACH threshold, allowing the user to fund the transfer of value with one of an electronic check, a normal ACH entry, and a credit card; and if the transfer of value is to be funded with an instant ACH entry; initiating a first ACH entry to obtain funds from a financial account of the user; and providing the user the funds before the first ACH entry clears.
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32. A method of releasing funds of an ACH (Automated Clearing House) debit before the ACH debit is completed, the method comprising:
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receiving a value transfer request at a facilitating organization from a first entity, said value transfer comprising a transfer of a first value to a second entity; retrieving data concerning one or more previous ACH entries initiated for the first entity; identifying a rejection ratio regarding said previous ACH entries, wherein said rejection ratio comprises a ratio of the number of failed entries in said previous ACH entries to the number of said previous ACH entries; identifying a completion count comprising the number of completed entries in said previous ACH entries; identifying an amount ratio comprising the ratio of the first value to an average value of said previous ACH entries; calculating, using one or more processors, a risk score from a plurality of factors, including said rejection ratio, said completion count, and said amount ratio, the risk score indicating a perceived risk involved with releasing funds before the ACH debit clears; if said risk score exceeds a first threshold; initiating a first ACH debit entry for the first value; updating the data to reflect the first ACH debit entry; and releasing the first value before the first ACH debit entry clears; and if said risk score does not exceed said first threshold, initiating a normal ACH debit entry or an electronic check for the first value. - View Dependent Claims (33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45)
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46. A computer readable storage medium storing instructions that, when executed by a computer, cause the computer to perform a method of releasing funds of an ACH (Automated Clearing House) debit before the ACH debit is completed, the method comprising:
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receiving a value transfer request at a facilitating organization from a first entity, said value transfer comprising a transfer of a first value to a second entity; retrieving data concerning one or more previous ACH entries initiated for the first entity; identifying a rejection ratio regarding said previous ACH entries, wherein said rejection ratio comprises a ratio of the number of failed entries in said previous ACH entries to the number of said previous ACH entries; identifying a completion count comprising the number of completed entries in said previous ACH entries; identifying an amount ratio comprising the ratio of the first value to an average value of said previous ACH entries; calculating a risk score from a plurality of factors, including said rejection ratio, said completion count, and said amount ratio, the risk score indicating a perceived risk involved with releasing funds before the ACH debit clears; if said risk score exceeds a first threshold; initiating a first ACH debit entry for the first value; updating the data to reflect the first ACH debit entry; and releasing the first value before the first ACH debit entry clears; and if said risk score does not exceed said first threshold, initiating a normal ACH debit entry or an electronic check for the first value.
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47. A computer-implemented method of releasing funds of an ACH (Automated Clearing House) entry before the ACH entry is completed, the method comprising:
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receiving at a facilitating organization a value transfer request from a first entity, said value transfer comprising a transfer of a first value to a second entity; configuring a risk equation for determining a risk associated with releasing the first value before settlement of an ACH entry to retrieve the first value; evaluating, using one or more processors, said risk equation to determine a risk score, said risk is inversely proportional to said risk score, the risk score indicating a perceived risk involved with releasing funds before the ACH entry is settled; if said risk is lower than a first threshold; initiating the ACH entry; and transferring the first value to the second entity before the ACH entry is settled; and if said risk is not lower than the first threshold; initiating the ACH entry; and transferring the first value to the second entity after the ACH entry is settled. - View Dependent Claims (48, 49, 50, 51, 52, 53, 54, 55, 56, 57, 58, 59, 60, 61, 62, 63, 64)
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Specification