Method for processing internet point of sale payment using automated teller machine switch settlement

• US 8,190,521 B2
• Filed: 05/06/2011
• Issued: 05/29/2012
• 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: O'Leary, Denis, D'Agostino, Vincent, Re, S. Richard, Burney, Jessica, Hoffman, Adam
• Primary Examiner(s): Patel, Jagdish
• Application Number:
  US13/102,113
• Publication Number:
  US 20110208652A1
• Time in Patent Office: 389 Days
• Field of Search: 705/35, 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

Embodiments of the invention include a method and system for effectuating an electronic payment between a payor and a payee using an Electronic Funds Transfer (EFT) network. The method is implemented by a system having multiple processors. The payor may hold a payor account at a payor institution and the payee may have a payee account at a payee institution. The method includes generating a payment authorization identifying the payee institution, the payee account, and an amount of the payment and transmitting the payment authorization to the payor institution. The method further includes debiting the payor account by the amount of the payment; transmitting from the payor institution to the payee institution through the EFT network an EFT credit message representing a credit in the amount of the payment; and crediting the payee account in the amount of the payment in response to the receipt of the EFT credit message.

Claims

1. A method for effectuating electronic payments for online purchases made by a consumer from a merchant, the method comprising the steps of:

identifying a purchase amount, consumer information, and merchant information, using computer processing components, the merchant information identifying a merchant'"'"'s account holding institution and a merchant'"'"'s account at the merchant'"'"'s account holding institution, the consumer information including a consumer'"'"'s account and a consumer'"'"'s account holding institution;

forming, using the computer processing components, a payment authorization identifying the purchase amount and the merchant information;

transmitting the payment authorization to the consumer'"'"'s account holding institution maintaining the consumer'"'"'s account;

debiting the consumer'"'"'s account by the purchase amount;

generating an Electronic Funds Transfer (EFT) credit instruction for crediting the merchant'"'"'s account by the purchase amount;

transmitting the Electronic Funds Transfer credit instruction to the merchant'"'"'s account holding institution through an Electronic Funds Transfer network; and

crediting the merchant'"'"'s account by the purchase amount.

2. The method as recited in claim 1, wherein the consumer is a business.

3. The method as recited in claim 1, wherein the identifying step further comprises the step of retrieving the merchant information from an Internet site.

4. The method as recited in claim 3, wherein the Internet site is an Internet site of the merchant.

5. The method as recited in claim 4, wherein the merchant information is pushed to the consumer from the merchant'"'"'s Internet site.

6. The method as recited in claim 4, wherein the merchant information is pulled by the consumer from the merchant'"'"'s Internet site.

7. The method as recited in claim 3, wherein the Internet site contains a directory of payee in formation for a plurality of payees and wherein the step of retrieving the merchant information further comprises the step of selecting the merchant information from the directory.

8. The method as recited in claim 1, wherein the identifying step further comprises the step of retrieving the merchant information from a directory containing merchant information for a plurality of merchants.

9. The method as recited in claim 1, wherein the identifying step further comprises the step of retrieving the merchant information from a pull down menu displayed on a device employed by the consumer.

10. The method as recited in claim 1, wherein the identifying step further comprises the step of the consumer keying the merchant information into a device employed by the consumer.

11. The method as recited in claim 1, wherein the step of transmitting the payment authorization to the consumer'"'"'s account holding institution further comprises the step of transmitting the payment authorization through the Internet.

12. The method as recited in claim 11, wherein the step of transmit ting the payment authorization through the Internet is accomplished with a Wallet software application.

13. The method as recited in claim 11, further comprising the step of providing security with respect to the transmission of the payment authorization through the Internet.

14. The method as recited in claim 13, wherein the step of providing security further comprises a step of authentication.

15. The method as recited in claim 14, wherein the step of providing security further comprises encrypting the payment authorization.

16. The method as recited in claim 11, wherein the step of transmitting the payment authorization to the consumer'"'"'s account holding institution is accomplished using a personal computer.

17. The method as recited in claim 11, wherein the step of transmitting the payment authorization to the consumer'"'"'s account holding institution is accomplished using an ATM machine.

18. The method as recited in claim 11, wherein the step of transmitting the payment authorization to the consumer'"'"'s account holding institution is accomplished using an Internet enabled Kiosk.

19. The method as recited in claim 11, wherein the step of transmitting the payment authorization to the consumer'"'"'s account holding institution is accomplished by using an interactive television.

20. The method as recited in claim 1, wherein the step of transmitting the payment authorization to the consumer'"'"'s financial institution further comprises the step of transmitting the payment request by telephone.

21. The method as recited in claim 1, wherein customer'"'"'s account holding institution and the merchant'"'"'s account holding institution are banks.

22. The method as recited in claim 1, wherein the step of transmitting the payment authorization to the consumer'"'"'s account holding institution further comprises the step of transmitting the payment authorization by Personal Digital Assistant.

23. The method as recited in claim 1, wherein the merchant'"'"'s account is a receive only account.

24. The method as recited in claim 1, wherein the customer'"'"'s account holding institution is a bank, and wherein the consumer'"'"'s account is a demand deposit account.

25. The method as recited in claim 1, wherein the consumer'"'"'s account is an account only used for making payments using the method of the present invention.

26. The method as recited in claim 1, wherein the consumer'"'"'s account is an account only used for making payments using the method of the present invention.

27. The method as recited in claim 1, wherein the consumer'"'"'s account is funded from a different account maintained by the consumer.

28. The method as recited in claim 27, wherein the different account is a demand deposit account.

29. The method as recited in claim 1, further comprising the step of confirming the accuracy of the identification of the merchant'"'"'s account holding institution and the merchant account prior to the step of transmitting the EFT credit message.

30. The method as recited in claim 29, wherein the confirming step is accomplished using the EFT network.

31. The method as recited in claim 1, further comprising the step of transmitting a payment confirmation to the merchant confirming transmission of the EFT credit message.

32. A system for effectuating electronic payments for online purchases made by a consumer from a merchant, the system comprising:

a consumer device identifying a purchase amount, consumer information, and merchant information, the merchant information identifying a merchant'"'"'s financial institution and a merchant'"'"'s account at the merchant'"'"'s financial institution, the consumer information including a consumer'"'"'s account and a consumer'"'"'s account holding institution, the consumer device further transmitting a payment authorization to the consumer'"'"'s account holding institution maintaining the consumer'"'"'s account, the payment authorization identifying the purchase amount and the merchant information;

a first processor located at the consumer'"'"'s financial institution, the first processor receiving the payment authorization from the consumer device and generating an Electronic Funds Transfer (EFT) credit instruction for crediting the merchant'"'"'s account by the purchase amount;

an Electronic Funds Transfer network coupled to the first processor, wherein the first processor transmits the Electronic Funds Transfer credit instruction to the merchant'"'"'s financial institution through the Electronic Funds Transfer network; and

a second processor located at the merchant'"'"'s financial institution, the second processor receiving the Electronic Funds Transfer credit instruction and crediting the merchant'"'"'s account by the purchase amount.

33. The system as recited in claim 32, further comprising a first software component and a second software component, each of the first and second software components being controlled by the consumer device, wherein the first software identifies the purchase amount and the merchant information and wherein the second software component transmits the payment authorization to the consumer'"'"'s financial institution.

34. The system as recited in claim 33, further comprising a server, wherein the first software component resides on the consumer device and wherein the second software component resides on a server.

35. The system as recited in claim 34, wherein the server is operated by or on behalf of the consumer'"'"'s financial institution.

36. The system as recited in claim 33, wherein the first and second software components comprise an electronic Wallet.

37. The system as recited in claim 32, further comprising a server hosting an Internet site of the merchant, wherein the consumer device is coupled to the merchant'"'"'s Internet site and wherein the consumer device identifies the purchase amount and the merchant information from merchant'"'"'s Internet site.

38. The system as recited in claim 32, further comprising a security module coupled to the consumer device, the security module providing security with respect to the transmission of the payment authorization.

39. The system as recited in claim 38, wherein the security module performs authentication procedures.

40. The system as recited in claim 38, wherein the security module encrypts the payment authorization.

41. The system as recited in claim 32, wherein the consumer device is a personal computer.

42. The system as recited in claim 32, wherein the consumer device is an Internet enabled ATM machine.

43. The system as recited in claim 32, wherein the consumer device is an Internet enabled Kiosk.

44. The system as recited in claim 32, wherein the consumer device is an interactive television.

45. The system as recited in claim 32, wherein the consumer device is a telephone.

46. The system as recited in claim 45, wherein the telephone is a cellular telephone.

47. The system as recited in claim 32, wherein the consumer device is a Personal Digital Assistant.

48. A method for a user to electronically pay a bill from a biller, the user having a user bank account at a user'"'"'s bank, the method comprising the steps of:

generating a bill payment authorization using computer processing components, the payment authorization identifying a bank of the biller, a bank account of the biller at the biller'"'"'s bank and an amount of the bill payment;

identifying the user bank account and the user'"'"'s bank;

transmitting the bill payment authorization request to the user'"'"'s bank;

debiting the user bank account by the amount of the bill payment;

transmitting through an Electronic funds Transfer network a Electronic Funds Transfer credit message representing a credit in the amount of the bill payment from the user'"'"'s bank to the biller'"'"' bank; and

crediting the biller'"'"'s bank account in the amount of the bill payment in response to the receipt of the Electronic Funds Transfer credit message.

49. The method as recited in claim 48, wherein the user is a consumer.

50. The method as recited in claim 48, wherein the user is a business.

51. The method as recited in claim 48, further comprising the steps of:

the user connecting to the Internet;

the user connecting to an Internet website of the biller; and

the biller'"'"'s website transmitting to the user a bill payment message, the bill payment message identifying the biller'"'"'s bank, the biller'"'"'s bank account and an amount of the bill payment, wherein the bill payment authorization is generated in response to the bill payment message.

52. The method as recited in claim 48, further comprising the step of notifying the user of a bill to be paid.

53. The method as recited in claim 52, where in the step of notification further comprises the step of notifying the user electronically through an electronic notification.

54. The method as recited in claim 53, wherein the electronic notification is an E-mail.

55. The method as recited in claim 52, further comprising the step of incorporating a hotlink in the E-mail to the biller'"'"'s website, wherein when the user selects the hotlink, the user is automatically connected to the biller'"'"'s website.

56. The method as recited in claim 48, further comprising the step of generating a payment record in response to the crediting of the biller'"'"'s account.

57. The method as recited in claim 56, wherein the biller maintains an account receivable system, the account receivable system containing information reflecting a billing account associated with the user, the method further comprising the step of reconciling the payment record against the user'"'"'s billing account.

58. The method as recited in claim 48, further comprising the steps of:

the user connecting to the Internet;

the user connecting to an Internet website of a Customer Service Provider (CSP), the CSP performing billing services for the biller; and

the CSP'"'"'s website transmitting to the user a bill payment message, the bill payment message identifying the biller, a bank of the biller, a bank account of the biller and an amount of the bill payment, wherein the bill payment authorization is generated in response to the bill payment message, and wherein the biller'"'"'s bank account is credited in the amount of the bill payment in response to the receipt of the Electronic Funds Transfer credit message.