System and method for selectable funding of electronic transactions

• US 8,285,641 B2
• Filed: 11/06/2001
• Issued: 10/09/2012
• Est. Priority Date: 11/06/2000
• Status: Active Grant

• 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: Cataline, Glen R., Rielly, William Smith, Wallace, William Scott, Sheehan, Mark Robert
• Primary Examiner(s): Kazimi, Hani M
• Application Number:
  US09/985,900
• Publication Number:
  US 20020116331A1
• Time in Patent Office: 3,990 Days
• Field of Search: 705/35, 705/37, 705 39- 40, 705/92
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system for transferring funds to pay bills and to and from selected accounts on an optimized is provided. A mediation engine may manage the payments made to selected payees, including by scheduling the payments and selecting sources for funds. A rules-based optimizer may automatically select the least-cost or other most efficient or desirable transaction, given the customer'"'"'s available funds, types of funds and payment date. All payment providers and payees may manipulated using one seamless view. A customer service representative may also view the transfers.

Claims

1. A system for managing a transmission of funds for a payment initiator, comprising:

an input portion that inputs first information from a payment initiator, the first information including payment source information and payee information;

a payment platform database that includes payment platform information; and

a processor, the processor communicating with the input portion and the payment platform database so as to input the first information and access select payment platform information, the processor;

identifying a single payment source based on the payment source information, the single payment source being selected from a plurality of payment sources, the single payment source being the source of funds for the transmission of funds;

identifying, automatically without human involvement, a payee account based on the payee information;

performing, after identifying the single payment source and the payee account, an optimization determination to determine a payment mechanism to use to transfer the funds from the single payment source to the payee account, the processor using the first information and payment platform information in the optimization determination, the optimization determination performed automatically without human involvement; and

effecting the transmission of funds from the single payment source to the payee account using the payment mechanism; and

the processor identifying a single payment source includes the processor performing a second optimization process to determine the single payment source, the first optimization process being distinct from the second optimization process; and

the processor inputs a plurality of selected payment sources, and performs the second optimization determination to determine which one of the selected payment sources is the single payment source.

2. The system of claim 1, wherein the processor identifying a single payment source includes the processor inputting the single payment source from the input portion.

3. The system of claim 1, wherein the input portion provides for the payment initiator to select the plurality of selected payment sources.

4. The system of claim 1, wherein the payment initiator is presented with at least two payment sources that meet payment schedule data and the payment initiator presented with the associated costs of the at least two sources, and the payment initiator is permitted to manually choose the single payment source.

5. The system of claim 4, wherein the processor identifying a single payment source includes the processor inputting the single payment source from the input portion.

6. The system of claim 1, wherein

wherein the processor determines from a set of payment mechanisms a reduced set of payment mechanisms, the reduced set being a set of payment mechanisms from which the payment mechanism is selected, the reduced set of payment mechanisms including at least two payment mechanisms.

7. The system of claim 1, wherein the optimization determination comprises a calculation of at least one of payee account data, payment schedule data, payment type data and privacy data.

8. The system of claim 1, wherein the single payment source comprises at least one of a direct deposit account, a source credit account, a mortgage account, a securities account, a money market account, a micro payment account, an overdraft account and a stored value account.

9. The system of claim 1, wherein the payee account comprises at least one of a utility account, a mortgage account, a payee credit account, and a contribution account.

10. The system of claim 1, wherein the input portion is a telephone connection.

11. The system of claim 1, wherein the input portion is a network connection.

12. The system of claim 11, wherein the network connection comprises a remote client from which a user may communicate transaction instructions.

13. The system of claim 12, wherein the remote client comprises at least one of a computer, a network-enabled cellular telephone, a portable digital assistant, a paging device, and a set-top box.

14. The system of claim 11, wherein the payment initiator comprises at least one of a consumer, a business entity and a government entity.

15. The system of claim 1, wherein input portion comprises a desktop graphical user interface directly communicating with the processor.

16. The system of claim 1, wherein the optimization determination includes at least one of minimizing a cost variable, fulfilling a transaction schedule, utilizing a determined affiliation between the single payment source and the payee account, maximizing security, maximizing reliability, minimizing risk, fulfilling a contractual obligation, maximizing volume discounts, aggregating a transaction amounts, maximizing a transaction amount and maximizing available bonus awards.

17. The system of claim 1, wherein the optimization determination includes:

the processor performing processing so as to identify an affiliation between the single payment source and the payee account; and

determining the payment mechanism based on the identified affiliation.

18. The system of claim 1, wherein the optimization determination comprises minimizing a cost variable, and the cost variable comprises at least one of a transaction cost charged to the payment initiator and an internal cost absorbed by a payment enabler, the payment enabler maintaining the processor.

19. The system of claim 18, wherein the optimization determination comprises utilization of third party associations and payment providers.

20. The system of claim 19, wherein members of the third party associations are systematically identified by at least one of real time calls to the third party association, and real time calls to a datastore containing third party association member data which is periodically updated.

21. The system of claim 20, wherein an expense reduction resulting from optimization of the cost variable is realized by at least one of the payment enabler and the payment initiator.

22. The system of claim 1, wherein the optimization determination comprises a systematic identification and internal settlement for closed loop payments in which the payment source and the payee account reside within one entity.

23. The system of claim 1, wherein the transmission of funds comprises a currency conversion.

24. A computer implemented method for managing a transmission of funds for a payment initiator, comprising:

inputting first information from a payment initiator, the first information including payment source information and payee information;

inputting, from a payment platform database, payment platform information; and

performing processing based on the first information and the payment platform information, the processing being performed by a processor, the processing including;

identifying, automatically without human involvement, a single payment source based on the payment source information, the single payment source being selected from a plurality of payment sources, the single payment source being the source of funds for the transmission of funds;

identifying a payee account based on the payee information;

performing, after identifying the single payment source and the payee account, an optimization determination to determine a payment mechanism to use to transfer the funds from the single payment source to the payee account, the processing including using the first information and payment platform information in the optimization determination, the optimization determination performed automatically without human involvement; and

effecting the transmission of funds from the single payment source to the payee account using the payment mechanism; and

the processor further performing a second optimization process, the second optimization process selecting the single payment source, from a plurality of payment sources, based on parameters, the first optimization process being distinct from the second optimization process.

25. The computer implemented method of claim 24, wherein performing the optimization determination comprises maximizing volume discounts.

26. The computer implemented method of claim 24, wherein performing the optimization determination comprises aggregating transaction amounts.

27. The computer implemented method of claim 24, wherein performing the optimization determination comprises maximizing a transaction amount and maximizing available bonus awards.

28. The computer implemented method of claim 24, wherein the single payment source comprises one selected from the group consisting of a checking or other demand deposit account (DDA), money market fund, securities account, stored value account, credit card account, currency account, overdraft line of credit, micro payment account, and line of credit.

29. A system for managing a transmission of funds for a payment initiator, comprising:

an input portion that inputs first information from a payment initiator, the first information including payment source information and payee information;

a payment platform database that includes payment platform information; and

a processor, the processor communicating with the input portion and the payment platform database so as to input the first information and access select payment platform information, the processor;

identifying a single payment source based on the payment source information, the single payment source being selected from a plurality of payment sources, the single payment source being the source of funds for the transmission of funds;

identifying a payee account based on the payee information;

performing, after identifying the single payment source and the payee account, a first optimization determination to determine a payment mechanism to use to transfer the funds from the single payment source to the payee account, the processor using the first information and payment platform information in performing the first optimization determination, the first optimization determination performed automatically without human involvement; and

effecting the transmission of funds from the single payment source to the payee account using the payment mechanism; and

the processor identifying a single payment source includes the processor performing a second optimization determination to determine the single payment source, the processor inputting a plurality of selected payment sources, and performing the second optimization determination to determine which one of the plurality of selected payment sources is to constitute the single payment source, the first optimization determination being distinct from the second optimization process, the second optimization determination being performed before the first optimization determination, the second optimization determination performed automatically without human involvement;

the input portion providing for the payment initiator to select the plurality of selected payment sources; and

wherein the second optimization determination comprises a calculation of each of payee account data and payment schedule data; and

wherein the first optimization determination includes each of minimizing a cost variable, consideration of risk, and determination of whether there is an affiliation between the single payment source and the payee account.