Same-day settlement of financial transactions

• US 8,364,585 B1
• Filed: 11/01/2006
• Issued: 01/29/2013
• Est. Priority Date: 11/01/2006
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Edmonds, David Scott, Winston, Stephen Ray
• Primary Examiner(s): Kyle, Charles
• Assistant Examiner(s): MADAMBA, CLIFFORD B
• Application Number:
  US11/555,421
• Time in Patent Office: 2,281 Days
• Field of Search: 705 35- 45
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/38 Payment protocols; Details thereof
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system and method to receive a financial transaction and transfer funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated. The financial transaction may be one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement using routing or transit numbers associated with an entity that receives the financial transaction.

Claims

1. A method comprising:

enabling access to a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

receiving a financial transaction at least one computing device associated with the relationship bank system, wherein the relationship bank system is associated with a first routing number; and

transferring funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated, wherein the account associated with the originator of the financial transaction is associated with a second routing number,

wherein the first and second routing numbers are owned by different financial institutions,

wherein the transferring funds occurs within the at least one computing device associated with the relationship bank system, and

wherein the financial transaction is one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement by using a computer processor to access the database and confirm that the second routing number is to be used by the relationship bank system for same-day settlement.

2. The method according to claim 1,

wherein the account comprises a demand deposit account.

3. The method according to claim 1,

wherein the financial transaction comprises a debit transaction.

4. The method according to claim 1,

wherein the financial transaction comprises a credit transaction.

5. A method comprising:

enabling access to a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

receiving information about a plurality of financial transactions at least one computing device associated with a processing and sorting system;

processing the information to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement; and

transmitting information about a financial transaction that is eligible for same-day settlement to at least one computing device associated with a relationship bank system based on a determination that at least one of the plurality of financial transactions is eligible for same-day settlement,

wherein, to settle a financial transaction that is eligible for same-day settlement, the relationship bank electronically transfers funds associated with the financial transaction that is eligible for same-day settlement into an account associated with an originator of the financial transaction that is eligible for same-day settlement, and

wherein the electronic funds transfer occurs within the at least one computing device associated with the relationship bank system, and

wherein a routing number corresponding to the relationship bank is owned by a different financial institution than a routing number corresponding to the account associated with an originator of the financial transaction that is eligible for same-day settlement, and

wherein processing the information to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement includes using a computer processor to access the database and confirm that the routing number corresponding to the account associated with the origination is to be used for same-day settlement.

6. The method according to claim 5,

wherein the account comprises a demand deposit account.

7. The method according to claim 5,

wherein the processing comprises using routing or transit numbers associated with each of the plurality of financial transactions to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.

8. The method according to claim 5,

wherein the plurality of financial transactions comprise debit transactions.

9. The method according to claim 5,

wherein the plurality of financial transactions comprise credit transactions.

10. The method according to claim 5,

wherein the processing comprises comparing routing or transit numbers associated with each of the plurality of financial transactions with routing or transit numbers associated with the respective relationship banks to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.

11. A system comprising:

a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

a processor to receive information about a plurality of financial transactions; and

a sorting mechanism to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement by using a computer processor to access the database and confirm that the second routing number is to be used by the relationship bank system for same-day settlement; and

transmit information about a financial transaction that is eligible for same-day settlement to a relationship bank based on a determination that at least one of the plurality of financial transactions is eligible for same-day settlement,

wherein, to settle a financial transaction that is eligible for same-day settlement, the relationship bank electronically transfers funds associated with the financial transaction that is eligible for same-day settlement into an account associated with an originator of the financial transaction that is eligible for same-day settlement, and

wherein the electronic funds transfer occurs within the relationship bank, and

wherein a routing number corresponding to the relationship bank is owned by a different financial institution than a routing number corresponding to the account associated with an originator of the financial transaction that is eligible for same-day settlement.

12. The system according to claim 11,

wherein the account comprises a demand deposit account.

13. The system according to claim 11,

wherein the sorting mechanism uses routing or transit numbers associated with each of the plurality of financial transactions to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.

14. The system according to claim 11,

wherein the plurality of financial transactions comprise debit transactions.

15. The system according to claim 11,

wherein the plurality of financial transactions comprise credit transactions.

16. The system according to claim 11,

wherein the sorting mechanism compares routing or transit numbers associated with each of the plurality of financial transactions with routing or transit numbers associated with the respective relationship banks to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement.

17. A method comprising:

enabling access to a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

receiving, at an at least one computing device associated with an originator system, a plurality of payment instructions, each of the plurality of payment instructions comprising an amount and a routing or transit number associated with an account for redeeming payment;

combining the plurality of payment instructions into a financial transaction file; and

transmitting the financial transaction file to a processor for same-day settlement,

wherein, the processor accesses the database and compares the routing or transit numbers associated with each of the plurality of payment instructions in the financial transactions file with the plurality of routing or transit numbers stored in the database to determine whether at least one of the plurality of payment instructions is eligible for same-day settlement,

wherein, to settle a payment instruction that is eligible for same-day settlement, the relationship bank electronically transfers the amount associated with the respective payment instruction that is eligible for same-day settlement into an account associated with the recipient of the payment instruction that is eligible for same-day settlement, and the electronic funds transfer occurs within the relationship bank,

wherein a routing number corresponding to the relationship bank is owned by a different financial institution than a routing number corresponding to the account associated with an originator of the financial transaction that is eligible for same-day settlement.

18. The method according to claim 17,

wherein the account comprises a demand deposit account.

19. The method according to claim 17,

wherein the plurality of payment instructions comprise debit transactions.

20. The method according to claim 17,

wherein the plurality of payment instructions comprise credit transactions.

21. A non-transitory computer-accessible medium encoded with computer program code that, when executed, performs the following:

enable access to a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

receive a financial transaction; and

transfer funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated,

wherein the account associated with an originator is associated with a routing number,

wherein the financial transaction is one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement transaction by using a computer processor to access the database and confirm that the second routing number is to be used by the relationship bank system for same-day settlement,

wherein the routing number corresponding to the entity that receives the financial transaction is owned by a different financial institution than the routing number corresponding to the account associated with an originator.

22. A non-transitory computer-accessible medium encoded with computer program code that, when executed, performs the following:

enable access to a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

receive information about a plurality of financial transactions;

process the information to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement; and

transmit information about a financial transaction that is eligible for same-day settlement to a relationship bank based on a determination that at least one of the plurality of financial transactions is eligible for same-day settlement,

wherein, to settle a financial transaction that is eligible for same-day settlement, the relationship bank electronically transfers funds associated with the financial transaction that is eligible for same-day settlement into an account associated with an originator of the financial transaction that is eligible for same-day settlement,

wherein a routing number corresponding to the relationship bank is owned by a different financial institution than a routing number corresponding to the account associated with an originator of the financial transaction that is eligible for same-day settlement, and

wherein processing the information to determine whether at least one of the plurality of financial transactions is eligible for same-day settlement includes using a computer processor to access the database and confirm that the routing number corresponding to the account associated with the origination is to be used for same-day settlement.

23. A non-transitory computer-accessible medium encoded with computer program code effective to perform the following:

enable access to a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

receive a plurality of payment instructions, each of the plurality of payment instructions comprising an amount and a routing or transit number associated with an account for redeeming payment;

combine the plurality of payment instructions into a financial transaction file; and

transmit the financial transaction file to a processor for same-day settlement, wherein, the processor accesses the database and compares the routing or transit numbers associated with each of the plurality of payment instructions in the financial transactions file with the plurality of routing or transit numbers stored in the database to determine whether at least one of the plurality of payment instructions is eligible for same-day settlement, and

wherein, to settle a payment instruction that is eligible for same-day settlement, the relationship bank electronically transfers the amount associated with the respective payment instruction that is eligible for same-day settlement into an account associated with the recipient of the payment instruction that is eligible for same-day settlement, and

wherein a routing number corresponding to the relationship bank is owned by a different financial institution than a routing number corresponding to the account associated with an originator of the financial transaction that is eligible for same-day settlement.

24. A method comprising:

enabling access to a database that includes a plurality of routing or transit numbers to be used by a relationship bank system for same-day settlement;

receiving a financial transaction at least one computing device associated with a relationship bank system; and

transferring funds associated with the financial transaction into an account associated with an originator of the financial transaction to settle the financial transaction on the same day that the financial transaction is originated,

wherein the transferring funds occurs within the at least one computing device associated with relationship bank system, and

wherein the financial transaction is one of a plurality of financial transactions and the financial transaction is identified as being eligible for same-day settlement using an indicator associated with the financial transaction, and

wherein a routing number corresponding to the relationship bank is owned by a different financial institution than a routing number corresponding to the account associated with an originator of the financial transaction that is eligible for same-day settlement, and

wherein the indicator is determined by using a computer processor to access the database and confirm that the routing number corresponding to the account associated with the origination is to be used for same-day settlement.