Payment entity device transaction processing using multiple payment methods

• US 8,374,932 B2
• Filed: 02/13/2008
• Issued: 02/12/2013
• Est. Priority Date: 10/30/2007
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Marchetti, John N., Mullen, Matthew
• Primary Examiner(s): NGUYEN, TIEN C
• Application Number:
  US12/030,816
• Publication Number:
  US 20090112661A1
• Time in Patent Office: 1,826 Days
• Field of Search: 705/35, 705/39, 705/42, 705/43
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method begins with a payment entity device receiving an accounts payable data file from a client entity processing module. The method continues with the payment entity device determining a method of payment for an account payable of the accounts payable data file in accordance with a payables profile. The method continues with the payment entity device initiating a first type of payment for the account payable when the method of payment is a first type; initiating a second type of payment for the account payable, when the method of payment is a second type, or initiating a third type of payment for the account payable when the method of payment is a third type.

Claims

1. A method comprising:

receiving, by a payment entity device configured to facilitate payment and reconciliation of accounts payable, a payables profile from a client entity processing module operated by a client that pays a plurality of creditors, wherein the payables profiles includes a plurality of accounts payable, one or more methods of payment associated with each of the plurality of accounts payable, and a financial institution associated with each of the one or more methods of payment;

receiving, by the payment entity device, an accounts payable data file from the client entity processing module, wherein the accounts payable data file includes the plurality of accounts payable and a total amount to be paid for each of the plurality of accounts payable;

determining, by the payment entity device, a method of payment for each of the plurality of accounts payable of the accounts payable data file in accordance with the payables profile;

initiating a first type of payment for a first one of the plurality of accounts payable in response to a first method of payment specified by the payables profile;

initiating a second type of payment for a second one of the plurality of accounts payable in response to a second method of payment specified by the payables profile; and

initiating a third type of payment for a third one of the plurality of accounts payable in response to a third method of payment specified by the payables profile;

wherein initiating each respective type of payment comprises generating a payment request appropriate to the method of payment, verifying that the payment request is valid, and generating an error message if the validity is not verified; and

reconciling payment of the accounts payable of the accounts payable data file,

wherein, when the third type of payment is a payment card payment, the initiating the third type of payment comprises;

preliminary processing the third one of the plurality of accounts payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of payment card transaction or a second type of payment card transaction;

wherein, when the preliminary processed account payable data is to be processed by the first type of payment card transaction, the initiating the third type of payment further comprises;

initiating a clearing process with at least one of;

a merchant processing module and an acquirer processing module; and

settling, by the payment entity device, the account payable when the preliminary processed account payable data has cleared the at least one of the merchant processing module and the acquirer processing module; and

wherein, when the preliminary processed account payable data is to be processed by the second type of payment card transaction, the initiating the third type of payment further comprises;

settling, by the payment entity device, the account payable from the preliminary processed account payable data.

2. The method of claim 1 further comprises:

analyzing the accounts payable data file to determine whether accounts payable information is in a desired format; and

when the accounts payable information is not in a desired format, translating format of the accounts payable information into the desired format.

3. The method of claim 1 further comprises:

receiving a first type of payment notification from a first financial institution processing module;

receiving a second type of payment notification from the first or a second financial institution processing module; and

receiving a third type of payment notification from the first, the second, or a third financial institution processing module.

4. The method of claim 1, wherein, when the first type of payment is a check, the initiating the first type of payment comprises:

preliminary processing the first one of the plurality of accounts payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing a data file of the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution;

when the preliminary processed account payable data is to be processed by the second type of financial institution, determining whether check payment will be of a first type of check payment or a second type of check payment;

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, executing, by the payment entity device, payment via the first type of check payment; and

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, providing the data file of the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.

5. The method of claim 1, wherein, when the second type of payment is a wire transfer or debit account transfer, the initiating the second type of payment comprises:

preliminary processing the second one of the plurality of accounts payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing a data file of the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution; and

when the preliminary processed account payable data is to be processed by the second type of financial institution, providing the data file of the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.

6. The method of claim 1, wherein the payables profile further includes one or more account payable types associated with each of the plurality of accounts payable and a payment term associated with one or more of the plurality of accounts payable.

7. The method of claim 1, wherein the accounts payable data file further includes an invoice number, an item identifier, a quantity, a unit price, a subtotal amount, a tax amount, and a shipping and handling amount, associated with one or more of the plurality of accounts payable.

8. The method of claim 7, wherein the accounts payable data file further includes an alternative method of payment associated with at least one of the plurality of accounts payable, wherein the alternative method of payment is different than the one or more methods of payment associated with the at least one of the plurality of accounts payable included in the payables profile.

9. The method of claim 1, wherein the first type of payment is a promissory note, wherein the second type of payment is a rebate, and wherein the third type of payment is a business card payment.

10. The method of claim 1, wherein preliminary processing the third one of the plurality of accounts payable comprises determining whether the financial institution associated with the third method of payment is a member entity or a partner entity.

11. A method comprising:

entering a loop for a plurality of accounts payable contained in an accounts payable data file, wherein the accounts payable data file includes a total amount to be paid for each of the plurality of accounts payable, and wherein the loop includes;

determining, by a payment entity device configured to facilitate payment and reconciliation of accounts payable, a method of payment for an account payable of the plurality of accounts payable in accordance with a payables profile, wherein the payables profile includes the plurality of accounts payable, one or more methods of payment associated with each of the plurality of accounts payable, and a financial institution associated with each of the one or more methods of payment;

initiating, by the payment entity device, a payment of the account payable in accordance with the method of payment specified by the payables profile, wherein initiating the payment comprises generating a payment request appropriate to the method of payment, verifying that the payment request is valid, and generating an error message if the validity is not verified;

processing, by the payment entity device, payment notification in accordance with the method of payment;

exiting the loop when the plurality of accounts payable has been processed in accordance with the loop; and

reconciling payment of the accounts payable of the accounts payable data file,

wherein, when the method of payment is a payment card payment, the initiating the payment comprises;

preliminary processing the account payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of payment card transaction or a second type of payment card transaction;

wherein, when the preliminary processed account payable data is to be processed by the first type of payment card transaction, the initiating the payment further comprises;

initiating a clearing process with at least one of;

a merchant processing module and an acquirer processing module; and

settling, by the payment entity device, the account payable when the preliminary processed account payable data has cleared the at least one of the merchant processing module and the acquirer processing module; and

wherein, when the preliminary processed account payable data is to be processed by the second type of payment card transaction, the initiating the payment further comprises;

settling, by the payment entity device, the account payable from the preliminary processed account payable data.

12. The method of claim 11, wherein the methods of payment included in the payables profile comprises at least two of:

a commercial paper;

a funds transfer;

monetary consideration such as a rebate, refund, or exchange;

a debit account transfer; and

a credit card payment.

13. The method of claim 11, wherein, when the method of payment is a check, the initiating the payment comprises:

preliminary processing the account payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution;

when the preliminary processed account payable data is to be processed by the second type of financial institution, determining whether a check payment will be of a first type of check payment or a second type of check payment;

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, executing, by the payment entity device, payment via the first type of check payment; and

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, providing the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.

14. The method of claim 11, wherein, when the method of payment is a wire transfer or debit account transfer, the initiating the payment comprises:

preliminary processing the account payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution; and

when the preliminary processed account payable data is to be processed by the second type of financial institution, providing the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.

15. An apparatus comprising:

a processing module; and

memory coupled to the processing module, wherein the processing module, at least partially based on operational instructions stored in the memory, functions to;

receive a payables profile from a client entity processing module operated by a client that pays a plurality of creditors, wherein the payables profile includes a plurality of accounts payable, one or more methods of payment associated with each of the plurality of accounts payable, and a financial institution associated with each of the one or more methods of payment;

receive an accounts payable data file from the client entity processing module, wherein the accounts payable data file includes the plurality of accounts payable and a total amount to be paid for each of the plurality of accounts payable;

determine a method of payment for each of the plurality of accounts payable of the accounts payable data file in accordance with the payables profile;

initiate a first type of payment for a first one of the plurality of accounts payable in response to a first method of payment specified by the payables profile;

initiate a second type of payment for a second one of the plurality of accounts payable in response to a second method of payment specified by the payables profile; and

initiate a third type of payment for a third one of the plurality of accounts payable in response to a third method of payment specified by the payables profile;

wherein initiating each respective type of payment comprises generating a payment request appropriate to the method of payment, verifying that the payment request is valid, and generating an error message if the validity is not verified; and

reconcile payment of the accounts payable of the accounts payable data file,

wherein, when the third type of method payment is a payment card payment, the processing module initiates the third type of payment by;

preliminary processing the third one of the plurality of accounts payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of payment card transaction or a second type of payment card transaction;

wherein, when the preliminary processed account payable data is to be processed by the first type of payment card transaction, the initiating the third type of payment further comprises;

initiating a clearing process with at least one of;

a merchant processing module and an acquirer processing module; and

settling the account payable when the preliminary processed account payable data has cleared the at least one of the merchant processing module and the acquirer processing module; and

wherein, when the preliminary processed account payable data is to be processed by the second type of payment card transaction, the initiating the third type of payment further comprises;

settling the account payable from the preliminary processed account payable data.

16. The apparatus of claim 15, wherein the processing module further functions to:

analyze the accounts payable data file to determine whether accounts payable information is in a desired format; and

when the accounts payable information is not in a desired format, translate format of the accounts payable information into the desired format.

17. The apparatus of claim 15, wherein the processing module further functions to:

receive a first type of payment notification from a first financial institution processing module;

receive a second type of payment notification from the first or a second financial institution processing module; and

receive a third type of payment notification from the first, the second, or a third financial institution processing module.

18. The apparatus of claim 15, wherein, when the first type of payment is a check, the processing module initiates the first type of payment by:

preliminary processing the first one of the plurality of accounts payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing a data file of the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution;

when the preliminary processed account payable data is to be processed by the second type of financial institution, determining whether check payment will be of a first type of check payment or a second type of check payment;

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, executing payment via the first type of check payment; and

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, providing the data file of the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.

19. The apparatus of claim 15, wherein, when the second type of payment is a wire transfer or debit account transfer, the processing module initiates the second type of payment by:

preliminary processing the second one of the plurality of accounts payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing a data file of the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution; and

when the preliminary processed account payable data is to be processed by the second type of financial institution, providing the data file of the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.

20. An apparatus comprising:

a processing module; and

memory coupled to the processing module, wherein the processing module, at least partially based on operational instructions stored in the memory, functions to;

enter a loop for a plurality of accounts payable contained in an accounts payable data file, wherein the accounts payable data file includes a total amount to be paid for each of the plurality of accounts payable, and wherein the loop includes;

determining a method of payment for an account payable of the plurality of accounts payable in accordance with a payables profile, wherein the payables profile includes the plurality of accounts payable, one or more methods of payment associated with each of the plurality of accounts payable, and a financial institution associated with each of the one or more methods of payment;

initiating a payment of the account payable in accordance with the method of payment specified by the payables profile, wherein initiating the payment comprises generating a payment request appropriate to the method of payment, verifying that the payment request is valid, and generating an error message if the validity is not verified;

processing payment notification in accordance with the method of payment;

exit the loop when the plurality of accounts payable has been processed in accordance with the loop; and

reconciling payment of the accounts payable of the accounts payable data file,

wherein, when the method of payment is a payment card payment, the processing module initiates the payment by;

preliminary processing the account payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of payment card transaction or a second type of payment card transaction;

wherein, when the preliminary processed account payable data is to be processed by the first type of payment card transaction, the initiating the payment further comprises;

initiating a clearing process with at least one of;

a merchant processing module and an acquirer processing module; and

settling the account payable when the preliminary processed account payable data has cleared the at least one of the merchant processing module and the acquirer processing module; and

wherein, when the preliminary processed account payable data is to be processed by second type of payment card transaction, the initiating the payment further comprises;

settling the account payable from the preliminary processed account payable data.

21. The apparatus of claim 20, wherein the methods of payment included in the payable profile comprises at least two of:

a commercial paper;

a funds transfer;

monetary consideration such as a rebate, refund, or exchange;

a debit account transfer; and

a credit card payment.

22. The apparatus of claim 20, wherein, when the method of payment is a check, the processing module initiates the payment by:

preliminary processing the account payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution;

when the preliminary processed account payable data is to be processed by the second type of financial institution, determining whether a check payment will be of a first type of check payment or a second type of check payment;

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, executing payment via the first type of check payment; and

when the preliminary processed account payable data is to be processed by the second type of financial institution and the check payment is of the first type of check payment, providing the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.

23. The apparatus of claim 20, wherein, when the method of payment is a wire transfer or debit account transfer, the processing module initiates the payment by:

preliminary processing the account payable via at least one of;

transformation, validation, and currency exchange to produce a preliminary processed account payable data;

determining whether the preliminary processed account payable data is to be processed by a first type of financial institution or a second type of financial institution;

when the preliminary processed account payable data is to be processed by the first type of financial institution, providing the preliminary processed account payable data to a first financial institution processing module corresponding to a financial institution of the first type of financial institution; and

when the preliminary processed account payable data is to be processed by the second type of financial institution, providing the preliminary processed account payable data to a second financial institution processing module corresponding to a financial institution of the second type of financial institution.