Consolidated payment account system and method

• US 8,504,474 B2
• Filed: 07/28/2010
• Issued: 08/06/2013
• Est. Priority Date: 06/27/2001
• Status: Expired due to Term

• Current Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Armes, David, Bishop, Fred A., Breck, Lydia C., Fehlhaber, Jeff, Fitzgerald, Gabriella P., Glazer, Elliott, Hussain, Sohail, Mitchell, Margaret C., Neeman, Trey, Sweet, Leah M., White, Dirk, Zoob, Jessica
• Primary Examiner(s): Meinecke Diaz, Susanna M
• Application Number:
  US12/845,412
• Publication Number:
  US 20110004551A1
• Time in Patent Office: 1,105 Days
• Field of Search: 705/39, 705/40
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/227 characterised in that multiple accounts are available, e.g. to the payer
• 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 30/06 Buying, selling or leasing transactions

Abstract

The present invention provides a system and method for providing and/or facilitating complete on-line payment services while protecting the privacy of the transaction participants. The comprehensive payment service is based upon a consolidated account used to store value acquired through on-line transactions. The invention provides private payment numbers for protecting the identities of the participants and includes processes for authenticating participants, authorizing transactions, and settling payments. Thus, the present invention enables merchants to effectively accept non-standard forms of payment without changing their current payment infrastructures and enables the provision of value for purchases at any network merchant using any source of value.

Claims

1. A method comprising:

funding, by a computer-based system for providing a payment for a transaction, a consolidated account from a plurality of different funding sources, wherein an acquisition order is determined according to a defined funding profile and a proportion of the value from each of the plurality of different funding sources is determined according to the defined funding profile, and wherein the consolidated account stores a value funded from the plurality of different funding sources;

dynamically altering, by the computer-based system, the acquisition order in response to a transaction initiation action including a selection of funding sources to pay a payee and based on a real-time current balance of each funding source of the plurality of different funding sources and based on a statement cutoff date of each funding source of the plurality of different funding sources; and

paying, by the computer-based system, the payee with at least part of the funded value from the consolidated account to any network merchant.

2. The method of claim 1, further comprising providing a statement indicating at least one of a source of funds for payments made from the consolidated account, a source of funds stored in the consolidated account, and a quantity of funds stored in the consolidated account.

3. The method of claim 2, wherein the providing a statement is performed according to at least one of a predetermined schedule, a predefined rule, and in response to an occurrence of a triggering event.

4. The method of claim 1, wherein paying the payee further comprises aggregating a series of requests for payment into a single aggregated payment.

5. The method of claim 1, further comprising:

setting, by the computer-based system, a predetermined usage restriction in a database, wherein the predetermined usage restriction is associated with at least one of the plurality of different funding sources; and

performing, by the computer-based system and after the funding, a predetermined enforcement policy on at least part of the funds in the consolidated account, wherein the predetermined enforcement policy is based at least in part on the setting.

6. The method of claim 5, wherein setting the predetermined usage restriction further comprises automatically paying the payee with at least part of the funded value in response to the requested funded value being below a pre-selected threshold.

7. The method of claim 1, wherein at least one of an identity of a holder associated with the funding sources and an address of a holder associated with the funding sources is restricted from the payee of the consolidated account.

8. The method of claim 1, wherein a shipping address associated with a holder of the consolidated account is not the same as a shipping address associated with a holder of the funding source.

9. The method of claim 1, further comprising communicating a request for value to the funding sources in accordance with a predefined rule, wherein the rule is based upon at least one of the current balance of the funding source, interest rate of the funding source, transaction date, availability of funds in the funding source, type of merchant associated with the request for value, type of product associated with the request for value, type of service associated with the request for value, a condition based trigger, a funding limit not to be exceeded, and a product type associated with the request for value.

10. The method of claim 9, the predefined rule defined by at least one of a user, an issuer, the payee, and a non-approved merchant.

11. The method of claim 9, wherein the condition based trigger comprises at least one of an unanticipated need for value and an anticipated overdraft of the consolidated account.

12. The method of claim 1, the funding source comprising at least one of a charge account, debit account, credit account, gift account, stored value account, telephone account, loyalty device, a private cash company and vendor sources usable within a merchant network.

13. The method of claim 1, further comprising at least one of:

communicating, by the computer-based system, an offer to a consumer to provide the consolidated account,

receiving, by the computer-based system, from a consumer a request for the consolidated account,

collecting authentication information, by the computer-based system, from a consumer, and

verifying, by the computer-based system, an identity of a consumer.

14. The method of claim 1, the payment comprising value having a form defined by at least one of a user, the payee, non-approved merchant.

15. The method of claim 1, wherein the funding of the consolidated account occurs substantially simultaneously from the plurality of different funding sources.

16. The method of claim 1, wherein the consolidated account is further configured to disable itself in response to a transaction request with a non-approved merchant.

17. The method of claim 1, wherein paying the payee further comprises paying at least one of a subscription fee, a recurring charge, a renewable payment, a periodic service, a location based service, a digital rights management service, a micro-payment, and a sweep account.

18. The method of claim 1, further comprising communicating, by the computer-based system, a proxy payment number in place of a consolidated account number to pay the payee, wherein a double blind is created between the payee and the underlying consolidated account when the private payment number is used in conjunction with the consolidated account.

19. A system comprising:

a tangible, non-transitory memory communicating with a processor for providing a payment for a transaction, the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising;

funding, by the processor, a consolidated account from a plurality of different funding sources, wherein an acquisition order is determined according to a defined funding profile and a proportion of the value from each of the plurality of different funding sources is determined according to the defined funding profile, and storing in the consolidated account a value funded from the plurality of different funding sources;

dynamically altering, by the processor, the acquisition order in response to a transaction initiation action including a selection of funding sources to pay a payee and based on a real-time current balance of each funding source of the plurality of different funding sources and based on a statement cutoff date of each funding source of the plurality of different funding sources; and

paying, by the processor, the payee with at least part of the funded value from the consolidated account to any network merchant.

20. A non-transitory computer-readable storage medium having stored thereon a plurality of instructions for causing a computer to provide a payment for a transaction, the plurality of instructions, when executed by a processor for providing a payment for a transaction, are configured to cause the processor to perform operations comprising:

funding, by the processor, a consolidated account from a plurality of different funding sources, wherein an acquisition order is determined according to a defined funding profile and a proportion of the value from each of the plurality of different funding sources is determined according to the defined funding profile, and wherein the consolidated account stores a value funded from the plurality of different funding sources;

dynamically altering, by the processor, the acquisition order in response to a transaction initiation action including a selection of funding sources to pay a payee and based on a real-time current balance of each funding source of the plurality of different funding sources and based on a statement cutoff date of each funding source of the plurality of different funding sources; and

paying, by the processor, the payee with at least part of the funded value from the consolidated account to any network merchant.