Method and system for processing internet payments using the electronic funds transfer network

• US 8,694,425 B2
• Filed: 03/26/2012
• Issued: 04/08/2014
• 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:
  US13/429,609
• Publication Number:
  US 20120185316A1
• Time in Patent Office: 743 Days
• Field of Search: 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 computer implemented payment method for facilitating online purchase transactions, the method comprising:

storing in at least one computer memory information pertaining to an online merchant and a consumer and transactions between the online merchant and the consumer;

using a computer processor for accessing the information from the computer memory and executing instructions to perform steps including;

receiving from the online merchant, purchase transaction information for an online purchase transaction, the purchase transaction information including a bill payment message related to the online purchase transaction by the consumer, the purchase transaction information including merchant information, a transaction ID, and a transaction amount related to the online purchase transaction;

processing the purchase transaction information received from the online merchant for displaying an interface to the consumer using the computer processor, the interface related to the online purchase transaction and displaying the merchant information, the transaction ID and the transaction amount, the merchant information including a destination to which payment for the online purchase is made using bill payment from a financial institution trusted by the consumer thereby avoiding disclosure of the consumer'"'"'s confidential financial information to the online merchant;

receiving, from the financial institution, at a payment portal processor, online banking bill payment information upon payment by the consumer using online banking bill payment, and providing, to the online merchant and the consumer, a payment notification; and

storing information pertaining to the online merchant, the consumer and the transactions in a database stored in the computer memory.

2. The method of claim 1, further comprising providing on the displayed interface to the consumer an option to decline the purchase.

3. The method of claim 1, wherein the payment portal processor verifies that the consumer has sufficient balance in a designated account for the transaction amount.

4. The method of claim 3, wherein the payment portal processor transfers funds from another accessible account to the designated account.

5. The method of claim 1, further comprising storing payment communications including the bill payment messages from merchants, payment authorizations from the payment portal processor to the financial institution, and payment confirmations to the merchant.

6. The method of claim 1, further comprising storing, discount information including e-coupons, rebates, and merchant specific coupons for use by the consumer in a consumer wallet application.

7. The method of claim 6, further comprising providing pull down menus on the interface to allow the consumer to access the discount information.

8. The method of claim 1, further comprising verifying the accuracy of the merchant information, including a merchant account based on stored information.

9. The method of claim 1, further comprising providing an approval option for the consumer on the interface and providing a time-out function whereby when a purchase is not approved by the consumer for a predetermined amount of time, the purchase is invalidated.

10. The method of claim 1, wherein the purchase transaction information further includes a number of a merchant account.

11. The method of claim 1, wherein the interface is displayed to the consumer on a handheld mobile device.

12. A payment processing system for facilitating payment for online purchase transactions, the system comprising:

at least one computer memory information pertaining to an online merchant and a consumer and transactions between the online merchant and the consumer;

at least one computer processor for accessing the information from the computer memory and executing instructions to perform steps including;

receiving from an online merchant, purchase transaction information related to an online purchase transaction by a consumer, the purchase transaction information including merchant information, a transaction ID, and a transaction amount related to the online purchase transaction;

processing the purchase transaction information received from the online merchant for displaying an interface to the consumer related to the online purchase transaction using an enhanced wallet, the interface displaying the merchant information, the transaction ID, and the transaction amount, the merchant information including a destination to which payment for the online purchase is made using bill payment from a financial institution trusted by the consumer thereby avoiding disclosure of the consumer'"'"'s confidential financial information to the online merchant;

receiving, from the financial institution at a payment portal processor, online banking bill payment information upon payment by the consumer using online banking bill payment, and providing, to the online merchant and the consumer, a payment notification;

reconciling a payment record with merchant purchase records at an account reporter; and

storing information pertaining to the online merchant, the consumer, and the bill payment messages associated with the online purchase transactions in a database stored in the computer memory.

13. The system of claim 12, further wherein the displayed interface to the consumer provides an option to decline the purchase.

14. The system of claim 12, wherein the payment portal processor verifies that the consumer has sufficient balance in a designated account for the transaction amount.

15. The system of claim 14, wherein the payment portal processor transfers funds from another accessible account to the designated account.

16. The system of claim 12, wherein the database further stores payment communications including the bill payment messages from merchants, payment authorizations from the payment portal processor to the financial institution, and payment confirmations to the merchant.

17. The system of claim 12, wherein the enhanced wallet further stores discount information including e-coupons, rebates, and merchant specific coupons for use by the consumer.

18. The system of claim 17, further comprising pull down menus on the interface to access the discount information.

19. The system of claim 12, wherein the enhanced wallet verifies the accuracy of the merchant information, including a merchant account.

20. The system of claim 12, wherein the enhanced wallet further provides a time-out function whereby when a purchase is not approved by the consumer through an approval option provided on the interface for a predetermined amount of time, the purchase is invalidated.

21. The system of claim 12, wherein the purchase transaction information further includes a number of a merchant account.

22. The system of claim 12, wherein the interface is displayed to the consumer on a handheld mobile device.