Payment system and methods

• US 8,833,644 B2
• Filed: 09/04/2013
• Issued: 09/16/2014
• Est. Priority Date: 10/11/2005
• Status: Active Grant

• Current Assignee: National Payment Card Association
• Original Assignee: National Payment Card Association
• Inventors: Randazza, Joseph R., Portal, Danilo
• Primary Examiner(s): Labaze, Edwyn
• Application Number:
  US14/017,747
• Publication Number:
  US 20140034725A1
• Time in Patent Office: 377 Days
• Field of Search: 235/379, 235/375, 235/487, 235/472.01, 705 16- 17, 705/39, 705/41, 705/44
• US Class Current: 235/379
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• 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 20/4014 Identity check for transactions
• CPC Class Codes: G06Q 30/0617 Representative agent

Abstract

Disclosed are payment system and methods such as decoupled debit payment methods usable with the Federal Reserve Automated Clearing House system and/or the Electronic Payments Network (EPN) system.

Claims

1. A decoupled debit payment method for a holder of a United States checking account with a financial institution to accomplish a purchase at a retail site which is a physical geographic premises, wherein the checking account holder has physical possession of a payment token, the payment token not being a card with a magnetic stripe or bar code, comprising steps, performed at the retail site, of:

receiving a signal from the payment token;

sending the signal received from the payment token into a routing system;

depending on a signal received from a second system in which is stored an association between the signal received from the payment token and account information, conditionally effecting a transaction with the holder of the payment token;

whereby the holder of the payment token has accomplished the purchase at the retail site;

wherein the steps are performed by a computer or computers within an automated system that is in communication with an Automated Clearing House (ACH) system.

2. The decoupled debit payment method of claim 1, wherein the Automated Clearing House system is selected from the group consisting of the Federal Reserve Automated Clearing House System and the Electronic Payment Network (EPN) System.

3. The decoupled debit payment method of claim 1, further comprising enrolling the payment token through a pre-shopping enrollment process and storing a US checking account number of the holder of the payment token in a database.

4. The method of claim 1, comprising performing a retailer-specific velocity check.

5. The method of claim 1, comprising storing a data set that comprises a US checking account number and a telephone number of a mobile phone of the holder of the payment token who is the holder of the US checking account;

wherein in the stored data set the US checking account number is associated with the telephone number of the mobile phone.

6. A decoupled debit payment method for a shopper to accomplish payment using his checking account and at a retail site which is a physical geographic premises, but without having carried with him a paper check, a magnetic-striped card or a bar-coded card, comprising method steps of:

operating a pre-shopping enrollment process, by which the payment token is entered as a set of data and is an enrolled payment token comprising receiving a US checking account number, and storing, in a database, the data comprising the US checking account number;

configuring the retail site so that when the shopper uses or presents the enrolled payment token at the retail site, electronic processes are put into motion by which communication with an Automated Clearing House system is accomplished;

wherein the shopper accomplishes payment at the retail site using his checking account but without having carried with him a paper check, a magnetic-striped card or a bar-coded card.

7. The decoupled debit payment method of claim 6, wherein the Automated Clearing House system is selected from the group consisting of the Federal Reserve Automated Clearing House System and the Electronic Payment Network (EPN) System.

8. The method of claim 7, wherein the step of configuring the retail site comprises one or more of:

a) providing optical scanner equipment at the retail site, wherein the shopper inserts the payment token into optical scanner equipment at the retail site;

b) providing equipment at the retail site, wherein the shopper swipes the payment token in a vicinity of equipment at the retail site;

c) posting a number at the retail site, wherein the shopper uses the payment token to dial the number posted at the retail site.

9. A decoupled debit automated system in communication with an Automated Clearing House system, comprising:

at least one computer;

a set of stored data for a payment token that had been obtained when the payment token was enrolled through a pre-shopping enrollment process, wherein the stored data is used by the automated system in order for the payment token to be recognized when used at a retail site;

wherein the system performs the following steps, wherein each step is performed by a computer;

receiving a signal from the payment token wherein the payment token is a physical possession of a holder, wherein the holder also is an owner of a checking account at a financial institution which is an ACH member, and the payment token is not a card with a magnetic stripe or bar code;

sending the signal received from the payment token into a routing system to cause an ACH entry to be sent to the Automated Clearing House system;

after the sending step, receiving a signal, and depending on the signal received, conditionally effecting a transaction with the holder of the payment token.

10. The decoupled debit automated system of claim 9, wherein the Automated Clearing House system is selected from the group consisting of the Federal Reserve Automated Clearing House System and the Electronic Payment Network (EPN) System.

11. The automated system of claim 9, wherein the system further performs, by a computer, the following steps:

conditionally sending a message to cause an institution to send an ACH entry to the Federal Reserve ACH system or the Electronic Payment Network system, to pass the entry to a bank, where an account is issued a debit, to cause a transfer of funds to an owner of a retail site where the signal was received from the payment token.

12. The automated system of claim 11, configured to receive signals from payment tokens that comprise a plurality of smart phones.

13. The automated system of claim 11, configured to receive signals from payment tokens that comprise a plurality of cellular devices.

14. The automated system of claim 11, configured to received signals from payment tokens that comprise a plurality of wireless devices.

15. The automated system of claim 11, further comprising a point of sale terminal via which the signal from the first payment token is received.

16. The automated system of claim 9, further comprising an in-retailer server.

17. The automated system of claim 9, further comprising telecommunications hardware.

18. The automated system of claim 9, further comprising a translator device.

19. The automated system of claim 9, comprising equipment that receives the signal from the payment token and that is located at a retail site.

20. The automated system of claim 9, comprising circuitry that performs a retailer-specific velocity check.

21. The system of claim 9, wherein the set of stored data comprises a US checking account number and a telephone number of a mobile phone of the holder of the payment token who is the holder of the US checking account;

wherein in the stored data the US checking account number is associated with the telephone number of the mobile phone.