System and method for selectable funding of electronic transactions

• US 20020116331A1
• Filed: 11/06/2001
• Published: 08/22/2002
• Est. Priority Date: 11/06/2000
• Status: Active Grant

• 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: Cataline, Glen R., Rielly, William Smith, Wallace, William Scott, Sheehan, Mark Robert
• Granted Patent: US 8,285,641 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• 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 20/10 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 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system for transferring funds to pay bills and to and from selected accounts on an optimized is provided. A mediation engine may manage the payments made to selected payees, including by scheduling the payments and selecting sources for funds. A rules-based optimizer may automatically select the least-cost or other most efficient or desirable transaction, given the customer'"'"'s available funds, types of funds and payment date. All payment providers and payees may manipulated using one seamless view. A customer service representative may also view the transfers.

Claims

1. A system for managing transactions, comprising:

a first interface for communicating first information regarding at least one payment source;

a second interface for communicating second information regarding at least one payee account; and

a processor, communicating with the first interface and the second interface, the processor selectably directing a transmission of funds from the at least one payment source to the at least one payee account based on an optimization determination.

2. The system of claim 1, wherein the optimization determination comprises a calculation of at least one of payment source data, payee account data, payment schedule data, payment type data and privacy data.

3. The system of claim 1, wherein the at least one payment source comprises at least one of a direct deposit account, a source credit account, a mortgage account, a securities account, a money market account, a micro payment account, an overdraft account and a stored value account.

4. The system of claim 1, wherein the at least one payee account comprises at least one of a utility account, a mortgage account, a payee credit account, and a contribution account.

5. The system of claim 1, further comprising a storage module, communicating with the processor, the storage module storing at least one of the data on the optimization determination, data on the at least one payment source account, and data on the at least one payee account.

6. The system of claim 1, wherein at least one of the first interface and the second interface comprises a telephone connection.

7. The system of claim 1, wherein at least one of the first interface and the second interface comprises a network connection.

8. The system of claim 7, wherein the network connection comprises a remote client from which a user may communicate transaction instructions.

9. The system of claim 8, wherein the remote client comprises at least one of a computer, a network-enabled cellular telephone, a portable digital assistant, a paging device, and a set-top box.

10. The system of claim 7, wherein the user comprises at least one of a consumer, a business entity and a government entity.

11. The system of claim 1, wherein at least one of the first interface and the second interface comprises a desktop graphical user interface directly communicating with the processor.

12. The system of claim 8, wherein the processor performs an optimization on a transaction carried out according to the transaction instructions.

13. The system of claim 12, wherein the optimization comprises at least one of minimizing a cost variable, fulfilling a transaction schedule, minimizing a payment penalty, maximizing a float of the at least one source account, ensuring an affiliation between the payment source and the payee account, maximizing security, maximizing reliability, minimizing risk, fulfilling a contractual obligation, maximizing volume discounts, aggregating a transaction amounts, maximizing a transaction amount and maximizing available bonus awards.

14. The system of claim 13, wherein the optimization comprises minimizing a cost variable, and the cost variable comprises at least one of a transaction cost charged to a payment initiator and an internal cost absorbed by a payment enabler.

15. The system of claim 1, wherein the optimization determination comprises utilization of third party associations and payment providers.

16. The system of claim 15, wherein members of the third party associations are systematically identified by at least one of real time calls to the third party association, and real time calls to a datastore containing third party association member data which is periodically updated.

17. The system of claim 1, wherein the optimization determination comprises a systematic identification and internal settlement for closed loop payments in which the payment source and the at least one payee account reside within one entity.

18. The system of claim 14, wherein an expense reduction resulting from optimization of the cost variable is realized by at least one of the payment enabler and the payment initiator.

19. The system of claim 2, wherein a payment initiator is presented with at least two mechanisms that meet the payment schedule data and associated costs of the at least two mechanisms, and the payment initiator is permitted to manually choose an optimal method of transfer.

20. The system of claim 1, wherein the transmission of funds comprises a currency conversion.

21. A method for managing transactions, comprising:

a) communicating first information regarding at least one payment source;

b) communicating second information regarding at least one payee account;

c) performing an optimization determination for a transaction from the at least one payment source; and

d) selectably directing a transmission of funds from the at least one payment source to the at least one payee account based on the optimization determination.

22. The method of claim 21, wherein the optimization determination comprises a step e) of calculating at least one of payment source data, payee account data, payment schedule data, payment type data and privacy data.

23. The method of claim 21, wherein the at least one payment source comprises at least one of a direct deposit account, a source credit account, a mortgage account, a securities account, a money market account, a micro payment account, an overdraft account and a stored value account.

24. The method of claim 21, wherein the at least one payee account comprises at least one of a utility account, a mortgage account, a payee credit account, and a contribution account.

25. The method of claim 21, further comprising a step of f) storing at least one of the data on the optimization determination, data on the at least one payment source account, and data on the at least one payee account.

26. The method of claim 21, wherein at least one of step a) and step b) comprises a step of g) communicating via telephone connection.

27. The method of claim 21, wherein at least one of step a) and step b) comprises a step of h) communicating via a network connection.

28. The method of claim 27, wherein the network connection comprises a remote client from which a user may communicate transaction instructions.

29. The method of claim 28, wherein the remote client comprises at least one of a computer, a network-enabled cellular telephone, a portable digital assistant, a paging device, and a set-top box.

30. The method of claim 27, wherein the user comprises at least one of a consumer, a business entity and a government entity.

31. The method of claim 21, wherein at least one of step a) and step b) comprises a step of i) communicating with the processor directly via a desktop graphical user interface.

32. The method of claim 21, further comprising a step of j) performing a further optimization on a transaction.

33. The method of claim 21, wherein the step c) of performing an optimization determination comprises a step k) of performing at least one of minimizing a cost variable, fulfilling a transaction schedule, minimizing a payment penalty, maximizing a float of the at least one source account, ensuring an affiliation between the payment source and the payee account, maximizing security, maximizing reliability, minimizing risk, fulfilling a contractual obligation, maximizing volume discounts, aggregating a transaction amounts, maximizing a transaction amount and maximizing available bonus awards.

34. The method of claim 33, wherein the optimization comprises a step of 1) minimizing a cost variable, and the cost variable comprises at least one of a transaction cost charged to a payment initiator and an internal cost absorbed by a payment enabler.

35. The method of claim 21, wherein the optimization determination comprises utilization of third party associations and payment providers.

36. The method of claim 35, wherein members of the third party associations are systematically identified by at least one of real time calls to the third party association, and real time calls to a datastore containing third party association member data which is periodically updated.

37. The method of claim 21, wherein the optimization determination comprises a systematic identification and internal settlement for closed loop payments in which the payment source and the at least one payee account reside within one entity.

38. The method of claim 34, wherein an expense reduction resulting from optimization of the cost variable is realized by at least one of the payment enabler and the payment initiator.

39. The method of claim 22, wherein a payment initiator is presented with at least two mechanisms that meet the payment schedule data and associated costs of the at least two mechanisms, and the payment initiator is permitted to manually choose an optimal method of transfer.

40. The method of claim 21, wherein the transmission of funds comprises a currency conversion.

41. A system for managing transactions, comprising:

means for communicating first information regarding at least one payment source;

means for communicating second information regarding at least one payee account; and

optimization means, communicating with the means for communicating first information and the means for communicating the second information, the optimization means selectably directing a transmission of funds from the at least one payment source to the at least one payee account based on an optimization determination.