Many-to-many correspondance:methods and systems for replacing interbank funds transfers

• US 20030212641A1
• Filed: 03/25/2003
• Published: 11/13/2003
• Est. Priority Date: 04/26/2000
• Status: Active Grant

• Current Assignee: Oracle International Corporation (Oracle Corporation)
• Original Assignee: Oracle International Corporation (Oracle Corporation)
• Inventors: Johnson, Richard C.
• Granted Patent: US 7,599,885 B2
• Time in Patent Office: Days
• US Class Current: 705/64
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/38215 Use of certificates or encrypted proofs of transaction rights
• 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

By establishing a correspondence account in each Financial Service Provider (FSP) of a group of FSPs and a secure inter-FSP messaging mechanism, transfers of funds entirely within member FSPs (FSP 1, FSP may be combined with secure messaging to effectively transfer funds between buyers in one FSP (FSP 2) and sellers in another FSP (FSP 1) without actual transfer of funds between FSP'"'"'s.

Claims

1. A method of transferring a payment to a seller having an account at a first Financial Service Provider (FSP) from a buyer having an account at a second FSP, the first FSP owning a first account at the first FSP and the second FSP owning a second account at the second FSP, the method comprising the steps of:

establishing a second correspondence account at the second FSP, the second correspondence account being owned by the first FSP;

debiting the payment from the buyer'"'"'s account and correspondingly crediting the payment to the second account;

debiting the payment from the second account and correspondingly crediting the payment to the second correspondence account, and

sending a secure message to the first FSP, advising the first FSP that the payment has been transferred to the second correspondence account and requesting that funds corresponding to the transferred payment be credited to the seller'"'"'s account.

2. The method of claim 1, wherein the first FSP carries out a step of debiting the payment from the first account and correspondingly crediting the seller'"'"'s account upon receipt of the message.

3. The method of claim 1, further comprising a step of establishing a first correspondence account at the first FSP, the first correspondence account being owned by the second FSP.

4. The method of claim 1, further comprising a step of receiving an acknowledgment from the first FSP, the acknowledgment at least indicating receipt of the secure message by the first FSP.

5. The method of claim 1, further comprising a step of receiving an acknowledgment from the first FSP, the acknowledgment at least indicating that the payment has been credited to the seller'"'"'s account.

6. The method of claim 1, further comprising at least one step of assessing a fee from at least one of the buyer, the seller, the first FSP and the second FSP.

7. The method of claim 1, wherein the buyer'"'"'s account includes one of a credit, debit, FSP and payment card.

8. The method of claim 1, wherein the seller'"'"'s account includes one of a credit, debit, FSP and payment card.

9. A method of transferring a payment to a seller having an account at a first Financial Service Provider (FSP) from a buyer having an account at a second FSP, comprising the steps of:

establishing a second correspondence account at the second FSP, the second correspondence account being owned by the first FSP;

debiting the payment from the buyer'"'"'s account and correspondingly crediting the second correspondence account, and

sending a secure message to the first FSP, advising the first FSP that the payment has been transferred to the second correspondence account and requesting that funds corresponding to the transferred payment be credited to the seller'"'"'s account.

10. The method of claim 9, wherein the first FSP owns a first account at the first FSP and carries out a step of debiting the payment from the first account and correspondingly crediting the payment to the seller'"'"'s account upon receipt of the secure message.

11. The method of claim 9, further comprising the step of establishing a first correspondence account at the first FSP, the first correspondence account being owned by the second FSP.

12. The method of claim 9, further comprising a step of receiving an acknowledgment from the first FSP, the acknowledgment at least indicating receipt of the secure message by the first FSP.

13. The method of claim 9, further comprising a step of receiving an acknowledgment from the first FSP, the acknowledgment at least indicating that the seller'"'"'s account at the first FSP has been correspondingly credited.

14. The method of claim 9, further comprising at least one step of assessing a fee from at least one of the buyer, the seller, the first FSP and the second FSP.

15. The method of claim 9, wherein the buyer'"'"'s account includes one of a credit, debit, FSP and payment card.

16. The method of claim 9, wherein the seller'"'"'s account includes one of a credit, debit, FSP and payment card.

17. A method of transferring a payment to a seller having an account at a first Financial Service Provider (FSP) from a buyer having an account at a second FSP, the second FSP owning a second account at the second FSP, the method comprising the steps of:

establishing a first correspondence account at the first FSP, the first correspondence account being owned by the second FSP;

debiting the payment from the buyer'"'"'s account and correspondingly crediting the payment to the second account, and

sending a secure message to the first FSP, advising the first FSP to debit the payment from the first correspondence account and correspondingly credit the payment to the seller'"'"'s account.

18. The method of claim 17, further comprising the step of establishing a second correspondence account at the second FSP, the second correspondence account being owned by the first FSP.

19. The method of claim 17, wherein the first FSP further carries out a step of debiting the payment from the first correspondence account and correspondingly crediting the payment to the seller'"'"'s account upon receipt of the message.

20. The method of claim 17, further comprising a step of receiving an acknowledgment from the first FSP, the acknowledgment at least indicating receipt of the secure message by the first FSP.

21. The method of claim 17, further comprising a step of receiving an acknowledgment from the first FSP, the acknowledgment at least indicating that the seller'"'"'s account has been correspondingly credited.

22. The method of claim 17, further comprising at least one step of assessing a fee from at least one of the buyer, the seller, the first FSP and the second FSP.

23. The method of claim 17, wherein the buyer'"'"'s account includes one of a credit, debit, FSP and payment card.

24. The method of claim 17, wherein the seller'"'"'s account includes one of a credit, debit, FSP and payment card.

25. A method of transferring a payment through a Financial Service Provider (FSP) to a seller having an account at a first FSP from a buyer having an account at a second FSP, the financial service provider maintaining a first account for the first FSP and a second account for the second FSP, comprising the steps of:

debiting the payment from the buyer'"'"'s account;

sending a first secure message to the financial service provider, instructing the financial service provider to debit the payment from the second account and correspondingly credit the payment to the first account;

receiving a second secure message from the first FSP, advising the second FSP that the payment has been transferred to the seller'"'"'s account.

26. The method of claim 25, wherein the financial service provider further carries out a step of securely notifying the first FSP of the crediting of the payment to the first account.

27. The method of claim 25, wherein the first FSP carries out a step of crediting the payment to the seller'"'"'s account and sending the second secure message to the second FSP.

28. The method of claim 25, wherein the financial service provider includes one of a Central National Bank and the Federal Reserve Bank.

29. The method of claim 25, wherein the financial service provider includes an issuer of at least one of a credit, debit, bank and payment card.

30. The method of claim 25, further comprising at least one step of assessing a fee from at least one of the buyer, the seller, the first FSP and the second FSP.

31. The method of claim 25, wherein the buyer'"'"'s account includes one of a credit, debit, bank and payment card.

32. The method of claim 25, wherein the seller'"'"'s account includes one of a credit, debit, bank and payment card.

33. A method for an organization to intermediate between a buyer transferring a payment from a buyer account at a first FSP to a seller account at a second FSP, the organization maintaining a first account for the first FSP and a second account for the second FSP, comprising the steps of:

receiving a first secure message from a first FSP, the first secure message instructing the financial service provider to debit the payment from the first account and correspondingly credit the payment to the second account;

after receiving the first secure message, debiting the payment from the first account and correspondingly crediting the payment to the second account, and

sending a second secure message to the second FSP, advising the second FSP of the crediting of the payment to the second account and instructing the second FSP to correspondingly credit the payment to the seller'"'"'s account.

34. The method of claim 33, wherein the organization includes one of a Central National Bank and the Federal Reserve Bank.

35. The method of claim 33, wherein the organization includes an issuer of at least one of a credit, debit, bank and payment card.

36. The method of claim 33, further comprising at least one step of assessing a fee from at least one of the buyer, the seller, the first FSP and the second FSP.

37. The method of claim 33, wherein the buyer'"'"'s account includes one of a credit, debit, bank and payment card.

38. The method of claim 33, wherein the seller'"'"'s account includes one of a credit, debit, bank and payment card.

39. A method for a card issuing company to transfer a payment from a buyer having a buyer account at a first FSP to a seller having a seller account at a second FSP, each of the first and second FSPs maintaining a correspondence account for the card issuing company, comprising the steps of:

debiting the payment from the buyer account and correspondingly crediting the payment to the card issuing company'"'"'s correspondence account at the first FSP;

sending a first secure message to the second FSP, the secure message advising the second FSP that the payment has been credited to the card issuing company'"'"'s correspondence account at the first FSP;

receiving a second secure message from the second FSP, the second secure message advising the first FSP that the payment has been debited from the card issuing companys correspondence account at the second FSP and credited to the seller account.

40. A method for a card issuing company to transfers a payment from a buyer having a buyer account at a first FSP to a seller having a seller account at a second FSP, each of the first and second FSPs maintaining a correspondence account for the card issuing company, comprising the steps of:

receiving a first secure message from the first FSP, the secure message indicating that the payment has been debited from the buyer account and credited to the card issuing company'"'"'s correspondence account in the first FSP;

responsive to receiving the first secure message, debiting the payment from the card issuing company'"'"'s correspondence account in the second FSP and correspondingly crediting the payment to the seller account,

sending a second secure message to the first FSP, the secure message advising the first FSP that the payment has been credited to the seller account.