Consumer-directed financial transfers using automated clearinghouse networks

• US 7,395,241 B1
• Filed: 01/19/2000
• Issued: 07/01/2008
• Est. Priority Date: 01/19/2000
• Status: Expired due to Term

• Current Assignee: Intuit, Inc.
• Original Assignee: Intuit, Inc.
• Inventors: Lacerte, Rene A., Cook, Scott D.
• Primary Examiner(s): Dass; Harish T
• Application Number:
  US09/487,233
• Time in Patent Office: 3,086 Days
• Field of Search: 705 39- 40, 705/43, 705/45, 705/42, 705/78, 235/379, 283/58, 283/67, 382/137
• 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 20/023 the neutral party being a clearing house
• 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 20/0855 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 20/102 Bill distribution or payments
• 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 20/20 Point-of-sale [POS] network systems
• 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
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Consumer directed transfers of funds over the Internet are provided by a combination of systems and networks, including the Internet, email, and the Automated Clearinghouse system (ACH). A host system provided by a funds transfer service manages requests of senders to transfer funds and further manages responses of receivers to claim funds. The host system allows the sender to initiate the funds transfer by specifying the amount of the transfer and information for contacting the receiver, without the need to specify the account of the receiver for receiving the funds. Instead, the host system contacts the receiver and informs the receiver of the available funds; the receiver can then provide the necessary target account information for completing the funds transfer. The ACH is used to effect the transfer of funds, with the host system providing instructions for ACH entries to its financial institution using account information separately received from the sender and receiver. The credit risk associated with originating ACH entries is reduced by use of the Point of Sale system to verify sufficient funds in the sender'"'"'s account by comparing the closing balance of the day the funds transfer is requested with the transfer amount. Sender fraud is reduced by comparing a sender provided balance (or check number/amounts) with an account balance acquired through automated means such as the POS system or ATM network.

Claims

1. A computer implemented method of electronically transferring funds from a sender to a receiver, comprising:

a host system, operating on a conventional computer system and communicatively coupled to a host financial institution that is an automated clearinghouse (ACH) member at which is maintained a host account, receiving from the sender an amount of a funds transfer, a designation of a source account for the funds transfer, and a contact information of the receiver sufficient for contacting the receiver, without receiving from the sender a designation of a target account of the receiver;

the host system contacting the receiver using the information provided by the sender, and informing the receiver that the sender is capable of initiating a transfer of funds to the receiver;

the host system receiving from the receiver the designation of the target account for receiving the funds from the sender after the host system has contacted the receiver using the information provided by the sender; and

the host system providing a first instruction to the host financial institution to cause the transfer of funds from the source account to the host account; and

the host system providing a second instruction to the host financial institution to cause the transfer of funds from the host account to the target account;

wherein any of the first instruction and the second instruction effects through an ACH network a number of ACH entries to transfer funds;

wherein the sender is not required to have a previously established ACH originator relationship with an ACH member at which the receiver'"'"'s target account is maintained.

2. The method of claim 1, wherein the designation of the source account includes a routing/transit number and an account number.

3. The method of claim 1, wherein the designation of the target account includes a routing/transit number and an account number.

4. The method of claim 1, further comprising receiving the amount of the funds transfer, the designation of the source account for the funds transfer, and the contact information of the receiver from the sender via a web site.

5. The method of claim 1, further comprising receiving the amount of the funds transfer, the designation of a source account for the funds transfer, and the contact information of the receiver from the sender with an interactive voice response unit.

6. The method of claim 1, further comprising receiving the amount of the funds transfer, the designation of a source account for the funds transfer, and the contact information of the receiver from the sender by email.

7. The method of claim 1, further comprising receiving the amount of the funds transfer, the designation of a source account for the funds transfer, and the contact information sufficient of the receiver from the sender by a message from a financial management application of the sender.

8. The method of claim 1, further comprising:

including in an email to the receiver computer readable data for updating a financial management application of the receiver'"'"'s with information describing the funds transfer.

9. The method of claim 1, further comprising:

receiving from the sender bill identification information that identifies a bill received from the receiver; and

transmitting the bill identification information to the receiver to aloe the receiver to credit the sender with payment of the bill for the amount of the funds transfer.

10. The method of claim 1, further comprising;

authenticating the sender by;

receiving from the sender a first account balance of the source account;

receiving from an automated system a second account balance of the source account;

comparing the first account balance with the second account balance; and

continuing the funds transfer if the first account balance and second account balance match.

11. The method of claim 10, further comprising:

adjusting the first account balance with at least one current transaction occurring after the second account balance was last updated.

12. The method of claim 10, wherein the automated system is the Automated Teller Machine system.

13. The method of claim 1, further comprising;

authenticating the sender by;

receiving from the sender a check number and an amount for a check drawn on the source account;

providing the check number to an automated system to determine the amount of the check;

comparing the amount of the check received from the sender with the amount for the check received from an automated system to determine whether the amounts match; and

continuing the funds transfer if the check amounts match.

14. The method of claim 1, further comprising:

authenticating the sender by;

receiving from the sender a user name and password for an personal online account of the sender;

attempting to access the sender'"'"'s personal online account via an online system using the received user name and password; and

responsive to successfully accessing the sender'"'"'s personal online account, continuing with the funds transfer.

15. The method of claim 1, further comprising:

determining whether there is sufficient funds in the source account to effect the funds transfer without overdrawing the account;

responsive to there being sufficient funds,

providing the instructions to the ACH member to effect the ACH entries.

16. The method of claim 1, further comprising:

determining that the receiver identified by the sender is the sender; and

automatically prompting the sender to provide a target account for the funds transfer.

17. The computer implemented method of claim 1, further comprising:

authenticating the sender by;

receiving a first amount from the sender regarding a financial transaction, wherein the financial transaction is associated with the source account;

comparing the first amount with a second amount, wherein the second amount is associated with the source account; and

authenticating the sender based on at least comparing the first amount with the second amount.

18. A computer implemented method of electronic funds transfer from a sender for paying bills from a business receiver, the method comprising:

a host system, operating on a conventional computer system and communicatively coupled to a host financial institution that is an automated clearinghouse (ACH) member at which is maintained a host account, receiving from the sender;

an amount of a funds transfer for paying a bill from the business receiver;

a designation of the sender'"'"'s source account for the funds transfer;

a contact information of the business receiver sufficient for contacting the business receiver, without receiving from the sender a designation of a target account of the business receiver; and

payment routing information including at least one of a designation of the business account of the sender with the business receiver or bill identification information of a bill;

the host system contacting the business receiver using the contact information provided by the sender, and informing the business receiver that the sender is capable of initiating a transfer of funds to the receiver;

the host system receiving from the business receiver the designation of the target account for receiving the funds for payment of bills from the sender after the host system has contacted the business receiver using the contact information provided by the sender;

the host system electronically transmitting the source account designation of the sender and the target account designation of the business receiver to the host financial institution, providing a first instruction to the host financial institution to effect a number of ACH entries to cause a plurality of funds transfers from the source account of the sender to the host account, and providing a second instruction to credit the amount of funds transfer to the target account of the business receiver; and

the host system providing the business receiver with the payment routing information of the sender and the amount of funds transfer by the sender to allow the business receiver to credit the sender for the amount of the funds transfer.

19. The computer implemented method of claim 18, further comprising:

authenticating the sender by;

receiving a first amount from the sender regarding a financial transaction, wherein the financial transaction is associated with the source account;

comparing the first amount with a second amount, wherein the second amount is associated with the source account; and

authenticating the sender based on at least comparing the first amount with the second amount.