Method and apparatus for implementing financial transactions

• US 7,505,937 B2
• Filed: 01/25/2007
• Issued: 03/17/2009
• Est. Priority Date: 09/20/2000
• Status: Expired due to Fees

• Current Assignee: Checkfree Services Corporation (Fiserv Incorporated)
• Original Assignee: CashEdge Incorporated (Fiserv Incorporated)
• Inventors: Dilip, Venkatachari, Dheer, Sanjeev
• Primary Examiner(s): WEISBERGER, RICHARD C
• Application Number:
  US11/698,703
• Publication Number:
  US 20070136169A1
• Time in Patent Office: 782 Days
• Field of Search: 705 35- 45
• US Class Current: 705/37
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• 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 20/401 Transaction verification
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A withdrawal of assets is initiated from a first account at a first financial institution. A deposit of the assets withdrawn from the first account is initiated to a second account at a second financial institution. The first account and the second account have a common account holder. The withdrawal and deposit of assets may be initiated after analyzing multiple accounts of the account holder and determining whether an adjustment of funds among the multiple accounts would benefit the account holder. A debit instruction is used to initiate the withdrawal of assets and a credit instruction is used to initiate the deposit of the withdrawn assets. The withdrawal and deposit of assets can be implemented using one or more payment networks, debit networks, or a wire transfer between the two financial institutions.

Claims

1. A method for executing a financial transaction, comprising:

in a first transaction, a third-party financial management system executing a debit transaction with a first financial institution to withdraw funds at the request of an initiator from a source account owned by the initiator, and executing a credit transaction to deposit the funds in an intermediate account owned by a third-party system, wherein the intermediate account is not owned by the initiator;

holding the funds from the debit transaction in the intermediate at a third financial institution; and

in a second transaction, the third-party system executing a debit transaction with the third financial institution to withdraw the funds, and executing a credit transaction with a second financial institution to deposit the funds in an account owned by the initiator at the second financial institutions, wherein the amount of funds deposited equals the amount of funds withdrawn from the source account, and wherein the third-party system is independent from the first financial institution, the second financial institution, and the third financial institution, and wherein the third-party system communicates with the first financial institution, the second financial institution, and the third financial institution via a network.

5. The method of claim 1, wherein the funds are withdrawn from the source account via a first payment network, and the funds are deposited in account at the second financial institution via a second payment network.

6. The method of claim 1, wherein the funds are withdrawn from the source account via an automated clearing house (ACH) network, and the funds are deposited in the account at the second financial institution via an ACH network.

7. The method of claim 1, wherein the funds are withdrawn from the source account via a capitalized EFT network comprising a NYCE network and a STAR network.

8. The method of claim 1, wherein the funds are deposited in the account at the second financial institution via a capitalized EFT network comprising a NYCE network and a STAR network.

9. The method of claim 1, wherein the funds are deposited in the account at the second financial institution via a wire transfer.

10. The method of claim 1, wherein the withdrawal of funds from the source account comprises a loan from the source account.

11. The method of claim 1, further comprising opening the second account, and wherein depositing the funds in the account at the second financial institution comprises initially funding the account at the second financial institution.

2. A computer-readable medium storing instructions which, when executed by a processor, cause a system to perform a method for executing a financial transaction, the method comprising:

in a first transaction, a third-party financial management system executing a debit transaction with a first financial institution to withdraw funds at the request of an initiator from a source account owned by the initiator, and executing a credit transaction to deposit funds in an intermediate account owned by a third-party system, wherein the intermediate account is not owned by the initiator;

holding the funds from the debit transaction in the intermediate account at a third financial institution; and

in a second transaction, the third-party system executing a debit transaction with the third financial institution to withdraw the funds, and executing a credit transaction with a second financial institution to deposit the funds in an account owned by the initiator at the second financial institution, wherein the amount of funds deposited equals the amount of funds withdrawn from the source account, and wherein the third-party system is independent from the first financial institution, the second financial institution, and the third financial institution, and wherein the third-party system communicates with the first financial institution, the second financial institution, and the third financial institution via a network.

3. The computer-readable medium of claim 2, wherein the first account and the second account are commonly owned.

4. The computer-readable medium of claim 2, wherein the financial transaction comprises:

opening a new account at the second financial institutions; and

funding the new account with the funds from the debit transaction.