Method and system for payment processing

• US 7,953,660 B2
• Filed: 03/30/2001
• Issued: 05/31/2011
• Est. Priority Date: 12/28/2000
• Status: Active Grant

• Current Assignee: Checkfree Services Corporation (Fiserv Incorporated)
• Original Assignee: Checkfree Services Corporation (Fiserv Incorporated)
• Inventors: Ganesan, Ravi, Magers, Jim, Herdklotz, Tim, Kight, Peter
• Primary Examiner(s): Colbert; Ella
• Application Number:
  US09/820,803
• Publication Number:
  US 20020087471A1
• Time in Patent Office: 3,714 Days
• Field of Search: 705/35, 705/39, 705/40, 705/1, 705/1.1, 705/37, 709/228, 709/237, 385/1, 385/15
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 30/04 Billing or invoicing

Abstract

The present invention provides a method, system, and article of manufacture for providing payment services on a network. Information identifying a network user is received. The network user is assigned a payer status. A request to make a payment to a payee on behalf of the network user is received. If a first payer status is assigned to the network user, the payment will be made no matter the identity of the payee. If a second payer status is assigned to the network user, the payment will only be made if the payee is one of a group of payees that is not determined by the network user. With the second payer status, the network user can only direct payments to the group of payees. The payer status can be changed from one payer status to another payer status.

Claims

1. A method, comprising:

maintaining by a processing system comprising one or more server computers, a data repository of registered users, the data repository, comprising information for a first network user having a first registration status that is set to an open status indicating that the processing agent system will, process payment requests on behalf of the first network user to both preferred payees included in a plurality of preferred payees and to at least one other payee not included in the plurality of preferred payees;

receiving, by the processing agent system, information identifying a second network user;

determining, by the processing agent system responsive to receiving the information identifying the second network user, a credit risk associated with making payments on behalf of the second network user;

setting, by the processing agent system based at least in part on the determined credit risk, a second registration status for the second network user to a closed status indicating that the processing agent system will only process payment requests on behalf of the second network user to the preferred payees included in the plurality of preferred payees;

transmitting, from the processing agent system for presentation to the first user, an open payment screen that allows payment to both the preferred payees and the at least one other payee; and

transmitting, from the processing agent system;

for presentation to the second user, when a closed payment screen that only allows payment to the preferred payees.

2. The method of claim 1, wherein receiving information identifying a second network user comprises receiving information identifying the second network user from a sponsor of the second network user.

3. The method of claim 1, wherein setting a second registration status comprises setting the second registration status when the plurality of preferred payees is determined by an entity other than the second network user.

4. The method of claim 3, wherein setting a second registration status comprises setting the second registration status when the entity is a sponsor of the second network user.

5. The method of claim 3, wherein setting a second registration status comprises setting the second registration status when the entity is the processing agent.

6. The method of claim 1, wherein setting a second registration status comprises setting the second registration status based at least in part upon the identity of a sponsor of the second network user.

7. The method of claim 1, wherein a payee is included in the plurality of preferred payees as a result of (i) an agreement between the payee and the processing agent, (ii) an agreement between a sponsor associated with the network user and the processing agent, or (it) an analysis or a history of payments directed to the payee.

8. The method of claim 1, further comprising:

changing, by the processing agent system, the second registration status to the open status.

9. The method of claim 8, wherein determining the credit risk comprises determining a first credit risk, and further comprising:

determining, subsequent to setting the second registration status, a second credit risk associated with making payments on behalf of the second network user,

wherein changing the second registration status to the open status comprises changing the second registration status based at least in part on the determined second credit risk.

10. The method of claim 8, further comprising:

notifying, by the processing agent system, the second network user of the change in the second registration status.

11. The method of claim 8, further comprising:

receiving, by the processing agent system, a request from the second network user to upgrade from the closed status to the open status, wherein the second registration status is changed from the closed status to the open status responsive to the received request.

12. The method of claim 8, further comprising:

storing, by the processing agent system, a payment history associated with the second network user, wherein the second registration status is changed based on the stored payment history.

13. The method of claim 12, wherein changing the registration status based on the stored payment history includes at least one of (i) determining a length of time the second network user has been registered for payment processing, (it) determining a number of payments directed by the second network user, (iii) determining a number of payments directed by the second network user for which a debit was not honored, or (iv) determining a function relating to a number of payments directed by the second network user for which a debit was not honored to a total number of payments directed by the second network user.

14. The method of claim 1 further comprising:

changing, by the processing agent system, the first registration status to the closed status.

15. A system, comprising:

at least one communications port configured to receive and transmit information via a network;

at least one memory configured to store information associated with providing electronic payment services; and

at least one processor in communication with the at least one communications port and the at least memory and programmed to

     1) receive, from the at least one communications port, information identifying a network user,

     2) determine, responsive to receiving the information identifying the network user, a credit risk associated with making payments by a processing agent on behalf of the network user,

     3) set, based at least in part on the determined credit risk, a registration status for the network user to one of a closed status indicating that the processing agent will only process payment requests on behalf of the network user to preferred payees included in a plurality of preferred payees, or an open status indicating that the processing agent wilt process payment requests on behalf of the network user to both the preferred payees and to at least one other payee not included in the plurality of preferred payees,

     4) direct, when the registration status is set to the closed status, the transmission of a closed payment screen that only allows payment to the preferred payees; and

     5) direct, when the registration status is set to the open status, the transmission of an open payment screen that allows payment to both the preferred payees and the at least one other payee.

16. The system of claim 15, wherein the information identifying the network user is received from a sponsor of the network user.

17. The system of claim 15, wherein the defined plurality of preferred payees is determined by an entity other than the network user.

18. The system of claim 17, wherein the entity is a sponsor of the network user.

19. The system of claim 17, wherein the entity is the processing agent.

20. The system of claim 15, wherein setting the registration status associated with the network user to one of the open status or the closed status is based at least in part upon the identity of a sponsor of the network user.

21. The system of claim 15, wherein the at least one processor is further programmed to:

set the registration status to the closed status prior to determining the credit risk and during a real-time communication session with the network user,

wherein the registration status is set to the open status outside a real-time communication session with the network user.

22. The system of claim 15, wherein a payee is included in the plurality of preferred payees as a result of (i) an agreement between the payee and the processing agent, (ii) an agreement between a sponsor associated with the network user and the processing agent, or (ii) an analysis of a history of payments directed to the payee.

23. The system of claim 15, wherein the at least one processor is further programmed to:

change the registration status to an other of the closed status or the open status.

24. The system of claim 23, wherein the credit risk comprises determining a first credit risk, and wherein the processor is further programmed to:

determine, subsequent to setting the registration status, a second credit risk associated with making payments on behalf of the network user, and

change the registration status to the other of the open status or the closed status based at least in part on the determined second credit risk.

25. The system of claim 23, wherein the at least one processor is further programmed to:

notify the network user of the change in registration status.

26. The system of claim 23, wherein the registration status is initially set to the closed status, and wherein the at least one processor is further programmed to:

receive, via the network and from the at least one communications port, a request from the network user to upgrade from the closed status to the open status, wherein the registration status is changed from the closed status to the open status responsive to the received request.

27. The system of claim 23, wherein the at least one processor is further programmed to:

store a payment history associated with the network user in the at least one memory, wherein the registration status is changed to the other of the closed status or the open status based on the stored payment history.

28. The system of claim 27, wherein the change in the registration status based on the stored payment history includes at least one of (i) determining a length of time the network user has been registered for payment processing, (ii) determining a number of payments directed by the network user, (iii) determining a number of payments directed by the network user for which a debit was not honored, or (iv) determining a function relating a number of payments directed by the network user for which a debit was not honored to a total number of payments directed by the network user.

29. A system, comprising:

means for maintaining, by a processing agent system comprising one or more server computers, a data repository of registered users, the data repository comprising information for a first network user having a first registration status that is set to an open status indicating that the processing agent system will process payment requests on behalf of the first network user to both preferred payees included in a plurality of preferred payees and to at least one other payee not included in the plurality of preferred payees;

means for receiving, by the processing agent system, information identifying a second network user;

means for determining, by the processing agent system responsive to receiving the information identifying the second network user, a credit risk associated with making payments on behalf of the second network user;

means for setting, by the processing agent system based at least in part on the determined credit risk, a second registration status for the second network user a closed status indicating that the processing agent system will only process payment requests on behalf of the second network user to the preferred payees included in the plurality of preferred payees;

means for transmitting, from the processing agent system for presentation to the first user, an open payment screen that allows payment to both the preferred payees and the at least one other payee; and

means for transmitting, from the processing agent system for presentation to the second user, a closed payment screen that only allows payment to the preferred payees.