System for distributing funds

• US 8,015,085 B2
• Filed: 11/11/2004
• Issued: 09/06/2011
• Est. Priority Date: 11/14/2003
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Inventors: Rodin, Michael F., Blagg, Lynn
• Primary Examiner(s): Kazimi; Hani
• Assistant Examiner(s): Ali; Hatem
• Application Number:
  US10/987,031
• Publication Number:
  US 20050177496A1
• Time in Patent Office: 2,490 Days
• Field of Search: 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• 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

A system is described allowing the transfer of funds, for example, from an employer to a third-party intermediary which can distribute the funds via a payroll card to an employee. The system allows a portion of the population such as that which does not use traditional bank accounts to receive funds via a payroll card at a variety of locations without the necessity of visiting the bank location of the employer to cash a check. Other embodiments of the invention allow funds to be distributed from a first party to a second party via an intermediary party.

Claims

1. A method of distributing funds from an absent parent of a child to a custodial parent of the child, said method comprising:

maintaining a bank account at a banking institution into which funds from the absent parent are deposited;

upon the deposit of funds in the bank account, immediately receiving the funds at a computer system of a licensed money transmitter, wherein the licensed money transmitter is not a bank;

maintaining at the computer system a transaction account of the licensed money transmitter for access by the custodial parent, wherein the transaction account is not an FDIC insured account;

allocating with the computer system at least a portion of the received funds to the transaction account for access by the custodial parent;

distributing a child support payment card with the computer system to said custodial parent of said child, the card associated with the transaction account;

configuring said child support card with the computer system so as to allow said custodial parent to access the allocated funds in the transaction account;

providing access to the absent parent at the computer system of remaining funds transferred to the computer system and not allocated to the transaction account for the custodial parent; and

accruing interest on said allocated funds with the computer system and for the benefit of the licensed owner transmitter, during the time period between when said funds are received from said absent parent and the time when said funds are accessed by said custodial parent, without an obligation of crediting the interest to either said absent parent or said custodial parent.

2. A method of distributing funds from an absent parent of a child to a custodial parent of the child, said method comprising:

maintaining a bank account at a banking institution into which funds from the absent parent are deposited;

upon the deposit of funds in the bank account, immediately crediting the funds at a computer system of a licensed money transmitter, wherein the licensed money transmitter is not a bank;

maintaining at the computer system a transaction account for access by the custodial parent, wherein the transaction account is not an FDIC insured account;

allocating with the computer system at least a portion of the credited funds to the transaction account for access by the custodial parent;

distributing a child support payment card with the computer system to said custodial parent of said child, the card associated with the transaction account;

configuring said child support card with the computer system so as to allow said custodial parent to access the allocated funds in the transaction account; and

providing access to the absent parent at the computer system of remaining funds transferred to the computer system and not allocated to the transaction account for the custodial parenting.

3. The method as described in claim 2 and further comprising:

receiving a legal document at the computer system from said custodial parent authorizing garnishment of wages from said absent parent;

garnishing said wages of said absent parent with the computer system in accordance with terms of said legal document so as to obtain garnished wages; and

banking said garnished wages with the computer system in the transaction account of the licensed money transmitter for access by the custodial parent as the allocated funds.

4. The method as described in claim 2 wherein said payment card is a stored value card.

5. The method as described in claim 2 wherein said payment card comprises an account identifier for use in authorizing access to said account.

6. The method as described in claim 2 wherein said payment card is operable to access said account using an automated teller machine.

15. The method as described in claim 2 and further comprising:

receiving a legal document at the computer system from said custodial parent authorizing garnishment of wages from said absent parent;

garnishing said wages of said absent parent with the computer system in accordance with terms of said legal document, the garnished wages comprising the funds allocated to the transaction account.

16. The method of claim 2, further comprising:

accruing interest on the allocated funds with the computer system and for the benefit of the licensed owner transmitter, during the time period between when the deposited funds are received from said absent parent and the time when the allocated funds are accessed by said custodial parent, without an obligation of crediting the interest to either said absent parent or said custodial parent.

17. The method of claim 2, wherein the funds deposited into the bank account are a direct deposit via an ACH transaction.

18. The method of claim 2, wherein the absent parent is a first absent parent, and further comprising:

receiving at the computer system funds directly from a second absent parent, in addition to the funds deposited by the first absent parent at the banking institution and received at the computer system, and crediting the funds from the second absent parent to a second transaction account; and

configuring a second child support card with the computer system so as to allow a second custodial parent to access the funds in the second transaction account.

7. A method of earning interest on deposited payroll funds, said method comprising:

maintaining a bank account into which employer funds to be distributed to an employee are deposited;

upon deposit of the employer funds at the bank account, immediately receiving at a computer system of a licensed money transmitter the employer funds;

disposing said funds with the computer system in a first account maintained by the licensed money transmitter, wherein the licensed money transmitter is not a bank and wherein the first account is not an FDIC insured account;

indicating in a computer file of the computer system an availability of said funds for distribution to said employee after said receiving said funds at the computer system;

receiving at the computer system a request for said funds from said employee;

confirming with the computer system said availability of said funds for distribution to said employee by checking said computer file;

if said funds are available, distributing with the computer system said funds to said employee; and

accruing interest with the computer system on said funds during the time period between when said funds are received from said employer and said time when said funds are distributed to said employee without an obligation of crediting said interest to either said employer or said employee, so that said funds can be provided by the licensed money transmitter to capitalize productive projects.

8. The method as described in claim 7 wherein said distributing said funds to said employee comprises transferring said funds from said first account to a stored value card.

9. The method as described in claim 7 wherein said distributing said funds to said employee comprises transferring said funds from said first account to a second account wherein said second account is in the name of said employee.

10. The method as described in claim 7 wherein the employer funds are deposited in the bank account via a direct deposit ACH transaction and wherein the method further comprises:

transferring said funds from the first account to an account held in the name of said employee, after said employee requests said funds.

11. A method of earning interest on child support funds, said method comprising:

establishing an account at a bank into which funds, from an absent parent to a custodial parent, are deposited;

upon deposit of the funds in the bank account, immediately receiving at a computer system of a licensed money transmitter the funds, wherein the licensed money transmitter is not a bank;

disposing said funds with the computer system in a first account of the licensed money transmitter, wherein the account is not an FDIC insured demand deposit account;

indicating in a computer file of the computer system an availability of said funds for distribution to said custodial parent after said receiving said funds from said absent parent;

receiving at the computer system a request for said funds from said custodial parent;

confirming with the computer system said availability of said funds for distribution to said custodial parent by checking said computer file;

if said funds are available, distributing said funds with the computer system to said custodial parent; and

accruing interest on said funds with the computer system during the time period from when said funds are received from said absent parent and said time when said funds are distributed to said custodial parent without the obligation of crediting said interest to either said absent parent or said custodial parent, so that said funds can be used by the licensed money transmitter to capitalize productive projects.

12. The method as described in claim 11 wherein said distributing said funds to said custodial parent comprises transferring said funds from said first account to a stored value card.

13. The method as described in claim 11 wherein said distributing said funds to said custodial parent comprises transferring said funds from said first account to a second account wherein said second account is in the name of said custodial parent.

14. The method as described in claim 11 wherein said funds are deposited in the bank account by direct deposit via an ACH transaction and further comprising:

transferring said funds from the first account to an account held in the name of said custodial parent, after said custodial parent requests said funds.