Electronic payment system utilizing intermediary account

• US 8,086,530 B2
• Filed: 12/11/2000
• Issued: 12/27/2011
• Est. Priority Date: 11/17/1998
• Status: Expired due to Fees

• Current Assignee: Precash Incorporated
• Original Assignee: Precash Incorporated
• Inventors: Resnick, David, Callanan, Matt J.
• Primary Examiner(s): MILEF, ELDA G
• Application Number:
  US09/734,988
• Publication Number:
  US 20010001321A1
• Time in Patent Office: 4,033 Days
• Field of Search: 705/39, 705/41, 705/35, 705/43, 705/40, 705/44, 705/16, 705/17, 705/77, 705/42
• 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 20/04 Payment circuits
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• 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 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• 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 40/12 Accounting
• CPC Class Codes: G07F 19/211 Software architecture within ATMs or in relation to the ATM network
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered

Abstract

Payments in cash are submitted to a merchant at a point of sale. The payment transaction is effected electronically to credit the end user'"'"'s intermediary account. Subsequent electronic communications between the intermediary account and a vendor site effect payment to the vendor for goods or services on behalf of the end user. This system leverages the existing credit card payment system in reverse so as to provide the convenience of submitting cash payments at a multitude of merchant locations.

Claims

1. A method for effecting electronic payment, comprising:

associating an intermediary account number and an end-user account number, provided by the end-user, in a payment processor computer system;

conducting a payment transaction between an end-user and a terminal located at a point-of-sale including communicating a payment and the intermediary account number from the end-user to the terminal;

sending data indicative of the payment and the intermediary account number from the terminal to the payment processor computer system;

determining the end-user account number associated with the intermediary account number;

sending data indicative of the payment and the retrieved end-user account number to a service provider system; and

instructing the service provider system to credit an end-user account identified by the retrieved end-user account number, wherein the service provider system maintains the end-user account.

2. A method according to claim 1, further comprising:

transferring a first amount of money equal to the payment, subject to adjustment, from a first bank account maintained by a merchant into a second bank account associated with the payment processor computer system, by an electronic funds transfer.

3. A method according to claim 2 further comprising:

transferring a second amount of money equal to the payment, subject to adjustment, from the second bank account associated with the payment processor computer system into a third bank account, maintained by the service provider, by electronic funds transfer.

4. The method of claim 2, wherein transferring the first amount further comprises:

debiting the merchant'"'"'s first bank account and crediting the payment processor computer system'"'"'s second account under control of the payment processor computer system.

5. A method according to claim 2, wherein transferring the first amount of money equal to the payment, subject to adjustment, is carried out in a batch mode on a daily basis.

6. A method according to claim 2, wherein transferring the first amount of money equal to the payment, subject to adjustment is carried out via an automated clearing house system (ACH).

7. A method according to claim 2, wherein said payment from the end-user at the point-of-sale includes payment in the form of cash.

8. A method according to claim 2, wherein said payment from the end-user at the point-of-sale includes payment as a debit card transaction.

9. A method according to claim 2, further comprising:

issuing a card to the end-user that includes the intermediary account number.

10. A method according to claim 2, wherein the end-user account number includes a valid credit card account number.

11. A method according to claim 10, wherein the valid credit card account number can be presented by the end-user at the terminal located at the point-of-sale to purchase goods and services.

12. A method according to claim 2, wherein the end-user account number identifies a pre-paid cellular phone account.

13. A method according to claim 2, wherein the service provider is a prepaid telecommunications platform operator.

14. A method according to claim 2, wherein the end-user account number includes a prepaid debit account number.

15. The method of claim 14, wherein the prepaid debit account number is associated with a debit card which may be presented at the terminal located at the point-of-sale to purchase goods and services.

16. A method according to claim 2, wherein the terminal located at the point-of-sale comprises an automated teller machine (ATM).

17. A method according to claim 2, wherein the terminal located at the point-of-sale comprises a vending machine.

18. A method according to claim 2, wherein the terminal located at the point-of-sale is a merchant hub that is communicably coupled to the terminal and the payment processor computer system.

19. The method of claim 2, wherein the terminal at the point-of-sale is a data terminal at any location accessible to the end-user.

20. A method according to claim 19, wherein the terminal is communicably coupled to the Internet, and the point-of-sale includes a website.

21. The method of claim 2, wherein sending data indicative of the payment and the intermediary account number from the terminal to the payment processing computer system, further comprises:

sending the data over a financial network.

22. A method according to claim 21 wherein the financial network comprises a card association network.

23. A method according to claim 22 wherein the card association network uses a bank identification number for routing data to the payment processor computer system.