Method and system for facilitating network transaction processing

• US 8,121,944 B2
• Filed: 05/26/2005
• Issued: 02/21/2012
• Est. Priority Date: 06/24/2004
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Norman, Richard, Vicknair, Tommy J., Shishmanian, Carl, Stephens, John Spence Jr., Jennings, W. Earl, James, David L.
• Primary Examiner(s): Kazimi, Hani M
• Assistant Examiner(s): ALI, HATEM M
• Application Number:
  US11/137,407
• Publication Number:
  US 20060212391A1
• Time in Patent Office: 2,462 Days
• Field of Search: 705/40
• US Class Current: 705/40
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

An exemplary method and system may include receiving one or more payment items from a plurality of payment entities, at a centralized agent, wherein the one or more payment items comprise one or more electronic images and paper instruments; aggregating the payment items into one or more categories; identifying a payee financial institution and a payor financial institution for each payment items, wherein the payee financial institution and the payor financial institution are different; determining whether the payee financial institution and the payor financial institution are within the network of financial institutions; for the payee and payor within the network, determining at the centralized agent a settlement path within the network of financial institutions for each payment item; and for the payee and payor that are not within the network, forwarding the payment items to a third party settlement entity by the centralized agent for settlement processing.

Claims

1. A computer implemented method for facilitating settlement processing within a network of financial institutions, wherein the method is executed by a programmed computer processor which communicates with a user via a communication network, the computer implemented method comprising the steps of:

receiving, at a receive module using the programmed computer processor, one or more payment items from a plurality of payment entities via the communication network, at a centralized agent, wherein the one or more payment items comprise one or more electronic images and paper instruments;

aggregating, at an aggregate module using the programmed computer processor, the payment items into one or more categories;

identifying, at a decision module using the programmed computer processor, a payee financial institution and a payor financial institution for each payment items, wherein the payee financial institution and the payor financial institution are different;

determining, at a settlement module using the programmed computer processor, whether the payee financial institution and the payor financial institution are within the network of financial institutions;

wherein the payee financial institution and the payor financial institution within the network of financial institutions have an agreement for clearing and settling one or more financial transactions through the centralized agent;

for the payee financial institution and the payor financial institution within the network of financial institutions, determining at the centralized agent a settlement path within the network of financial institutions for each payment item; and

for the payee financial institution and the payor financial institution that are not within the network of financial institutions, forwarding the payment items to a third party settlement entity by the centralized agent for settlement processing.

2. The method of claim 1, wherein the categories comprise one or more of image clearing files and image cash letters.

3. The method of claim 1, wherein the categories comprise payment entity.

4. The method of claim 1, wherein the settlement path comprises one or more of IRD, ACH, ARC, ECP, posting to a consumer account, wire transfer and data archive.

5. The method of claim 1, further comprising the step of:

archiving payment data associated with each payment item.

6. The method of claim 1, further comprising the step of:

providing access to data specific to payment items through an interface provided by the centralized agent.

7. The method of claim 6, wherein the interface is customized based on user specific criteria.

8. The method of claim 1, wherein the network of financial institutions comprises a combination of banks and credit unions.

9. The method of claim 1, wherein a non-network entity accesses the centralized agent for data exchange with at least one entity within the network.

10. The method of claim 1, wherein the step of aggregating further comprises the step of:

sorting the payment items into on-us items and transit items.

11. The method of claim 1, wherein a payment entity leverages the centralized agent'"'"'s infrastructure for processing payment items.

12. A computer implemented method for facilitating settlement processing within a network of financial institutions, wherein the method is executed by a programmed computer processor which communicates with a user via a communication network, the computer implemented method comprising the steps of:

receiving, at a receive module using the programmed computer processor, one or more payment items from a plurality of payment entities via the communication network, at a centralized agent, wherein the one or more payment items comprise one or more electronic images and paper instruments;

aggregating, at an aggregate module using the programmed computer processor, the payment items into one or more categories;

sorting, at a sorting module using the programmed computer processor, the payment items into on-us items and transit items;

identifying, at a decision module using the programmed computer processor, a payee financial institution and a payor financial institution for each payment items, wherein the payee financial institution and the payor financial institution are different;

determining, at a settlement module using the programmed computer processor, whether the payee financial institution and the payor financial institution are within the network of financial institutions;

wherein the payee financial institution and the payor financial institution within the network of financial institutions have an agreement for clearing and settling one or more financial transactions through the centralized agent;

for the payee financial institution and the payor financial institution within the network of financial institutions, determining at the centralized agent a settlement path within the network of financial institutions for each payment item;

for the payee financial institution and the payor financial institution that are not within the network of financial institutions, forwarding the payment items to a third party settlement entity by the centralized agent for settlement processing; and

providing access to data specific to payment items through an interface provided by the centralized agent, wherein the interface is customized based on user specific criteria;

wherein a non-network entity accesses the centralized agent for data exchange with at least one entity within the network and wherein a payment entity leverages the centralized agent'"'"'s infrastructure for processing payment items.

13. A computer implemented system for facilitating settlement processing within a network of financial institutions, wherein the system comprises at least a programmed computer processor which communicates with a user via a communication network, the computer implemented system comprising:

a receive module for receiving one or more payment items from a plurality of payment entities via the communication network, wherein the one or more payment items comprise one or more electronic images and paper instruments;

an aggregate module for aggregating the payment items into one or more categories;

a decision module for identifying a payee financial institution and a payor financial institution for each payment items, wherein the payee financial institution and the payor financial institution are different and determining whether the payee financial institution and the payor financial institution are within the network of financial institutions;

wherein the payee financial institution and the payor financial institution within the network of financial institutions have an agreement for clearing and settling one or more financial transactions through the centralized agent; and

a settlement module for determining a settlement path within the network of financial institutions for each payment item for the payee financial institution and the payor financial institution within the network of financial institutions and forwarding the payment items to a third party settlement entity for settlement processing for the payee financial institution and the payor financial institution that are not within the network of financial institutions;

wherein the receive module, the aggregate module, the decision module and the settlement module reside at a centralized agent.

14. The system of claim 13, wherein the categories comprise one or more of image clearing files and image cash letters.

15. The system of claim 13, wherein the categories comprise payment entity.

16. The system of claim 13, wherein the settlement path comprises one or more of IRD, ACH, ARC, ECP, posting to a consumer account, wire transfer and data archive.

17. The system of claim 13, further comprising:

an archive module for archiving payment data associated with each payment item.

18. The system of claim 13, further comprising:

an interface for providing access to data specific to payment items, wherein the interface is provided by the centralized agent.

19. The system of claim 18, wherein the interface is customized based on user specific criteria.

20. The system of claim 13, wherein the network of financial institutions comprises a combination of banks and credit unions.

21. The system of claim 13, wherein a non-network entity accesses the centralized agent for data exchange with at least one entity within the network.

22. The system of claim 13, wherein the aggregation module further sorts the payment items into on-us items and transit items.

23. The system of claim 13, wherein a payment entity leverages the centralized agent'"'"'s infrastructure for processing payment items.

24. A computer implemented system for facilitating settlement processing within a network of financial institutions, wherein the system comprises at least a programmed computer processor which communicates with a user via a communication network, the computer implemented system comprising:

a receive module for receiving one or more payment items from a plurality of payment entities via the communication network, wherein the one or more payment items comprise one or more electronic images and paper instruments;

an aggregate module for aggregating the payment items into one or more categories and sorting the payment items into on-us items and transit items;

a decision module for identifying a payee financial institution and a payor financial institution for each payment items, wherein the payee financial institution and the payor financial institution are different and determining whether the payee financial institution and the payor financial institution are within the network of financial institutions;

wherein the payee financial institution and the payor financial institution within the network of financial institutions have an agreement for clearing and settling one or more financial transactions through the centralized agent;

a settlement module for determining a settlement path within the network of financial institutions for each payment item for the payee financial institution and the payor financial institution within the network of financial institutions and forwarding the payment items to a third party settlement entity for settlement processing for the payee financial institution and the payor financial institution that are not within the network of financial institutions; and

an interface for providing access to data specific to payment items, wherein the interface is customized based on user specific criteria;

wherein the receive module, the aggregate module, the decision module, the settlement module and the interface reside at a centralized agent and wherein a non-network entity accesses the centralized agent for data exchange with at least one entity within the network and wherein a payment entity leverages the centralized agent'"'"'s infrastructure for processing payment items.