Patent Application
20080288376
The invention is in the field of electronic payment methods and systems, including electronic financial networks.
Currently there are systems and methods for facilitating online transactions.
However, current systems and methods for facilitating online transactions have significant limitations.
Another disadvantage of such current systems is that the user must fund and manage the account 104 with “X” service as a separate account and relationship distinct from any other payor or payee relationships.
Embodiments described herein include an electronic transaction service network (also referred to herein as a centralized electronic transaction (CET) service). According to an embodiment, a financial management system hosts multiple CET web sites on behalf of multiple merchants. All transactions through any CET web site are executed and managed by the financial management system. Merchants may customize their web sites to include a branded look and feel. The merchant web sites are part of a CET service for which customer can register. Registered customers can then view and pay invoices from any merchants having CET web sites, whether purchases were made online or offline. Customers specify preferences for the CET service including choosing existing customer accounts from which the financial management system is to pay invoices on behalf of the customer. This eliminates the need for the customer to open and fund a separate payment account as in traditional methods.
The financial management system handles all transactions and data storage on behalf of merchants. Embodiments leverage existing financial institution (FI) payor and merchant networks. This allows merchants who are not large enough to provide online payment through conventional systems to have convenient online invoicing and payment services to offer their customers. This also allows customers of the financial management system to easily pay many different merchants online using a customer's existing account (such as a checking account, savings account, or credit card). Embodiments do not require a user to create, fund and maintain a separate account for the purpose of payment services. In an embodiment, a user or customer registers with the transaction CET service. The user is not required to create, fund and maintain a separate account in order to user the CET service. The term “user” and “customer” will be used interchangeably herein.
According to various embodiments, individuals who are “unbanked” (e.g., individuals who have no access to checking accounts, credit cards or other convenient non-cash payment mechanisms) may register with the CET service, and transact with online and offline merchants and make online payments.
One possible implementation of the CET service is by a small business that is part of the CET service. The business can create an invoice and send the invoice out to the customer, by mail or electronically. The customer, who is registered with the CET service, can access the invoice electronically, and automatically pay that invoice, for example through the customer's bank account.
Accounts payable can also be managed using the CET service. For example, consider a business that maintains a running account with a particular vendor. The business does not receive an invoice from the vendor, but can login to the CET service, view the account balance, and electronically pay the balance from another financial account of the business. The financial information does not need to be shared between the two entities.
Another functionality according to an embodiment is payroll management. For example, the business can login to the CET service and view payroll information. For employees who are also registered with the CET service, the business can pay the employee electronically from the business's financial account at a financial institution to the employee's chosen account at a (probably, but not necessarily, different) financial institution.
One embodiment of the CET service includes a branded biller-direct site. In contrast to previous methods, in which a customer or user logs into an “X” service web site, a biller-direct web site exists for the merchant or business. The business has the ability to customize the look and feel of this web site, which may be branded by the merchant or co-branded with the CET service. In an embodiment, there is a direct link to the (branded or co-branded) CET service web site from the business web site. An invoice, an email or some other communication is sent from the business to the customer with an indication that the required payment can be made directly on the business's CET service web site (the link to the web site is provided). The link takes the customer to the branded web site. In an embodiment, the web site includes the icon of the business and a CET service icon.
Co-branding embodiments include cross-sell opportunities. For example the consumer logging on to view a merchant invoice can be provided with information regarding promotions and discounts of the merchant. In addition, a business logging on to view its account information can be provided with information regarding network services.
In various embodiments, the CET service can be accessed in a variety of ways. For example, the user can login to the CET service web site and view the account information available for the user. The account information available for the user includes information related to all of the businesses with which the user has accounts that are also registered with the CET service. When the user clicks on an invoice of a particular business, a detail window with the invoice information also displays the branding of the invoicing business, as well as any cross-sell messaging provided by the invoicing business. Alternatively, the user can login to a business web site and view the user's account information for that particular business (e.g., via a link as previously described).
Businesses participating in the CET service may access various information when logged into the CET service web site. For example, all accounts receivable information for those customers participating in the CET service is visible. In addition, accounts payable information is also visible for those vendors participating in the CET service. Thus, a consolidated view of accounts, both receivable and payable, is available to the business participant. In addition, businesses can also leverage the service to make point of sales payments associated with an online shopping cart.
Non-business users can perform various functions when logged into the CET service. For example, the user can view the invoices placed there by a business, the user can pay invoices directly using the CET service, and the user can view a consolidated statement that includes payment history. Users can also leverage the service to make point of sale payments associated with a merchant shopping cart.
According to an embodiment, even if invoices are received offline, a user may still use the CET service web site to pay directly because the merchant or business knows the user and is aware of the relationship and account status. The web site can be used to remit the payment directly to the merchant account.
An existing user bank account is used to fund transactions according to the CET service. This is in contrast to having to create, fund and maintain a separate “X” service account as in existing payment methods and systems.
According to embodiments, the CET service offers rewards and other loyalty programs to users for participation in the CET service (e.g., for registering and completing transactions using the CET service). The rewards can be redeemed for goods, services, discounts, etc. This is in contrast to existing payment methods and systems, which do not make rewards available.
One embodiment of the CET service is implemented by a single financial institution offering the service to their customer. For example, the financial institution offered customers to sign up for the CET service (which may be branded by the financial institution or co-branded with the financial management system hosting the CET service) on the financial institution web site. In such embodiments, the financial institution also offers business customers the opportunity to have biller-direct web sites as described above, rather than the financial institution offering businesses this capability. In this scenario, the financial institution is in charge of the relationship with the participating merchants.
In another embodiment, the financial management system hosts a “central payment hub” version of the CET service. The central payment hub is an industrial utility in that multiple financial institutions all participate in a central service that can be offered to their respective customers. All of the customers (both individuals and small businesses) of the various institutions come to one consolidated payment hub. For example a Bank of America invoice can come into the payment hub, and a Wells Fargo invoice can come into the payment hub. The payment hub is a shared utility across multiple financial institutions. The payment hub features a single registration at the payment hub across all of the participating financial institutions. In an embodiment, the payment hub appears to users (individuals and small businesses) as a single, neutrally branded payment center across all of the participating financial institutions. Therefore, there is a single registration required in order for users to participate through any participating financial institution's web site or participating small business's web site.
Aspects of the CET service 300 and advantages thereof as described herein are particularly useful for a large financial institution desiring to incorporate the CET service in it offerings. However embodiments are not so limited. Embodiments of the CET service may be tailored as a stand-alone application or as an application tailored to be presented as a service of a particular large or small entity.
Table 1 below lists some of the market opportunities in the area of both online payments and other areas, such as serving the unbanked.
Table 2 below describes lists some of the services offered to consumers (also referred to as users or customers herein) and to merchants according to various embodiments.
In a person-to-person scenario, a user (also referred to as a customer or user) 408 accesses a DDA, for example through the web site of the financial institution 409 at which the DDA resides. The CET service 300 actually receives user input from the financial institution 409 and executes transactions accordingly. For example, the CET service 300 performs online payment as specified by the user 408 to one or more DDAs at another (payee) financial institution 410.
The online capability to pay invoices received offline provides convenience to the customer, reduces payables processing cost for the customer, and makes payment time shorter. For small businesses, this capability reduces the time-to-pay and days outstanding. The capability also allows small businesses to automatically reconcile receivables, and reduce receivables processing costs. For financial institutions, this capability can be offered as a value-added service to small businesses. Financial institutions can realize subscription and transaction fee revenue for providing the service.
The CET service 300 can thus be very valuable to the unbanked consumer who is enabled to make online purchases using cash or prepaid cards. Merchants also benefit because they can receive electronic payments from either banked or unbanked customers, expanding the customer base of the merchant. Financial institutions benefit by collecting transaction fee revenue. In addition, financial institutions have the ability to cross-sell other products or services to unbanked customers.
Merchants 712 communicate with the financial management system 702 as further described below for providing the CET service 300 to their customers, either through biller-direct web sites or through a central CET services web site. CET customer personal computers (PCs) 716 are an example of an interface between customers and the CET service 300. Customers may interface with the CET service 300 using other means, such as handheld devices, kiosks, etc. Funds sources 714 include financial institutions of all types that can transfer funds via the network 710 using established financial networks such as ATM, ACH, and debit networks.
The funds are then withdrawn from the central account 804 in a second debit transaction, and deposited in destination account 806 in a second credit transaction. Financial institutions #1 and #2 have no knowledge of central account 804. This is in contrast to conventional electronic funds transfers in which the financial institution providing the funds and the financial institution receiving the funds must deal directly with each other and have particular information or data about each other in order to complete the transaction. As shown, the debit and credit transactions can be accomplished using any one of various existing networks, including but not limited to an ACH network, a debit network, and an ATM network.
In an embodiment, all of the participating financial institutions 1114 offer the same neutrally branded or co-branded services to their customers and the services are provided by the central payment hub 1101. The value-added services this the payment hub allows the financial institutions 1114 to offer include originate point-to-point (P2P) payments, sending an invoicing and sending requests for payment of invoices, and merchant services/shopping cart payments on merchant web sites.
The payment hub 1101 features a common payment center/directory that enables customers to make payments on requests for payments/invoices, receive P2P payments, and make shopping cart payments on web sites for participating merchants' websites.
Participating banks 1114 can thus provide services to end users through the payment hub 1101, yet control the customer relationship. Participating banks 1114 underwrite and authorize service limits, and collects revenues from subscriptions to the services.
Services to individual customers (or consumers) include sending person-to-person email payments, and sending requests for payment.
Services to small businesses include sending employee and vendor payments to know third parties (where financial information shared between sender and receiver), sending email payments to anyone (where financial information is not shared between sender and receiver), sending invoices to collect payments, and sending shopping cart invoices to collect point-of-sale (POS) payments.
The receiver role in transactions is supported by the financial management system 1102 through the payment hub 1101. The receiver services include receiving invoices or requests for payments, and making payments on both. The receiver services further include receiving (collecting) email payments, adding and verifying financial accounts (e.g., DDA, credit card), and assigning account preferences for receiving payments or making payments on invoices or requests for payments. In various embodiments, the roles of receiver and sender are less clearly separated. The roles could be combined in that many typical receiver or sender functions are performed by the opposite party. The receiver role could be extended to subsume the sender role in some instances, for example.
The system 1100 includes various entities in communication with each other via a network 1110, which is typically the Internet, but embodiments are not so limited. The financial management system 1102 includes databases 1106 that store financial institution information, user information, and customer information (including invoice information, payment information, payment history information, verification information, etc.). The CET service/payment hub 1101 is included in the financial management system 1102 and interoperates with a funds transfer module 1104. The funds transfer module 1104 communicates with multiple financial institutions to transfer funds as further described below. Servers 1108 host multiple web sites and applications as described herein, including biller-direct web sites, financial institution web sites, at least one central payment hub service web site, invoicing applications, email applications, and setup applications, to name a few.
Merchants 1112 communicate with the financial institutions 1114 to initiate their participation in the payment hub 1101. Individual customers also communicate with the financial institutions 1114 to initiate their participation in the payment hub 1101. Customer personal computers (PCs) 1116 are an example of an interface between customers and the financial institutions 1114 and between the customers and the payment hub 1101 through the network 1110. Customers may interface with the network 1110 using other means, such as handheld devices, kiosks, etc.
Aspects of the systems and methods described herein may be implemented as functionality programmed into any of a variety of circuitry, including programmable logic devices (PLDs), such as field programmable gate arrays (FPGAs), programmable array logic (PAL) devices, electrically programmable logic and memory devices and standard cell-based devices, as well as application specific integrated circuits (ASICs). Some other possibilities for implementing aspects of the system include: microcontrollers with memory (such as electronically erasable programmable read only memory (EEPROM)), embedded microprocessors, firmware, software, etc. Furthermore, aspects of the system may be embodied in microprocessors having software-based circuit emulation, discrete logic (sequential and combinatorial), custom devices, fuzzy (neural) logic, quantum devices, and hybrids of any of the above device types. Of course the underlying device technologies may be provided in a variety of component types, e.g., metal-oxide semiconductor field-effect transistor (MOSFET) technologies like complementary metal-oxide semiconductor (CMOS), bipolar technologies like emitter-coupled logic (ECL), polymer technologies (e.g., silicon-conjugated polymer and metal-conjugated polymer-metal structures), mixed analog and digital, etc.
It should be noted that the various functions or processes disclosed herein may be described as data and/or instructions embodied in various computer-readable media, in terms of their behavioral, register transfer, logic component, transistor, layout geometries, and/or other characteristics. Computer-readable media in which such formatted data and/or instructions may be embodied include, but are not limited to, non-volatile storage media in various forms (e.g., optical, magnetic or semiconductor storage media) and carrier waves that may be used to transfer such formatted data and/or instructions through wireless, optical, or wired signaling media or any combination thereof. Examples of transfers of such formatted data and/or instructions by carrier waves include, but are not limited to, transfers (uploads, downloads, e-mail, etc.) over the Internet and/or other computer networks via one or more data transfer protocols (e.g., HTTP, FTP, SMTP, etc.). When received within a computer system via one or more computer-readable media, such data and/or instruction-based expressions of components and/or processes under the system described may be processed by a processing entity (e.g., one or more processors) within the computer system in conjunction with execution of one or more other computer programs.
Unless the context clearly requires otherwise, throughout the description and the claims, the words “comprise,” “comprising,” and the like are to be construed in an inclusive sense as opposed to an exclusive or exhaustive sense; that is to say, in a sense of “including, but not limited to.” Words using the singular or plural number also include the plural or singular number respectively. Additionally, the words “herein,” “hereunder,” “above,” “below,” and words of similar import refer to this application as a whole and not to any particular portions of this application. When the word “or” is used in reference to a list of two or more items, that word covers all of the following interpretations of the word: any of the items in the list, all of the items in the list and any combination of the items in the list.
The above description of illustrated embodiments of the systems and methods is not intended to be exhaustive or to limit the systems and methods to the precise forms disclosed. While specific embodiments of, and examples for, the systems components and methods are described herein for illustrative purposes, various equivalent modifications are possible within the scope of the systems, components and methods, as those skilled in the relevant art will recognize. The teachings of the systems and methods provided herein can be applied to other processing systems and methods, not only for the systems and methods described above.
The elements and acts of the various embodiments described above can be combined to provide further embodiments. These and other changes can be made to the systems and methods in light of the above detailed description.
In general, in the following claims, the terms used should not be construed to limit the systems and methods to the specific embodiments disclosed in the specification and the claims, but should be construed to include all processing systems that operate under the claims. Accordingly, the systems and methods are not limited by the disclosure, but instead the scope of the systems and methods is to be determined entirely by the claims.
While certain aspects of the systems and methods are presented below in certain claim forms, the inventors contemplate the various aspects of the systems and methods in any number of claim forms. For example, while only one aspect of the systems and methods may be recited as embodied in machine-readable medium, other aspects may likewise be embodied in machine-readable medium. Accordingly, the inventors reserve the right to add additional claims after filing the application to pursue such additional claim forms for other aspects of the systems and methods.
This application claims the benefit of U.S. Provisional Patent Application Ser. No. 60/926,619, filed Apr. 27, 2007. This application also claims the benefit of U.S. Provisional Patent Application Ser. No. 60/957,634, filed Aug. 23, 2007. This application is related to U.S. patent application Ser. No. 11/879,818, filed Jul. 19, 2007.
| Number | Date | Country | |
|---|---|---|---|
| 60926619 | Apr 2007 | US | |
| 60957634 | Aug 2007 | US |
