Patent Grant
8606705
In general, embodiments herein disclosed relate to systems, methods, and computer program products for managing the processing of financial payments and, more specifically, dynamically choosing and arranging the payment process in a comprehensive payment hub environment.
Currently, in the United States market, financial payment processing follows traditional product based routing. This means that payment is destined for a specific product silo prior to being received by a financial institution. Silo payment processing occurs prior to image capture and involves a series of linearly processed steps, in which the form of the received payment input is, in many instances, the same as the payment remittance/settlement. For example, if the payment is inputted electronically, the product silo outputs payment, in many instances, electronically. Thus, each payment type, such as paper, image, electronic, wire, Automated Clearing House (ACH) and the like, has its own product silo and the channel, and thus silo, is chosen prior to transaction submission. These individual product silos are not fully integrated and as such, operate autonomously as separate systems. In this regard, specific product silos require specific logic processing and processing hardware based on which payment type/product the silo is set-up to accommodate.
International payment systems differ somewhat in that the payments are destined for low value channels or high value channels but, similar to Unites States payment processing, payments are pre-dispositioned prior to transmission.
Neither domestic nor international payment systems account for the customer/payor and, in some instances, the payment-processing financial institution, in terms of cost efficiency, timeliness of payment or other payment factors. For example, while a customer may be unconcerned with how a payment is routed, they are typically concerned with the speed of which the payment is received by the payee. In most instances, the customer/payor will desire payment to be received by the payee as soon as possible, however, in some instances the payor may desire a lag-time in payment receipt by the payor to insure that sufficient funds exist in the designated payment account. In addition to timeliness, the customer/payor may be concerned with the quality or risk of the payment transaction, i.e., insuring that the payment is made at the designated time and destination and/or the costs incurred by the customer/payor in making the payment. From the financial institution standpoint, the financial institution is concerned with making the payment in the most cost-efficient manner, so to maximize their profitability, while taking into account the customer's needs in terms of timeliness and payment risk.
Therefore, a need exists to develop systems, method, computer program products and the like for processing financial payments more effectively and cost efficiently. The desired systems, methods, computer program products and the like should allow for processing all types of payment requests in a comprehensive payment processing system. Additionally, the desired systems, methods and computer program products should process payment requests in a highly efficient manner that cost effective to both the financial institution and the customer (i.e., payor and/or payee). Additionally, the desired systems, methods, computer program products and the like should allow for customers/payors to either predefine payment configuration or dynamically define payment configuration on a per-payment or per-payment file basis, so as to address the needs of the customer/payor in terms of payment timeliness, payment cost, payment quality and the like. In addition, desired systems, methods, computer program products and the like should allow for financial institution to make payment routing decisions that not only take into account the customer's/payor's needs and concerns, but also take into account the financial institutions concern of minimizing the costs related to each transaction. Moreover, by providing for methods, computer program products and the like that allow the customer/payor greater options in predetermined payment configuration and/or dynamically configuring payment on a per-payment basis, the financial institution can implement different price points in the payment process.
The following presents a simplified summary of one or more embodiments in order to provide a basic understanding of such embodiments. This summary is not an extensive overview of all contemplated embodiments, and is intended to neither identify key or critical elements of all embodiments nor delineate the scope of any or all embodiments. Its sole purpose is to present some concepts of one or more embodiments in a simplified form as a prelude to the more detailed description that is presented later.
Methods, devices, systems and computer program products are described herein that provide for managing the processing of a payment and, more specifically managing the processing of a payment in a comprehensive payment hub environment that provides for payment processing irrespective of the payment input channel. In accordance with embodiments herein disclosed, managing the processing of the payment includes automatically determining the payment processes and automatically determining the arrangement of the payment processes. The arrangement, as described herein, may otherwise be the configuration, flow or order of the payment processes. Thus, the payment processes may be arranged to occur serially, in parallel or in any combination of serial and parallel processing. The determination of the payment processes and the arrangement of the processes may be dynamically determined on a per-payment request basis based on payment input channel, payment/clearing type and/or payment attributes, such payor-defined attributes, payee-defined attributes and/or financial institution defined attributes. The dynamic nature of the determination of the payment processes and the arrangement allows for the payment processes to change, either by addition or deletion of payment processes or the arrangement to change during the processing of a payment based on the outcome of a preceding process or an attribute defined while payment processing is ongoing. As such, the methods, systems, and computer program products herein described provide for an efficient and cost-effective approach to processing payments.
According to one embodiment of the invention, a method for processing financial payments is defined. The method includes receiving a financial payment request and determining a plurality of payment processes associated with the financial payment request and an arrangement for the plurality of payment processes associated with the financial payment request. An “arrangement”, as defined herein, may be the order in which the payment processes are performed, either in series, in parallel or in a combination of serial and parallel order. The method further includes performing the plurality of payment processes in accordance with the determined arrangement and providing for a financial payment associated with the financial payment request.
The payment processes may include, but are not limited to, payment routing, managing initiation of future dated and recurring payments, correlating credits and debits, validating the payment, processing bulk financial payment requests, storing at least one of payment history, future dated payments, or recurring payments, ensuring payment compliance, providing foreign exchange processing, providing a financial risk assessment, providing financial payment exception handling processing and the like.
According to specific embodiments of the method, receiving the financial payment request may further include receiving the financial payment request from one of a plurality of different payment input channels. In such embodiments, performing the plurality of payment processes further comprises performing the plurality of payment processes irrespective of the payment input channel type.
According to other embodiments of the method, determining the arrangement for the payment processes may further include determining the arrangement for the payment processes based on at least one of payment input channel, payment type or payment attributes. In such embodiments, the method may further include determining payment routing for the payment request based on one or more routing rules, wherein payment routing defines the payment type. Further, determining the arrangement for the payment processes based on payment attributes may further include determining the arrangement for the payment processes based on payor-defined payment attributes, payee-defined payment attributes or financial institution-defined payment attributes.
In accordance with specific embodiments of the method, the arrangement of the payment processes may be determined dynamically on a per-payment request basis, either at the onset of payment processing or during ongoing payment processing. For example, arrangement (i.e., re-arrangement) may be determined based on an outcome of one or more of the plurality of payment processes.
Similarly, according to other embodiments of the method, determining the payment processes may further include determining the payment processes associated with the financial payment request based on at least one of payment input channel, payment type or payment attributes. In such embodiments, the method may further include determining payment routing for the payment request based on one or more routing rules, wherein payment routing defines the payment type. Further, determining the payment processes based on payment attributes may further include determining the payment processes based on payor-defined payment attributes, payee-defined payment attributes or financial institution-defined payment attributes.
In accordance with specific embodiments of the method, the payment processes may be determined dynamically on a per-payment request basis, either at the onset of payment processing or during ongoing payment processing. For example, payment processes may be determined based on an outcome of one or more of the plurality of payment processes.
An apparatus for processing financial payments defines another embodiment of the invention. The apparatus includes a computing platform including at least one processor and a memory. The apparatus additionally includes a payment processing module stored in the memory, executable by the processor and including a plurality of payment process sub-modules each operable to perform one or more payment processes. The payment processing module further includes process management logic operable to determine a plurality of the payment processes associated with a payment request and determine an arrangement for the plurality of payment processes. An arrangement, as herein described, may be the order in which the payment processes are performed, either in series, in parallel or in a combination of serial and parallel order.
According to specific embodiments of the apparatus, the payment process sub-modules may include, but are not limited to, a payment routing sub-module, a future payment management sub-module, a debit and credit sub-module, a validation sub-module, a bulk payment sub-module, a payment database, a compliance sub-module, a foreign exchange sub-module, a financial risk assessment sub-module, and an exception handling sub-module.
According to additional embodiments of the apparatus, the payment processing module is operable to receive payment requests from a plurality of payment input channels and the plurality of payment process sub-modules are operable to perform the one or more payment processes irrespective of the payment input channel type. In this regard, the payment processing module is able to process payment requests that originate from various different input channels.
In accordance with other optional embodiments of the apparatus, the process management logic is further operable determine the arrangement for the plurality of payment processes based on at least one of payment input channel, payment type or payment attributes. In such embodiments, the plurality of payment process sub-modules may include a payment routing sub-module operable to determine payment routing for a payment request based on one or more routing rules, wherein payment routing defines the payment type. Additionally, the process management logic may be further operable to determine the arrangement for the plurality of payment processes based on one or more of payor-defined payment attributes, payee-defined payment attributes or financial institution-defined payment attributes.
According to still further embodiments of the apparatus, the process management logic is operable dynamically determine the arrangement for the plurality of payment processes on a per-payment request basis, either at the onset of payment processing or during ongoing payment processing. For example, arrangement (i.e., re-arrangement) may be determined based on an outcome of one or more of the plurality of payment processes.
In yet other embodiments of the apparatus, the process management logic is operable to determine the plurality of payment processes associated with the financial payment request based on at least one of payment input channel, payment type or payment attributes. In such embodiments, the plurality of payment process sub-modules may include a payment routing sub-module operable to determine payment routing for a payment request based on one or more routing rules, wherein payment routing defines the payment type.
According to still further embodiments of the apparatus, the process management logic is operable dynamically determine the payment processes on a per-payment request basis, either at the onset of payment processing or during ongoing payment processing. For example, payment processes may be determined based on an outcome of one or more of the payment processes.
Yet another embodiment of the invention is provided for by a computer program product that includes a computer-readable medium. The medium includes a first set of codes for causing a computer to receive a financial payment request, a second set of codes for causing a computer to determine a plurality of payment processes associated with the financial payment request and a third set of codes for causing a computer to determine an arrangement for the plurality of payment processes associated with the financial payment request. The medium additionally includes a fourth set of codes for causing a computer to perform the plurality of payment processes in accordance with the determined arrangement and a fifth set of codes for causing a computer to provide for a financial payment associated with the financial payment request.
Thus, methods, devices, systems and computer program products described herein provide for managing the processing of a financial payment and, more specifically managing the processing of a financial payment in a comprehensive payment hub environment that provides for payment processing and determination of payment routes irrespective of the payment input channel. In accordance with embodiments herein disclosed, managing the processing of the payment includes automatically determining the payment processes and automatically determining the arrangement of the payment processes. As such, the methods, systems, and computer program products herein described provide for an efficient and cost-effective approach to processing payments.
To the accomplishment of the foregoing and related ends, the one or more embodiments comprise the features hereinafter fully described and particularly pointed out in the claims. The following description and the annexed drawings set forth in detail certain illustrative features of the one or more embodiments. These features are indicative, however, of but a few of the various ways in which the principles of various embodiments may be employed, and this description is intended to include all such embodiments and their equivalents.
Having thus described embodiments of the invention in general terms, reference will now be made to the accompanying drawings, which are not necessarily drawn to scale, and wherein:
Embodiments of the present invention will now be described more fully hereinafter with reference to the accompanying drawings, in which some, but not all, embodiments of the invention are shown. Indeed, the invention may be embodied in many different forms and should not be construed as limited to the embodiments set forth herein; rather, these embodiments are provided so that this disclosure will satisfy applicable legal requirements. In the following description, for purposes of explanation, numerous specific details are set forth in order to provide a thorough understanding of one or more embodiments. It may be evident; however, that such embodiment(s) may be practiced without these specific details. Like numbers refer to like elements throughout.
Various embodiments or features will be presented in terms of systems or apparatus that may include a number of devices, components, modules, and the like. It is to be understood and appreciated that the various systems or apparatus may include additional devices, components, modules, etc. and/or may not include all of the devices, components, modules etc. discussed in connection with the figures. A combination of these approaches may also be used.
The steps and/or actions of a method or algorithm described in connection with the embodiments disclosed herein may be embodied directly in hardware, in a software module executed by a processor, or in a combination of the two. A software module may reside in RAM memory, flash memory, ROM memory, EPROM memory, EEPROM memory, registers, a hard disk, a removable disk, a CD-ROM, or any other form of storage medium known in the art. An exemplary storage medium may be coupled to the processor, such that the processor can read information from, and write information to, the storage medium. In the alternative, the storage medium may be integral to the processor. Further, in some embodiments, the processor and the storage medium may reside in an Application Specific Integrated Circuit (ASIC). In the alternative, the processor and the storage medium may reside as discrete components in a computing device. Additionally, in some embodiments, the events and/or actions of a method or algorithm may reside as one or any combination or set of codes and/or instructions on a machine-readable medium and/or computer-readable medium, which may be incorporated into a computer program product.
In one or more embodiments, the functions described may be implemented in hardware, software, firmware, or any combination thereof. If implemented in software, the functions may be stored or transmitted as one or more instructions or code on a computer-readable medium. Computer-readable media includes both computer storage media and communication media including any medium that facilitates transfer of a computer program from one place to another. A storage medium may be any available media that can be accessed by a computer. By way of example, and not limitation, such computer-readable media can comprise RAM, ROM, EEPROM, CD-ROM or other optical disk storage, magnetic disk storage or other magnetic storage devices, or any other medium that can be used to carry or store desired program code in the form of instructions or data structures, and that can be accessed by a computer. Also, any connection may be termed a computer-readable medium. For example, if software is transmitted from a website, server, or other remote source using a coaxial cable, fiber optic cable, twisted pair, digital subscriber line (DSL), or wireless technologies such as infrared, radio, and microwave, then the coaxial cable, fiber optic cable, twisted pair, DSL, or wireless technologies such as infrared, radio, and microwave are included in the definition of medium. “Disk” and “disc”, as used herein, include compact disc (CD), laser disc, optical disc, digital versatile disc (DVD), floppy disk and blu-ray disc where disks usually reproduce data magnetically, while discs usually reproduce data optically with lasers. Combinations of the above should also be included within the scope of computer-readable media.
Thus, methods, apparatus, systems and computer program products are described herein that provide for managing the processing of a financial payment and, more specifically managing the processing of a financial payment in a comprehensive payment hub environment that provides for payment processing and, in some embodiments, determination of payment route irrespective of the payment input channel. In accordance with embodiments herein disclosed, managing the processing of the payment includes automatically determining the payment processes and automatically determining the arrangement of the payment processes. The arrangement, as described herein, may otherwise be the configuration, flow or order of the payment processes. Thus, the payment processes may be arranged to occur serially, in parallel or in any combination of serial and parallel processing. The determination of the payment processes and the arrangement of the processes may be dynamically determined on a per-payment request basis based on payment input channel, payment/clearing type and/or payment attributes, such payor-defined attributes, payee-defined attributes and/or financial institution defined attributes. The dynamic nature of the determination of the payment processes and the arrangement allows for the payment processes to change, either by addition or deletion of payment processes or the arrangement to change during the processing of a payment based on the outcome of a preceding process or an attribute defined while payment processing is ongoing. As such, the methods, systems, and computer program products herein described provide for an efficient and cost-effective approach to processing payments.
Referring to
Memory 130 of apparatus 100 includes a payment processing module 150, also referred to herein as a payment hub, which includes a plurality of payment process sub-modules 152. In accordance with embodiments herein disclosed, the payment processing module 150 is a comprehensive payment processing system capable of processing payments irrespective of the payment input channel. In one embodiment of the invention, the capability to process payment requests irrespective of the payment input channel is provided for by transforming the initial format of the payment request to a standardized or normalized format.
The payment processing sub modules 152 may include, but are not limited to, modules capable of providing payment route determination, scheduling of future and/or recurring payments, correlation of debits and credits, payment verification, bulk payment processing, payment data storage, payment compliance checks, foreign exchange processing, payment risk assessment, payment exception handling and the like. Each payment sub-module 152 may include one or more payment processes 154 that may be required or otherwise executed as part of a payment request.
The payment processing module 150 also includes process management logic 140 operable to determine, on a per-payment request basis, the payment processes 154 applicable to a payment request and the payment process arrangement 142. The process arrangement 142, as described herein, may be the flow, configuration and/or order in which the processes occur. The processes may be arranged to occur serially, in parallel or a combination of serial and parallel processing. In one embodiment of the invention, the payment processes and the arrangement may be determined at the onset of payment processing and remain static throughout the processing. In other embodiments of the invention, payment processes and the arrangement may be determined, or otherwise re-assessed, throughout the processing of the payment. For example, the outcome of one process may result in the addition or deletion of payment process and/or the outcome of a process may dictate re-arrangement of the payment processes. In this regard, the determination of processes and/or the arrangement of processes may remain dynamic throughout the processing of the payment.
In specific embodiments of the invention, determination of the payment processes 154 and/or the arrangement 142 of the payment processes may be based on payment input channel, payment type or payment attributes. The payment attributes may be defined by the payor, the payee or the financial institution executing the payment process. The payment attributes may be pre-defined attributes stored in payor, payee and/or financial institution databases or the payment attributes may be dynamic attributes defined during the payment request process.
Further, computing platform 110 also includes processor 120, which may be an application-specific integrated circuit (“ASIC”), or other chipset, processor, logic circuit, or other data processing device. Processor 120 or other processor such as ASIC may execute an application programming interface (“API”) layer 200 that interfaces with any resident programs, such as payment processing module 150, process management logic 140 or the like, stored in the memory 130 of apparatus 100.
Processor 120 includes various processing subsystems 220 embodied in hardware, firmware, software, and combinations thereof, that enable the functionality of apparatus 100 and the operability of the apparatus on a network. For example, processing subsystems 220 allow for initiating and maintaining communications, and exchanging data, with other networked devices.
The memory 130 of apparatus 130 includes a payment processing module 150 that includes a plurality of payment process sub-modules 152. As previously noted, the payment processing module 150 is a comprehensive payment processing system capable of processing payments irrespective of the payment input channel. In one embodiment of the invention, the capability to process payment requests irrespective of the payment input channel is provided for by transforming the initial format of the payment request to a standardized or normalized format. In addition, the payment route determination sub-module 170, which is discussed in detail in relation to
It should be noted that a single module is depicted for payment processing module 150, however, in accordance with present embodiments, the module may comprise multiple modules and the multiple modules may be included within various different apparatus. Thus, the routines, applications, databases and logic described in relation payment processing module 150 may be included within multiple modules. Likewise, the rules and logic discussed in relation to payment processing module 150 may be included or implemented in multiple applications or routines.
As shown in
The payment route determination sub-module 170 is discussed in relation to
Verification sub-module 730 is operable to verify the payment and associated account attributes to insure positive clearing of the payment. Bulk payment sub-module 740 that is operable to aggregate and optimize communications to external systems for large payment files having multiple individual payment items with multiple payment items having the same posting accounts.
Compliance process sub-module 810 is operable to insure anti-money laundering of the payment. Compliance processing may include a security check of Office of Foreign Asset Control (OFAC) listing of known individuals, corporations or the like associated with illegal payment processing. Foreign exchange/Single European Payments Area (SEPA) sub-module 820 is operable to maximize foreign currency exchange rates, provide for multi-currency support and insure compliance with SEPA rules and regulations.
Financial risk assessment sub-module 830 is operable to provide credit and risk management for the overall payment process. In this regard, the financial risk assessment process may provide for liability risk assessment scores and the like that are subsequently used by the rules-based routing determination to limit or mandate the type of remittance/settlement route that may be implemented. For example, if the financial risk is determined to be high, route determination may exclude wire payments as a remittance/settlement payment option.
Exception handling sub-module 840 is operable to provide centralized exception processing and management of all payment types. Exception processing takes into account errors in the payment processing, such as formatting error or the like and may implement an auto repair for common exceptions/errors. Auto repair of exceptions provides for less need for manual intervention and improves straight-through payment processing rates.
As previously noted in relation to
In specific embodiments of the invention, determination of the payment processes 154 and/or the arrangement 142 of the payment processes may be based on payment input channel, payment type or payment attributes.
The payment input channel may include, but is not limited to, Open Financial Exchange (OFX)/mobile, web-based, Interactive Voice Response (IVR)/telephone, banking center, Automated Teller Machine (ATM), debit/credit card, merchant, check, image, wire, Automated Clearing House (ACH) or the like.
The payment attributes may be defined by the payor, the payee or the financial institution executing the payment process. The payment attributes 250 attributes may be payor-defined/payee-defined payment attributes 260 and/or financial institution/bank-defined payment attributes 270. The payor-defined/payee-defined payment attributes 260 may include, but are not limited to, price 262, time 264, risk/quality 266, remittance requirements, 267, destination 268 or any other appropriate attribute 269 that may be applied to process management. The financial institution/bank-defined payment attributes 270 may include, but are not limited to, cost 272, time 274, risk/quality 276, remittance requirements 277, destination 278 or any other appropriate attribute 279 that may be applied to a process management.
Payment attributes 260 and 270 may be pre-defined attributes stored in payor, payee and/or financial institution databases or the payment attributes may be dynamic attributes defined during the payment request process. Thus, memory 130 may include payor-profile database 280, payee-profile database 290 and/or financial institution/bank database 294 operable for storing payment attributes. Thus, payor-profile database 280 may include a plurality of payor/customer profiles 282 and each profile 282 includes payment attributes 260 associated with the payor. Payee-profile database 290 may include a plurality of payee profiles 292 and each profile 292 includes payment attributes 260 associated with the payee. The financial institution/bank database 294 may include payment attributes 270 associated with an input payment request type or any other relevant association.
The payment processing module 150 is operable to receive payment instructions, validate the payment and determine routing for the payment. In accordance with present optional embodiments of the invention, the payment processing module 140 is operable to determine payment routing on a per payment-basis, such that the manner in which payment is remitted and settled may be determined based on characteristics related to the payment and/or payor, and/or payee and/or the financial institution handling the payment. In this regard, payment optimization is realized by the payor, the payee and/or the financial institution in terms of cost of payment processing, timeliness of payment processing and the quality/risk of the payment process.
Single modules are depicted for payment transformation module 210 and payment processing module 150, however, in accordance with present embodiments, the modules may comprise multiple modules and the multiple modules may be included within various different apparatus. Thus, the routines, applications, databases and logic described in relation payment transformation module 210 and payment processing module 150 may be included within multiple modules. Likewise, the rules and logic discussed in relation to payment transformation module 210 and payment processing module 150 may be included or implemented in multiple applications or routines.
Payment processing module 150 includes routing rule database 158 routing rules database 158 that includes one or more routing rules 160. The routing rules 160 may be related to payment routing factors such as, but not limited to, price/cost of processing payment, time requirements for processing the payment, the quality/risk requirements or allowances for processing the payment (i.e., the guarantee of remittance and settlement, the ability to stop payment and the like), the destination of the payment and the like. Thus, the routing rules 160 may include one or more cost/price-related routing rules 162, one or more time-related routing rules 164, one or more risk/quality-related routing rules 166, one or more destination-related routing rules 168 or other routing rules 169.
Cost/price-related routing rules 162 may define which remittance/settlement type 180 is chosen based on the price that the payor and/or payee is willing to bear for the payment being made or the cost that the financial institution is willing to bear or likely to charge the payor for handling the payment. In this regard, different remittance settlement types may be associated with different payment prices, such that, payment by one remittance/settlement type may be higher or lower in terms payment price than another remittance/settlement type.
Time-related routing rules 164 may define which remittance/settlement type 180 is chosen based on the payor's, payee's and/or the financial institution's acceptable time for completing the payment transaction. In most instances, the payor and/or payee has a desire to complete the payment as timely as possible, while the financial institution handling the payment has a desire to delay the remittance/settlement for as long a time period as possible. However, it should be noted that while in most instances the payor is concerned with making the payment as timely as possible in other instances the payor may desire to delay the time for payment, for example, if insufficient funds currently exist in the account from which the payment is being made.
Risk/Quality-related routing rules 166 may define which remittance/settlement type 180 is chosen based on the ability to insure or guarantee that the payment will be made, in other words, the service level afforded to the payment or the number of failure opportunities associated with different payment remittance/settlement types. Other risk/quality routing rules 166 may define the ability to return or stop payment during the payment process, data reconciliation capabilities, such as how funds are balanced, or any other routing rule associated with a quality or risk attribute as defined by the payor, the payee and/or the financial institution handling the payment process.
Destination-related routing rules 168 may define which remittance/settlement type 180 is chosen based the destination of the payment. For example, domestic payment may dictate certain types of remittance/settlement, while international payment may dictate other types of remittance/settlement.
Other routing rules 169 may additionally define other criteria for choosing the remittance/settlement type 180. Other routing rules may be dictated by the needs of the financial institution handling the payment process, the payor and/or the payee.
Payment module 150 additionally includes payment routing determination sub-module 170 that is executable by the processor 120 and is operable to determine payment routing (i.e., a payment type 180, otherwise referred to herein as a payment route) for a payment transaction from amongst more than one alternative payment types based on application of one or more of the routing rules. In instances in which more than one routing rule is applied to determine the remittance settlement type 180, the payment routing determination sub-module 170 may be operable to determine priority of the routing rules and/or make the appropriate routing determination that insures that the payor/payee and/or financial institution handling the payment process needs are met.
The payment routing determination sub-module 170 is operable to apply one or more payment attributes/payment criteria 250 to the one or more routing rules 160 to determine the payment route/type 180. The payment attributes may be payor-defined/payee-defined payment attributes 260 and/or financial institution/bank-defined payment attributes 270. The payor-defined/payee-defined payment attributes 260 may include, but are not limited to, price 262, time 264, risk/quality 266, remittance requirements, 267, destination 268 or any other appropriate attribute 269 that may be applied to a routing rule. The financial institution/bank-defined payment attributes 270 may include, but are not limited to, cost 272, time 274, risk/quality 276, remittance requirements 277, destination 278 or any other appropriate attribute 279 that may be applied to a routing rule.
The payment attributes/criteria 250 may be dynamically defined at the time of the payment request by the payor, the payee or the financial institution or the payment attributes/criteria 250 may be predefined attributes associated with the payor, the payee and/or financial institution. Additionally, in certain embodiments, payment attributes/criteria may be defined dynamically be the payor, payee and/or financial institution during the payment process. Thus, memory 130 may include, or the payment module may be in communication with another auxiliary device's memory (not shown in
As previously noted, the payment routing determination sub-module 170 may determine any appropriate payment route 180 type from among more than one alternative. The payment route/type may include check/paper 300, credit/debit card 302, electronic/ACH 304, wire 306, SWIFT 308, merchant 310, account transfer 312 or ant other 314 remittance/settlement payment route/type. An alternative payment route comprises two or more of the payment route-types. For example, check/paper 300 or credit/debit 302 comprises one alternative payment route, SWIFT 308 or account transfer 312 comprises another alternative payment route and wire 306 or SWIFT 308 or merchant 310 comprises another alternative payment route.
The customer payment input channels are user interface's and may include, but are not limited to, Open Financial Exchange(OFX)/Mobile payment input channel 512, generally operable on handheld devices and the like; web-based payment input channel 514, such as the Internet or a corporate website that is generally operable to receive Automated Clearing House (ACH) requests, wire payment requests, bill payment and the like; telephone/Interactive Voice Response (IVR) payment input channel 516; banking center payment input channel (in person) 518; and Automated Teller Machine (ATM) payment input channel 520.
The business/front end input channels 530 include, but are not limited to, point-of-sale payment input channel 532, such as credit/debit card swipe or the like; image exchange payment input channel 534; remote deposit payment input channel 536; bulk file messaging payment input channel 538; and straight back office integration input channel 540, in which a business application directly calls/accesses a financial institution payment engine to originate a transaction.
Referring again to the method 400 of
The payment arrangement criteria/attribute sources 600 may additionally include invoicing and payment statements 620 issued by the payor and/or payee that define payment arrangement attributes/criteria for a specific payment or a series of payments, such as payment risk/quality, payment destination and the like. Sources 600 may additionally include payment alerts and/or payment notifications 630 that are generally associated with a specific payment or a series of payments and define payment arrangement criteria specifically designated by the payor, the payee or the financial institution handing the payment transaction.
The payment arrangement criteria/attribute sources 600 may include payor profile/set-up 640. Payor profile/set-up 640 may be a dynamic set-up for a specific payment that the payor has requested. Alternatively, the payor may have a predetermined payment profile, which may be stored in an accessible payor profile database that predefines payment attributes/criteria.
Referring again to the method 400 of
At Event 440, payment processing occurs at what is referred to herein as the payment processing module or payment hub. Based on the transformation/normalization of the payment request, the payment hub is capable of processing all types of payment input requests. It should be noted that while the events (Events 442, 444 and 446) shown in payment processing block occur in sequential order, according to present embodiments, the events may occur in any sequential or serially order, as determined by the payment hub, in order to optimize the payment process.
It should be noted that the routines, modules, applications and functions shown in relation to Event 440 and described herein as occurring in the payment engine may be accessed and implemented by other applications, such as other payment processing applications that do not implement the payment engine or the like. In this regard, other applications may access the specific routines, modules, applications and functions on an as-needed basis. For example, if another payment processing application requires payment validation in the form of compliance to anti-money laundering laws, the application can access and implement that specific portion of the payment hub as opposed to implementing the multiple applications in the payment hub or the payment hub in its entirety.
Payment processing may include, at Event 442, receiving the payment instructions, such as payment attributes/criteria, invoicing/statements, alerts, notifications and the like, which are used to make payment processing decisions.
At Event 443, payment processes and arrangement are determined. As previously noted, payment processes and arrangement may be based on payment input channel, payment type and/or payment attributes. The payment attributes may be payee-defined attributes, payor-defined attributes and/or financial institution-defined attributes. The attributes may be pre-defined attributes associated with a payee or payor profile or the attributes may be dynamic attributes defined during or in close proximity to the payment process. It should be noted that in instances in which the payment processes and arrangement are based, at least in part, on payment type, the determination of payment routing (Event 448) may precede the determination of subsequent payment processes and the arrangement of subsequent payment processes. In this regard and as previously noted, the determination of payment processes and the arrangement of payment processes are not limited to occurring at the onset of payment processing within the payment hub, but, instead, may occur at any stage or point in time within the process.
At Event 444, specific payment processing occurs within one or sub-modules based on the payment type being made.
Specific payment process sub-modules 700 may include scheduled and recurring payment sub-module 710. The scheduled and recurring payment sub-module 710 manages the initiation of future dated and recurring payments, including the use of predefined custom templates set-up for the scheduled/recurring payments. Additionally, specific payment process sub-modules 700 may include debit/credit correlation sub-module 720 that includes timing and sequencing processing to insure the relationship of the original payment association. In this regard, individual credits are associated and balanced to original debit when processed at a payment item level.
The specific payment process sub-modules 700 may also include verification sub-module 730 operable to verify the payment and associated account attributes to insure positive clearing of the payment. Additionally, specific payment process sub-modules 700 may include bulk payment sub-module 740 that is operable to aggregate and optimize communications to external systems for large payment files having multiple individual payment items with multiple payment items having the same posting accounts. Also, specific payment process sub-module 700 may include payment warehouse/database 750 that is operable to store future dated payments, payment history, recurring payment models and the like.
Referring again to the method 400 of
Payment processing (Event 440) may also include validation processing 446 of the payment.
Validation process sub-modules 800 may include compliance process sub-module 810 operable to insure anti-money laundering of the payment. Compliance processing may include a security check of Office of Foreign Asset Control (OFAC) listing of known individuals, corporations or the like associated with illegal payment processing. Additionally, validation process sub-modules 800 may include foreign exchange/Single European Payments Area (SEPA) sub-module 820 operable to maximize foreign currency exchange rates, provide for multi-currency support and insure compliance with SEPA rules and regulations.
In addition, validation process sub-modules 800 may include financial risk assessment sub-module 830 operable to provide credit and risk management for the overall payment process. In this regard, the financial risk assessment process may provide for liability risk assessment scores and the like that are subsequently used by the rules-based routing determination to limit or mandate the type of remittance/settlement route that may be implemented. For example, if the financial risk is determined to be high, route determination may exclude wire payments as a remittance/settlement payment option.
Also, validation process sub-modules 800 may include exception handling sub-module 840 operable to provide centralized exception processing and management of all payment types. Exception processing takes into account errors in the payment processing, such as formatting error or the like and may implement an auto repair for common exceptions/errors. Auto repair of exceptions provides for less need for manual intervention and improves straight-through payment processing rates.
Referring again to the method 400 of
Payment processing (Event 440) may also include rules-based route determination processing 448.
As previously noted, time-related routing rules 910 may define which remittance/settlement type 180 is chosen based on the payor's, payee's and/or the financial institution's acceptable time for completing the payment transaction. In most instances, the payor and/or payee has a desire to complete the payment as timely as possible, while the financial institution handling the payment has a desire to delay the remittance/settlement for as long a time period as possible. Cost/price-related routing rules 920 may define which remittance/settlement type 180 is chosen based on the price that the payor and/or payee is willing to bear for the payment or the cost that the financial institution is willing to bear or likely to charge the payor for handling the payment.
Risk/quality-related routing rules 930 may define which remittance/settlement type 180 is chosen based on the ability to insure or guarantee that the payment will be made, in other words, the service level afforded to the payment or the number of acceptable failure opportunities associated with different payment remittance/settlement types. Other risk/quality routing rules 166 may define the ability to return or stop payment during the payment process, data reconciliation capabilities, such as how funds are balanced, or any other routing rule associated with a quality or risk attribute as defined by the payor, the payee and/or the financial institution handling the payment process. Destination-related routing rules 940 may define which remittance/settlement type 180 is chosen based the destination of the payment. For example, domestic payment may dictate certain types of remittance/settlement, while international payment may dictate other types of remittance/settlement.
Payor/payee-defined rules 950 may additionally define other criteria for choosing the remittance/settlement type. Payor/payee-defined routing rules 950 may be dynamically defined proximate to the time of the payment request or may be predefined in the payor or payee profile. In most instances, payor or payee-defined routing rules will override any other routing rules.
Referring once again to the method 400 of
At Event 450, in accordance with present embodiments, the normalized and processed payment is transformed to the remittance/settlement target clearing format. Transformation to the target clearing format is dictated by the initial normalization of the payment request to a standardized format. In addition, transformation to the target clearing format provides for payment remittance via the payment channel determined at payment route determination processing.
At Event 460, payment is remitted and settled according to the determined payment route.
Referring to
At Event 1120, a plurality of payment processes associated with the payment request are determined. The payment processes may be determined based on the payment input channel, the payment route or payment type and payment attributes. As previously noted the payment attributes may be payor-defined attributes, payee-defined attributes or financial institution-defined attributes. Additionally, the attributes may be pre-defined attributed that are stored in database or the attributes may be dynamically defined at the inception of the payment request or during the payment process.
At Event 1130, the arrangement or order of the payment process is determined. Similar to the determination of the payment processes, the determination of the arrangement of the process may be based on the payment input channel, the payment route or payment type and payment attributes. As previously noted the payment attributes may be payor-defined attributes, payee-defined attributes or financial institution-defined attributes. Additionally, the attributes may be pre-defined attributed that are stored in database or the attributes may be dynamically defined at the inception of the payment request or during the payment process.
At Event 1140, the determined payment processes are performed according to the determined arrangement. In one embodiment, processing occurs in a payment hub that provides for numerous payment processes to occur based on payment type. For example, payment processing may include, but is not limited to, payment route determination processing, scheduled and/or reoccurring payment processing, debit and credit correlation processing, payment verification processing, bulk payment processing, payment compliance processing, foreign exchange processing, financial risk assessment processing, and/or payment exception handling processing. As previously noted, modifications to the payment process and/or arrangement may occur during the performance of the payment process based on an outcome of one or more of the payment processes.
At Event 1150, the financial payment is provided to the payee via the determined payment route.
Thus, methods, devices, systems and computer program products have been described herein that provide for managing the processing of a financial payment and, more specifically managing the processing of a financial payment in a comprehensive payment hub environment that provides for payment processing, including payment route determination, irrespective of the payment input channel. In accordance with embodiments herein disclosed, managing the processing of the payment includes automatically determining the payment processes and automatically determining the arrangement of the payment processes. As such, the methods, systems, and computer program products herein described provide for an efficient and cost-effective approach to processing payments.
While the foregoing disclosure discusses illustrative embodiments, it should be noted that various changes and modifications could be made herein without departing from the scope of the described aspects and/or embodiments as defined by the appended claims. Furthermore, although elements of the described aspects and/or embodiments may be described or claimed in the singular, the plural is contemplated unless limitation to the singular is explicitly stated. Additionally, all or a portion of any embodiment may be utilized with all or a portion of any other embodiment, unless stated otherwise.
While certain exemplary embodiments have been described and shown in the accompanying drawings, it is to be understood that such embodiments are merely illustrative of and not restrictive on the broad invention, and that this invention not be limited to the specific constructions and arrangements shown and described, since various other changes, combinations, omissions, modifications and substitutions, in addition to those set forth in the above paragraphs, are possible. Those skilled in the art will appreciate that various adaptations and modifications of the just described embodiments can be configured without departing from the scope and spirit of the invention. Therefore, it is to be understood that, within the scope of the appended claims, the invention may be practiced other than as specifically described herein.
The present application is a continuation-in-part of U.S. patent application Ser. No. 12/370,943, entitled, “Systems, Methods and Computer Program Products for Optimizing Routing of Financial Payments,” filed on Feb. 13, 2009, assigned to the assignee of the present application, the contents of which are hereby incorporated by reference in their entirety.
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| Number | Date | Country | |
|---|---|---|---|
| 20100211483 A1 | Aug 2010 | US |
| Number | Date | Country | |
|---|---|---|---|
| Parent | 12370943 | Feb 2009 | US |
| Child | 12433267 | US |
