Automated interactive bill payment system using debit cards

Abstract

Method and apparatus for processing payment transactions using debit card numbers without the requirement of a personal identification number (PIN) is disclosed. A telepay system of the present invention provides an interface between a standard touchtone telephone and at least one debit card network such that real-time bill payment transactions may be effected using a keypad of the telephone. The telepay system includes an interactive voice response unit for prompting a payor to enter an access code, account number, debit card number and payment amount and for informing the user of the status of the transaction. Real-time processing of transactions is provided through use of debit card networks, rather than the Automated Clearing House. The telepay system is also capable of performing settlement functions and processing inquiries by payees of the system regarding previously processed transactions.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS<?insert-end id="INS-S-00001" ?>[0001]This is a continuation of application Ser. No. 08 / 797,98108 / 787,981filed on Jan. 22, 1997, now U.S. Pat. No. 5,715,298<?insert-start id="INS-S-00003" date="20050927" ?>, which was a continuation of application Ser. No. 649,926, filed May 16, 1996, now U.S. Pat. No. 5,652,786, which was a continuation of application Ser. No. 442,129, filed May 16, 1995, now abandoned, which was a continuation of application Ser. No. 195,372 filed Feb. 14, 1994, now abandoned<?insert-end id="INS-S-00003" ?>.TECHNICAL FIELD[0002]The invention relates generally to systems for electronic bill payment systems and, more particularly, to a universal, real-time bill payment system method and system that uses debit (ATM) cards without the requirement of a PIN (personal identification number) in conjunction with touch tone telephones to initiate consumer bill payments electronically and provide for the elimination o...

AI Technical Summary

Benefits of technology

[0012]Another technical advantage achieved with the invention is that it enables real-time inquiry capability into the consumers balances at virtually any U.S. financial institution in order to verify funds on deposit prior to processing the transaction, thereby eliminating the possibility of a non-sufficient funds occurrence.

[0013]Another technical advantage achieved with the invention is the elimination of a PIN (personal identification number) in conjunction with debit card number usage in order to comply with Regulation E of the U.S. Banking Regulations by maintaining security and frequency of usage restrictions in the method and process.

[0014]Yet another technical advantage achieved with the invention is the integration of interactive voice response technology and debit card number authorization processing with electronic funds transfer bill payment method and process.

[001

Problems solved by technology

Existing pay by phone systems offered some convenience to the user, but were cumbersome to administer and usage was never widespread.

There was a natural resistance to the purchase of special telephones that proved to be relatively expensive, in addition to the monthly fees necessary to remain a customer of this service.

Still, however, all of the aforementioned limitations still applied to these personal computer based systems.

The system pre

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