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

[0011]A technical advantage achieved with the invention is that it enables the use of debit card (ATM) networks for a real-time positively authorized bill payment that inquire electronically against balances on deposit PRIOR to the processing of the bill payment transaction, thus eliminating the Automated Clearing House to process individual transactions.

[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.

[0015]Still another technical advantage achieved with the invention is the elimination of any specialized equipment on the part of the consumer to process an electronic bill payment (i.e., personal computers, specialized telephones or terminals, etc.).

[0016]A further technical advantage achieved with the invention is the elimination of any pre-registration or “sign up” procedure on the part of the payor.

[0017]A final technical advantage achieved with the invention is the provision to the recipient of the bill payment of an electronic daily general ledger or activity summary, that balances back to the gross amount of electronic deposits made in the designated bank accounts by the utilized debit card networks. Moreover, the system of the present invention offers to the consumer the advantage of anywhere, anyplace, anytime, convenience with complete spontaneity as to the system usage.

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 presented the possibility that a transaction could be returned for non-sufficient funds reasons.

Moreover, although it is known in the field of accounting to call and manually, in conjunction an operator, verify that a payor had remitted a bill, there is no capability for the recipient of the funds (payee) to electronically immediately and positively inquire as to payment status after it was electronically authorized by the a debit card network.

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