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

This is a continuation of application Ser. No. 08/649,926 filed on May 16, 1996, now U.S. Pat. No. 5,652,786, 314 304, the system 10 determines whether there are other files to be transmitted. In step 306, the system 10 outdials the appropriate telephone number established in advance to establish a telephonic RJE link with the next payee in step 302, in a manner similar to the aforementioned, the transactions that the system 10 performed in favor of that particular payee will be transmitted to that payee's computer billing system 10. Once all the files have been transmitted, the settlement process is terminated in step 308.

FIG. 4 is a flowchart of a payee inquiry process of the present invention, which provides a payee with the ability to initiate a telephone cell into the present invention operating as a third party to the transaction, in order that payment information can be discerned in conjunction with a touch tone telephone. The process is initiated by a payee calling into the system 10. In step 400, the system 400 will ask the caller to input a security code, which is assigned to each payee and is different for each payee. The input of a proper code will indicate to the system which payee payments are to be inquired upon. Without a proper code, no inquiry access is permitted. It is important to recognize that this system capability is for the payee, and not for the actual payor of the bill. This system capability assists in past due collection activity.

In step 402, the system 10 checks its internal data files to ascertain the validity of the code entered. If an improper code is entered, in step 404, the system 10 informs the caller that the code is invalid. If the entered code matches one that was contained in the system database, in step 406, the system 10 requests the caller to enter the account number of the customer whose bill is being inquired upon. After the caller enters the account number, in step 408, the system attempts to locate it on the system database. If the system 10 cannot locate the account number, in step 410, the caller is informed that no payment exists for the entered account number and is given an opportunity to enter another account number in step 406. If the entered account number is located, in step 412, the system 10 informs the caller of the details of the transaction, to wit, time, date, amount, and authorization number of the payment. In step 414, upon completion of the audio text information, the caller is asked whether he or she has another inquiry to perform. If so, in step 406, the system 10 prompts the caller to enter the account number; otherwise, the system 10 terminates the call in step 416.

The crux of this invention is that bill payment transactions have never been presented to the debit networks for a real-time authorization initiated by the consumer from a touch tone telephone with the debit card number used as the transaction vehicle. Additionally, this process have never been done without the requirement of a PIN (personal identification number) and still maintain an assemblage of transaction security. In the TelePay System, when a transaction is entered by a consumer, and subsequently passed on to an outside debit card network for authorization, a number of things happen. Assuming that the transaction is authorized, then any fee that the customer is paying, in addition to the actual bill payment, is automatically deducted from the payor's account immediately and added to the amount that the debit card network will distribute between TelePay and the payee at settlement. The amount of the bill that was paid is automatically added to the amount that will be credited to the payee at the end of the business day (every payee is required to provide a back account number that will be used to electronically credit the days receipts). TelePay's bank account will, in a like manner, be automatically credited for the transaction fee. Any network usage fees that have to be paid to process the transaction by the use of an debit card network will be electronically paid by TelePay to the appropriate service provider. Once a day at TelePay's settlement time, each payee participating in the system will receive the electronic on-line detail summary of the days individual transactions for posting to the consumer's account.

The following criteria and conditions are part of the TelePay method and unique process prior to the acceptance of a debit card number into the system in order to ensure a proper transaction has been presented and to add a level of usage security. First, a service address (telephone number or residential electricity site, etc.) or payee account number can only be the recipient of a specific limited number of payments within 30 days that is selectable by the funds recipient and a velocity file by account number is kept at the TelePay system tracking this limitation. In addition, a debit card number can only be used in the TelePay system a specific limited number of times based on a recipient of funds selectable parameter and current recipient of funds (payee) negative files due to adverse experience are added to the TelePay system prior to implementation.

Still further, any consumer chargebacks will prevent that customer's telephone number/electricity service address number and that credit/debit card number to have system access. Appropriate additions will be made to the negative file unless specific overrides are requested by the funds recipient. Also, all transactions will be routed electronically to the card issuing entity/network by the TelePay system for positive authorization as to card acceptability, credit limit guidelines, payment status, balance availability, and any and all criteria that the issuer deems appropriate.

Additionally, the TelePay system will provide records of all declinations by card number and by telephone number, electric service account number, or payor account number, whichever is appropriate and a check will be done on all debit card numbers entered into the TelePay system to ensure that the input number is an assigned number within the criteria of the issuing entities, as well as on service address account numbers to insure that the proper number and sequence of digits have been entered to add an additional level of accuracy to the numeric entry process. Moreover, the customer will always be given positive audio reinforcement at critical steps during the data entry process to assist in the entry of accurate information and transaction declinations due to non-sufficient funds will be audio referred for the consumer to contact their card issuing institution.

Accordingly, it is clear that the TelePay system is a technologically advanced and consumer convenient process. The consumer may use the TelePay system to pay bills at will, spontaneously, without any personal investment in equipment, and any requirement of pre-registration. The use of the TelePay system is not tied to a specific locations, as any touch tone telephone will suffice. Use of this unique process will eliminate the use of stamps, envelopes, the U.S. Postal Service, and the necessity of going to a mailbox. Personal computers and the lack of realistic portability are problems that do not exist in the present invention. Receipt of payment is also assured and issues of “lost in the mail” or mail delays will no longer exist. Debit cards will now have true utility as transaction vehicles in order to electronically present payment as opposed to paper checks. Older technology of pre-registration and direct debit registration systems will become obsolete.

It is understood that the present invention can take many forms and embodiments. The embodiments shown herein are intended to illustrate rather than to limit the invention, it being appreciated that variations may be made without departing from the spirit of the scope of the invention. For example, it is anticipated that the payor may be an individual or an institution, such as a corporation or association.

Although illustrative embodiments of the invention have been shown and described, a wide range of modification, change and substitution is intended in the foregoing disclosure and in some instances some features of the present invention may be employed without a corresponding use of the other features. Accordingly, it is appropriate that the appended claims be construed broadly and in a manner consistent with the scope of the invention.

Claims

1. A method of paying bills using a telephone connectable to at least one remote payment card network via a payee's agent's system, wherein a caller places a call using said telephone to initiate a spontaneous payment transaction that does not require pre-registration, to a payee, the method comprising the steps of:

prompting the caller to enter an account number using the telephone, the account number identifying an account of a payor with the payee in connection with the payment transaction;

responsive to entry of an account number, determining whether the entered account number is valid;

prompting the caller to enter a payment number using the telephone, the payment number being selected at the discretion of the caller from any one of a number of credit or debit forms of payment;

responsive to entry of the payment number, determining whether the entered payment number is valid;

prompting the caller to enter a payment amount for the payment transaction using the telephone;

responsive to a determination that a payment amount has been entered and further responsive to a determination that the entered account number and payment number are valid, and during the call:

accessing a remote payment network associated with the entered payment number, the accessed remote payment network determining, during the call, whether sufficient available credit or funds exist in an account associated with the entered payment number to complete the payment transaction;

responsive to a determination that sufficient available credit or funds exist in the associated account, charging the entered payment amount against the account associated with the entered payment number, adding the entered payment amount to an account associated with the entered account number, informing the caller that the payment transaction has been authorized, and storing the account number, payment number and payment amount in a transaction log file of the system during the call; and

responsive to a determination that sufficient available credit or funds do not exist in the associated account, informing the caller during the call that the current payment transaction has been declined and terminating the current payment transaction.

2. The method of claim 1 wherein said payment number is a debit card number.

3. The method of claim 1 wherein said payment number is a credit card number.

4. The method of claim 1 wherein the payment amount represents a partial payment amount determined by the caller.

5. The method of claim 1 wherein the step of adding the entered payment amount to an account associated with the entered account number and informing the caller that the payment transaction has been authorized utilizes an approval code issued by the accessed remote payment card network.

6. The method of claim 5 wherein the step of storing the account number, payment number and payment amount in a transaction log file also stores the approval code in the transaction log file.

7. The method of claim 1 further comprising the step of:

responsive to a determination that sufficient available credit or funds do not exist in the associated account, informing the caller during the call that the current payment transaction has been declined and terminating the current payment transaction.

8. The method of claim 1 wherein said steps of prompting said caller are performed during said call by an interactive voice response unit of said payee's agent's system.

9. The method of claim 1 further comprising, after each of said determining steps:

informing said caller of results of said determination using an interactive voice response unit of said payee's agent's system; and

terminating said current payment transaction of said results of said determination are negative.

10. The method of claim 1 further comprising, prior to said accessing:

summarizing details of said current payment transaction to said caller using an interactive voice response unit of said payee's agent's system;

prompting said caller to accept said current payment transaction; and

responsive said caller not accepting said current payment transaction, terminating said current payment transaction.

11. The method of claim 1 wherein said step of determining whether said entered account number is valid further comprises:

responsive to a determination that said entered account number is not valid, prompting said caller to enter another account number;

repeating said determining and said prompting up to a predetermined number of times; and

terminating said current payment transaction if a valid account number is not entered within said predetermined number of times.

12. The method of claim 1 further comprising periodically performing a settlement process, said settlement process comprising:

accessing a computer billing system of said payee; and

transmitting to said payee's computer billing system said stored access code, account number, payment card number and payment amount from said transaction log file.

13. A method of paying bills using a telephone device connectable to at least one remote payment network via a payee's agent's system, wherein a connection is made using the telephone device to initiate a payment transaction that does not require pre-registration, the method comprising the steps of:

prompting for entry of a valid account number using the telephony device, the account number identifying an account of a payor in connection with the payment transaction;

prompting for entry of a valid payment number using the telephony device, the payment number being selected from any one of a number of forms of payment;

prompting for entry of a payment amount using the telephony device;

responsive to entry of a payment number and payment amount, accessing a remote payment network associated with the entered payment number, the accessed remote payment network determining, during the connection, whether sufficient available credit or funds exist in an account associated with the entered payment number to cover the entered payment amount; and

responsive to a determination that sufficient available credit or funds exist in the associated account, debiting the entered payment amount from the account associated with the entered payment number, crediting the entered payment amount to an account associated with the entered account number, and storing the account number, payment number and payment amount in a transaction log file of the system during the connection.

14. The method of claim 13 wherein said payment number is a credit card number or a debit card number.

15. The method of claim 13 wherein the payment amount represents a partial payment amount.

16. The method of claim 13 wherein the step of adding the entered payment mount to an account associated with the entered account number and informing the caller that the payment transaction has been authorized utilizes an approval code issued by the accessed remote payment card network.

17. The method of claim 16 wherein the step of storing the account number, payment number and payment amount in a transaction log file also stores the approval code in the transaction log file.

18. A system for enabling a payor to pay bills using a telephone connectable to at least one remote payment network via a payee's agent's system, wherein a caller places a call using the telephone to initiate a payment transaction that does not require payor pre-registration, the system comprising:

means for prompting the caller to enter a valid account number using the telephone, the account number identifying an account of the payor with the payee in connection with the payment transaction;

means for prompting the caller to enter a valid payment number using the telephone, the payment number being selected at the discretion of the caller from any one of a number of forms of payment;

means for prompting the caller to enter a payment amount using the telephone;

means for responsive to entry of a payment number and payment amount, accessing a remote payment network associated with the entered payment number, the accessed remote payment network determining, during the call, whether sufficient available credit or funds exist in an account associated with the entered payment number to cover the entered payment amount; and

means responsive to a determination that sufficient available credit or funds exist in the associated account, for debiting the entered payment amount from the account associated with the entered payment number, crediting the entered payment amount to an account associated with the entered account number, and

means responsive to a determination that sufficient available credit or funds exist in the associated account, for debiting the entered payment amount from the account associated with the entered payment number, crediting the entered payment amount to an account associated with the entered account number, and storing the account number, payment number and payment amount in a transaction log file of the system during the call.

19. The system of claim 18 wherein said payment number is a debit card number.

20. The system of claim 18 wherein said payment number is a credit card number.

21. The system of claim 18 wherein the means for adding the entered payment amount to an account associated with the entered account number and informing the caller that the payment transaction has been authorized utilizes an approval code issued by the accessed remote payment card network.

22. The system of claim 21 wherein the step of storing the account number, payment number and payment amount in a transaction log file also stores the approval code in the transaction log file.