Patent ID: 7792717
Filing Date: 2010-09-07
Classification: G06Q

Abstract:
1. A computer-implemented method of prioritized processing of payments for recurring bills, the prioritized processing accomplished using at least one computer processor, the method comprising: establishing a plurality of payment source options, the payment source options including multiple types of source accounts including at least two of a credit card account, a checking account, a debit card account, a stored value account, a savings account, a home equity line of credit, and a margin account; establishing priority rules for prioritizing the payment source options, wherein each of said types of source accounts is selectable as a primary payment source having a first priority and a secondary payment source having a second priority to be usable for future payments from the payor; selecting charge distribution rules through the at least one computer processor, the charge distribution rules for distributing a payment on a percentage basis across at least two of the prioritized payment source options according to the priority rules, wherein the charge distribution rules limit a first charge to a highest priority payment source account to a first pre-determined percentage of the payment and limit a second charge to a next highest priority payment source account to a second pre-determined percentage of the payment; allowing the payor to establish payor payment rules that govern the submission of transactions against the prioritized payment sources beyond the order of priority, the payor payment rules comprising date restrictions for restricting withdrawal from at least one specified payment source on selected dates; storing the established priority rules and selected charge distribution rules in a database; identifying a payment due for a payee; submitting, by a payee or payment administrator, a transaction against the prioritized plurality of payment sources to the at least one computer processor; processing the transaction, using the at least one computer processor, against the prioritized plurality of payment sources in the order of their priority, as set forth by priority rules and the charge distribution rules stored in the database, and in accordance with the payor payment rules, until one of said payment source options satisfies the payment due, wherein the transition from one payment source to another is automatically executed by the at least one computer processor accessing the database and executing payment in accordance with the priority rules and charge distribution rules; thereby providing a waterfall payment process enabling a payment due from a payor to be satisfied for a payee using the prioritized plurality of payment sources.