Abstract:
A computerized payment system and method is disclosed which provides subscribers with funds based on their income at regular, pre-defined intervals other than those on which they are normally paid. In so doing, it interfaces with the subscriber or with the subscriber and his source of income, and utilizes a computer network to electronically transfer funds and record transactions. Payments may be made with either net pay, or net pay less deductions; may be of advances or distributions; and may be of either fixed or variable amounts.

Description:
REFERENCE TO RELATED APPLICATION  
       [0001]     This application is based on U.S. Patent Application Ser. No. 60/639,354 filed Dec. 23, 2004. 
     
    
     FIELD OF INVENTION  
       [0002]     The invention relates generally to an automated payment process, and more particularly to an automated payment process that enables an individual to be paid at predefined intervals other than those of the pay system offered by his or her company or other income source, through a computer network interface with the company or other income source and with at least one financial institution.  
       BACKGROUND OF THE INVENTION  
       [0003]     In recent decades, American companies have faced vast challenges, and have found significant cost savings in changing from paying employees weekly to paying on a bi-weekly, semi-weekly, or monthly basis. This affords a company multiple benefits, including yielding greater interest income by keeping money in the financial institution longer; allowing more time to generate funds with which to make payrolls; minimizing payroll department personnel and workload requirements; and reducing the costs associated with administering payroll.  
         [0004]     Though this practice has proven to be very beneficial to companies, it has had a long-term, detrimental effect on society as a whole.  
         [0005]     More relevant than just the mere psychological satisfaction of collecting pay at the end of each week is the reality that, in general, most people are not good managers of money. The greater majority either cannot or do not budget their income, and often find themselves stretching to make it until the next pay period. Accordingly, Americans frequently rely on resources such as high interest rate credit cards, loans, and check advance services. The result is personal debt. Debt-related stress continues to be the number one cause of divorce in America. Personal debt is a large contributor to depression and suicide. It is a major cause of health issues, insomnia, and low self-esteem.  
         [0006]     Accordingly, it is an object of the present invention to offer an equitable solution to both company and employee. By offering to pay continuing base-net pay to employees who have already earned and are owed this money, but who would not normally receive it until their company&#39;s scheduled payday, the needs of both employees and company can be met. Using the present invention, an employee will receive his or her earned money each week as bills come due, or emergencies arise, thus providing a means for self-sufficiency through improved personal money management. Moreover, it is an additional object of the present invention to promote a steady and flowing national economy by permitting large companies and government agencies to provide their employees who are not currently paid weekly with the option to receive weekly pay, without cost to the company.  
         [0007]     It is thus also an object of the present invention to provide a means for employees to achieve self-sufficiency, improve their credit scores, have an alternative to using costly credit cards or check advance companies, avoid expensive overdraft fees and associated charges, reduce personal debt, and reduce financial stress and the ill effects that accompany it.  
         [0008]     Accordingly, it is seen that a need remains for a method of payment that provides for weekly pay to employees who are paid bi-weekly, semi-monthly, or monthly. It is to the provision of such that the present invention is primarily directed. 
     
    
     BRIEF DESCRIPTION OF THE FIGURES  
       [0009]      FIG. 1  illustrates an overview of a computerized system utilized according to a first preferred form of the invention;  
         [0010]      FIG. 2  illustrates an overview of a computerized system utilized according to a second preferred form of the invention during weeks one and three;  
         [0011]      FIG. 3  illustrates an overview of a computerized system utilized according to the second preferred form of the invention during weeks two and four;  
         [0012]      FIG. 4  illustrates an overview of a computerized system utilized according to a third preferred form of the invention.  
         [0013]      FIGS. 5-43  are a series of illustrations showing the monitor screen of a work station through the different steps of subscriber enrollment, company enrollment, verification, inactivation, and reactivation. 
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0014]     With reference next to the drawings, when the system according to the present invention is utilized, subscribers are provided with funds at regular, predefined intervals other than those on which they are normally paid. The subscriber may interact with his or her financial institution and/or with the service provider to access account information via the Internet, a computerized phone system, phone, or fax. When the subscriber is paid by the company, the service provider is reimbursed for the service of providing the intermediate pay, as well as for the amount of the intermediate pay. All funds transfers are done via direct deposit, ACH, or wire transfer. All transmissions occur over secure electronic means (such as over a VPN or the Internet via SSL).  
         [0015]     Referring now to the numerous figures, wherein like references identify like elements of the invention,  FIG. 1  illustrates an overview of a computer network  100  utilized according to a first preferred form of the invention. The first form is a subscriber-centric model that provides for payment of a contractually established fixed amount of funds. In this form, any employed individual, or one receiving Social Security benefits, retirement pay, or military pay, can self-enroll. The network  100  is accessed as shown in Steps  1 A, B, and C by a subscriber  110 . In Step  1 A, individuals subscribe via Internet or telephone (into a computerized voice attendant). In Step  1 B, the service provider  120  (“UniRich” in the drawings) sends authorization forms to a potential subscriber  110  via Internet, mail, or a facsimile. In Step  1 C, subscriber  110  sends back the completed form via mail, so that original signatures are available to the service provider  120 . In Step  2 A, the service provider  120  scans the completed form into a computer and e-mails the form to the potential subscriber  110 &#39;s company or other income source (“company 140”) for verification of status and income. Alternatively, the form may be sent via mail or facsimile. In Step  2 B, the potential subscriber  110 &#39;s company  140  sends verification via e-mail, facsimile, or mail. The subscriber  110 &#39;s credit may also be verified, and the subscriber  110  may be asked to provide the administrator  120  with a line of credit or credit card number.  
         [0016]     In Step  3 , the service provider  120  sends an electronic funds transfer authorization with direct deposit data to the service provider  120 &#39;s financial institution  130 . Network software will recognize any uncollected balance on each account, and stop further payment to any such account until a zero balance is indicated.  
         [0017]     In Step  4 , the service provider  120 &#39;s financial institution  130  sorts by routing number, and extracts and deposits funds into the customer account for the potential subscriber  110 . Thereafter, in Step  5 A, the service provider  120 &#39;s financial institution  130  electronically sends a transaction report to the service provider  120 . In Step  5 B, the service provider  120 &#39;s financial institution  130  electronically sends a transaction report to any subscriber  110  who is also a customer of that financial institution.  
         [0018]     In Step  6 , the service provider  120 &#39;s financial institution  130  electronically forwards the remainder of subscriber  110 &#39;s deposit to the Federal Reserve  140 . The Federal Reserve  140  then sorts in Step  7  the routing numbers and electronically distributes the rest of the deposit to subscriber  110 &#39;s financial institution account. In Step  8 , a subscriber  110 &#39;s financial institution, be it credit union  150 , bank  160 , or other financial institution  170 , sends a deposit report to its customer, subscriber  110 . In Step  9 , subscriber  110  may access his or her funds at his or her individual financial institution  150 ,  160 , or  170 , at the ATM  180 , on line via the Internet, or by check  190 , or by check card  200 .  
         [0019]     Step  10  indicates that subscriber  110  may view his transaction at the service provider  120 &#39;s website, or he may use a phone keypad for direct electronic access to payment information. Step  11  indicates that the service provider  120  automatically deducts a service charge on designated dates. The subscriber  110 &#39;s monthly financial institution statement reflects the transactions indicated in steps  4 ,  7 ,  9 , and  11  in Step  12 .  
         [0020]     Turning to  FIGS. 2 and 3 , the computer network  100  utilized according to a second preferred form of the invention is illustrated. The figures show a hypothetical scenario in which a company pays every other week (designated weeks 2 and 4), and the employee wishes to be issued funds on weeks 1 and 3. In this example, weeks 2 and 4 may be considered the “pay weeks” and weeks 1 and 3 may be considered the “non-pay weeks.” This model can also be used for a company which pays monthly; in that case, week 2 (or week 4, but not both) could be considered a “non-pay week.” Also, in such a monthly-pay scenario, if an employee merely wanted by-weekly funds, then one week could be considered a “pay week” (i.e., the week he or she is paid by his or her employer), one week considered a “non-pay week” (i.e., the week he or she is issued funds by the service provider), and the other two weeks could be considered “inactive weeks,” in which no activity occurs at all. For the remainder of this document, however, the description will assume the hypothetical scenario represented in the figures in which employees are paid biweekly by their employer, and wish to receive funds every week. According to this preferred form of the invention, which is a company-centric interface model that permits varying amounts of funds to be paid, a subscriber  110  can be initialized as follows. As shown in  FIG. 2 , in Step  1  the service provider  120  starts the registration period when the company  140  executes an agreement with the service provider  120 . The company  140  then, in Step  2 , registers on the service provider  120 &#39;s website. In Step  3 , the service provider  120  gives company  140  access to the computer network  100  by providing it with access credentials. In Step  4 , the service provider  120  tests its systems once company  140  has completed the required registration process. Then in Step  5 , company  140  informs its employees (potential subscribers  110 ) of the computerized system and method for providing higher-frequency pay to employees, and gets interested employees (potential subscribers  110 ) on direct deposit.  
         [0021]     Employees of a subscribing company  140  sign up by applying to the appropriate department in their company. Part of this application requires instructing the company  140  to send the appropriate funds to the service provider  120 , as directed by a service provider  120 —produced subscriber contract. The company  140  informs the service provider  120  of any new individual subscriber  110  via the electronic means described above, and then the service provider  120 , the subscriber  110 , and the company  140  agree upon the amount and frequency the subscriber  110  is to be paid. To finalize his or her individual subscription, an applicant must confirm his or her information to the service provider  120  via electronic means (such as a website) or through a computerized phone system, phone or fax.  
         [0022]     In Step  6 , company  140  registers subscribers  110  via the Internet; subscribers  110  may also register themselves directly via the Internet; or subscribers  110  may phone directly into a computerized voice attendant or a call center to register themselves. This completes the registration phase.  
         [0023]     In Step  7 , employee wage information is exported from the company  140 &#39;s accounting software and processed by the service provider  120 &#39;s software. This may be accomplished either by on-site software, or it can be a web-based application. This application (web-based or on-site) will extract the appropriate information from the software at the appropriate time, while filtering out sensitive data such as name or Social Security number. It will then store the information in a secure relational database.  
         [0024]     As seen in  FIG. 2 , in weeks 1 and 3 of this system and method under a hypothetical four-week cycle, company  140 &#39;s accounting software package electronically sends wage verification data to the service provider  120  via an on-site or online interface. In Step  9 , the service provider  120  sends an electronic reconciliation report back to company  140  indicating deposits made.  
         [0025]     In Step  10 , the service provider  120 &#39;s financial institution  130  sorts by routing number, and extracts and deposits monies into its own customers&#39; accounts (i.e., subscribers who are also customers of the service provider&#39;s financial institution). In Step  11 , financial institution  130  electronically sends a transaction report confirming the previous step to subscribers  110  who are also its customers. Financial institution  130  electronically forwards the rest of the funds to the Federal Reserve Bank  140  in Step  12 .  
         [0026]     In Step  13 , the Federal Reserve Bank  140  sorts the routing numbers and electronically distributes the rest of the deposits appropriately. In Step  14 , all financial institutions  150 ,  160  and  170  send deposit reports to their respective customers. In Step  15 , subscriber  110  may access his or her funds at his or her financial institution  150 ,  160 , or  170 , at an ATM  180 , on line, or by check  190 , or check card  200 .  
         [0027]     In Step  16 , service provider  120 &#39;s financial institution  130  electronically sends a transaction report to service provider  120 . In Step  17 , service provider  120  reconciles the transaction report and then forwards a copy to company  140 . In Step  18 , subscriber  110  may access at any time his or her records on service provider  120 &#39;s website, or via phone keypads for direct electronic access to payment information. Thus, funds first go from company  140  to service provider  120 , then to subscriber  110 .  
         [0028]     Referring now to  FIG. 3 , therein is illustrated the second preferred form of the present invention during weeks 2 and 4 of its hypothetical four-week cycle. Company  140 &#39;s accounting and general ledger software package exports wage verification data which is then sent to the service provider  120  via on-site software or over the Internet (Step  7 A). In Step  7 B, company  140  transfers two weeks (or however many weeks since the last paycheck, including the current week, the service provider will have provided pay) of subscriber  110 &#39;s base net pay to service provider  120 &#39;s bank account. This repays service provider  120  for funds issued to date plus service charges, and enables service provider  120  to pay subscriber  110 &#39;s current week&#39;s pay.  
         [0029]     In Step  8 , the service provider  120  electronically initiates direct deposits from its own financial institution  130  into the accounts of all individual subscribers  110  who are due to receive intermediate funds that week, just as with the first preferred embodiment. However, in this second embodiment, the amount of funds a subscriber  110  is issued is based on how much the subscriber  110  earned during that week, how much the subscribe  110  earned on average during a past period of time, or some combination or variation thereof. When the subscriber  110  is to be paid by his company  140 , the amount owed to the service provider  120  (the amount of funds issued since the last paycheck as well as the service charges incurred in that time) is automatically transferred to the service provider  120  by a funds transfer of that amount from the company  140  to the service provider  120 . The subscriber  110  is paid that week by a funds transfer from the company  140  to the subscriber  110 , for the amount owed to subscriber  110  for that week less the transaction fee owed to the service provider  120  for that week, if applicable. Thus, funds first go from the service provider  120  to subscribe  110 , then from company  140  to the service provider  120 .  
         [0030]     As an alternative form of Step  8 , the second preferred embodiment may also include, or may use exclusively, the following payment method. In this case, the company  140  sends the appropriate amount of a subscriber  110 &#39;s paycheck (as determined in the contract signed by the subscriber  110  during his or her application to the service provider  120 ) directly to the service provider  120  (via direct deposit). The company  140  withholds tax as appropriate. Also, the company  140  may make appropriate post-tax deductions, such as for a 401K plan  900  or for supplemental income  950 , from the subscriber  110 &#39;s paycheck, or the service provider  120  may be designated to perform this task (also determined by the contract signed by the subscriber  110  during the application process). The service provider  120  then direct-deposits the remaining amount of the paycheck into the subscriber  100 &#39;s account, less the amount required for reimbursement to the service provider  120  for funds disbursed and service charges.  
         [0031]     In Step  9 , service provider  120  sends an electronic reconciliation report back to company  140  indicating that deposits were made. In Step  10 , service provider  120 &#39;s financial institution  130  sorts deposits by routing number, and extracts and deposits monies into its customers&#39; accounts.  
         [0032]     In Step  11 , service provider  120 &#39;s financial institution  130  electronically sends a transaction report to its customers who are also subscribers  110 . In Step  12 , service provider  120 &#39;s financial institution  130  electronically forwards the rest of the deposit monies to the Federal Reserve Bank  140 .  
         [0033]     In Step  13  Federal Reserve Bank  140  sorts the balance of deposit monies by routing numbers and electronically distributes the rest of the deposits appropriately. In Step  14 , all financial institutions  150 ,  160 , and  170  send a deposit report to their respective customers.  
         [0034]     In Step  15 , it is illustrated that a subscriber  110  may access his funds at his financial institution  150 ,  160 , or  170 , by ATM  180 , on line, or by check  190 , or check card  200 .  
         [0035]     In Step  16 , service provider  120 &#39;s financial institution  130  electronically sends a transaction report to service provider  120  (Step  16 ). In Step  17 , service provider  120  reconciles the transaction report and then forwards a copy to company  140 . In Step  18 , it is shown that subscriber  110  may access his or her records on service provider  120 &#39;s website  220 , or via telephone interface  210 .  
         [0036]     Referring now to  FIG. 4 , a third preferred embodiment of the present invention is illustrated. In this third preferred embodiment, a company  140  optionally endorses the service, but individuals subscribe to the service directly. Payroll data is not published to the service provider  120 . Instead, payments are based entirely on amounts established by contract when each subscriber  110  joins, and are sent directly from the company  140  to the service provider  120 . The company  140  sends either (1) all of the subscriber  110 &#39;s net base pay after withholding taxes, or (2) all of the subscriber  110 &#39;s net pay less any post-tax deductions such as for a 401K plan  900  or for supplemental insurance  950 . In addition, where the company  140  sends all of the subscriber  110 &#39;s net base pay to the service provider  120 , the subscriber  110  optionally may designate contractually that the service provider  120  is to pay other deductions as appropriate from these funds. The service provider  120  is reimbursed as in either of the alternative reimbursement methods utilized in the second preferred embodiment.  
         [0037]     As seen in  FIG. 4 , in Step  1 , the service provider  120  optionally meets with company  140  and company  140  optionally agrees to allow the service provider  120  to introduce company  140 &#39;s employees to the service.  
         [0038]     In Step  2 , the service provider  120  and its financial institution  130 , working together, optionally introduce the service to employees of company  140 . In Step  3 , each employee becoming a subscriber  110  will execute two direct deposit forms and one agreement form provided by the service provider  120  and its financial institution  130 . The incoming direct deposit form will facilitate a weekly payment from the service provider  120 &#39;s financial institution  130  account to the subscriber  110 &#39;s account at the financial institution of his or her choice. The outgoing direct deposit form will authorize a subscriber  110 &#39;s company  140  to directly deposit the subscriber  110 &#39;s paycheck into the service provider  120 &#39;s account.  
         [0039]     In Step  4 , direct deposit PreNotes are sent to test accuracy. Then, in Step  5 , the service provider  120  deposits designated base net pay into subscriber  110 &#39;s account. In Step  6 , on scheduled paydays, company  140  pays its employees (subscribers  110 ) via direct deposit into the service provider  120 &#39;s account. Then, in Step  7 , the service provider  120  deducts the amount it is owed for any service charges and previous payments to subscriber  110 , and direct deposits the balance into subscriber  110 &#39;s bank account.  
         [0040]     Alternatively, the payment process may proceed as follows. In Step  3 , each subscriber  110  will execute two direct deposit forms and one agreement form provided by the service provider  120  and its financial institution  130 . The incoming direct deposit form will facilitate a weekly payment from the service provider  120 &#39;s financial institution account to the subscriber  110 &#39;s financial institution account at the financial institution of his or her choice, just as in the first option. In Option 1, the company  140  sends the appropriate amount of a subscriber  110 &#39;s paycheck (as determined in the contract signed by the subscriber  110  during his or her application to the service provider  120 ) directly to the service provider  120  (via direct deposit). The company  140  withholds tax as appropriate. Also, the company  140  may make appropriate post-tax deductions, such as for a 401K plan  900  or for supplemental insurance  950  (outlined as Option 3), from the subscriber  110 &#39;s paycheck, or the service provider  120  may be designated to perform this task (also determined by the contract signed by the subscriber  110  during the application process). The service provider  120  then direct-deposits the remaining amount of the paycheck into the subscriber  110 &#39;s account, less the amount required for reimbursement to the service provider  120  for funds disbursed and service charges. In Option 2, on scheduled paydays, company  140  pays its subscriber  110  via direct deposit to the subscriber  110 &#39;s own financial institution account. An electronic transfer or ACH automatically debits the individual subscriber  110 &#39;s financial institution account and sends repayment funds in the amount of previous payments to the individual subscriber  110 , plus service charges, back to the service provider  120 &#39;s account, leaving the remainder in the individual subscriber  110 &#39;s bank account.  
         [0041]     Referring now to  FIG. 5 , herein is illustrated a user interface/subscriber application  300  according to the present invention. The interface  300  includes a subscriber identification window  310  and legal agreement window  320 . Subscriber identification window  310  includes areas in which to indicate a subscriber&#39;s name, address, phone, e-mail, date of birth, and the last four digits of his or her Social Security number. The computer monitor also displays a conventional, movable screen cursor (not shown), the position of which is manually controlled by the user through movement of the computer mouse, entry by key pad, or other similar device, and the operation of which is controlled by the computer operating system.  
         [0042]     As shown in  FIG. 6 , financial data for a subscriber may be entered on the second screen, “Financial Data”  330 . The financial data interface  330  includes subscriber&#39;s name window  340 , current base net pay window  350 , pay date window  360 , indicators for pay method and frequency  370 , and deposit information window  380 . As may be seen, deposit information  380  provides for identification of up to three financial institution accounts. However, the direct deposit received from subscriber  110 &#39;s company  140  must be deposited into the account listed as a primary account in order for service provider  120  to properly debit the amount owed.  
         [0043]     Referring now to  FIG. 7 , the subscriber application form includes bubbles  390  to indicate whether the subscriber  110 &#39;s income comes from U.S. military, social security, or full time employment sources.  FIG. 8  illustrates the subscriber application user interface  300  requesting U.S. military information  400  regarding subscriber  110 . This page is to be verified by a military payroll department. If not verified, as seen on  FIG. 9 , a reason must be provided. Otherwise, as seen in  FIG. 10 , a message indicating a negative verification status is received.  
         [0044]      FIG. 11  illustrates a positive verification status response, indicating that a subscriber  110  has been approved and that a first weekly deposit will be made on a certain date, and that deposits will be in a certain amount specified. This window advises subscriber  110  that it is his or her responsibility to inform service provider  120  of any changes to name, address, phone number, employment or benefit status, base net pay amount, financial institution name, and/or account numbers.  
         [0045]     Referring now to  FIG. 12 , the “Subscriber ID” window  410  is illustrated. The subscriber ID window  410  includes a log on name window  411 , a create password window  412 , and reenter password window  413 , a security question window  414 , an answer to security question window  415 , emergency contact window  416 , and cancel button  417  and send button  418 . Once the required information has been supplied in the related windows, the user then initiates an entry signal by conventionally clicking upon the computer mouse left click key.  
         [0046]     With reference to  FIG. 13  there is shown an “Inactivation Screen”  420  to permit a subscriber  110  to inactive his or her account. The appropriate information is supplied in the appropriate windows and the cancel or send button is employed. As seen in  FIG. 14 , subscriber  110  is then asked whether he or she is sure that terminating the account is desired. As seen in  FIG. 15 , the inactivate subscription window  421  confirms that membership was successfully cancelled, and the date of last deposit is confirmed.  
         [0047]     With reference now to  FIG. 16 , the “Reactivate Subscriber” screen  430  permits a subscriber  110  to reactivate his or her account. A reactivation fee is noted on screen  430 , and identifying information is requested. As seen on  FIG. 17 , the subscriber reactivation screen  440  provides for an update on personal information, including name, address, phone.  FIG. 18  shows the subscriber reactivation screen  441  requesting updated information for base net pay, pay dates, pay methods, pay frequency, and deposit information.  
         [0048]     With reference next to  FIG. 19 , there is shown a company application  500  requesting various information about subscriber  110 &#39;s company  140 . There are windows for industry, title, company name and address, company phone and e-mail, and for the creation of a user name, password, and security question. The legal agreement with the company  140  appears in window  321 .  
         [0049]      FIG. 20  shows “Subscriber Enrollment” screen  510 , with windows for company, employee, and subscriber identification numbers; subscriber name, address, phone, birth date, and hire date; and for determination of pay frequency and status.  
         [0050]      FIG. 21  shows “Subscriber Data” screen  520 , which provides for windows to enter various pay information, including pay method, pay frequency, pay period dates, current base net pay, and service charge. Moreover, financial institution window  385  is provided for the entry of information regarding routing numbers, account type, account number, percent of the base net pay, the amount of the weekly deposit, the year-to-date service charge, and the year-to-date deposits.  FIG. 22  shows the “Edit Subscriber Financial Data” screen  521 , wherein notifications of financial data may be entered.  FIG. 23  shows the “Inactivation/Termination” screen  530 , wherein subscriber  110  may inactivate or terminate his account; similarly,  FIG. 24  shows “Reactivation Screen”  540 , wherein identification information may be entered and a reactivation date selected.  
         [0051]     It should be understood that the present invention may be used in connection with a global computer network system interconnecting multiple remote users, each having a computer or workstation or with a central computer system having multiple video workstation monitors.  
         [0052]     It thus is seen that a new method of payment of salary and system for automating the salary payment process is now provided that has distinct advantages over the prior art. While the invention has been described in detail with particular reference to the preferred embodiments thereof, it should be understood that many modification, additions, and deletions, may be made thereto without departure from the spirit and scope of the invention as set forth in the following claims.