Abstract:
Data capture which occurs at the consumer end of an electronic bill pay transaction is assisted by machine readable information in a standardized format on an invoice where the machine readable information includes biller identification and a C-B account number and the information is readable at the consumer end without prior arrangements being made specifically between the consumer and the biller. The biller identification is either a universal biller reference number or sufficient information to allow manual identification and contact with the biller. The machine readable information is an optically-readable bar code, characters in a font designed for error-free character recognition by optical or magnetic means.

Description:
This application is a continuation of application Ser. No. 08/521,623, filed Aug. 31, 1995 now U.S. Pat. No. 6,438,527, which is a continuation-in-part of application Ser. No. 08/146,515, filed Nov. 1, 1993, issued as U.S. Pat. No. 5,465,206 on Nov. 7, 1995. 

   BACKGROUND OF THE INVENTION 
   The present invention relates to the field of electronic bill payment systems (“bill pay”) which allow a consumer to direct their bank, an agent of their bank, or a non-bank bill pay service bureau to pay amounts owed to merchants, service providers and other billers who bill consumers for amounts owed. 
   U.S. Pat. No. 5,465,206 issued to James J. Hilt et al. teaches a bill pay system in where each participating payee is assigned a biller reference number (“BRN”). That patent (“the Hilt Patent”) is commonly owned by the assignee of the present application and is incorporated by reference herein for all purposes. In the Hilt bill pay system, a consumer could make a payment to a biller without any prior payment arrangements required between the consumer and the biller, so long as the consumer knew the biller&#39;s BRN and the consumer&#39;s account number with the biller (C-B account number). Various electronic bill payment data entry methods are disclosed in Hilt, such as entry over a telephone link using voice recognition or using the keys of the telephone, or entry into a personal computer program which eventually transmits the bill payment instructions to the consumer&#39;s bank or the bank&#39;s agent. 
   In other prior art systems, a biller creates an invoice which includes a remittance stub and sends the invoice with a request that the consumer return the remittance stub with the consumer&#39;s check in payment of the invoice (“white mail”). Because billers can rely on receiving the remittance stubs back, billers will typically encode each remittance stub to assist with automatic data entry of billing information into an electronic billing system once the remittance stub and check are received. Thus, if the consumer returns the remittance stub, the biller does not have to rely on the consumer to correctly indicate the C-B account number. This system has worked well where billers actually do receive the remittance stub. However, in an electronic bill pay system, paper documents do not generally change hands. 
   Because paper documents do not change hands, billers must rely on the consumer for data capture of information from the invoice, which is generally less reliable than electronic (e.g., optically scanned) data capture from remittance stubs at the biller&#39;s site. In addition, where a consumer enters a C-B account number manually, the biller must still perform manual data entry. 
   One solution in the prior art for ensuring correct data entry by a consumer is the pick list. With a pick list, the consumer submits a list of payees with a BRN and a C-B account number for each payee. Of course, if the Hilt system is not used, more information than the BRN is required, such as the biller name, address&#39; telephone number, etc. The list of payees is then verified by the consumer&#39;s bank to ensure that the correct billers have been identified and that the C-B account numbers listed by the consumer are the account numbers for that consumer. Once this is done, the consumer is supplied with a pick list of billers. If the billers on the pick list are numbered, the consumer then need only enter the pick list entry number in lieu of data capture of the biller identification and C-B account number. The pick list is either a paper document, as might be used for telephone data entry systems, or an electronic document, as might be used for personal computer based bill payment systems. 
   The problem with this approach is that the ability to connect a particular consumer with a particular biller without any prior connection is lost, since the consumer must have had the biller previously verified and placed on the pick list. Thus, a consumer cannot decide to pay a new biller and make a payment without the intervening delay for verification. 
   The pick list approach is also undesirable because C-B account numbers can change without any awareness of the consumer. For example, in the utility industry, C-B account numbers encode for a meter reading route. The meter reading routes are periodically updated, as routes are optimized and as new housing and commercial developments arise to alter the optimization of routes and route distribution. Typically, a meter reading route for a given C-B account changes once each five years. If pick lists are used, or the consumer relies on other means of prestoring the C-B account number, the transaction will be in error once each five years. While this is not a problem for an individual error, if the error costs $25 to fix between the consumer&#39;s time, the biller&#39;s time and any customer service time and expense, the average cost per transaction is about 41 cents since the error will occur in one out of each sixty transactions (assuming monthly billing). 
   U.S. Pat. No. 5,283,829 (issued to Anderson) discloses a bill payment system where a bill is printed with an approval code. The approval code includes error coding and maps to the C-B account number and the particular bill (i.e., it maps to a particular month if the bills are monthly). The mapping from the approval code to the C-B account number and the month are provided by a table maintained by the biller. While this system is useful for a single biller and where current bills are paid in full, it does not include a biller identifier and therefore is not useful for a global system. Furthermore, there is no provision for automatic data capture of the data provided. A consumer must enter the number as printed on the bill, and entry errors are expected, requiring the consumer to reenter the approval code. 
   Therefore, what is needed is an improved method and apparatus for correctly capturing data from an invoice including data specifying biller identification and a C-B account number. 
   SUMMARY OF THE INVENTION 
   An improved bill paying system is provided by virtue of the present invention. 
   In one embodiment of a bill pay system according to the present invention, participating consumers pay bills electronically to participating billers using a bill payment network (hereinafter “the payment network”) and the data capture which occurs at the consumer end of the electronic transaction is assisted by machine readable information in a standardized format where the machine readable information includes biller identification and a C-B account number and the information is readable at the consumer end without prior arrangements being made specifically between the consumer and the biller. In a specific embodiment, the biller identification is supplied by a BRN such as that taught in the Hilt patent. 
   The machine readable information can be read from a biller&#39;s invoice in a number of ways, depending on how it is present on the invoice. For example, the biller could print the information using optically-readable an barcode, using a font designed for error-free optical character recognition, or using magnetically-readable characters (MICR). Alternatively, a magnetic strip could be provided on the invoice. 
   In another variation, the machine readable information includes a payment due date and an amount due. 
   The information from the invoice is read, in various embodiments, by a smart card, a specially adapted telephone, a personal computer, or the like. Regardless of the exact form of hardware, the hardware includes a means for reading the machine readable information. For example, if a smart card is used, the smart card would include a reading device. 
   If a smart card or other portable device, such as a “smart wallet”, is used to capture the billing data, the portable device might be provided to an automatic teller machine (“ATM”) for communication of billing instructions to the consumer&#39;s bank. A smart card or smart wallet would also serve the additional function of being a means to verify the authorization to issue bill payment instructions much like a credit card currently serves an authorization function. If the smart card or smart wallet also had built in communication capabilities, such as a modem and a telephone connection or a wireless modem, it would send payment instructions itself. 
   A further understanding of the nature and advantages of the inventions herein may be realized by reference to the remaining portions of the specification and the attached drawings. 

   
     BRIEF DESCRIPTION OF THE DRAWINGS 
       FIG. 1  is a block diagram of a prior art bill payment system with data capture at a biller terminal. 
       FIG. 2  is a block diagram of a bill payment system with data capture at a consumer terminal according to an embodiment of the present invention. 
       FIG. 3  is a schematic diagram of a printed bill used with the present invention. 
       FIGS. 4(A) ,  4 (B) and  4 (C) show several embodiments of a data capture means. 
       FIG. 5  is a flow chart of a bill payment process according to the present invention. 
   

   DESCRIPTION OF THE PREFERRED EMBODIMENTS 
     FIG. 1  shows a bill payment system  100  which is commonly used today to pay bills, where a consumer C pays a bill to a biller B when B sends a bill  102  to C. It should be understood that the term “consumer” is used here as an example of a bill payor, and the invention is not limited to use where the bill payor is a consumer. For example, the invention works equally well where the payor is a reseller. The actual payment of the bill occurs when a consumer bank (C bank)  104  transfers funds from an account maintained for C to a biller bank (B bank)  106 , who then credits the funds to an account held for B. The other elements of system  100  are: a consumer terminal  108 , which serves as the point of transit for a bill payment  110  into a postal system  112 , a biller terminal  114 , which is the destination of bill payment  110 , a billing database  116  and a bill generator  118 . 
   The bill payment process begins when biller B generates a bill for consumer C using billing database  116  and bill generator  118 . The generated bill  102  is typically in the form of a printed invoice with a remittance stub. Bill  102  is sent to consumer C, who then encloses a check  122  drawn on the account at C bank with the remittance stub, and submits this bill payment  110  to biller B by post. Depending on biller B&#39;s instructions, the bill payment will go to either biller B or to an agent of biller B, such as a lockbox. When a bill payment is received, the necessary billing data is captured (payment amount, C-B account number, etc.) and check  122  is sent to B bank  106  for presentment, typically via a clearinghouse  120 , to C bank  104 . 
   The ability of biller terminal  114  to accurately capture billing data from the bill is generally the result of applying machine-readable encoding of the C-B account number onto the remittance stubs generated by bill generator  118 . Since bill generator  118  and biller terminal  114  are both controlled by biller B, it is a simple matter to arrange for a readable encoding. Without the remittance stub, however, the bill payment becomes an exception item, which is many times more expensive to process than a bill payment with a remittance stub. With current electronic payment systems, it is assumed that the paper remittance stub is not presented to the biller. 
     FIG. 2  shows an electronic bill pay system  200  where the remittance stub is not used. In system  200 , biller B sends a bill  202  to consumer C. Consumer C uses a consumer terminal  204  to capture the data needed from bill  202  to generate a bill pay order  206 . The data capture is a replacement for the prior art processes of addressing an envelope to the biller and including the remittance stub in the envelope, i.e., bill pay order  206  includes routing instructions to biller B and includes an indication of the C-B account number for the bill payment. 
   Bill pay order  206  is transmitted to an electronic payment network  208 , which effects the transfer of funds from a consumer bank (C bank)  212  to a biller bank (B bank)  214 , while providing accounts receivable (A/R) data  210  to a biller terminal  216 , which reads the captured C-B account number from A/R data  210  and applies a credit to consumer C&#39;s account in billing database  218 . Bills are generated by biller B using billing database  218  and bill generator  220 . In order to provide backward compatibility, manual payments  222  can also be applied to billing database  218 . 
     FIG. 3  is a schematic view of a remittance stub  300 . Stub  300  is shown with an indication of consumer C, biller B, an amount owed and a due date. Some of this information might be encoded in a legacy encoding region  302 , which is used by biller B when stub  300  is returned with a white mail payment. This legacy encoding region is generally only decodable by biller B, and in any case, no other entity has a use for it. 
   Stub  300  also includes a universal encoding region  304 , which encodes data to be captured by consumer C which identifies biller B and the C-B account number. In the stub shown in  FIG. 3 , universal encoding region  304  also encodes for an amount due and a due date. Universal encoding region  304  might also include error correction and detection data  306 . Because biller B generates bill  202 , which includes stub  300 , biller B is free to change the C-B account number as needed for its internal operations. 
   The above descriptions of  FIGS. 2 and 3  describe the elements of a bill payment system in which data capture is performed by the consumer.  FIG. 4  shows details of particular data capture means and  FIG. 5  is a flow chart of a process for bill payment using the described system. 
   In  FIG. 4 , three embodiments of a universal data capture means are shown.  FIG. 4(   a ) shows an optical reader  400  into which the consumer slides stub  300  for data capture. Alternatively, a hand-held reader, barcode wand, flatbed scanner or facsimile engine could be used.  FIG. 4(   b ) shows a magnetic strip reader  402  which reads a magnetically encoded strip  404  on stub  300 . Alternatively, strip  404  could be replaced with MICR encoded data. Whether optical reader  400  or magnetic strip reader  402  are used, the captured data is transmitted to consumer terminal  204  for validation. Preferably, consumer terminal  204  provides an indication of validity and prompts consumer C to rescan universal encoding region  304  if a scanning error occurred. 
     FIG. 4(   c ) shows an embodiment of a universal capture means provided by a smart card.  FIG. 4(   c ) shows a smart card  408  which includes a capability to read universal encoding region  304  of bill  300 . Smart card  408  is shown with a VISA logo  406 , a liquid crystal display  410  and an array of electrical interface pins  412 . To use smart card  408 , Consumer C simply scans each of the bills to be paid and that information is stored internally to smart card  408 . The information is downloaded from smart card  408  in a variety of ways. If the smart card is provided with other data entry means, such as an external key pad or a key pad built onto smart card  408 , Consumer C can create the entire bill pay order using smart card  408 . For example, Consumer C could scan a bill, enter a payment amount (if different from the amount due) and have a bill pay order generated within smart card  408 . That bill pay order can then be transmitted to the payment network via electrical pins  412 . Alternatively, smart card  408  is provided with an infra-red output. Electrical pins  412  might be adapted to connect to an RJ11 telephone adaptor simply a speaker output which emits DTMF tones, or a serial link to a personal computer as to a device (wallet) with a wireless modem. 
   Another application for smart card  408  is for use in combination with ATMs. In this application, a consumer scans a number of bills, takes smart card  408  to an ATM and inserts smart card  408  therein. Using the key pad of the ATM, the consumer enters any additional information, such as a source of funds, a payment amount other than the current amount due or an indication that the current amount due is equal to the payment amount, the payment date if different than the bill due date or an indication that the bill is to be paid on the due date, etc. This information is used by the ATM in combination with the data obtained by smart card  408  off the bills to generate properly validated bill pay orders. The ATM then transmits the bill pay orders to the payment network. 
   The flow chart of  FIG. 5  will now be described. The blocks of the flow chart are labelled S 1  through S 8 , and are followed in numerical order unless otherwise indicated. 
   The first step (step S 1 ) is for biller B to send consumer C a bill encoded with the universal encoding. Because it is universal encoding, any consumer can read, capture and validate it without prior contact or arrangement with biller B. In a system where each biller is uniquely identified by a biller reference number (BRN), it would suffice to encode the BRN as the biller identification field. Where the BRN is not used, sufficient biller data to uniquely identify biller B is encoded, such as the biller name, address, telephone number, etc. Preferably, the BRN is used, since less encoding is required and an automatic match-up of the biller identification field with a biller in network  208  is more likely. 
   When consumer C receives the bill and is ready to pay it, consumer C scans the bill electronically to capture the biller ID field and the C-B account number field (step S 2 ). This information is transmitted from the scanning device to a computer (typically an appropriately programmed microprocessor) for processing. This could either be a personal computer controlled by consumer C or a processor built into the reader. For example, the consumer terminal might be an integrated telephone with a display screen, alphanumeric entry keys, an internal microprocessor and a barcode wand or reader. 
   The captured information is validated (S 3 ), and if found invalid, the consumer is prompted (S 4 ) to rescan the bill, the bill is rescanned (S 5 ) and then rechecked (S 3 ). The data is validated at several levels. The first level is to detect whether the expected number of bits or characters were read. At a second level, the error-correction and detection data included in the universal encoding region is used to detect and correct, if necessary, reading errors. At a third level, the data is compared to previously collected data from an earlier bill and the data is validated using tables of valid biller ID&#39;s and C-B account number ranges obtained from payment network  208 . 
   Next (S 6 ), consumer C enters a payment amount, a payment date and an identification of the source of the funds. Of course, consumer C could rely on defaults, where the default payment amount is the scanned amount due, the payment date is the scanned due date and the source of funds is a preset bank account at a preset consumer bank. The preset information might be stored in the consumer&#39;s personal computer, screen telephone or smart card. 
   The information obtained in step S 6  is used to generate an electronic bill pay order (S 7 ), which is sent over payment network  208  in lieu of sending a paper check with the paper remittance stub to biller B. Once the bill pay order is electronically transmitted (S 8 ) to payment network  208 , payment network  208  handles all the other details of transferring the funds to biller B&#39;s account, sending A/R data  210  to biller B for credit to consumer C&#39;s account with biller B, etc. 
   The present invention has now been described. In summary, one application of the system is to electronically capture biller identification and C-B account number identification at a consumer end of an electronic bill payment system to ensure that bill pay orders are accurate without relying on correct data entry by the consumer. This is done without prior contact between the specific consumer paying the bill and the specific send of the bill. 
   The above description is illustrative and not restrictive. Many variations of the invention will become apparent to those of skill in the art upon review of this disclosure. For example, the bill sent to the consumer need not be in paper form, but could be electronic, such as via electronic mail. In this alternative embodiment, the universal encoding region would be represented by a standardized section of the bill from which the biller ID and C-B account number are capturable. The scope of the invention should, therefore, be determined not with reference to the above description, but instead should be determined with reference to the appended claims along with their full scope of equivalents.