Patent Publication Number: US-2004049456-A1

Title: Payment processing with selective crediting

Description:
FIELD OF THE INVENTION  
       [0001] The present invention relates to electronic commerce and more particularly to electronic payment services.  
       BACKGROUND OF THE INVENTION  
       [0002] It has been common for many years for consumers to pay monthly bills by way of a personal check written by the consumer and sent by mail to the entity from which the bill or invoice was received. Consumers have used other ways to pay bills, including personally visiting the billing entity to make a cash payment. In today&#39;s economy, it is not unusual for a consumer to have several regular monthly invoices to pay. Writing individual checks to pay each invoice can be time-consuming and costly due to postage and other related expenses.  
       [0003] Electronic payment systems have become common. Electronic payment systems make payments on behalf of consumers, thus relieving consumers of the monthly burden of bill payment. Electronic payment systems also make other types of payments on behalf of consumers. Typically, a consumer submits a request to a payment service for the service to make a payment to a payee on behalf of the consumer. The payment request includes, at a minimum, information identifying the payee and an amount of the payment. The payment service receives the payment request, perhaps via telephone, the Internet, or other computing network.  
       [0004] Once a payment request is received, the service provider processes the payment request to complete the payment on behalf of the consumer. This often includes determining a form of payment. Forms of payment include paper and electronic. In paper payment, the service provider prepares either a check or draft and delivers such to the payee. The check is drawn on an~account belonging to the service provider. The draft is drawn on an account belonging to the consumer. In payment by check, the service provider must obtain funds from the consumer. In payment by draft, the service provider has no need to obtain funds from the consumer, as no service provider funds are utilized completing the payment to the payee.  
       [0005] In electronic payment, the service provider directs that funds be electronically credited to a demand deposit account belonging to the payee and that funds be electronically debited from a demand deposit account belonging to the consumer. Typically, funds are electronically credited to the payee&#39;s account from an account belonging to the service provider, and funds are electronically debited to the service provider&#39;s account from the consumer&#39;s account. Thus, in both payment by check and electronic payment, the service provider is placed in a position of financial risk. That is, the service provider may not be able to obtain funds from the consumer. This gives rise to the choice of form of payment by the service provider. The choice of payment is often based upon the service provider processing one or more variables associated with a payment request. This processing is known as risk processing or risk management.  
       [0006] Electronic movement of funds is performed by networks linking financial institutes at which the accounts are maintained. The Federal Reserve Automated Clearing House (ACH) Network is an example of one network that provides switch and settlement functionality between financial institutions. In addition to the Federal Reserve, private clearing houses also provide switch and settlement functionality between financial institutions. One such private clearing house, the New York Clearing House (NYCH), has proposed services beyond those of switch and settlement. In particular, a Universal Payment Identification Code (UPIC), which is a universal deposit account identifier associated with a single merchant bank account, has been proposed. The NYCH operates the Electronic Payments Network (EPN) for batch electronic transaction support, and the Clearing House Inter-Bank Payments System (CHIPS) for real-time electronic transaction support, particularly international transactions. Today, the EPN is utilized to process UPIC-based transactions. It is expected that in the future CHIPS will also process UPIC-based transactions.  
       [0007] Some key features of the UPIC are that a same UPIC is always associated with a single deposit account belonging to a merchant. That is, a merchant&#39;s UPIC is never deleted or re-used with more than one deposit account. Further, a single merchant having multiple deposit accounts can have multiple UPICs, each one associated with a different one of the deposit accounts. As an added benefit, a UPIC masks the real identity of a merchant&#39;s bank account. A UPIC, however, can only be used for credit transactions (deposits to merchants).  
       [0008] A Universal Routing and Transit number (URT) and UPIC are used in place of a bank routing and transit number (RTN) and demand deposit account number (DDA) in electronic transactions. That is, the URT, which is up to eight characters/digits in length, identifies the NYCH system, while the UPIC, which is up to seventeen characters/digits in length, identifies a bank or other financial institution at which a merchant&#39;s account is located as well as the merchant&#39;s account.  
       [0009] As shown in FIG. 7, a merchant  700  having a UPIC typically solicits a customer  705  to submit payments to merchant  700  using URT/UPIC information. This solicitation is typically through traditional mechanisms for reaching out to customers, whether that be U.S. mail, e-mail, or another avenue. It should be noted that the solicitation assumes the customer  705  can use an electronic payment system  710  to input the URT and UPIC values to remit payment to the merchant  700 . It should also be noted that merchant  700  is not necessarily identifying a particular electronic payment system for customer  705  to utilize. The solicitation typically specifically includes the URT identifier and the merchant&#39;s UPIC identifier.  
       [0010] As also shown in FIG. 7, to make payments utilizing URT/UPIC information, customer  705  specifically supplies the full URT and UPIC values to an electronic payment system. The necessity of customer  705  supplying URT and UPIC values has several disadvantages. Because of UPIC and URT length and number of digit-character combinations possible, it is very easy for these values to be incorrectly supplied to an electronic payment system by customer  705 . It is known from experience that customers often make mistakes in supplying similar data, such as account numbers. Additionally, the time and effort required to supply URT and UPIC values is in and of itself a deterrent to customer  705  supplying this information to the electronic payment system  710 . Many customers simply do not wish to take the time or expend the effort to supply this information to their electronic payment system. Thus, adoption of UPIC&#39;s as a payment option has been slow to occur. Accordingly, a need exists for a technique to facilitate the use of Universal Payment Identification Codes.  
       [0011] Concurrent with or subsequent to customer  705  supplying URT/UPIC information to the electronic payment system  710 , customer  705  submits a payment request to pay merchant  700 . The electronic payment system  710  originates an ACH transaction  715 . The URT number is placed in the transaction in lieu of a financial institution&#39;s routing number, and the UPIC number is placed in the transaction in lieu of the customer&#39;s account number. The transaction is either then routed to the Federal Reserve System  720  or EPN  725 , depending upon an electronic payment system  710  choice or association. When a URT/UPIC transaction is routed directly to the EPN  725 , the EPN  725  performs settlement with the merchant  700 . Introduced above, in the future it is expected that such a transaction could be directed to the CHIPS network.  
       [0012] When a URT/UPIC transaction is routed to the Federal Reserve System  720  the transaction is recognized as a URT/UPIC transaction by the Federal Reserve System  720  and is propagated to the EPN  725 . The EPN  725  then, as above, performs settlement with the merchant  700 .  
       [0013] It should be noted that at present the EPN  725  is only able to provide limited remittance advice data to merchant  700 . No provision for rich remittance advice data has been conceived of yet. Accordingly, a need exists for a technique for delivery of rich remittance data when a payment is made utilizing URT/UPIC information.  
       OBJECTS OF THE INVENTION  
       [0014] It is an object of the present invention to provide a technique to increase the usage of URT/UPIC-based payments.  
       [0015] It is also an object of the present invention to provide a technique to deliver detailed remittance information when a payment is made utilizing URT/UPIC identifiers.  
       [0016] The above-stated objects, as well as other objects, features, and advantages, of the present invention will become readily apparent from the following detailed description which is to be read in conjunction with the appended drawings.  
       SUMMARY OF THE INVENTION  
       [0017] In accordance with the present invention, a method and a system for making a payment on behalf of a payor are provided. A payment made on behalf of a payor is a payment in which a payor requests another entity to make a payment for the payor. The payment can be any type of payment, including, but not limited to, payment of a bill issued by a payee, a point-of-sale payment, a payment for goods or services purchased via a network interface, and a person-to-person payment. A bill can include a paper bill physically delivered to a payor, as well as an electronic bill delivered to a payor via a network.  
       [0018] The system includes a communications interface and a processor. The communications interface is configured to receive, via one or more networks, information associated with electronic commerce, as will be described below. The one or more networks can include, but is not limited to, the Internet, a local area network, a wide area network, and the public switched telephone network, as well as any other network capable of transmitting information. The processor could be any type of processor capable of functioning to implement the method as described herein, including, but not limited to, a processor as found in a typical personal computer, mainframe computer, server-type computer, or any other type computing device. According to certain aspects of the present invention, the system also includes a memory configured to store information associated with electronic commerce, as will be discussed further below. The memory could include, but is not limited to, hard disk, floppy disk, and optical disk storage. Further, the memory could be multiple memories, either configured to operate independently, or in concert.  
       [0019] A request to make a payment to a payee on behalf of a payor is received. The request could be received directly from the payor, or could be received from an entity representing the payor, such as a Web portal, financial institution, or other entity, including the payee. The payor, as well as the payee, could be an individual, a business, or organization.  
       [0020] The received request is processed to select a mode of electronically crediting the payee. In an electronic credit funds are moved without the need for paper instructions. An electronic credit could be made via the Federal Reserve Automated Clearinghouse Network, via another financial institution network, or via a remittance network, as well as via any other mode of moving funds which does not require paper instructions. Thus, a choice between multiple modes of electronically crediting the payee is made.  
       [0021] An electronic credit is directed to the payee according to the selected mode. Thus in accordance with this method and system, a payor does not deliver cash, negotiable instruments, or paper payment instructions to a payee. Rather, a third party completes funds delivery to the payee on behalf of the payor without the need for physical delivery of cash, negotiable instruments, or paper payment instructions.  
       [0022] A debit from a deposit account of the payee is also directed. A deposit account could be a checking account, a savings account, a money market account, or any other type of deposit account. The debit could be an electronic debit or a debit based upon paper instructions. Also, the debit could be directed prior to directing the credit to the payee, subsequent to directing the credit to the payee, or concurrent with directing the payment to the payee. Thus, the method and system for making a payment on behalf of a payor includes selecting a mode of electronic credit to the payee, directing the selected mode of electronic credit to the payee, and debiting a deposit account belonging to the payor.  
       [0023] According to an aspect of this method and system, the selected mode of electronically crediting the payee is based upon one of a deposit account number of the payee deposit account, an account identifier associated with~the payee deposit account other than the deposit account number, and a remittance network identifier associated with the payee. A deposit account number is an identifier assigned to the payee deposit account by a financial institution at which the deposit account is maintained. The account identifier is not a deposit account number. The account identifier could be any information which identifies the deposit account other than the deposit account number itself. The remittance network identifier identifies the payee to a remittance network. A remittance network is a network over which payments and/or data associated with a payment move to the payee. Thus, the electronic credit is directed to the payee utilizing either the deposit account number, the account identifier, or the remittance network identifier.  
       [0024] According to a further aspect of the method and system for making a payment on behalf of a payor, the account identifier is a Universal Payment Identification Code, known as a UPIC. The UPIC identifies the payee&#39;s deposit account and serves as a basis for electronic credits made to the payee&#39;s deposit account.  
       [0025] In another further aspect of the method and system for making payment on behalf of the payor, the payor does not know the account identifier.  
       [0026] According to a still further aspect of the method and system, if the selected mode of electronic crediting is based upon the deposit account number the electronic credit is directed to the deposit account. That is, funds are electronically transferred to the payee&#39;s deposit account. Also, if the electronic crediting is based upon the deposit account number, directing the electronic credit to the payee deposit account includes constructing an electronic transaction which includes the deposit account number but not either of the account identifier or the remittance network identifier. Thus, in electronic credits based upon the deposit account number the account identifier and the remittance network identifier are not utilized.  
       [0027] Also, if the selected mode of electronic crediting is based upon the account identifier the electronic credit is directed to the deposit account associated with, but masked by, the account identifier. And, if the electronic crediting is based upon the account identifier, directing the electronic credit to the payee deposit account includes constructing an electronic transaction which includes the account identifier but not either of the deposit account number or the remittance network identifier. In electronic credits based upon the account identifier the deposit account number and the remittance network identifier are not utilized.  
       [0028] And, if the selected mode of electronic crediting is based upon the remittance network identifier, directing the electronic credit to the payee includes constructing an electronic transaction which includes the remittance network identifier but not either of the deposit account number or the account identifier. In electronic credits based upon the remittance network identifier the deposit account number and the account identifier are not utilized. It should be noted that in payments based upon the remittance network identifier, the electronic credit could be directly to the payee&#39;s deposit account, or could be directed elsewhere, such as another type of account.  
       [0029] According to yet another aspect of the method and system, the account identifier is not assigned by the financial institution at which the account is maintained or an entity receiving the request, but by another entity.  
       [0030] In an especially beneficial aspect of the method and system, selecting the mode of electronic crediting includes accessing one or more stored rules. The accessed one or more rules are utilized in making the selection. These one or more rules could be rules of the entity making the selection, could be rules received from the payee, or could be rules received from the payor. The one or more rules could require processing historical payment data, could require processing information associated with the payment at hand, could require processing information associated with the payor&#39;s identity, or could require processing information associated with the payee&#39;s identity. Also, the rules could require the processing of other types of information other than, or in addition to, the types of information described immediately above.  
       [0031] According to still another aspect of the method and system, the received payment request includes a payment amount. The payment amount is compared to a predetermined threshold to select the mode of electronic crediting. Thus, the amount of the payment request at least in part dictates the selection of the mode of electronic crediting.  
       [0032] According to yet another aspect of the method and system for making a payment on behalf of a payor, remittance advice is related to the payment. Remittance advice, also known as remittance information, is information such as a payment amount, information identifying a payor, and information indicating apportionment of a total payment amount from a payor across different line items or sub-accounts. However, remittance information can include other information. At least one of three factors associated with the remittance information is determined and the mode of electronic crediting is selected based at least in part upon the determination. The first of the three factors is a volume of the remittance advice. That is, a total amount of remittance advice associated with the payment could be determined. The second factor is a type of the remittance information. That is, the information conveyed by the remittance advice could be determined. The third factor is a format of the remittance advice. That is, the structure of the information conveyed by the remittance advice could be determined. No matter which of the three factors, or which combination of the three factors, are determined, the remittance advice associated with the payment at least in part dictates the selection of the mode of electronic crediting according to this aspect.  
       [0033] According to yet another aspect of the method and system, a mode of remittance advice delivery is selected. That is, multiple modes of remittance advice delivery is available, and one of the modes is chosen. The remittance advice is delivered to the payee in accordance with the selected mode of delivery. Especially beneficial, the selected mode of remittance advice delivery does not depend upon the selected mode of electronic crediting. That is, the selection of the mode of electronic crediting does not affect the selection of the mode of remittance advice delivery, and the selection of the mode of remittance advice delivery does not affect the selection of the mode of electronic crediting. The mode of electronic crediting can be completely independent of the mode of remittance advice delivery.  
       [0034] In a further aspect of the method and system, the selected mode of remittance advice delivery is delivery via one of the Federal Reserve&#39;s Clearinghouse Network, any other clearinghouse network, a remittance network, or directly to the payee from an entity receiving the request.  
       [0035] According to another further aspect, the selection of the mode of remittance advice delivery is based upon at least one of the factors of volume, type, and format of the remittance advice.  
       [0036] In still another further aspect of the method and system, selecting the mode of remittance advice delivery includes accessing one or more stored rules. The accessed one or more rules are utilized in making the selection of mode of remittance advice delivery. These one or more rules could be rules of the entity making the selection, could be rules received from the payee, or could be rules received from the payor. The one or more rules could require processing historical payment data, could require processing information associated with the payment at hand, could require processing information associated with the payor&#39;s identity, could require processing information associated with the payee&#39;s identity. Also, the rules could require the processing of other types of information.  
       [0037] Also in accordance with the present invention, a database for storing information identifying payees for receipt of electronic payment is provided. A database is a collection of information stored such that related information is stored in association with other related information. The information stored in the database of the present invention pertains to payees which are capable of receiving electronic payment. A payee can be any individual, business, or other organization. In electronic payment, funds are credited to a payee without the need for paper instructions.  
       [0038] The database includes a payee identifier identifying a payee. The payee identifier could be any information which identifies a payee. The payee identifying information could be public information, such as a name, address, or telephone number, in addition to other publicly known payee identifying information. The payee identifying information could also be information other than publicly known information, such as an identifier assigned to the payee by an entity maintaining the database, or even another entity.  
       [0039] The database also includes first information identifying a first mode of electronically crediting a deposit account of the payee. The first information is stored such that it is associated with the payee identifier. At least a portion of the first information is utilized in directing a credit to the payee&#39;s deposit account when an electronic credit is directed via the first mode.  
       [0040] The database also includes second information identifying a second mode of electronically crediting the payee&#39;s deposit account. The second mode is different than the first mode. The second information is stored such that it is associated with the payee identifier. At least a portion of the second information is utilized in directing a credit to the payee&#39;s deposit account when an electronic credit is directed via the second mode. It should be understood that neither the first mode nor the second mode requires the use of a deposit account number of the payee deposit account, though one or both could require such a use.  
       [0041] According to one aspect of the database, the first information includes the deposit account number of the payee&#39;s deposit account as well as a routing number identifying the financial institution at which the payee&#39;s deposit account is maintained. Also according to this aspect, the second information includes an account identifier associated with the payee deposit account. The account identifier is not a deposit account number assigned to the deposit account by the financial institution at which the deposit account is maintained. Also, the second information excludes the payee deposit account number.  
       [0042] In a further aspect of the database, the account identifier is not assigned by the financial institution at which the account is maintained or an entity which maintains the database, but by another entity.  
       [0043] According to another further aspect of the database, the account identifier is a Universal Payment Identification Code, known as a UPIC. The UPIC identifies the payee&#39;s deposit account and serves as a basis for electronic credits made to the payee&#39;s deposit account.  
       [0044] According to another aspect of the database, also included is third information identifying a third mode of electronically crediting the payee&#39;s deposit account. The third mode is different than the first mode and different than the second mode. The third information is stored such that it is associated with the payee identifier. At least a portion of the third information is utilized in directing a credit to the payee&#39;s deposit account when an electronic credit is directed via the third mode. The third information may or may not include the payee&#39;s deposit account number.  
       [0045] According to a further aspect of the database, the first information includes the payee&#39;s deposit account number as well as the routing number, and the second information includes an account identifier associated with the payee&#39;s deposit account. The account identifier, as discussed above, is not a deposit account number assigned to the deposit account by the financial institution at which the deposit account is maintained. The second information excludes the payee deposit account number. Also according to this further aspect of the database, the third information includes a remittance network identifier associated with the payee and excludes the deposit account number. The remittance network identifier identifies the payee to a remittance network. A remittance network is a network over which payments and/or data associated with a payment move to the payee.  
       [0046] According to a further aspect of the database, also included in the database is a remittance advice delivery address. The remittance advice delivery address is stored such that it is associated with the payee identifier. A remittance advice delivery address could be a physical address, or could be an electronic address, and is a location to which remittance advice associated with a payment can be delivered.  
       [0047] According to still another aspect of the database, the first information includes the deposit account number of the payee&#39;s deposit account as well as a routing number identifying the financial institution at which the payee&#39;s deposit account is maintained. Also according to this aspect, the second information includes a remittance network identifier associated with the payee. Also, the second information excludes the payee deposit account number.  
       [0048] In yet another aspect of the database, the first information includes an account identifier associated with the payee&#39;s deposit account and does not include the payee&#39;s deposit account number. The account identifier, as will be understood, is not a deposit account number assigned to the deposit account by the financial institution at which the deposit account is maintained. Also according to this aspect, the second information includes a remittance network identifier associated with the payee.  
       [0049] It will be appreciated that the database preferably includes multiple payee identifiers, each identifying a unique payee. Any of these other unique payees could be associated in the database with any combination of the first, second, and third information discussed above. Also, any of these other unique payees could be associated in the database with only one of the first, second, or third information. And, the database could include information other than the first information, second information, and third information discussed above. Further, the database could also include more than one deposit account number and routing number associated with any payee. That is, the database could include information identifying multiple deposit accounts associated with a single payee. Likewise, the database could also include more than one remittance network identifier associated with a single payee. This could include the first mode being based upon a first remittance network identifier, and the second mode based upon a second remittance network identifier different than first. And, the database could also include more than one account identifier, other than a deposit account number, associated with a single deposit account. Thus, the first mode could be based upon a first account identifier, and the second mode could be based upon a second account identifier different than the first.  
       [0050] It will also be understood by those skilled in the art that the invention is easily implemented using computer software. More particularly, software can be easily programmed, using routine programming skill, based upon the description of the invention set forth herein and stored on a storage medium which is readable by a computer processor to cause the processor to operate such that the computer performs in the manner described above.  
     
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
     [0051] In order to facilitate a fuller understanding of the present invention, reference is now made to the appended drawings. These drawings should not be construed as limiting the present invention, but are intended to be exemplary only.  
     [0052]FIG. 1 is a diagrammatical representation of the creation of a consumer database.  
     [0053]FIG. 2 is a diagrammatical representation of the establishment of a merchant&#39;s (billing entities) database and the making of payments.  
     [0054]FIG. 3 is a diagrammatical representation of the creation of a consumer pay table.  
     [0055]FIG. 4 a  is a diagrammatical representation of a payment processing cycle.  
     [0056]FIG. 4 b  is a continuation of the diagram of FIG. 4 a.    
     [0057]FIG. 4 c  is a continuation of the diagram of FIG. 4 b.    
     [0058]FIG. 5 is a diagrammatical representation of a computer hardware system that may be used for accomplishing the present invention.  
     [0059]FIG. 6 is a diagrammatical representation of another computer hardware system that may be used for accomplishing the present invention.  
     [0060]FIG. 7 depicts prior art processing in utilizing URT/UPIC information in making payments.  
     [0061]FIG. 8 depicts processing in utilizing URT/UPIC information in making payments in accordance with the present invention.  
     [0062]FIG. 9 is a simplified depiction of an add payee screen in accordance with the present invention.  
     [0063]FIG. 10 depicts a merchant master file in accordance with the present invention.  
     [0064]FIG. 11 is a further depiction of the payment processing cycle of FIG. 4 a  showing a determination of a form of electronic payment to be made. 
    
    
     DETAILED DESCRIPTION OF A PREFERRED EMBODIMENT  
     [0065] Referring now to the drawings, FIG. 1 illustrates the steps in the creation of a consumer database for use with the present invention. The first step in the process is to establish a consumer&#39;s data records on the system. This may be accomplished by the consumer completing an authorization form  20  which would contain the needed information to input into the system concerning the consumer. This information may include the consumer&#39;s name, address, telephone number and other applicable information. The consumer may also be required provide a voided check from the consumer&#39;s personal checking account. The consumer&#39;s information may then be manually input via a keyboard  52  into the consumer database record  22 . Alternatively, information could be obtained from the consumer via an on-line session or telephone session.  
     [0066] Default amounts may be set for an individual credit line parameter and for a total month-to-date parameter. These amounts establish the maximum unqualified credit risk exposure the service provider is willing to accept for an individual transaction and for the collective month-to-date transactions of a consumer. As explained herein, the service provider may be at risk when paying a consumer&#39;s bills by a check written on the service provider&#39;s account or by electronic payment from the service provider&#39;s account.  
     [0067] The consumer&#39;s bank routing transit and individual account numbers at a financial institution are input into the computer system. This information may be edited against an internal financial institutions file (FIF) database  24  of the present invention. FIF  24  is a database of financial institutions&#39; identification codes and account information for the consumer. This file edits the accuracy of the routing transit number and the bank account number. If the numbers do not correspond with the correct routing and bank numbers, they are rejected and data entry is done again. FIF  24  in conjunction with the software of the present invention also updates the consumer database  22  for both electronic and paper draft routing and account information. The needed information may be obtained from each banking institution and each consumer.  
     [0068] For further security to the service provider, a consumer credit record  30  may be obtained. The default credit limit amounts over which the service provider may be unwilling to assume financial risk may be modified based on the information obtained from the credit report  30 .  
     [0069] In FIG. 2 the steps are shown for establishing merchants to be paid and the making of a payment. The consumer must inform the service provider or processor of a merchant&#39;s name, address, phone number and the consumer&#39;s account number with the merchant  32 . The term “merchant” as used herein is intended to pertain to any person or entity that the consumer wishes to pay and is not to be limited to the usual merchants most consumers pay, such as the electric company, a home mortgage lender, etc. This information is put into a merchant master file database  42  (MMF). The consumer may also indicate whether the merchant is a variable or fixed merchant. A variable merchant is one in which the date and amount of payment will vary each month. A fixed merchant is one in which the date and amount remain the same each month. If the merchant is fixed, the frequency of payment may be other than monthly, such as weekly, quarterly, etc. The consumer should inform the service-provider of the date on which the merchant is to be paid and the amount to be paid.  
     [0070] Through a telecommunications terminal  34  (e.g., a push-button telephone or computer terminal), a consumer may initiate payment of bills. Through the terminal, the consumer may access his merchant list and input the payment date and amount. The system may be provided with a payment date editor  36  to insure that the date is valid and logical (i.e., payment dates already in the past or possibly a year or more into the future would be questioned). As payments are initiated, a consumer “checkbook register” may be created and automatically updated to reflect this activity. The merchant list can be visible on the consumer&#39;s personal computer screen. On a personal computer a consumer may enter merchant payment amounts and payment dates on the computer screen and then transmit this information to the service provider.  
     [0071] By telephone, the list may be presented by programmed voice. The voice may be programmed to ask the consumer if a particular merchant (selected from the consumer&#39;s MMF, which may be updated from time to time) is to be paid and to tell the consumer to press 1 if yes, or press 2 if no. If yes, the voice may instruct the consumer to enter the amount to be paid by pressing the numbers on a touch tone phone. The asterisk button could be used as a decimal point. After the amount is entered, the voice may ask the consumer to enter the date on which payment is to be made to the merchant. This may be accomplished by assigning each month a number, such as January being month 01. The consumer may then enter month, day and year for payment. The programmed voice may be accomplished with a VRU (voice response unit) available from AT&amp;T or other vendors. It may communicate with a data processor to obtain consumer information. At the end of the consumer&#39;s session on the terminal a confirmation number may be sent to the consumer, providing a record of the transaction.  
     [0072] In FIG. 3 the steps are shown for the creation of the consumer pay table  38  and making updates to it. The consumer&#39;s files may be received at the service provider on a front end processor  40  that interfaces with the telecommunications network. The consumer&#39;s records may be edited  44  for validity by comparing to the merchants&#39; account scheme. Any new merchant records are added to the consumer&#39;s pay table. New merchants are compared to the MMF  42  and appropriately cross-referenced to the pay table to check if a merchant record already exists. If no merchant record exists, a merchant record will be created on the MMF  42 .  
     [0073] Payment records may also be received on the service provider&#39;s processor. The payment may first go through a validation process against the pay table. The validation process checks for duplicate payments and if duplicates are found they are sent to a reject file. The validation process also verifies that merchants are set up and may check for multiple payments to be paid to a particular merchant. Orders for payment go to the consumer pay table to determine when the payment should be released and how it will be released for payment.  
     [0074] The service provider may pay merchants by a draft or check (paper) or by electronic funds transfer. To create a draft that will pass through the banking system, it must be specially inked. This may be accomplished by a printer which puts a micr code on drafts, like standard personal checks. For example, as shown in FIG. 5, the front end processor  40  may be a DEC VAX which is connected to an IBM main frame  46  Model 4381. Consumers may call by telephone  35 , a number that passes through the private bank exchange (PBX)  39  and contacts a voice response unit  41  in association with the front end processor  40 . After the consumer&#39;s payment instructions are received an analysis is performed to determine the most cost effective and least risk mode of payment for the service provider to use. One preferred mode of payment is electronic funds transfer through the Federal Reserve Automated Clearing House (ACH) Network  47 . If the service provider is not a bank, a bank intermediary may be needed to be connected to the Federal Reserve Network. Another payment mode is a charge to the consumer&#39;s credit card through the RPS Network  49 . Additionally, an IBM Laser Printer attached to a micr post printer  48  may be used by the service provider to send drafts  76  or consolidated checks  78  to merchants. The main frame  46  has data storage means  50  and runs the FIF  24  and MMF  42  programs. It may also have a tape drive or telecommunication interface for accomplishing electronic funds transfer. It should be recognized that various other hardware arrangements could be used to accomplish the present invention. FIG. 6 illustrates a similar arrangement for use when the consumer is using a personal computer  37  to instruct the service provider. The personal computer may access the front end processor  40  through the standard X.25 Network  43 .  
     [0075] Referring now to FIGS. 4 a ,  4   b  and  4   c , a payment process is shown. The payment process may be cycled  56  each day or more or less frequently. The first step is to establish when payment items are to be processed. This may be accomplished through a processing calendar  58 . A processing calendar  58  may be built into the system. The calendar  58  enables the system to consider each date, including weekends and the Federal Reserve holidays. Payments are released from the consumer pay table  38  using the due date. Any bank date, payments, or payments within a period such as four business days may be released the same day. All future payment dates would be stored in the consumer pay table  38 . On-line inquiry may be made on the consumer pay table  38 . The service provider has on-line capability to make changes to the consumer payment upon request until the day the payment is released. A consumer&#39;s merchant change may also affect the consumer&#39;s payment on the pay table  38 .  
     [0076] The method of payment to the merchant may be either paper (draft or check) or electronic. There are several factors in the process used to determine if a payment will be released as a paper item, or an electronic transaction. Each consumer may be assigned a status such as: active=good; inactive=bad; and, pending=uncertain, risky. If a consumer&#39;s status is pending  60 , when reviewing the payment file with the processing calendar  58 , the payment should go out as a draft paper to protect the service provider. When payment is made by draft, the service provider is not a contractual party to the transaction. The consumer&#39;s bank account codes are actually encoded onto the draft prepared by the service provider and act much like the consumer&#39;s personal check. The draft has been specially designed for this process. The draft is payable to either the service provider or the particular merchant. This allows the draft to be delivered to the merchant for payment and depositing, but allows the draft to be legally payable by the bank, with proper authorization. Additionally, posting information for the merchant is contained on the body of the draft. If the consumer&#39;s bank transit number does not indicate an electronic bank  62  (i.e., a banking institution that will accept electronic funds transfer), the program associated with FIF  24  sends the payment as a draft. A pre-note  28  is required any time  64  new banking information is entered on a consumer and the bank shows on FIF  24  as an electronic receiving bank. The pre-note period is ten (10) days under federal law. Any payments released during this period are sent as paper.  
     [0077] Another manner in which the service provider may pay bills is by a check written on the service provider&#39;s account. A consolidated check may be written if many customers have asked the service provider to pay the same merchant. Under this method of payment the service provider assumes some risk since the service provider writes the check on its own account. The service provider is later reimbursed by the (consumer&#39;s) banking institution.  
     [0078] As a means of minimizing risk to the service provider, any transaction may be compared to the MMF  42  credit limit. For example, if the check limit is greater than zero and the payment is $50.00 or less  66 , the item may be released as electronic  74  or by service provider check  78 . If the payment is greater than $50.00 but less than or equal to the merchant credit limit  68 , the payment may be released as electronic payment  74  or check  78 . Any payments within the merchant&#39;s credit limit  70  are added to the consumer&#39;s monthly ACH balance  72 . This provides a monthly total billing day to billing day summary of the consumer&#39;s electronic payment activity. Any transaction may be compared to the consumer&#39;s database credit limit parameters. If a payment amount is greater than the consumer&#39;s credit limit, the item is released as a draft  76  which is written on the consumer&#39;s account. If the payment amount plus the total of electronic payments in a particular month is greater than the consumer&#39;s credit limit, the item is released as a draft  76 . Items not released as paper are initiated as an ACH debit against the consumer&#39;s account.  
     [0079] The consumer database may be reviewed for proper electronic funds transfer (EFT) routing. Payment to the merchant may be accomplished one of three ways, depending on the merchant&#39;s settlement code. Various merchant&#39;s settlement codes may be established. For example, a merchant set up with a settlement code “01” results in a check and remittance list  78  being mailed to the merchant. Merchants with a settlement code, such as “10” produce an ACH customer initiated entry (CIE). Merchants with a settlement code, such as, “13” produce a remittance processing system (RPS) credit.  
     [0080] In the consumer pay table, for fixed payments, a payment date gets rolled to the next scheduled payment date on the pay table. The number of remaining payments counter is decreased by one for each fixed payment made. For variable payments once made, the payment date is deleted on the consumer pay table. The schedule date and amount on the consumer pay table roll to zero. A consumer payment history may also be provided which show items such as process date as well as collection date, settlement method, and check number in addition to merchant name and amount.  
     [0081]FIG. 8 depicts an inventive technique for making electronic payments utilizing UPIC or other deposit account identifying information instead of payment based solely on deposit account numbers via the ACH network or via credit card. While UPIC based transactions are described below, it should be understood that electronic transactions could be performed utilizing other information than UPIC values, deposit account numbers, or credit card related information. In accordance with this technique, a merchant  801  does not solicit a consumer  802  to use UPIC identifiers, as described earlier. Instead, a relationship is established between the merchant  801  and an electronic payment system  805  that maintains a merchant master file (MMF)  42 , introduced above, or other forms of payees. The merchant  801  supplies UPIC information, and optionally URT information, to the electronic payment system  805 . Upon receipt, a process to add this data to a new or existing entry for merchant  802  the MMF  42  or other data repository is executed, as shown at  806 . It will be appreciated that while the EPN is discussed below the inventive techniques of the present invention will be equally applicable to UPIC-based transactions processed by CHIPS.  
     [0082] Optionally, the merchant  801  may supply remittance direction selection rules to the electronic payment system  805 . That is, if the electronic payment system  805  maintains information indicating that remittance advice information and/or payment to merchant  801  can be delivered via multiple delivery channels, including through a third party remittance network  810  other than the EPN  812 , directly through the Federal Reserve System  814 , through the EPN  812 , or delivered directly from the electronic payment system  805  to the merchant  801 , rules can be established to allow choice between the different delivery channels.  
     [0083] These rules, as will be recognized from the discussion above, could be based upon one or more of multiple variables. For example, risk could be considered, such that payments above or below certain dollar thresholds could be made utilizing the UPIC value to mask the merchant&#39;s bank account number. Also, delivery channel could be determined based upon the amount of remittance advice data to be delivered to the merchant  801 , such that a direct to merchant channel could be used when, for instance, the EPN  812  cannot deliver a certain volume or type of remittance advice data. Delivery channel selection could also be based upon least-cost routing. That is, a delivery channel could be chosen dependent upon costs incurred by the electronic payment system  805  in use of various delivery channels.  
     [0084] Shown in FIG. 8, the consumer  802  is using an input/output device  830  which works in conjunction with a consumer user interface  832  provided by the electronic payment system  805 , or some entity (not shown) working closely with the electronic payment system  805 . The input/output device could be phone, computer, or other device. It should be noted that whenever consumer  802  identifies merchant  801  to the electronic payment system  805 , whether that be in an add payee request or a payment request, there is no need for the consumer  802  to specify the merchant&#39;s URT/UPIC information, or even be aware of such information.  
     [0085]FIG. 9 depicts an add payee page  900  that could be completed by consumer  802  in identifying merchant  801  to the electronic payment system  805 . As shown in this example, although a number of different types of information may be required of the consumer  802 , there is no provision for providing the payee&#39;s bank account information, or even a proxy for that bank account information, such as URT/UPIC information. This is in contrast to the prior art processing described above, in which a customer must provide URT/UPIC information.  
     [0086] In the present embodiment, the consumer&#39;s add payee requests, as well as payment requests, are written to the consumer pay table  38 , discussed above, before remittance processing  840  is initiated. Of course, it will be recognized that add payee requests and/or payment requests could immediately, in real-time, be subjected to processing, or stored in one or more data repositories other than the consumer pay table  38  for later processing. Certain aspects of remittance processing  840  will be further discussed below. Information from the consumer pay table  38  and the MMF  42  are processed together to determine delivery channels for electronic payments, i.e., the Federal Reserve system  814 , the EPN  812 , a third party remittance network  810 , or to the merchant directly. As will be understood from the discussion above, if the Federal Reserve System  814  receives a transaction that has URT/UPIC information, the transaction is simply propagated to the EPN  812 .  
     [0087]FIG. 10 is an simplified exemplary depiction of the MMF  42 . Shown are entries for merchants A′ through Z′. Each entry includes information associated with a merchant. As shown, information associated with merchant A′ includes bank routing (RTN) and account identifying (DDA) information. This RTN/DDA information identifies a deposit account belonging to merchant A′. Also associated with merchant A′ is URT/UPIC information. Delivery channel selection rules are also associated with merchant A′. Based upon these selection rules, one or more delivery channels can be chosen.  
     [0088] Information associated with merchant B′ includes a network ID. This network ID designates a third party remittance network, for example the MasterCard RPP network. As this is the only delivery channel information stored in association with merchant B′, the only delivery channel for electronic payments available is the identified third party remittance network.  
     [0089] Information associated with merchant C′ includes URT/UPIC information. As this is the only delivery channel information stored in associated with merchant C′, the only delivery channels available for electronic payments are the EPN and the Federal Reserve System in conjunction with the EPN.  
     [0090] It should be noted that the merchant master file  42  may contain additional information associated with merchants, including addresses. For those merchants for which address information is stored, payment could be made by a check or draft delivered to the stored address, as will be understood from the discussion above.  
     [0091]FIG. 11 shows an exemplary logic flow of remittance processing  840  performed by the electronic payment system  805 , introduced above. As shown in step  1101 , the consumer  802  requests to add merchant A to her or his payee list. It again should be stressed that this request does not include either URT/UPIC or RTN/DDA information. The add merchant request is matched with information associated with the merchant A′ contained in the MMF  42 , step  1102 . At the very least, stored information associated with merchant A′ includes the merchant&#39;s URT/UPIC information. At some point in time, perhaps along with the add merchant request, or separate, the customer  802  requests that a payment be made to the merchant A on the customer&#39;s behalf, step  1110 . After receiving the payment request, the above-described determination of form or payment (electronic or paper) is made (not shown in FIG. 11). It will be appreciated that alternatively, any time UPIC information is associated with a merchant, all payments to that merchant could be made utilizing URT/UPIC information.  
     [0092] This example assumes that the determination is to make payment electronically. Once this determination is made, a determination is made as to whether or not there are remittance direction selection rules for the merchant A′ stored in the MMF  42 , step  1112 . If so, operations continue with step  1113 , discussed below. If not, a determination is made as to whether or not URT/UPIC information is stored in the MMF  42  in association with the merchant A′. If URT/UPIC information is stored, then, at step  1116 , an electronic transaction is constructed using the URT information in lieu of a RTN and the UPIC information in lieu of a DDA. The constructed transaction is then submitted to either the EPN  812  or the Federal Reserve system  814 , step  1118 .  
     [0093] If in step  1114  it is determined that URT/UPIC information is not stored in the MMF  42 , a ‘no URT/UPIC’ remittance processing is invoked, step  1121 . This processing can result in either directing payment via a third party remittance network  810 , or constructing a transaction utilizing RTN/DDA information and submitting the constructed transaction directly to the Federal Reserve system, with perhaps remittance advice directly to the merchant A, or via another channel.  
     [0094] This ‘no URT/UPIC’ remittance processing is shown in FIG. 5 at detail  46 , entitled COMPUTER. FIG. 5 specifically shows payment being made via either the Federal Reserve ACH network  47 , or the MasterCard RPS network  49 , which is an example of a third party remittance network.  
     [0095] If at step  1112  it is determined that there are remittance direction selection rules for merchant A′ stored in the MMF  42 , the next step is to determine preferred delivery channel(s) using the rules and the specifics of the received payment request, step  1113 . As discussed above, examples of factors could influence the choice of channel include the complexity of the data associated with the payment request, i.e., it may be preferable that rich remittance advice be directed directly to the merchant A. Another example is the amount of the payment, i.e., payments below a certain amount threshold could be directed via the Federal Reserve  814  with merchant account information unmasked, while payments above a certain amount threshold could be directed through the EPN  812 , with the merchant account information masked with UPN/UPIC information. Also, as discussed above some sort of least cost routing analysis could be performed.  
     [0096] At step  1115  information associated with the merchant A′ in the MMF  42  necessary to construct a transaction is retrieved. This necessary information is received in accordance with the determined delivery channel(s). For example, if the transaction will be directed via the EPN  812 , the URT/UPIC information would be specifically retrieved. If the transaction will be directed solely via the Federal Reserve  814 , RTN/DDA information would be retrieved. If the transaction will be directed via a third party network  810 , a merchant A′ identifier for the network will be retrieved.  
     [0097] At step  1117  the transaction, in a format appropriate for the particular delivery channel, is constructed using the retrieved data. The constructed transaction is submitted to the appropriate entity, i.e., Federal Reserve  814 , EPN  812 , third party network  810 , or merchant  801 . It should be understood that different portions of the transaction, for example, the fund settlement portion and the remittance advice portion, could be directed to different entities.  
     [0098] Accordingly, payments can be directed using URT/UPIC information without a consumer having a need to input these values either at the time of adding a merchant or requesting payment. Furthermore, funds and/or remittance advice can be selectively delivered using the most beneficial delivery channel in view of various cost and non-cost related factors.  
     [0099] The present invention is not to be limited in scope by the specific embodiments described herein. Indeed, various modifications of the present invention in addition to those described herein, will be apparent to those of skill in the art from the foregoing description and accompanying drawings. Thus, such modifications are intended to fall within the scope of the appended claims.