Patent ID: 8280788

Claim:
A method of transferring funds from a payer to a payee in an electronic payment system, the electronic payment system including a payment processor and an accounts database, wherein the payment processor is a hardware payment processor, comprising: receiving, by the payment processor, a payment request from the payer, the payment request including information to identify the payee and a payment amount; accessing, by the payment processor, the accounts database to determine if the accounts database includes an existing account associated with the payee; if the accounts database includes an existing account associated with the payee, then sending, by the payment processor, an electronic message from the payment processor to the payee that notifies the payee of the payment request; if the accounts database does not include an existing account associated with the payee, then the payment processor enabling the payee to register for a new account; accessing, by the payment processor, the accounts database to determine if the payee, having the existing account, is identified as having a trusted relationship with the payer; if the payee, having the existing account, is not identified in the accounts database as having a trusted relationship with the payer, then the payment processor transferring the payment amount from an account associated with the payer to the existing account associated with the payee only after receiving authorization from the payee for the transfer; and if the payee, having the existing account, is identified in the accounts database as having a trusted relationship with the payer, then the payment processor transferring the payment amount from the account associated with the payer to the existing account associated with the payee without first receiving authorization from the payee for the transfer.