Patent ID: 7536347

Claim:
A method of reducing payments risk, liquidity risk, and systemic risk associated with payments-based transactions, in a system supporting a plurality of third party host applications, a plurality of user host applications, and a plurality of payment bank host applications running on a communications network, wherein said plurality of user host applications are supported over said communications network for use by plurality of users active in payments-based transactions, wherein said plurality of third party host applications are supported over said communications network for use by plurality of third parties active in payments-based transactions, wherein said plurality of payment bank host applications are supported over said communications network for use by a plurality of payment banks operating a plurality of domestic payment systems, and wherein each said payment bank host application has a filter process module for processing payments instructions, said method comprising the steps: (a) said third parties sending counterparty payments risk data associated with a plurality of payments-based transactions, to said user host applications; (b) said users sending counterparty payments risk data on behalf of themselves and said third parties to said system, wherein said payments risk data specifies transaction parameters selected from the group consisting of (i) said user associated with each said payments-based transaction, (ii) said third party associated with each said payments-based transaction, (iii) said payment bank associated with each said payments-based transaction, (iv) an intermediary(ies) in the chain of accounts leading to the counterparty or ultimate payment beneficiary, (v) a counterparty associated with each said payments-based transaction, (vi) a currency associated with each said payments-based transaction, (vii) a payment type associated with each said payments-based transaction, (viii) a Transaction Reference Number unique to each payments-based transaction, and (ix) a clean payment limit associated with each said payments-based transaction; (c) said system analyzing the payments risk data associated with each said payments-based transaction and decomposing said payments risk data into files for transfer to said payment bank host applications for making payments on behalf of said users in a plurality of currencies; (d) said system transmitting said payments risk data, associated with each said payments-based transaction, to said payment bank host applications, using application-to-application automated interfaces; and (e) each said payment bank host application applying said payments risk data, as input parameters, to said filter process module for automated evaluation of payments instructions in respect of accounts of said users such that payments instructions breaching said input parameters to said filter process module are rejected back to a payments processing queue for later re-evaluation in the absence of an override instruction.