Patent ID: 7395241

Claim:
A computer implemented method of electronically transferring funds from a sender to a receiver, comprising: a host system, operating on a conventional computer system and communicatively coupled to a host financial institution that is an automated clearinghouse (ACH) member at which is maintained a host account, receiving from the sender an amount of a funds transfer, a designation of a source account for the funds transfer, and a contact information of the receiver sufficient for contacting the receiver, without receiving from the sender a designation of a target account of the receiver; the host system contacting the receiver using the information provided by the sender, and informing the receiver that the sender is capable of initiating a transfer of funds to the receiver; the host system receiving from the receiver the designation of the target account for receiving the funds from the sender after the host system has contacted the receiver using the information provided by the sender; and the host system providing a first instruction to the host financial institution to cause the transfer of funds from the source account to the host account; and the host system providing a second instruction to the host financial institution to cause the transfer of funds from the host account to the target account; wherein any of the first instruction and the second instruction effects through an ACH network a number of ACH entries to transfer funds; wherein the sender is not required to have a previously established ACH originator relationship with an ACH member at which the receiver's target account is maintained.