Patent ID: 8027917

Claim:
On a computer network comprising at least a merchant's computer network including a point of sale (POS) device connected to said merchant's computer network, a first virtual private network (VPN) connecting said merchant's computer network to a proprietary server, a second VPN connecting said server to an originating depository financial institution (ODFI), an automated clearing house (ACH) network connected to said ODFI, and one or more accounts controlled by a customer for funding a transaction, at least one of said one or more accounts being a demand deposit account (DDA) maintained by a bank, said DDA being accessible through said ACH network for funding financial transactions, a method for initiating and completing a financial transaction comprising the steps of: storing on said server information that identifies said customer and said one or more accounts controlled by said customer including said DDA, said information comprising at least an account number that identifies said DDA and an identification number identifying said bank where said DDA is maintained; creating a customer specific primary barcode and at least one extension barcode linked to said primary barcode; associating said primary barcode with said information that identifies said customer; associating said extension barcode with said merchant; transmitting said primary barcode to said server via said first VPN for validation that said customer is authorized to conduct transactions on said server; receiving said validation; transmitting said extension barcode to said server; entering data representing said items for purchase into said POS device, associating said data with said customer, and sending said data to said server for approval of a purchase transaction of said items; receiving approval to transact a purchase of said items; routing said transaction to one of said one or more accounts controlled by said customer; and if said account is said DDA, routing said transaction through said second VPN to said ODFI as an ACH transaction for processing and settling through said ACH network; and if said account is not a DDA, routing said transaction through a network whereby said financial transaction is funded from said account.