Ulllted States Patent [19]
`Rogers
`
`USOOS 87045 6A
`[11] Patent Number:
`[45] Date of Patent:
`
`5,870,456
`Feb. 9, 1999
`
`[54] AUTOMATED INTERACTIVE BILL
`PAYMENT SYSTEM USING DEBIT CARDS
`
`5,652,786
`5,715,298
`
`7/1997 Rogers.
`2/1998 Rogers -
`
`[75] Inventor: Catherine R. Rogers, Dallas, Tex.
`
`[73] Assigneet Telepay, 1116-, Dallas, TeX-
`
`[21] App1_ No; 946,272
`_
`[22] Flled:
`
`Oct‘ 7’ 1997
`(Under 37 CFR 147)
`
`Related US. Application Data
`_
`_
`[63] Continuation of Ser. No. 787,981, Jan. 22, 1997, Pat. No.
`5,715,298
`
`[51] Int. Cl.6 .................................................. .. H04M 11/00
`[52] U-S- Cl
`379/91-01; 705/40
`Of Search ............................ ..
`379/9302, 9301, 9312, 9313, 9326, 9328,
`143, 144; 235/375, 379, 380; 705/39, 40
`
`[56l
`
`References Cited
`Us PATENT DOCUMENTS
`
`6/1987 Kalmus et a1- -
`4,674,044
`47694397 9/ 1987 Gran] et a1- -
`478237264
`4/1989 Demmg '
`4’947’028
`8/1990 60mg '
`5,121,945
`6/1992 Thomson et a1. .
`571267936
`6/1992 Champion et a1‘ '
`572207501
`6/1993 Lawlor et aL _
`572837829
`2/1994 Anderson _
`5,285,382
`2/1994 Muehlberger et a1. .
`5,383,113
`1/1995 Kight et a1. .
`
`OTHER PUBLICATIONS
`Information Networks, V6, No. 8, Jul. 26, 1993, Scanfone
`Alive and Well; Bell Atlantic Readiesfor Rollout.
`Tanaka, David; Interac Rools Out Debit Card System; Com
`puting Canada vol. V18, Issue No. 21, Oct. 13, 1992.
`Blackwell, Gerry; Computing In Banking; Technology is the
`Weapon; Computing Canada, V16, p. 59, Oct. 11, 1990.
`The Score Card Evens in a POS Title Fight; Bank Network
`News Jun. 11, 1992, VIONZ.
`Primary Examiner_wing F~ Chan
`Attorney, Agent, or Firm—Haynes and Boone, L.L.P.
`[57]
`ABSTRACT
`
`Method and apparatus for processing payment transactions
`using debit card numbers without the requirement of a
`persona] identi?cation number
`is disclosed_ A telepay
`system of the present invention provides an interface
`between a standard touchtone telephone and at least one
`debit card network such that real-time bill payment trans
`actions may be effected using a keypad of the telephone. The
`telepay system includes an interactive voice response unit
`for prompting a payor to enter an access code, account
`number, debit card number and payment amount and for
`informing the user of the status of the transaction. Real-time
`processing of transactions is provided through use of debit
`d tworks rather than the Automated Clearin House.
`car He
`’
`.
`.
`g
`The telepay system is also'capable of performing settlement
`functions and processlng inquiries by payees of the system
`regarding previously processed transactions.
`
`8 Claims, 9 Drawing Sheets
`
`ACCOUNT NUMBER
`VELOCITY FILE
`
`DEBIT CARD
`VELOCITY FILE
`
`THE
`
`TELEPAY
`
`BANK SETTLEMENT
`RECORDS
`
`PayPal Ex.1021, p.1
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 1 of9
`
`5,870,456
`
`12
`
`/
`22
`
`\
`
`\
`\
`
`I0
`
`@OQQ
`
`CD
`14
`ACCOUNT NUMBER
`- VELOCITY FILE V
`<3
`16
`DEBIT CARD
`— vELoCITY FILE
`
`24
`
`TELEPAY O
`SYSTEM
`NEGATIVE
`L8
`FILE
`
`4; ’
`
`III
`
`III
`
`\
`\\
`
`I
`
`u
`
`20
`
`g 5;; 5 ACCOUNT
`5555595“
`:; ;=;;(MANUAL INPUT)
`
`
`w EFT W] NETWORK : z:
`4;’ I
`:
`I
`|
`v
`
`\
`\
`\
`
`DAILY
`EXTRACT
`
`— ——-
`
`BANK SETTLEMENT
`
`RECORDS
`
`PayPal Ex.1021, p.2
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 2 of9
`
`5,870,456
`
`BILL PAYMENT TRANSACTION PROCESS
`
`FROM FIG. 2G
`
`0
`11
`
`INSTRUCT CALLER OF
`INvALID ENTRY
`
`/210
`
`
`
`2OO\ PLAY THE wELCoME MESSACE If
`
`202\ REQUEST PAYEE ACCESS CDDE
`T
`CHECK ACCESS CODE
`FOR VALIDITY
`
`204\
`
`206
`
`ACCESS
`CODE vALID
`
`YES ;
`V
`R U T CA R T
`NT R
`214/ TEHQE iECOUNTLENUMSJBEER (5F
`THE BILL BEINC PAID
`
`YES
`REQUEST CALLER TO CHECK
`INFORMATION AND CALL AGAIN
`
`212
`/
`
`216/
`
`CHECK ACCOUNT NUMBER
`FOR vALIDITY vIA
`PAYEE ALCoRITHM
`
`INSTRUCT CALLER OF
`INVALID ENTRY
`II
`
`/221
`
`V
`
`| A I
`
`TO FIG. 28
`
`Fig.
`
`I H I
`
`FROM FIG. 28
`
`PayPal Ex.1021, p.3
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 3 of9
`
`5,870,456
`
`FROM FIG. 2A
`
`ACCOUNT
`NUMBER VALID
`I)
`
`I
`
`224\ REQUEST CALLER TO ENTER
`DEBIT CARD NUMBER
`
`225/
`
`CHECK DEBIT CARD NUMBER
`FOR VALIDITY
`
`DEBIT
`CARD NUMBER
`VALID?
`
`228
`
`TO FIG. 2C
`
`REQUEST CALLER To CHECK
`INFORMATION AND CALL AGAIN \222
`
`INSTRUCT CALLER OF
`INVALID ENTRY
`NO
`
`\232
`
`TH I RD
`ENTRY?
`
`REQUEST CALLER TO CHECK
`INFORMATION AND CALL AGAIN
`
`\
`234
`
`Fig. 2B
`
`PayPal Ex.1021, p.4
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 4 of9
`
`5,870,456
`
`FROM FIG. 28
`
`(B3
`
`T
`236\ REQUEST CALLER To ENTER
`DOLLAR AMOUNT OF BILL
`
`V
`238\ REPEAT DOLLAR AMOUNT
`TO CALLER
`
`V
`ASK CALLER IF THE DoLLAR
`240 \ AMOUNT ENTRY WAS CDRRECT
`AND TO RESPOND BY A
`TELEPHONE KEYPAD DEPRESSION
`
`WAS
`DOLLAR ENTRY
`CORRECT
`'2
`
`242
`
`TO FIG. 2D
`
`244
`
`THIRD
`ENTRY?
`
`YES
`REQUEST CALLER To CHECK
`INFORMATION AND CALL AGAIN \ 246
`
`Fig. 2C
`
`PayPal Ex.1021, p.5
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 5 of9
`
`5,870,456
`
`FROM FIG. 2C
`
`248\ CHECK ACCOUNT NUMBER
`VELOCITY FILE FOR THE LAST
`USAGE OF ACCoUNT NUMBER
`
`250
`
`HAS THE
`ENTERED ACCOUNT NUMBER
`EXCEEDED THE VELOCITY
`FILE RESTRICTIONS
`9
`
`YES
`
`HAS THE
`ENTERED DEBIT CARD NUMBER YES
`EXCEEDED THE VELOCITY
`FILE RESTRICTIONS
`9
`
`254
`
`INSTRUCT THE CALLER THAT
`THE TRANSACTION CANNOT BE
`PROCESSED DUE To THE / 252
`FREQUENCY OF PAYMENTS ON
`THE ENTERED ACCoUNT NUMBER
`
`INSTRUCT CALLER THAT
`THE TRANSACTION CANNOT BE
`PROCESSED DUE TO
`THE FREQUENCY
`OF DEBIT CARD USAGE
`
`\256
`
`TO FIG. 2E
`
`Fig. 2D
`
`PayPal Ex.1021, p.6
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 6 0E9
`
`5,870,456
`
`FROM FIG. 20
`
`258
`
`IS THE ENTERED
`Y
`DEBIT CARD NUMBER
`0R ENTERED ACOUNT NUMBER ES
`CONTAINED IN THE
`NECATIvE FILE?
`
`262\
`
`264\
`
`NO
`SUMMARIZE THE DETAILS
`OF THE TRANSACTION
`TO THE CALLER
`I
`ASK THE CALLER TO ACCEPT
`PROCESSING OF THE
`TRANSACTION BY A TELEPHONE
`KEYPAD DEPRESSION
`
`DID THE
`CALLER WANT TO
`PROCESS THE
`TRANSACTION
`I)
`
`260
`/
`I
`INSTRuCT THE CALLER THAT
`THE TRANSACTION CANNOT
`BE PROCESSED
`
`I
`
`THANK THE CALLER FOR
`USING THE SYSTEM AND
`TERMINATE THE CALL
`
`268
`
`PayPal Ex.1021, p.7
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 7 0T9
`
`5,870,456
`
`FROM FIG. 2E
`
`INITIATE AN OUTDIAL To A
`270
`\ DEBIT CARD NETWORK FOR
`PROCESSING
`
`272\
`
`II
`PLAY A RECORDED
`MARKETING MESSAGE
`WHILE THE TRANSACTION IS
`BEING POSITIVELY AUTHORIZED
`
`IT
`RECEIvE THE POSITIVE
`274\ AUTHORIZATION RESPONSE FROM
`THE DEBIT CARD NETWORK
`
`TRANSACTION
`APPROVED?
`
`N0
`
`INFORM THE CALLER OF THE
`280/ APPROVAL CODE ISSUED BY
`THE DEBIT CARD NETWORK
`I
`UPDATE TRANSACTION LOG FILES
`
`278
`/
`I
`INFORM CALLER THAT THE
`TRANSACTION WAS DECLINED BY
`THE CARD ISSUING INSTITUTION
`
`V K9
`
`T0 FIG. 26
`
`Fig. 2F
`
`PayPal Ex.1021, p.8
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 8 0f 9
`
`5,870,456
`
`FROM FIG. 2F
`
`UPDATE DEBIT CARD
`VELOCITY FILE
`I
`UPDATE ACCOUNT NUMBER
`VELOCITY FILE
`I
`ASK THE CALLER IF ANOTHER
`PAYMENT IS DESIRED BY
`DEPRESSING A SELECTION ON
`THE TELEPHONE KEYPAD
`
`TO FIG. 2A
`
`SETTLEMENT PROCESS
`
`PERFORM AN OUTDIAL TO
`THE FIRST PAYEE'S
`COMPUTER BILLING SYSTEM
`
`v
`TRANSMIT SELECTED PAYEE DATA
`FILE OF ACCOUNT NUMBERS AND
`AMOUNTS OF SUCCESSFULLY
`COMPLETED TRANSACTIONS
`
`Fig. 2G
`
`I
`TERMINATE THE CALL
`
`Fig. 3
`
`308/
`
`END SETTLEMENT
`TRANSMISSION PROCCESS
`
`306
`/
`
`I
`PERFORM AN OUTDIAL
`TO NEXT PAYEE'S
`COMPUTER BILLING SYSTEM
`I__7
`
`PayPal Ex.1021, p.9
`
`

`
`U.S. Patent
`
`Feb. 9, 1999
`
`Sheet 9 0T9
`
`5,870,456
`
`PAYEE INQUIRY
`
`V
`4OO\ ASK THE PAYEE CALLER TO
`ENTER THE SECURITY CODE
`FOR INQUIRY CAPABILITY
`
`402
`
`N0
`
`WAS
`THE ENTERED
`CODE vALID
`'-’
`YES _
`V
`406\ REOUEsT CALLER TO ENTER
`PAYOR'S ACCOUNT NUMBER
`
`404
`/
`I
`INFORM CALLER AN INvALID
`SECURITY CODE WAS ENTERED
`L___7
`
`ACCOUNT NUMBER BE [N0
`FOUND ON THE DATABASE
`?
`YES
`
`INFORM THE CALLER OF THE
`412/ DETAILs OF THE LOCATED
`TRANSACTION
`
`410
`/
`I
`INFORM CALLER THAT NO
`INFORMATION EXISTS FOR
`THAT ACCOUNT NUMBER
`
`;>
`
`YES
`
`HAvE ANOTHER
`INQUIRY
`
`414
`
`416/
`
`TERMINATE THE CALL
`
`Fig. 4
`
`PayPal Ex.1021, p.10
`
`

`
`5,870,456
`
`1
`AUTOMATED INTERACTIVE BILL
`PAYMENT SYSTEM USING DEBIT CARDS
`
`This is a continuation of application Ser. No. 08/797,981
`?led on Jan. 22, 1997, now US. Pat. No. 5,715,298.
`
`TECHNICAL FIELD
`
`The invention relates generally to systems for electronic
`bill payment systems and, more particularly, to a universal,
`real-time bill payment system method and system that uses
`debit (ATM) cards Without the requirement of a PIN
`(personal identi?cation number) in conjunction With touch
`tone telephones to initiate consumer bill payments electroni
`cally and provide for the elimination of paper checks and the
`heretofore use of the Automated Clearing House of the US.
`Banking System to settle individual items.
`
`10
`
`15
`
`BACKGROUND OF THE INVENTION
`Bill payment by telephone has been available primarily
`from ?nancial institutions for approximately 15 years. Her
`alded as “home banking” this technology alloWed a cus
`tomer of a bank, savings and loan, or credit union to pay any
`pre-registered bill With the use of a touch tone telephone and
`that ?nancial institutions interactive voice response unit
`(provided that they offered the serviced The customer Would
`?rst have to select a ?nancial institution that offered the
`service, request to participate in the service, send in a voided
`check, and then provide a manual list of all the bills that
`Were desired to be paid using this system. In addition, a
`signature authoriZation card Would be to signed and archived
`by the ?nancial institution. The ?nancial institution Would
`then manually input all of this information into their
`computer, and then advise the customer that system access
`Was then available. This process usually took up to tWo
`Weeks to complete.
`Once activated, the customer Would then have the capa
`bility to call the ?nancial institution and input payment
`instructions in conjunction With a touch tone telephone and
`reference each payee by a number that Was assigned by the
`?nancial institution. This process of bill payment Would
`alloW the customer to pay bills by having the bank then issue
`an “electronic chec ” to the designated payee. This “elec
`tronic” document Would then be presented to the Automated
`Clearing House of the U. S. Banking System for processing
`and clearing. In reality the process Was identical to the
`processing of a paper check, With the only exception being
`that there Was not any paper involved in the transaction. The
`payment could still “bounce” and be returned for non
`sufficient funds since there Was no actual veri?cation on the
`customer’s account balance to insure that suf?cient funds
`Were on deposit to cover the transaction. In addition, all in
`place check clearing time requirements Were still in place, as
`it took typically at least 3—5 days to clear. Until clearing Was
`realiZed the recipient of the funds never had actual use of the
`funds used for payment. If a neW debt Was incurred, it Would
`have to be pre-registered on the system in order to utiliZe this
`“electronic” capability. If a customer changed ?nancial
`institutions, the Whole process of pre-registering all debts,
`signature cards, and a voided check Would have to be
`repeated. Existing pay by phone systems offered some
`convenience to the user, but Were cumbersome to administer
`and usage Was never Widespread.
`As “home banking” gained more interest, many compa
`nies developed special purpose telephones With visual dis
`plays and “sWipe card readers” that the consumer could
`purchase that Would alloW the use of a debit (ATM) card to
`
`25
`
`35
`
`45
`
`55
`
`65
`
`2
`basically achieve the same purpose as Was evident in pre
`viously implemented systems (for the purposes of brevity in
`this disclosure the term “debit card” shall be construed to
`mean both debit and credit card). The only differences is that
`the consumer could noW “sWipe” the debit card through the
`reader that Was part of the telephone. The Automated
`Clearing House of the U. S. Banking System Was still used
`to process payments, and all pre-registration and signature
`cards Were still required. All “electronic check” clearing
`time requirements Were still needed, and the transaction
`Would still be returned for non-suf?cient funds. If a service
`offered a specialiZed telephone and bypassed the Automated
`Clearing House, using debit card netWorks, the debit card
`used to process the transaction required a PIN. There Was a
`natural resistance to the purchase of special telephones that
`proved to be relatively expensive, in addition to the monthly
`fees necessary to remain a customer of this service.
`As personal computers began to proliferate, many sys
`tems became available that Would alloW bill payment in
`conjunction With a third party service and a personal com
`puter oWned by the user With that third party softWare loaded
`into it, such as the Prodigy system. Still, hoWever, all of the
`aforementioned limitations still applied to these personal
`computer based systems.
`In summary, these home banking systems shared many
`common draWbacks. For example, the burden of pre
`registration and the listing of bills to be paid Was borne by
`the consumer. The system required the processing of trans
`action in the same manner as a paper check, or an electronic
`check through the Automated Clearing House of the US.
`Banking System. The system presented the possibility that a
`transaction could be returned for non-suf?cient funds rea
`sons. In addition, a clearing time for each transaction of 3—5
`days. Furthermore, in many cases, the prior art home bank
`ing systems required the use of specialiZed equipment by the
`customer (such as special purpose telephones equipped With
`electronic card readers or encryption devices), or the ?nan
`cial institution offering services to it’s customer base.
`Moreover, although it is knoWn in the ?eld of accounting
`to call and manually, in conjunction an operator, verify that
`a payor had remitted a bill, there is no capability for the
`recipient of the funds (payee) to electronically immediately
`and positively inquire as to payment status after it Was
`electronically authoriZed by the a debit card netWork.
`Therefore, What is needed is a universal, real-time bill
`payment system method and system that uses debit (ATM)
`cards Without the requirement of a PIN (personal identi?
`cation number) in conjunction With touch tone telephones to
`initiate consumer bill payments electronically and provide
`for the elimination of paper checks, as Well as the use of the
`Automated Clearing House.
`
`SUMMARY OF THE INVENTION
`
`The foregoing problems are solved and a technical
`advance is achieved by method and apparatus of the present
`invention for an improved universal bill payment system. In
`a departure from the art, bills may be paid using a telephone
`connectable to at least one remote debit card netWork via a
`telepay system.
`In a preferred embodiment, the method of the present
`invention comprises steps of prompting a caller to enter an
`access code using a keypad of said telephone, said access
`code identifying a current payment transaction; responsive
`to entry of an access code, determining Whether said entered
`access code is valid; prompting said caller to enter an
`account number using said telephone keypad said account
`
`PayPal Ex.1021, p.11
`
`

`
`5,870,456
`
`4
`made in the designated bank accounts by the utiliZed debit
`card netWorks. Moreover, the system of the present inven
`tion offers to the consumer the advantage of anyWhere,
`anyplace, anytime, convenience With complete spontaneity
`as to the system usage.
`
`3
`number identifying a payee in connection With said current
`payment transaction; responsive to entry of an account
`number, determining Whether said entered account number
`is valid; prompting said caller to enter a debit card number
`using said telephone keypad, said debit card number iden
`tifying a payor in connection With said current payment
`transaction; responsive to entry of a debit card number,
`determining Whether said entered debit card number is valid;
`prompting said caller to enter a payment amount using said
`telephone keypad; responsive to a determination that a
`payment amount has been entered and further responsive to
`a determination that said entered access code, account
`number and debit card number are valid accessing a remote
`debit card netWork associated With said entered debit card
`number, said accessed remote debit card netWork determin
`ing Whether suf?cient funds eXist in an account associated
`With said entered debit card number to complete said current
`payment transaction, responsive to a determination that
`sufficient funds eXist in said associated account, deducting
`said entered payment amount from said account associated
`With said entered debit card number, adding said entered
`payment amount to an account associated With said entered
`account number and informing said caller of an approval
`code issued by said accessed remote debit card netWork and
`storing said entered access code, account number, debit card
`number and payment amount in a transaction log ?le of said
`telepay system, and responsive to a determination that
`sufficient funds do not eXist in said associated account,
`informing said caller that said current payment transaction
`has been declined and terminating said current payment
`transaction.
`A technical advantage achieved With the invention is that
`it enables the use of debit card (ATM) networks for a
`real-time positively authoriZed bill payment that inquire
`electronically against balances on deposit PRIOR to the
`processing of the bill payment transaction, thus eliminating
`the Automated Clearing House to process individual trans
`actions.
`Another technical advantage achieved With the invention
`is that it enables real-time inquiry capability into the con
`sumers balances at virtually any US. ?nancial institution in
`order to verify funds on deposit prior to processing the
`transaction, thereby eliminating the possibility of a non
`sufficient funds occurrence.
`Another technical advantage achieved With the invention
`is the elimination of a PIN (personal identi?cation number)
`in conjunction With debit card number usage in order to
`comply With Regulation E of the US. Banking Regulations
`by maintaining security and frequency of usage restrictions
`in the method and process.
`Yet another technical advantage achieved With the inven
`tion is the integration of interactive voice response technol
`ogy and debit card number authoriZation processing With
`electronic funds transfer bill payment method and process.
`Still another technical advantage achieved With the inven
`tion is the elimination of any specialiZed equipment on the
`part of the consumer to process an electronic bill payment
`(i.e., personal computers, specialiZed telephones or
`terminals, etc.).
`Afurther technical advantage achieved With the invention
`is the elimination of any pre-registration or “sign up”
`procedure on the part of the payor.
`A?nal technical advantage achieved With the invention is
`the provision to the recipient of the bill payment of an
`electronic daily general ledger or activity summary, that
`balances back to the gross amount of electronic deposits
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`FIG. 1 is a block diagram of a telepay system embodying
`features of the present invention.
`FIGS. 2A—2G illustrate a ?oWchart of a bill payment
`transaction process of the present invention.
`FIG. 3 is a ?oWchart of a settlement process of the present
`invention.
`FIG. 4 is a ?oWchart of a payee inquiry process of the
`present invention.
`
`10
`
`15
`
`DESCRIPTION OF THE PREFERRED
`EMBODIMENT
`
`Referring to FIG. 1, the general operation and structure of
`the system of the present invention Will be described, it
`being understood that the operation of the system Will be
`described in greater detail With reference to FIGS. 2.1, 2.7,
`3.1 and 4.1. When a consumer calls into the TelePay system
`10 using a telephone 12, the consumer is prompted by an
`interactive voice response unit Within the system 10 to input
`certain necessary information, to Wit, payee access code,
`debit card number, account number, and amount. The Tele
`Pay system 10 then checks all of its internal ?les, including
`an account number velocity ?le 14, a debit card velocity ?le
`16 and a negative ?le 18, to validate the access code entered,
`the card number presented, the validity of the account
`number, and if that card number and/or account number has
`ever processed a fraudulent transaction. If any of these
`internal checks into the TelePay system 10 process indicate
`fraud, then the transaction is denied. If all of the checks are
`passed, then the TelePay system 10 assembles the data into
`an authoriZation request message, Which is electronically
`sent to a debit card netWork 20 for transmission to a ?nancial
`institution 22 that issued the card for veri?cation of balance
`on deposit.
`The debit card netWork 20 receives a response as to
`Whether or not the there are suf?cient funds on deposit to
`process the transaction requested by the consumer. The debit
`card netWork 20 prepares an appropriate deduction from the
`consumer’s account and prepares an appropriate deposit to
`the payee’s account to be processed later. In addition any
`fees that are due from the payor are also preprocessed at this
`time. The debit card netWork then sends a message to the
`TelePay system 10 While the consumer is still on the
`telephone 12 line. The TelePay system 10 Will then translate
`the numeric data received into an audible verbal response
`transmitted to the consumer via the telephone 12.
`Settlement, as described in greater detail, With reference
`to FIG. 3.1, is de?ned herein as the methodology of debiting
`and crediting the appropriate accounts affected by the above
`described transaction. These accounts Would affect the
`payor, the payee, and the TelePay system 10 for any trans
`action fee. The debit card netWork 20 Will initiate this
`process. The debit card netWork 20, hoWever Will only
`deposit a TOTAL of the days transactions into the payee’s
`account. The netWork has no capability to discern Which
`consumer paid hoW much. It then becomes the responsibility
`of the TelePay system 10 to detail the speci?c account
`numbers and amount of payments that Were made that day.
`This is accomplished by a computer dial-up link (RJE) 24
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`45
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`5,870,456
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`5
`from the TelePay system 10 to the payee’s billing system 26.
`The TelePay system 10 Will also bill the payee on a monthly
`basis for 800 telephone line usage (if any). The accounts
`receivable department of the payee is also provided With the
`capability to call into the TelePay system 10 to inquire as to
`if and When a consumer initiated a payment.
`A single 800 number is used by the TelePay system 10.
`Technology alloWs for a virtually unlimited number of
`telephone lines to terminate on the same number, limited
`only by the compliment of computer hardWare and it’s
`capabilities that are running the system. The caller Will be
`asked to enter the access code of the bill to be paid. This
`access code typically Will be printed on the bottom of the
`statement in an obvious manner and is a requirement of all
`payees utiliZing the service. The code Will identify the payee
`Within the TelePay system 10 and Will activate the TelePay
`softWare to verbaliZe the customer’s selection in order to
`give positive re-enforcement as is the case With all customer
`input (i.e. “you have elected to pay Florida PoWer and Light
`in Miami, Fla. ” Press 1 if this is correct and you Wish to
`continue, or press 2 if incorrect”). If incorrect, the customer
`Will be asked to input another access code, or to terminate
`the call. Assuming the proper access code is con?rmed, the
`neXt step Will be the entering of the account number of the
`bill to be paid, as this number also appears on the monthly
`statement. All selections Will be verbally re-enforced.
`The neXt step Will be the entering of the debit (ATM) card
`number. Various TelePay system 10 checks Will be done on
`this entry. Verbal re-enforcement of the numbers entered is
`again given to the user (“You have entered 5419 23485
`4657. Please press 1 if correct or 2 if incorrect”). The
`TelePay system 10 Will then instruct the user to enter the
`amount of the payment and verbal positive re-enforcement
`Will be given. If all has been acknowledge positively up to
`this point, then the system Will give a verbal summary of the
`transaction and give the customer a ?nal opportunity to
`validate the entries (“Press 1 if correct, or press 2 if
`incorrect”). When the transaction has been positively
`re-enforced by the user, the TelePay system Will then build
`an authoriZation request that Will be sent out to the existing
`debit (Electronic Funds Transfer) netWorks. When the trans
`action has been authoriZed, the system Will once again give
`positive re-enforcement to the user (“Your payment to
`Dallas Gas and Electric in the amount or $124.56 has been
`paid from your ATM card account number 5419 23485 4657.
`Your authoriZation number for this transaction is
`XXXXXXX. Please make a note of this authoriZation code
`for future reference. If you Would like to hear the authori
`Zation code for this transaction again, press 1. If you Would
`like to pay another bill press 2. If you are ?nished press 3.”).
`If the user elects to pay another bill during the same
`session, then the system Will retain the previously entered
`card number and ask the caller if the neXt bill being paid is
`to be paid With the same card, or alloW the opportunity to
`enter a neW card number.
`All of the debit (Electronic Funds Transfer) netWorks are
`accustomed to the assessment, debiting and crediting of fees
`to the issuers and acquirers of debit (ATM) and credit
`transactions. In many cases, a 75¢ fee for a customer to use
`an ATM card at an ATM that is not oWned by the card issuing
`bank involves the dividing of that fee into increments as
`small as 5 c. In this manner all netWorks that are accessed are
`compensated to assist in the authoriZation and routing of the
`transaction. All of these fees are electronically credited to
`the entity that earned the revenue as a result of a contractual
`relationship With that particular netWork. This process hap
`pens every Working day at a predetermined “cut off” period
`
`10
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`15
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`that separates business days and is refereed to in the industry
`as “settlement”.
`Never before, hoWever, has a transaction been presented
`to the debit netWorks for a real-time authoriZed bill payment
`initiated by the consumer from a touch tone telephone With
`the debit card used as the transaction vehicle. Additionally,
`it has never been done Without the requirement of a PIN
`(personal identi?cation number) and still maintain transac
`tion security. In the TelePay System 10, When a transaction
`is entered by a consumer, and subsequently passed on to an
`outside debit card netWork for authoriZation, a number of
`things happen.
`Assuming that the transaction is authoriZed, then any fee
`that the customer is paying, in addition to the actual bill
`payment, is automatically deducted from the payor’s
`account immediately and added to the amount that the debit
`card netWork Will oWe TelePay and the payee at settlement.
`The amount of the bill that Was paid is automatically added
`to the amount that Will be credited to the payee at the end of
`the business day (every payee is required to provide a bank
`account number that Will be used to electronically credit the
`days receipts). TelePay’s bank account Will, in a like
`manner, be automatically credited for the transaction fee.
`Any netWork usage fees that have to be paid to process the
`transaction by the use of an debit card netWork Will be
`electronically paid by the TelePay system 10 to the appro
`priate service provider. Once a day at TelePay’s settlement
`time, each payee participating in the system Will receive the
`electronic on-line detail summary of the days individual
`transactions for posting to the consumer’s account.
`A ?oWchart illustrating the operation of a bill payment
`transaction process of the TelePay system 10 is shoWn in
`FIGS. 2.1—2.7. The process is initiated by a user’s calling
`into the system 10. In step 200, a general purpose Welcome
`message that announces and instructs the caller in the
`manner With Which the system can be used is transmitted to
`the user via the telephone 12 (FIG. 1.1). In step 202, the user
`is prompted to enter a payee access code, Which is assigned
`by the embodiment of the invention in the form of a service
`and the user is made aWare of this code due to its printed
`presence on the monthly customer statement, statement
`stuffers or other printed handouts. This code is What distin
`guishes one payee from the other, and is the identi?er that
`causes the system 10 (FIG. 1.1) to record the transaction in
`the appropriate payee record ?le.
`After the caller enters the access code, it is electronically
`checked against the list of authoriZed payees participating in
`the system 10 in step 204. In step 206, a determination is
`made Whether the entered access code is valid. If the access
`code is invalid, in step 208, the system 10 checks to
`determine Whether this is the third incorrect entry of an
`access code. If this is not the third incorrect entry of the
`access code, in step 210, the system 10 instructs the caller
`that the access code is invalid, and offers the caller to
`opportunity to re-enter the access code in step 202. If this is
`the third incorrect entry of an access code, in step 212, the
`system 10 instructs the caller to check the access code
`information and call again.
`If the access code is entered properly Within three
`attempts, in step 214, the caller is prompted to enter the
`account number of the bill that they are paying. In step 216,
`the system 10 checks the account number for validity. The
`validity check is based on the methodology that the payee
`uses to verify account numbers and Will vary according to
`payee. The system 10 Will have all of the participating
`payees veri?cation methodologies. This methodology could
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`PayPal Ex.1021, p.13
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`5,870,456
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`be a MOD 10 or MOD 11 check digit routine With or Without
`a check digit in it’s most basic implementation. In a mere
`sophisticated environment, the system Would have in it’s
`database, a list of all the valid account numbers for that
`particular payee, commonly knoWn to those skilled in the art
`as a “shadoW ?le.”
`In step 218 (FIG. 2.2), a determination is made as to the
`validity of the account number entered. If the entered
`account number is not valid, in step 220, a determination is
`made as to Whether this is the third incorrect entry. If it is not
`the third incorrect entry, in step 221 (FIG. 2.1), the caller is
`informed that the entry is invalid and is given an opportunity
`to reenter the account number. If the entry attempt is the
`third invalid attempt, in step 222, the caller is instructed to
`check their information and call again. If a valid account
`number is entered Within three attempts, in step 224, the
`system 10 requests the caller to enter the debit card number.
`In step 226, the debit card number is checked for validity.
`This validity check is done via the MOD 10 algorithm that
`is the basis for debit card issuance used by ?nancial insti
`tutions. Using this method that is commonly used, and
`familiar to those skilled in the art, gives a great level of
`assurance that the number that Was entered by the caller Was
`entered properly. In step 228, a determination is made
`Whether the entered debit card number is valid. If the entered
`debit card number is not valid, in step 230, a determination
`is made Whether this is the third invalid entry. If this is not
`the third invalid entry, in step 232, the caller is instructed of
`the invalid entry and then, in step 224, is requested to enter
`a debit card number.
`If this is the third invalid entry, in step 234, the system 10
`requests the caller to check their information and call again.
`Once a valid debit card number is entered Within three
`attempts, in step 236 (FIG. 2.3), the caller is requested to
`enter the dollar amount (Without a decimal) of the bill to be
`paid. In step 238, the system 10 repeats the entered amount
`to the caller and, in step 240, asks the caller to indicate
`Whether the entry is correct by depressing a key on the
`keypad of the telephone 12. In step 242, a determination is
`made Whether the caller responded that the entry is correct.
`If the entry is not correct, in step 244, a determination is
`made Whether this