WO2014046985A1

WO2014046985A1 - System and method of administering a card-based payment program

Info

Publication number: WO2014046985A1
Application number: PCT/US2013/059850
Authority: WO
Inventors: Jason Andrew MILES
Original assignee: Fsv Payment Systems, Inc.
Priority date: 2012-09-18
Filing date: 2013-09-16
Publication date: 2014-03-27

Abstract

Embodiments of the present invention relate to an electronic payment system. More particularly, recipients who participate in the program have payments, such as wages and/or other benefits paid to stored value cards matched to virtual accounts based on a data element capable of identifying the recipient. Batch pay files are sent to a processing entity responsible for disbursement to the virtual accounts.

Description

SYSTEM AND METHOD OF ADMINISTERING A

CARD-BASED PAYMENT PROGRAM

Field of the Invention

[0001 ] The present invention relates to a card-based payment program for recipients of payments from a common payor, such as employees receiving payment of wages and other benefits from an employer, and, more particularly, to systems and methods for an electronic payment program utilizing stored value cards and third-party processing.

Background of the Invention

[0002] A payroll card is a form of stored value card distributed by an employer to an employee. (The examples described herein refer to payroll cards, employers and employees, but as one skilled in the art will readily appreciate, the invention claimed herein is not limited by such examples and can be readily extended to any circumstances involving recipients of payments from a common payor, such as payments from an insurer to an insured or from a union or association to its members, for example.) In some cases, the employee may not have access to other banking services. Even if the employee does have access to other banking services, the employee may not take advantage of direct deposit. A stored value account linked to a card provides a convenient way for an employer to provide salary or benefits payments to an employee. In the case of such a payroll card, the card is typically loaded by the employer with funds based on the employer's obligation to pay the employee's paycheck and/or benefits. The payroll card functions in a similar manner to a debit card in that it facilitates access to an account containing an amount of money owned by the accountholder to the employee.

[0003] The use of stored value cards for paying salaries and wages, as opposed to issuing checks or performing direct deposits to employees' bank accounts, has become prevalent in some industries in which some employees do not have bank accounts of their own. The stored value cards allow employers to pay employees while saving on printing and processing costs of physical checks and without the security concerns inherent in distributing physical checks to employees. Thus, stored value cards also allow employers to pay their employees in a safe, relatively inexpensive and convenient way.

[0004] Many employers have outsourced to outside businesses the accounting of payments of their employee salaries and wages, along with fulfilling the complex tax withholding requirements of federal, state, and local governments. These external businesses, such as ADP, are sometimes called "payroll services companies." An employer or a payroll services company may also enter a contract with a stored value program manager/provider to supervise the distribution of pay to employees through stored value cards or other means. A stored value program manager/provider may enter a contract with an issuing bank or financial institution and/or branded card service companies, such as Visa™, to provide stored value cards. A payroll services company may also act as a stored value program manager/provider for employers who choose that company's services.

[0005] Some employers have a complex structure that makes distribution of payroll to its employees difficult and expensive. Large employers, such as those having multiple storefronts, outlets, warehouses, or other locations, often have many employees at many different locations, and the roll of employees working at any given location is changing constantly as employees leave the company's employ and are replaced by new ones. For example, national chains of casual dining or fast food restaurants have hundreds or even thousands of stores located in many areas throughout the United States, each store potentially has dozens of employees at each location, and each store's roll of employees may change with each pay period.

[0006] Each location or franchise of a large employer may be located in a different jurisdiction, control its own bank account for paying employees, and retain its own options for other expenses. Because they are located in different jurisdictions certain items are handled and calculated differently in the different locations. [0007] When a pay period ends and it is time to pay salaries and wages, the account associated with each employee's stored value card is funded through ACH or other account transfer means, and then each employee can use his or her card for making payments, just like a branded debit card. Stored value cards typically look like commonly used debit or credit cards and act like a debit card in that the stored value card is tied to an account with a specified amount of money and can be used for any purchase or payment for which a debit card may be used.

SUMMARY

[0008] The present invention may allow for the distribution and management of payroll and payroll services based on the use of virtual electronic employee payment accounts. The use of virtual electronic employee payment accounts may allow the employer to create a payment account to receive funds for an employee who has not yet provided information sufficient to activate a stored value card or direct deposit into an existing bank account. Using an embodiment of the present invention, the payroll services provider or stored value program manager/provider may accept from an employer any suitable electronic file which contains at least one data element capable of identifying an employee, such as an employee identification number ("ID") or any other data value, and an associated amount owed to that employee. Using an embodiment of the present invention, it is not necessary for the employee to have activated a stored value card, provided direct deposit instructions or provided any other personal information to the employer, the payroll services provider or to the stored value program manager/provider. Funds owed to that employee may be paid into the employee's virtual electronic employee payment account, and the employee's activation of a stored value card associated with that account or providing direct deposit instructions may occur at some point in the future, and without the employer having to handle and distribute a physical check to that employee.

[0009] A virtual electronic employee payment account may be created or registered immediately upon receipt of a data element capable of identifying an employee and, at the same time or at a later time, an amount owed to that employee. Upon the creation of a virtual electronic employee payment account, the funds assigned to that account may be made available for use, transfer, payment or other disposition by the employee. Account access may be achieved, in part and among other ways, by correlating at least one otherwise unvalued or not-yet-authorized stored value card with the virtual electronic employee payment account to allow for the removal of funds from the account by the account holder through use of a stored value card. Account access may also be achieved, in part and among other ways, by an employee's providing direct-deposit instructions for transferring the funds from the virtual electronic employee payment account to an actual bank account owned by the employee.

[0010] Using a virtual electronic employee payment account, an employer, payroll services provider or stored value program manager/provider may begin making payments to the employee's virtual account immediately and without the typical delay that occurs while the employer, payroll services provider or stored value program manager/provider waits for the employee to activate a stored value card account or provide direct-deposit transfer instructions. Similarly, using a virtual electronic employee payment account, the employee's stored value card may be lost or stolen, but the inconvenience and cost to the employee may be reduced - as the employee may immediately deactivate the stored value card and, in its place, activate a new stored value card and associate the new card with the employee's virtual electronic employee payment account. Thus at any stage in the employee's employment and/or use of a stored value card, the payments owed to the employee may be paid to the virtual electronic employee payment account, and no physical checks for payment to the employee are necessary.

[0011] As described above, the examples described herein refer to stored value cards used by employers and employees, but as one skilled in the art will readily appreciate, the invention claimed herein is not limited by such examples, and the use of virtual electronic employee payment accounts in other payment system circumstances will be readily apparent. BRIEF DESCRIPTION OF THE DRAWINGS

[0012] The accompanying drawings are included to provide a further understanding of the disclosed embodiments. In the drawings:

[0013] Figure 1 is an authorization link and page according to embodiments of the present invention;

[0014] Figure 2 is an authorization link and statement according to embodiments of the present invention;

[00 5] Figure 3 is a validation method using a data element capable of identifying an employee, such as an employee ID, according to embodiments the present invention;

[0016] Figure 4 is a validation method using a data element capable of identifying an employee, such as an employee ID, according to embodiments the present invention;

[0017] Figure 5 is a cardholder information page and validation using a data element capable of identifying an employee, such as an employee ID, according to embodiments the present invention;

[0018] Figure 6 is a search page according to embodiments the present invention;

[0019] Figure 7 is a detailed account search according to embodiments the present invention;

[0020] Figure 8 is management pages according to embodiments the present invention;

[0021] Figure 9 is a cardholder information page according to embodiments the present invention;

[0022] Figure 10 is an embodiment of the process flow of the present invention;

[0023] Figure 1 1 is an embodiment of the process flow of the enrollment process in a green (mandatory) state;

[0024] Figure 12 is an embodiment of the process flow of the enrollment process in a white (voluntary) state; [0025] Figure 13 is an embodiment of the process flow of new hire payroll card registration and activation of MB cards keyed off of a data element capable of identifying an employee, such as an employee ID;

[0026] Figure 14 is an embodiment of the process flow of existing employee paycard registration and activation of IIB cards keyed off of a data element capable of identifying an employee, such as an employee ID;

[0027] Figure 15 is an embodiment of an employer's white (voluntary) state IVR

(or web) flow;

[0028] Figure 16 is an embodiment of an employer's green (mandatory) state IVR

(or web) flow;

[0029] Figure 17 is an embodiment of processor payroll card loading;

[0030] Figure 18 is an embodiment of payroll batch processing funding flow;

[0031] Figure 19 is an embodiment of exception pay processing funding flow; and

[0032] Figure 20 is network funding flow according to certain embodiments of the present invention.

DETAI LED DESCRI PTION

[0033] Computer-implemented platforms, engines, systems and methods of use are disclosed that provide networked access to electronic payroll services, which may include, for example, the providing of payroll and money management services. Described embodiments of these platforms, engines, systems and methods are intended to be exemplary and not limiting. As such, it is contemplated that the herein described systems and methods can be adapted to provide many types of cloud-based valuations, scoring, marketplaces, and the like, and can be extended to provide enhancements and/or additions to the exemplary platforms, engines, systems and methods described. The invention is thus intended to include all such extensions. Reference will now be made in detail to various exemplary and illustrative embodiments of the present invention.

[0034] When the payroll program is first implemented by an employer, existing employees may opt to receive wages, salary, or other payments via stored value cards and may thus receive non-personalized, instant-issue-branded ("I IB") cards, which may be sent to the employer's work locations (each "Workplace") (which may be nationwide) via a secured carrier such as FedEx or UPS, for example. Similarly, newly hired employees who opt to receive wages, salary, or other payments through a stored value card may receive an MB cards directly from an employer at their Workplace.

[0035] The stored value MB cards may be shipped in one or more secured boxes per individual Workplace to ensure inventory management, which boxes may be individually labeled with identifying Workplace information, and shipped direct from the card manufacturer, the payroll services company or the stored value program manager/provider to the designated Workplaces for distribution to employees.

[0036] In some embodiments, an employee may voluntarily upgrade his or her MB card to a personalized stored value card. In such a case, the personalized stored value card may be mailed via USPS or other means directly to the employee's address on record or distributed to the employee at the Workplace. A personalized stored value card may also include an aspect identifying the owner of the card, such as, for example, a photograph or signature of the owner. Personalized stored value cards may further be selected from a predetermined design collection offered by the card issuer and may include custom designs selected by the employee. .

[0037] Funds earned by or otherwise owed to an employee may be electronically designated to the employee by the employer utilizing a batch load process. In such process, the employer transmits a batch load data file to a processing entity such as a payroll services company, a stored value program manager/provider or some other entity (hereinafter, a Processor) and transfers funds (by wire transfer, check, automated transfer or other means) to a bank for the sum of all net payroll to be loaded to the cards corresponding to the batch load data file.

[0038] A data element capable of identifying an employee - such as an employee

ID - may be created or provided by the employer, the employee or the Processor and used by the employer and the Processor to link each specific employee to one virtual electronic employee payment account. This virtual electronic employee payment account may be linked later to a stored value IIB card, a personalized stored value card, direct-deposit transfer instructions or other means for accessing the funds associated with this account, such as ACH transfer. Thus, the employer may direct funds to be paid to a virtual electronic employee payment account without waiting for the employee to activate a stored value IIB card or personalized stored value card or provide direct-deposit transfer instructions. The data element capable of identifying an employee, such as the employee ID, may be used to identify the virtual electronic employee payment account, or the Processor may create a separate account number to identify this virtual account and associate the virtual account number with the data element capable of identifying an employee.

[0039] The employer may also need to take into account various state laws and regulations that may require that employees give consent before being paid through a stored value card. As discussed herein, "green" states are defined as states in which the employer's default payment type may be through a stored value card, with no consent required from an employee. "White" states, in contrast, are defined as states in which the employer's default payment type may be through a check, and the employer may be required to obtain consent from the employee for payment of salary or other benefits through a stored value payroll card. Thus, for employees in voluntary or "white" states, the employer may request the creation of a virtual electronic employee payment account within a batch load but may not deposit funds into this virtual account unless consent has been received for that employee.

[0040] In general, ilB cards, collateral, and enrollment materials may be tailored to each individual employer and may further allow for different versions to be used for mandatory (green) versus voluntary (white) stored value payroll card states. As discussed herein, activation of an IIB card by an employee may be completed telephonically by Integrated Voice Response (IVR) or through a web interface, as illustrated in Figures 1 -2. Activation is based upon an a data element capable of identifying an employee, such as an employee ID. The employee uses this data element capable of identifying the employee to link any stored value card to the employee's virtual electronic employee payment account, and the virtual electronic employee payment account is independent of any particular MB card. Thus, an employee may associate any MB card or personalized stored value card with the employee's virtual electronic employee payment account once the employee activates that card by providing the data element capable of identifying the employee, such as an employee ID, into the system of the present invention through IVR, web interface or other means. The employee may also choose to have funds removed from the virtual electronic employee payment account and direct-deposited into the employee's actual bank account, or the employee may instruct that the funds in his or her virtual electronic employee payment account to be split into two or more portions and may give separate instructions for the payment, transfer or disposition of each portion. For example, and as discussed in more detail herein, a new or existing employee may obtain an otherwise unassociated or "blank" MB card from any source, such as from the employer or Processor, and may associate the new MB card with the employee's virtual electronic employee payment account through the means discussed herein. In this way, for example, even an employee who has lost an active stored value MB or personalized card may deactivate the lost card, obtain a new, blank MB card immediately from his or her employer and then activate the new card through the system's IVR or web interface. In an embodiment of the present invention, a reporting file may be sent to an employer detailing activations made on behalf of employees of that particular employer, such as employee activations in voluntary (white) states, for example.

During a payroll program rollout, there may be both existing employees and new hires. For existing employees in mandatory (green) electronic payroll states, for example, employees may be asked to enroll in direct deposit via the employer's normal direct deposit enrollment process or to elect to receive payment via a stored value payroll card, such as through an open enrollment kit describing the payment choices and enrollment instructions. For each enrolled employee, the employer may transmit a registration data file to the Processor that may include selected information including, for example, a data element capable of identifying the employee, such as an employee ID, name, date of birth, Social Security number (SSN), phone number and an address, such as a postal and/or email address. As discussed above, it is not necessary to associate any employee with any stored value card during the registration process. Rather, the information provided by the employer during the registration process is used to create the virtual electronic employee payment account.

[0042] Upon hiring or during rollout of a payroll program embodying the present invention, an employee may be provided with an IIB card (e.g., from the employer's inventory) and instructions to activate the card, through IVR, web, live customer service contact or other means, for example. As illustrated in Figures 3-5, an employee may activate the IIB card and associate the card with a particular virtual electronic employee payment account by providing his or her data element capable of identifying the employee, such as an employee ID. Additional information may be required for security purposes, such as the employee's date of birth, SSN, a password or personal identification number or other security query. Similarly, an employee may be required to provide his or her last name, employer identifying information, and any combination of the following: employer- or employee-created pass code, employee zip code, employee SSN, or telephone number.

[0043] Once a batch load file is received, the Processor may create (or "register") for each employee at least one virtual electronic employee payment account within the present invention and may assign an amount of funds to that account according to the employer's payment instructions. Thereafter, the Processor may receive activation instructions for an IIB or personalized card from the employee, and in response thereto, may link the corresponding card to the at least one virtual electronic employee payment account created for the employee.

[0044] As illustrated in Figures 6-9, and as discussed herein, a user interface may be provided to allow for employee and employer access to the virtual electronic employee payment accounts created within the system. A user of the system may thus sort, search, and categorize payroll program information and those with such virtual electronic employee payment accounts, for example.

[0045] In an embodiment of the present invention, an employer may periodically submit a batch load data file, such as on a daily basis, for example, to a Processor that includes a data element capable of identifying an employee, such as an employee ID, date of birth, name, SSN, phone number, address, or other data values sufficient to identify that employee, for example. After receipt of such a batch load data file, the Processor may register an employee to at least one virtual electronic employee payment account and may populate the virtual account with funds designated as owned/earned by the employee. As described herein, an employer may also provide information regarding the amount of money earned by the employee and transfer sufficient currency and/or currency equivalents to add to the at least one virtual electronic employee payment account an amount equal to that owed to the employee by the employer. Batch load data files for employees working in mandatory (Green) paycard states may be posted to the employees' virtual electronic employee payment account as the default payment mechanism - that is, without obtaining an employee's consent to the payment mechanism. In voluntary (White) paycard states, an employer may be required to obtain an employee's consent (through written signature, electronic signature such as eSign or other means for example) before including the employee's information in a batch load file.

[0046] As illustrated in Figure 10, the present invention may allow for the receipt of at least one batch load data file by a receiver 1210, which may validate the source, format and content of the batch load data file before forwarding the validated information to an account creation engine 1220. The received information may be written and/or compared to database 1230 to add new records and to update existing records, respectively. If, for example, a particular employee of a particular system using employer is preexisting in the system, the updated employee information may be passed to an account management function 1240. The account manager may then calculate the amount owed to a particular employee account 1250 and may allocate such funds from system account 1280 which may receive monetary funds from users of the system.

[0047] An employee newly added to the system may have his or her information stored in database 1230 and may have at least one virtual electronic employee payment account created by account creation engine 1220. The account creation engine may also inform the card activation module 1260 that a new employee has been added to the system. Card activation 1260 may then send correspondence to the employee, through email, for example, to alert the employee of the newly formed virtual account and how to access the account and activate at least one stored value MB or personalized card. Similarly, an employee may activate a stored value card through card activation module 1260 through user interface 1270 and may associate at least one stored value MB or personalized card with an employee in database 1230.

[0048] In an embodiment of the present invention, and as illustrated in Figure 10,, an employer may send the batch load data file, as described above, and transfer funds to cover the payment of salary or other amounts owed to those employees identified in the batch load data file. The timing of the two transactions need not be contemporaneous and may not likewise be similarly periodic. For example, an employer may send a batch load data file at the close of every business day updating the system as described above while the funds necessary to cover the salary allocations required by the load file to the accounts 1250 may be received by system account 1280 on a weekly or monthly basis, for example. In this way, the employee arid employer may closely track the amount of time being worked, such as on a daily basis, while actual payment of amounts owed to an employee can occur on a more traditional basis, such as weekly, biweekly or monthly, for example.

[0049] Similarly, a new, non-activated IIB card (e.g., from the workplace inventory) may be provided to an employee with instructions to activate the card via IVR (not shown) or the web interface 1270 using his or her data element capable of identifying the employee, such as his or her employee ID, SSN, date of birth, for example. The MB card activated by the employee may be thereafter linked to the virtual electronic employee payment account created for the employee through the account registration record. As before, when appropriate, the employer may transmit a batch load data file to the system which may initiate creation of a virtual electronic employee payment account. The batch load data file used to create a virtual electronic employee payment account may also contain instructions for payment of funds to the virtual account, or the instructions for payment of funds to the virtual account can be transmitted in a separate batch load data file or through other means.

[0050] By way of further example, in voluntary (white) electronic payroll states, during a payroll program rollout, there may be existing employees and new hires. For existing employees, the Processor may prepare materials to inform employees of their pay choices and provide a deadline for election, such as by email notification, for example. During the initial roll-out period, employees may receive an information kit describing their payment choices and enrollment instructions. The kit may also contain a new, non- activated MB card. Employees choosing to be paid via the stored value MB card may activate the card and, during the activation process, may further consent to be paid electronically via the card and to receive wage statements electronically. An embodiment of the present invention may log such a consent along with the employee's records at database 1230 and provide the employee the ability to view and print the consent from the cardholder website interface 1270 or to request a copy to be mailed by calling customer service, for example. Where required by law, the Processor may mail a hard copy of the consent to the employee's address on file.

[0051] For new hires in voluntary (white) electronic payroll states, such employees may be similarly provided with a new-hire information kit describing their pay choices and activation instructions. As described above, employees may choose to be paid via the card or via direct deposit, each of which may be facilitated through an embodiment of the preset invention.

[0052] In some embodiments of the present invention, the Processor may provide an employer with an integrated electronic wage statement program including employees electing payment through direct deposit and/or stored value cards (including MB cards, personalized cards or others). For each pay period, for example, an employer may transmit a batch load data file to the Processor, based on predefined specifications, detailing each employee's wage statement. Such a file may include gross pay, hours worked, year to date and for the current period, and details such as income sources, tax withholdings, deductions, benefit contributions, savings withholdings, vacation, and/or other items as defined by the employer.

[0053] Through at least interface 1270, employees and other users of the system may have the ability to access system information in a variety of ways. For example, an employee may be able to view a prior payment and transaction history, such as information at least sixteen months old, and may be able to access account statements, as would be recognized by those skilled in the art. Employees may further view and/or print full wage statements, such as weekly or monthly pay stubs and/or W-2s, for example. Through IVR, a toll free number may be available for employees to call and listen to their last period summary information, such as hours worked, gross pay, total deductions, net pay, current balance (for employees using a stored value card), for example. In addition, employees may voluntarily opt-in to receive text message alert summaries that may provide similar information and may further include targeted message and/or advertisements directed to the employee. Such information may also be obtained through the use of other known communication means, such as, for example, email, facsimile, traditional mail and point-of-service (POS) terminals where, for example, an employee may be able to access his or her account and print wage statements and other relevant information. In an embodiment of the present invention, the Processor may further provide the employer with an electronic W-2 product suite which may enable employees to access annual W-2 and other year-end form information electronically via the Internet from any web-enabled computer. The product suite may also provide an electronic employee-election tracking and consent web-based tool for employees to enroll in electronic W-2s according to IRS regulations. In addition, optional components may be made available to the employer such as print-ready files or CD-ROMs, W-2 form printing and mailing, federal forms W-2 e-filing, and archiving, for example.

As another aspect of the system, an employee may also elect to open a savings account or other investment product and direct funds to be deposited into this savings product as part of the activation process. Such savings products may include, for example, portioning of earned funds into at least a second virtual electronic employee payment account which may include an interest rate and/or dividend in favor of the employee, the purchasing of a third-party product, such as, for example, a CD, bond, or security, and/or the investment in a full-featured savings product, such as, for example, a 401 (k) account. Each account associated with an employee, regardless of whether or not the employee intends to use the account for saving money, may include an interest bearing feature in favor of the employee.

In an embodiment of the present invention, an electronic consent process may capture and time-stamp, via IVR or web interface, the consent and version of terms agreed to by the employee. The process may allow for the viewing and printing of such a history and may include the functionality associated with an electronic signature process such as eSign, for example. Moreover, an IVR or web interface may also automatically generate a consent letter for persons employed in states that require it and may provide a live customer service representative with the ability to communicate consent letters upon request.

In an embodiment of the present invention, the stored value card may offer features such as financial network transactions (further described below), interest bearing savings, various "cash back," "miles" or "points" rewards programs such as those provided by Cardlytics, for example, bill payment services such as those provided by MasterCard Remote Payment and Presentment Service (RPPS) to online bill pay recipients, online check or bill payment services, card-to-bank transfer services, money transfer services such as those provided by Western Union for example, convenience checks on demand made payable to the employee or any third party, card-to-card transfers, companion cards, and text, email or other electronic alert services triggered to any relevant account function or transaction. For example, financial network transactions include Allpoint ATM ("in network"), Money Pass ATM ("in network"), Bank ATM ("in network"), other ATM ("out of network"), point-of-service (POS), automated clearing house (ACH) transfers, and bank branch manual disbursement. An employee may also be offered overdraft protection similar to a traditional bank checking account.

[0058] Figure 1 1 illustrates an embodiment of the process flow of the registration process in a green (mandatory) state. At 101 , the employer may create a registration file of all existing employees and new hires to send to the Processor. Thereafter, employees may be informed, by the Workplace manager, for example, of payment choices, and the Processor may create at least one virtual electronic employee payment account for each employee based on at least a data element capable of identifying the employee, such as for example an employee ID. In certain embodiments, advance notice may be provided in accordance with state requirements for electronic payroll after the end of the registration period.

[0059] At 102, after employees (i.e., existing employees and new hires) are provided information kits, the employees may elect to receive salary and other payments either through direct deposit or stored value card (which may be designated by the employer as the default choice). In general, the information kit may include, for example, a new, non-activated IIB card, instructions on pay choices and card activation, a direct deposit enrollment form, a cardholder agreement terms and conditions, and other cardholder materials such as instructions for use, brochures, and the like. Once the virtual electronic employee payment accounts have been registered by the Processor, an employee's first live pay (FLP) may be deposited into the employee's virtual account even before the employer or Processor has received direct-deposit or activation instructions from the employee.

[0060] If an employee elects direct deposit, 103, the employee may complete a direct deposit enrollment wherein the employer may then log into a direct deposit payroll system, such as one provided by Lawson for example, and perform a pre-note process to validate the employee's account and routing information before money is actively transmitted. There may be a delay in receiving the employee's direct deposit enrollment instructions and validating the employee's account and routing information. During this delay, the FLP and amounts owed for any subsequent pay periods may be paid to the employee through his or her virtual electronic employee payment account, which the employee may access through a stored value MB card rather than by live check. Thereafter, the employer may pay the employee according to the employee's direct-deposit instructions, until receiving subsequent instruction from the employee.

[0061 ] In the event the employee elects the use of an stored value card, which in a mandatory (green) state may be a default selection absent any decision by the employee, the electing employee may activate the card 104 using a data element capable of identifying the employee, such as for example his or her employee ID, which will cause the at least one virtual electronic employee payment account 1250 identifier to be linked to the stored value card account. Thereafter, the Processor may register the stored value card account to the virtual electronic employee payment account number using the data element capable of identifying the employee, such as an employee ID,^" and validation occurs. Processor may then send a file with an activation flag to the employer, who may flag the data element capable of identifying the employee, such as an employee ID, for payment through a stored value card, such as using a system provided by Lawson, for example. Thereafter, the employer pays such employees using the data element capable of identifying an employee and the employee's virtual electronic employee payment account, and the employee may access his or her funds through the stored value card.

[0062] Figure 12 illustrates an embodiment of the process flow of the enrollment process in a voluntary (white) state. At 201 , the employer may create a registration file of all existing employees and new hires to send to a Processor. Thereafter, the employees may be informed of various payment choices, for example, and a Processor may create virtual electronic employee payment accounts for the employees based on a data element capable of identifying an employee, such as for example an employee ID.

[0063] After an employee (i.e., an existing employee or new hire) is provided with an information kit, at least one registration file 201 is created, and the employee may elect a payment option as discussed above. For example, in the event an employee elects direct deposit 204, the employee may complete and submit a direct-deposit enrollment. Thereafter, the employer may log into a direct deposit management program, such as Lawson, and perform a pre-note process to validate the employee's account and routing information before money is actively transmitted.

[0064] In the event of stored value payroll card election 205, the electing employee may activate the card using a data element capable of identifying the employee, such as for example an employee ID, as the basis for activation. The employee's activation links the stored value MB or personalized card to the employee's virtual electronic employee payment account and may include a request for the employee's consent to receive payment through a stored value card. The Processor may then send at least one file with an activation flag to the employer to alert the employer to the transaction and the choice made by the employee. Thereafter, the employer may pay such employees by assigning a value for the time worked, for example, to the employee's virtual electronic employee payment account. Such payment information may be included in a load file which may be captured and/or sent from existing payroll management system, in addition to being entered directly into a system by an employer. [0065] Figure 13 illustrates an embodiment of the process flow of new hire payroll card registration and activation of stored value cards (MB or personalized) through the use of a data element capable of identifying an employee, such as an employee ID. At step 301 , after a new employee is hired, a workplace manager, for example, may enter standard data in an ISP, for example, and may give to the new employee a stored value MB payroll kit card packet with instructions to activate in 24 hours. At step 302, the employer may update a program with an employee's information and may send a Processor a registration file. The registration transaction may include, for example, an employee ID, name, date of birth (DOB), address, phone number, and the like. In the embodiment illustrated in Figure 13, IIB card account information is not provided in the registration transaction.

[0066] In an embodiment of the present invention, A Processor may thereafter receive a registration file and may create a virtual electronic employee payment account, which may be further allocated a particular amount of funds that may be FDIC insured or covered by Visa/MasterCard Zero Liability once deposited into the virtual account, regardless whether the IIB card has been activated or not.

[0067] Within a reasonable period of time, such as 24 hours, for example, the employee at step 303 may activate an IIB card via IVR or web interface. For example, an employee may enter an IIB card number, a data element capable of identifying the employee, such as an employee ID, and DOB to activate the card. In an embodiment of the present invention, the IVR and web interfaces include messages confirming the employee's consent or acceptance of the stored value card as a form of payment of wages. At step 304, a Processor may validate a received data element capable of identifying the employee, such as an employee ID, and DOB entered against information provided by the employer to create the virtual electronic employee payment account.

[0068] Once an activation request is validated, the stored value IIB or personalized card is linked to the employee's virtual electronic employee payment account at step 305 created from the registration file, and the stored value card is activated. The employee may then be prompted to select a security function, such as a PIN, and/or optionally consent to the use of text alerts to complete the process, for example. If the card and/or account is not validated, the employee may be informed, step 306, during the IVR or web process to try again in 24 hours, for example, to ensure account data is available.

[0069] Fig. 14 illustrates an embodiment of the process flow for registration of a virtual electronic employee payment account for an existing employee and activation of a stored value II B or personalized card using a data element capable of identifying that employee, such as an employee ID. At step 401 , a Workplace manager may distribute MB cards from inventory to existing appropriate employees, who are also instructed to activate the cards in order to access funds in the employees' virtual electronic employee payment account. At step 402, the employer may update or create at least one registration file for each employee through the Processor. Such a registration transaction may include, for example, a data element capable of identifying an employee, such as an employee ID, name, DOB, address, and the like. At step 403, the Processor thereafter may receive the registration file and may create or update at least one virtual electronic employee payment account.

[0070] At step 404, an employee may activate a newly-distributed MB or personalized card via IVR or web interfaces. For example, an employee may enter the stored value card number, a data element capable of identifying the employee, such as an employee ID, and DOB to validate and activate the card. In an embodiment of the present invention, IVR and web interfaces include messages confirming the employee's consent or acceptance of the stored value card as a form of payment of wages. At step 405, the Processor validate a received data element capable of identifying the employee, such as an employee ID, and DOB entered against information provided by the employer to create the virtual electronic employee payment account, as illustrated in Figure 10.

[0071 ] When validated, the employee's stored value MB or personalized card may link to the employee's virtual electronic employee payment account created from the registration file at step 406, which may then allow the stored value card to be activated. The employee may then be prompted to select a PIN and optionally enroll in text alerts to complete the process, for example, as discussed above.

[0072] Figure 15 illustrates an embodiment of an employer's white (voluntary) state IVR (or web) flow. At step 501 , an employee may utilize the IVR interface and, after choosing the appropriate language, may be prompted with a choice of whether the employee is a new hire or seeks a card replacement. If an employee is merely seeking a card replacement, the employee may be transferred to a live customer service representative (CSR) to perform a standard card replacement procedure, for example.

[0073] For new hire activation, the employee may be prompted to enter a 16-digit stored value card number and a data element capable of identifying the employee, such as an employee ID at step 502. The Processor may thereafter match the employee to a virtual electronic employee payment account, and the employee may then be queried as to whether or not the employee consents to receive payment of wages through his or her stored value card. For example, utilizing a program such as eSign, consent language may be read to the employee. If the employee consents to receive payment of wages through the stored value card, the employee's DOB may be validated, and the employee may select a PIN number and may optionally enroll in a text message alert service. Finally, employer instructions may be provided, and the call may end. Further, the employee may be advised that he or she may view and print a copy of the consent form online or call customer service to request a copy of the consent to be sent to the employee by mail. In states that require a written copy of the consent to be provided, the Processor may have such consent forms mailed^' to the employee at the address given by the employer upon registration of the virtual electronic employee payment account. At step 503, if the employee does not consent to receive wages through the stored value card, further IVR or CSR options may be available.

[0074] Figure 16 illustrates an embodiment of an employer's green (mandatory) state IVR (or web) flow. At step 601 , an employee may call the IVR interface and, after choosing the appropriate language, may be prompted with a choice of whether the employee is a new hire or seeks a card replacement. If employee is merely seeking a card replacement, the employee may be transferred to a live CSR to perform a standard card replacement procedure, for example.

[0075] For new hire activation, the employee may be prompted to enter a 16-digit stored value card number and a data element capable of identifying an employee, such as an employee ID at step 602. The Processor may thereafter match the employee to a virtual electronic employee payment account. Further, the employee's DOB may be validated, and the employee may select a security PIN number and may optionally enroll in a text alert service. Finally, employer instructions are provided and the call ends.

[0076] Figure 17 illustrates an embodiment of the Processor payroll card loading.

At step 701 , the employer may generate at least one batch load file using a data element capable of identifying an employee, such as employee IDs, which may be sent to the Processor. With each data element capable of identifying an employee, the employer may associate other data fields to be linked with that data element, and the employer may also include the net amount to be paid to that employee for the relevant pay period. The employer is not required to provide any data to the Processor regarding a stored value card that may have been distributed to an employee. At step 702, the Processor may receive a batch load file including data elements capable of identifying employees, such as employee IDs, and the net pay amount associated with each employee, for example.

[0077] At step 703, the Processor may match a data element capable of identifying an employee, such as an employee ID, to a corresponding virtual electronic employee payment account and post a payroll deposit load. The employee's virtual electronic employee payment account may be then credited, and the employee/account holder may be notified of the load via text alert, for example. The Processor may then send the employer confirmation of the successful load(s) and any error record(s). As discussed herein, funds paid to each employee's virtual electronic employee payment account are preferably FDIC insured once deposited to a virtual account regardless whether a stored value card linked to the virtual account has been activated or not. In white (voluntary) states, a card activation file may also be sent to an update program concerning the identity of employees who have consented to receive wages through a stored value card. As also discussed hereinabove, an employer may transmit payment of wages to employees through the virtual electronic employee payment accounts even if the new hire has not yet activated a card. As soon as the card is activated, the funds may be available for use by the employee. In this way, an employee may obtain a replacement stored value card on payday or any other day if an earlier stored value card is lost or not activated; in any case funds may be available immediately.

[0078] Figures 18a-b illustrate an embodiment of payroll batch processing funding flow. As illustrated in Figure 18a, the stored value card funding process may occur through a financial institution settlement account and may occur prior to a payroll batch processing as illustrated in Figure 18b. Figure 18a illustrates the employer originating an ACH to the Bank's routing transit number (RTN) and 13-digit account number the day before payday, with a next day posting date, for example. The Bank receives the funding and notifies the Processor that funds are received in the settlement account. The Processor credits the employer's disbursement account. In certain embodiments, Bank establishes a funding agreement with the employer to allow daylight overdraft.

[0079] Following the process illustrated in 18a is the payroll batch processing illustrated in 18b. An employer may upload a batch file to the secure FTP website, for example. The Processor may then pre-process an employer's file and send a confirmation communication, such as an email, with the total account funding required for ACH transfer. The Processor may then process the employer's file based on a date/time stamp, for example. The employer's disbursement virtual account may then be debited.

[0080] Exception pay processing funding flow, as illustrated in Figure 19a, may occur prior to the payroll batch processing illustrated in Figure 19b. Figure 19a illustrates a employer originating an ACH to a third party bank's RTN and account number, for example, each day for that day's off-cycle payments. The bank may receive the funding and may notify the Processor that funds are received in the settlement account(s). The Processor may then credit the employer's adjustment account. In an embodiment of the present invention, the bank may establish a funding agreement to allow daylight overdraft.

[0081 ] Following the process in 19a is the payroll batch processing illustrated in

19b. The employer may upload a batch file to the Processor secure FTP website, for example, for off-cycle payments. The Processor may process the employer's file and send a confirmation communication, such as an email, with the total account funding required for ACH transfer. The Processor may then process the employer's file within minutes of receipt (e.g., 20 minutes, for example). The employer's adjustment virtual account may then be debited.

[0082] Figure 20 illustrates a network funding flow according to an embodiment of the present invention. At step 1001 , the employer may fund virtual disbursement accounts by initiating a next day ACH of funds to the issuer aggregate account (e.g., a routing transit number (RTN) and a 13-digit demand deposit account (DDA)). At step 1002, the Processor may load the virtual electronic employee payment accounts with the amount of funds that were received from the employer via batch files sent from the employer. The Processor may process batch file(s) based on instructions from the employer and the verification of funds available to the Processor.

[0083] At step 1003a, an exemplary gateway for the Processor may send daily settlement wires to MasterCard, Cirrus, Acel/Exchange, MoneyPass, and/or AllPoint, and the like. Further, at step 1003b, the exemplary gateway may debit an issuer aggregate account via ACH debit daily for financial transaction settlement. In such an example, the exemplary gateway may provide the Processor, as program manager, daily reconciliation reports. Similarly, the Processor may pull reports daily and posts transactions to the virtual accounts and, at step 1004, may debit the issuer the aggregate account for network fees daily. [0084] At step 1005, the Processor may fund the negative balance reserve (NBR) account monthly according to contract terms. When negative balance accounts are written off, the Processor notifies the concerning bank, and the bank may transfer funds from an NBR account to reimburse the funding account for the write-offs. Finally, at step 1006, cardholders may optionally transfer funds from their card account to a savings account by initiating a funds transfer. Funds may be withdrawn from the savings account by transferring back to the card account. A bank may complete an internal funds transfer from an issuer aggregate account to an issuer aggregate savings account (and back) for the previous day's transfer activity between the card account and corresponding savings account.

[0085] Those of skilled in the art will appreciate that the herein described systems and methods are susceptible to various modifications and alternative constructions. There is no intention to limit the scope of the invention to the specific constructions or embodiments described herein. Rather, the herein described systems and methods are intended to cover all modifications, embodiments, alternative constructions, and equivalents falling within the scope and spirit of the invention and its equivalents.

Claims

1 . An electronic payment processing system, comprising:

a computer capable of executing instructions and reading and writing information to a storage medium, the computer comprising a processor;

a non-transitory computer readable storage medium having encoded thereon computer executable instructions for providing at least one account creation engine for receiving at least one electronic registration file comprising at least one data element capable of identifying at least one recipient of funds and creating at least one virtual account for the at least one recipient;

an account management module for transferring monetary funds from at least one funds repository to the at least one virtual account; and

a card activation engine capable of associating at least one stored value card to the at least one virtual account, wherein the stored value card is authorized to remove funds from the associated at least one virtual account.

2. The electronic payment processing system of claim 1 , wherein the at least one virtual account further comprises a plurality of virtual accounts.

3. The electronic payment processing system of claim 1 , wherein the electronic registration file comprises, for the at least one recipient, a name, the at least one data element capable of identifying the at least one recipient, a date of birth, and an address.

4. The electronic payment processing system of claim 3, further comprising a verification module for verifying the data element capable of identifying the at least one recipient and a corresponding date of birth against the at least one electronic registration file.

5. The electronic payment processing system of claim 1 , wherein the at least one recipient selects a PIN number.

6. The electronic payment processing system of claim 1 , wherein the system provides to the at least one recipient text alerts.

7. The electronic payment processing system of claim 1 , wherein the at least one electronic registration file further comprises an amount of funds to be paid to the at least one recipient.

8. The electronic payment processing system of claim 1 , wherein funds are available upon the at least one recipient's activation of the at least one stored value card.

9. The electronic payment processing system of claim 1 , wherein the at least one recipient activates the at least one stored value card through means selected from the group consisting of a web interface, a mobile application and an integrated voice response telephone system.

10. The electronic payment processing system of claim 1 , further comprising:

a funds transfer engine capable of receiving and executing at least one instruction from the at least one recipient regarding a transfer of funds from the recipient's at least one virtual account to at least one repository designated by the at least one recipient.

1 1. The electronic payment processing system of claim 10, wherein the at least one instruction transfers a portion of funds less than a total amount of funds present in the recipient's at least one virtual account.

12. The electronic payment processing system of claim 1 , wherein the at least one recipient is an employee and the monetary funds are funds owed to the employee by an employer.

3. The electronic payment processing system of claim 12, wherein the data element capable of identifying the at least one recipient is an employee identification number.

14. The electronic payment processing system of claim 12, wherein the card activation engine further comprises a module for requesting and recording consent from the employee for receiving the funds through the at least one stored value card.

15. A method of administering electronic payment processing, comprising: receiving, from a remote location, at least one electronic registration file comprising a data element capable of identifying at least one recipient of funds;

using a computer capable of executing instructions and reading and writing information to a storage medium, the computer comprising a processor, to create at least one virtual account for the at least one recipient;

transferring monetary funds from at least one funds repository to the at least one virtual account; and

activating at least one stored value card to the at least one virtual account by the at least one recipient, wherein the stored value card is authorized to remove funds from the associated at least one virtual account.

16. The method of claim 15, wherein the at least one virtual account further comprises a plurality of virtual accounts.

17. The method of claim 15, wherein the electronic registration file comprises, for the at least one recipient, a name, the at least one data element capable of identifying the at least one recipient, a date of birth, and an address.

18. The method of claim 17, further comprising:

verifying the data element capable of identifying the at least one recipient and a corresponding date of birth against information received from the at least one electronic registration file.

19. The method of claim 15, further comprising:

selecting a PIN number.

20. The method of claim 15, further comprising:

providing to the at least one recipient text alerts.

21. The method of claim 5, wherein the at least one electronic registration file further comprises an amount of funds to be paid to the at least one recipient.

22. The method of claim 15, further comprising:

making funds available upon the at least one recipient's activation of the at least one stored value card.

23. The method of claim 15, wherein the at least one recipient activates the at least one stored value card through means selected from the group consisting of a web interface, a mobile application and an integrated voice response telephone system.

24. The method of claim 15, further comprising:

receiving and executing at least one instruction from the at least one recipient regarding a transfer of funds from the recipient's at least one virtual account to at least one repository designated by the at least one recipient.

25. The method of claim 24, wherein the at least one instruction transfers a portion of funds less than a total amount of funds present in the recipient's at least one virtual account.

26. The method of claim 15, wherein the at least one recipient is an employee and the monetary funds are funds owed to the employee by an employer.

27. The method of claim 26, wherein the data element capable of identifying the at least one recipient is an employee identification number.

28. The method of claim 26, further comprising:

requesting and recording consent from the employee for receiving the funds through the at least one stored value card.