WO2019027447A1

WO2019027447A1 - System and computer-implemented method for managing finances for sellers in an integrated closed loop system

Info

Publication number: WO2019027447A1
Application number: PCT/US2017/044892
Authority: WO
Inventors: Johannes Janse Van Rensburg
Original assignee: Aci Worldwide Corp.
Priority date: 2017-08-01
Filing date: 2017-08-01
Publication date: 2019-02-07

Abstract

A system and method for managing the finances of a seller in a closed loop payment system in which the seller has accounts at multiple banks at which its customers have accounts. A financial management solution software application monitors the activity and balance of each account, determines an aggregate balance, and reports this to the seller. The solution allows the seller to initiate or schedule a payment from a particular account, and determines whether the particular account has sufficient funds, and if so, makes the payment. If not, the solution sweeps funds from other accounts into the particular account until it contains sufficient funds to make the payment, and if sufficient funds are not available, communicates an alert to the seller. The solution may select or allow the seller to identify the particular account, the other accounts, and the order of the other accounts from which funds are swept.

Description

SYSTEM AND COMPUTER-IMPLEMENTED METHOD FOR MANAGING FINANCES FOR SELLERS IN AN INTEGRATED CLOSED LOOP SYSTEM

FIELD

[0001] The present invention relates to systems and methods for managing finances across multiple accounts, and more particularly, embodiments concern a system and computer- implemented method for managing finances for sellers across multiple bank accounts in an integrated closed loop payment system.

BACKGROUND

[0002] The majority of digital payments are performed within a so-called "four party" model. In this model, the payer (a customer) and the payee (a seller) have bank accounts at different banks, so each payment between the payer and the payee must be settled between the two banks. This results in significant overhead and complexity to ensure that every transaction is properly settled and that all funds are transferred from and to the correct accounts in the correct banks.

[0003] Some digital payments are performed within a "three party" model. In this model, the payer and the payee have bank accounts at the same bank, so each payment only requires transferring funds from the payer's bank account to the payee's bank account. In particular, there is no need for inter-bank settlement because there is no movement of funds between different banks, so the transaction can be completed more quickly and with less complexity. This type of arrangement is also referred to as a "closed loop" system or a "direct connect" system.

[0004] If a seller were to open bank accounts at each of the same banks at which its customers have accounts, the seller would effectively create many closed loops and reduce or eliminate the inter-bank settlement problem. However, while the payment transactions would clear and the funds would be available substantially immediately, the seller would have to manage the funds in many different bank accounts at many different banks. This could be problematic for several reasons, including that it would be difficult for the seller to have an accurate understanding of the total funds available in all the of different accounts at any given time, and in order to make a payment (to, e.g., a supplier) out of a particular account, the seller would need to ensure that there are sufficient funds in the particular account, and if there are not, manually transfer funds from one or more of the other accounts into the particular account until there are sufficient funds.

[0005] This background discussion is intended to provide information related to the present invention which is not necessarily prior art.

SUMMARY

[0006] Embodiments of the present invention solve the above-described and other problems and limitations by providing a system and computer-implemented method for managing finances for sellers across multiple bank accounts in an integrated closed loop payment system.

[0007] In a first embodiment of the present invention, a system is provided for managing the finances of a seller in a closed loop payment system, in which the seller may have a plurality of accounts at different banks. The system may comprise a seller's device storing and executing a financial management solution software application. The software application may be configured to monitor the activity and balance of each of the accounts, determine the aggregate balance, and make this information available to the seller. The software application may further allow the seller to initiate or schedule a payment to a creditor from a particular account at a particular bank, and determine whether the particular account from which to make the payment contains sufficient funds to make the payment. If the particular account contains sufficient funds, then the payment may be made. If the particular account does not contain sufficient funds, then funds may be swept from one or more other accounts of the plurality of accounts into the particular account until the particular account contains sufficient funds, and then the payment may be made. However, if sufficient funds cannot be swept into the particular account, then an alert may be communicated to the seller.

[0008] In a second embodiment of the present invention, a computer-implemented method is provided for improving the functioning of a computer for managing the finances of a seller in a closed loop payment system, in which the seller has a plurality of accounts at different banks. The computer-implemented method may include the following steps performed by a financial management solution software application stored on and executed by the computer. The activity and balance of each of the accounts may be monitored, the aggregate balance may be determined, and this information may be made available to the seller. The seller may be allowed to initiate or schedule a payment to a creditor from a particular account at a particular bank. Whether the particular account from which to make the payment contains sufficient funds to make the payment may be determined, and if the particular account contains sufficient funds, then the payment may be made. If the particular account does not contain sufficient funds, then funds may be swept from one or more other accounts of the plurality of accounts into the particular account until the particular account contains sufficient funds, and then the payment may be made. However, if sufficient funds cannot be swept into the particular account, then an alert may be communicated to the seller.

[0009] Various implementations of the foregoing embodiments may include any one or more of the following additional features. The seller's device/computer may be a smartphone configured to communicate with the different banks via a wireless communication network. The solution software application may further allow the seller to add an account to the plurality of accounts and to remove an account from the plurality of accounts. A new account may be added by allowing the seller to enter a routing number and an account number for a new account, and initiating, negotiating, and finalizing addition of the new account. An existing account may be removed by initiating, negotiating, and finalizing removal of the account selected by the seller for removal from the plurality of accounts. The software application may further allow the seller to identify the particular account from which the payment is to be made, or the software application may select the particular account from which the payment is to be made. The software application may further allow the seller to specify a preferred ordering of the one or more accounts from which funds are to be swept into the particular account, or the software application may select the one or more accounts from which funds are to be swept into the particular account.

[0010] The software application may also sweep funds from one account to another account among the plurality of accounts in order to optimize a benefit for the seller with regard to minimizing a fee, maximizing an interest, and/or preparing for an anticipated payment. The software application may also monitor each account, compare each account to the other accounts in the plurality of accounts, and based thereon, make a recommendation to the seller regarding changing accounts.

[0011] This summary is not intended to identify essential features of the present invention, and is not intended to be used to limit the scope of the claims. These and other aspects of the present invention are described below in greater detail. DRAWINGS

[0012] Embodiments of the present invention are described in detail below with reference to the attached drawing figures, wherein:

[0013] FIG. 1 is a block diagram of an embodiment of a system constructed in accordance with the present technology for managing finances for sellers across multiple bank accounts in an integrated closed loop payment system; and

[0014] FIG. 2 is a flowchart of an embodiment of a computer-implemented method which may be implemented by the system of FIG. 1.

[0015] The figures are not intended to limit the present invention to the specific embodiments they depict. The drawings are not necessarily to scale.

DETAILED DESCRIPTION

[0016] The following detailed description of embodiments of the invention references the accompanying figures. The embodiments are intended to describe aspects of the invention in sufficient detail to enable those with ordinary skill in the art to practice the invention. Other embodiments may be utilized and changes may be made without departing from the scope of the claims. The following description is, therefore, not limiting. The scope of the present invention is defined only by the appended claims, along with the full scope of equivalents to which such claims are entitled.

[0017] In this description, references to "one embodiment", "an embodiment", or

"embodiments" mean that the feature or features referred to are included in at least one embodiment of the invention. Separate references to "one embodiment", "an embodiment", or "embodiments" in this description do not necessarily refer to the same embodiment and are not mutually exclusive unless so stated. Specifically, a feature, structure, act, etc. described in one embodiment may also be included in other embodiments, but is not necessarily included. Thus, particular implementations of the present invention can include a variety of combinations and/or integrations of the embodiments described herein.

[0018] Broadly characterized, the present invention provides a system and computer- implemented method for managing finances for sellers across multiple bank accounts in an integrated closed loop payment system. A closed loop payment system provides direct payment connections between the bank account of a seller and the bank account of a customer at the same bank, which eliminates the inter-bank settlement problem, but results in the seller having multiple bank accounts at different banks, which creates a financial management and "sweeping" problem. Embodiments of the present invention provide a financial management solution for effectively addressing this problem.

[0019] The solution may facilitate the management of funds across a plurality of different accounts at different banks by automatically monitoring the activity and balance of each of the accounts, making this information available to the seller whenever desired, allowing the seller to initiate or schedule a payment from a particular account at a particular bank, and automatically sweeping (i.e., transferring) funds from one or more of the other accounts into the particular account, by withdrawing funds from the former and depositing them into the latter, to ensure that there are sufficient funds in the particular account to make the payment. Thus, embodiments allow sellers to escape the costs and inefficiencies associated with the four party model, including allowing them to access funds immediately rather than suffer the delay of a settlement period. Further, embodiments allow sellers to negotiate the best cash deposit terms, ensure that their cash assets are best managed, and build direct relationships with banks and enable them to switch to substantially any suitable bank without the constraints of inflexible banking relationships.

[0020] Referring to FIG. 1, a system 10 is shown for managing finances for sellers across multiple bank accounts in an integrated closed loop payment system. The system 10 and an exemplary operating environment may broadly comprise a plurality of different banks 12 (B l, B2,..,Bn), in each of which there may be an account 14 (S I, S2,..,Sn) of the seller and one or more accounts 16 (CI, C2,..,Cn) of one or more customers of the seller; a creditor 18 to whom the seller owes or will owe a payment; an electronic communication network 20; and a seller' s electronic device 22 configured to store and execute a financial management solution software application 24. The plurality of different banks 12 may be substantially any suitable conventional or non- conventional banks located substantially anywhere and configured or configurable to perform the functions described herein. Similarly, the seller' s accounts 14 and the customers' accounts 16 may be substantially any suitable conventional or non-conventional accounts configured or configurable to perform the functions described herein. The creditor 18 may be substantially any entity (e.g., a supplier of goods or services, a consignor, a lender) to which the seller may owe or will owe a payment. The electronic communication network 20 may be substantially any suitable network for communicating information of the type and in the manner described herein. [0021] The seller' s electronic device 22 may be substantially any suitable computing device (e.g., a desktop computer, laptop computer, tablet computer, or smartphone) with sufficient capacities and capabilities to perform the functions described herein. In particular, the device 22 may be configured to store and execute the financial management solution software application 24 and facilitate communication between the solution 24 and the banks 12 and/or the creditor 18 via the communication network 20.

[0022] Referring to FIG. 2, the system 10 may function substantially as follows. The solution 24 may automatically monitor the activity and balance of each of the seller' s accounts 14, and determine the aggregate balance, and make this information available to the seller whenever desired, as shown in 1 12. The solution 24 may allow the seller to initiate or schedule a payment to the creditor 18 from a particular account at a particular bank, as show in 1 14, and then determine whether the particular account from which to make the payment contains sufficient funds to do so, as shown in 1 16. If so, the solution 24 may make the payment, as shown in 1 18. If not, the solution 24 may determine whether there are available funds in the seller' s other accounts, as shown in 120, and if so, the solution 24 may automatically sweep funds from one or more of the seller' s other accounts into the particular account until it contains sufficient funds to make the payment, as shown in 122, and then the solution 24 may make the payment, as shown in 1 18. However, if the solution 24 is unable to sweep sufficient funds into the particular account, the solution 24 may communicate an alert to the seller, as shown in 124. Further, the solution 24 may automatically perform or recommend for approval and if approval is given automatically perform additional actions to manage the seller' s accounts 14, as shown in 126, such as sweeping funds from one account to another for reasons other than making payments, or make recommendations to the seller to open, close, or otherwise change accounts.

[0023] The system 10 may include more, fewer, or alternative component performing more, fewer, or alternative functions, including those discussed below in the description of the computer-implemented method.

[0024] Referring again to FIG. 2, an embodiment of a computer-implemented method 1 10 is shown for managing finances for sellers across multiple bank accounts in an integrated closed loop payment system. The computer-implemented method 1 10 may be a corollary to the functionality of the system 10 of FIG. 1, and may be similarly implemented using the various components of the above-described system 10 within the exemplary operating environment. [0025] The solution 24 may automatically monitor the activity and balance of each of the seller's accounts 14, and determine the aggregate balance, and make this information available to the seller whenever desired, as shown in 112. As part of this operation, the solution 24 may allow the seller to add and remove accounts 14 as desired. Further, this process may be as automated as possible in order to eliminate the overhead of updating the accounts 14 and keeping them current. In one example, the solution 24 may display a list of the accounts 14 of the seller and allow the seller to select an account to remove from the list, and thereafter automatically initiate, negotiate, and finalize removal of the selected account. In another example, the solution 24 may allow the seller to enter a routing number and an account number for a new account, and thereafter automatically initiate, negotiate, and finalize addition of the identified account. The solution 24 may automatically determine and display the activity and the balance for each of the seller's accounts 14, and calculate a total balance for all of the seller's accounts 14. To accomplish this, the solution 24 may periodically or continuously monitor each of the seller's accounts 14. Such monitoring may be accomplished through a subscription service, wherein when the balance of a particular seller's account with a particular bank changes within a period of time (e.g., one hour, one day), the bank may inform the solution 24. Additionally or alternatively, monitoring may be accomplished by the solution 24 periodically querying each bank. The solution 24 may collect and display additional relevant information and/or communicate alerts, such as when an account balance exceeds a pre-defined threshold, or when time-sensitive account information is received.

[0026] The solution 24 may allow the seller to initiate or schedule a payment to the creditor

18 from a particular account at a particular bank, as show in 114. The solution 24 may allow the seller to identify the particular account from which a specific payment or some or all payments should be made. In particular, one or more accounts may be designated for certain payments or types of payments based on, e.g., the sizes of payments, the types of recipients, the account locations of the recipients (i.e., the same or different banks), and/or the speeds with which payments must be made and/or cleared.

[0027] The solution 24 may then determine whether the identified particular account from which to make the payment contains sufficient funds to do so, as shown in 116. If so, the solution 24 may make the payment, as shown in 118. If not, the solution 24 may determine whether there are other accounts from which funds can be swept into the particular account, as shown 120. If so, the solution 24 may automatically sweep funds from one or more other accounts into the particular account until it contains sufficient funds to make the payment, as shown in 122, and then the solution 24 may make the payment, as shown in 1 18. However, if the solution 24 is unable to sweep sufficient funds into the particular account, the solution 24 may communicate an alert to the seller, as shown in 124. In various implementations, the solution 24 may allow the seller to specify a preferred ordering of accounts from which funds may be swept or may itself select the accounts from which funds are swept into the particular account, may allow the seller to limit the sweeping operation by specifying a minimize balance for some or all accounts, or the solution may determine for itself, based on objective and/or subjective criteria (e.g., minimizing the cost or minimizing the time required to complete the sweeping operation), the best strategy for sweeping the accounts.

[0028] The solution 24 may automatically perform or recommend for approval and if approval is given automatically perform additional actions to manage the seller' s accounts 14, as shown in 126. In one example, the solution 24 may sweep funds from one account to another in order to optimize benefits for the seller, which may include minimizing fees, maximizing interest, and/or preparing for anticipated payments (e.g., salaries, taxes), especially payments that are performed at specific pre-defined times. In another example, the solution 24 may monitor the relevant information for each account (e.g., interest rate, fees, terms of service), compare each account to the other accounts, and make recommendations to the seller to open, close, or otherwise change accounts. As discussed, the solution 24 may facilitate adding and removing accounts, and relatedly, may also facilitate opening and closing accounts. Thus, the solution 24 puts the seller in the advantageous position of being able to negotiate better rates, terms, and services from banks.

[0029] The computer-implemented method 1 10 may include more, fewer, or alternative actions, including those discussed elsewhere herein.

[0030] Although the invention has been described with reference to the one or more embodiments illustrated in the figures, it is understood that equivalents may be employed and substitutions made herein without departing from the scope of the invention as recited in the claims.

[0031] Having thus described one or more embodiments of the invention, what is claimed as new and desired to be protected by Letters Patent includes the following:

Claims

CLAIMS:

1. A system for managing the finances of a seller in a closed loop payment system, wherein the seller has a plurality of accounts at different banks, the system comprising:

a seller's device storing and executing a financial management solution software application configured to - monitor an activity and balance of each of the accounts, determine an aggregate balance, and make this information available to the seller,

allow the seller to initiate or schedule a payment to a creditor from a particular account at a particular bank, and

determine whether the particular account from which to make the payment contains sufficient funds to make the payment, and - if the particular account contains sufficient funds, then make the payment, and

if the particular account does not contain sufficient funds, then sweep funds from one or more other accounts of the plurality of accounts into the particular account until the particular account contains sufficient funds, and then make the payment, and if sufficient funds cannot be swept into the particular account, then communicate an alert to the seller.

2. The system as set forth in claim 1, wherein the seller's device is a smartphone configured to communicate with the different banks via a wireless communication network.

3. The system as set forth in claim 1, wherein the financial management solution software application is further configured to allow the seller to add an account to the plurality of accounts and to remove an account from the plurality of accounts.

4. The system as set forth in claim 3, wherein the financial management solution software application is further configured to - allow the seller to enter a routing number and an account number for a new account, and thereafter initiate, negotiate, and finalize addition of the new account.

5. The system as set forth in claim 3, wherein the financial management solution software application is further configured to initiate, negotiate, and finalize removal of the account selected by the seller for removal from the plurality of accounts.

6. The system as set forth in claim 1, wherein the financial management solution software application is further configured to allow the seller to identify the particular account from which the payment is to be made.

7. The system as set forth in claim 1, wherein the financial management solution software application is further configured to select the particular account from which the payment is to be made.

8. The system as set forth in claim 1, wherein the financial management solution software application is further configured to allow the seller to specify a preferred ordering of the one or more accounts from which funds are to be swept into the particular account.

9. The system as set forth in claim 1, wherein the financial management solution software application is further configured to select the one or more accounts from which funds are to be swept into the particular account.

10. The system as set forth in claim 1, wherein the financial management solution software application is further configured to sweep funds from one account to another account among the plurality of accounts in order to optimize a benefit for the seller selected from the group consisting of: minimizing a fee, maximizing an interest, and preparing for an anticipated payment.

11. The system as set forth in claim 1, wherein the financial management solution software application is further configured to - monitor each account,

compare each account to the other accounts in the plurality of accounts, and

based thereon, make a recommendation to the seller regarding changing accounts.

12. A system for managing the finances of a seller in a closed loop payment system, wherein the seller has a plurality of accounts at different banks, the system comprising:

a seller's smartphone configured to communicate with the different banks via a wireless communication network, and to store and execute a financial management solution software application configured to - monitor an activity and balance of each of the accounts, determine an aggregate balance, and make this information available to the seller,

allow the seller to initiate or schedule a payment to a creditor from a particular account at a particular bank,

allow the seller to identify the particular account from which the payment is to be made, select the one or more accounts from which funds are to be swept into the particular account, and

13. A computer-implemented method for improving the functioning of a computer for managing the finances of a seller in a closed loop payment system, wherein the seller has a plurality of accounts at different banks, the computer-implemented method comprising the following steps performed by a financial management solution software application stored on and executed by the computer:

monitor an activity and balance of each of the accounts, determine an aggregate balance, and make this information available to the seller;

allow the seller to initiate or schedule a payment to a creditor from a particular account at a particular bank; and

determine whether the particular account from which to make the payment contains sufficient funds to make the payment, and - if the particular account contains sufficient funds, then make the payment, and if the particular account does not contain sufficient funds, then sweep funds from one or more other accounts of the plurality of accounts into the particular account until the particular account contains sufficient funds, and then make the payment, and if sufficient funds cannot be swept into the particular account, then communicate an alert to the seller.

14. The computer-implemented method as set forth in claim 13, wherein the computer is a smartphone configured to communicate with the different banks via a wireless communication network.

15. The computer-implemented method as set forth in claim 13, further including allowing the seller to add an account to the plurality of accounts and to remove an account from the plurality of accounts.

16. The computer-implemented method as set forth in claim 15, further including - allowing the seller to enter a routing number and an account number for a new account, and initiating, negotiating, and finalizing addition of the new account.

17. The computer-implemented method as set forth in claim 15, further including initiating, negotiating, and finalizing removal of the account selected by the seller for removal from the plurality of accounts.

18. The computer-implemented method as set forth in claim 13, further including allowing the seller to identify the particular account from which the payment is to be made.

19. The computer-implemented method as set forth in claim 13, further including selecting the particular account from which the payment is to be made.

20. The computer-implemented method as set forth in claim 13, further including allowing the seller to specify a preferred ordering of the one or more accounts from which funds are to be swept into the particular account.

21. The computer-implemented method as set forth in claim 13, further including selecting the one or more accounts from which funds are to be swept into the particular account.

22. The computer-implemented method as set forth in claim 13, further including sweeping funds from one account to another account among the plurality of accounts in order to optimize a benefit for the seller selected from the group consisting of: minimizing a fee, maximizing an interest, and preparing for an anticipated payment.

23. The computer-implemented method as set forth in claim 13, further including - monitoring each account,

comparing each account to the other accounts in the plurality of accounts, and

based thereon, making a recommendation to the seller regarding changing accounts.