Rapid tax collection system and method

Abstract

Preferred examples of a system and method for rapid collection and distribution of taxes are disclosed. The disclosed embodiments of the present invention provide a system and a method for point-of-sale collection and distribution of sales taxes on a frequent, regular basis, such as daily or weekly or other periodic time intervals, that can be used for face-to-face, e-commerce, telephone or other transactions. The disclosed embodiments provide a system and a method for transferring funds from numerous merchants to numerous taxing authorities in an efficient manner, with each merchant seeking to transfer funds to perhaps several taxing authorities and each taxing authority seeking to receive funds from many merchants. According to other examples of the invention, a centralized distribution feature allows the merchants and the taxing authorities to each communicate with a single entity or other in transferring the funds. Therefore, efficient tax collection and distribution may be achieved without overburdening either individual merchants or individual taxing authorities

1 .- 87 . (canceled) 
     
     
         88 . A method for a point-of-sale collection and distribution of sales taxes, the method comprising the steps of:
 a) a consumer obtaining a credit card and a credit line from an issuer;   b) a merchant interacting with the issuer through a payment gateway having a gateway computer;   c) the issuer and an acquirer interacting through credit card associations;   d) distributing funds through one or more than one qualified central financial entity using one or more than one computer;   e) receiving the distributed funds a plurality of taxing entities using one or more than one computer; and   f) receiving fund transfers by the plurality of taxing entities on behalf of the taxing entities.   
     
     
         89 . The method of  claim 88 , where the issuer is a bank, a service provider or both a bank and a service provider. 
     
     
         90 . The method of  claim 88 , where the merchant can interact with the acquirer, the service provider or both the acquirer and the service provider using a payment gateway having a gateway computer. 
     
     
         91 . The method of  claim 88 , where the merchant can also have an account at a merchant's bank for holding and transferring funds to the plurality of taxing entities. 
     
     
         92 . The method of  claim 88 , where the issuer and the acquirer are the same. 
     
     
         93 . The method of  claim 88 , where the central financial entity consists of the group selected from a Federal Reserve Bank, a state bank, a private entity and a government entity. 
     
     
         94 . The method of  claim 88 , where the plurality of taxing entities is selected from an individual states, a local municipality and a federal government. 
     
     
         95 . The method of  claim 88 , where the taxing entities have various taxing rates, various distribution rules or both various taxing rates and various distribution rules. 
     
     
         96 . The method of  claim 88 , where the issuer can be selected from the group consisting of a bank, a travel company, an entertainment company and a petroleum company. 
     
     
         97 . The method of  claim 88  further comprising the step of the merchant acquiring credit-transaction capabilities through an acquirer bank, a service provider or both an acquirer bank and a service provider. 
     
     
         98 . The method of  claim 88  further comprising the steps of:
 a) presenting a credit card from the issuer by a consumer to the merchant to make a transaction; 
 b) forwarding information regarding the transaction to the computer at the acquirer; 
 c) determining an amount of tax to be collected from the consumer; 
 d) transmitting the information regarding the transaction and the amount of tax to be collected to the issuer; 
 e) receiving authorization from the issuer for the transaction amount and the amount of tax to be collected; 
 f) transferring from the merchant computer to the acquirer, credit-card and transaction information; 
 g) calculating tax owed to the plurality of taxing entities; and 
 h) distributing the tax to the plurality of taxing entities. 
 
     
     
         99 . The method of  claim 98  further comprising the step of obtaining approval for the credit card transaction from the issuer by the merchant using a device prior to completing the transaction. 
     
     
         100 . The method of  claim 99 , where the device is selected from the group consisting of a computer, a payment terminal and a payment device. 
     
     
         101 . The method of  claim 98 , where the merchant can transmit information regarding the transaction directly to the acquirer through a gateway computer at a gateway. 
     
     
         102 . The method of  claim 98 , where the merchant can forward the information regarding the transaction to a computer at a third party service provider. 
     
     
         103 . The method of  claim 98 , where the transaction information can comprise a transaction amount and a portion for taxes. 
     
     
         104 . The method of  claim 98 , where the determination of the tax to be collected can be performed by the merchant computer, the third-party service provider computer or both the merchant computer and the third-party service provider computer using a location of the consumer, a location of the merchant, tax laws of the taxing entities and predetermined distribution rules. 
     
     
         105 . The method of  claim 98 , where the step of transferring from the merchant computer to the acquirer is performed through the gateway computer. 
     
     
         106 . The method of  claim 98 , where the credit-card and transaction information comprises a total sales amount. 
     
     
         107 . The method of  claim 98 , where the credit-card and transaction information comprises raw data relating to the transaction, including a monetary amount of the transaction involving each taxing entity. 
     
     
         108 . The method of  claim 98 , where the credit-card and transaction information comprises merchant tax reporting information. 
     
     
         109 . A method for a point-of-sale collection and distribution of sales taxes by a third party service provider, the method comprising the steps of:
 a) a consumer obtaining a credit card and a credit line from an issuer;   b) a merchant interacting with a third party service provider;   c) the third party service provider and an acquirer interacting through credit card associations;   d) distributing funds through one or more than one qualified central financial entity using one or more than one computer;   e) receiving the distributed funds a plurality of taxing entities using one or more than one computer; and   f) receiving fund transfers by the plurality of taxing entities on behalf of the taxing entities.   
     
     
         110 . The method of  claim 109  further comprising the steps of:
 a) presenting a credit card from the issuer by a consumer to the merchant to make a transaction; 
 b) forwarding information regarding the transaction to the computer at the third party service provider; 
 c) determining an amount of tax to be collected from the consumer; 
 d) transmitting the information regarding the transaction and the amount of tax to be collected to the issuer; 
 e) receiving authorization from the issuer for the transaction amount and the amount of tax to be collected; 
 f) transferring from the third party service provider to the acquirer, credit-card and transaction information; 
 g) calculating tax owed to the plurality of taxing entities; and 
 h) distributing the tax to the plurality of taxing entities. 
 
     
     
         111 . The method of  claim 109 , where the merchant's computer can transmit the required information through a payment gateway having a gateway computer to the third-party service provider computer. 
     
     
         112 . The method of  claim 109  further comprising the steps of:
 a) Transmitting the information from the third-party service provider computer to a computer at a tax service provider; 
 b) determining the allocation of the tax funds to the appropriate taxing entities; 
 c) receiving from the tax service provider computer the information including tax distribution information by the third-party service provider; and 
 d) transmitting a debit request from the third-party service provider to one or more credit-card associations. 
 
     
     
         113 . The method of  claim 109 , where the third-party service provider and the tax service provider are the same. 
     
     
         114 . A method for a point-of-sale collection and distribution of sales taxes, the method comprising the steps of:
 a) distributing tax proceeds to taxing entities' banks in a centralized manner from one or more merchants;   b) distributing tax proceeds to financial account entities in a centralized manner from one or more merchants;   c) receiving tax proceed funds from one or more than one source; and   d) transmitting the tax funds directly to a taxing entity bank, a financial account entity bank or both a taxing entity bank and a financial account entity bank prior to transmitting funds to a merchant bank, a financial account entity or both a merchant bank and a financial account entity.   
     
     
         115 . The method of  claim 114 , where the merchant can use a merchant computer to transmit the transaction information to a third-party service provider computer. 
     
     
         116 . The method of  claim 115 , where the third-party service provider computer can transmit the information to a computer at a tax service provider for determination of tax allocation. 
     
     
         117 . The method of  claim 116 , where the third party service provider and the tax service provider are the same. 
     
     
         118 . The method of  claim 116 , where the tax service provider computer can transmit information, including the tax allocation information, to the third-party service provider computer for transmission to a computer at a central financial entity. 
     
     
         119 . The method of  claim 115 , where the merchant's computer may transmit the information to the third-party service provider through a gateway computer. 
     
     
         120 . The method of  claim 115 , the merchant can use a merchant computer to transmit the transaction information to a tax service provider computer. 
     
     
         121 . The method of  claim 114 , where a single central financial entity can distribute tax funds from a plurality of merchants, a plurality of taxing entity banks and a plurality of financial account entities. 
     
     
         122 . A system for a point-of-sale collection and distribution of sales taxes:
 a) a credit card and a credit line issued to a consumer by an issuer;   b) a merchant computer operable with the credit card for processing a transaction between the merchant and the consumer;   c) a payment gateway electronically connected to the merchant computer; and   d) instructions executable on the merchant computer, the payment gateway or both the merchant computer and the payment gateway for calculating and transferring funds a plurality of taxing authorities.   
     
     
         123 . The system of  claim 122 , where the payment gateway is an automated and centralized distribution center communicatively connected to available transactional infrastructure comprising instructions executable on a computer for calculating and distributing tax funds to the plurality of taxing authorities.