Payment identification code and payment system using the same

Abstract

A method for effecting electronic payment, safeguarding banking and account information, while utilizing existing payment systems. The method comprises generating a system routing number and a payment identification code (PIC) relating to the beneficiary's account information, distributing payment identification codes to the existing payment system and financial institutions owning the account related to the payment identification codes, and the originator receiving a system routing number and the beneficiary's PIC number. The method also includes the originator communicating a payment instruction to a financial institution of the originator, wherein the payment instruction includes the system routing number beneficiary's payment identification code, the originator's financial institution receiving the payment instruction from the originator, wherein if the received PIC matches the originator's financial institution internal list of PICs, the originator's financial institution performs an “on us” transaction, and transmitting a payment instruction to an existing payment system in a case where the received PIC does not match originator's financial institution internal list of PICs. The method also includes the existing payment system validating the received PIC, wherein if the PIC is invalid, the payment instruction is returned to the originator's financial institution, converting the PIC and system routing number to a receiving payment instruction in a case where the PIC is a valid PIC, wherein the receiving payment instruction includes the beneficiary's financial institution's routing number and the beneficiary's account number. The existing payment system transmits the receiving payment instruction to a financial institution of the beneficiary, that financial institution credits the beneficiary's account if no problem exists, and otherwise returns a receiving payment instruction to the existing payment system. Upon receipt of the returned receiving payment instruction, the existing payment system translates the receiving payment instruction into the payment instruction prior to transmitting the payment instruction back to originator's financial institution.

1 - 15 . (canceled) 
     
     
         16 . An electronic payment method, comprising:
 determining that a first routing identifier included in a received payment instruction includes a pseudo-code of routing information for a financial institution;   selecting one of a plurality of payee-related sets corresponding to the pseudo-code, each payee-related set including payee-related account identification information and a second routing identifier associated with a respective payee-related destination;   replacing a payee-related identifier included in the payment instruction with the payee-related account identification information of the selected payee-related set and replacing the first routing identifier with the second routing identifier of the selected payee-related set; and   transmitting a payment message including the payee-related account identification information of the selected payee-related set to the respective payee-related destination associated with the second routing identifier of the selected payee-related set, based on the second routing identifier of the selected payee-related set.   
     
     
         17 . A method according to  claim 16 , wherein the determining is performed by a payment system. 
     
     
         18 . A method according to  claim 17 , wherein the payment system is an automated clearing house (ACH). 
     
     
         19 . A method according to  claim 17 , wherein the payment system is a funds-transfer system. 
     
     
         20 . A method according to  claim 16 , further comprising providing an instruction to debit an account of a payor. 
     
     
         21 . A method according to  claim 16 , wherein the respective payee-related destination is a first financial institution, and wherein a payee account is credited at at least one second financial institution. 
     
     
         22 . A method according to  claim 21 , further comprising communicating between the first financial institution and the at least one second financial institution to effect crediting of a payee account. 
     
     
         23 . A method according to  claim 16 , wherein the payment message also specifies a value representing an amount to be paid, and wherein a payee account is credited based on the value. 
     
     
         24 . A method according to  claim 16 , further comprising, prior to the selecting, validating the payee-related identifier against a database of codes. 
     
     
         25 . A method according to  claim 16 , wherein the payee-related account identification information of the selected payee-related set is a bank account number of a payee account. 
     
     
         26 . A method according to  claim 16 , wherein the pseudo-code includes a payment identification code, the payee-related account identification information of each payee-related set includes a corresponding encrypted bank account number, and the second routing identifier of each payee-related set of information includes a corresponding encrypted bank routing number. 
     
     
         27 . An apparatus comprising:
 a memory storing a computer program; and   a computer processor operating under control of the computer program stored in the memory, to perform a method that includes:
 determining that a first routing identifier included in a received payment instruction includes a pseudo-code of routing information for a financial institution; 
 selecting one of a plurality of payee-related sets corresponding to the pseudo-code, each payee-related set including payee-related account identification information and a second routing identifier associated with a respective payee-related destination; 
 replacing a payee-related identifier included in the payment instruction with the payee-related account identification information of the selected payee-related set and replacing the first routing identifier with the second routing identifier of the selected payee-related set; and 
 transmitting a payment message including the payee-related account identification information of the selected payee-related set to the respective payee-related destination associated with the second routing identifier of the selected payee-related set, based on the second routing identifier of the selected payee-related set. 
   
     
     
         28 . An apparatus according to  claim 27 , wherein the apparatus is included in an automated clearing house (ACH). 
     
     
         29 . An apparatus according to  claim 27 , wherein the method further includes providing an instruction to debit an account of a payor. 
     
     
         30 . An apparatus according to  claim 27 , wherein the respective payee-related destination is a first financial institution, and wherein a payee account is credited at at least one second financial institution. 
     
     
         31 . An apparatus according to  claim 27 , wherein the payment message also specifies a value representing an amount to be paid, and wherein a payee account is credited based on the value. 
     
     
         32 . An apparatus according to  claim 27 , wherein the method further comprises validating the payee-related identifier against a database of codes. 
     
     
         33 . An apparatus according to  claim 27 , wherein the pseudo-code includes a payment identification code, the payee-related account identification information of each payee-related set includes a corresponding encrypted bank account number, and the second routing identifier of each payee-related set includes a corresponding encrypted bank routing number. 
     
     
         34 . A non-transitory computer readable medium having stored thereon sequences of instructions, the sequences of instructions including instructions which, when executed by a server, cause the server to perform a method comprising:
 determining that a first routing identifier included in a received payment instruction includes a pseudo-code of routing information for a financial institution;   selecting one of a plurality of payee-related sets corresponding to the pseudo-code, each payee-related set including payee-related account identification information and a second routing identifier associated with a respective payee-related destination;   replacing a payee-related identifier included in the payment instruction with the payee-related account identification information of the selected payee-related set and replacing the first routing identifier with the second routing identifier of the selected payee-related set; and   transmitting a payment message including the payee-related account identification information of the selected payee-related set to the respective payee-related destination associated with the second routing identifier of the selected payee-related set, based on the second routing identifier of the selected payee-related set.   
     
     
         35 . The non-transitory computer readable medium of  claim 34 , wherein the method further comprises providing an instruction to debit an account of a payor.