Automated interactive bill payment system using debit cards

Abstract

Method and apparatus for processing payment transactions using debit card numbers without the requirement of a personal identification number (PIN) is disclosed. A telepay system of the present invention provides an interface between a standard touchtone telephone and at least one debit card network such that real-time bill payment transactions may be effected using a keypad of the telephone. The telepay system includes an interactive voice response unit for prompting a payor to enter an access code, account number, debit card number and payment amount and for informing the user of the status of the transaction. Real-time processing of transactions is provided through use of debit card networks, rather than the Automated Clearing House. The telepay system is also capable of performing settlement functions and processing inquiries by payees of the system regarding previously processed transactions.

1. A method of paying bills using a telephone connectable to at least one remote payment card network via a payee's agent's system, wherein a caller places a call using said telephone to initiate a spontaneous payment transaction that does not require pre-registration, to a payee, the method comprising the steps of:
 prompting the caller to enter an account number using the telephone, the account number identifying an account of a payor with the payee in connection with the payment transaction;  
 responsive to entry of an account number, determining whether the entered account number is valid;  
 prompting the caller to enter a payment number using the telephone, the payment number being selected at the discretion of the caller from any one of a number of credit or debit forms of payment;  
 responsive to entry of the payment number, determining whether the entered payment number is valid;  
 prompting the caller to enter a payment amount for the payment transaction using the telephone;  
 responsive to a determination that a payment amount has been entered and further responsive to a determination that the entered account number and payment number are valid, and during the call: 
 accessing a remote payment network associated with the entered payment number, the accessed remote payment network determining, during the call, whether sufficient available credit or funds exist in an account associated with the entered payment number to complete the payment transaction;  
 responsive to a determination that sufficient available credit or funds exist in the associated account, charging the entered payment amount against the account associated with the entered payment number, adding the entered payment amount to an account associated with the entered account number, informing the caller that the payment transaction has been authorized, and storing the account number, payment number and payment amount in a transaction log file of the system during the call; and  
 responsive to a determination that sufficient available credit or funds do not exist in the associated account, informing the caller during the call that the current payment transaction has been declined and terminating the current payment transaction.  
 
 
     
     
       2. The method of  claim 1  wherein said payment number is a debit card number. 
     
     
       3. The method of  claim 1  wherein said payment number is a credit card number. 
     
     
       4. The method of  claim 1  wherein the payment amount represents a partial payment amount determined by the caller. 
     
     
       5. The method of  claim 1  wherein the step of adding the entered payment amount to an account associated with the entered account number and informing the caller that the payment transaction has been authorized utilizes an approval code issued by the accessed remote payment card network. 
     
     
       6. The method of  claim 5  wherein the step of storing the account number, payment number and payment amount in a transaction log file also stores the approval code in the transaction log file. 
     
     
       7. The method of  claim 1  further comprising the step of:
 responsive to a determination that sufficient available credit or funds do not exist in the associated account, informing the caller during the call that the current payment transaction has been declined and terminating the current payment transaction.  
 
     
     
       8. The method of  claim 1  wherein said steps of prompting said caller are performed during said call by an interactive voice response unit of said payee's agent's system. 
     
     
       9. The method of  claim 1  further comprising, after each of said determining steps:
 informing said caller of results of said determination using an interactive voice response unit of said payee's agent's system; and  
 terminating said current payment transaction of said results of said determination are negative.  
 
     
     
       10. The method of  claim 1  further comprising, prior to said accessing:
 summarizing details of said current payment transaction to said caller using an interactive voice response unit of said payee's agent's system;  
 prompting said caller to accept said current payment transaction; and  
 responsive said caller not accepting said current payment transaction, terminating said current payment transaction.  
 
     
     
       11. The method of  claim 1  wherein said step of determining whether said entered account number is valid further comprises:
 responsive to a determination that said entered account number is not valid, prompting said caller to enter another account number;  
 repeating said determining and said prompting up to a predetermined number of times; and  
 terminating said current payment transaction if a valid account number is not entered within said predetermined number of times.  
 
     
     
       12. The method of  claim 1  further comprising periodically performing a settlement process, said settlement process comprising:
 accessing a computer billing system of said payee; and  
 transmitting to said payee's computer billing system said stored access code, account number, payment card number and payment amount from said transaction log file.  
 
     
     
       13. A method of paying bills using a telephone device connectable to at least one remote payment network via a payee's agent's system, wherein a connection is made using the telephone device to initiate a payment transaction that does not require pre-registration, the method comprising the steps of:
 prompting for entry of a valid account number using the telephony device, the account number identifying an account of a payor in connection with the payment transaction;  
 prompting for entry of a valid payment number using the telephony device, the payment number being selected from any one of a number of forms of payment;  
 prompting for entry of a payment amount using the telephony device;  
 responsive to entry of a payment number and payment amount, accessing a remote payment network associated with the entered payment number, the accessed remote payment network determining, during the connection, whether sufficient available credit or funds exist in an account associated with the entered payment number to cover the entered payment amount; and  
 responsive to a determination that sufficient available credit or funds exist in the associated account, debiting the entered payment amount from the account associated with the entered payment number, crediting the entered payment amount to an account associated with the entered account number, and storing the account number, payment number and payment amount in a transaction log file of the system during the connection.  
 
     
     
       14. The method of  claim 13  wherein said payment number is a credit card number or a debit card number. 
     
     
       15. The method of  claim 13  wherein the payment amount represents a partial payment amount. 
     
     
       16. The method of  claim 13  wherein the step of adding the entered payment mount to an account associated with the entered account number and informing the caller that the payment transaction has been authorized utilizes an approval code issued by the accessed remote payment card network. 
     
     
       17. The method of  claim 16  wherein the step of storing the account number, payment number and payment amount in a transaction log file also stores the approval code in the transaction log file. 
     
     
       18. A system for enabling a payor to pay bills using a telephone connectable to at least one remote payment network via a payee's agent's system, wherein a caller places a call using the telephone to initiate a payment transaction that does not require payor pre-registration, the system comprising:
 means for prompting the caller to enter a valid account number using the telephone, the account number identifying an account of the payor with the payee in connection with the payment transaction;  
 means for prompting the caller to enter a valid payment number using the telephone, the payment number being selected at the discretion of the caller from any one of a number of forms of payment;  
 means for prompting the caller to enter a payment amount using the telephone;  
 means for responsive to entry of a payment number and payment amount, accessing a remote payment network associated with the entered payment number, the accessed remote payment network determining, during the call, whether sufficient available credit or funds exist in an account associated with the entered payment number to cover the entered payment amount; and  
 means responsive to a determination that sufficient available credit or funds exist in the associated account, for debiting the entered payment amount from the account associated with the entered payment number, crediting the entered payment amount to an account associated with the entered account number, and  
 means responsive to a determination that sufficient available credit or funds exist in the associated account, for debiting the entered payment amount from the account associated with the entered payment number, crediting the entered payment amount to an account associated with the entered account number, and storing the account number, payment number and payment amount in a transaction log file of the system during the call.  
 
     
     
       19. The system of  claim 18  wherein said payment number is a debit card number. 
     
     
       20. The system of  claim 18  wherein said payment number is a credit card number. 
     
     
       21. The system of  claim 18  wherein the means for adding the entered payment amount to an account associated with the entered account number and informing the caller that the payment transaction has been authorized utilizes an approval code issued by the accessed remote payment card network. 
     
     
       22. The system of  claim 21  wherein the step of storing the account number, payment number and payment amount in a transaction log file also stores the approval code in the transaction log file.