AU785485B2 - Debit payment system - Google Patents

Description

AUSTRALIA

Patents Act 1990 COMPLETE SPECIFICATION STANDARD PATENT Applicant: SERVICEWORKS TECHNOLOGY PTY LTD A.C.N. 099 474 012 Invention Title: DEBIT PAYMENT SYSTEM The following statement is a full description of this invention, including the best method of performing it known to me/us: SEP.11.2007 12:02 +61299255911 GRIFFITH HACK #2038 P.004 /012 -2- DEBIT PAYMENT SYSTEM Field of the Invention The present invention relates to a debit payment system. The system can be applied to improve the management of debit payment in domestic or commercial applications and will primarily be described with reference to this context. It should be remembered, however, that the invention has broader use in other credit control applications.

Background Art The payment of household and commercial debits for services and utilities provided by separate service eg. 15 providers is presently done on a separate basis, with payment being effected ad hoc and by a variety of methods.

Sometimes payments required by each separate service or utility are spread over a specific billing period, using a budget payment plan to avoid lump sum bill payments.

Utilities are required to offer these plans as part of their regulatory obligations however they do not actively promote the programs due to the often high costs associated with operating them.

Summuary of the Invention The present invention provides a system for arranging payment of a user's debits incurred over a predetermined period, the system including: means for entering user debits for two or more service providers into the system; means for splitting the user debits into a series of similar fractional debits to be paid by the user in periodic payment contributions; COMS ID No: ARCS-160438 Received by IP Australia: Time 12:01 Date 2007-09-11 SEP.11.2007 12:02 +61299255911 GRIFFITH HACK #2038 P.005 /012 -3means for receiving the periodic payment contributions from the user; and means for allocating the periodic payment contributions to the debits of the service providers.

When the term service provider (or providers) is used herein it is intended to include a wide range of service providers (especially those that bill periodically) including telecommunications providers, utility providers (such as electricity, gas, water), pay television providers, local councils, internet service providers, credit and debit card providers etc, but can even include cleaners, handymen and maintenance people, cafes and restaurants, babysitters, counsellors, pool cleaners etc.

1$ when the term "debits" is used herein it usually refers to a record of a sum owing, for example money, but other details often associated with a debit, such as related consumption information, are also to be included in the definition of "debits".

Preferably, the user debits represent one of a fixed or forecast amount for the predetermined period.

Preferably, the forecast amount is determined based on Sat least one of the user's billing and consumption history.

Preferably the payment contribution is received from •the user at a fixed regular interval.

Preferably the system can receive payment contributions from multiple users. It is further preferred that the same or different selections of service providers for each user can be allocated with the payment contribution. Also the users can be domestic (eg families, households, individuals) or commercial (eg sole trader businesses, a firm, a corporation) or the user can COMS ID No: ARCS-160438 Received by IP Australia: Time 12:01 Date 2007-09-11 SEP.11.2007 12:03 +61299255911 GRIFFITH HACK #2038 P.006 /012 -4be any other entity that incurs debits for services rendered.

Preferably the allocation of the payment is automated.

Preferably the System includes a storage means f or storing information provided by and/or entered into the system by the Service providers relating to the debits of a user, the storage means being readable by the determining means such that the total amount of user debits can be determined and the payment contribution calculated.

Preferably the storage means is also adapted to store user information, such as a user identification number, user contact details, user billing history, user payment history etc.

Preferably the means for receiving the payment contribution includes electronic funds transfer, direct debiting of bank accounts and payment transactions via cash, cheq-ue or credit card. The term "accounts" is to be interpreted broadly and may include bank or financial institution accounts, internet credit storage areas, memory space on a computer etc.

Preferably the system further includes means for providing a receipt of payment to the user.

Preferably the system is facilitated by a computer.

Preferably the computer is connected to and accessible via a computer network, to which the user(s) and service providers have access. The computer network is preferably part of and/or facilitated by the Internet, or by an intranet or other computer :network. On the computer, the system can be embodied in computer software including one or more algorithms for facilitating debit enz:ry, and payment contribution determination and allocation.

COMS ID No: ARCS-160438 Received by IP Australia: Time 12:01 Date 2007-09-11 5 Brief Description of the Drawings Notwithstanding any other examples which may fall within the scope of the present invention, preferred forms of the invention will now be described, with reference to the accompanying drawings in which: Figure 1 shows true monthly expenditure data of an example household, expressed as a function of months of the year as well as a calculated monthly payment contribution in accordance with the invention.

10 Figure 2 shows cumulative monthly expenditure data of an example household, expressed as a function of months of the year as well as a cumulative calculated monthly payment -contribution in accordance with the invention.

Modes for Carrying out the Invention Notwithstanding any other forms which may fall within the scope of the present invention, a preferred system of arranging payment of the debits of a participating domestic or commercial user will now be described.

20 Typically the debits arose from two or more unrelated service providers and the number, source and type of debit that the system could deal with were unrestricted.

The system operated by using input debit data to calculate the total debits of a user over a predetermined period and then calculated a periodic payment contribution which was a fraction of the total debits. The system then obtained payment of the periodic contribution from the user, and allocated payment to the debits of the service providers at the same or another periodic interval.

In a preferred mode, the debits of a particular user were entered into the payment system by way a programmable storage means, typically a computer-based database. Data was entered manually by use of a keyboard, or a scanner, 6 for example, although direct on-line entry of information sourced from other databases was also a preferred method of accessioning debit information.

Usually the means for determining the total amount of user debits in a predetermined period and calculating the value of a periodic payment contribution was a computer system that was part of a computer network. The database was able to be read by or was operable as part of the computer system. The predetermined period was typically 10 one year, although any billing period could be used.

Total debits for the predetermined period were calculated and the calculation of a contribution, which represented a fraction of the total amount, was performed by the computer system. The contributions were calculated to be of similar value with the advantage that the total debits Sof the user were smoothed into approximately even individual contributions. Typically the debits were incurred at a fixed regular interval, for example on a monthly or fortnightly basis, although the length of 20 contribution period was not restricted to those mentioned and could vary from time to time. Usually such contributions were arranged to be in concordance with the intervals at which a user's personal income was received so that the burden of having sufficient funds available to pay random individual debits was removed.

In order to obtain payment of the periodic contribution from the user, and to allocate payment to the debits of the service providers, the transfer of money was required. The means for facilitating payment was automated and included electronic funds transfer, direct debiting of accounts and payment transactions via cash, cheque or credit card.

7 The computer system included an algorithm for automated allocation payment of the debits of the user.

Once again, the exchangeable commodity was money and the means for allocating payment included electronic funds transfer, direct debiting of accounts and payment transactions via cash, cheque or credit card. The computer system also included means for providing a receipt to the user.

The computer system as part of a network was S. 10 configured to receive payment contributions from multiple users. The computer was configured to allow for different selections of service providers for each user.

Furthermore the computer system was able to facilitate different selections of payment allocation to service providers (for example to pay some debits off faster than Sothers).

The database was also adapted to store user information, such as a user identification number, user contact details, user billing history, user payment 20 history etc, all accessible via the computer system.

Usually the system made use of the user Sidentification number as the common means of identification in matching a user, a user's debits, payment received, service providers and payments allocated. Communication and marketing features provided on the system included on-line information on accounts, available to both the user and service provider, and the display of advertising and help information etc from service providers to users etc.

The system allowed for changes to the agreed predetermined period and periodic payment contribution, for changes of service provider, and for changes in the method of payment of the periodic payment contribution.

8 Reminders and receipting was also facilitated by the computer system, usually by way of a receipt number, and missed or dishonoured payments were readily identifiable and easily able to be dealt with.

The database and computer system included a mainframe computer, microcomputer, hand held computing devices and other computing devices to achieve the desired outcomes.

Usually the computer system was connected to and accessible via the Internet, or a private computer network S. 10 or intranet. The system was typically hosted at one or more web pages at a site/location on the Internet, intranet or network.

The system handled a wide range of payments and removed the need of the user to be responsible for the management of payments to multiple budget billing plans.

The system therefore made bill management an easier and more efficient task. For household users, the system assisted in managing household expenses and removed the need to pay large single amounts in lump sums at random 20 times.

Furthermore each service provider benefited from a reduction in the costs of managing customers currently on payment plans and provided a way of broadening the uptake of users joining payment plans without an increase in customer management costs.

The following example illustrates more specifically one mode of operation of the system according to the invention. The characters in the example are fictitious.

Example Megan and Leon live in a home together. The property is rented. Their fixed expenditures from service 9 providers include water (billed quarterly per annum), electricity (billed quarterly per annum), telephone (billed three times per annum), rent (billed monthly per annum) and ISP fees (billed monthly per annum). They decided to subscribe to the debit payment scheme of the invention.

Typical debits in dollar amounts and dates incurred by Megan and Leon from service providers are shown in Table 1. The table shows that a total expenditure of 10 $12175 was incurred by Megan and Leon over a 12 month period. Megan is a motor bike mechanic and was the sole income earner. She was paid monthly. Periodic payment contributions were automatically deducted monthly from her bank account a few days after her pay was deposited. A deduction of $1025 per month was the agreed periodic S, payment contribution, which included the fees payable to ethe operators of the debit payment system and to cover the debits of the service providers. Megan had agreed to a flat monthly fee for the service rather than a fee based 20 on a percentage of the transaction or a flat fee per transaction.

smoothing effect of such payments is illustrated in Figures 1 and 2. Figure 1 shows the true monthly expenses of Megan and Leon as well as the calculated periodic payment contribution that they elected to make.

The smoothing effect of the periodic payment contribution is shown.

Figure 2 shows the cumulative true monthly expenses of Megan and Leon as well as the cumulative calculated periodic payment contribution that they elected to make.

The smoothing effect of the periodic payment contribution is shown.

10 Payment to the water company was effected in the following way. The operators of the debit payment system agreed to pay the water company monthly. The total amount to be paid over a year is $400. As a result, the system paid the water company $33.33 per month by an electronic funds transfer. The water company received all their estimated funds on a more regular basis than Megan and Leon may have been able to pay them, particularly in October which was normally a very expensive month for paying debits to service providers. The water company also did not have to operate a debit reminder and retrieval service.

Any variation after system service fees was able to be calculated at the end of the year and added to or deducted from the next years contribution, or billed or refunded at year end.

It is to be understood that, if any prior art information is referred to herein, such reference does not constitute an admission that the information forms a part 20 of the common general knowledge in the art, in Australia or any other country.

Whilst the invention has been described with reference to a number of preferred embodiments it should be appreciated that the invention can be embodied in many other forms.

11 TABLE 1 Jun I Jul Jan Feb IMar IApr IMay Aug I Sep I Oct INov I Dec

TOT

0 100 100 100 100 400 o150 200 300 175 825 -4 9: 0 .0250 250 250 750 i% 41 800 800 800 800 800 800 850 850 850 850 850 850 9900

Claims (3)

12- CLAIMS i. A system for arranging payment of a user's debits incurred over a predetermined period, the system including: means for entering user debits for two or more service providers into the system; means for splitting the user debits into a series of similar fractional debits to be paid by the user in periodic payment contributions; means for receiving the periodic payment contributions from the user; and means for allocating the periodic payment contributions to the debits of the service os 15 providers. o. 2. A system as claimed in claim 1, wherein the user debits represent one of a fixed or forecast amount for the predetermined period. 3. A system as claimed in claim 2, wherein the forecast amount is determined based on at least one of the user's billing and consumption history. 4. A system as claimed in any one of claims 1 to 3, wherein allocation of the payment is automated. 9 A system as claimed in any one of the preceding claims, wherein the system can receive payment contributions from multiple users. 6. A system as claimed in any one of the preceding claims, wherein the same or different selections of COMS ID No: ARCS-160438 Received by IP Australia: Time 12:01 Date 2007-09-11 SEP.11.2007 12:03 +61299255911 GRIFFITH HACK #203B P.008 /012 service providers for each user Can be allocated with the payment contribution- 7. A system as claimed in any one of the preceding claims, including a storage means for storing information provided by and/or entered into the system by the ser-vice providers relating to the debits of a user, the Storage means being readable by the determining means such that the total amount of user debits can be determined and the payment contribution calculated. 8. A system as claimed in claim 7, wherein the storage means is also adapted to store user information. 9. A system as claimed in any one of the preceding claims wherein the means for receiving the payment contribution includes electronic funds transfer, direct debiting of bank accounts and payment transactions via cash, cheque or credit card. 10. A system as claimed in any one of the preceding. claims, wherein the system further includes means for providing a reep fpyetto the user. 71 I. A system as claimed in any one of the preceding claims, wherein the system is facilitated by a computer. 12. A system as claimed in any one of the preceding claims, wherein the computer is connected to and acce'ssible via a computer network, to which the user(s) and service providers have access. COMS ID No: ARCS-160438 Received by IP Australia: Time 12:01 Date 2007-09-11 SEP.11.2007 12:03 +61299255911 GRIFFITH HACK #2038 P.009 /012 -14-

13. A system as clairred in claim 12, wherein the computer network is preferably part of and/or facilitated by the Internet, or by an intranet or other computer network.

14. A system for arranging payment of a user's debits substantially as herein described with reference to the Example and the accompanying drawings. 0 0 COMS ID No: ARCS-160438 Received by IP Australia: Time 12:01 Date 2007-09-11