Online electronic transaction and funds transfer method and system

A computer implemented system for securely transmitting sensitive financial transaction information over the Internet by utilizing the security of the Automated Clearing House Network when conducting online purchases of goods or services by a customer from one or more participating vendors over the Internet using a system manager, said customer having a customer bank account at a financial institution and said participating vendors each having a vendor bank account at a financial institution, said system manger having an originator bank account for said system manager to receive electronic transfer of funds, said originator account being accessible on a computer programmed to transfer funds electronically over a secure communication channel, by a telecommunication device which is either telephone or Internet-based to the Automated Clearing House Network, said system manager, customer and vendor bank accounts being accessible through the Automated Clearing House Network, said system comprising:

• a) a system web server accessible to customer and vendor terminals over the Internet via a plurality of said client terminals, said web server comprising computer software which when executed maintains an interactive system manager web site to receive communications of proposed charge amounts in association with a customer identification from said customer and vendor identification from said vendor;
• b) a secure system server communicating with said system web server, said secure system server comprising a central processing unit, a memory, and a non-transitory computer-readable medium with programmed instructions stored thereon, that when executed by a processor:
• i) communicates over the Internet with a plurality of bank servers accessible to the Internet;
• ii) maintains customer accounts representing a balance of funds held to said customer's credit in a said originator account;
• iii) receives customer identification and payment instructions in respect of goods or services for purchase by a customer along with vendor identifications from a participating vendor via the web server;
• iv) stores the vendor identification instructions in a first memory location;
• v) stores the payment instructions in a second memory location;
• vi) generates an electronic file from said stored data to form an Automated Clearing House data file having the Automated Clearing House file format specifications for communicating Payment. Distribution System instructions;
• vii) activates an application, activating the telecommunications device which is either telephone or internet-based by receiving instructions from the processor which executes programmed instructions stored on the non-transitory computer-readable medium to instruct the telecommunications device, when telephone based, to open said secure communication channel and dial a receiving telephone party address or when the device is internet-based by issuing instructions to open an online session to generate a Payment Distribution System instruction for communicating over said secure communication channel with a receiving internet party address;
• viii) transmits the said Payment Distribution System instruction to the Automated Clearing House Network via said telecommunication device which is either telephone or internet-based over said secure communication channel;
• ix) receives via said telecommunication device which is either telephone or internet-based over said secure communication channel from the Automated Clearing House Network an indication that the Automated Clearing House data file was transmitted and received successfully;
• x) draws funds through the Automated Clearing House Network over said secure communication channel, by said telecommunication device which is either telephone or Internet-based to the Automated Clearing House system from said customer bank account when said system manager has been provided by said customer an authorization to draw said funds from said customer hank account;
• xi) receives via the Internet a charge amount for a proposed purchase by said customer from a first participating vendor and identification of said customer and said first vendor;
• xii) either before or after receiving a charge amount for a proposed purchase, transfers sufficient funds through the Automated Clearing House Network over said secure communication channel, by said telecommunication device to the Automated Clearing House Network for said purchase into said originator account to said customer's credit;
• xiii) if said charge amount is in a currency different from the currency of said funds to said customer's credit in said originator account converts said charge amount to said customer's credit in said originator account to the currency of said funds to said customer's credit in said originator account;
• xiv) confirms the availability of funds in association with said customer identification for said charge amount and communicates via the Internet the results of said confirmation to said first vendor to proceed with said purchase;
• xv) electronically transfers the amount of said charge amount to said first vendor's bank account through the Automated Clearing House Network over said secure communication channel, by said telecommunication device to the Automated Clearing House Network;
• xvi) confirms via the Internet to the customer and to said first vendor the transfer of said charge amount to said vendor.