Electronic bill pay system

An electronic funds transfer network for transferring funds from a consumer account to a biller account, comprising:

• order input means for consumer input of a bill pay order, said bill pay order including at least a reference to a biller identification (biller ID), a payment amount, and an identifier of a consumer-biller account to be credited, wherein said consumer-biller account is used to determine amounts owed to a biller by a consumer;
• a first transaction processor, configured to at least process debit portions of accounting transactions against the consumer account;
• means for transmitting said bill pay order from said order input means to said first transaction processor;
• payment data packet generation means, controlled by said first transaction processor, for generating a payment data packet based on said bill pay order, said payment data packet comprising at least data fields indicating said biller ID, said payment amount and said consumer-biller account identifier;
• an electronic packet transfer network which electronically couples said payment data packet generation means at an originating node to a plurality of similar nodes, said electronic packet transfer network including destination translation means for translating said biller ID field of said payment data packet into a pointer to a destination node;
• a second transaction processor located at said destination node, configured to at least maintain a balance of the biller account and process credit portions of accounting transactions against the biller account;
• payment data packet accepting means, coupled to said electronic packet transfer network and to said second transaction processor, for accepting said payment data packet from said electronic packet transfer network and applying a credit transaction to the biller account according to said payment amount field of said payment data packet;
• and
• a biller accounts receivable data processor, coupled to one of said electronic packet transfer network or said payment data packet accepting means, which processes biller data included in said payment data packet and provides said biller data in a form used by said biller to update said consumer-biller account to reflect a credit based on to said payment amount.

A method of paying bills electronically, wherein funds are effectively transferred between a consumer and a biller, comprising the steps of:

• accepting a payment amount and a biller identification (ID) from the consumer;
• converting said payment amount and said biller ID into a bill pay order, which bill pay order is stored as an electronic data record;
• transmitting said bill pay order to a first transaction processor, said first transaction processor being a computer configured to apply debit portions of accounting transactions against said consumer account;
• obligating a consumer for said payment amount;
• transmitting an outbound payment data packet from said first transaction processor to an electronic payment network, said outbound payment data packet including at least data fields indicating said payment amount, said biller ID and an indication of a consumer-biller account number;
• identifying, from said biller ID field of said outbound payment data packet, a destination node for said outbound payment data packet and a destination account identifier (ID);
• transmitting an inbound payment data packet from said electronic payment network to a second transaction processor located at said destination node, said inbound payment data packet including at least data fields indicating an inbound payment amount and said destination account ID, said second transaction processor being a computer configured to maintain a balance of a biller account and to apply credit portions of accounting transactions against accounts including a biller account identified by said destination account ID;
• applying a credit of said inbound payment amount against said biller account using said second transaction processor;
• and
• providing at least said inbound payment amount and said consumer-biller account number to a biller accounts receivable data processor.

A method for paying a bill from a biller to a consumer, comprising the steps of:

• verifying authority of the consumer to issue a bill pay order;
• accepting said bill pay order from the consumer, said bill pay order comprising data elements indicating at least a source of funds, a biller ID, a customer-biller account number assigned by the biller and a payment amount, wherein said biller ID identifies the biller to each consumer;
• electronically transmitting an outbound payment data packet from a first transaction processor to an electronic payment network, wherein said outbound payment data packet includes at least said payment amount, said consumer-biller account number and said biller ID, and wherein said first transaction processor is configured to process debits and credits applied to said source of funds;
• electronically comparing said biller ID to an index of a biller reference file to determine a destination node for an inbound payment data packet corresponding to said outbound payment data packet;
• transmitting said inbound payment data packet from said electronic payment network to a second transaction processor located at said destination node, wherein said second transaction processor is configured to process debits and credits applied to said biller account;
• applying a credit to said biller account with said second transaction processor, said credit being in an amount corresponding to a payment amount of said inbound payment data packet;
• applying a debit to an account held in favor of said consumer financial institution by an amount corresponding to said payment amount of said outbound payment data packet;
• and
• providing, from said second transaction processor, data fields from said inbound payment data packet including at least said payment amount and said consumer-biller account number.

An electronic payment network for transferring funds from a consumer to a biller to pay a bill owed by the consumer to the biller, comprising:

• a network coupling transaction processors;
• a first transaction processor comprising means for sending an outbound payment data packet to said electronic payment network in response to a bill pay order issued by the consumer, said outbound payment data packet identifying the biller by a biller ID assigned to the biller for use with each consumer who is a customer of the biller and which biller ID is disclosed to consumers desiring to make payments to the biller using said electronic payment network;
• a conversion means, coupled to said electronic payment network, for converting an outbound payment data packet to an inbound payment data packet, including a conversion of said biller ID to a destination node and a destination account ID;
• a second transaction processor located at said destination node, capable of receiving said inbound payment data packet from said electronic payment network, identifying a biller account from said biller ID, debiting an account by a payment amount included in said outbound payment data packet, and crediting an account by a payment amount included in said inbound payment data packet;
• and
• means for crediting the consumer's account with the biller by an amount equivalent to said payment amount included in said inbound payment data packet.