Mastercard International Incorporated

John Doherty

Stephen Parento

Alexis Suberville

Antonia Stroeh

Holliday Haynes

Peter J Flor

Wayne Molitor

An authorization request for a payment transaction is obtained, from a given one of a plurality of billers, over a payment network having a standard clearing and settlement time period. Via the payment network, a special IOU approval authorization request response to the authorization request for the payment transaction is passed, indicating that the given one of the plurality of billers will be paid in connection with the payment transaction after expiration of a grace period from a time of the authorization request, regardless of whether funds are available for an account associated with the payment transaction. The grace period is longer than the standard clearing and settlement time period. The payment transaction is not settled until expiration of the grace period.

Electronic grace period billing

An authorization request for a payment transaction is obtained, from a given one of a plurality of billers, over a payment network having a standard clearing and settlement time period. Via the payment network, a special incremental payments approval authorization request response to the authorization request for the payment transaction is passed, indicating that the given one of the plurality of billers will be paid in connection with the payment transaction in a plurality of incremental payments made in time increments over a selected time period following the authorization request, optionally regardless of whether funds are available for an account associated with the payment transaction. The selected time period is longer than the standard clearing and settlement time period. The payment transaction is not settled until expiration of the selected time period.

Electronic incremental payments

A plurality of billers are enrolled in a by-item bill payment program. An invoice is obtained from a given one of said billers, including multiple charges corresponding to at least one of goods and services purchased from the given one of said billers by a first payor. The invoice is modified, based at least in part on said enrolling step, to generate at least one modified invoice including multiple charges corresponding to at least one of goods and services purchased from the given one of said billers by said first payor, the multiple charges being handled under different payment terms. The at least one modified invoice is sent to said first payor; payment from said first payor is obtained; and the obtained payment is allocated. A specific exemplary software architecture for implementing the method is also disclosed.

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Brooklyn, NY, United States of America

John Doherty