Automatic payment system for a plurality of remote merchants

Abstract

An automated payment system for a plurality of remote merchants includes a clearinghouse server, a plurality of customer tags and a plurality of local merchant systems. The clearinghouse system includes a customer database and merchant database. A customer joining the clearinghouse service is provided with a customer tag, such as an RFID transponder, which stores a tag identification number. Each remote merchant includes a local merchant system which includes a reader, point-of-sale system, a customer database and a transaction database. The reader is adapted to automatically retrieve the tag identification number from a customer tag when the customer tag is within an associated reading area, such as a stopping location of drive-through lane or a short-term parking stall. The customer's order is entered and processed on the point-of-sale system which is adapted to handle both standard cash transactions and authorized cashless transactions. The authorization database includes tag identification numbers for each tag of a customer authorized to use the automated payment system. A search is conducted in the authorization database for the tag identification number retrieved by the reader, and if found, the point-of-sale system is authorized to process a cashless transaction for the associated customer. The transaction database stores information for each authorized cashless transaction completed by the point-of-sale system, and periodically transmits the stored transaction information to the clearinghouse system which withdraws funds from the associated customer account and remits payment to the associated merchant account.