Payment clearing network for electronic financial transactions and related personal financial transaction device

Abstract

Described herein are networks and related devices and methods for facilitating the electronic transfer of funds and electronic purchases between consumers, merchants, and other parties. Also facilitated by the principles described herein is the electronic transfer of funds or payments between individuals. The disclosed principles provide for the funds of a user's account to never leave his original financial account until the financial transaction takes place. Thus, no special accounts within the payment system are required to be opened, maintained, or funded by a user. Instead, funds are simply transferred to or from a user's associated financial account by the financial institution maintaining that account and in accordance with instructions from the network. Thus, the present disclosure provides for fund transfers and purchases between parties in a secure, efficient, and the user-friendly manner. The disclosed principles provide for such transactions using, in some embodiments, portable devices, which may be dedicated devices associated with the disclosed network, or available consumer devices configured to operate with the network.