GUARANTEED COLLECTION AND PAYMENT METHOD

Technical Field

The present invention relates to an end-to-end digital collection and payment method that provides bank guarantee in deferred payments, and that addresses all retail and commercial banking customers.

More specifically, the present invention relates to a method that provides payment guarantee to both parties (debtor and creditor) in debt and credit relationship, and that comprises the process step of crediting said payment record by bank, and payment to the creditor in case of insufficient balance on the date of maturity on payment and collection system account.

State of the Art

In the state of the art, there are many different payment methods. Today, bills are used as the deferred payment instrument by many parties who do not have banking products such as credit cards and checks etc.

In legal terms, bill is a written document that is signed by a person or organization to constitute the evidence of an incident, approved indisputably, and that constitutes an evidence against the signer. Bills are generally in the form of financial indebtedness or acceptance of an ownership relationship such as deed, shareholding.

On the other hand, check is a bill of exchange with the quality of commercial paper, and is a confirmation order that is issued for a money transfer. Contrary to bills payable or bills, check is not a pledge for payment of bill amount after a certain period. Checks can only be drawn on banks and the check books issued by banks can be used as checks.

In case the debt is not payed within due date, the bill is protested, and this causes loss of trust on the bill. In such cases, the creditor becomes a victim, and since legal proceedings are also started for long-term bills due to the defaulted bill, the debtor becomes a victim as well.

Today, since the bills used as deferred payment instrument cannot be properly tracked and assessed, it is not possible to offer trust and payment guarantee to the debtor and creditor.

The patent document with patent number TR 2014/13791 relates to a check and bill collection method on an electronic environment that enables scanning of documents -such as check, bill- for using in post offices or other contracted channels with scanner to transfer them to the electronic environment, approval of the documents on the first environment of receipt, and execution of collection. However, there is no method that can provide guarantee in payment transactions such as check or bill in this invention.

The patent document with patent number TR 2019/06626 relates to a collection on credit and electronic check system supported with credit insurance that reduces the resource costs arising from the interest. However, there is no method that offers direct bank guarantee and that can ensure early collection of debt before the due date in this invention.

The patent document with patent number TR 2019/18095 relates to a payment system that provides assurance for the bills utilizing indemnity insurance, which is a nominal debt instrument. However, there is no method that offers direct bank guarantee and that can ensure early collection of debt before the due date in this invention.

In conclusion, transferring of most of the services that can cause loss of time, including the check and bill transactions that are frequently used by banking customers, to electronic environment, which leads to savings on labor and other costs and establishment of a mutual trust environment between debtor and creditor, and the requirement of prevention of security violations due to use of these instruments by third parties, has entailed creating the solution subject to the present invention.

Objective and Brief Description of Present Invention

The objective of present invention is to provide a payment and collection method that offers bank guarantee against potential problems between debtor and creditor in deferred payment transactions such as check and bill.

Another objective of present invention is to eliminate the risk of lost/stolen/altered checks and bills in deferred transactions and to present a method that does not comprise physical use or delivery terms in the banking sector.

Another objective of present invention is to ensure transferring of most of the services that can cause loss of time to electronic environment, and thus savings on labor and other costs.

In order to accomplish the above objectives, present invention is a collection and payment method to be used by retail and corporate banking customers, that gives secure payment guarantee to the parties in debt and credit relationship, and that allows performance of all transactions on digital environment, comprising the below steps, - the customers make application via internet banking and mobile application, the bank performs an internal and external intelligence and credit risk assessment for the customer,

- the bank creates a system record and specify the upper limits of use for the endorsed customers,

- the bank opens a system account or links an existing account with the customer,

- the bank creates a guaranteed payment and collection system record,

- the creditor collects the relevant amount on the date of maturity,

- in case there is no sufficient balance in the account of debtor on the date of maturity, the bank credits the said payment system record by bank, and pays the amount to the creditor.

In an alternative embodiment of present invention, system application can be made in bank branches in person.

The internal and external intelligence and credit risk assessment for the customer is preferably performed by credit bureau.

Present invention also comprises the process step of sending notification to the applying customers regarding the approval or rejection of system record by the bank.

In an alternative embodiment of present invention, the creditor is able to perform one of the below transactions

- being able to partially or wholly collect the relevant amount from the bank before the date of maturity,

- being able to partially or wholly cancel the collection and payment record of the creditor,

- being able to prospectively or retrospectively transfer the collection and payment system record of the creditor in a way that allows use in the payments to third persons partially or wholly instead of the collection transaction stated in “the creditor collects the relevant amount on the date of maturity” step.

Another embodiment of present invention comprises the process step of “logging in to the interface in the application and performing sub-user definition and authorization procedures for the creditor customers”.

An alternative embodiment of present invention comprises the process step of “entering the information such as the transaction amount, maturity date, name-surname required for creation of records for creditor customers, and creation of barcode” after the process step of “logging in to the interface in the application and performing sub-user definition and authorization processes”.

Brief Description of Drawings

Figure 1 is a flow chart for debtor customer application regarding the method subject to present invention.

Figure 2 is a flow chart for creditor customer application regarding the method subject to present invention.

Brief Description of References

100. The customer applies for using guaranteed collection and payment system,

101. The bank performs an internal and external intelligence and credit risk assessment for the customer,

102. The bank performs a risk assessment for Guaranteed collection and payment system customer and specifies the customer’s credit score and worthiness,

103. The bank rejects the application of the customer whose credit score and worthiness has not been endorsed,

104. The bank opens a Guaranteed collection and payment System account for the endorsed customers or links an existing account with the customer for Guaranteed collection and payment system, specifies the upper limits and adjusts the limits specific to the product,

105. The bank creates a guaranteed payment and collection system record,

106. When the account is created, the bank creates a user name and password and sends a notification to the customer via SMS/E-Mail/Mobile Banking app,

107. After the record is created, the bank sends an SMS/E-Mail to the debtor and creditor, and if it is a bank customer, sends a notification via mobile banking,

200. The creditor collects the relevant amount on the date of maturity,

201. In case there is no sufficient balance in the account of debtor on the date of maturity, the bank credits the said guaranteed collection and payment system record by bank, and pays the amount to the creditor, 300. If the creditor is a bank customer, the bank collects the amount in the guaranteed collection and payment system record partially or wholly, deducting the checkoffs favoring the number of days until the date of maturity on the current early collection rate before the date of maturity,

400. If the creditor is a bank customer, the bank will be able to cancel the amount in the guaranteed collection and payment system record partially or wholly,

500. If the creditor is a bank customer, the bank will be able to prospectively or retrospectively transfer the collection and payment system record of the creditor in a way that allows use in the payments to third persons partially or wholly,

1004 The bank creates a user name and password for the guaranteed collection and payment system and sends them to the creditor customer via SMS and E-mail,

1005. The creditor customer logs in to the interface designed for the guaranteed collection and payment system and performs sub-user definition and authorization procedures,

1006. The customer enters the information such as the transaction amount, maturity date, namesurname of creditor required for creation of guaranteed collection and payment system records and creates a barcode,

1007. The bank sends a transaction for approval of branch, or customer that will make the payment via mobile banking/guaranteed collection and payment system mobile app/internet banking, the debtor customer approves the transaction via the mentioned channels, and the bank creates a guaranteed collection and payment system record,

1008. When the payment and collection record is created, the bank sends a notification to the debtor/creditor customers via SMS/E-Mail/Mobile Banking app,

Detailed Description of The Invention

The method of the present invention relates to a digital payment and collection method of the guaranteed collection and payment system that can be used by all persons and organizations, and that provides payment guarantee to both parties (debtor and creditor) in debt and credit relationship.

For allowing the use of this method, initially a guaranteed collection and payment system record is created. Then, the amount(s) in these record(s) can be collected by the creditor before the date of maturity, modified and transferred to a third party (person/organization) prospectively or retrospectively, and if required, canceled partially or wholly. Alternatively, those can also be sent as collection and payment record with more than one installment at once. The customers can perform the processes of guaranteed collection and payment creation via bank’s mobile/retail & commercial, internet banking/guaranteed collection and payment app and/or via branches. This record can be created by both debtor and creditor. The debtor persons and organizations can be named as “Guaranteed collection and payment debtor”, and the creditor persons and organizations can be named as “Guaranteed collection and payment creditor” in the system.

With the method subject to present invention, initially an account shall be created for guaranteed collection and payment system. In respect of its technical characteristics; for being able to make guaranteed collection and payment system subject to the payment and collection, a drawing account is created; for being able to provide bank guarantee, a credit limit is defined for the user, and the account and limit are linked to each other. After linking, guaranteed collection and payment system will be ready for creation of deferred and guaranteed collection and payment order to another party with the quality of an organization or person by user.

The step of creation of guaranteed collection and payment system record is basically similar to creation of a future EFT/remittance order. This step can be performed with T.R. Identity Number/Tax Identification Number, name-surname and contact information of the person for whom a guaranteed collection and payment order is created. While it is possible to create a guaranteed collection and payment system record with a single payment, it is also possible to create guaranteed collection and payment system records with flexible installments in a single step. Guaranteed collection and payment system record can be created using the limits of the bank customer, as well as the drawing account balance of that person.

Guaranteed collection and payment system allows use of guaranteed collection and payment system record, created in favor of its creditor, in payments to third persons, and 24/7 transfer of bank payment guarantee partially or wholly to third persons. Transfer procedures can be performed via all channels where guaranteed collection and payment system is involved, and it is designed to allow single transfer/multiple transfers uniformly with the information obtained in the process of creation.

Guaranteed collection and payment system also allows its creditor to flexibly reuse the record sent to her/him in the future payments to third persons. Guaranteed collection and payment system’s creditor can change the maturity date written on the system while transferring guaranteed collection and payment system sent to her/him. When the date of maturity is transferred retrospectively, a certain amount of discount on the remaining days to the date of maturity is applied, and it is transferred to the third person. In case the date of maturity is transferred prospectively, there will be no changes in terms of rights and obligations of debtor, and the debtor will make the payment until the date of maturity; in case there is no sufficient balance in the account at the date of maturity, the bank will make the payment to the creditor using guaranteed collection and payment system limits.

If collection of the amount in guaranteed collection and payment system record is requested before the maturity date; guaranteed collection and payment system will allow collection of the amount in guaranteed collection and payment system record by the creditor customer before the date of maturity partially or wholly. In this case, payment is made to the creditor, taking into account the legal deductions, if any, on the requested amount, applying a discount on the number of days until the date of maturity. Early payment process has also been designed in a way to allow 24/7 payment via all channels where guaranteed collection and payment system product is involved. Only the creditor can collect the amount in the record before the date of maturity, and for being able to receive early payment, the creditor does not need to have credit limit. In case of Cancellation of guaranteed collection and payment system, it is possible for the creditor, who is only the beneficiary party after guaranteed collection and payment system record is created, to partially or wholly perform cancellation procedure on the relevant record. Debtor is not able to perform any cancellation procedure. The creditor, who is the beneficiary party, is able to perform cancellation procedure through all channels, including bank’s main mobile banking app/internet banking/guaranteed collection and payment system mobile application and branches.

Above paragraphs regarding creation of guaranteed collection and payment system, and all the facts regarding guaranteed collection and payment system point out the transactions that can be made by the debtor and creditor in case they are the customers of the bank. In case the creditor of guaranteed collection and payment system is not the customer of the bank, it will only be possible to transfer the guaranteed collection and payment system credit amount to the account of creditor, which is linked to the bank IBAN number that was sent to the debtor during creation of payment record. The payment that will be made by the debtor with guaranteed collection and payment system on the date of maturity is fully assured by the bank, and the creditor will be able to collect the amount from the relevant account in creditor’s bank. In case the creditor, who is a customer of another bank, becomes a customer of this bank, it will be possible for the creditor to benefit from all the mentioned opportunities.

In the purchasing/sales transactions to be made from the corporate offices, the flow is started by the office. In this context, for allowing the customer performing the sales to start the flow in guaranteed collection and payment system, guaranteed collection and payment record office interface has been created in addition to the current internet banking and mobile application. All trade companies that are engaged in wholesale or retail and/or manufacturing can use guaranteed collection and payment system office interface and can make repayment transactions for the sales to be made under the guarantee of the bank. The basic information in the interface, such as date of maturity and amount, which are required for creation of guaranteed collection and payment system record, will be entered by guaranteed collection and payment system office. Such information entered by the office can be fulfilled by creating a barcode, and by scanning the barcode and approving during the payment by the customer; will be submitted to the approval of customer by entering simple information such as TR ID Number/Tax ID Number/mobile number/amount/date of maturity, the guaranteed collection and payment system customer, who will make the payment, will approve the information; and then guaranteed collection and payment system record will be created.

In case guaranteed collection and payment system office requests creation of collection recored using the interface, upon the application of company; portfolio branch will be able to define the office as “Guaranteed collection and payment system office”, which will allow the office to use the interface with a link for usage and a temporary password that will be sent to the office after such definition process.

Figure 1 includes a flow chart that summarizes the process steps for the debtor bank customer. Initially, the debtor customer applies for using guaranteed collection and payment system (100). The bank performs an internal and external intelligence and credit risk assessment for the debtor customer (101 ). Then the bank performs a risk assessment for Guaranteed collection and payment system customer and specifies the customer’s credit score and worthiness (102). The bank rejects the application of the customer whose credit score and worthiness has not been endorsed (103) or the bank opens a guaranteed collection and payment system account for the customers endorsed as a result of compliance with the standards specified by the bank, and determination of upper limits of use specific to the retail and commercial banking customers; or links an existing account with the customer and customer’s product for guaranteed collection and payment system (104). Then the bank creates a guaranteed payment and collection system record (105) and opens it for use of account owner. An instant notification is sent to the customer, for whom an account is defined, via SMS/E-mail/Mobile banking application (106). After guaranteed collection and payment system record is created, a SMS/E-Mail notification is sent to the debtor and creditor; and if those parties are customers of the bank, a mobile banking notification is sent to those parties (107). The creditor is able to collect the relevant amount on the date of maturity (200). In case there is no sufficient balance in the account of debtor on the date of maturity, the bank credits the said guaranteed collection and payment system record and pays the amount to the creditor (201 ). If the creditor is a bank customer, the bank collects the amount in the guaranteed collection and payment system record partially or wholly, deducting the checkoffs favoring the number of days until the date of maturity on the current early collection rate before the date of maturity (300). If the creditor is a bank customer, the bank will be able to cancel the amount in the guaranteed collection and payment system record partially or wholly (400). At the same time, if the creditor is a bank customer, the bank will be able to prospectively or retrospectively transfer the collection and payment system record of the creditor in a way that allows use in the payments to third persons partially or wholly (500).

In all aforementioned process steps, including approval or rejection of system record by bank; according to the quality of process, the bank sends notification to both creditor and debtor parties.

In another embodiment of present invention, guaranteed collection and payment method is offered to the debtor party, as well as creditor customers. Payment process has the quality of collection process for the creditor side of payment. The system allows the creditor to start the process of creation of guaranteed collection and payment system record and creation of the record with the approval of the debtor, thus allowing to specify the parameters such as amount, date of maturity, number of installments under the control of establishment/organization.

Figure 2 includes a flow chart that summarizes the method steps of present invention for the creditor customers. The Debtor Customer applies for using guaranteed collection and payment system (100). After the application, the bank performs an internal and external intelligence and credit risk assessment for the creditor customer (101 ). The bank carries out this operation, evaluating the information received from Credit Bureau services and many services used by the bank. Credit score and worthiness is determined through a credit risk assessment for the guaranteed collection and payment creditor customer that is preferably organized by Credit Bureau (102). The bank rejects the applications of the customer whose credit score and worthiness has not been endorsed (103).

The bank creates a user name and password for the guaranteed collection and payment system and sends them to the creditor customer that makes the application via SMS and E-mail (1004). The creditor customer is able to log in to the interface designed for the guaranteed collection and payment system and perform sub-user definition and authorization procedures (1005).

After the authorization procedure, the customer enters the information such as the transaction amount, maturity date, name-surname of creditor required for creation of guaranteed collection and payment system records and creates a barcode (1006). Alternatively, the bank sends a transaction for approval of branch, or customer that will make the payment via mobile banking/guaranteed collection and payment system mobile app/internet banking, the debtor customer approves the transaction via the mentioned channels, and the bank creates a guaranteed collection and payment system record (1007). The bank is able to create a guaranteed payment and collection system record (105). When the payment and collection record is created, the bank sends a notification to the debtor/creditor customers via SMS/E-Mail/Mobile Banking app (1008). The creditor is able to collect the relevant amount on the date of maturity (200). In case there is no sufficient balance in the account of debtor on the date of maturity, the bank credits the said guaranteed collection and payment system record and pays the amount to the creditor (201). If the creditor is a bank customer, the bank collects the amount in the guaranteed collection and payment system record partially or wholly, deducting the checkoffs favoring the number of days until the date of maturity on the current early collection rate before the date of maturity (300). In the same case, it is possible to partially or wholly cancel guaranteed collection and payment system record (400) and to transfer the amount in the record prospectively or retrospectively for using partially or wholly in the payments to third persons (500).