CROSS-REFERENCE TO RELATED APPLICATIONS

This application claims the benefit of, and priority to, U.S. Provisional Patent Application No. 62/547,248 filed on August 18, 2017. The entire disclosure of the above application is incorporated herein by reference.

FIELD

The present disclosure relates to the facilitating of electronic payments in conjunction with brick and mortar product distributors, specifically the facilitating of electronic payments directly from merchants to suppliers when physical distribution is handled by a third party entity.

BACKGROUND

Traditionally, many product manufacturers and suppliers focus on the production of goods and utilize third party entities for actually distributing their products to merchants for sale. These third party distributors are contracted by the supplier to deliver the product on their behalf acting as an intermediary for physical delivery of products. In many cases, merchants will pay distributors directly for the product on delivery, who must then settle with the supplier as part of a reconciliation process. Commonly, this results in large, bulk payments made from distributor to supplier using wire transfers and other sophisticated methods.

Many times, the merchants that are receiving these products are small businesses, many of which lack the ability to perform wire transfers and other sophisticated payment methods. In many instances, these small businesses may lack the ability to perform electronic payments entirely and may operate primarily as cash businesses. As such, delivery drivers for distributors will often visit several small businesses throughout a day to deliver products and receive cash in return. This leads to a number of potential issues: there is a large risk and liability in driving around with a large amount of cash due to the potential of theft by an outside party or the employee themselves, extra resources must be expended by the distributor to deposit or otherwise process the cash payments, and it may be difficult to keep track of what merchant made which payments leading to more difficult dispute resolution. For instance, if product gets damaged prior to or during delivery, the merchant may pay cash for only the useful product. The distributor must keep track of that cash payment and the reasoning for paying under the expected amount, which must be

communicated during reconciliation, and ensured that only the reduced amount is provided in the payment back to the supplier.

Thus, there is a need for a technological solution to facilitate direct electronic payments between merchants and suppliers with minimal modification to existing distribution relationships and mechanisms.

SUMMARY

The present disclosure provides a description of systems and methods for facilitating electronic payments direct to suppliers in product distribution. By using the traditional three party system for distribution, existing relationships and infrastructure may be maintained with minimal modification necessary to implement the solution discussed herein. The methods discussed herein provide for a solution that operates with little to no change to existing systems for suppliers and merchants, resulting in easier and more efficient adoption, increasing uptime and decreasing resource expenditure. Electronic invoicing may be utilized by distributors and machine-readable codes used to convey data to merchants that can initiate the electronic payments, providing for easier updating and modification if problems occur during distribution, faster reconciliation, and the ability for the distributor to distribute products without having to accept payment from merchants, reducing the risk of theft and liability of the distributor.

A method for facilitating electronic payments direct to suppliers in product distribution includes: receiving, by a receiving device of a processing server, invoice data from a computing system associated with a first entity, wherein the invoice data includes at least an invoice identifier, an invoice amount, an entity identifier associated with the first entity, and one or more products; generating, by a generation module of the processing server, a machine-readable code, wherein the machine-readable code is encoded with at least the invoice identifier, invoice amount, and entity identifier; generating, by the generation module of the processing server, an electronic invoice, wherein the electronic invoice includes display of at least the invoice data and the generated machine-readable code; outputting, by the processing server, the generated electronic invoice for presentation during delivery of the one or more products to a second entity; receiving, by an input device interfaced with the processing server, comment data associated with the electronic invoice; and electronically transmitting, by a transmitting device of the processing server, reconciliation data for the electronic invoice, wherein the reconciliation data includes at least the invoice identifier and the comment data.

A system for facilitating electronic payments direct to suppliers in product distribution includes: a transmitting device of a processing server; an input device interfaced with the processing server; a receiving device of the processing server configured to receive invoice data from a computing system associated with a first entity, wherein the invoice data includes at least an invoice identifier, an invoice amount, an entity identifier associated with the first entity, and one or more products; and a generation module of the processing server configured to generate a machine- readable code, wherein the machine-readable code is encoded with at least the invoice identifier, invoice amount, and entity identifier, and generate an electronic invoice, wherein the electronic invoice includes display of at least the invoice data and the generated machine-readable code, wherein the processing server is configured to the generated electronic invoice for presentation during delivery of the one or more products to a second entity, the input device interfaced with the processing server is configured to receive comment data associated with the electronic invoice, and the transmitting device of the processing server is configured to electronically transmit reconciliation data for the electronic invoice, wherein the reconciliation data includes at least the invoice identifier and the comment data.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

The scope of the present disclosure is best understood from the following detailed description of exemplary embodiments when read in conjunction with the accompanying drawings. Included in the drawings are the following figures:

FIG. 1 is a block diagram illustrating a high level system architecture for facilitating electronic payments between merchants and suppliers by brick and mortar distributors in accordance with exemplary embodiments.

FIG. 2 is a block diagram illustrating the processing server of the system of FIG. 1 for the facilitating of electronic payments by a brick and mortar distributor in accordance with exemplary embodiments. FIG. 3 is a flow diagram illustrating a process for the distribution of a product and associated electronic payment using the system of FIG. 1 in accordance with exemplary embodiments.

FIG. 4 is a flow chart illustrating an exemplary method for facilitating electronic payments direct to suppliers in product distribution in accordance with exemplary embodiments.

FIG. 5 is a block diagram illustrating a computer system architecture in accordance with exemplary embodiments.

Further areas of applicability of the present disclosure will become apparent from the detailed description provided hereinafter. It should be understood that the detailed description of exemplary embodiments are intended for illustration purposes only and are, therefore, not intended to necessarily limit the scope of the disclosure.

DETAILED DESCRIPTION

Glossary of Terms

Payment Network - A system or network used for the transfer of money via the use of cash-substitutes for thousands, millions, and even billions of transactions during a given period. Payment networks may use a variety of different protocols and procedures in order to process the transfer of money for various types of transactions. Transactions that may be performed via a payment network may include product or service purchases, credit purchases, debit transactions, fund transfers, account withdrawals, etc. Payment networks may be configured to perform transactions via cash-substitutes, which may include payment cards, letters of credit, checks, transaction accounts, etc. Examples of networks or systems configured to perform as payment networks include those operated by MasterCard ^® , VISA ^® , Discover ^® , American Express ^® , PayPal ^® , etc. Use of the term "payment network" herein may refer to both the payment network as an entity, and the physical payment network, such as the equipment, hardware, and software comprising the payment network.

Transaction Account - A financial account that may be used to fund a transaction, such as a checking account, savings account, credit account, virtual payment account, etc. A transaction account may be associated with a consumer, which may be any suitable type of entity associated with a payment account, which may include a person, family, company, corporation, governmental entity, etc. In some instances, a transaction account may be virtual, such as those accounts operated by PayPal ^® , etc.

Merchant - An entity that provides products (e.g., goods and/or services) for purchase by another entity, such as a consumer or another merchant. A merchant may be a consumer, a retailer, a wholesaler, a manufacturer, or any other type of entity that may provide products for purchase as will be apparent to persons having skill in the relevant art. In some instances, a merchant may have special knowledge in the goods and/or services provided for purchase. In other instances, a merchant may not have or require any special knowledge in offered products. In some embodiments, an entity involved in a single transaction may be considered a merchant. In some instances, as used herein, the term "merchant" may refer to an apparatus or device of a merchant entity.

Payment Rails - Infrastructure associated with a payment network used in the processing of payment transactions and the communication of transaction messages and other similar data between the payment network and other entities interconnected with the payment network that handles thousands, millions, and even billions of transactions during a given period. The payment rails may be comprised of the hardware used to establish the payment network and the interconnections between the payment network and other associated entities, such as financial institutions, gateway processors, etc. In some instances, payment rails may also be affected by software, such as via special programming of the communication hardware and devices that comprise the payment rails. For example, the payment rails may include specifically configured computing devices that are specially configured for the routing of transaction messages, which may be specially formatted data messages that are electronically transmitted via the payment rails, as discussed in more detail below. System for Facilitating Electronic Payments in Physical Distribution

FIG. 1 illustrates a system 100 for the facilitation of electronic payments directly between supplier and merchant for products delivered via physical delivery by a third party distributor using machine-readable codes and electronic invoicing.

The system 100 may include a processing server 102. The processing server 102, discussed in more detail below, may be operated by, on behalf of, or otherwise associated with a distributor that operates by distributing or facilitating the distribution of products from a supplying entity 104 to a merchant, illustrated in FIG. 1 as the merchant system 106. The processing server 102 may be specifically configured to perform the functions discussed herein, which may enable the processing server 102 to facilitate electronic payments to be made directly from the merchant system 106 to the supplying entity 104 using existing network

infrastructure.

In the system 100, a supplying entity 104 may supply a distributor with one or more products to be delivered to a merchant. As part of the supplying of the products, the supplying entity 104 may provide the distributor with an invoice related to the sale of the products to the merchant system 106. The invoice may include at least an invoice identifier, an invoice amount, and an entity identifier. The invoice identifier may be a unique value associated with that invoice that is used by the supplying entity 104 in identifying and keeping track of the invoice and

communications and payments associated therewith, such as an identification number. The invoice amount may be the cost of the products being delivered that is to be paid by the merchant system 105 upon delivery. The entity identifier may be a unique value associated with the supplying entity 104 used for identification thereof. The entity identifier may be any suitable type of value including an identification number, a transaction account number associated with a transaction account to which the invoice amount is to be paid, a routing number, etc.

The processing server 102 may receive the invoice data from the supplying entity 104 along with the product(s) that are to be delivered. In some embodiments, the invoice may be a physical invoice that is delivered to the distributor using traditional methods, where the invoice data may be entered into the processing server 102 using a suitable input device. In other embodiments, the invoice data may be submitted to the processing server 102 by the supplying entity 104 using an electronic method, such as via an application program, the submission of the data into an application programming interface, or other type of electronic transmission using a suitable communication network and method.

Following receipt of the invoice data in the processing server 102, the processing server 102 may generate a machine-readable code that is encoded with at least the invoice identifier, invoice amount, and entity identifier. The machine- readable code may be any type of visual image that may be read by an optical imaging device and subsequently decoded to obtain the data that is encoded therein. For instance, the machine-readable code generated by the processing server 102 may be a bar code or a quick response (QR) code. The processing server 102 may include the machine-readable code in an electronic invoice for the invoice data. In cases where an electronic invoice has been provided by the supplying entity 104, the processing server 102 may append the machine-readable code to the electronic invoice. In cases where invoice data was provided to the processing server 102 in a different format and entered therein, the processing server 102 may generate an electronic invoice that incorporates the invoice data and includes the machine-readable code.

Once the electronic invoice and machine-readable code are prepared, the distributor may distribute the product(s) to the merchant associated with the merchant system 106. As part of the delivery, the processing server 102 may produce the invoice for the merchant. In one embodiment, the electronic invoice may be printed or otherwise output in a physical format for presentation to the merchant system 106. In other embodiments, an employee of the distributor may utilize a computing device 108 to display the electronic invoice on a display device interfaced therewith. The computing device 108 may be any type of computing device suitable for the display of invoice data and machine-readable codes, including a laptop computer, notebook computer, tablet computer, cellular phone, smart phone, etc. The merchant system 106 may include an optical imaging device interfaced directly with the merchant system 106 or a computing device interfaced therewith, which may be used to read the machine-readable code. The merchant system 106 may decode the machine -readable code to obtain the invoice identifier, invoice amount, and entity identifier.

Once the data has been decoded from the invoice, the merchant system

106 may initiate an electronic payment transaction based thereon. An interface may be provided by a payment network 110 for providing payment credentials for a payment transaction associated with the invoice, such as a web page, application programming interface, application program, etc. In some embodiments, the merchant-readable code may be encoded with data that is configured to cause the merchant system 106 to automatically initiate the payment transaction using the interface. In other embodiments, a user of the merchant system 106 may manually initiate the electronic payment transaction. The electronic payment transaction may be for the invoice amount decoded from the machine-readable code and to a transaction account associated with the supplying entity 104, which may be identified by the entity identifier also decoded form the machine-readable code (e.g., where the entity identifier may be the account number or may be used by the payment network 1 10 in identifying the account number). The payment transaction, when submitted to the payment network 1 10, may also include the invoice number, and payment credentials selected by the merchant system 106 for payment. The payment credentials may be associated with a transaction account issued to the merchant system 106 that may be used to fund electronic payment transactions.

The payment network 110 may receive the transaction data for the electronic payment transaction and may process the payment transaction using traditional systems and methods. As part of the processing of the payment transaction, the payment network 110 may contact the financial institutions associated with the transaction accounts held by the merchant system 106 and supplying entity 104 for payment of the invoice amount from the merchant's transaction account to the supplying entity's transaction account.

Once the distributor has provided the product(s) to the merchant system 106 and facilitated the payment via presentation of the machine-readable code that is read by the merchant system 106, the processing server 102 may proceed with reconciliation of the distribution. The reconciliation process may include the providing of data to the supplying entity 104 related to the distribution of the product(s), such as a confirmation of the delivery with the invoice number, reporting of time and/or date, and other data that may be requested by the supplying entity 104. In an exemplary embodiment, the processing server 102 may be configured to collect comments regarding a distribution from the merchant system 106 for presentation to the supplying entity 104 as part of the reconciliation process.

In such embodiments, when the distributor is delivering the product(s) to the merchant system 106, comments may be provided by the merchant. In some instances, a representative of the merchant system 106 may provide (e.g., written, orally, etc.) comments to a representative of the distributor, which may enter the comments into their computing device 108 via a suitable input device interfaced therewith. In other instances, the merchant system 106 may be configured to electronically transmit comments to the computing device 108 via a suitable communication network and method, such as via near field communication,

Bluetooth, radio frequency, local area network etc. The comments may include any data that is to be provided back to the supplying entity 104. For example, the comments may include an issue with the shipment that the merchant wants to inform the supplying entity 104 of or a request for the next shipment. The comments may be provided back to the processing server 102 via a suitable input device interfaced therewith or via the computing device 108. The processing server 102 may then include those comments in the reconciliation process for the delivery, which may be provided to the supplying entity 104 and handled accordingly.

In some cases, the comments may require modification to the electronic invoice. For instance, in an example, the merchant may order a plurality of products, where one of the products is damaged during transportation or delivery. The merchant may, as part of the comments, indicate that one of the products is damaged and will not be paid for, resulting in a dispute regarding the invoice amount. In such embodiments, the electronic invoice may be modified in the processing server 102, either by the processing server 102 directly or through the computing device 108. For instance, the delivery personnel may input instructions into the computing device 108 to modify the electronic invoice, which may forward such modifications to the processing server 102 using a suitable communication network and method. In the above example, the delivery personnel may reduce the invoice amount on the computing device 108 to account for the damaged product, which may be forwarded to the processing server 102. The processing server 102 may include any

modifications to the invoice along with the comments when reconciling with the supplying entity 104. The supplying entity 104 will thus be informed of why the payment received from the merchant system 106 had been reduced.

The methods and systems discussed herein provide for easily implemented electronic payments made directly from a merchant system 106 to a supplying entity 104 for products distributed through a third party distributor. This reduces the need for a distributor to receive and carry cash, which reduces their risk and liability and can thus increase revenue for the distributor. The receipt of direct payments at the supplying entity 104 can reduce the wait time for receiving payments and also simplify the reconciliation process between the distributor and supplying entity 104. The addition of electronic invoicing and generation of machine-readable codes at the distributor can provide for additional functionality, particularly the easy conveyance of comments and modifications to invoices during reconciliation, and can do so with little to no modification to legacy supplier systems. Thus, the specialized configuration of the distributor, via the processing server 102 discussed herein, can provide significant benefits to suppliers and merchants, in addition to the distributor, with little effort needing to be expended by the additional entities.

Processing Server FIG. 2 illustrates an embodiment of a processing server 102 in the system 100. It will be apparent to persons having skill in the relevant art that the embodiment of the processing server 102 illustrated in FIG. 2 is provided as illustration only and may not be exhaustive to all possible configurations of the processing server 102 suitable for performing the functions as discussed herein. For example, the computer system 500 illustrated in FIG. 5 and discussed in more detail below may be a suitable configuration of the processing server 102.

The processing server 102 may include a receiving device 202. The receiving device 202 may be configured to receive data over one or more networks via one or more network protocols. In some instances, the receiving device 202 may be configured to receive data from supplying entities 104, merchant systems 106, computing devices 108, and other systems and entities via one or more

communication methods, such as radio frequency, local area networks, wireless area networks, cellular communication networks, Bluetooth, the Internet, etc. In some embodiments, the receiving device 202 may be comprised of multiple devices, such as different receiving devices for receiving data over different networks, such as a first receiving device for receiving data over a local area network and a second receiving device for receiving data via the Internet. The receiving device 202 may receive electronically transmitted data signals, where data may be superimposed or otherwise encoded on the data signal and decoded, parsed, read, or otherwise obtained via receipt of the data signal by the receiving device 202. In some instances, the receiving device 202 may include a parsing module for parsing the received data signal to obtain the data superimposed thereon. For example, the receiving device 202 may include a parser program configured to receive and transform the received data signal into usable input for the functions performed by the processing device to carry out the methods and systems described herein.

The receiving device 202 may be configured to receive data signals electronically transmitted by supplying entities 104 that are superimposed or otherwise encoded with invoice data, which may include at least an invoice identifier, invoice amount, and entity identifier. In some instances, the invoice data may also include data associated with a physical shipment of one or more products to be delivered as corresponding to the invoice. The receiving device 202 may also be configured to receive data signals electronically transmitted by merchant systems 106 that may be superimposed or otherwise encoded with comments associated with an electronic invoice, which may be accompanied by the invoice identifier associated therewith. The receiving device 202 may also be configured to receive data signals electronically transmitted by computing devices 108, which may be superimposed or otherwise encoded with comments and/or modifications to electronic invoices. In some embodiments, the receiving device 202 may be configured to receive data input into one or more input devices interfaced with the processing server 102, which may be used as an alternative or in addition to the computing device 108, such as for the input of modifications to electronic invoices or the entry of invoice data received from the supplying entity 104. Such devices may include, for instance, a keyboard, touch screen, mouse, microphone, optical imager, etc.

The processing server 102 may also include a communication module 204. The communication module 204 may be configured to transmit data between modules, engines, databases, memories, and other components of the processing server 102 for use in performing the functions discussed herein. The communication module 204 may be comprised of one or more communication types and utilize various communication methods for communications within a computing device. For example, the communication module 204 may be comprised of a bus, contact pin connectors, wires, etc. In some embodiments, the communication module 204 may also be configured to communicate between internal components of the processing server 102 and external components of the processing server 102, such as externally connected databases, display devices, input devices, etc. The processing server 102 may also include a processing device. The processing device may be configured to perform the functions of the processing server 102 discussed herein as will be apparent to persons having skill in the relevant art. In some embodiments, the processing device may include and/or be comprised of a plurality of engines and/or modules specially configured to perform one or more functions of the processing device, such as a querying module 218, generation module 220, reconciliation module 222, etc. As used herein, the term "module" may be software or hardware particularly programmed to receive an input, perform one or more processes using the input, and provides an output. The input, output, and processes performed by various modules will be apparent to one skilled in the art based upon the present disclosure.

In some embodiments, the processing server 102 may include an invoice database 206. The invoice database 206 may be configured to store a plurality of invoice data entries 208 using a suitable data storage format and schema. The invoice database 206 may be a relational database that utilizes structured query language for the storage, identification, modifying, updating, accessing, etc. of structured data sets stored therein. Each invoice data entry 208 may be a structured data set configured to store data related to an electronic invoice received from the supplying entity 104 or otherwise entered into the processing server 102 based on data received therefrom. An invoice data entry 208 may include, for instance, an invoice identifier, invoice amount, and entity identifier. Invoice data entries 208 may further include comments or modifications that may be received throughout the distribution process as discussed herein.

The processing server 102 may include a querying module 218. The querying module 218 may be configured to execute queries on databases to identify information. The querying module 218 may receive one or more data values or query strings, and may execute a query string based thereon on an indicated database, such as the invoice database 206, to identify information stored therein. The querying module 218 may then output the identified information to an appropriate engine or module of the processing server 102 as necessary. The querying module 218 may, for example, execute a query on the invoice database to create a new invoice data entry 208 for invoice data received from the supplying entity 104, execute a query to identify an invoice data entry 208 requested by a computing device 108 for a delivery, execute a query to insert comments into an invoice data entry 208 during a delivery, etc.

The processing server 102 may also include a generation module 220. The generation module 220 may be configured to generate data for use by the processing server 102 in performing the functions discussed herein. The generation module 220 may receive an instruction, may generate data based on that instruction, and may output the generated data to another module or engine of the processing server 102. In embodiments where a supplying entity 104 may supply invoice data in a format other than an electronic invoice (e.g., in a physical format or in an electronic format other than formatted as an electronic invoice), the generation module 220 may be configured to generate an electronic invoice for the invoice data. In such instances, the processing server 102 may store, such as in a memory 226 therein discussed in more detail below, formatting rules regarding the formatting of electronic invoices generated by the generation module 220. The generation module 220 may also be configured to generate machine-readable codes, which may be encoded with invoice data including at least an invoice identifier, invoice amount, and entity identifier. The machine-readable code may be any suitable type that may be read by an optical imager of a merchant system 106 and decoded thereby, such as a bar code or QR code.

The processing server 102 may also include a reconciliation module

222. The reconciliation module may be configured to perform the functions of the processing server 102 as related to reconciliation as discussed herein. The

reconciliation module 222 may receive data associated with a delivery for which reconciliation is to be made as input, such as an invoice identifier or an invoice data entry 208, may perform any functions related to the reconciliation thereof, and may output a result of the reconciliation to another module or engine of the processing server 102. For example, the reconciliation module 222 may receive an invoice data entry 208 and may contact the associated supplying entity 104 to provide information associated with the delivery of the respective product(s) (e.g., delivery time and/or date, confirmation of successful delivery, etc.) as well as any comments received from the merchant system 106 regarding the delivery and the identification of any modifications to the electronic invoice associated therewith.

The processing server 102 may also include a transmitting device 224. The transmitting device 224 may be configured to transmit data over one or more networks via one or more network protocols. In some instances, the transmitting device 224 may be configured to transmit data to supplying entities 104, merchant systems 106, computing devices 108, and other entities via one or more

communication methods, local area networks, wireless area networks, cellular communication, Bluetooth, radio frequency, the Internet, etc. In some embodiments, the transmitting device 224 may be comprised of multiple devices, such as different transmitting devices for transmitting data over different networks, such as a first transmitting device for transmitting data over a local area network and a second transmitting device for transmitting data via the Internet. The transmitting device 224 may electronically transmit data signals that have data superimposed that may be parsed by a receiving computing device. In some instances, the transmitting device 224 may include one or more modules for superimposing, encoding, or otherwise formatting data into data signals suitable for transmission.

The transmitting device 224 may be configured to electronically transmit data signals to supplying entities 104, which may be superimposed or otherwise encoded with reconciliation data, which may include comments received from the merchant system 106 or computing device 108 associated with the respective invoice and any modified electronic invoice data. The transmitting device 224 may also be configured to electronically transmit data signals to merchant systems 106 that are superimposed or otherwise encoded with invoice data, which, in some instances, may be transmitted via a machine-readable code encoded with invoice data. In one such embodiment, the transmitting device 224 may electronically transmit the machine-readable code to a display device interface with the processing server 102 either directly or via the computing device 108, which may display the machine- readable code for reading by the merchant system 106. Such display device may be any suitable type of display, such as a liquid crystal display, light emitting diode display, capacitive touch display, thin film transistor display, etc. The transmitting device 224 may also be configured to electronically transmit data signals that are superimposed or otherwise encoded with electronic invoices to merchant systems 106 and/or computing devices 108, as applicable.

The processing server 102 may also include a memory 226. The memory 226 may be configured to store data for use by the processing server 102 in performing the functions discussed herein, such as public and private keys, symmetric keys, etc. The memory 226 may be configured to store data using suitable data formatting methods and schema and may be any suitable type of memory, such as read-only memory, random access memory, etc. The memory 226 may include, for example, encryption keys and algorithms, communication protocols and standards, data formatting standards and protocols, program code for modules and application programs of the processing device, and other data that may be suitable for use by the processing server 102 in the performance of the functions disclosed herein as will be apparent to persons having skill in the relevant art. In some embodiments, the memory 226 may be comprised of or may otherwise include a relational database that utilizes structured query language for the storage, identification, modifying, updating, accessing, etc. of structured data sets stored therein. The memory 226 may be configured to store, for example, formatting rules for electronic invoices, contact information for supplying entities 104, entity identifier look up tables, reconciliation rules, etc.

Process for Direct Electronic Payments in Brick and Mortar Distribution FIG. 3 illustrates an example process 300 executed in the system 100 of FIG. 1 for the facilitation of electronic payments direct from the merchant system 106 to the supplying entity 104 by a third party, brick and mortar distributor.

In step 302, the supplying entity 302 may supply invoice data to the processing server 102 for a delivery to be made using any suitable delivery mechanism to be received by the receiving device 202 of the processing server 102. The invoice data may include at least an invoice identifier, invoice amount, and an entity identifier. The invoice data may also include data regarding one or more products to be delivered in associated therewith and information regarding the merchant system 106 to which the product(s) are to be delivered or may be accompanied by such data, such as in a shipping list. In step 304, the generation module 220 of the processing server 102 may generate a QR code that is encoded with at least the invoice identifier, invoice amount, and entity identifier and may generate an electronic invoice that includes the invoice data and QR code.

In step 306, the electronic invoice with the QR code may be displayed to the merchant system 106 in conjunction with delivery of the associated product(s) to the merchant using any suitable method, such as via a display device directly interfaced with the processing server 102, on a computing device 108 in

communication with the processing server 102 (e.g., possessed by delivery personnel working for the distributor), or via electronic transmission to the merchant system 106 and display on a display device interfaced therewith. As part of the presentation of the invoice and delivery of product, in step 308, the merchant system 106 may provide comments to the processing server 102 regarding the delivery. Such comments may be made to delivery personnel that may enter the comments into the processing server 102 using an input device (e.g., directly interfaced therewith or interfaced with a computing device 108 configured to electronically transmit the comments to the processing server 102). In step 310, the querying module 218 of the processing server 102 may execute a query on the invoice database 206 to update the invoice data entry 208 for the invoice that includes the invoice identifier to insert the comments received from the merchant system 106 and make any modifications to the electronic invoice that is necessary based on the comments.

Once the merchant system 106 has supplied its comments, it may, in step 312, read the QR code using an optical imager interfaced therewith and decode the invoice data encoded therein. Once the invoice data is obtained, the merchant system 106 may initiate an electronic payment transaction for payment of the invoice amount directly to the supplying entity 104. In some embodiments, the merchant system 106 QR code may be encoded with data that may cause the merchant system 106 to automatically initiate the electronic payment transaction. In other

embodiments, a user of the merchant system 106 may manually initiate the electronic payment transaction, which may then be populated via the decoded invoice data. In step 314, the merchant system 106 may forward the invoice data and payment credentials associated with a transaction account that is to fund the electronic payment transaction to a payment network 110 via payment rails associated therewith.

In step 316, the payment network 110 may process the payment transaction using any suitable method. As part of the processing of the payment transaction, in step 318, payment may be forward to the supplying entity 104, such as during a settlement procedure for the electronic payment transaction between an issuing financial institution associated with the merchant system 106 and an acquiring financial institution associated with the supplying entity 104 that may credit the transaction account associated with the supplying entity 104 (e.g., identified via the entity identifier) by the invoice amount. Following delivery, and payment, if applicable, in step 320, the processing server 102 may electronically transmit reconciliation data to the supplying entity 104 using a suitable communication network and method. The reconciliation data may include any data requested by the supplying entity 104 regarding the delivery, as well as the comments provided by the merchant system 106 and any subsequent modifications to the electronic invoice. Exemplary Method for Facilitating Electronic Payments in Product Distribution

FIG. 4 illustrates a method 400 for the facilitation of electronic payments by a brick and mortar, third party distributor between a merchant and supplier.

In step 402, invoice data may be received from a computing system associated with a first entity (e.g., the supplying entity 104) by a receiving device (e.g., the receiving device 202) of a processing server (e.g., the processing server 102), wherein the invoice data includes at least an invoice identifier, an invoice amount, an entity identifier associated with the first entity, and one or more products. In step 404, a machine-readable code may be generated by a generation module (e.g., the generation module 220) of the processing server, wherein the machine-readable code is encoded with at least the invoice identifier, invoice amount, and entity identifier. In step 406, an electronic invoice may be generated by the generation module of the processing server, wherein the electronic invoice includes display of at least the invoice data and the generated machine-readable code.

In step 408, the generated electronic invoice may be output by the processing server for presentation during delivery of the one or more products to a second entity (e.g., the merchant system 106). In step 410, comment data associated with the electronic invoice may be received by an input device interfaced with the processing server. In step 412, reconciliation data for the electronic invoice may be electronically transmitted by a transmitting device (e.g., the transmitting device 224) of the processing server, wherein the reconciliation data includes at least the invoice identifier and the comment data.

In one embodiment, the machine-readable code may be one of: a bar code and a quick response code. In some embodiments, outputting the generated electronic invoice may include displaying, on a display device interfaced with the processing server, the generated electronic invoice including the machine -readable code. In one embodiment, the entity identifier may be a number associated with a transaction account registered in a payment gateway.

In some embodiments, the machine-readable code may be further encoded with a second entity identifier associated with a third entity (e.g., the distributor). In a further embodiment, the third entity may operate the processing server. In one embodiment, the comment data may include a reduced invoice amount and a reason code. In some embodiments, the reconciliation data may be

electronically transmitted to the computing system associated with the first entity. Computer System Architecture

FIG. 5 illustrates a computer system 500 in which embodiments of the present disclosure, or portions thereof, may be implemented as computer-readable code. For example, the processing server 102 of FIG. 1 may be implemented in the computer system 500 using hardware, software, firmware, non-transitory computer readable media having instructions stored thereon, or a combination thereof and may be implemented in one or more computer systems or other processing systems.

Hardware, software, or any combination thereof may embody modules and components used to implement the methods of FIGS. 3 and 4.

If programmable logic is used, such logic may execute on a commercially available processing platform configured by executable software code to become a specific purpose computer or a special purpose device (e.g.,

programmable logic array, application-specific integrated circuit, etc.). A person having ordinary skill in the art may appreciate that embodiments of the disclosed subject matter can be practiced with various computer system configurations, including multi-core multiprocessor systems, minicomputers, mainframe computers, computers linked or clustered with distributed functions, as well as pervasive or miniature computers that may be embedded into virtually any device. For instance, at least one processor device and a memory may be used to implement the above described embodiments.

A processor unit or device as discussed herein may be a single processor, a plurality of processors, or combinations thereof. Processor devices may have one or more processor "cores." The terms "computer program medium," "non- transitory computer readable medium," and "computer usable medium" as discussed herein are used to generally refer to tangible media such as a removable storage unit 518, a removable storage unit 522, and a hard disk installed in hard disk drive 512.

Various embodiments of the present disclosure are described in terms of this example computer system 500. After reading this description, it will become apparent to a person skilled in the relevant art how to implement the present disclosure using other computer systems and/or computer architectures. Although operations may be described as a sequential process, some of the operations may in fact be performed in parallel, concurrently, and/or in a distributed environment, and with program code stored locally or remotely for access by single or multi-processor machines. In addition, in some embodiments the order of operations may be rearranged without departing from the spirit of the disclosed subject matter.

Processor device 504 may be a special purpose or a general purpose processor device specifically configured to perform the functions discussed herein. The processor device 504 may be connected to a communications infrastructure 506, such as a bus, message queue, network, multi-core message-passing scheme, etc. The network may be any network suitable for performing the functions as disclosed herein and may include a local area network (LAN), a wide area network (WAN), a wireless network (e.g., WiFi), a mobile communication network, a satellite network, the Internet, fiber optic, coaxial cable, infrared, radio frequency (RF), or any combination thereof. Other suitable network types and configurations will be apparent to persons having skill in the relevant art. The computer system 500 may also include a main memory 508 (e.g., random access memory, read-only memory, etc.), and may also include a secondary memory 510. The secondary memory 510 may include the hard disk drive 512 and a removable storage drive 514, such as a floppy disk drive, a magnetic tape drive, an optical disk drive, a flash memory, etc.

The removable storage drive 514 may read from and/or write to the removable storage unit 518 in a well-known manner. The removable storage unit 518 may include a removable storage media that may be read by and written to by the removable storage drive 514. For example, if the removable storage drive 514 is a floppy disk drive or universal serial bus port, the removable storage unit 518 may be a floppy disk or portable flash drive, respectively. In one embodiment, the removable storage unit 518 may be non-transitory computer readable recording media.

In some embodiments, the secondary memory 510 may include alternative means for allowing computer programs or other instructions to be loaded into the computer system 500, for example, the removable storage unit 522 and an interface 520. Examples of such means may include a program cartridge and cartridge interface (e.g., as found in video game systems), a removable memory chip (e.g., EEPROM, PROM, etc.) and associated socket, and other removable storage units 522 and interfaces 520 as will be apparent to persons having skill in the relevant art.

Data stored in the computer system 500 (e.g., in the main memory 508 and/or the secondary memory 510) may be stored on any type of suitable computer readable media, such as optical storage (e.g., a compact disc, digital versatile disc, Blu-ray disc, etc.) or magnetic tape storage (e.g., a hard disk drive). The data may be configured in any type of suitable database configuration, such as a relational database, a structured query language (SQL) database, a distributed database, an object database, etc. Suitable configurations and storage types will be apparent to persons having skill in the relevant art. The computer system 500 may also include a communications interface 524. The communications interface 524 may be configured to allow software and data to be transferred between the computer system 500 and external devices. Exemplary communications interfaces 524 may include a modem, a network interface (e.g., an Ethernet card), a communications port, a PCMCIA slot and card, etc.

Software and data transferred via the communications interface 524 may be in the form of signals, which may be electronic, electromagnetic, optical, or other signals as will be apparent to persons having skill in the relevant art. The signals may travel via a communications path 526, which may be configured to carry the signals and may be implemented using wire, cable, fiber optics, a phone line, a cellular phone link, a radio frequency link, etc.

The computer system 500 may further include a display interface 502. The display interface 502 may be configured to allow data to be transferred between the computer system 500 and external display 530. Exemplary display interfaces 502 may include high-definition multimedia interface (HDMI), digital visual interface

(DVI), video graphics array (VGA), etc. The display 530 may be any suitable type of display for displaying data transmitted via the display interface 502 of the computer system 500, including a cathode ray tube (CRT) display, liquid crystal display (LCD), light-emitting diode (LED) display, capacitive touch display, thin-film transistor (TFT) display, etc.

Computer program medium and computer usable medium may refer to memories, such as the main memory 508 and secondary memory 510, which may be memory semiconductors (e.g., DRAMs, etc.). These computer program products may be means for providing software to the computer system 500. Computer programs (e.g., computer control logic) may be stored in the main memory 508 and/or the secondary memory 510. Computer programs may also be received via the

communications interface 524. Such computer programs, when executed, may enable computer system 500 to implement the present methods as discussed herein. In particular, the computer programs, when executed, may enable processor device 504 to implement the methods illustrated by FIGS. 3 and 4, as discussed herein.

Accordingly, such computer programs may represent controllers of the computer system 500. Where the present disclosure is implemented using software, the software may be stored in a computer program product and loaded into the computer system 500 using the removable storage drive 514, interface 520, and hard disk drive 512, or communications interface 524.

The processor device 504 may comprise one or more modules or engines configured to perform the functions of the computer system 500. Each of the modules or engines may be implemented using hardware and, in some instances, may also utilize software, such as corresponding to program code and/or programs stored in the main memory 508 or secondary memory 510. In such instances, program code may be compiled by the processor device 504 (e.g., by a compiling module or engine) prior to execution by the hardware of the computer system 500. For example, the program code may be source code written in a programming language that is translated into a lower level language, such as assembly language or machine code, for execution by the processor device 504 and/or any additional hardware components of the computer system 500. The process of compiling may include the use of lexical analysis, preprocessing, parsing, semantic analysis, syntax-directed translation, code generation, code optimization, and any other techniques that may be suitable for translation of program code into a lower level language suitable for controlling the computer system 500 to perform the functions disclosed herein. It will be apparent to persons having skill in the relevant art that such processes result in the computer system 500 being a specially configured computer system 500 uniquely programmed to perform the functions discussed above.

Techniques consistent with the present disclosure provide, among other features, systems and methods for facilitating electronic payments direct to suppliers in product distribution. While various exemplary embodiments of the disclosed system and method have been described above it should be understood that they have been presented for purposes of example only, not limitations. It is not exhaustive and does not limit the disclosure to the precise form disclosed.

Modifications and variations are possible in light of the above teachings or may be acquired from practicing of the disclosure, without departing from the breadth or scope.