WO2002101487A2 - Collection and remittance system - Google Patents

Abstract

Preferred examples of a system and method for rapid collection and distribution of taxes are disclosed. The disclosed embodiments of the present invention provide a system and a method for point-of-sale collection and distribution of sales taxes on a frequent, regular basis, such as daily or weekly, or other periodic time intervals, that can be used for face-to-face, e-commerce, telephone or other transactions. The disclosed embodiments provide a system and a method for transferring funds from numerous merchants (14) to numerous taxing authorities (29) in an efficient manner, with each merchant (14) seeking to transfer funds to perhaps several taxing authorities (29) and each taxing authority (29) seeking to receive funds from many merchants (14). According to other examples of the invention, a centralized distribution feature (27) allows the merchants (14) and the taxing authorities (29) to each communicate with a single entity or other in transferring the funds. Therefore, efficient tax collection and distribution may be achieved without overburdening either individual merchants or individual taxing authorities.

Description

COLLECTION AND REMITTANCE SYSTEM

RELATED APPLICATION

[0001] This application is related to, and claims priority under 35 U.S. C. § 119(e) of, U.S. provisional applications Serial No. 60/297,194, titled "TAX COLLECTION AND

DISTRIBUTION SYSTEM", filed June 7, 2001, and No. 60/306,029, titled "TAX

COLLECTION SYSTEM", filed July 16, 2001, both of which are hereby

incorporated by reference in their entirety. Additionally, the following related U.S. Patent Applications are hereby incorporated by reference in their entirety:

1. U.S. Patent Application, Attorney Docket No. 044848-2003, Serial No. 10/136,902, titled "RAPID TAX COLLECTION SYSTEM AND METHOD," filed April 30, 2002.

2. U.S. Patent Application, Attorney Docket No. 044848-2004, Serial No. 10/137,513, titled "SYSTEM AND METHOD OF RAPID COLLECTION OF INCOME TAXES," filed April 30, 2002.

3. U.S. Patent Application, Attorney Docket No. 044848-2005, Serial No. 10/137,045, titled "RAPID TAX COLLECTION SYSTEM AND METHOD FOR CASH AND CASH-SUBSTITUTE TRANSACTIONS," filed April 30, 2002.

4. U.S. Patent Application, Attorney Docket No. 044848-2006, Serial No. 10/137,493, titled "RAPID TAX COLLECTION SYSTEM AND METHOD FOR DEBIT-TYPE TRANSACTIONS," filed April 30, 2002.

BACKGROUND OF THE INVENTION

Field of the Invention

[0002] The invention relates to data processing systems and the methods of their use. In

particular, the invention relates to a system and method for rapid tax collection and distribution. Related Art

[0003] The information contained in this section relates to the background of the art of the

present invention without any admission as to whether or not it legally constitutes

prior art.

[0004] Various systems and methods have been employed for the payment and reporting of

taxes to governmental agencies. For example, reference may be made to U.S.

Statutory Invention Registration HI, 830 and the following U.S. patents: 5,335,169

to Chong; 5,420,405 to Chasek; 5,799,283 to Francisco et al. ; 5,875,433 to

Francisco et al.; 6,078,898 to Davis et al.; and 6,078,899 to Francisco et al.

[0005] In particular, the '283 patent, the '433 patent and the '899 patent are directed to

systems for automatically collecting and reporting taxes. The systems disclosed in

these patents create reports on sales tax and provide means of reporting the tax to

the state and federal government. These systems do not, however, address the distribution of taxes.

[0006] In addition to the payment and reporting of taxes, the collection of sales and use

taxes is an important business requirement of retailers and merchants throughout the

United States. In this regard, taxing authorities at the local, state and federal levels

require both large and small businesses to collect a sales tax for each taxable item of goods they sell in the course of commerce.

[0007] To meet taxing authority requirements, currently a typical merchant and/or other

entity must calculate the sales tax for each customer transaction, add the calculated sum to the invoice or bill subtotal presented to the customer for the goods sold, collect the sales tax from the customer with the purchase sum, deposit for safe keeping the collected taxes and finally remit and account for the collected taxes to

the appropriate taxing authorities on a periodic basis, which is typically on a quarterly basis and/or other.

[0008] To compensate the merchant or retailer for the burden of acting as the agent for the taxing authority, the merchant is allowed to keep the periodic interest accrued on the

collected tax dollars during each collection period.

[0009] While the above described method of collecting and remitting sales and use taxes

has been effectively employed for many years, such a method is not cost effective and cumulatively costs the taxing authorities millions of dollars. In this regard, the

taxing authority not only loses the accrued periodic interest known as "the float,"

but the authority also loses the use of the collected money until it is remitted by the

merchants for the collection period. Moreover, since the taxing authority does not

have the use of the collected money until it is remitted, the money is not available for use to pay the monetary obligations of the taxing authority. Thus, the taxing

authority may be compelled to borrow money to meet its financial obligations.

Furthermore, such a system places a heavy burden on merchants and taxing

authorities alike since it requires manual implementation.

[ooιo] In U.S. Patent 5,644,724, issued July 1, 1997, there is disclosed a point-of-sale tax

collection system and method of using same. The abstract of the '724 patent states

that a "new and improved tax collection system and method collects and remits taxes

in real time at point-of-sale locations. The system includes a group of point-of-sale terminals at merchant point-of-sale facilities that receive and store tax collection

information under merchant control. A bank computer at a merchant bank accesses

the stored tax collection information and wire transfers the collected sums periodically to at least one computer at a taxing authority such as a tax authority

bank or other financial organization. For credit or debit transactions, a service computer receives the tax collection information daily or at other periods of time

from certain ones of the point-of-sale terminals, and wire transfers the credited or

debited taxes to the tax authority bank computer."

[0011] Such a patented system is highly desirable, effective and efficient for tax collection

and distribution. It would be desirable to extend such a system to, for example, a

nationwide or, perhaps, a worldwide network of merchants. However, due to the

fact there are numerous taxing authorities, such as federal, state and local

governments, and/or other entities in the United States and internationally, each

merchant would be required to communicate with the numerous taxing authorities each day or other regular period of time. This complexity can be disruptive and

unwanted for some situations such as for small businesses.

[0012] Additionally, each taxing authority would be required to communicate with

thousands of merchants across the nation on a regular basis in order to receive the

tax revenues. Each taxing authority would be required to invest in sufficient

resources in order to handle the demand of the collection system. This demand may be too burdensome for many taxing authorities. [0013] Additional problems related to the collection of sales tax on a large-scale basis are created with the explosion of e-commerce transactions. One problem created by e-

commerce is related to the determination of the proper taxing authority. For

example, transactions on the Internet may involve a consumer in one state, a merchant's place of business in another state, warehousing in a third state, billing or processing in a fourth state, and a fulfillment center in a fifth state. Each of the five

states involved may have different taxing rules. For example, a state may require

tax on a transaction if the consumer is in that state, or the state may require tax if the merchant is in that state. Thus, a merchant may be required to distribute taxes

to a large number of taxing authorities.

[0014] With the emergence of the Internet and the explosion in e-commerce transactions,

the taxing authorities are bound to experience a sharp increase in the number of

transactions in such a system. Such an increase would require each taxing authority to expand its ability to handle all of the anticipated transfers.

[0015] Additionally, beyond the collection of taxes on the transaction, collection of other

revenues must also be addressed. For example, income tax is generally paid to the

taxing authority by large merchants in the form of periodic estimated tax payments.

The tax may be estimated based on the actual tax paid in the previous year. Thus, the estimated income tax for the year is paid in, for example, periodic equal tax

payments.

[0016] This arrangement has drawbacks similar to those discussed above. Another

drawback is a possible unfairness in the timing of the tax payments. For example, the estimated tax payment system may be unfair to a merchant, such as toy retailer,

who earns most of his income at the end of the year. This merchant pays equal

amounts of tax payments at the beginning of the year even though he has not yet

earned the income being taxed. Similarly, in other instances, the system may be

unfair to the taxing authority. For example, other merchants may earn most of their income at the beginning of the year but may not pay appropriate taxes until the end

of the year. Thus, the taxing authority loses the opportunity to use its tax revenue for a certain period.

BRIEF DESCRIPTION OF THE DRAWINGS

[0017] In the following, the invention will be explained in further detail with reference to

the drawings, in which:

[0018] Fig. 1A is a pictorial illustration of a first part of a credit-card transaction between a single consumer and a merchant according to an embodiment of the invention;

[0019] Fig. IB is a pictorial illustration of a first part of a credit-card transaction between a

single consumer and a merchant according to another embodiment of the invention;

[0020] Fig. 2A is a pictorial illustration of a second part of the credit-card transaction of

Figure 1A;

[0021] Fig. 2B is a pictorial illustration of a second part of the credit-card transaction of

Figure IB;

[0022] Fig. 3 A is a pictorial illustration of a third part of the credit-card transaction of

Figure 1A; [0023] Fig. 3B is a pictorial illustration of a third part of the credit-card transaction of

Figure IB;

[0024] Fig. 3C is a pictorial illustration of the third part of the transaction illustrated in

Fig. 3 A for a plurality of merchants;

[0025] Fig. 3D is a pictorial illustration of the third part of the transaction illustrated in

Fig. 3B for a plurality of merchants;

[0026] Fig. 3E is a pictorial illustration of another embodiment of the third part of the

credit-card transaction of Figure 1A;

[0027] Figs. 4A and 4B illustrate the processing of a credit-card transaction according to an

embodiment of the present invention;

[0028] Fig. 5 A is a pictorial illustration of a cash or cash-substitute transaction between a

consumer and a merchant according to an embodiment of the invention;

[0029] Fig. 5B is a pictorial illustration of a cash or cash-substitute transaction between a

consumer and a merchant according to another embodiment of the invention;

[0030] Fig. 5C is a pictorial illustration of the system of Fig. 5 A with a plurality of

merchants;

[0031] Fig. 5D is a pictorial illustration of the system of Fig. 5B with a plurality of

merchants;

[0032] Fig. 6 is a flowchart illustrating the processing of a cash or cash-substitute

transaction according to an embodiment of the invention;

[0033] Fig. 7 A is a pictorial illustration of a debit or truncated check transaction between a

consumer and a merchant according to an embodiment of the invention; [0034] Fig. 7B is a pictorial illustration of a debit or truncated check transaction between a consumer and a merchant according to another embodiment of the invention;

[0035] Fig. 7C is a pictorial illustration of the system of Fig. 7 A with a plurality of

merchants; [0036] Fig. 7D is a pictorial illustration of the system of Fig. 7B with a plurality of

merchants; [0037] Fig. 8 is a pictorial illustration of an income tax collection system according to the

present invention;

[0038] Fig. 9 is a flowchart illustrating the operation of one embodiment of the invention;

[0039] Fig. 10 is a flowchart illustrating the operation of another embodiment of an income tax collection system according to the invention; and

[0040] Fig. 11 is a pictorial illustration of another embodiment of an income tax collection

and distribution system according to the invention.

DESCRIPTION OF CERTAIN EMBODIMENTS OF THE INVENTION

[0041] The disclosed embodiments of the present invention provide a system and a method

for collection and distribution of taxes on a frequent, regular basis, such as daily,

weekly, monthly, or quarterly, as well as other. A system or method according to the invention may be used for face-to-face, e-commerce, telephone or other

transactions between a merchant and a consumer. The disclosed embodiments

provide a system and a method for transferring funds from numerous merchant

banks, financial accounts or other to numerous taxing authorities banks, financial accounts or other, in an efficient manner, with each merchant seeking to transfer funds to perhaps several taxing authorities and each taxing authority seeking to

receive funds from many merchants. An automated and centralized distribution

feature allows the merchant banks, financial accounts or other, and the taxing authorities banks, financial accounts or other, to each communicate with a single or

relatively few entities in transferring the funds. Therefore, efficient tax collection

and distribution may be achieved without overburdening either individual merchants or individual taxing authorities.

[0042] As an example of an embodiment of the invention, Figures 1A, 2A, 3A, 4A and 4B

illustrate a credit-card transaction that may be conducted between a consumer and a merchant. The processing of credit card transactions is discussed in Developer's

Guide to Integrating Electronic Payments by Bill Pittman (Rich Solutions, Inc. ,

2001), which is hereby incorporated by reference in its entirety.

[0043] Referring first to Figs. 1A and 4A, a consumer 12 may interact with a merchant 14

through an interaction means 16 such as a public and/or private, direct and/or indirect means of transaction communication, including, but not limited to, a public

switched telephone network (PSTN), the Internet, cable, T-l, fiber optic, satellite,

cellular or other wireless, face-to-face, mail or other. The consumer 12 obtains a

credit card from an issuer bank 18 and/or a service provider which supplies the consumer 12 with a credit line. The issuer bank 18 may be a bank or other card company such as travel and entertainment, petroleum or other. Similarly, the

merchant 14 acquires credit-transaction capability through an acquirer bank and/or a service provider 21. The merchant 14 may interact with the acquirer bank and/or service provider 21 through a gateway 30 having a gateway computer 30A.

Alternatively, the merchant 14 may interact directly with the acquirer bank and/or

service provider 21. The merchant 14 may also have an account at a merchant's

bank 23 for holding and transferring funds. The issuer bank 18 and the acquirer bank 21 may interact through credit card associations 25 such as Visa or MasterCard and/or other card organizations (CO). In some transactions, the issuer

bank and the acquirer bank may be the same entity such as may be the case with

private label cards, travel and entertainment cards, petroleum cards and others. In still other transactions, for certain types of credit cards, the card organization itself may function as either one or both of the issuer and acquirer, or other entity such as

a clearinghouse (not shown). A central financial entity 27, such as the Federal

Reserve Bank, a state bank, or another institution such as a processor, may be either

a private entity or a government entity. The central financial entity 27 may be any

institution qualified and capable of acting as a conduit for distribution of funds. The central financial entity computer 25 A may be one or more computers, and the

central financial entity may be one or more entities. A plurality of taxing entities

requiring tax collection may be individual states, local municipalities, the federal government, or other taxing entities, each having various taxing rates and/or

distribution rules. The plurality of taxing entity banks 29 having computers such as computer 29A may be capable of receiving fund transfers on behalf of the taxing

entities. [0044] As illustrated in Figs. 1A and 4A, a credit card transaction begins with the

consumer 12 presenting his or her credit card and/or information to the merchant 14

(line A in Fig. 1A and block 410 in Fig. 4A). Prior to completing the transaction,

the merchant 14 may be required to obtain approval for the credit card transaction

from the issuer bank 18. In Fig. 4A, this is indicated by block 412. In this regard, the merchant 14 uses a computer 14A and/or other payment terminal or payment device, to forward the transaction information to a computer 21 A at its acquirer

bank through a gateway computer 30A at a gateway (lines B and C in Fig. 1A). In

other embodiments, the merchant 14 may transmit the information directly to the acquirer bank 21, bypassing the gateway 30.

[0045] In another embodiment, illustrated in Fig. IB, a merchant 114 may forward the

transaction information to a computer 22A at a third party service provider 22, such

as a web-based provider or other. The information may be transmitted through a computer 130A at a gateway 130, as illustrated in Fig. IB, lines B and C, or directly to the third-party service provider computer 22 A.

[0046] For a conventional brick-and-mortar merchant location, the merchant 14 may have a

computer with a magnetic strip reader for swiping a physical credit card, a point-of-

sale electronic payment device or a conventional cash register and/or other payment

device. For e-commerce or telephone transactions, the merchant 14 may have a host such as a server connected to a web link, a virtual terminal and/or other payment device. [0047] Referring now to Figs. 1A and IB, the forwarded transaction information includes the transaction amount, including a portion for taxes. Thus, the merchant's •

computer 14A, 114A or the third-party service provider computer 22 A of Fig. IB

or other may determine the amount of tax to be collected from the consumer. This

determination may be made by the merchant's computer 14 A, 114 A, the third-party service provider computer 22A or other based on knowledge of the location of the

consumer 12, location of the merchant 14, the tax laws of the various taxing entities

29 and predetermined distribution rules. Distribution rules may be agreed upon by

the various taxing entities 29. For example, the distribution rules may specify the distribution of taxes if the consumer 12 is in one state and the merchant 14 is in

another. The rules may also take into account the locations of billing, warehouse or

fulfillment centers. The location of the consumer 12 may be determined or sourced

according to information provided by the consumer 12, such as a home ZIP +4

code. The ZIP +4 code may also be obtained from the consumer's credit card billing address _; an AVS (address verification service) or other.

[0048] Such distribution rules may also be used to provide the additional advantage of

preventing or remedying fraud. For example, distribution rules implemented on a

merchant's computer may be used to collect back taxes owed by the merchant to one

or more taxing entities.

[0049] Referring now to Fig. 1A, the acquirer bank computer 21 A (Fig. 1A) or other forwards the credit-card and transaction information to a computer 25A at the

appropriate credit-card association 25 (line D) and/or other CO, which forwards a request for approval to a computer 18A at the consumer's issuer bank 18 (line E). In other embodiments, the request for approval of the transaction may be transmitted

to an entity that is different than the issuer bank and/or other CO. For example, the

approval process may be outsourced by the issuer bank to a third party.

[0050] Similarly, in the embodiment illustrated in Fig. IB, the third party service provider computer 22A or other forwards the credit-card and transaction information to a

computer 125A at the appropriate credit-card association 125 (line D) and/or other CO, which forwards a request for transaction approval to a computer at the

consumer's issuer bank.

[0051] Referring again to Fig. 1A, the association computer 25A may be one or more

computers, and the central financial entity may be one or more entities. The issuer bank computer 18A and/or other CO may either approve or deny the request for

credit and send a response to the association's computer 25 A and/or other CO (line

F).

[0052] In the embodiment illustrated in Fig. 1A, the response from the issuer bank computer 18A is forwarded via the association's computer 25 A to the computer 21 A

at the acquirer bank 21 (line G), which then forwards the response to the merchant's

computer 14A through the gateway computer 30A (lines H and I). Again, in other

embodiments, the gateway 30 may be bypassed, and the response may be forwarded directly from the acquirer bank computer 21A to the merchant's computer 14A.

[0053] Similarly, in the embodiment illustrated in Fig. IB, the response from the issuer

bank computer is forwarded by the association's computer 125A to the third party service provider computer 22A (line G). The third party service provider computer

22A may then forward the response to the merchant's computer 114A through the gateway computer 130A (lines H and I), or may bypass the gateway 130 and

transmit the response directly to the merchant's computer 114A.

[0054] Referring again to Fig. 1A, if the issuer bank computer 18A authorizes the request for approval, the merchant's computer 14A obtains the approval, and the transaction is ready to proceed to a settlement phase. In this phase, illustrated in Fig. 2A, the

actual transfer of credit occurs through a path similar to that described above with

reference to Fig. 1A. The merchant 14 uses his computer 14A to forward, through the gateway computer 30A, the credit-card and transaction information, including

the total sales amount, to the computer 21 A at its acquirer bank 21 (lines J and K). Again, the gateway 30 may be bypassed in other embodiments.

[0055] For the embodiment illustrated in Fig. IB, the settlement phase is illustrated in Fig.

2B. The merchant 114 may transmit the credit-card and transaction information

from his computer 114A to the computer 22A at the third party service provider 22 through the gateway computer 130A (lines J and K). Alternatively, the gateway 130

may be bypassed, and the information may be transmitted directly from the

merchant's computer 114A to the third-party service provider computer 22A.

[0056] In many instances, the total sales amount may be different from the amount approved in the first phase. For example, in the case of restaurants and/or other

establishments where a gratuity would be used (e.g., taxi, hair salon, delivery, bar,

or other), the approved amount may include the sale amount plus an allowance for a gratuity. Once the consumer adds the tip to the sale amount, the total sales amount

is transmitted to the acquirer bank 21 (Fig. 2A), the third party service provider 22 (Fig. 2B) or other. The acquirer bank computer 21 A (Fig. 2 A) or the third party

service provider computer 22 A (Fig. 2B) forwards the credit card and transaction

information to the computer 25 A at the appropriate credit-card association 25, 125

and/or other card organization (line I), which forwards it to the computer 18A at the issuer bank 18 (line L).

[0057] Referring again to Fig. 2A, the computer 25 A at the credit card association 25

forwards the credit-card and transaction information to the computer 18A at the

issuer bank 18 (line M). Again, a separate entity may be used to perform this function of the issuer bank 18. The issuer bank computer 18A may then return a transaction confirmation code such as confirmation, approval or authorization or

declined or other to the merchant's computer 14A via the association 25 and/or

other card organization, the acquirer bank 21 and the gateway 30 (lines N, O, P and

Q). Again, the use of the gateway 30 may be bypassed in other embodiments.

[0058] In the embodiment illustrated in Fig. 2B, the response from the issuer bank

computer may be returned to the merchant's computer 114A via the association 125,

the third-party service provider 22 and the gateway 130, which may be bypassed in

other embodiments.

[0059] Referring again to Fig. 2A, during the transaction, such as at its completion, the merchant's computer 14A may calculate the sales tax owed to each taxing entity 29

and append that calculation to a database (not shown) within the merchant's computer 14A or other, as well as appending an accounting of the credit card proceeds to be collected (block 414 of Fig. 4A). In other embodiments, the tax calculation database or service may be located on a separate computer, such as one

belonging to a third party service provider or other such as a clearinghouse.

Referring now to Figs. 3A, 4A and 4B, the merchant's computer 14A may

periodically transmit information relating to all credit-card transactions during a period to the computer 21 A at its acquirer bank 21 for collection of funds. In this

regard, the merchant's computer 14A may determine, through either an internal

clock or through manual input from a user, whether additional transactions are to be

conducted in the period (block 416 in Fig. 4A). This operation may be performed at part of a conventional batching operation, or done separately. The merchant's computer may transmit the required information ultimately to the computer 21 A at

the acquirer bank 21 or other through a gateway computer 30A (lines R and S in

Fig. 3A, block 418 in Fig. 4A). For example, at the end of a day, shift, period or

other, the merchant's computer 14A may transmit the individual or cumulative transaction information for that day, shift, period or other to a third party service

provider or clearinghouse, and then to the acquirer bank, merchant's bank or other.

In other embodiments, the gateway 30 may be bypassed. The information includes

data relating to distribution of taxes to each taxing entity bank 29 or financial

account entity. For example, along with the total amount of funds to be collected from the various issuer banks 18, the information may include the portion of those funds accounting for the merchant's revenue and the portion accounting for the taxes, as well as the taxing entity (ies) to which those taxes are to be disbursed. In one embodiment of the invention, the information may also include the portion of funds accounting for income tax due to the taxing entity bank 29. The income tax

portion may be estimated by the merchant's computer 14A, for example, by one of

several methods. For example, as described below with reference to Figs. 9 and 10, the merchant's computer 14 A may calculate the income tax due based on a ratio of tax to revenue from a previous year.

[0061] The acquirer bank's computer 21A then forwards a debit request, such as a

settlement request or other, to the computer 25 A at the appropriate credit-card

association 25 and/or other COs (line U in Fig. 3 A, block 420 in Fig. 4A).

[0062] The association's computer 25 A may then forward the debit request to the issuer bank's computer 18A (line W in Fig. 3A, block 422 in Fig. 4B), which responds

with the transmission of a credit file to the central financial entity's computer 27 A

(line X in Fig. 3A, block 424 in Fig. 4B). The issuer bank's role as a credit entity

may be performed by a separate entity. For example, the issuer bank 18 may outsource this function to a third party. Tax-related data may be tagged, such as flagged or otherwise identified, to the request at each stage.

[0063] It is understood that the computer 27 A at the central financial entity 27, as well as

the various other illustrated computers, may be a group of computers disposed in

different locations. They may, of course, include various different servers in a networked system such as an Internet-based system. [0064] Alternatively, the information from the merchants' computer 14A may only include

raw data relating to the transactions, including the monetary amount of transactions involving each taxing entity 29. In this instance, the central financial entity's

computer 27 A, for example, may determine the required distributions to the various

taxing entities 29 based on the provided information, knowledge of the tax laws of

the various taxing entities 29 and/or predetermined distribution rules, such as those discussed in paragraph 46. In a further embodiment, an external service entity (not shown) may perform the determination of the distributions and may pass that

information to the computer 27 A at the central financial entity 27.

[0065] The central financial entity's computer 27 A may then distribute the tax amounts to

the various taxing entities banks 29, financial account entity or other according to the information provided by a third party service computer, or the merchant's

computer 14A (lines Y in Fig. 3A, block 426 in Fig. 4B) or other computer or

server. In this regard, the central financial entity's computer 27 A may transmit

signals to computers at the various taxing entities banks 29, financial account entity or other, such as computer 29A. The signals transmitted to the computers 29A at

the taxing entity banks 29 may also include merchant tax reporting information.

The central financial entity's computer 27 A then transmits the balance of the credit

file to a computer 25A at the appropriate credit-card association 25 and/or other

card organization (line Zl in Fig. 3 A, block 428 in Fig. 4B). It is understood that the fund transfer may be transferred to a bank (not shown) on behalf of the association 25 and/or other card organization. [0066] The credit-card association's computer 25 A may subtract a fee for its services from the credit file. The charge may be a percentage of the funds processed by the association 25 and/or other card organization, or a transaction fee or other. In this

regard, the present invention may offer the additional advantage of lowering the cost

to the merchant 14 of conducting credit card transactions. Since the tax portion of the fund transfer, including the income tax portion, may be removed prior to receipt

of the funds by the association and/or other card organization 25, the merchant 14 may not be required to pay a fee for processing of that tax portion of the

transaction. However, the funds may include tax amount as done today, thereby

providing additional percentage fees to the associations and other card organizations.

[0067] The credit card association's computer 25 A and/or other card organizations then

forwards the balance of the funds to the acquiring bank's computer 21 A (line Z2 in

Fig. 3A, block 428 in Fig. 4B). The acquiring bank's computer 21 A may then

forward the funds either directly to a merchant's specified account or, as illustrated in Fig. 3A by line Z3, to a computer 23A at the merchant's bank 23 (block 430 in

Fig. 4B). Thus, taxes collected through all credit-card and/or other transactions

may be distributed to the taxing entities bank 29 or financial account entities

through, for example, a central financial entity 27.

[0068] In other embodiments of the invention, other entities may be used as a distribution point for the taxing entities 29. For example, the computers 25A at various credit associations, third party service providers and/or other CO 25 may serve as the distributing entities. Alternatively, each acquirer bank 21 or issuer bank 18 may

perform this function (not shown if Fig. 3A).

[0069] In yet another embodiment, as illustrated in Fig. 3E, a fund transfer in response to a

debit request may be transmitted from a computer 218A at the issuer bank 218 to a

computer 225 A at the credit-card association 225 or other CO (line X in Fig. 3E),

which may deduct its service fee prior to forwarding the balance to a computer 221A at the acquirer bank 221 (line Y in Fig. 3E). The acquirer bank, after

possibly deducting a service fee, forwards the funds to a computer 227A at a central financial entity 227 along with tax distribution information (line Z in Fig. 3E). The

central financial entity computer 227A may use the tax distribution information to

forward a tax component of the funds to each of a plurality of taxing entity banks 229 or financial account entities, each having a computer such as computer 229 A

(line Zl in Fig. 3E). The central financial entity computer 227 A may then forward

the remaining balance to a computer 223 A at a merchant's bank 223 (line Z2 in Fig. 3E).

[0070] For the embodiment illustrated in Figs. IB and 2B and described above, this phase

is illustrated in Fig. 3B. In this embodiment, the merchant's computer 114A, at a

time determined as described above with reference to Fig. 3A, may transmit the

required information through the gateway computer 130 A (which may be bypassed

in other embodiments) to the third-party service provider computer 22A or other (lines R and S in Fig. 3B). The third-party service provider computer 22A may forward the information to a computer 26A at a tax service provider 26 (line T) for determination of the allocation of the tax funds to the appropriate taxing entities.

The tax service provider computer 26 A then returns the information, including tax

distribution information, to the third-party service provider computer 22A (line U). In other embodiments, the tax allocation may have been determined on a

transaction-by-transaction basis, thus eliminating the need for the determination by

the tax service provider 26. In other embodiments, the information may be transmitted directly from the merchant's computer 114A to the tax service provider computer 26A, bypassing either one or both of the gateway computer 130A and the

third-party service provider computer 22 A. In further embodiments, the third-party

service provider 22 and the tax service provider 26 may be a single entity, and the

third-party service provider computer 22A and the tax service provider computer 26A may be a single unit. The third-party service provider computer 22A then forwards a debit request, such as a settlement request or other, to the computers

125 A at the appropriate credit-card associations 125 and/or other COs (line V). In

some embodiments, as illustrated in Fig. 3B, the associations 125 may transmit the

debit request directly to the issuer banks (line W in Fig. 3B). In further

embodiments, as also illustrated in Fig. 3B, the central financial entity 127 may

receive a fund transfer from the issuer bank, bypass the associations and transfer the

balance of the funds directly to the acquirer bank computer 121 A (line Zl in Fig.

3B). In this regard, the fees due to the associations may be determined and paid separately. [0071] For sake of simplicity, Figs. 1A, 2A and 3A illustrate a single transaction involving

a single merchant. As illustrated in Fig. 3C, however, a system according to the

invention may be implemented with a plurality of merchants. Fig. 3C illustrates the portion of the transaction illustrated in Fig. 3 A, but with a plurality of merchants

314, a plurality of merchants' banks 323, a plurality of acquirer banks 321, a

plurality of associations 325 and/or other card organizations and a plurality of issuer

banks 318. A single central financial entity 327, such as the Federal Reserve Bank

or a small group of entities such as issuers, acquirers or other qualified banks or entities, may be used to distribute taxes to a plurality of taxing entity banks or

financial account entities 329.

[0072] Similarly, the embodiment illustrated in Figs. IB, 2B and 3B may also be

implemented with a plurality of merchants. Fig. 3D illustrates the portion of the

transaction illustrated in Fig. 3B, but with a plurality of merchants 364, a plurality

of merchants' banks 373, a plurality of acquirer banks 371, a plurality of third-party

service providers 371, a plurality of associations 375 and/or other card

organizations and a plurality of issuer banks 368. A single central financial entity 377 may be used to distribute taxes to a plurality of taxing entity banks or financial

account entities 379.

[0073] It is understood that the functions performed by any entity illustrated in the figures

may be divided among two or more entities. Similarly, functions performed by two or more illustrated entities may be performed by a single entity. [0074] Thus, in a system according to an embodiment of the invention, the tax proceeds are

distributed to the taxing entities' banks 29 or financial account entities in a centralized manner from numerous merchants and including a plurality of acquirer

banks, issuer banks and merchant's banks. Accordingly, the taxing entities banks

29 or financial account entities each receive their funds from either a single source

or relatively few sources, rather than the thousands of merchants throughout their

jurisdiction. Further, the tax funds may not be transmitted to each individual merchant 14 bank or financial account entity; rather, they may be directed to the

taxing entity banks 29 or financial account entities prior to the transmittal of funds

to the merchant 14 bank or financial account entity. However, it will become

apparent to those skilled in the art that the merchant may receive the tax funds prior to their transmission to the taxing authority. Accordingly, there is little or no

opportunity for a merchant to withhold some of the funds for himself. Additionally, the taxing entities are provided with the funds quicker without reliance on fast action

by the merchants.

[0075] Figs. 5 A and 6 illustrate the distribution of taxes according to another embodiment

of the invention. Figs. 5 A and 6 relate to the distribution of taxes when the transaction involves either cash or cash-substitutes. As noted above, cash-

substitutes may include check cards, smart cards, debit cards, electronic wallets

installed on the computers of consumers as well as other methods of payment such

as check guarantees, check truncations or check conversions, or other financial transaction methods, devices, or techniques. As with the transactions described above with reference to Figs. 1A and 4B, transactions involving cash or cash-

substitutes may also be conducted through interaction means 36. In this embodiment, as illustrated in Figs. 5 A and 6, a consumer 32 presents cash or cash substitute to a merchant 34 to complete a transaction (line AA in Fig. 5A, block 610

in Fig. 6). The transaction information may be supplied to a merchant's computer

34A. Periodically, the merchant's computer 34A may forward cash transaction information to a computer 43A at a merchant's bank 43 or other (line AB in Fig.

5A, block 612 in Fig. 6). The merchant's bank's computer 43A or other may then

forward the cumulative cash transaction information and a credit data file to a

computer 47A at a central financial entity 47 (line AE in Fig. 5A, block 614 in Fig.

6). The information may include the tax amounts due to each of a plurality of taxing entity banks 49 or financial account entities, as calculated by the merchant's

computer 34 A or certified service provider, or other. In one embodiment of the invention, the information includes the tax amount due on the merchant's income

from the transactions. Alternatively, the cash and cash substitute transaction

information may contain only information relating to the various transactions. In this case, the central financial entity computer 47 A or a service provider, for

example, may calculate the individual or cumulative transactions distribution of the

taxes to the various taxing entity banks 49 or financial account entities, as indicated

by block 616 in Fig. 6. In this regard, the calculation of the distribution may also

be performed by another intermediate entity. [0076] In another embodiment, the merchant's computer 34A may forward the information

directly to the central financial entity's computer 47 A.

[0077] In other embodiments, as illustrated in Fig. 5B, a merchant 134 may use a computer 134A to transmit the transaction information to a computer 44A at a third-party

service provider 44 (line AB in Fig. 5B). The third-party service provider computer

44A may forward the information to a computer 46A at a tax service provider 46

(line AC) for determination of tax allocation. The tax service provider computer 46 A may then return the information, including the tax allocation information, to the third-party service provider computer 44A (line AD) for transmission to a

computer 147 A at a central financial entity 147 (line AE). In other embodiments,

the merchant's computer 134A may transmit the information to the third-party

service provider 44A through a gateway computer (not shown). In further embodiments, the merchant's computer 134A may bypass the third-party service

provider and transmit the information directly to the tax service provider computer

46 A. In still further embodiments, the third party service provider 44 and the tax

service provider 46 may be a single entity, and the third party service provider computer 44A and the tax service provider computer 46A may be a single unit.

[0078] Referring again to Fig. 5 A, the credit data file forwarded to the central financial

entity's computer 47 A provides the information and funds for distribution to the

taxing entity banks 49. Thus, the central financial entity's computer 47 A is able to

transmit the distributions to the taxing entity banks 49 according to the calculations made either by the central financial entity's computer 47 A, the merchant's computer 43 A, a third party service provider (not shown) or other. The distribution may be

accomplished by transmitting a message, including a fund transfer, from the central

financial entity's computer 47 A to a computer 49 A at each taxing entity bank or financial account entity 49 (line AF in Fig. 5 A, block 618 in Fig. 6).

[0079] The distribution function performed by the central financial entity 47 in the above

example may alternatively be performed by another entity. It is understood that the

central financial entity 47 may be any institution or entity qualified and capable of serving as a conduit for the transfer of funds to the various taxing entities 49 bank or financial account entity.

[0080] For sake of simplicity, Figs. 5 A and 6 illustrate a single transaction involving a

single merchant. As illustrated in Fig. 5C, however, a system according to the

invention may be implemented with a plurality of merchants 534, each having a computer such as computer 534A. Fig. 5C illustrates each of the merchants 534

transacting with consumers 532. Fig. 5C further illustrates the system with a

plurality of merchant's banks 543, each having a computer such as computer 543 A.

A single central financial entity 547 may be used to distribute taxes from the plurality of merchants 534 to the plurality of taxing entity banks 549 or financial account entities, each having a computer such as computer 549 A.

[0081] Similarly, the embodiment illustrated in Fig. 5B may also be implemented with a

plurality of merchants. Fig. 5D illustrates a system according to the invention with

a plurality of merchants 584, each having a computer such as computer 584A. Fig. 5D illustrates each of the merchants 584 transacting with consumers 582. Fig. 5D further illustrates the system with a plurality of third party service providers 544,

each having a computer such as computer 544 A. A single central financial entity

597 may be used to distribute taxes from the plurality of merchants 584 to the plurality of taxing entity banks 599 or financial account entities, each having a computer such as computer 599A.

[0082] It is understood that the communications between the various computers may be via

secure networks.

[0083] Fig. 7A illustrates yet another embodiment of the invention. In this embodiment, a consumer 52 interacts with a merchant 54 to perform a transaction wherein the

consumer 52 pays the merchant 54 by a debit card, a check card, a truncated check

or other debit devices such as an electronic benefit transfer (EBT) card, or other

(line AG). With these forms of payment, the merchant 54 receives payment from the consumer's account at a consumer's bank 58 or other institutions. At the

completion of or during the transaction or at another time, the merchant 54, through

a computer 54A, transmits transaction information, through a computer 60A at a

gateway 60, to a computer 61A at a debit clearinghouse 61 (lines AH and AL). The debit clearinghouse may be an entity such as an automated clearing house (ACH). In other embodiments, the gateway 60 may be bypassed.

[0084] In other embodiments, as illustrated in Fig. 7B, a merchant 154 may use a computer

154A to transmit the transaction information, through a gateway computer 160A, to

a computer 62 A at a third-party service provider 62 (lines AH and AI in Fig. 7B). As noted above, the gateway 160 may be bypassed in other embodiments. The third-party service provider computer 62A may forward the information to a

computer 64 A at a tax service provider 64 (line AJ in Fig. 7B) for determination of allocation of tax funds to various taxing entities. The tax service provider computer 64A then returns the information, including the tax allocation information, to the

third party service provider computer 62 A (line AK in Fig. 7B), which forwards the

information to a computer 161 A at a debit clearing house 161. In other

embodiments, the merchant's computer 154 A may bypass the third-party service provider 62 and transmit the information directly to the tax service provider computer 64 A. In further embodiments, the third party service provider 62 and the

tax service provider 64 may be a single entity, and the third party service provider

computer 62A and the tax service provider computer 64A may be a single unit.

Referring again to Fig. 7A, the debit clearing house computer 61 A then relays the information to a computer 58 A at the consumer's bank 58 (line AM) for certain

transactions such as debit cards and other card types. For other modes of payments,

such as check cards, an acquirer computer and/or other third party service computer

may be used to clear the transaction. Others such as check guarantees, check truncations, check conversions or others, may be cleared through a third party

clearinghouse, the central financial entity computer 67 A or other. The transaction

information includes data relating to the distribution of any tax on the transaction.

In one embodiment of the invention, the data relating to income tax due by the

merchant as a result of the transaction may be appended to the transaction information. The computer 58A at the consumer's bank 58 may then transfer funds to the computer 61 A at the debit clearinghouse 61 (line AN). The debit

clearinghouse computer 61 A may then transmit an approval signal to the computer

54A of the merchant 54 through the gateway computer 60A, via lines AP and AQ, as illustrated in Fig. 7A, and transfer funds to a computer 63A at the merchant's bank 63 in the amount of the transaction less the tax portion (line AR). Again, in

other embodiments, the gateway 60 may be bypassed.

[0086] In the embodiment illustrated in Fig. 7B, the debit clearing house computer 161 A may transfer the funds to the third-party service provider computer 62A (line AO in

Fig. 7B). The third-party service provider computer 62 A may transmit an approval

signal to the merchant's computer 154A via the gateway computer 160A (lines AP

and AQ in Fig. 7B). The third-party service provider computer 62A may transmit

the non-tax portion of the funds to a computer 163A at a merchant's bank 163 (line AR in Fig. 7B), and may forward the tax portion, along with tax distribution

information, to a computer 167A at a central financial entity 167 (line AS in Fig.

7B) for distribution to the various taxing entity banks or financial account entities.

It is understood that the third-party service provider computer 62A may bypass the

central financial entity 167 and transmit the tax portion directly to the various taxing

entity banks or financial account entities.

[0087] In other embodiments, the debit clearinghouse computer 161 A may forward the

entire fund transfer to the central financial entity computer 167A for distribution to

the merchant's bank's computer 163A and the various taxing entity banks or financial account entities. In a still further embodiment, the functions of the debit clearinghouse 161 and the central financial entity 167 may be performed by a single

entity.

[0088] Referring again to Fig. 7A, the clearinghouse computer 61 A may, either concurrently or subsequently, transfer the tax portion, along with distribution data, to a computer 67A at a central financial entity 67 (line AS) for distribution to

computers 69A at the various taxing entity banks 69 (line AT) or other bank or

financial authority.

[0089] In one embodiment, the functions of the clearinghouse 61 and the central financial entity 67 may be performed by a single entity. For example, the clearinghouse 61

may distribute funds to the taxing entities 69 or other bank or financial authority

directly.

[0090] In another embodiment, the total amount of the transaction, including the tax

portion, may be transferred at line AR to the merchant's bank's computer 63A. The merchant's bank's computer 63A may then transfer the tax portion, along with the

distribution information, to the computer 67 A at the central financial entity 67, with

remainder of the funds being directed to a bank or financial account belonging to the

merchant 54. In this regard, the merchant's bank's computer 63 A may accumulate

the tax funds from several transactions prior to submitting the information and the funds to the central financial entity's computer 67 A. Thus, rather than a data and

fund transfer for each transaction, the merchant's bank's computer may perform

such a transfer periodically, such as on a daily, weekly and/or other basis. [0091] In still further embodiments, the computer 58A at the consumer's bank may only

transfer the amount of the transaction less the tax portion to the computer 61 A at the

debit clearinghouse 61 at line AN. The consumer's bank's computer 58A may transfer the tax portion with distribution information to the computer 67A at the central financial entity 67.

[0092] For the sake of simplicity, Fig. 7A illustrates a system with a single transaction

involving a single merchant and a single consumer. As illustrated in Fig. 7C, however, a system according to the invention may be implemented with a plurality

of merchants 754, each having a computer such as computer 754 A. Each of the

merchants 754 may transact with one or more of consumers 752, each of the

consumers 752 being associated with one of a plurality of consumer's banks 758, each of the consumer's banks 758 having a computer such as computer 758A. Each

of the merchants 754 may communicate with a computer 761 A at a debit clearinghouse 761 via a computer 760A at a gateway 760 for transaction clearing

purposes. A single central financial entity 767 having a computer 767A or a third

party service provider computer or other may be used to distribute taxes to a plurality of taxing entity banks 769.

[0093] Similarly, the embodiment illustrated in Fig. 7B may also be implemented with a

plurality of merchants. Fig. 7D illustrates a system according to the invention with

a plurality of merchants 704, each having a computer such as computer 704 A. Fig.

7D illustrates each of the merchants 704 transacting with consumers 702, each of the consumers 702 being associated with one of a plurality of consumer's banks 708, each of the consumer's banks 708 having a computer such as computer 708A.

Fig. 7D further illustrates the system with a gateway 710, plurality of third party

service providers 712, each having a computer such as computer 712A, and a plurality of debit clearing houses 711. A single central financial entity 717 may be

used to distribute taxes from the plurality of merchants 704 to the plurality of taxing entity banks 719 or financial account entities, each having a computer such as

computer 719A.

[0094] Another embodiment of the present invention provides a system and method for point-of-sale tax collection that can be used for rapid collection of income taxes

from, for example, large merchants. As an example of an embodiment of the

invention, Fig. 8 illustrates an arrangement by which a plurality of taxing entities 89

may collect taxes from a merchant 74 earning income through sales to consumers 72. In Fig. 8, a consumer 72 interacts with a merchant 74 having a point-of-sale

(POS) terminal 74A through, for example, a salesperson. The interaction between

the consumer 72 and the merchant 74 may also occur through an interaction means

76, which may be one of a variety of other modes. For example, the consumer may

interact with the merchant through a public switched telephone network (PSTN) or a

public computer network such as the Internet. For certain modes, the transaction may be completely automated at the merchant's end.

[0095] The merchant's POS terminal 74A is adapted to communicate with a computer 83 A

at the merchant's bank 83 through, for example, a telephone connection or a computer network. The computer 83 A at the merchant's bank 83 may maintain one

or more accounts for the merchant 74 through which funds may be transferred.

[0096] Referring again to Figure 8, the computer 83A at the merchant's bank 83 is adapted to communicate with computers 89 A at a plurality of taxing entity banks 89. The taxing entity banks 89 may be associated with various taxing entities including, for

example, a federal government, a state government, or local county or municipal

governments. Additionally, particularly for transactions occurring through the telephone or computer networks, for example, multiple state and local taxing

authorities which may be involved for each transaction. Further, for international

transactions, taxing authorities of two or more nations may be involved.

[0097] Fig. 9 illustrates one embodiment of an operation according to the invention for collecting income taxes rapidly using, for example, the system illustrated in Fig. 8.

At block 910, the merchant's computer or POS terminal 74A completes a POS sale

with a consumer 72. As noted above, the sale may be conducted through various

modes including the PSTN, the Internet, or face-to-face. At block 912, the

merchant's POS terminal 74A determines whether the just-completed sale was the

last sale for a pre-determined period. The period may comprise a predetermined length of time such as a business day, a business week, or other appropriate period.

The determination at block 912 may be made by the POS terminal 74A based on,

for example, either an internal clock indicating the end of a business day or through input from a salesperson indicating the close of business. [0098] At block 914, the merchant's POS terminal 74A connects to the merchant's bank's

computer 83A and transmits the recorded tax information. The connection between the merchant's POS terminal 74A and the merchant's bank's computer 83A may be

performed through a variety of means, including the Internet or a telephone connection. The information transmitted to the merchant's bank's computer 83A

may include the amount of income tax to be paid to the various taxing entities as well as identification of the corresponding taxing entity banks 89. The tax amounts

for the various taxing entities may be calculated as, for example, a pro rata portion of the previous year's taxes. An internal routine in the merchant's POS terminal

74A may account for irregular periods resulting from, for example, holidays or

weekends. Thus, for example, the pro rata portion for a day following a holiday

may be double that for a regular day. Alternatively, the information may only include the total sales revenue for the period with the income tax to be paid being

calculated by the merchant's bank's computer83A.

[0099] At block 916, the merchant's bank's computer 83A connects to one taxing entity

bank's computer 89A. Again, this connection may be performed through a variety of methods including the Internet or a telephone connection. At block 918, the

merchant's bank's computer 83A transfers the tax funds to the taxing entity bank's

computer 89A through an electronic fund transfer. Accordingly, the merchant's

account at the merchant's bank 83 may be debited the tax amount. At block 920,

the merchant's bank's computer 83 A determines whether additional taxing entity banks 89 remain to whom funds must be transferred for the present period. If additional taxing entity banks 89 remain, the process returns to block 916 and

connects to the next taxing entity bank's computer 89A. If, at block 920, no additional taxing entity banks 89 remain, the merchant's bank's computer 83A

disconnects from the taxing entity bank's computer 89A and the process is completed.

[00100] Fig. 10 illustrates a second embodiment of a rapid tax collection system according

to the invention. At block 1010, a POS sale is conducted and completed between a consumer 72 and a merchant 74 having a POS terminal 74 A. Again, as described above, the POS sale may be conducted through may modes including the Internet,

PSTN, or face-to-face.

[00101] In the embodiment illustrated in Figure 10, the income tax resulting from the particular sale is calculated after each sale. Thus, at block 1012, the merchant's

POS terminal 74A calculates an estimate of the income and the resulting income tax

from the sale. This calculation may be made according to several methods. For

example, the difference between the sale amount and the known cost to the merchant

74 of the product or services sold may be calculated. A factor for determining the income may be applied for the resulting difference. The factor may take into

account all other expenses which the merchant 74 must incur, including, for example, overhead. Alternatively, a different factor may be applied to the sale

amount to determine an estimated income and an estimated income tax. For

example, a ratio of income to sales revenue from the previous year may be used to determine the estimated income from the sale. [00102] At block 1014, the merchant's POS terminal 74A updates the total income taxes for

the period for each taxing entity. Again, the taxing entities may include the federal

government, one or more state governments, and one or more local governments. At block 1016, the merchant's POS terminal 74A determines whether the just- completed POS sale was the last sale for the period. As noted above with reference

to Figure 9, this determination may be made either by the POS terminal 74 A according to an internal clock or though input from a salesperson.

[00103] At block 1018, the merchant's POS terminal 74A connects to the merchant's bank's

computer 83A and transmits the recorded tax information. The connection between

the merchant's POS terminal 74A and the merchant's bank's computer 83A may be

performed through a variety of means, including the Internet or a telephone

connection. The information transmitted to the merchant's bank's computer 83 A

includes the amount of income tax to be paid to the various taxing entities as well as identification of the corresponding taxing entity banks 89. The tax amount is the

cumulative tax from all sales in the period for each taxing entity.

[00104] At block 1020, the merchant's bank's computer 83A connects to one taxing entity

bank's computer 89A. Again, this connection may be performed through a variety of means including the Internet or a telephone connection. At block 1022, the

merchant's bank's computer transfers the tax funds to the taxing entity bank's

computer 89A through an electronic fund transfer. Accordingly, the merchant's account at the merchant's bank 83 may be debited the tax amount. At block 1024, the merchant's bank's computer 83A determines whether additional taxing entity banks 89 remain to whom funds must be transferred. If additional taxing entity

banks 89 remain the process returns to block 1020 and connects to the next taxing entity bank's computers 89A. If, at block 1024, no additional taxing entities 89 remain, the merchant's bank's computer 83 A disconnects from the taxing entity

bank's computer 89A and the process is completed.

[00105] In a further embodiment, illustrated in Fig. 11, a central financial entity 107 having

a computer 107 A may be used to distribute taxes from a plurality of merchants 94 to

a plurality of taxing entities 109. In this embodiment, consumers 92 conduct transactions with a plurality of merchants 94, each having a POS terminal 94 A.

Each POS terminal 94A periodically transmits tax-related data to a computer 103A

at an affiliated merchant's bank 103. Each of the merchant's banks 103 then

transmit the funds and distribution data to a computer 107 A at a central financial

entity 107, which distributes the taxes to the taxing entities 109 by transmitting fund transfers to the computers 109A.

[00106] In an alternative embodiment, the POS terminals 94A may directly transmit the tax-

related data to the central financial entity's computer 107A, bypassing the

merchant's bank 103. In this embodiment, the funds may either be a priori deposited with the central financial entity or be concurrently transferred.

[00107] While particular embodiments of the present invention have been disclosed, it is to

be understood that various different modifications and combinations are possible and are contemplated within the true spirit and scope of the appended claims. There is no intention, therefore, of limitations to the exact abstract and disclosure herein

presented.

Claims

CLAIMS What is claimed is:

1. A tax collection and distribution method, comprising: receiving a first credit-card signal, said first signal including credit-card information and a transaction amount, said transaction amount including a sale amount and a tax amount; transmitting a second signal for receipt by a computer of a transaction approval entity associated with said credit-card information, said second signal including a request for approval of said transaction amount; receiving a third signal from said computer of said transaction approval entity, said third signal including an approval; updating a database to reflect allocation of said tax amount to one or more taxing authorities; and transmitting a fourth signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

2. The method according to claim 1, wherein said fourth signal further includes a cumulative transaction amount to be collected from one or more credit entities.

3. The method according to claim 1 , wherein said fourth signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

4. The method according to claim 1, wherein said first signal is received through a phone network.

5. The method according to claim 1, wherein said first signal is received through a computer network.

6. The method according to claim 5, wherein said computer network is the Internet.

7. A tax collection and distribution system, comprising: means for receiving a first credit-card signal, said first signal including credit- card information and a transaction amount, said transaction amount including a sale amount and a tax amount; means for transmitting a second signal for receipt by a computer of a transaction approval entity associated with said credit-card information, said second signal including a request for approval of said transaction amount; means for receiving a third signal from said computer of said transaction approval entity, said third signal including an approval; means for updating a database to reflect allocation of said tax amount to one or more taxing authorities; and means for transmitting a fourth signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

8. The system according to claim 7, wherein said fourth signal further includes a cumulative transaction amount to be collected from one or more credit entities.

9. The system according to claim 7, wherein said fourth signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

10. The system according to claim 7, wherein said first signal is received through a phone network.

11. The system according to claim 7, wherein said first signal is received through a computer network.

12. The system according to claim 11, wherein said computer network is the Internet.

13. A tax collection and distribution system, comprising: a signal receiving module adapted to receive a first credit-card signal, said first signal including credit-card information and a transaction amount, said transaction amount including a sale amount and a tax amount; a signal transmitting module adapted to transmit a second signal for receipt by a computer of a transaction approval entity associated with said credit-card information, said second signal including a request for approval of said transaction amount; said signal receiving module being adapted to receive a third signal from said computer of said transaction approval entity, said third signal including an approval; a database module adapted to update a database to reflect allocation of said tax amount to one or more taxing authorities; and said signal transmitting module being adapted to transmit a fourth signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

14. The system according to claim 13, wherein said fourth signal further includes a cumulative transaction amount to be collected from one or more credit entities.

15. The system according to claim 13, wherein said fourth signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

16. The system according to claim 13, wherein said receiving module is adapted to receive said first signal through a phone network.

17. The system according to claim 13, wherein said receiving module is adapted to receive said first signal through a computer network.

18. The system according to claim 17, wherein said computer network is the Internet.

19. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first credit-card signal, said first signal including credit-card information and a transaction amount, said transaction amount including a sale amount and a tax amount; transmitting a second signal for receipt by a computer of a transaction approval entity associated with said credit-card information, said second signal including a request for approval of said transaction amount; receiving a third signal from said computer of said transaction approval entity, said third signal including an approval; updating a database to reflect allocation of said tax amount to one or more taxing authorities; and transmitting a fourth signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

20. The program product according to claim 19, characterized in that said fourth signal further includes a cumulative transaction amount to be collected from one or more credit entities.

21. The program product according to claim 19, characterized in that said fourth signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

22. The program product according to claim 19, characterized in that said first signal is received through a phone network.

23. The program product according to claim 19, characterized in that said first signal is received through a computer network.

24. The program product according to claim 23, characterized in that said computer network is the Internet.

25. A tax collection and distribution method, comprising: conducting one or more transactions with consumers, each of said transactions having a transaction amount, said transaction amount including a sale amount and a tax amount; obtaining approval for said transaction amount from a transaction approval entity associated with said consumer for each of said transactions; allocating said tax amount to one or more taxing authorities for each of said transactions; updating a database to reflect said allocating; and transmitting a signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

26. The method according to claim 25, wherein said signal further includes a cumulative transaction amount to be collected from one or more credit entities.

27. The method according to claim 25, wherein said signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

28. The method according to claim 25, wherein said transactions are conducted through a phone network.

29. The method according to claim 25, wherein said transactions are conducted through a computer network.

30. The method according to claim 29, wherein said conducting comprises receiving credit-card information from a consumer computer.

31. The method according to claim 29, wherein said computer network is the Internet.

32. A tax collection and distribution system, comprising: means for conducting one or more transactions with consumers, each of said transactions having a transaction amount, said transaction amount including a sale amount and a tax amount; means for obtaining approval for said transaction amount from a transaction approval entity associated with said consumer for each of said transactions; means for allocating said tax amount to one or more taxing authorities for each of said transactions; means for updating a database to reflect allocation of tax amount to one or more taxing authorities for each of said transactions; and means for transmitting a signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

33. The system according to claim 32, wherein said signal further includes a cumulative transaction amount to be collected from one or more credit entities.

34. The system according to claim 32, wherein said signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

35. The system according to claim 32, wherein said transactions are conducted through a phone network.

36. The system according to claim 32, wherein said transactions are conducted through a computer network.

37. The system according to claim 36, wherein said means for conducting is adapted to receive credit-card information from a consumer computer.

38. The system according to claim 36, wherein said computer network is the Internet.

39. A program product, comprising machine readable program code for causing a machine to perform following method steps: conducting one or more transactions with consumers, each of said transactions having a transaction amount, said transaction amount including a sale amount and a tax amount; obtaining approval for said transaction amount from a transaction approval entity associated with said consumer for each of said transactions; allocating said tax amount to one or more taxing authorities for each of said transactions; updating a database to reflect said allocating; and transmitting a signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

40. The program product according to claim 39, characterized in that said signal further includes a cumulative transaction amount to be collected from one or more credit entities.

41. The program product according to claim 39, characterized in that said signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

42. The program product according to claim 39, characterized in that said transactions are conducted through a phone network.

43. The program product according to claim 39, characterized in that said transactions are conducted through a computer network.

44. The program product according to claim 43, characterized in that said conducting comprises receiving credit-card information from a consumer computer.

45. The program product according to claim 43, characterized in that said computer network is the Internet.

46. A tax collection and distribution method, comprising: receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; transmitting a second set of signals, said second set including a signal for receipt by each of one or more credit entity computers, each signal of said second set of signals including a fund transfer request; receiving a third set of signals, said third set including a signal from each of said credit entity computers, each signal of said third set of signals including a first fund transfer, said first fund transfer including a cumulative tax amount; and transmitting a fourth set of signals, said fourth set including a signal for receipt by a computer of each of said taxing authorities, each signal of said fourth set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

47. The method according to claim 46, wherein each signal of said first set of signals further includes transaction amount information for a merchant.

48. The method according to claim 47, wherein said first fund transfer further includes transaction amounts for each of said merchants and said credit entities.

49. The method according to claim 48, further comprising: transmitting a fifth set of signals, said fifth set including a signal for receipt by one of said merchant computers, each signal of said fifth set of signals including a third fund transfer, said third fund transfer including a cumulative transaction amount for a merchant.

50. A tax collection and distribution system, comprising: means for receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; means for transmitting a second set of signals, said second set including a signal for receipt by each of one or more credit entity computers, each signal of said second set of signals including a fund transfer request; means for receiving a third set of signals, said third set including a signal from each of said credit entity computers, each signal of said third set of signals including a first fund transfer, said first fund transfer including a cumulative tax amount; and means for transmitting a fourth set of signals, said fourth set including a signal for receipt by a computer of each of said taxing authorities, each signal of said fourth set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

51. The system according to claim 50, wherein each signal of said first set of signals further includes transaction amount information for a merchant.

52. The system according to claim 51, wherein said first fund transfer further includes transaction amounts for each of said merchants and said credit entities.

53. The system according to claim 52, further comprising: means for transmitting a fifth set of signals, said fifth set including a signal for receipt by one of said merchant computers, each signal of said fifth set of signals including a third fund transfer, said third fund transfer including a cumulative transaction amount for a merchant.

54. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; transmitting a second set of signals, said second set including a signal for receipt by each of one or more credit entity computers, each signal of said second set of signals including a fund transfer request; receiving a third set of signals, said third set including a signal from each of said credit entity computers, each signal of said third set of signals including a first fund transfer, said first fund transfer including a cumulative tax amount; and transmitting a fourth set of signals, said fourth set including a signal for receipt by a computer of each of said taxing authorities, each signal of said fourth set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

55. The program product according to claim 54, characterized in that each signal of said first set of signals further includes transaction amount information for a merchant.

56. The program product according to claim 55, characterized in that said first fund transfer further includes transaction amounts for each of said merchants and said credit entities.

57. The program product according to claim 56, characterized in that said program code causes a machine to further perform the following method step: transmitting a fifth set of signals, said fifth set including a signal for receipt by one of said merchant computers, each signal of said fifth set of signals including a third fund transfer, said third fund transfer including a cumulative transaction amount for a merchant.

58. A tax collection and distribution system, comprising: a signal receiving module adapted to receive a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; a signal transmitting module adapted to transmit a second set of signals, said second set including a signal for receipt by each of one or more credit entity computers, each signal of said second set of signals including a fund transfer request; said receiving module being adapted to receive a third set of signals, said third set including a signal from each of said credit entity computers, each signal of said third set of signals including a first fund transfer, said first fund transfer including a cumulative tax amount; and said transmitting module being adapted to transmit a fourth set of signals, said fourth set including a signal for receipt by a computer at each of said taxing authorities, each signal of said fourth set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

59. The system according to claim 58, wherein each signal of said first set of signals further includes transaction amount information for a merchant.

60. The system according to claim 59, wherein said first fund transfer further includes transaction amounts for each of said merchants and said credit entities.

61. The system according to claim 60, wherein: said transmitting module is adapted to transmit a fifth set of signals, said fifth set including a signal for receipt by one of said merchant computers, each signal of said fifth set of signals including a third fund transfer, said third fund transfer including a cumulative transaction amount for a merchant.

62. A tax collection and distribution method, comprising: receiving a first cash receipt signal, said first signal including a transaction amount, said transaction amount including a tax amount received from a consumer in a cash equivalent form; updating a database to reflect allocation of said tax amount to one or more taxing authorities; and transmitting a second signal for receipt by a central entity computer, said second signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

63. The method according to claim 62, wherein said second signal further includes instructions to transfer said cumulative tax amount to each of said taxing authorities.

64. The method according to claim 62, wherein said first signal is received through a computer network.

65. The method according to claim 64, wherein said computer network is the Internet.

66. The method according to claim 62, wherein said cash equivalent form is cash.

67. The method according to claim 62, wherein said cash equivalent form is electronic cash from an electronic wallet.

68. A tax collection and distribution system, comprising: means for receiving a first cash receipt signal, said first signal including a transaction amount, said transaction amount including a tax amount received from a consumer in a cash equivalent form; means for updating a database to reflect allocation of said tax amount to one or more taxing authorities; and means for transmitting a second signal for receipt by a central entity computer, said second signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

69. The system according to claim 68, wherein said second signal further includes instructions to transfer said cumulative tax amount to each of said taxing authorities.

70. The system according to claim 68, wherein said first signal is received through a computer network.

71. The system according to claim 70, wherein said computer network is the Internet.

72. The system according to claim 68, wherein said cash equivalent form is cash.

73. The system according to claim 68, wherein said cash equivalent form is electronic cash from an electronic wallet.

74. A tax collection and distribution system, comprising: a signal receiving module adapted to receive a first cash receipt signal, said first signal including a transaction amount, said transaction amount including a tax amount received from a consumer in a cash equivalent form; a database module adapted to update a database to reflect allocation of said tax amount to one or more taxing authorities; and a signal transmitting module adapted to transmit a second signal for receipt by a central entity computer, said second signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

75. The system according to claim 74, wherein said second signal further includes instructions to transfer said cumulative tax amount to each of said taxing authorities.

76. The system according to claim 74, wherein said first signal is received through a computer network.

77. The system according to claim 76, wherein said computer network is the Internet.

78. The system according to claim 74, wherein said cash equivalent form is cash.

79. The system according to claim 74, wherein said cash equivalent form is electronic cash from an electronic wallet.

80. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first cash receipt signal, said first signal including a transaction amount, said transaction amount including a tax amount received from a consumer in a cash equivalent form; updating a database to reflect allocation of said tax amount to one or more taxing authorities; and transmitting a second signal for receipt by a central entity computer, said second signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

81. The program product according to claim 80, characterized in that said second signal further includes instructions to transfer said cumulative tax amount to each of said taxing authorities.

82. The program product according to claim 80, characterized in that said first signal is received through a computer network.

83. The program product according to claim 82, characterized in that said computer network is the Internet.

84. The program product according to claim 80, characterized in that said cash equivalent form is cash.

85. The program product according to claim 80, characterized in that said cash equivalent form is electronic cash from an electronic wallet.

86. A tax collection and distribution method, comprising: conducting one or more cash equivalent transactions with consumers, each of said transactions having a transaction amount, said transaction amount including a tax amount; allocating said tax amount to one or more taxing authorities for each of said transactions; updating a database to reflect said allocating; and transmitting a signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities, said signal further including a fund transfer indicative of said cumulative tax amounts for said taxing authorities.

87. The method according to claim 86, wherein said conducting uses a computer network.

88. The method according to claim 87, wherein said computer network is the Internet.

89. The method according to claim 86, wherein said cash equivalent form is cash.

90. The method according to claim 86, wherein said cash equivalent form is electronic cash from an electronic wallet.

91. A tax collection and distribution system, comprising: means for conducting one or more cash equivalent transactions with consumers, each of said transactions having a transaction amount, said transaction amount including a tax amount; means for allocating said tax amount to one or more taxing authorities for each of said transactions; means for updating a database to reflect said allocating; and means for transmitting a signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities, said signal further including a fund transfer indicative of said cumulative tax amounts for said taxing authorities.

92. The system according to claim 91, wherein said means for conducting uses a computer network.

93. The system according to claim 92, wherein said computer network is the Internet.

94. The system according to claim 91, wherein said cash equivalent form is cash.

95. The system according to claim 91, wherein said cash equivalent form is electronic cash from an electronic wallet.

96. A program product, comprising machine readable program code for causing a machine to perform following method steps: conducting one or more cash equivalent transactions with consumers, each of said transactions having a transaction amount, said transaction amount including a tax amount; allocating said tax amount to one or more taxing authorities for each of said transactions; updating a database to reflect said allocating; and transmitting a signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities, said signal further including a fund transfer indicative of said cumulative tax amounts for said taxing authorities.

97. The program product according to claim 96, characterized in that said conducting uses a computer network.

98. The program product according to claim 97, characterized in that said computer network is the Internet.

99. The program product according to claim 96, characterized in that said cash equivalent form is cash.

100. The program product according to claim 96, characterized in that said cash equivalent form is electronic cash from an electronic wallet.

101. A tax collection and distribution method, comprising: receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; and transmitting a second set of signals, said second set including a signal for receipt by a computer of each of said taxing authorities, each signal of said second set of signals including a fund transfer, said fund transfer being representative of said tax amount allocation.

102. The method according to claim 101, wherein each signal of said first set further including another fund transfer, said another fund transfer including a cumulative tax amount.

103. A tax collection and distribution system, comprising: means for receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; and means for transmitting a second set of signals, said second set including a signal for receipt by a computer of each of said taxing authorities, each signal of said second set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

104. The system according to claim 103, wherein each signal of said first set further including another fund transfer, said another fund transfer including a cumulative tax amount.

105. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; and transmitting a second set of signals, said second set including a signal for receipt by a computer of each of said taxing authorities, each signal of said second set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

106. The program product according to claim 105, characterized in that each signal of said first set further including another fund transfer, said another fund transfer including a cumulative tax amount.

107. A tax collection and distribution system, comprising: a signal receiving module adapted to receive a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; and a signal transmitting module adapted to transmit a second set of signals, said second set including a signal for receipt by a computer of each of said taxing authorities, each signal of said second set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

108. The system according to claim 107, wherein each signal of said first set further including another fund transfer, said another fund transfer including a cumulative tax amount; and

109. A tax collection and distribution method, comprising: receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; determining an allocation of said tax amount to one or more taxing authorities; transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said sale amount and a second fund transfer to said taxing authorities pursuant to said allocation; and receiving a third signal from said computer of said bank, said third signal including said first fund transfer.

110. The method according to claim 109, wherein said first signal is received through a phone network.

111. The method according to claim 109, wherein said first signal is received through a computer network.

112. The method according to claim 111, wherein said computer network is the Internet.

113. A tax collection and distribution system, comprising: means for receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; means for determining an allocation of said tax amount to one or more taxing authorities; means for transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said sale amount and a second fund transfer to said taxing authorities pursuant to said allocation; and means for receiving a third signal from said computer of said bank, said third signal including said first fund transfer.

114. The system according to claim 113, wherein said first signal is received through a phone network.

115. The system according to claim 113, wherein said first signal is received through a computer network.

116. The system according to claim 115, wherein said computer network is the Internet.

117. A tax collection and distribution system, comprising: a receiving module adapted to receive a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; an allocation module adapted to determine an allocation of said tax amount to one or more taxing authorities; a transmitting module adapted to receive a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said sale amount and a second fund transfer to said taxing authorities pursuant to said allocation; and said receiving module being further adapted to receive a third signal from said computer of said bank, said third signal including said first fund transfer.

118. The system according to claim 117, wherein said first signal is received through a phone network.

119. The system according to claim 117, wherein said first signal is received through a computer network.

120. The system according to claim 119, wherein said computer network is the Internet.

121. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; determining an allocation of said tax amount to one or more taxing authorities; transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said sale amount and a second fund transfer to said taxing authorities pursuant to said allocation; and receiving a third signal from said computer of said bank, said third signal including said first fund transfer.

122. The program product according to claim 121, characterized in that said first signal is received through a phone network.

123. The program product according to claim 121, characterized in that said first signal is received through a computer network.

124. The program product according to claim 123, characterized in that said computer network is the Internet.

125. A tax collection and distribution method, comprising: receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; determining an allocation of said tax amount to one or more taxing authorities; updating a database to reflect said allocation; transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said transaction amount; receiving a third signal from said computer of said bank, said third signal including said first fund transfer; and transmitting a fourth signal for receipt by a central entity computer, said fourth signal including information from said database, said information being indicative of said allocation, said fourth signal further including a fund transfer associated with a cumulative tax amount.

126. The method according to claim 125, wherein said first signal is received through a phone network.

127. The method according to claim 125, wherein said first signal is received through a computer network.

128. The method according to claim 127, wherein said computer network is the Internet.

129. A tax collection and distribution system, comprising: means for receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; means for determining an allocation of said tax amount to one or more taxing authorities; means for updating a database to reflect said allocation; means for transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said transaction amount; means for receiving a third signal from said computer of said bank, said third signal including said first fund transfer; and means for transmitting a fourth signal for receipt by a central entity computer, said fourth signal including information from said database, said information being indicative of said allocation, said fourth signal further including a fund transfer associated with a cumulative tax amount.

130. The system according to claim 129, wherein said first signal is received through a phone network.

131. The system according to claim 129, wherein said first signal is received through a computer network.

132. The system according to claim 131, wherein said computer network is the Internet.

133. A tax collection and distribution system, comprising: a receiving module adapted to receive a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; an allocation module adapted to determine an allocation of said tax amount to one or more taxing authorities; a database module adapted to update a database to reflect said allocation; a transmitting module adapted to transmit a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said transaction amount; said receiving module being further adapted to receive a third signal from said computer of said bank, said third signal including said first fund transfer; and said transmitting module being further adapted to transmit a fourth signal for receipt by a central entity computer, said fourth signal including information from said database, said information being indicative of said allocation, said fourth signal further including a fund transfer associated with a cumulative tax amount.

134. The system according to claim 133, wherein said first signal is received through a phone network.

135. The system according to claim 133, wherein said first signal is received through

4 a computer network.

136. The system according to claim 135, wherein said computer network is the Internet.

137. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount; determining an allocation of said tax amount to one or more taxing authorities; updating a database to reflect said allocation; transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said transaction amount; receiving a third signal from said computer of said bank, said third signal including said first fund transfer; and transmitting a fourth signal for receipt by a central entity computer, said fourth signal including information from said database, said information being indicative of said allocation, said fourth signal further including a fund transfer associated with a cumulative tax amount.

138. The program product according to claim 137, characterized in that said first signal is received through a phone network.

139. The program product according to claim 137, characterized in that said first signal is received through a computer network.

140. The program product according to claim 139, characterized in that said computer network is the Internet.

141. A tax collection and distribution method, comprising: receiving a first set of debit account signals, each signal of said first set including account information for a consumer, a sale amount, a tax amount, and information relating to allocation of said tax amount to one or more taxing authorities; updating a database to reflect said allocation for each signal of said first set; transmitting a second set of signals, each signal of second set corresponding to one of a signal of said first set and being for receipt by a computer associated with a merchant and including a fund transfer associated with a sale amount; and transmitting a third signal for receipt by a central entity computer, said third signal including a fund transfer indicative of a cumulative tax amount, said third signal further including information from said database indicative of said allocation.

142. A tax collection and distribution system, comprising: means for receiving a first set of debit account signals, each signal of said first set includirfg account information for a consumer, a sale amount, a tax amount, and information relating to allocation of said tax amount to one or more taxing authorities; means for updating a database to reflect said allocation for each signal of said first set; means for transmitting a second set of signals, each signal of second set corresponding to one of a signal of said first set and being for receipt by a computer associated with a merchant and including a fund transfer associated with a sale amount; and means for transmitting a third signal for receipt by a central entity computer, said third signal including a fund transfer indicative of a cumulative tax amount, said third signal further including information from said database indicative of said allocation.

143. A tax collection and distribution system, comprising: a receiving module adapted to receive a first set of debit account signals, each signal of said first set including account information for a consumer, a sale amount, a tax amount, and information relating to allocation of said tax amount to one or more taxing authorities; a database module adapted to update a database to reflect said allocation for each signal of said first set; a transmitting module adapted to transmit a second set of signals, each signal of second set corresponding to one of a signal of said first set and being for receipt by a computer associated with a merchant and including a fund transfer associated with a sale amount; and said transmitting module being further adapted to transmit a third signal for receipt by a central entity computer, said third signal including a fund transfer indicative of a cumulative tax amount, said third signal further including information from said database indicative of said allocation.

144. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first set of debit account signals, each signal of said first set including account information for a consumer, a sale amount, a tax amount, and information relating to allocation of said tax amount to one or more taxing authorities; updating a database to reflect said allocation for each signal of said first set; transmitting a second set of signals, each signal of second set corresponding to one of a signal of said first set and being for receipt by a computer associated with a merchant and including a fund transfer associated with a sale amount; and transmitting a third signal for receipt by a central entity computer, said third signal including a fund transfer indicative of a cumulative tax amount, said third signal further including information from said database indicative of said allocation.

145. A tax collection and distribution method, comprising: receiving a first transaction signal, said first signal including information relating to a transaction between a customer and a merchant, said information including a transaction amount and customer information; determining an allocation of income tax amounts to one or more taxing authorities based on said transaction amount and said customer information; and transmitting a second signal for receipt by a central entity computer, said signal including said allocation.

146. The method according to claim 145, further comprising: updating a database pursuant to said determining of said allocation to reflect a total tax amount allocated to each of said taxing authorities.

147. The method according to claim 145, wherein said second signal further includes a fund transfer indicative of a cumulative tax amount.

148. The method according to claim 147, wherein said second signal further includes instructions to transfer said income tax amounts to corresponding taxing authorities pursuant to said allocation.

149. The method according to claim 145, wherein said first signal is received through a phone network.

150. The method according to claim 145, wherein said first signal is received through a computer network.

151. The method according to claim 150, wherein said computer network is the Internet.

152. A tax collection and distribution system, comprising: means for receiving a first transaction signal, said first signal including information relating to a transaction between a customer and a merchant, said information including a transaction amount and customer information; means for determining an allocation of income tax amounts to one or more taxing authorities based on said transaction amount and said customer information; and means for transmitting a second signal for receipt by a central entity computer, said signal including said allocation.

153. The system according to claim 152, further comprising: means for updating a database pursuant to said determining of said allocation to reflect a total tax amount allocated to each of said taxing authorities.

154. The system according to claim 152, wherein said second signal further includes a fund transfer indicative of a cumulative tax amount.

155. The system according to claim 154, wherein said second signal further includes instructions to transfer said income tax amounts to corresponding taxing authorities pursuant to said allocation.

156. The system according to claim 152, wherein said first signal is received through a phone network.

157. The system according to claim 152, wherein said first signal is received through a computer network.

158. The system according to claim 157, wherein said computer network is the Internet.

159. A tax collection and distribution system, comprising: a receiving module adapted to receive a first transaction signal, said first signal including information relating to a transaction between a customer and a merchant, said information including a transaction amount and customer information; an allocation module adapted to determine an allocation of income tax amounts to one or more taxing authorities based on said transaction amount and said customer information; and a transmitting module adapted to transmit a second signal for receipt by a central entity computer, said signal including said allocation.

160. The system according to claim 159, further comprising: a database module adapted to update a database pursuant to said determining of said allocation to reflect a total tax amount allocated to each of said taxing authorities.

161. The system according to claim 159, wherein said second signal further includes a fund transfer indicative of a cumulative tax amount.

162. The system according to claim 161, wherein said second signal further includes instructions to transfer said income tax amounts to corresponding taxing authorities pursuant to said allocation.

163. The system according to claim 159, wherein said first signal is received through a phone network.

164. The system according to claim 159, wherein said first signal is received through a computer network.

165. The system according to claim 164, wherein said computer network is the Internet.

166. A program product, comprising machine readable program code for causing a machine to perform following method steps: receiving a first transaction signal, said first signal including information relating to a transaction between a customer and a merchant, said information including a transaction amount and customer information; determining an allocation of income tax amounts to one or more taxing authorities based on said transaction amount and said customer information; and transmitting a second signal for receipt by a central entity computer, said signal including said allocation.

167. The program product according to claim 166, characterized in that said program code causes a machine to further perform the following method step: updating a database pursuant to said determining of said allocation to reflect a total tax amount allocated to each of said taxing authorities.

168. The program product according to claim 166, characterized in that said second signal further includes a fund transfer indicative of a cumulative tax amount.

169. The program product according to claim 168, characterized in that said second signal further includes instructions to transfer said income tax amounts to corresponding taxing authorities pursuant to said allocation.

170. The program product according to claim 166, characterized in that said first signal is received through a phone network.

171. The program product according to claim 166, characterized in that said first signal is received through a computer network.

172. The program product according to claim 171, characterized in that said computer network is the Internet.

173. A tax collection and distribution method including receiving a first credit-card signal, said first signal including credit-card information and a transaction amount, said transaction amount including a sale amount and a tax amount, transmitting a second signal for receipt by a computer of a transaction approval entity associated with said credit-card information, said second signal including a request for approval of said transaction amount, and receiving a third signal from said computer of said transaction approval entity, said third signal including an approval, characterized by: updating a database to reflect allocation of said tax amount to one or more taxing authorities, and transmitting a fourth signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

174. The method according to claim 173, characterized in that said fourth signal further includes a cumulative transaction amount to be collected from one or more credit entities.

175. The method according to claim 173, characterized in that said fourth signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

176. The method according to claim 173, characterized in that said first signal is received through a phone network.

177. The method according to claim 173, characterized in that said first signal is received through a computer network.

178. The method according to claim 177, characterized in that said computer network is the Internet.

179. A tax collection and distribution system including a signal receiving module adapted to receive a first credit-card signal, said first signal including credit-card information and a transaction amount, said transaction amount including a sale amount and a tax amount, a signal transmitting module adapted to transmit a second signal for receipt by a computer of a transaction approval entity associated with said credit-card information, said second signal including a request for approval of said transaction amount, said signal receiving module being adapted to receive a third signal from said computer of said transaction approval entity, said third signal including an approval, characterized by: a database module adapted to update a database to reflect allocation of said tax amount to one or more taxing authorities, said signal transmitting module being adapted to transmit a fourth signal for receipt by a central entity computer, said signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

180. The system according to claim 179, characterized in that said fourth signal further includes a cumulative transaction amount to be collected from one or more credit entities.

181. The system according to claim 179, characterized in that said fourth signal further includes instructions to transfer a cumulative sale amount to a merchant bank.

182. The system according to claim 179, characterized in that said receiving module is adapted to receive said first signal through a phone network.

183. The system according to claim 179, characterized in that said receiving module is adapted to receive said first signal through a computer network.

184 The system according to claim 183, characterized in that said computer network is the Internet.

185. A tax collection and distribution method, characterized by: receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; transmitting a second set of signals, said second set including a signal for receipt by each of one or more credit entity computers, each signal of said second set of signals including a fund transfer request; receiving a third set of signals, said third set including a signal from each of said credit entity computers, each signal of said third set of signals including a first fund transfer, said first fund transfer including a cumulative tax amount; and transmitting a fourth set of signals, said fourth set including a signal for receipt by a computer of each of said taxing authorities, each signal of said fourth set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

186. The method according to claim 185, characterized in that each signal of said first set of signals further includes transaction amount information for a merchant.

187. The method according to claim 186, characterized in that said first fund transfer further includes transaction amounts for each of said merchants and said credit entities.

188. The method according to claim 187, further characterized by transmitting a fifth set of signals, said fifth set including a signal for receipt by one of said merchant computers, each signal of said fifth set of signals including a third fund transfer, said third fund transfer including a cumulative transaction amount for a merchant.

189. A tax collection and distribution system, characterized by: a signal receiving module adapted to receive a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities; a signal transmitting module adapted to transmit a second set of signals, said second set including a signal for receipt by each of one or more credit entity computers, each signal of said second set of signals including a fund transfer request; said receiving module being adapted to receive a third set of signals, said third set including a signal from each of said credit entity computers, each signal of said third set of signals including a first fund transfer, said first fund transfer including a cumulative tax amount; and said transmitting module being adapted to transmit a fourth set of signals, said fourth set including a signal for receipt by a computer at each of said taxing authorities, each signal of said fourth set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

190. The system according to claim 189, characterized in that each signal of said first set of signals further includes transaction amount information for a merchant.

191. The system according to claim 190, characterized in that said first fund transfer further includes transaction amounts for each of said merchants and said credit entities.

192. The system according to claim 191, characterized in that said transmitting module is adapted to transmit a fifth set of signals, said fifth set including a signal for receipt by one of said merchant computers, each signal of said fifth set of signals including a third fund transfer, said third fund transfer including a cumulative transaction amount for a merchant.

193. A tax collection and distribution method including receiving a first cash receipt signal, said first signal including a transaction amount, said transaction amount including a tax amount received from a consumer in a cash equivalent form, characterized by: updating a database to reflect allocation of said tax amount to one or more taxing authorities, and transmitting a second signal for receipt by a central entity computer, said second signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

194. The method according to claim 193, characterized in that said second signal further includes instructions to transfer said cumulative tax amount to each of said taxing authorities.

195. The method according to claim 193, characterized in that said first signal is received through a computer network.

196. The method according to claim 195, characterized in that said computer network is the Internet.

197. The method according to claim 193, characterized in that said cash equivalent form is cash.

198. The method according to claim 193, characterized in that said cash equivalent form is electronic cash from an electronic wallet.

199. A tax collection and distribution system including a signal receiving module adapted to receive a first cash receipt signal, said first signal including a transaction amount, said transaction amount including a tax amount received from a consumer in a cash equivalent form, characterized by: a database module adapted to update a database to reflect allocation of said tax amount to one or more taxing authorities, and a signal transmitting module adapted to transmit a second signal for receipt by a central entity computer, said second signal including information from said database, said information reflecting a cumulative tax amount to be transferred to each of said taxing authorities.

200. The system according to claim 199, characterized in that said second signal further includes instructions to transfer said cumulative tax amount to each of said taxing authorities.

201. The system according to claim 199, characterized in that said first signal is received through a computer network.

202. The system according to claim 201, characterized in that said computer network is the Internet.

203. The system according to claim 199, characterized in that said cash equivalent form is cash.

204. The system according to claim 199, characterized in that said cash equivalent form is electronic cash from an electronic wallet.

205. A tax collection and distribution method, characterized by: receiving a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities, and transmitting a second set of signals, said second set including a signal for receipt by a computer of each of said taxing authorities, each signal of said second set of signals including a fund transfer, said fund transfer being representative of said tax amount allocation.

206. The method according to claim 205, characterized in that each signal of said first set further including another fund transfer, said another fund transfer including a cumulative tax amount.

207. A tax collection and distribution system, characterized by: a signal receiving module adapted to receive a first set of signals, said first set including a signal from each of one or more merchant computers, each signal of said first set of signals including information indicative of tax amount allocation for each of one or more taxing authorities, and a signal transmitting module adapted to transmit a second set of signals, said second set including a signal for receipt by a computer of each of said taxing authorities, each signal of said second set of signals including a second fund transfer, said second fund transfer being representative of said tax amount allocation.

208. The system according to claim 207, characterized in that each signal of said first set further including another fund transfer, said another fund transfer including a cumulative tax amount; and

209. A tax collection and distribution method including receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount, characterized by: determining an allocation of said tax amount to one or more taxing authorities; transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said sale amount and a second fund transfer to said taxing authorities pursuant to said allocation; and receiving a third signal from said computer of said bank, said third signal including said first fund transfer.

210. The method according to claim 209, characterized in that said first signal is received through a phone network.

211. The method according to claim 209, characterized in that said first signal is received through a computer network.

212. The method according to claim 211, characterized in that said computer network is the Internet.

213. A tax collection and distribution system including a receiving module adapted to receive a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount, characterized by: an allocation module adapted to determine an allocation of said tax amount to one or more taxing authorities; a transmitting module adapted to receive a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said sale amount and a second fund transfer to said taxing authorities pursuant to said allocation; and said, receiving module being further adapted to receive a third signal from said computer of said bank, said third signal including said first fund transfer.

214. The system according to claim 213, characterized in that said first signal is received through a phone network.

215. The system according to claim 213, characterized in that said first signal is received through a computer network.

216. The system according to claim 215, characterized in that said computer network is the Internet.

217. A tax collection and distribution method including receiving a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount, characterized by: determining an allocation of said tax amount to one or more taxing authorities; updating a database to reflect said allocation; transmitting a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said transaction amount; receiving a third signal from said computer of said bank, said third signal including said first fund transfer; and transmitting a fourth signal for receipt by a central entity computer, said fourth signal including information from said database, said information being indicative of said allocation, said fourth signal further including a fund transfer associated with a cumulative tax amount.

218. The method according to claim 217, characterized in that said first signal is received through a phone network.

219. The method according to claim 217, characterized in that said first signal is received through a computer network.

220. The method according to claim 219, characterized in that said computer network is the Internet.

221. A tax collection and distribution system including a receiving module adapted to receive a first debit account signal, said first signal including account information for a consumer and a transaction amount, said transaction amount including a sale amount and a tax amount, characterized by: an allocation module adapted to determine an allocation of said tax amount to one or more taxing authorities; a database module adapted to update a database to reflect said allocation; a transmitting module adapted to transmit a second signal for receipt by a computer of a bank associated with said account information, said second signal including a request for a first fund transfer associated with said transaction amount; said receiving module being further adapted to receive a third signal from said computer of said bank, said third signal including said first fund transfer; and said transmitting module being further adapted to transmit a fourth signal for receipt by a central entity computer, said fourth signal including information from said database, said information being indicative of said allocation, said fourth signal further including a fund transfer associated with a cumulative tax amount.

222. The system according to claim 221, characterized in that said first signal is received through a phone network.

223. The system according to claim 221, characterized in that said first signal is received through a computer network.

224. The system according to claim 223, characterized in that said computer network is the Internet.

225. A tax collection and distribution method, characterized by: receiving a first set of debit account signals, each signal of said first set including account information for a consumer, a sale amount, a tax amount, and information relating to allocation of said tax amount to one or more taxing authorities; updating a database to reflect said allocation for each signal of said first set; transmitting a second set of signals, each signal of second set corresponding to one of a signal of said first set and being for receipt by a computer associated with a merchant and including a fund transfer associated with a sale amount; and transmitting a third signal for receipt by a central entity computer, said third signal including a fund transfer indicative of a cumulative tax amount, said third signal further including information from said database indicative of said allocation.

226. A tax collection and distribution system, characterized by: a receiving module adapted to receive a first set of debit account signals, each signal of said first set including account information for a consumer, a sale amount, a tax amount, and information relating to allocation of said tax amount to one or more taxing authorities; a database module adapted to update a database to reflect said allocation for each signal of said first set; a transmitting module adapted to transmit a second set of signals, each signal of second set corresponding to one of a signal of said first set and being for receipt by a computer associated with a merchant and including a fund transfer associated with a sale amount; and said transmitting module being further adapted to transmit a third signal for receipt by a central entity computer, said third signal including a fund transfer indicative of a cumulative tax amount, said third signal further including information from said database indicative of said allocation.

227. A tax collection and distribution method including receiving a first transaction signal, said first signal including information relating to a transaction between a customer and a merchant, said information including a transaction amount and customer information, characterized by: determining an allocation of income tax amounts to one or more taxing authorities based on said transaction amount and said customer information, and transmitting a second signal for receipt by a central entity computer, said signal including said allocation.

228. The method according to claim 227, further characterized by: updating a database pursuant to said determining of said allocation to reflect a total tax amount allocated to each of said taxing authorities.

229. The method according to claim 227, characterized in that said second signal further includes a fund transfer indicative of a cumulative tax amount.

230. The method according to claim 229, characterized in that said second signal further includes instructions to transfer said income tax amounts to corresponding taxing authorities pursuant to said allocation.

231. The method according to claim 227, characterized in that said first signal is received through a phone network.

232. The method according to claim 227, characterized in that said first signal is received through a computer network.

233. The method according to claim 232, characterized in that said computer network is the Internet.

234. A tax collection and distribution system including a receiving module adapted to receive a first transaction signal, said first signal including information relating to a transaction between a customer and a merchant, said information including a transaction amount and customer information, characterized by: an allocation module adapted to determine an allocation of income tax amounts to one or more taxing authorities based on said transaction amount and said customer information, and a transmitting module adapted to transmit a second signal for receipt by a central entity computer, said signal including said allocation.

235. The system according to claim 234, further characterized by: a database module adapted to update a database pursuant to said determining of said allocation to reflect a total tax amount allocated to each of said taxing authorities.

236. The system according to claim 234, characterized in that said second signal further includes a fund transfer indicative of a cumulative tax amount.

237. The system according to claim 236, characterized in that said second signal further includes instructions to transfer said income tax amounts to corresponding taxing authorities pursuant to said allocation.

238. The system according to claim 234, characterized in that said first signal is received through a phone network.

239. The system according to claim 234, characterized in that said first signal is received through a computer network.

240. The system according to claim 239, characterized in that said computer network is the Internet.