Credit extension process using a prepaid card
First Claim
1. An automated method of authorizing a consumer purchase comprising the steps of:
- receiving a first deposit transaction depositing funds within a first account;
determining a first credit limit associated with the first account wherein the first credit limit is based upon account information associated with the first account;
receiving a request for authorization of a purchase transaction associated with the first account;
authorizing the purchase transaction if funds within the first account plus the first credit limit are to sufficient to facilitate the purchase transaction;
determining a loan amount in response to an amount of the first credit limit utilized for said step of authorizing;
granting a loan in response to the loan amount;
receiving a subsequent deposit transaction having additional funds associated with the first account;
applying a loan repayment portion of the additional funds to at least partial repayment of the loan and transferring a remaining portion of the additional funds to the first account; and
generating credit information indicative of the loan granting and loan repayment.
3 Assignments
0 Petitions
Accused Products
Abstract
A process determines whether a prepaid card customer is credit worthy by analyzing deposits and purchases transactions associated with the account of the customer. Credit is advanced on prepaid card purchases in response to the determination of creditworthiness. Prepaid card credit granting and repayment is made available other financial institutions for the establishment of more conventional credit. The prepaid card customer creditworthiness determination includes deposits and transactions made while the person was an anonymous prepaid card user. The process includes fraud and theft prevention measures including validation of the anonymous transactions using a biological identification such as a finger print or retinal scan or by validation of anonymous and non-anonymous deposit and purchase profiles. Alternatively, prepaid card credit can be granted even if the customer is anonymous and has not provided a validated name and other personal and/or financial information.
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Citations
54 Claims
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1. An automated method of authorizing a consumer purchase comprising the steps of:
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receiving a first deposit transaction depositing funds within a first account;
determining a first credit limit associated with the first account wherein the first credit limit is based upon account information associated with the first account;
receiving a request for authorization of a purchase transaction associated with the first account;
authorizing the purchase transaction if funds within the first account plus the first credit limit are to sufficient to facilitate the purchase transaction;
determining a loan amount in response to an amount of the first credit limit utilized for said step of authorizing;
granting a loan in response to the loan amount;
receiving a subsequent deposit transaction having additional funds associated with the first account;
applying a loan repayment portion of the additional funds to at least partial repayment of the loan and transferring a remaining portion of the additional funds to the first account; and
generating credit information indicative of the loan granting and loan repayment. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 48, 49, 50, 51, 52, 53, 54)
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17. An automated method of authorizing a purchase transaction comprising the steps of:
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receiving a plurality of deposits of funds associated with an account;
receiving a request for authorization of a purchase transaction associated with the account from a point of sale; and
authorizing the purchase transaction if the account has sufficient funds to facilitate the purchase transaction;
orauthorizing the purchase transaction if the account has insufficient funds to facilitate the purchase transaction, and upon determining that the plurality of deposits satisfy a predetermined criterion;
orotherwise not authorizing the purchase transaction.
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36. A method of determining a credit limit comprising the steps of:
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receiving a plurality of deposits associated with an account;
determining a number, frequency and magnitude of the deposits; and
assigning a credit limit for the account in response to said step of determining.
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47. A method of determining a credit limit for an account comprising the steps of:
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receiving a plurality of transaction requests having transaction information related to characteristics of each of a plurality of points of sale associated with the account;
authorizing each transaction request in response to sufficient funds being associated with the account;
associating a quality factor to each of the plurality of points of sale in response to the characteristics; and
assigning the credit limit for the account in response to the quality factors of each of the plurality of points of sale.
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Specification