System and method for establishing or modifying an account with user selectable terms

• US 20030101131A1
• Filed: 10/31/2002
• Published: 05/29/2003
• Est. Priority Date: 11/01/2001
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Witsil, Kathleen H., Strock, Bradley R., Fredman, Marc L., Barrett, Donna M., Dowidchuck, Katrina, Warren, Mary Carter, Schmitt, Donald H., Blossom, George W., Ehemann, Karen R., Filak, Douglas A., Jacobs, Ron E., Hoechst, Kimberly L., Steckart, James C.
• Granted Patent: US 7,689,504 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass

Abstract

The present invention relates to methods for allowing an account holder to easily customize the terms of an account such as a loan account, an asset account, a mortgage account, an insurance account, or a brokerage account. Exemplary embodiments of the invention allow the user to specify various preferred terms such as cost (e.g., APR and annual fee), rewards programs, card design, affiliates, credit line, and payment due date, among others. The financial service provider issuing the account, e.g., the issuing bank, may make the various available terms for the account easily accessible to the user, for example through an internet website or an automated phone system, enabling the user to easily specify his or her preferences. The customization methods may be applied to the process of opening a new account or customizing an existing account. The customization methods may dynamically update the available terms as the user begins to select his or her desired terms.

Claims

1. A method of modifying an existing account comprising the steps of:

receiving account identification information from an account holder;

sending to the account holder at least a portion of the existing account terms;

sending to the account holder a plurality of available account terms; and

receiving from the account holder a selection of at least one of the available account terms.

2. The method of claim 1, further comprising the steps of:

modifying the plurality of available account terms based on the selection received from the account holder; and

sending the modified available account terms to the account holder.

3. The method of claim 2, further comprising the step of matching the user'"'"'s selection to a predefined account.

4. The method of claim 1, wherein the plurality of available account terms are grouped into a plurality of categories of account terms.

5. The method of claim 3, wherein the plurality of categories includes a first category comprising interest rate and a second category comprising credit limit.

6. The method of claim 3, wherein one of the plurality of categories comprises payment due date.

7. The method of claim 3, wherein one of the plurality of categories comprises card design.

8. The method of claim 3, wherein one of the plurality of categories comprises rewards program.

9. The method of claim 4, wherein the plurality of categories of account terms are arranged in a menu system.

10. The method of claim 1, wherein the account is a secured loan account.

11. The method of claim 1, wherein the account is an unsecured loan account.

12. The method of claim 1, wherein the account is an asset account.

13. The method of claim 1, wherein the available account terms are based in part on the credit history of the user.

14. A method of providing an account to a user comprising the steps of:

sending to the user a plurality of available account terms, wherein the plurality of available account terms are categorized into a plurality of categories of account terms;

receiving from the user a selection of at least one of the available account terms; and

providing the account based on the user'"'"'s selection.

15. The method of claim 14, wherein the plurality of categories includes a first category comprising interest rate and a second category comprising credit limit.

16. The method of claim 14, wherein one of the plurality of categories comprises account cost.

17. The method of claim 14, wherein one of the plurality of categories comprises account servicing terms including payment due date.

18. The method of claim 14, wherein one of the plurality of categories comprises account services.

19. The method of claim 14, wherein one of the plurality of categories comprises card design.

20. The method of claim 14, wherein one of the plurality of categories comprises rewards program.

21. The method of claim 14, wherein one of the plurality of categories comprises affiliates.

22. The method of claim 14, wherein the plurality of available account terms are presented to the user as a menu of categories of account terms.

23. The method of claim 14, wherein the account is an existing account of the user.

24. The method of claim 14, wherein the account is a new account for the user.

25. The method of claim 14, further comprising the step of determining the plurality of available account terms based at least in part on information about the user.

26. The method of claim 14, wherein at least one of the categories includes a plurality of subcategories of account terms.

27. The method of claim 14, wherein the step of providing the account comprises matching the user'"'"'s selection to a predefined account.

28. The method of claim 14, wherein the plurality of available account terms includes at least two terms specifying different methods of payment.

29. The method of claim 14, wherein the plurality of available account terms includes at least two terms specifying formats of an account statement.

30. The method of claim 14, wherein the sending step is carried out over the Internet.

31. The method of claim 14, wherein the sending step is carried out with a telephone.

32. The method of claim 14, wherein the sending step is carried out in person.

33. The method of claim 14, wherein the sending step is carried out by mail.

34. The method of claim 14, further comprising the step of saving the user'"'"'s selection in a database before the user has finished making selections.

35. The method of claim 34, further comprising the step of receiving from the user an alphanumeric identifier for labeling the user'"'"'s selection to enable the user to retrieve the user'"'"'s selection at a later time.

36. The method of claim 14, further comprising the step of receiving from the user a request to provide more detailed information on one of the plurality of available account terms.

37. A method for providing an account to a user, the account being defined by a plurality of account terms, the method comprising the steps of:

identifying a recommended account;

sending to the user a description of at least some of the account terms of the recommended account;

sending to the user at least one available account term which is different from any of the account terms of the recommended account;

receiving from the user a selection of one or more of the at least one available account term; and

providing the account to the user based on the selection.

38. The method of claim 37, wherein the step of identifying a recommended account comprises identifying one or more most popular accounts.

39. The method of claim 37, wherein the step of identifying a recommended account comprises:

sending the user at least one question; and

identifying the recommended account based on the user'"'"'s response to the at least one question.

40. The method of claim 39, wherein the at least one question relates to the user'"'"'s most preferred term or terms.

41. The method of claim 37, wherein the step of providing the account comprises matching the user'"'"'s selection to a predefined account.

42. The method of claim 37, wherein the step of sending to the user at least one available account term comprises sending a plurality of categories of available account terms.

43. A method of providing an account to a user, the account being defined by a plurality of account terms, the method comprising the steps of:

(a) sending the user a description of a plurality of available account terms for the account, the available account terms being categorized into a plurality of categories of account terms;

(b) receiving from the user a selection of at least one of the available account terms;

(c) allowing the user to accept the account before the user selects an account term in each category;

(d) selecting account terms for the user in those categories in which the user has not selected account terms; and

(e) providing the account based on the selection received from the user in step (b) and the account terms selected in step (d).

44. The method of claim 43, wherein the account is an existing account of the user.

45. The method of claim 43, wherein the account is a new account for the user.

46. The method of claim 43, wherein the step (e) of providing the account comprises matching the selection received from the user in step (b) and the account terms selected in step (d) to a predefined account.

47. The method of claim 43, wherein the plurality of categories includes a first category comprising interest rate and a second category comprising credit limit.

48. A method of defining an account for a user, the account being defined by a plurality of account terms, the method comprising the steps of:

(a) sending the user a first plurality of available account terms;

(b) receiving from the user a first selection of one of the first plurality of available account terms;

(c) repeating steps (a) and (b) for at least a second plurality of available account terms; and

(d) matching the user'"'"'s selections to one of a plurality of predefined accounts.

49. The method of claim 48, wherein the first plurality of account terms comprise terms in a first category, and the second plurality of account terms comprise terms in a second category.

50. The method of claim 49, wherein the first category comprises interest rate.

51. The method of claim 50, wherein the second category comprises rewards program.

52. The method of claim 51, wherein the method further comprises repeating steps (a) and (b) for at least a third plurality of available account terms comprising card design.

53. The method of claim 48, further comprising the step of displaying on a computer screen the available terms in a category of available account terms to enable the user to compare the available terms to each other.

54. The method of claim 48, further comprising the step of providing a website address to the user to allow the user to access a website which defines the account for the user.

55. A method of selecting an account, the account being defined by a plurality of account terms, the method comprising the steps of:

(a) sending to the user a plurality of categories of account terms;

(b) receiving a selection from the user of a first one of the categories;

(c) sending to the user a plurality of available account terms for the selected category;

(d) receiving from the user a selection of an available account term in the selected category;

(e) repeating steps (b), (c), and (d) for at least a second category; and

(f) matching the user'"'"'s selections to a predefined account.

56. The method of claim 55, wherein the first category comprises interest rate.

57. The method of claim 55, wherein the first category comprises rewards program.

58. The method of claim 55, wherein the first category comprises affiliate.

59. The method of claim 55, further comprising the step of simultaneously displaying the available account terms for the selected category to enable the user to compare the available account terms within the selected category.

60. The method of claim 55, further comprising the step of sending the user a plurality of subcategories for a selected category.

61. The method of claim 55, further comprising the step of simultaneously displaying the available account terms for at least two accounts to enable the user to compare the available accounts.

62. The method of claim 55, further comprising the step of displaying the terms of the predefined account, including an interest rate and an annual fee.

63. A method of selecting an account, the account being defined by a plurality of account terms, the method comprising the steps of:

receiving from the user an indication of a type of account term which the user would like to select;

in response to the indication, sending the user a plurality of available account terms of the type indicated by the user;

receiving from the user a selection of an available account term; and

defining the account at least in part based on the user'"'"'s selection.

64. The method of claim 63, wherein the user provides the indication by entering at least one keyword for an electronic search.

65. A method of configuring an account between an account provider and a user comprising the steps of:

maintaining a list of affiliates associated with the account provider, wherein each affiliate has arranged with the account provider to receive compensation from the account provider based on usage of the account;

receiving from the user a selection of at least two of the affiliates to be affiliated with the account; and

configuring the account such that the selected at least two affiliates are affiliated with the account.

66. The method of claim 65, further comprising the step of sending the user a fee associated with each affiliate if there is a fee associated with the affiliate.

67. The method of claim 65, further comprising the step of sending to the user a plurality of available account terms other than affiliates.

68. The method of claim 67, further comprising the step of categorizing the plurality of available account terms.

69. The method of claim 67, wherein the plurality of available account terms are based in part on a creditworthiness of the user.

70. The method of claim 65, wherein the configured account is a new account for the user.

71. The method of claim 65, wherein the configured account is a modification of an existing account held by the user.

72. The method of claim 65, further comprising the steps of:

sending at least two card design options to the user; and

receiving from the user a selected card design.

73. The method of claim 65, further comprising the steps of:

receiving transaction data for the account;

assigning benefits to the account based on the transaction data;

receiving a benefits request from the user; and

arranging to have the benefits provided by the affiliate.

74. The method of claim 73, wherein the arranging step comprises arranging to have the benefits provided automatically after the user has reached a predetermined event in usage of the account.

75. The method of claim 65, further comprising the step of determining whether each of the selected at least two affiliates has indicated that the other is unacceptable for the account.

76. The method of claim 65, further comprising the step of assigning the benefits to the account based on an amount of interest paid by the user.

77. The method of claim 65, further comprising the step of assigning the benefits to the account based on a balance of the account.

78. The method of claim 65, further comprising the step of assigning the benefits to the account based on establishment of the account.

79. A method comprising the steps of:

recording a value of at least one parameter of an account held by an account holder;

allocating account points the account holder based on the value;

receiving a request from the account holder to convert at least a portion of the account points to affiliate points provided by an affiliate of the account specified by the account holder; and

converting said at least a portion of the account points to the affiliate points provided by the affiliate.

80. The method of claim 79, wherein the at least one parameter comprises an amount of total transactions for the account over a predetermined time period.

81. The method of claim 79, wherein the at least one parameter comprises an average account balance of the account over a predetermined time period.

82. The method of claim 79, wherein the account is a credit card account, and the method further comprises the step of allocating account points for payment in full of a monthly balance.

83. The method of claim 79, wherein the account is a credit card account, and the method further comprises the step of deducting account points in lieu of applying a service charge to the account.

84. The method of claim 79, further comprising the step of converting at least of portion of the affiliate points into the account points.

85. A method comprising the steps of:

sending to a user an offer to provide a defined number of points associated with an account in exchange for a commitment from the user to use the account by a defined amount within a defined time period, the points being redeemable for compensation;

receiving from the user the commitment to use the account by the defined amount within the defined time period; and

crediting the user'"'"'s account with the defined number of points.

86. The method of claim 85, wherein the points are immediately redeemable by the user, and the defined number of points is sufficient to allow the user to redeem the points for lodging and transportation.

87. The method of claim 85, wherein the compensation is provided by one or more affiliates of the account.

88. A method of controlling a credit limit on a credit card account comprising the steps of:

receiving from the user a first credit limit which is applicable to transactions executed by the user with the credit card defined by a first transaction characteristic;

receiving from the user a second credit limit which is applicable to transactions executed by the user with the credit card defined by a second transaction characteristic; and

controlling transactions of the user based on the first credit limit and the second credit limit.

89. The method of claim 88, wherein the first and second transaction characteristics include at least one of:

a type of purchased product, a time period, a seller, and a location of sale.

90. The method of claim 88, wherein the first transaction characteristic is a first category of products, and the second transaction characteristic is a second category of products.

91. The method of claim 88, wherein the first transaction characteristic is a first category of sellers, and the second transaction characteristic is a second category of sellers.

92. The method of claim 88, wherein the first transaction characteristic is a first geographical region, and the second transaction characteristic is a second geographical region.

93. The method of claim 88, wherein the first transaction characteristic is a first time period, and the second transaction characteristic is a second time period.

94. A method comprising the steps of:

electronically receiving data from a credit card transaction processing entity relating to a transaction immediately subsequent to completion of the transaction; and

sending the data electronically to a device operated by a party to the transaction immediately subsequent to receiving the data.

95. The method of claim 94, wherein the steps of electronically receiving and sending are carried out via the Internet.

96. The method of claim 94, wherein the steps of electronically receiving and sending are carried out at least in part via a public switched telephone network.

97. The method of claim 94, wherein the steps of electronically receiving and sending are carried out, at least in part, via a wireless communications system.

98. The method of claim 94, further comprising the step of receiving from the party a preference as to where to send the data.

99. The method of claim 94, wherein the step of sending the data electronically to a device comprises sending the data to at least one of:

a computer, a mobile phone, a personal digital assistant, a pager, a telephone, and a card display.

100. A method of providing an account for a user comprising the steps of:

arranging to have a first entity provide rewards to the user under a rewards program based on usage of the account;

arranging to have a second entity, different from the first entity, affiliated with the account; and

receiving from the user an indication of acceptance of the account, which account includes the rewards program and the affiliation with the second entity.

101. The method of claim 100, wherein the first entity is an airline.

102. The method of claim 100, wherein the first entity is a hotel.

103. The method of claim 100, wherein the second entity receives compensation based on usage of the account by the user.

104. The method of claim 100, wherein the second entity is a college or university.

105. The method of claim 100, wherein the second entity is a professional association.

106. The method of claim 100, wherein the second entity is a charity.

107. The method of claim 100, wherein the first entity is an airline, and the second entity is a university or college.

108. The method of claim 100, wherein the account is a new account.

109. The method of claim 100, wherein the account is an existing account.

110. The method of claim 100, wherein the account is a credit card account, and the method further comprises the step of displaying a representation of the second entity on a front face of the card.

111. A method of providing an account to a user comprising the steps of:

sending the user a set of available terms for the account;

sending the user an associated fee for each of the available terms having an associated fee;

receiving from the user a selection of at least one of the available terms; and

determining a periodic fee of the account based on the user'"'"'s selected terms.

112. The method of claim 111, wherein the account is an existing account, and the user is an account holder of the existing account.

113. The method of claim 111, wherein the account is a new account.

114. The method of claim 111, further comprising the step of receiving from the user a rejection of one of the available terms.

115. The method of claim 111, further comprising the step of matching the user'"'"'s selection to a predefined account.

116. The method of claim 111, further comprising the step of categorizing the set of available terms for the account.

117. The method of claim 116, wherein a category comprises credit limit.

118. The method of claim 111, wherein the account is a loan account.

119. The method of claim 111, wherein the account is an asset account.

120. The method of claim 111, wherein the available terms for the account are based in part on the credit history of the user.

121. The method of claim 120, wherein a user with a higher credit risk is sent a higher cost than a user with a lower credit risk.

122. The method of claim 121, further comprising the step of categorizing the user into one of a number of population segments, wherein each population segment has an associated credit risk.

123. A method of providing a credit account to a user comprising the steps of:

(a) receiving from the user a maximum periodic fee value;

(b) sending the user a set of available terms for the credit account which are available based on the maximum periodic fee value;

(c) receiving from the user a selected term from the set of available terms;

(d) sending to the user an updated set of available terms for the credit account based on the selected term; and

(e) receiving from the user an indication of acceptance of the credit account.

124. The method of claim 123, further comprising the step of indicating an unavailability of at least one term based on the maximum periodic fee value.

125. The method of claim 123, wherein one term in the set of available terms comprises an interest rate.

126. The method of claim 123, wherein one term in the set of available terms comprises a credit limit.

127. The method of claim 123, wherein one term in the set of available terms comprises an affiliate.

128. The method of claim 123, wherein one term in the set of available terms comprises a rewards program.

129. The method of claim 123, wherein one term in the set of available terms comprises a credit card type.

130. The method of claim 123, wherein the account accepted by the user is a modification of an existing account held by the user.

131. The method of claim 123, wherein the account accepted by the user is a new account.

132. The method of claim 123, further comprising the step of categorizing the set of available terms sent to the user.

133. The method of claim 123, wherein the credit account accepted by the user is a predefined account.

134. The method of claim 123, wherein the available terms for the credit account are based in part on a credit history of the user.

135. The method of claim 123, further comprising the step of providing the user a lower interest rate if the user has at least a second account with a specified account provider.

136. The method of claim 123, wherein one of the available terms is an interest rate which varies as a function of the extent of usage of the account.

137. A method of providing a credit account to a user comprising the steps of:

sending to the user a set of available terms for the credit account;

receiving from the user a first cost term for the credit account;

calculating a second cost term based on the first cost term; and

sending the second cost term to the user.

138. The method of claim 137, wherein the first cost term comprises a periodic fee, and the second cost term comprises an interest rate.

139. The method of claim 137, wherein the first cost term comprises an interest rate, and the second cost term comprises a periodic fee.

140. The method of claim 137, further comprising the step of categorizing the set of available terms for the credit account.

141. The method of claim 140, wherein a first category comprises credit limit and a second category comprises rewards program.

142. The method of claim 137, wherein the calculation of the second cost term is also based in part on terms of the account in addition to the first cost term.

143. The method of claim 137, wherein the available account terms are based in part on a credit history of the user.

144. A method of providing a credit card account to a user comprising the steps of:

sending to the user a plurality of combinations of (a) a periodic fee amount, and (b) an interest rate; and

receiving from the user a selected combination of the (a) periodic fee amount and (b) interest rate.

145. The method of claim 144, wherein the steps of sending and receiving are carried out via the Internet.

146. The method of claim 144, further comprising the step of receiving from the user at least one of a user selected credit line, an affiliate, and a rewards program.

147. A method of defining an account for a user, the account being defined by a plurality of account terms, the method comprising the steps of:

sending to the user a plurality of available account terms;

receiving from the user a selection of at least one of the available account terms;

displaying at least a portion of the account terms, including the user'"'"'s selection of the at least one available account term;

displaying corresponding account terms for a second account to enable comparison of the account terms for the account with the account terms for the second account.

148. The method of claim 147, further comprising the step of receiving from the user a selection of at least one available account term for the second account.

149. The method of claim 147, wherein the second account is a most popular account among a number of accounts provided by an account provider.

150. The method of claim 147, further comprising the step of matching the user'"'"'s selection to a predefined account.

151. The method of claim 147, further comprising the step of categorizing the plurality of available account terms.

152. A method of defining an account for a user, the account being defined by a plurality of account terms, the method comprising the steps of:

(a) sending the user a plurality of available account terms to enable simultaneous display of the available account terms for comparison of the available account terms;

(b) receiving a selection from the user of one of the available account terms; and

(c) matching the user'"'"'s selection to a predefined account.

153. The method of claim 152, further comprising the step of:

(d) repeating steps (a) and (b) for at least a second plurality of available account terms.

154. The method of claim 152, further comprising the step of categorizing the plurality of available account terms, wherein a first category comprises interest rate and a second category comprises credit limit.