System and method for automatically adjudicating transactions involving an account reserved for qualified spending

• US 20040249745A1
• Filed: 06/06/2003
• Published: 12/09/2004
• Est. Priority Date: 06/06/2003
• Status: Abandoned Application

• Current Assignee: SmartFlex LLC (WEX Inc.)
• Original Assignee: SmartFlex LLC (WEX Inc.)
• Inventors: Baaren, Sharon A. Van
• Application Number:
  US10/456,048
• Publication Number:
  US 20040249745A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system and method for processing employee benefits plans is disclosed. A transaction made for purchasing products or services under employee benefits plan is automatically detected. For example, an electronic card may be used to make the purchase, wherein the transaction data is transmitted over a network. A participant is allowed to set up a pre-tax account as well as a post-tax account from which to fund the participant'"'"'s spending expenses. By auditing the transaction and receipts associated with the transaction, a determination is made as to whether the transaction qualifies under the benefits plan and therefore, is an eligible transaction. If the transaction is not eligible for payment, a notification is sent to the participant to pay back the money. The money may be paid back using an online link provided.

Claims

1. A method of processing transactions involving an account reserved for qualified spending, comprising:

automatically receiving transaction data associated with a purchase to be paid from an account reserved for qualified spending;

determining whether the purchase is a qualified transaction for which payment can be made from the account, the determining including at least automatically determining that the purchase is a qualified transaction if a merchant code from which the purchase is made matches a predetermined automatic adjudication merchant code and an amount of the purchase matches a predetermined automatic adjudication amount; and

requesting a refund if it is determined that the purchase is not a qualified transaction.

2. The method of claim 1, further including:

sending a request for a receipt associated with the purchase, if the receipt has not been received; and

the step of determining includes verifying whether the purchase is a qualified transaction by auditing the receipt if the receipt is received.

3. The method of claim 1, further including:

requesting for the receipt periodically until the receipt is received.

4. The method of claim 1, further including:

requesting for the refund periodically until the refund is received.

5. The method of claim 1, further including:

providing a post-tax account from which an amount of money for the purchase may be deducted if the account does not have a sufficient amount for the purchase.

6. The method of claim 5, wherein the post-tax account includes post-tax contributions.

7. The method of claim 5, wherein the post-tax account includes an amount approved on a credit card.

8. The method of claim 5, wherein if the post-tax account has insufficient funds to cover the purchase, no amount is taken out from the post-tax account.

9. The method of claim 1, further including:

allowing a user to connect to a web site for making payments.

10. The method of claim 9, wherein the allowing includes sending a URL request for a website through which the user can make a payment.

11. The method of claim 10, wherein the user can make the payment using a credit card.

12. The method of claim 1, further including:

allowing automatic disabling of all accounts for all users under a particular plan service provider.

13. The method of claim 1, further including:

allowing automatic disabling of all accounts for all users under a particular employer.

14. The method of claim 1, further including:

allowing automatic disabling of all accounts for all users under a particular participant.

15. The method of claim 1, further including:

checking a merchant category code before the purchase is authorized.

16. The method of claim 15, further including:

allowing one or more purchases to be made from a merchant without the one or more valid merchant category codes if a predetermined condition is met.

17. The method of claim 16, wherein the predetermined condition includes a condition that the merchant has been approved.

18. The method of claim 1, further including:

providing one or more reasons for disqualifying the transaction.

19. The method of claim 1, further including:

checking a merchant category code before the purchase is authorized.

20. The method of claim 1, further including:

checking whether an account has sufficient funds for the purchase before the purchase is authorized.

21. The method of claim 1, further including:

receiving an amount of adjustment in an account made due to a manual payment; and

updating an account balance by the amount.

22. The method of claim 1, further including:

transmitting an amount of adjustment made due to direct payment from the account, wherein a PSP processing manual payments receives the amount and updates an account balance by the amount.

23. The method of claim 1, further including:

blocking the account if the receipt is not received within a predetermined amount of time.

24. The method of claim 1, further including:

blocking the account if the refund is not received within a predetermined amount of time.

25. The method of claim 1, wherein the purchase is made by using an electronic card issued to a participant.

26. A method of processing transactions involving an account reserved for qualified spending, comprising:

automatically receiving transaction data associated with a purchase to be paid from an account reserved for qualified spending; and

determining whether the purchase is a qualified transaction for which payment can be made from the account, the determining including at least automatically determining that the purchase is a qualified transaction if a merchant code from which the purchase is made matches a predetermined automatic adjudication merchant code and an amount of the purchase matches a predetermined automatic adjudication amount.

27. A program storage device readable by machine, tangibly embodying a program of instructions executable by the machine to perform method steps of processing transactions involving an account reserved for qualified spending, comprising:

automatically receiving transaction data associated with a purchase to be paid from an account reserved for qualified spending;

determining whether the purchase is a qualified transaction for which payment can be made from the account, the determining including at least automatically determining that the purchase is a qualified transaction if a merchant code from which the purchase is made matches a predetermined automatic adjudication merchant code and an amount of the purchase matches a predetermined automatic adjudication amount; and

requesting a refund if it is determined that the purchase is not a qualified transaction.

28. The program storage device of claim 27, further including:

sending a request for a receipt associated with the purchase, if the receipt has not been received; and

the step of determining includes verifying whether the purchase is a qualified transaction by auditing the receipt if the receipt is received.

29. The program storage device of claim 27, further including:

providing a post-tax account from which an amount of money for the purchase can be deducted if the account does not have a sufficient amount for the purchase.

30. The program storage device of claim 27, wherein the determining includes automatically determining that the purchase is a qualified transaction if a merchant code from which the purchase is made matches a predetermined automatic adjudication merchant code and an amount of the purchase matches a predetermined automatic adjudication amount.

31. The program storage device of claim 27, further including:

transmitting an amount of adjustment made due to direct payment from the account, wherein a PSP processing manual payments receives the amount and updates an account balance by the amount.

32. The program storage device of claim 27, further including:

receiving an amount of adjustment in an account made as a result of a manual payment; and

updating an account balance by the amount.

33. A system for processing transactions involving an account reserved for qualified spending, comprising:

a module in response to receiving transaction data associated with a purchase for which a payment is to be made from an account reserved for qualified spending, operable to determine whether the purchase is a qualified purchase, the module further operable to automatically determine that the purchase is a qualified transaction if a merchant code from which the purchase is made matches a predetermined automatic adjudication merchant code and an amount of the purchase matches a predetermined automatic adjudication amount, and if it is determined that the purchase is not a qualified purchase, the module being operable to request a refund for the payment made from the account.

34. The system of claim 33, wherein the module is further operable to connect to a website for allowing a user to make a refund payment.

35. The system of claim 33, wherein the module maintains a pre-tax account and a post-tax account from where payments for the purchase can be made.

36. The system of claim 33, wherein the module is further operable to automatically determine that the purchase is a qualified transaction if a merchant code from which the purchase is made matches a predetermined automatic adjudication merchant code and an amount of the purchase matches a predetermined automatic adjudication amount.

37. A method of processing transactions involving an account reserved for qualified spending, comprising:

automatically receiving transaction data associated with a purchase to be paid from an account reserved for qualified spending;

providing a post-tax account from which an amount of money for the purchase may be deducted if the account does not have a sufficient amount for the purchase;

determining whether the purchase is a qualified transaction for which payment can be made from the account; and

requesting a refund if it is determined that the purchase is not a qualified transaction.