System and method for card processing with automated payment of club, merchant, and service provider fees

• US 20050154663A1
• Filed: 02/07/2005
• Published: 07/14/2005
• Est. Priority Date: 06/04/1999
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: First USA Bank N.A. (JP Morgan Chase & Co)
• Inventors: Boyle, Kevin, Maistre, Marty
• Granted Patent: US 7,499,887 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06K 5/00 Methods or arrangements for verifying the correctness of markings on a record carrier; Column detection devices
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/34 using cards, e.g. integrated circuit [IC] cards or magnetic cards
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• 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
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

An apparatus and methods for a card that allows a cardholder to set up auto-charge payment of dues and fees to a series of clubs, merchants or service providers. The card also may be used for other transactions that accept credit cards. The apparatus includes a database containing information of the associated clubs, merchants and service providers, so that applicants and cardholders can easily configure auto-charging for multiple business concerns in one sitting. The apparatus may process auto-charge transactions in an automated fashion without requiring a cardholder to submit payment authorization or the business concern to submit a charge for each payment. Inconvenience and administrative costs to the cardholder and the business concern are reduced. The system and method provide a competitive advantage to the associated business concerns to secure the initial account and then to maintain it. The system and method encourages card loyalty of both the card members and the business concerns to the card provider.

Claims

1-25. -25. (canceled)

26. A card processing system for allowing cardholders to automatically charge fees to clubs, merchants or service providers, comprising:

means for issuing credit cards capable of point-of-sale transactions to be posed on a cardholder'"'"'s account;

a card issuer database having information that associates individual cardholders with a plurality of clubs, merchants, or service providers for which auto-charge transactions are performed by the card issuer;

said auto-charge transactions being performed without requiring, for each auto-charge, a cardholder to submit payment authorization or the club, merchant, or service provider to submit a payment transaction request;

the card issuer database accessible by the card issuer to allow at least one of existing cardholders and cardholder applicants to choose clubs, merchants or service providers, to be associated with that cardholder and to enable said auto-charging function for the selected clubs, merchants, or service providers;

a card processor for performing the auto-charge transactions which are for payments owed by the cardholder to selected clubs, merchants, or service providers in consideration for services or goods;

the card processor accessing the card issuer database to perform the auto-charge transactions;

the auto-charge transactions resulting in funds being charged to the cardholder'"'"'s credit account and funds being credited to an account of a third party other than the cardholder, the third party comprising one or more selected clubs, merchants, and service providers.

27. The card processing system of claim 26, further comprising:

an interface to the card issuer database which presents a series of available clubs, merchants, or service providers from which the cardholder or cardholder applicant can select specific ones of the available clubs, merchants, or service providers.

28. The card processing system of claim 27, wherein said interface further permits the cardholder or cardholder applicant to choose and have entered into the card issuer database clubs, merchants, or service providers other than those presented as available.

29. The card processing system of claim 27, wherein the interface is accessible to a third party other than the card issuer comprising a partner to the card issuer, the partner comprising a military organization, a university, or a college.

30. The card processing system of claim 29, wherein the card issuer can control the access of the partner to the card issuer database such that the partner can access only selected information.

31. The card processing system of claim 30, wherein the card issuer controls access to the card issuer database for multiple partners, each partner having access to its particular selected information.

32. The card processing system of claim 27, wherein the series of available clubs, merchants, or service providers are organized in the card issuer database according to groups, each of the multiple groups having its associated clubs, merchants, or service providers.

33. The card processing system of claim 32, wherein each cardholder or cardholder applicant is associated with a group such that the series of available clubs, merchants, or service providers that is presented corresponds to that cardholder'"'"'s or cardholder applicant'"'"'s group.

34. The card processing system of claim 32, wherein the groups comprise at least two branches of the military.

35. The card processing system of claim 34, wherein the groups further comprise at least one college or university.

36. The card processing system of claim 29, wherein the partner is enabled by the card issuer to perform Web-based maintenance on the cardholder information corresponding to that partner.

37. The card processing system of claim 36, wherein the partner can perform said maintenance by updating address information of cardholders.

38. The card processing system of claim 26, further comprising:

a report generator module for generating activity reports that can be accessed over a public computer network by at least one of (a) participating clubs, merchants, or service providers, and (b) partners of the card issuer.

39. The card processing system of claim 26, wherein at least some of the issued credit cards are adapted for use as an admission pass to specific facilities corresponding to selected clubs, merchants, or service providers.

40. A card processor for allowing cardholders to automatically charge fees to clubs, merchants or service providers, comprising:

a card processor for identifying auto-charge transactions corresponding to individual credit card accountholders;

said card processor operatively coupled to a card issuer database having information that associates individual cardholders with a plurality of clubs, merchants, or service providers for which auto-charges are performed by the card issuer;

said auto-charge transactions being performed without requiring, for each auto-charge, a cardholder to submit payment authorization or the club, merchant, or service provider to submit a payment transaction request;

the card processor performing the auto-charge transactions which are for payments owed by the cardholder to selected clubs, merchants, or service providers in consideration for services or goods;

the card processor accessing the card issuer database to perform the auto-charge transactions;

the auto-charge transactions resulting in funds being charged to the cardholder'"'"'s credit account and funds being credited to an account of a third party other than the cardholder, the third party comprising one or more selected clubs, merchants, and service providers.

41. The card processor of claim 40, wherein the card processor is adapted to perform some auto-charge transactions as “

on us”

transactions and others as “

not on us”

transactions.

42. The card processor of claim 40, wherein the card processor is adapted to determine which auto-charge transactions can be performed as “

on us”

transactions that are executed without submitting a transaction request through a card interchange that supports multiple issuers.

43. A computer-implemented method of card processing allowing cardholders to automatically charge fees to clubs, merchants or service providers, comprising:

(1) issuing credit cards capable of point-of-sale transactions to be posed on a cardholder'"'"'s account;

(2) providing a card issuer database having information that associates individual cardholders with a plurality of clubs, merchants, or service providers for which auto-charge transactions are performed by the card issuer;

(3) performing said auto-charge transactions without requiring, for each auto-charge, a cardholder to submit payment authorization or the club, merchant, or service provider to submit a payment transaction request;

(a) the auto-charge transactions being for payments owed by the cardholder to selected clubs, merchants, or service providers in consideration for services or goods;

(b) the auto-charge transactions resulting in funds being charged to the cardholder'"'"'s credit account and funds being credited to an account of a third party other than the cardholder, the third party comprising one or more selected clubs, merchants, and service providers; and

(4) accessing the card issuer database to allow at least one of existing cardholders and cardholder applicants to choose clubs, merchants or service providers, to be associated with that cardholder and to enable said auto-charging function for the selected clubs, merchants, or service providers.

44. The computer-implemented method of claim 43, further comprising the step of:

(5) Providing access to the card issuer database to one or more partners of the card issuer, each partner being associated with particular cardholders in the card issuer database.

45. The computer-implemented method of claim 43, wherein the step of issuing credit cards comprises issuing at least some credit cards which adapted for use as an admission pass to specific facilities corresponding to selected clubs, merchants, or service providers.