System and method for processing and for funding a transaction

• US 20050246289A1
• Filed: 04/13/2004
• Published: 11/03/2005
• Est. Priority Date: 04/13/2004
• Status: Abandoned Application

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Inventors: Rosenblatt, Charles Aaron, Alexander, Robert Minter IV
• Application Number:
  US10/822,999
• Publication Number:
  US 20050246289A1
• Time in Patent Office: Days
• US Class Current: 705/67
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/3674 involving authentication
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Method for processing a transaction, the method comprising automatically requesting an automated clearing house transfer from a source account to a destination account via an automated clearing house network, receiving the automated clearing house transfer, adjusting destination account data associated with the destination account by increasing a balance of the destination account by an amount of the transfer, receiving transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and data identifying the destination account, processing the attempted transaction with a credit card interchange rate, and transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.

Claims

1. A method for processing a transaction, the method comprising:

automatically requesting an automated clearing house transfer from a source account to a destination account via an automated clearing house network;

receiving the automated clearing house transfer;

adjusting destination account data associated with the destination account by increasing a balance of the destination account by an amount of the transfer;

receiving transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and data identifying the destination account;

processing the attempted transaction with a credit card interchange rate; and

transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.

2. The method as set forth in claim 1, wherein

automatically requesting the automated clearing house transfer includes

automatically requesting the automated clearing house transfer at a predetermined time for a predetermined amount of money.

3. The method as set forth in claim 2, wherein

the predetermined time is on a recurring basis.

4. The method as set forth in claim 1, wherein

automatically requesting the automated clearing house transfer includes

automatically requesting the automated clearing house transfer on a transactional basis or on request by one of an associated account holder and an associated financial institution.

5. The method as set forth in claim 3, wherein

the recurring basis occurs one of daily, weekly, monthly and yearly.

6. The method as set forth in claim 1, wherein

the source account is one of a checking account, a savings account and a money market account.

7. The method as set forth in claim 1, wherein

the destination account is one of a checking account, a savings account and a money market account.

8. The method as set forth in claim 1, wherein

the source account and the destination account are managed by the same financial institution.

9. The method as set forth in claim 6, wherein

the financial institution is one of a bank and a credit card company.

10. The method as set forth in claim 1, wherein

receiving the transaction data from the merchant includes

receiving the data from the merchant via a proprietary credit network, the proprietary credit network being associated with one of VISA®

, MasterCard®

, Plus, Novus, Diner'"'"'s Club® and

American Express®

.

11. The method as set forth in claim 1, wherein

processing the attempted transaction with the credit card interchange rate includes

accessing the balance of the destination account to determine whether the balance is greater than or equal to the transaction amount,

if it is determined that the balance is greater than or equal to the transaction amount authorizing the attempted transaction, and

if it is determined that the balance is not greater than or equal to the transaction amount, denying the attempted transaction.

12. The method as set forth in claim 1, wherein

processing the attempted transaction with the credit card interchange rate includes

accessing the balance of the destination account to determine whether the balance is greater than or equal to the transaction amount,

if it is determined that the balance is greater than or equal to the transaction amount authorizing the attempted transaction,

and if it is determined that the balance is not greater than or equal to the transaction amount, one of reprocessing the attempted transaction and accessing a line of credit associated with at least one of the source account and the destination account for funding the attempted transaction or at least a portion of the attempted transaction.

13. The method as set forth in claim 12, wherein

an account holder associated with the source account and the destination account is presented with an option of reprocessing the attempted transaction or accessing the line of credit associated with the at least one of the source account and the destination account.

14. The method as set forth in claim 1, wherein

the credit card interchange rate is a percentage of the transaction amount.

15. The method as set forth in claim 1, further comprising:

providing interest at one of a fixed interest rate and a variable interest rate on at least a portion of the balance of the destination account, the interest accruing after expiration of a predetermined period of time.

16. The method as set forth in claim 1, further comprising:

providing a reward to an account holder associated with the source account and the destination account, if the attempted transaction was authorized.

17. The method as set forth in claim 16, wherein

providing the reward includes

assigning at least one reward unit to another account associated with the destination account, the at least one reward unit being determined according to the transaction amount of the attempted transaction.

18. The method as set forth in claim 17, wherein

the at least one reward unit includes one of at least one point and at least one mile.

19. The method as set forth in claim 16, wherein

the reward includes one of a discount on the transaction amount of the attempted transaction, a gift certificate, a coupon, a good and a service.

20. A method for processing a transaction, the method comprising:

receiving an automated clearing house transfer from a source account via an automated clearing house network;

adjusting destination account data associated with a destination account by increasing a balance of the destination account by an amount of the transfer;

receiving transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and data identifying the destination account;

processing the attempted transaction with a credit card interchange rate; and

transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.

21. The method as set forth in claim 20, wherein

receiving the automated clearing house transfer includes

receiving the automated clearing house transfer at a predetermined time for a predetermined amount of money.

22. The method as set forth in claim 21, wherein

the predetermined time is on a recurring basis.

23. The method as set forth in claim 22, wherein

the recurring basis occurs one of daily, weekly, monthly and yearly.

24. The method as set forth in claim 20, wherein

the source account is one of a checking account, a savings account and a money market account.

25. The method as set forth in claim 20, wherein

the destination account is one of a checking account, a savings account and a money market account.

26. The method as set forth in claim 20, wherein

the source account and the destination account are managed by the same financial institution.

27. The method as set forth in claim 26, wherein

the financial institution is one of a bank and a credit card company.

28. The method as set forth in claim 20, wherein

receiving the transaction data from the merchant includes

receiving the data from the merchant via a proprietary credit network, the proprietary credit network being associated with one of VISA®

, MasterCard®

, Plus, Novus, Diner'"'"'s Club® and

American Express®

.

29. The method as set forth in claim 20, wherein

processing the attempted transaction with the credit card interchange rate includes

accessing the balance of the destination account to determine whether the balance is greater than or equal to the transaction amount,

if it is determined that the balance is greater than or equal to the transaction amount authorizing the attempted transaction, and

if it is determined that the balance is not greater than or equal to the transaction amount, denying the attempted transaction.

30. The method as set forth in claim 20, wherein

processing the attempted transaction with the credit card interchange rate includes

accessing the balance of the destination account to determine whether the balance is greater than or equal to the transaction amount,

if it is determined that the balance is greater than or equal to the transaction amount authorizing the attempted transaction,

and if it is determined that the balance is not greater than or equal to the transaction amount, one of reprocessing the attempted transaction and accessing a line of credit associated with at least one of the source account and the destination account for funding the attempted transaction or at least a portion of the attempted transaction.

31. The method as set forth in claim 30, wherein

an account holder associated with the source account and the destination account is presented with an option of reprocessing the attempted transaction or accessing the line of credit associated with the at least one of the source account and the destination account.

32. The method as set forth in claim 20, wherein

the credit card interchange rate is a percentage of the transaction amount.

33. The method as set forth in claim 20, further comprising:

providing interest at one of a fixed interest rate and a variable interest rate on at least a portion of the balance of the destination account, the interest accruing after expiration of a predetermined period of time.

34. The method as set forth in claim 20, further comprising:

providing a reward to an account holder associated with the source account and the destination account, if the attempted transaction was authorized.

35. The method as set forth in claim 34, wherein

providing the reward includes

assigning at least one reward unit to another account associated with the destination account, the at least one reward unit being determined according to the transaction amount of the attempted transaction.

36. The method as set forth in claim 35, wherein

the at least one reward unit includes one of at least one point and at least one mile.

37. The method as set forth in claim 34, wherein

the reward includes one of a discount on the transaction amount of the attempted transaction, a gift certificate, a coupon, a good and a service.

38. A method for processing a transaction, the method comprising:

receiving transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and data identifying the destination account;

processing the attempted transaction with a credit card interchange rate;

requesting an automated clearing house transfer for the transaction amount to be transmitted from a source account to a destination account via an automated clearing house network;

receiving the automated clearing house transfer; and

transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.

39. The method as set forth in claim 38, further comprising:

adjusting destination account data associated with the destination account by increasing a balance of the destination account by an amount of the automated clearing house transfer upon receiving the automated clearing house transfer; and

readjusting the destination account data by decreasing the balance of the destination account one of before and after transmitting the authorization data to the merchant.

40. A system for processing a transaction comprising:

a memory unit for storing destination account data including data indicating a balance of a destination account and data identifying the destination account; and

a processing unit operatively connected to the memory unit, the processing unit programmed to

automatically request an automated clearing house transfer from a source account to the destination account via an automated clearing house network,

receive the automated clearing house transfer,

adjust the destination account data associated with the destination account by increasing the balance of the destination account by an amount of the transfer,

receive transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and the data identifying the destination account,

process the attempted transaction with a credit card interchange rate, and

transmit data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.

41. A system for processing a transaction comprising:

a memory unit for storing destination account data including data indicating a balance of a destination account and data identifying the destination account; and

a processing unit operatively connected to the memory unit, the processing unit programmed to

receive an automated clearing house transfer from a source account via an automated clearing house network,

adjust the destination account data associated with the destination account by increasing the balance of the destination account by an amount of the transfer,

receiving transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and the data identifying the destination account,

processing the attempted transaction with a credit card interchange rate, and

transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.

42. A system for processing a transaction comprising:

a memory unit for storing destination account data including data indicating a balance of a destination account and data identifying the destination account; and

a processing unit operatively connected to the memory unit, the processing unit programmed to

receive an automated clearing house transfer from a source account via an automated clearing house network,

adjust the destination account data associated with the destination account by increasing the balance of the destination account by an amount of the transfer;

receive transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and the data identifying the destination account,

processing the attempted transaction with a credit card interchange rate, and

transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.