System and method for processing and for funding a transaction

• US 20060004655A1
• Filed: 06/30/2005
• Published: 01/05/2006
• Est. Priority Date: 04/13/2004
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Grimes, Scott David, Rosenblatt, Charles Aaron, O'Malley, Daniel R., Alexander, Robert Minter IV
• Granted Patent: US 9,922,326 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• 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 a transfer from a source account to a destination account via a communication link, receiving the 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, and processing the attempted transaction.

Claims

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

receiving a transfer from a source account via a communication link;

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; and

processing the attempted transaction.

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

receiving the transfer includes

receiving the 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

receiving the transfer includes

receiving the tranfer 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 1, wherein

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

6. 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.

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

the source account and the destination account are managed by the same entity.

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

processing the attempted transaction 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.

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

processing the attempted transaction 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 another account for funding the attempted transaction or at least a portion of the attempted transaction.

10. The method as set forth in claim 9, 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 other account.

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

processing the attempted transaction includes

processing the attempted transaction with an interchange rate, the interchange rate bein a percentage of the transaction amount.

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

the interchange rate is a credit card interchange rate.

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

the communication link is an automated clearing house network and the transfer is an automated clearing house transfer.

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

processing the attempted transaction includes

providing an opportunity during a predetermined period to prevent the attempted transaction from being funded by the source account,

receiving a request to prevent the attempted transaction, and

determining whether the request is valid.

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

determing whether the request is valid includes

determining whether the attempted transaction was subject to a fraud,

if the request is determined to be valid, then preventing the attempted transaction from being funded by the source account, and

if the request is determined to be invalid, then approving the attempted transaction to be funded with the source account.

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

determing whether the request is valid includes

determining whether an appropriate party conducted the attempted transaction,

if the request is determined to be valid, then preventing the attempted transaction from being funded by the source account, and

if the request is determined to be invalid, then approving the attempted transaction to be funded with the source account.

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

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

processing the attempted transaction;

requesting a transfer for the transaction amount to be transmitted from a source account to the destination account; and

receiving the transfer.

18. The method as set forth in claim 17, further comprising:

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

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

receiving the transaction data includes

receiving the transaction data from a merchant, and

transmitting the data includes

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

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

the transaction data includes data indicating the transaction vehicle used to initiate the attempted transaction.

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

the transaction vehicle is a transaction card.

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

processing the attempted transaction includes

processing the attempted transaction with an interchange rate.

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

the interchange rate is a credit interchange rate.

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

processing the attempted transaction includes

determining at least one source account for funding the transaction amount and

requesting the transfer includes

requesting the transfer from the at least one source account.

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

processing the attempted transaction includes

providing an opportunity during a predetermined period to prevent the attempted transaction from being funded by the source account,

receiving a request to prevent the attempted transaction, and

determining whether the request is valid.

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

determing whether the request is valid includes

determining whether the attempted transaction was subject to a fraud,

if the request is determined to be valid, then preventing the attempted transaction from being funded by the source account, and

if the request is determined to be invalid, then approving the attempted transaction to be funded with the source account.

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

determing whether the request is valid includes

determining whether an appropriate party conducted the attempted transaction,

if the request is determined to be valid, then preventing the attempted transaction from being funded by the source account, and

if the request is determined to be invalid, then approving the attempted transaction to be funded with the source account.

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

determining the at least one source account includes

checking a balance of the at least one source account for determining whether the balance is equal to or greater than the transaction amount.

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

determining the at least one source account includes

checking a credit line of the at least one source account for determining whether the credit line is equal to or greater than the transaction amount.

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

the transfer is an automated clearing house transfer and

requesting the transfer includes

requesting the transfer for the transaction amount from the at least one source account to the destination account via an automated clearing house network.

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

the source account and the destination account are associated with different entities.

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

determining the at least one source account includes

accessing a predefined list of a plurality of source accounts and evaluating each of the plurality of source accounts in a sequential order until the at least one source account is located for funding the transaction.

33. The method as set forth in claim 17, further comprising:

adjusting destination account data associated with the destination account by increasing a balance of the destination account by an amount of the transfer upon receiving the 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.

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

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

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

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

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

the source account and the destination account are managed by the same entity.

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

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

processing the attempted transaction for determining at least one source account to fund the transaction amount, the at least one source account and destination account being associated with different entities;

requesting a transfer for the transaction amount to be transmitted to the destination account from the determined at least one source account; and

receiving the transfer.

38. The method as set forth in claim 37, further comprising:

providing an opportunity during a predetermined period to prevent the attempted transaction from being funded by the source account,

receiving a request to prevent the attempted transaction, and

determining whether the request is valid.

39. The method as set forth in claim 38, wherein

determing whether the request is valid includes

determining whether the attempted transaction was subject to a fraud,

if the request is determined to be valid, then preventing the attempted transaction from being funded by the source account, and

if the request is determined to be invalid, then approving the attempted transaction to be funded with the source account.

40. The method as set forth in claim 38, wherein

determing whether the request is valid includes

determining whether an appropriate party conducted the attempted transaction,

if the request is determined to be valid, then preventing the attempted transaction from being funded by the source account, and

if the request is determined to be invalid, then approving the attempted transaction to be funded with the source account.