System and Method for Establishing or Modifying an Account With User Selectable Terms

• US 20070118470A1
• Filed: 11/08/2006
• Published: 05/24/2007
• Est. Priority Date: 11/01/2001
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: Bank One Delaware National Association (JP Morgan Chase & Co), JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Schmitt, Donald, Barrett, Donna, Ehemann, Karen, Warren, Mary
• Granted Patent: US 8,145,522 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 administering an account for an account holder, wherein the account holder can execute purchase transactions using the account, the method comprising the steps of:

establishing the account for the account holder;

associating a first affiliate with the account;

associating a second affiliate with the account;

calculating rewards information associated with the first affiliate based on use of the account for purchase transactions; and

calculating a compensation to be provided to the second affiliate based on use of the account for purchase transactions.

2. The method of claim 1, wherein the account is a credit card account.

3. The method of claim 1, further comprising sending the rewards information to the first affiliate.

4. The method of claim 1, further comprising sending the compensation to the second affiliate.

5. The method of claim 1, wherein the first affiliate comprises an airline or a hotel.

6. The method of claim 1, wherein the second affiliate comprises a university, a charitable organization, a professional association, or an environmental organization.

7. The method of claim 1, further comprising the step of displaying a representation of the second affiliate on a face of a card associated with the account.

8. The method of claim 1, further comprising determining a compatibility of the affiliates associated with the account.

9. A system for administering an account of an account holder comprising:

a memory that stores information relating to the account holder, a first affiliate affiliated with the account, and a second affiliate affiliated with the account; and

a processor that is programmed to;

calculate rewards information associated with the first affiliate based on use of the account by the cardholder; and

calculate a compensation to be provided to the second affiliate based on use of the account by the cardholder.

10. The system of claim 9, wherein the account comprises a credit card account.

11. The system of claim 9, wherein the processor is further programmed to generate instructions for sending the rewards information to the first affiliate.

12. The system of claim 9, wherein the processor is further programmed to generate instructions for sending the compensation to the second affiliate.

13. The system of claim 9, wherein the first affiliate comprises an airline or a hotel.

14. The system of claim 9, wherein the second affiliate comprises a university, a charitable organization, a professional association, or an environmental organization.

15. The system of claim 9, wherein the processor is further programmed to determine a compatibility of the affiliates associated with the account.

16. A method of administering an account for an account holder, wherein the account holder can execute purchase transactions using the account, the method comprising the steps of:

establishing the account for the account holder;

associating a first affiliate with the account;

associating a second affiliate with the account;

calculating rewards information associated with the first affiliate based on use of the account; and

sending to the account holder an itemized fee for each affiliate that the account holder pays to an administrator of the account.

17. The method of claim 16, further comprising the step of calculating a compensation to be provided to the second affiliate based on use of the account.

18. The method of claim 16, further comprising determining a compatibility of the affiliates associated with the account.

19. The method of claim 16, wherein the account is a credit card account.

20. The method of claim 16, wherein the first affiliate comprises an airline or a hotel.

21. The method of claim 16, wherein the second affiliate comprises a university, a charitable organization, a professional association, or an environmental organization.

22. The method of claim 16, further comprising the step of providing a web page allowing the account holder to select the first and second affiliates to be associated with the account.

23. The method of claim 22, wherein the web page lists categories of affiliates.

24. The method of claim 16, further comprising the step of sending to the account holder a plurality of available account terms other than affiliates.

25. A method comprising the steps of:

establishing an account for an account holder;

providing an account access device to the account holder;

receiving data on purchase transactions made by the account holder using the account access device;

calculating a number of universal points to award to the account holder based on the purchase transaction data;

awarding the number of universal points to the account holder;

receiving a request from the account holder to convert at least a portion of the universal points to affiliate points associated with an affiliate of the account; and

converting said at least a portion of the universal points to the affiliate points.

26. The method of claim 25, wherein the account access device comprises a credit card.

27. The method of claim 25, further comprising awarding universal points for payment in full of a monthly balance.

28. The method of claim 25, further comprising deducting universal points in lieu of applying a service charge to the account.

29. The method of claim 25, further comprising converting at least a portion of the affiliate points associated with an affiliate of the account into universal points.

30. The method of claim 25, wherein the account includes at least two affiliates affiliated with the account.