Merchant credit issuance and monitoring systems and methods

• US 20070168277A1
• Filed: 01/19/2006
• Published: 07/19/2007
• Est. Priority Date: 01/19/2006
• Status: Abandoned Application

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Marchesi, Giancarlo
• Application Number:
  US11/337,086
• Publication Number:
  US 20070168277A1
• Time in Patent Office: Days
• US Class Current: 705/38
• 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

Abstract

A method of extending credit to a merchant establishing a transaction processing relationship with the merchant and extending credit to the merchant contingent on the transaction processing relationship. Extending credit includes a right to collateralize funds resulting from the transaction processing relationship, otherwise due the merchant, if the merchant defaults on a payment due in the course of extending credit to the merchant.

Claims

1. A method of extending credit to a merchant, comprising:

populating a processing system with one or more rules;

establishing a transaction processing relationship with the merchant, whereby a transaction processor;

receives credit tickets resulting from purchases by consumers of the merchant'"'"'s goods or services;

obtains funds from the consumers; and

remits at least a portion of the funds to the merchant;

extending credit to the merchant contingent on the transaction processing relationship, wherein extending credit to the merchant includes a right to collateralize funds resulting from the transaction processing relationship, otherwise due the merchant, if the merchant defaults on a payment due in the course of extending credit to the merchant and wherein extending credit to the merchant includes creating an account relating to the merchant;

receiving transaction processing data relating to the merchant;

receiving credit account information relating to the account of the merchant;

applying one or more rules to the transaction processing data relating to the merchant and the credit account information relating to the account of the merchant; and

based on the application of the rules to the information, determining whether to collateralize funds due the merchant resulting from the transaction processing relationship.

2. The method of claim 1, wherein a first one of the one or more rules allows collateralization of the funds if the account of the merchant becomes delinquent more than a predetermined number of days.

3. The method of claim 2, wherein the predetermined number of days is 74 days.

4. The method of claim 3, wherein the account of the merchant becomes delinquent more than 74 days, the method further comprising:

based on the determination, withholding a percentage of funds due the merchant from the transaction processing relationship.

5. The method of claim 4, wherein the percentage is 50%.

6. The method of claim 1, wherein a second one of the one or more rules allows collateralization of the funds if a score relating to the merchant exceeds a predetermined threshold.

7. The method of claim 6, wherein the score includes a factor relating to goods sold by the merchant.

8. The method of claim 6, wherein the score includes a factor relating to a delivery schedule for goods or services sold by the merchant.

9. The method of claim 1, wherein a third one of the one or more rules allows collateralization of the funds if a score relating to a proprietor of the merchant falls by a predetermined amount.

10. The method of claim 9, wherein the score comprises a credit score.

11. The method of claim 10, wherein the credit score comprises a Fair Isaac Corporation (FICO) score.

12. A method of extending credit to a merchant, comprising:

establishing a transaction processing relationship with the merchant, whereby a transaction processor;

receives credit tickets resulting from purchases by consumers of the merchant'"'"'s goods or services;

obtains funds from the consumers; and

remits at least a portion of the funds to the merchant;

extending credit to the merchant contingent on the transaction processing relationship, wherein extending credit to the merchant includes the right to collateralize funds resulting from the transaction processing relationship, otherwise due the merchant, if the merchant defaults on a payment due in the course of extending credit to the merchant and wherein extending credit to the merchant includes creating an account relating to the merchant;

receiving account information relating to the account of the merchant; and

evaluating the account information to determine whether to collateralize funds due the merchant resulting from the transaction processing relationship.

13. The method of claim 12, wherein evaluating the account information to determine whether to collateralize funds due the merchant resulting from the transaction processing relationship comprises determining whether the account of the merchant is delinquent more than a predetermined number of days.

14. The method of claim 13, wherein the account of the merchant relates to a credit card account.

15. A method of extending credit to a merchant, comprising:

establishing a transaction processing relationship with the merchant, whereby a transaction processor;

receives credit tickets resulting from purchases by consumers of the merchant'"'"'s goods or services;

obtains funds from the consumers; and

remits at least a portion of the funds to the merchant;

extending credit to the merchant contingent on the transaction processing relationship, wherein extending credit to the merchant includes a right to collateralize funds resulting from the transaction processing relationship, otherwise due the merchant, if the merchant defaults on a payment due in the course of extending credit to the merchant and wherein extending credit to the merchant includes creating an account relating to the merchant;

receiving transaction processing data relating to the merchant; and

evaluating the transaction processing data to determine whether to collateralize funds due the merchant resulting from the transaction processing relationship.

16. The method of claim 15, wherein evaluating the transaction processing data to determine whether to collateralize funds due the merchant resulting from the transaction processing relationship comprises:

calculating a credit risk score relating to the transaction processing relationship; and

comparing the score to a predetermined threshold.

17. The method of claim 16, wherein the transaction processing relationship comprises a credit card processing relationship.

18. A method of extending credit to a merchant, comprising:

establishing a transaction processing relationship with the merchant, whereby a transaction processor;

receives credit tickets resulting from purchases by consumers of the merchant'"'"'s goods or services;

obtains funds from the consumers; and

remits at least a portion of the finds to the merchant;

extending credit to the merchant contingent on the transaction processing relationship, wherein extending credit to the merchant includes a right to collateralize funds resulting from the transaction processing relationship, otherwise due the merchant, if the merchant defaults on a payment due in the course of extending credit to the merchant and wherein extending credit to the merchant includes creating an account relating to the merchant;

receiving credit information relating to a proprietor of the merchant; and

evaluating the credit information relating to the proprietor of the merchant to determine whether to collateralize finds due the merchant resulting from the transaction processing relationship.

19. The method of claim 18, evaluating the credit information relating to the proprietor of the merchant to determine whether to collateralize funds due the merchant resulting from the transaction processing relationship comprises determining whether a score relating to the proprietor of the merchant has fallen below a predetermined threshold.

20. The method of claim 19, wherein the score comprises a Fair Isaac Corporation (FICO) score.