Linking Transaction Cards With Spending Accounts

• US 20070175985A1
• Filed: 05/04/2006
• Published: 08/02/2007
• Est. Priority Date: 11/19/2004
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Bliman, Michal, Klaboe, Dana, Malnati, Leigh, Barnes, Brian, Harrison, Sarah, Jagatic, Jason
• Granted Patent: US 7,905,399 B2
• Time in Patent Office: Days
• US Class Current: 235/381
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 30/04 Billing or invoicing

Abstract

A computer-implemented system and method to facilitate a purchase utilizing a flexible spending account, comprising the steps of: receiving, at a host computer, a request for payment authorization for an item; determining whether the item qualifies for pre-tax treatment; and when the item qualifies for pre-tax treatment: determining at least partial payment authorization for the item, transmitting the at least partial payment authorization for the item to a point of sale device; causing the flexible spending account to be debited for at least a portion of the purchasing amount of the item based on the payment authorization; and debiting a non-flexible spending account for an item not qualifying for pre-tax treatment.

Claims

1. A method to facilitate a purchase utilizing at least one flexible spending account, comprising:

receiving a request for payment authorization for the purchase of a plurality of items, at least one of which qualifies for pre-tax treatment and at least one other of which does not qualify for pre-tax treatment;

authorizing payment for the purchase;

transmitting the payment authorization to a point of sale device;

causing a flexible spending account to be debited for at least a portion of a purchase amount of the at least one item that qualifies for pre-tax treatment based on the payment authorization; and

causing a non-flexible payment transaction account to be debited for at least a portion of a purchase amount of the at least one item that does not qualify for pre-tax treatment based on the payment authorization.

2. A computer-implemented method to facilitate a purchase utilizing a flexible spending account, comprising the steps of:

receiving, at a host computer, a request for payment authorization for the purchase of one or more items;

determining whether one or more of said items qualifies for pre-tax treatment;

if at least one of said items qualifies for pre-tax treatment;

determining at least partial payment authorization for said qualifying item, transmitting said at least partial payment authorization for said qualifying item to a point of sale device, and

causing the flexible spending account to be debited for at least a portion of the purchasing amount of said qualifying item based on said payment authorization; and

if at least one of said items does not qualify for pre-tax treatment;

causing a non-flexible spending account to be debited for said non-qualifying item.

3. A computer-implemented method to facilitate payment of a purchase from a merchant utilizing one or both of a flexible spending account (FSA) and a non-flexible spending transaction account (TA), comprising the steps of:

a) receiving, at a host computer, a request for payment authorization for an item charge;

b) determining whether the item charge qualifies for pre-tax treatment;

c) if the item charge qualifies for pre-tax treatment, then causing the FSA to be debited for the item charge; and

d) if the item charge does not qualify for pre-tax treatment, then causing the TA to be debited for the item charge.

4. A computer-implemented method according to claim 3, in which a transaction instrument is used to make the purchase from the merchant, wherein step (b) comprises at least one of:

(i) determining whether the transaction instrument is associated with the FSA;

(ii) determining whether the FSA contains sufficient funds to cover the charge for the purchase; and

(iii) determining whether the merchant satisfies the requirements necessary to permit funds for the purchase to be drawn from the FSA.

5. A computer implemented method according to claim 3, wherein step (b) comprises:

determining whether the item charge satisfies Internal Revenue Service Guidelines for flexible spending accounts.

6. A computer implemented method according to claim 5, in which the item charge comprises a plurality of items to be charged, further comprising:

e) determining whether any of the plurality of items do not satisfy Internal Revenue Service Guidelines for flexible spending accounts;

f) separating out those items that do not satisfy Internal Revenue Service Guidelines for flexible spending accounts;

g) causing the FSA to be debited for the charge of the item or items that satisfy Internal Revenue Service Guidelines for flexible spending accounts; and

h) causing the TA to be debited for the charge of the item or items that do not satisfy Internal Revenue Service Guidelines for flexible spending accounts.

7. A computer implemented method according to claim 3, in which the item charge comprises a plurality of items to be charged, further comprising:

e) determining whether any of the plurality of items to be charged are not eligible to be charged to the FSA;

f) separating out those items that are not eligible to be charged to the FSA;

g) causing the FSA to be debited for the charge of the item or items that are eligible to be charged to the FSA; and

h) causing the TA to be debited for the charge of the item or items that are not eligible to be charged to the FSA.

8. A computer program product comprising a computer usable medium having control logic stored therein for facilitating payment of a purchase from a merchant utilizing one or both of a flexible spending account (FSA) and a non-flexible spending transaction account (TA), comprising:

first computer readable program code for causing the computer to receive, at a host computer, a request for payment authorization for an item charge;

second computer readable program code for causing the computer to determine whether the item charge qualifies for pre-tax treatment;

third computer readable program code for causing the computer to cause the FSA to be debited for the item charge if the item charge qualifies for pre-tax treatment; and

fourth computer readable program code for causing the computer to cause the TA to be debited for the item charge if the item charge does not qualify for pre-tax treatment.

9. A computer program product according to claim 8, in which a transaction instrument is used to make the purchase from the merchant, wherein the second computer readable program code comprises at least one of:

fifth computer readable program code for causing the computer to determine whether the transaction instrument is associated with the FSA;

sixth computer readable program code for causing the computer to determine whether the FSA contains sufficient funds to cover the charge for the purchase; and

seventh computer readable program code for causing the computer to determine whether the merchant satisfies the requirements necessary to permit funds for the purchase to be drawn from the FSA.

10. A computer program product according to claim 8, wherein the second computer readable program code comprises:

fifth computer readable program code for causing the computer to determine whether the item charge satisfies Internal Revenue Service Guidelines for flexible spending accounts.

11. A computer program product according to claim 10, in which the item charge comprises a plurality of items to be charged, further comprising:

sixth computer readable program code for causing the computer to determine whether any of the plurality of items do not satisfy Internal Revenue Service Guidelines for flexible spending accounts;

seventh computer readable program code for causing the computer to separate out those items that do not satisfy Internal Revenue Service Guidelines for flexible spending accounts;

eighth computer readable program code for causing the computer to cause the FSA to be debited for the charge of the item or items that satisfy Internal Revenue Service Guidelines for flexible spending accounts; and

ninth computer readable program code for causing the computer to cause the TA to be debited for the charge of the item or items that do not satisfy Internal Revenue Service Guidelines for flexible spending accounts.

12. A computer implemented method according to claim 8, in which the item charge comprises a plurality of items to be charged, further comprising:

fifth computer readable program code for causing the computer to determine whether any of the plurality of items to be charged are not eligible to be charged to the FSA;

sixth computer readable program code for causing the computer to separate out those items that are not eligible to be charged to the FSA;

seventh computer readable program code for causing the computer to cause the FSA to be debited for the charge of the item or items that are eligible to be charged to the FSA; and

eighth computer readable program code for causing the computer to cause the TA to be debited for the charge of the item or items that are not eligible to be charged to the FSA.