Financial Transaction Card With Installment Loan Feature

• US 20070250442A1
• Filed: 11/15/2006
• Published: 10/25/2007
• Est. Priority Date: 08/31/1998
• Status: Abandoned Application

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Burkley, John, O'Connell, James, Hogan, Edward, Winterer, Mary
• Application Number:
  US11/560,212
• Publication Number:
  US 20070250442A1
• Time in Patent Office: Days
• US Class Current: 705/41
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

There is provided a financial transaction payment method and system for processing a transaction conducted using a financial transaction card. The financial transaction card has associated therewith a financial account in a financial institution and one or more transaction criteria. The financial transaction payment system includes a processing unit and an application program for execution on the processing unit. The method includes the step of determining by the application program whether a transaction accesses an installment loan on the financial account based on the one or more transaction criteria.

Claims

1. In a financial transaction payment system comprising a processing unit and an application program executing on the processing unit, a method of conducting a transaction, comprising:

engaging in the transaction using a financial transaction card, the financial transaction card having associated therewith a financial account with a financial institution;

determining, by the application program, an amount of a line of credit to be accessed on the financial account to pay for the transaction; and

establishing, by the application program, repayment terms for the transaction, the repayment terms including a fixed number of installment payments.

2. The financial transaction payment system of claim 1, wherein the number of installment payments is established based on the amount of the line of credit accessed for the transaction.

3. The financial transaction payment system of claim 2, wherein the repayment terms further include a particular interest rate.

4. The financial transaction payment system of claim 3, wherein the particular interest rate is established based on the amount of the line of credit accessed for the transaction.

5. The method of claim 4, further comprising the step of determining by the application program whether the amount of the transaction is greater than the available installment loan credit amount.

6. The method of claim 5, further comprising the step of decreasing by the application program the available credit amount by the amount of the transaction if the amount of the transaction is less than or equal to the available credit amount.

7. The method of claim 6, wherein the available credit amount is shared between installment loan purchases and revolving credit purchases.

8. The method of claim 7, wherein the financial transaction card may be used to make both installment loan purchases and revolving credit purchases.

9. The method of claim 1, wherein the financial transaction card is a physical card.

10. The method of claim 1, wherein the financial transaction card is a virtual card.

11. The method of claim 7, wherein the financial transaction card account is linked to one or more different financial transaction card numbers.

12. A method for generating a statement for a financial transaction card, the financial transaction card having an associated installment balance and an associated credit balance, comprising:

obtaining a record for a card account associated with the financial transaction card;

retrieving from the card account record information about each credit transaction and each installment transaction associated with the card account for a particular period; and

displaying a single minimum payment for a combined credit transaction and installment transaction balance.

13. The method of claim 12, wherein the displayed installment transaction details include, for each retrieved installment transaction, a date on which the installment transaction occurred, a total number of installments, and an amount due on a current installment.

14. The method of claim 13, further comprising:

displaying, for each retrieved installment transaction, a description of the installment transaction.

15. The method of claim 14, further comprising:

displaying, for each retrieved installment transaction, an installment payment number.

16. The method of claim 15, further comprising:

displaying, for each retrieved installment transaction, a total balance due.

17. The method of claim 16, further comprising:

displaying a number of installment payments required for a particular installment transaction amount.

18. The method according to claim 17, further comprising:

displaying an amount of credit available for future installment transactions.

19. The method according to claim 17, further comprising:

displaying an amount of credit available for future installment transactions and future credit transactions.

20. The method of claim 17, further comprising:

displaying, for each retrieved credit transaction, credit transaction details including an amount of the credit transaction.

21. The method of claim 20, further comprising:

displaying the credit transaction details on a first page of the statement, and the installment transaction details on a second page of the statement.