Method and system for engaging in a transaction between a consumer and a merchant

• US 20080203153A1
• Filed: 02/26/2007
• Published: 08/28/2008
• Est. Priority Date: 02/26/2007
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: I4 Commerce, Inc. (PayPal Holdings, Inc.)
• Inventors: Talbert, Vincent W., Lavelle, Mark L., Keithley, Thomas H.
• Granted Patent: US 8,433,648 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Disclosed is a method for engaging in a transaction between a consumer and a merchant. In particular, the present invention is directed to a method and system for providing instant credit by a credit issuer to the consumer at a point-of-sale of the merchant. In addition, the present invention is directed to a method and system for identifying at least one optimal credit product from a plurality of credit products of at least one credit issuer to a consumer.

Claims

1. A method for providing instant credit by a credit issuer to a consumer at a point-of-sale of a merchant, the method comprising the steps of:

initiating or engaging in a transaction between the consumer and the merchant at the point-of-sale;

obtaining a consumer/transaction data set including a plurality of data fields populated with data reflecting the consumer, the merchant, the transaction, the credit issuer or any combination thereof;

analyzing at least a portion of the consumer/transaction data set;

based upon the results of the analysis;

(i) offering instant credit by the credit issuer to the consumer at the point-of-sale;

or

(ii) preventing an offer of instant credit by the credit issuer to the consumer at the point-of-sale; and

if instant credit is offered to the consumer;

(i) accepting, by the consumer, the offer of instant credit; and

(ii) consummating the transaction between the consumer and the merchant using the provided instant credit.

2. The method of claim 1, further comprising the step of authenticating or verifying the consumer prior to offering the instant credit to the consumer based upon at least one data field in the consumer/transaction data set.

3. The method of claim 1, further comprising the steps of:

obtaining a consumer data set including a plurality of data fields populated with data reflecting the consumer, the merchant, the transaction or any combination thereof; and

performing a credit analysis of the consumer based upon at least one data field in the consumer data set.

4. The method of claim 3, wherein, based upon the credit analysis, the method further comprises the step of preventing the offer of instant credit by the credit issuer to the consumer at the point-of-sale.

5. The method of claim 3, wherein, based upon the credit analysis, the method further comprises the step of pre-approving the offer of instant credit to the consumer at the point-of-sale.

6. The method of claim 3, wherein, based upon the credit analysis, the method further comprises the steps of:

(i) limiting the amount of instant credit offered to the consumer at the point-of-sale;

(ii) informing the consumer that the transaction is eligible for instant credit; and

(iii) informing the consumer that the transaction is not eligible for instant credit based upon transaction data, transaction type, transaction amount, merchant data, consumer data or any combination thereof;

or any combination thereof.

7. The method of claim 3, wherein at least one of the plurality of fields in the consumer data set is populated with data reflecting a consumer'"'"'s name, a consumer key, a consumer identification, an account number, an address, a city, a state, a zip code, a country, a telephone number, an e-mail address, a social security number, a date of birth, the merchant'"'"'s name, an identification, a credit issuers name, credit issuer data, credit data, credit product data, credit rate data, credit terms data, credit product benefits data, a product identification, a service identification, a company identity, a merchant identity, consumer credit account balance, merchant history, private label entity data, affiliated private label entity, transaction data, transaction type, transaction amount historical interaction between the consumer and the credit issuer, historical data, merchant data, previous consumer/credit issuer transaction data, consumer creditworthiness, consumer credit quality, size of purchase, type of purchase, consumer demographic data, consumer age, consumer location, consumer income, consumer credit data, consumer purchasing behavior, consumer purchasing behavior with a specified credit issuer, credit issuer sales objectives, credit issuer goals, consumer purchasing history, consumer status, consumer lifetime value to credit issuer, credit issuer input data, consumer input data, product credit rate, product credit terms, product benefit data, product relationships, product tie-ins, consumer purchasing behavior at a specified merchant, merchant objectives, merchant goals, consumer lifetime value to merchant, merchant input data, a transaction amount, a consumer purchase demographic, a product identification, a service identification, consumer type, a company identity, a merchant identity, a third-party risk score, risk data, authentication data, verification data, consumer rating data, profitability data, credit risk data, fraud risk data, transaction risk data, denial data, processing data, a general credit risk score, a credit bureau risk score, a prior approval, prior report data, previous transaction data, a geographical risk factor, credit account data, bankcard balance data, delinquency data, credit segment data, previous transaction data, time between transactions data, previous transaction amount, previous transaction approval status, previous transaction time stamp data, a response code, active trades in database, public record data, trade line data, transaction medium, credit segment data, consumer payment type, consumer payment method, consumer payment history, consumer account history, consumer credit account balance, merchant history, private label entity data, affiliated private label entity, consumer/merchant historical data, negative consumer/credit issuer data, positive consumer/credit issuer data, or any combination thereof.

8. The method of claim 1, wherein, prior to offering the instant credit to the consumer, the method further comprises the step of presenting, to the consumer, credit data, credit issuer data, credit terms, credit conditions or any combination thereof.

9. The method of claim 1, wherein at least one of the plurality of data fields of the consumer/transaction data set is populated with data reflecting a consumer'"'"'s name, a consumer key, a consumer identification, an account number, an address, a city, a state, a zip code, a country, a telephone number, an e-mail address, a social security number, a date of birth, the merchant'"'"'s name, an identification, a credit issuers name, credit issuer data, credit data, credit product data, credit rate data, credit terms data, credit product benefits data, a product identification, a service identification, a company identity, a merchant identity, consumer credit account balance, merchant history, private label entity data, affiliated private label entity, transaction data, transaction type, transaction amount or any combination thereof.

10. The method of claim 1, wherein, after the transaction is consummated, the method further comprises the step of presenting, to the consumer, a plurality of payment options that can be used to satisfy the instant credit amount of the transaction.

11. The method of claim 10, wherein at least one of the plurality of payment options is an e-check, a check, cash, an ACH product, a credit card, a new credit account, an online credit account, an existing credit account, a minimum payment on account, a debit account or any combination thereof.

12. The method of claim 10, wherein, prior to the presentation step, the method further comprises the steps of:

obtaining a consumer data set including a plurality of data fields populated with data reflecting the consumer, the merchant, the transaction or any combination thereof; and

performing a credit analysis of the consumer based upon at least one data field in the consumer data set.

13. The method of claim 10, further comprising the steps of:

selecting, by the consumer, at least one of the plurality of payment options, which is in the form of a credit product; and

activating the credit product by a credit issuer associated with the credit product.

14. The method of claim 10, further comprising the step of selecting, by the consumer, at least one of the plurality of payment options.

15. The method of claim 14, further comprising the step of utilizing at least one of the plurality of selected payment options to satisfy:

at least a portion of the instant credit amount of the transaction;

at least a portion of the instant credit amount of a plurality of transactions, or any combination thereof.

16. A method for identifying at least one optimal credit product from a plurality of credit products of at least one credit issuer to a consumer, the method comprising the steps of:

providing a credit issuer selection data set including a plurality of data fields to a central optimization database;

providing a consumer selection data set including a plurality of data fields to the central optimization database;

determining at least one optimal credit product to be offered by the at least one credit issuer to the consumer based upon;

(i) at least one data field in the credit issuer selection data set;

(ii) at least one data field in the consumer selection data set, or any combination thereof; and

offering at least one optimal credit product, by the at least one credit issuer, to the consumer.

17. The method of claim 16, wherein a plurality of optimal credit products are offered to the consumer.

18. The method of claim 17, wherein the optimal credit products are presented to the consumer in a hardcopy form, a wireless form, an electronic form, on a computing device, on a display device, over the Internet, as a web page, on a graphical user interface, at a point-of-sale, before a transaction, during a transaction, upon completion of a transaction, or any combination thereof.

19. The method of claim 17, wherein the plurality of optimal credit products offered to the consumer are ranked according to:

(i) at least one data field in the credit issuer selection data set;

(ii) at least one data field in the consumer selection data set, or any combination thereof.

20. The method of claim 19, further comprising the steps of:

organizing the plurality of ranked credit products in the form of a list; and

presenting the organized list to the consumer.

21. The method of claim 20, wherein the ranked credit products are presented to the consumer in a hardcopy form, a wireless form, an electronic form, on a computing device, on a display device, over the Internet, as a web page, on a graphical user interface, at a point-of-sale, before a transaction, during a transaction, upon completion of a transaction, or any combination thereof.

22. The method of claim 20, further comprising the step of individually and sequentially presenting the plurality of ranked credit products to the consumer.

23. The method of claim 16, wherein the credit product is a credit card, an online payment account, a co-branded credit account, a pre-approved credit product, a private label credit account, a debit account, a stored value account, a single transaction account, an option account to pay when due, or any combination thereof.

24. The method of claim 16, further comprising a plurality of credit issuers, each providing at least one of the plurality of credit products.

25. The method of claim 16, wherein the determination step is based upon an algorithm and based at least in part upon consumer data, merchant data, credit issuer data, consumer creditworthiness, consumer credit quality, size of purchase, type of purchase, consumer demographic data, consumer age, consumer location, consumer income, consumer credit data, consumer purchasing behavior, consumer purchasing behavior with a specified credit issuer, credit issuer sales objectives, credit issuer goals, consumer purchasing history, consumer status, consumer lifetime value to credit issuer, credit issuer input data, consumer input data, product credit rate, product credit terms, product benefit data, product relationships, product tie-ins, consumer purchasing behavior at a specified merchant, merchant objectives, merchant goals, consumer lifetime value to merchant, merchant input data or any combination thereof.

26. The method of claim 25, wherein the algorithm is a computer-implemented algorithm.

27. The method of claim 25, wherein the algorithm is at least one of modifiable, dynamic and configurable.

28. The method of claim 16, wherein the determination step is based upon the calculation of an offer score based at least in part upon consumer data, purchase profile data and merchant profile data.

29. The method of claim 28, wherein the algorithm is a computer-implemented algorithm.

30. The method of claim 28, wherein the algorithm is at least one of modifiable, dynamic and configurable.

31. The method of claim 16, wherein at least a portion of data fields of the consumer selection data set are at least partially based upon data supplied by the consumer.

32. The method of claim 16, wherein at least a portion of data fields of the credit issuer selection data set are at least partially based upon data supplied by the credit issuer, a merchant affiliated with the credit issuer or any combination thereof.

33. The method of claim 16, further comprising the step of providing an interface to the credit issuer for inputting at least one data field in the credit issuer selection data set.

34. The method of claim 16, further comprising the step of providing an interface to the consumer for inputting at least one data field in the consumer selection data set.

35. The method of claim 16, wherein at least one of the plurality of data fields in the consumer selection data set is populated with data reflecting a consumer'"'"'s name, a consumer key, a consumer identification, an account number, an address, a city, a state, a zip code, a country, a telephone number, an e-mail address, a social security number, a date of birth, the merchant'"'"'s name, an identification, a credit issuers name, credit issuer data, credit data, credit product data, credit rate data, credit terms data, credit product benefits data, a product identification, a service identification, a company identity, a merchant identity, consumer credit account balance, merchant history, private label entity data, affiliated private label entity, or any combination thereof.

36. The method of claim 16, wherein at least one of the plurality of data fields in the credit issuer selection data set is populated with data reflecting historical interaction between the consumer and the credit issuer, historical data, merchant data, previous consumer/credit issuer transaction data, consumer creditworthiness, consumer credit quality, size of purchase, type of purchase, consumer demographic data, consumer age, consumer location, consumer income, consumer credit data, consumer purchasing behavior, consumer purchasing behavior with a specified credit issuer, credit issuer sales objectives, credit issuer goals, consumer purchasing history, consumer status, consumer lifetime value to credit issuer, credit issuer input data, consumer input data, product credit rate, product credit terms, product benefit data, product relationships, product tie-ins, consumer purchasing behavior at a specified merchant, merchant objectives, merchant goals, consumer lifetime value to merchant, merchant input data, a transaction amount, a consumer purchase demographic, a product identification, a service identification, consumer type, a company identity, a merchant identity, a third-party risk score, risk data, authentication data, verification data, consumer rating data, profitability data, credit risk data, fraud risk data, transaction risk data, denial data, processing data, a general credit risk score, a credit bureau risk score, a prior approval, prior report data, previous transaction data, a geographical risk factor, credit account data, bankcard balance data, delinquency data, credit segment data, previous transaction data, time between transactions data, previous transaction amount, previous transaction approval status, previous transaction time stamp data, a response code, active trades in database, public record data, trade line data, transaction medium, credit segment data, consumer payment type, consumer payment method, consumer payment history, consumer account history, consumer credit account balance, merchant history, private label entity data, affiliated private label entity, consumer/merchant historical data, negative consumer/credit issuer data, positive consumer/credit issuer data, or any combination thereof.

37. The method of claim 16, wherein the credit issuer selection data set, the consumer selection data set, or any combination thereof includes credit product offering data reflecting an established offer to the consumer of a service, an item, a discount, a redemption, a coupon, a voucher, a non-cash benefit, an incentive, a ticket, an invitation, an event, or any combination thereof.

38. The method of claim 16, wherein the credit issuer selection data set includes consumer recognition data, which is selected based upon:

a current transaction between the consumer and a merchant;

a previous transaction between the consumer and a merchant;

a historical transaction data between the consumer and a merchant;

tracking data specific to a consumer;

a value reflective of the consumer'"'"'s transaction history with a merchant;

a current transaction between the consumer and the credit issuer;

a previous transaction between the consumer and the credit issuer;

a historical transaction data between the consumer and the credit issuer;

a value reflective of the consumer'"'"'s transaction history with the credit issuer;

data associated with transactions with a credit issuer;

transaction-specific data;

consumer-specific data;

transaction frequency data;

transaction amount data;

cumulative transaction frequency data;

cumulative transaction amount data;

consumer demographic data, or any combination thereof.

39. The method of claim 16, wherein the credit issuer selection data set, the consumer selection data set, or any combination thereof is at least one of in communication with and maintained by a system, a central processing system, a credit issuer, a merchant, a seller, an Internet site, an online entity, a web store, a telephone seller, a group of credit issuers, a group of merchants, an organization of credit issuers, an organization of merchants, an entity, a corporation, a company, an offeror of goods, an offeror of services, an affiliation of a plurality of entities, or any combination thereof.

40. The method of claim 16, further comprising the step of presenting the credit issuer with a report including compiled credit issuer-specific data, credit product data, consumer data, consumer selection data, consumer behavior data, consumer survey data or any combination thereof.

41. The method of claim 16, further comprising the step of selecting, by the consumer, at least one optimal credit product.

42. The method of claim 16, further comprising the steps of:

presenting a plurality of optimal credit products to the consumer; and

selecting, by the consumer, at least one of the plurality of credit products.

43. The method of claim 42, further comprising the step of obtaining, from the consumer, selection data regarding the selection of the consumer.

44. The method of claim 43, wherein the selection data is a reason for selection, a reason for not selecting, data directed to the consumer selection, credit product data, credit rate data, credit terms data, credit benefits data, credit affiliation data or any combination thereof.

45. The method of claim 16, wherein the consumer selection data set includes at least one data field reflecting a consumer'"'"'s preferred credit product or preferred credit product terms, the method further comprising the step of determining whether the consumer is eligible for the preferred credit product or preferred credit product terms.

46. The method of claim 45, further comprising the steps of:

if the consumer is eligible for the preferred credit product, offering to the consumer;

(1) the preferred credit product;

(2) a plurality of credit products for which the consumer is eligible, including the preferred credit product;

or (3) a plurality of credit products for which the consumer is eligible, not including the preferred credit product; and

if the consumer is not eligible for the preferred credit product, offering to the consumer;

(1) another credit product with terms similar to the preferred credit product;

(2) a plurality of credit products for which the consumer is eligible;

or (3) an indication of no eligible credit products.

47. The method of claim 16, further comprising the step of selecting, by the consumer, at least credit product to satisfy a credit amount associated with a transaction between the consumer and a merchant.

48. An apparatus for providing instant credit by a credit issuer to a consumer at a point-of-sale of a merchant, the apparatus comprising:

a storage mechanism including an central database;

at least one input mechanism for transmitting a consumer/transaction data set including a plurality of data fields populated with data reflecting the consumer, the merchant, the transaction, the credit issuer or any combination thereof, to the central database;

a processor mechanism configured to;

(i) analyze at least a portion of the consumer/transaction data set; and

(ii) based upon the results of the analysis;

(a) offer instant credit by the credit issuer to the consumer at the point-of-sale;

or

(ii) prevent an offer of instant credit by the credit issuer to the consumer at the point-of-sale; and

an output mechanism for offering the instant credit to the consumer at the point-of-sale.

49. An apparatus for identifying at least one optimal credit product from a plurality of credit products of at least one credit issuer to a consumer, the apparatus comprising:

a storage mechanism including a central optimization database;

at least one input mechanism for transmitting a credit issuer selection data set including a plurality of data fields to a central optimization database and for transmitting a consumer selection data set including a plurality of data fields to the central optimization database;

a processor mechanism configured to determine at least one optimal credit product to be offered by the at least one credit issuer to the consumer based upon;

(i) at least one data field in the credit issuer selection data set;

(ii) at least one data field in the consumer selection data set, or any combination thereof; and

an output mechanism for offering at least one optimal credit product, by the at least one credit issuer, to the consumer.