System and Method For Combined Reconciliation Of Co-Branded Card Promotion And Settlement Of Private Label Card Accounts

• US 20080288396A1
• Filed: 05/16/2007
• Published: 11/20/2008
• Est. Priority Date: 05/16/2007
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Siggers, Kent, Pletz, Tracy
• Granted Patent: US 7,953,653 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system and method for combined reconciliation of co-branded card promotion and settlement of private label card accounts are disclosed. According to one embodiment, the method may include (1) establishing a first relationship with a merchant for promotion of a credit card, the first relationship including at least one merchant compensation term; (2) establishing a second relationship with the merchant for the administration of the merchant'"'"'s private label credit card transactions, the second relationship including at least one issuer compensation term; (3) receiving a first financial information related to the first relationship; (4) receiving a second financial information related to the second relationship; and (5) determining an account balance for the merchant based on at least one of the first information, the second information, the at least one merchant compensation term, and the at least one issuer compensation term. According to another embodiment, the system may include a server in communication with an issuer, a merchant and a bank card network. The server may receive a first financial information related the merchant'"'"'s promotion of a credit card and a second financial information related to the merchant'"'"'s private label credit card transactions. The system may further include a database that stores merchant compensation terms and issuer compensation terms. The system may also include a processor that determines an account balance for the merchant based on the first information, the second information, the at least one merchant compensation term, and/or the at least one issuer compensation term.

Claims

1. A method for combined reconciliation of a credit card promotion relationship and settlement of a private label credit card relationship between an issuer and a merchant, comprising:

establishing a first relationship between the issuer and the merchant for promotion of a credit card, the first relationship including at least one merchant compensation term;

establishing a second relationship between the issuer and the merchant for the administration of the merchant'"'"'s private label credit card transactions, the second relationship including at least one issuer compensation term;

receiving a first financial information related to the first relationship;

receiving a second financial information related to the second relationship; and

determining an account balance for the merchant based on at least one of the first information, the second information, the at least one merchant compensation term, and the at least one issuer compensation term.

2. The method of claim 1, wherein the credit card is a co-branded credit card.

3. The method of claim 1, wherein the first relationship comprises an issuer-merchant relationship.

4. The method of claim 1, wherein the second relationship comprises at least one of an issuer-merchant relationship and an acquirer-merchant relationship.

5. The method of claim 1, wherein the administration of the private label credit card transactions comprises at least one of receiving applications for private label credit cards from applicants, issuing private label credit cards to approved applicants, authorizing purchases with the private label credit cards;

compensating the merchant based on the authorized purchases, invoicing the cardholders for purchases made with the private label cards, and receiving payments from cardholders.

6. The method of claim 1, further comprising:

modifying the at least one merchant compensation term.

7. The method of claim 1, further comprising:

modifying the at least one merchant compensation term.

8. The method of claim 1, wherein the first financial information is provided by the merchant.

9. The method of claim 1, wherein the first financial information is received from a bank card network.

10. The method of claim 1, wherein the first financial information includes an identification of at least one of a number of applications for the credit card submitted, a number of the applications for the credit card approved, a number of first uses of the credit card, a number of transactions conducted with the credit card, a dollar amount of the transactions conducted with the credit card, a number of rewards issued to the cardholders, and a value of the rewards issued to cardholders.

11. The method of claim 1, wherein the second financial information is provided by the merchant.

12. The method of claim 1, wherein the second financial information is received from a merchant.

13. The method of claim 1, wherein the second financial information includes an identification of at least one of a number of applications for the private label credit card submitted, a number of the applications for the private label credit card approved, a number of first uses of the private label credit card, a number of transactions conducted with the private label credit card, and a dollar amount of the transactions conducted with the private label credit card.

14. The method of claim 1, wherein the second financial information comprises at least one of an identification of a number of purchases at standard terms and a number of purchases under non-standard terms.

15. The method of claim 1, wherein the merchant provides at least one of the first financial information and the second financial information periodically.

16. The method of claim 1, wherein the merchant provides the first financial information and the second financial information simultaneously.

17. The method of claim 1, wherein the step of determining an account balance for the merchant based on the first and second information is performed at a period selected from the group consisting of monthly, weekly, daily, bi-daily, and hourly.

18. A method for combined reconciliation of a credit card promotion relationship and settlement of a private label credit card relationship between an issuer and a merchant, comprising:

establishing a first relationship with the issuer for promotion of a credit card, the first relationship including at least one merchant compensation term;

establishing a second relationship with the issuer for administration of the merchant'"'"'s private label credit card transactions, the second relationship including at least one issuer compensation term;

providing a first financial information related to the first relationship to the issuer;

providing a second financial information related to the second relationship to the issuer; and

receiving an updated account balance from the issuer based on at least one of the first information, the second information, the at least one merchant compensation term, and the at least one issuer compensation term.

19. The method of claim 18, wherein the credit card is a co-branded credit card.

20. The method of claim 18, wherein the second relationship comprises at least one of an issuer-merchant relationship and an acquirer-merchant relationship.

21. The method of claim 18, wherein the administration of the private label credit card transactions comprises at least one of receiving applications for private label credit cards from applicants, issuing private label credit cards to approved applicants, authorizing purchases with the private label credit cards;

compensating the merchant based on the authorized purchases, invoicing the cardholders for purchases made with the private label cards, and receiving payments from cardholders.

22. The method of claim 18, further comprising:

modifying the at least one merchant compensation term.

23. The method of claim 18, further comprising:

modifying the at least one issuer compensation term.

24. The method of claim 18, wherein the first financial information includes an identification of at least one of a number of applications for the credit card submitted, a number of rewards issued to the cardholders, and a value of the rewards issued to cardholders.

25. The method of claim 18, wherein the second financial information includes an identification of at least one of a number of applications for the credit card submitted, a number of transactions conducted with the credit card, and a dollar amount of the transactions conducted with the credit card.

26. The method of claim 18, wherein the second financial information comprises an identification of at least one of a number of purchases at standard terms, and a number of purchases under non-standard terms.

27. The method of claim 18, wherein at least one of the first financial information and the second financial information is provided to the issuer periodically.

28. The method of claim 18, wherein the first financial information and the second financial information is provided to the issuer simultaneously.

29. The method of claim 18, wherein the updated account balance is received at a period selected from the group consisting of monthly, weekly, daily, bi-daily, and hourly.

30. A system for combined reconciliation of a credit card promotion relationship and settlement of a private label credit card relationship between an issuer and a merchant, comprising:

a server in communication with an issuer, a merchant and a bank card network, the server receiving a first financial information related the merchant'"'"'s promotion of a credit card and a second financial information related to the merchant'"'"'s private label credit card transactions;

a database for storing at least one merchant compensation term and at least one issuer compensation term; and

a processor adapted to determine an account balance for the merchant based on at least one of the first information, the second information, the at least one merchant compensation term and the at least one issuer compensation term.

31. The system of claim 30, wherein the credit card is a co-branded credit card.

32. The system of claim 30, wherein the first financial information is provided by the merchant.

33. The system of claim 30, wherein the first financial information is received from a bank card network.

34. The system of claim 30, wherein the first financial information includes an identification of at least one of a number of applications for the credit card submitted, a number of the applications for the credit card approved, a number of first uses of the credit card, a number of transactions conducted with the credit card, a dollar amount of the transactions conducted with the credit card, a number of rewards issued to the cardholders, and a value of the rewards issued to cardholders.

35. The system of claim 30, wherein the second financial information is provided by the merchant.

36. The system of claim 30, wherein the second financial information is received from a merchant.

37. The system of claim 30, wherein the second financial information includes at least one of a number of applications for the credit card submitted, a number of the applications for the credit card approved, a number of first uses of the credit card, a number of transactions conducted with the credit card, and a dollar amount of the transactions conducted with the credit card.

38. The system of claim 30, wherein the second financial information comprises a number of purchases at standard terms, and a number of purchases under non-standard terms.

39. The system of claim 30, wherein the merchant provides at least one of the first financial information and the second financial information to the issuer periodically.

40. The system of claim 30, wherein the merchant provides the first financial information and the second financial information to the issuer simultaneously.

41. The system of claim 30, wherein the account balance for the merchant is determined a period selected from the group consisting of monthly, weekly, daily, bi-daily, and hourly.

42. A method for a merchant offering a private label card to a cardholder, comprising:

receiving credit card information from a cardholder for a transaction;

determining if the cardholder has been issued a private label credit card for the merchant;

offering the cardholder an opportunity to apply for the private label credit card for the merchant in response to a determination that the cardholder has not been issued a private label credit card for the merchant.

43. The method of claim 42, wherein the step of receiving credit card information from a cardholder for a transaction is performed at a point of sale.

44. The method of claim 42, further comprising:

receiving an application for the private label card from the cardholder;

determining if the cardholder should be issued the private label card for the merchant;

creating a private label account for the cardholder in response to a determination that cardholder should be issued the private label card for the merchant;

completing the transaction with the private account.

45. The method of claim 42, further comprising:

offering the cardholder an opportunity to complete the transaction on the cardholders'"'"' private label card in response to a determination that the cardholder has been issued the private label card for the merchant.

46. The method of claim 45, further comprising:

completing the transaction with the cardholder'"'"'s private label card.

47. A method for combined reconciliation of a co-branded credit card promotion relationship and settlement of a private label credit card relationship between an issuer and a merchant, comprising:

establishing a first relationship between the issuer and the merchant for promotion of the co-branded credit card, the first relationship including at least one merchant compensation term;

receiving applications for co-branded credit cards from co-branded credit card applicants;

issuing co-branded credit cards to approved co-branded credit card applicants resulting in co-branded credit card cardholders;

receiving a co-branded credit card purchase authorization request for a purchase with the co-branded credit card over a bank card network;

authorizing the co-branded credit card purchase authorization request over the bank card network;

receiving interchange fees for the purchase with the co-branded credit cards;

invoicing the co-branded credit card cardholder for the purchase made with the co-branded credit card;

receiving payments from the co-branded credit card cardholders;

establishing a second relationship between the issuer and the merchant for the administration of the merchant'"'"'s private label credit card transactions, the second relationship including at least one issuer compensation term;

receiving applications for private label credit cards from private label credit card applicants,

issuing private label credit cards to approved private label credit card applicants resulting in private label credit card cardholders;

receiving a private label purchase authorization request for a purchase with the private label credit card over the issuer'"'"'s financial network;

authorizing the private label purchase authorization request over the issuer'"'"'s financial network;

invoicing the private label credit card cardholder for the purchase made with the private label card; and

receiving payments from the private label credit card cardholder;

determining an account balance for the merchant based on a number of applications for co-branded credit cards received, a number of co-branded credit cards issued, a value of authorized purchase made with the co-branded credit cards, an amount of interchange fees received, a number of applications for private label credit cards received, a number of private label credit cards issued, a value of authorized purchase made with the private label credit card at standard terms, a value of authorized purchase made with the private label credit card at promotional terms;

in a single transaction, issuing a credit to the merchant for a positive account balance, and debiting the merchant for a negative account balance.