SYSTEM AND METHOD FOR MAKING A SYNTHETIC CASH ADVANCE USING A PURCHASE PAYMENT EXCHANGE

• US 20090216637A1
• Filed: 10/22/2008
• Published: 08/27/2009
• Est. Priority Date: 02/27/2008
• Status: Active Grant

• Current Assignee: Anthony Jeremiah Bayne
• Original Assignee: Anthony Jeremiah Bayne
• Inventors: Bayne, Anthony Jeremiah
• Granted Patent: US 8,135,640 B2
• Time in Patent Office: Days
• US Class Current: 705/14.170
• CPC Class Codes: G06Q 20/08 Payment architectures
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

System and method provide for making a synthetic cash advance to a credit cardholder via a purchase-payment exchange. A beneficiary selects an item to be purchased by a cardholder for the beneficiary, and in exchange for the cardholder'"'"'s purchase, the beneficiary transfers funds to the cardholder in an amount that is less than the purchase price of the item. Using this invention, the beneficiary receives the selected item, has a payment made at a discount, and the cardholder receives cash at the card'"'"'s purchase interest rate. Two or more cardholders may be allowed to bid to make the beneficiary'"'"'s purchase or payment. The winning bid may be selected based on the cardholder bid having the largest discount from the purchase price.

Claims

1. A system for a credit cardholder to obtain a synthetic cash advance in exchange for completing a financial transaction for a beneficiary, comprising:

means for a cardholder to submit a bid to complete a financial transaction for a beneficiary using the cardholder'"'"'s credit card, in exchange for receiving cash in an amount that is less than the proposed financial transaction;

means to select the cardholder'"'"'s bid;

means for the cardholder to complete the financial transaction for the beneficiary; and

means for making an electronic fund transfer to the cardholder.

2. The system of claim 1, wherein the electronic funds transferred to the cardholder is less than the amount paid by the cardholder to complete the financial transaction.

3. The system of claim 1, wherein the cardholder'"'"'s bid consists of a group, comprising a purchase price, a discount from the purchase price, and a credit card to be used to complete the financial transaction.

4. The system of claim 1, further comprising means to select the cardholder bid from a plurality of cardholder bids.

5. The system of claim 4, further comprising means to select the cardholder bid having the greatest discount.

6. The system of claim 1, further comprising means for an online payment solution provider to direct a beneficiary'"'"'s financial institution to make an electronic fund transfer to the cardholder.

7. The system of claim 1, further comprising means for an online payment solution provider to pay a cardholder with beneficiary funds held in escrow by the online payment solution provider.

8. The system of claim 1, wherein the cardholder submits the cardholder bid without first seeing a beneficiary bid.

9. A computer-readable medium having stored thereon computer-executable instructions for performing the system of claim 1.

10. The system of claim 1, further comprising a means for selecting two credit cardholder bids to complete a financial transaction for a beneficiary, when a credit cardholder bid'"'"'s purchase price range is insufficient to complete a financial transaction for a beneficiary.

11. The system of claim 10, wherein an electronic fund transfer is made to each cardholder that is less than the amount separately paid by each cardholder.

12. A method for a beneficiary to obtain an item at a discount, the method comprising:

receiving a beneficiary'"'"'s bid request to make a purchase of an item for the beneficiary;

receiving a cardholder'"'"'s conforming bid;

using a credit card of the cardholder to complete the purchase; and

paying the cardholder with an amount of money that is less than the item'"'"'s purchase price, in exchange for completing the purchase with the cardholder'"'"'s credit card.

13. The method of claim 12, wherein the purchase of the item consists of a group, comprising a purchase of an item selected by the beneficiary, a payment for a service selected by the beneficiary, and a payment of a debt owed by the beneficiary.

14. The method of claim 12, wherein the cardholder'"'"'s conforming bid, comprises an offer by the cardholder to complete a purchase for the beneficiary using a credit card that is acceptable to a payee, and a discount from the purchase price, that is equal to or greater than a beneficiary'"'"'s minimum discount.

15. The method of claim 12, further comprising the step of selecting the conforming cardholder bid via an auction.

16. A computer-readable medium having stored thereon computer-executable instructions for performing the method of claim 12.

17. A method for an online payment solution provider to facilitate a purchase-payment exchange between a beneficiary and a cardholder, comprising:

receiving a beneficiary bid request, including a request to have an item purchased by a cardholder for the beneficiary, in exchange for an amount of cash that is less than the price of the item to be purchased;

receiving a credit cardholder'"'"'s conforming bid;

selecting the cardholder'"'"'s conforming bid;

paying for the purchase using the cardholder'"'"'s credit card; and

making an electronic fund transfer to the cardholder in an amount that is less than the amount of credit used by the cardholder to complete the purchase for the beneficiary.

18. A computer-readable medium having stored thereon computer-executable instructions for performing the method of claim 17.

19. The method of claim 17, wherein the beneficiary has pre-approved the beneficiary'"'"'s financial institution to pay the credit cardholder when directed by the online payment solution provider.

20. The method of claim 17, wherein the online payment solution provider uses the beneficiary'"'"'s funds held in escrow to pay for the selected purchase, when no credit cardholder'"'"'s conforming bid is received.

21. The method of claim 17, wherein the online payment solution provider performs an auction to determine what conforming bid to select, when more than one conforming credit cardholder bid is received.