System, Program Product, And Method For Debit Card And Checking Account Autodraw

• US 20090254441A1
• Filed: 04/02/2009
• Published: 10/08/2009
• Est. Priority Date: 04/04/2008
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Sorbe, Trent, Ahlers, Rebecca, Crowe, Andrew B., Galit, Scott H.
• Granted Patent: US 8,738,451 B2
• Time in Patent Office: Days
• US Class Current: 705/17
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A consumer is prequalified for a line of credit attached to a checking account by a lending institution computer responsive to consumer underwriting data. The lending institution computer makes available draws to the line of credit line in an authorization stream for a proposed payment from the checking account. When the line of credit is accessed, the checking account is credited with an additional value equal to one or more preselected loan increments so that the account then has a new amount totaling a previous amount plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or equals the value of a proposed payment. Next a new value for the line of credit balance available is determined, accounting for value credited to the checking account and a preselected loan advance fee for each loan increment credited to the account.

Claims

1. A system for accessing a line of credit, the system comprising:

a computer associated with a lending institution defining a lending institution computer, the lending institution computer having memory, being associated with an electronic communications network, and being positioned to control access to funds from a line of credit associated with a checking account; and

a computer program product associated with the lending institution computer, stored on a tangible computer memory media, and operable on a computer, the computer program product comprising a set of instructions that, when executed by the computer, cause the computer to perform the operations of;

prequalifying a consumer for a line of credit associated with a checking account by the lending institution computer responsive to consumer underwriting data and predetermined qualification parameters to thereby convert consumer underwriting data into line of credit data, the line of credit having a total loan value, a preselected loan increment, a preselected loan advance fee associated with each preselected loan increment, and a line of credit balance available,

making available draws to the line of credit in an authorization stream for a proposed payment when an amount of value of the proposed payment is greater than an amount of value in the checking account, the proposed payment being received by the lending institution computer through the electronic communications network from a point of sale terminal associated with a merchant,

crediting the checking account with an additional value equal to one or more preselected loan increments so that the checking account then has a new amount totaling a previous amount of value in the account plus an amount of value of the one or more preselected loan increments and so that the new amount exceeds or, alternatively, equals the value of the proposed payment to thereby convert line of credit data into a value associated with the checking account to thereby fund the proposed payment, and

determining a new value for the line of credit balance available, the new value being a previous value for the line of credit balance available minus a value equal to the one or more preselected loan increments credited to the checking account and minus a value equal to one or more preselected loan advance fees associated with each of the one or more preselected loan increments credited to the account.

2. A system of claim 1, wherein the proposed payment involves one or more of the following:

an electronic check, a debit card, an electronic bill payment, an automated teller machine (ATM) withdrawal, and a wire transfer.

3. A system of claim 2, wherein the lending institution comprises a first financial institution, the first financial institution being associated with the line of credit, and wherein the checking account is associated with a second financial institution so that a first financial institution can offer line of credit services for a checking account associated with a second financial institution.

4. A system of claim 3, wherein the lending institution computer associated with the first financial institution pushes credit balance information to a second computer associated with the second financial institution so that the second financial institution computer can make a determination regarding the line of credit for a proposed payment in real time.

5. A system of claim 3, wherein a core banking system of the first financial institution is integrated into a core banking system of the second financial institution so that a second computer associated with the second financial institution can make a determination regarding the line of credit for a proposed payment in real time.

6. A system of claim 1, wherein the operation of making available draws to the line of credit in an authorization stream for a proposed payment includes making available only a part of the preauthorized total loan value available, responsive to a consumer determination, so that the consumer retains maximum control;

wherein the operation of prequalifying a consumer for a line of credit associated with a checking account by a lending institution computer includes the consumer opting in to a program with the lending institution using one or more of the following;

a written correspondence from the consumer, a consumer selection on a website, a telephone conversation with an interactive voice response unit, a telephone conversation with a customer service representative, and a mobile phone;

wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations;

wherein the line of credit is a bank product so that the line of credit complies with federal Regulation Z; and

wherein the lending institution computer is further positioned to adjust the prequalified total loan value and repayment terms responsive to consumer performance data.

7. A computer program product associated with a computer associated with a lending institution computer defining a lending institution computer, stored on a tangible computer memory media, and operable on a computer, the computer program product comprising a set of instructions that, when executed by the computer, cause the computer to perform the operations of:

prequalifying a consumer for a line of credit associated with a checking account by the lending institution computer responsive to consumer underwriting data and predetermined qualification parameters to thereby convert consumer underwriting data into line of credit data, the line of credit having a total loan value, a preselected loan increment, a preselected loan advance fee associated with each preselected loan increment, and a line of credit balance available;

making available draws to the line of credit in an authorization stream for a proposed payment when an amount of value of the proposed payment is greater than an amount of value in the checking account;

crediting the checking account with an additional value equal to one or more preselected loan increments so that the checking account then has a new amount totaling a previous amount of value in the account plus an amount of value of the one or more preselected loan increments and so that the new amount exceeds or, alternatively, equals the value of the proposed payment to thereby convert line of credit data into a value associated with the checking account to thereby fund the proposed payment; and

determining a new value for the line of credit balance available, the new value being a previous value for the line of credit balance available minus a value equal to the one or more preselected loan increments credited to the checking account and minus a value equal to one or more preselected loan advance fees associated with each of the one or more preselected loan increments credited to the account.

8. A computer program product of claim 7, wherein the proposed payment involves one or more of the following:

a check, an electronic check, a debit card, an electronic bill payment, an automated teller machine (ATM) withdrawal, and a wire transfer.

9. A computer program product of claim 8, wherein the lending institution comprises a first financial institution, the first financial institution being associated with the line of credit, and wherein the checking account is associated with a second financial institution so that a first financial institution can offer line of credit services for a checking account associated with a second financial institution.

10. A computer program product of claim 9, wherein the lending institution computer associated with the first financial institution pushes credit balance information to a second computer associated with the second financial institution so that the second financial institution computer can make a determination regarding the line of credit for a proposed payment in real time.

11. A computer program product of claim 9, wherein a core banking system of the first financial institution is integrated into a core banking system of the second financial institution so that a second computer associated with the second financial institution can make a determination regarding the line of credit for a proposed payment in real time.

12. A computer program product of claim 7, wherein loan repayment occurs from direct deposit funds prior to or relatively instantaneously with the direct deposit funds being made available in the checking account.

13. A computer program product of claim 7, wherein the operations further include associating the line of credit with a payroll processing entity.

14. A computer-implemented method of accessing a line of credit, the method comprising:

prequalifying a consumer for a line of credit associated with a checking account by a lending institution computer responsive to consumer underwriting data and predetermined qualification parameters to thereby convert consumer underwriting data into line of credit data, the line of credit having a total loan value, a preselected loan increment, a preselected loan advance fee associated with each preselected loan increment, and a line of credit balance available;

making available draws to the line of credit in an authorization stream for a proposed payment when an amount of value of the proposed payment is greater than an amount of value in the checking account;

crediting the checking account with an additional value equal to one or more preselected loan increments so that the checking account then has a new amount totaling a previous amount of value in the account plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or, alternatively, equals the value of the proposed payment to thereby convert line of credit data into a value associated with the checking account to thereby fund the proposed payment; and

determining a new value for the line of credit balance available, the new value being a previous value for the line of credit balance available minus a value equal to the one or more preselected loan increments credited to the account and minus a value equal to one or more preselected loan advance fees associated with each of the one or more preselected loan increments credited to the account.

15. A computer-implemented method of claim 14, wherein the proposed payment involves one or more of the following:

a check, an electronic check, a debit card, an electronic bill payment, an automated teller machine (ATM) withdrawal, and a wire transfer.

16. A computer-implemented method of claim 15, wherein the lending institution comprises a first financial institution, the first financial institution being associated with the line of credit, and wherein the checking account is associated with a second financial institution so that a first financial institution can offer line of credit services for a checking account associated with a second financial institution.

17. A computer-implemented method of claim 16, wherein the lending institution computer associated with the first financial institution pushes credit balance information to a second computer associated with the second financial institution so that the second financial institution computer can make a determination regarding the line of credit for a proposed payment in real time.

18. A computer-implemented method of claim 16, wherein a core banking system of the first financial institution is integrated into a core banking system of the second financial institution so that a second computer associated with the second financial institution can make a determination regarding the line of credit for a proposed payment in real time.

19. A computer-implemented method of claim 14, wherein the proposed payment is payment for a purchase of goods;

and the computer-implemented method further includes displaying an account activity statement, including a purchase, on a display device to thereby provide a visual representation of a value associated with the checking account being exchanged for goods.

20. A computer-implemented method of claim 14, wherein the proposed payment involves a debit card, and the computer-implemented method further includes receiving data by the lending institution computer from a card reader device associated with a point of sale terminal responsive to the card reader device reading data from the debit card and modifying the data to include point of sale data to communicate with the lending institution computer.