System and Method for Linked Account Having Sweep Feature

• US 20110131103A1
• Filed: 01/04/2011
• Published: 06/02/2011
• Est. Priority Date: 09/06/2000
• 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: Hirka, Jeffrey L., Fellner, Debra C., Knackstedt, Lee, Fox, Steven
• Granted Patent: US 8,682,730 B2
• Time in Patent Office: Days
• US Class Current: 705/16
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/20 Point-of-sale [POS] network systems
• 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 20/207 Tax processing
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• 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: G07G 1/12 electronically operated digital data processing aspects G06Q20/00

Abstract

A linked account instrument is used to access funds in an existing demand deposit account held at a financial institution. Merchant or other transactions are first processed against a demand deposit account via an electronic authorization network. If the demand deposit account does not have sufficient funds, the transactions may be processed as a credit charge against an designated credit account. The demand deposit account may subsequently be swept at predetermined times in search of funds to defray the overdraft. If adequate funds are present, they will be withdrawn from the demand deposit account, and the credit account will be cleared. Otherwise, the instrument holder'"'"'s daily purchasing abilities may be temporarily suspended until the credit account is settled. The processing of overdraft amounts may be on a FIFO, smallest-first or other basis.

Claims

1-47. -47. (canceled)

48. A system for facilitating electronic transactions, the system comprising:

a transaction card containing point-of-sale readable information, the transaction card being issued by an issuer to a qualified consumer, wherein the qualified consumer becomes a cardholder having a privilege to execute purchase transactions with the transaction card at a plurality of merchants by submitting valid demand deposit account information for a cardholder; and

an authorization server including a computer processor adapted for communication, through a payment network, with point-of-sale transaction terminals;

the computer processor programmed to perform steps including;

receiving transaction information, through the payment network. from one of the point-of-sale transaction terminals in response to an attempted transaction by the cardholder using the transaction card;

accessing a stored spending line, the stored spending line distinct from a current demand deposit account balance;

authorizing the transaction if a transaction amount of the transaction results in a daily spending total below the daily spending line; and

settling the transaction at a time subsequent to the execution of the transaction by sweeping funds from the demand deposit account of the cardholder.

49. The system of claim 48, wherein the authorization server notifies the merchant if the attempted transaction is not approved.

50. The system of claim 48, wherein the system further comprises components for refreshing the spending line.

51. The system of claim 50, further comprising refreshing the spending line on a daily basis.

52. The system of claim 48, wherein the authorization server tracks the daily spending total.

53. The system of claim 48, wherein authorizing the transaction is completed through a credit processing network.

54. The system of claim 48, wherein the authorization server authorizes settlement of the transaction by sweeping funds at a predetermined time.

55. The system of claim 48, wherein the predetermined time occurs once each day.

56. The system of claim 48, wherein the demand deposit account has insufficient funds for the sweep and the authorization server allows continued use of the transaction card upon the finding of insufficiency.

57. The system of claim 48, further comprising a web site providing accesses to transaction records and the spending limit for the transaction card.

58. A computer-implemented method for facilitating electronic funds transactions, the method comprising:

issuing, by a card-issuing institution, a transaction card to a cardholder by associating the transaction card with a demand deposit account from which the cardholder is authorized to electronically disburse funds, the card-issuing institution storing transaction card account data and demand deposit account information in one or more storage media;

receiving, at an authorization server including a computer processor and having access to a storage medium containing transaction card account data of the cardholder, an authorization request for an attempted transaction between a merchant and the cardholder, the authorization request containing information associated with the transaction card and the attempted transaction;

processing;

using the computer processor of the authorization server, the authorization request by;

accessing a stored spending line, the stored spending line distinct from a current demand deposit account balance; and

authorizing the transaction if a transaction amount of the transaction results in a daily spending total below the daily spending line; and

settling the transaction at a time subsequent to the authorization of the transaction by sweeping funds from the demand deposit account of the cardholder.

59. The method of claim 58, wherein the authorization server notifies the merchant if the attempted transaction is not approved.

60. The method of claim 58, further comprising refreshing the spending line.

61. The method of claim 60, further comprising refreshing the spending line on a daily basis.

62. The method of claim 58, further comprising tracking the daily spending total through the authorization server.

63. The method of claim 58, wherein authorizing the transaction is completed through a credit processing network.

64. The method of claim 58, further comprising executing settlement by sweeping funds at a predetermined time.

65. The method of claim 58. wherein the predetermined time occurs once each day.

66. The method of claim 58, wherein if the demand deposit account has insufficient funds for the sweep. the authorization server allows continued use of the transaction card upon the finding of insufficiency.

67. The method of claim 58, further comprising a providing a web site allowing access by the cardholder to transaction records and the spending limit for the transaction card.