METHOD OF PROVIDING AN ACCOUNT THAT EMPLOYS A BUFFER AGAINST OVERDRAFTS

• US 20110191241A1
• Filed: 02/02/2010
• Published: 08/04/2011
• Est. Priority Date: 02/02/2010
• Status: Abandoned Application

• Current Assignee: Citizens Financial Group, Inc. (Rhode Island) (Citizens Financial Group Incorporated)
• Original Assignee: Citizens Financial Group Incorporated
• Inventors: Tittel, Andrea, Blain, Joe, Jacocks, Jeffrey
• Application Number:
  US12/698,742
• Publication Number:
  US 20110191241A1
• Time in Patent Office: Days
• US Class Current: 705/42
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking

Abstract

A method and system is provided for establishing a buffer to protect a banking customer against over drafting a bank account. The invention provides a bank account that includes a buffer attached thereto wherein the buffer allows the account holder to exceed their account value within the predetermined range without risk of incurring overdrafts or the resulting overdraft fees associated therewith. A customer establishes a banking account that contains a monetary balance therein. A buffer amount is assigned to the account. The buffer is a monetary value in excess of the balance within the account. As debits are settled against the account they are deducted from the balance. Should one or more transactions cause the value of the account to drop below the balance the account is in an over draft condition, but provided the overdraft amount is less than the buffer, the traditional overdraft fees are waived.

Claims

1. A method for maintaining a banking account that includes a buffer to protect against over drafting, comprising:

establishing a banking account at a bank service provider that contains a monetary balance therein;

assigning a buffer amount to said account;

processing transactions for settlement against said account, said transactions adding to or subtracting from said monetary balance;

monitoring said monetary balance to determine whether said monetary balance drops below a zero value thereby placing said banking account into an overdraft condition; and

waiving any consequences associated with said overdraft condition provided said monetary balance does not drop below a zero value by more than the amount of said assigned buffer amount.

2. The method of claim 1, wherein said banking account is an account that includes online bill payment features and access via an electronic transaction card.

3. The method of claim 2 wherein said electronic transaction card is selected from the group consisting of:

ATM card, prepaid transaction card and debit card.

4. The method of claim 1, wherein said banking account is selected from the group consisting of:

a debit account, a checking account and a money market account.

5. The method of claim 1, wherein a fee is charged against said monetary value of said account in exchange for maintaining the assignment of said buffer amount to said account.

6. The method of claim 5, wherein said fee is waived if the customer utilizes a bundle of services offered by said bank service provider.

7. A computer implemented system for maintaining a banking account that includes a buffer to protect against over drafting, comprising:

a computer server capable of storing records and processing transactions, said computer server being connected with an electronic communication network, said computer server containing at least one record relating to a banking account that contains a monetary balance therein and a buffer amount assigned to said account,

wherein transactions for settlement against said account, are transmitted to said computer server via said electronic communications network such that a monetary value of said transactions is added to or subtracted from said monetary balance,

wherein said computer server monitors said monetary balance to determine whether said monetary balance drops below a zero value thereby placing said banking account into an overdraft condition and waives any consequences associated with said overdraft condition provided said monetary balance does not drop below a zero value by more than the amount of said assigned buffer amount.

8. The computer implemented system of claim 7, wherein said banking account is an account that includes online bill payment features and access via an electronic transaction card.

9. The computer implemented system of claim 8 wherein said electronic transaction card is selected from the group consisting of:

ATM card, prepaid transaction card and debit card.

10. The computer implemented system of claim 7, wherein said banking account is selected from the group consisting of:

a debit account, a checking account and a money market account.

11. The computer implemented system of claim 7, wherein a fee is charged against said monetary value of said account in exchange for maintaining the assignment of said buffer amount to said account.

12. The computer implemented system of claim 11, wherein said fee is waived if the customer utilizes a bundle of services offered by said bank service provider.