Credit-card based retirement fund system and method

• US 5,787,404 A
• Filed: 11/21/1995
• Issued: 07/28/1998
• Est. Priority Date: 11/21/1995
• Status: Expired due to Term

• Current Assignee: Ernesto Fernandez-Holmann
• Original Assignee: Ernesto Fernandez-Holmann
• Inventors: Fernandez-Holmann, Ernesto
• Primary Examiner(s): Weinhardt, Robert A.
• Assistant Examiner(s): Hughet, William N.
• Application Number:
  US08/561,617
• Time in Patent Office: 980 Days
• Field of Search: 395/238, 705/17, 705/35, 705/39, 705/40
• US Class Current: 705/35
• 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 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• 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: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A method and system for providing an investment fund, such as a long term investment fund which may be suitable for retirement purposes, comprising the steps of establishing a credit based account with a credit card issuer for the benefit of a credit card holder, providing an investment account with a financial institution for the benefit of the credit card holder, funding the investment account by the credit card issuer with a predetermined amount of money on a periodic basis, and charging an amount of money so funded against the credit based account of the credit card holder. In addition, disclosed is a method and system providing an investment fund is based on purchase rebates, comprising the steps of establishing a credit based account with a credit card issuer for the benefit of a credit card holder, providing a long term investment account with a financial institution for the benefit of the credit card holder, ascertaining the total amount of money charged by the credit card holder in subscriber merchants in a particular period of time, and providing a rebate by the credit card issuer to the credit card holder by funding the investment account of the credit card holder with a predetermined percentage of said total amount so ascertained.

Claims

1. A computerized method for providing an investment fund comprising the steps of:

a) establishing a computerized credit based account with a credit card issuer for the benefit of a credit card holder,

b) providing a computerized investment account with a financial institution for the benefit of the credit card holder;

c) determining if the credit card holder has independently deposited funds into the investment account in a particular period;

d) electronically transferring funds automatically to the computerized investment account by the credit card issuer with a predetermined amount of money specified by the credit card holder on a periodic basis, only when the credit card holder has not independently deposited funds into the investment account in said particular period; and

e) charging an amount of money so funded against the credit based account of the credit card holder.

2. The method of claim 1 further comprising the step of charging a fee against the credit based account of the credit card holder when the credit card issuer funds the investment account in any given period.

3. The method of claim 1 further comprising the step of billing the credit card holder by the credit card issuer for the amount of money funded to the investment account.

4. The method of claim 3 further comprising the step of terminating funding of the investment account by the credit card issuer when the credit card holder defaults by failing to make timely payment of at least a predetermined portion of the amount billed by the credit card issuer in any particular period.

5. The method of claim 4 comprising the further step of transferring funds from the investment account to the credit card issuer when the credit card holder so defaults, said funds to cover the amount of money owed by the credit card holder to the credit card issuer relating to said default.

6. The method of claim 1 further comprising the steps of:

e) ascertaining the total amount of money charged by the credit card holder through subscriber merchants in a particular period of time; and

f) providing a rebate by the credit card issuer to the credit card holder by funding the investment account of the credit card holder with a predetermined percentage of said total amount so ascertained, said rebate not being charged against the credit based account of the credit card holder.

7. The method of claim 6 further comprising the step of billing the credit card holder by the credit card issuer for the amount of money funded to the investment account.

8. The method of claim 7 further comprising the step of terminating funding and rebate provisions of the investment account by the credit card issuer when the credit card holder defaults by failing to make timely payment of at least a predetermined portion of the amount billed by the credit card issuer in any particular period.

9. The method of claim 8 comprising the further step of transferring funds from the investment account to the credit card issuer when the credit card holder so defaults, said funds being sufficient to cover the amount of money owed by the credit card holder to the credit card issuer due to said default.

10. The computerized method of claim 1 wherein the credit card issuer and the financial institution are unrelated parties.

11. A computerized system for providing an investment fund comprising:

a) means for establishing a computerized credit based account with a credit card issuer for the benefit of a credit card holder;

b) means for providing a computerized investment account with a financial institution for the benefit of the credit card holder;

c) means for determining if the credit card holder has independently deposited funds into the investment account in a particular period;

d) means for electronically transferring funds automatically to the computerized investment account by the credit card issuer with a predetermined amount of money specified by the credit card holder on a periodic basis, only when the credit card holder has not independently deposited funds into the investment account in said particular period; and

e) means for charging an amount of money so funded against the credit based account of the credit card holder.

12. The computerized system of claim 11 wherein the credit card issuer and the financial institution are unrelated parties.