System and method for establishing and executing functions to affect credit card accounts and transactions

• US 5,945,653 A
• Filed: 06/26/1997
• Issued: 08/31/1999
• Est. Priority Date: 06/26/1997
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Asset Management Limited Partnership
• Inventors: Jindal, Sanjay K., Walker, Jay S., Tedesco, Daniel E.
• Primary Examiner(s): Gross, Anita Pellman
• Assistant Examiner(s): Dunn, Drew A.
• Application Number:
  US08/883,308
• Time in Patent Office: 796 Days
• Field of Search: 235/380, 235/383, 235/381, 283/51, 283/57, 283/60.1
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/357 Cards having a plurality of specified features
• CPC Class Codes: G06Q 20/3823 combining multiple encryption tools for a transaction
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

A system and process for establishing a function having a corresponding function identifier. The function is adapted to be processed during a transaction such as a point-of-sale transaction that may involve a credit card. The system and process involve identifying an account having an account identifier, establishing a function having a function identifier, and receiving a transaction request including the account identifier, a transaction amount, and the function identifier. The system and process also process the transaction in accordance with the function to affect the transaction and, possibly, the transaction amount. An affect on the account is also contemplated. Additionally, the system and process are adapted to allow message to be presented by customers and credit card holders during a transaction for later appearance on a credit card statement or other notice.

Claims

1. A method for determining the terms of a transaction, comprising the steps of:

receiving, from a POS terminal, a request to process a transaction, the request including a transaction amount, an account identifier and a function identifier, the account identifier corresponding to an account, and the function identifier corresponding to an operation defining special purchase terms;

recording data representing a link between the function identifier and the transaction;

transmitting, to the POS terminal, an authorization code in response to the request; and

processing the transaction in accordance with the operation to affect the account.

2. The method of claim 1 wherein the operation represents application of a discount amount.

3. The method of claim 1 wherein the operation represents application of a percentage discount.

4. The method of claim 1 wherein the operation represents application of a special interest arrangement.

5. The method of claim 1 wherein the operation represents a period of reduced payment.

6. A method for identifying the terms of a transaction at a point-of-sale, the method comprising the steps of:

receiving an account identifier and a function identifier, the account identifier corresponding to an account, the function identifier corresponding to an operation defining special purchase terms;

determining a first transaction amount;

transmitting a request for authorization, the request including the account identifier, the function identifier and the first transaction amount;

receiving an authorization notice including a second transaction amount; and

processing the transaction based on the second transaction amount.

7. The method of claim 6, further comprising the step of transmitting a request for the function identifier.

8. A method for processing a cardholder message, the method comprising the steps of:

receiving a request to process a transaction, the request including a transaction amount, an account identifier and a cardholder message identifier representing a cardholder message;

establishing an association between the cardholder message and the transaction; and

storing at least one of the cardholder message identifier and the cardholder message, thereby indicating the association between the cardholder message and the transaction.

9. The method of claim 8 wherein the cardholder message is a message code selected from a set of predefined message codes.

10. The method of claim 8, further comprising the step of transmitting a request for the cardholder message.

11. The method of claim 8, further comprising outputting the cardholder message on a billing statement associated with the account identifier.

12. A credit card central controller for determining the terms of a transaction, the credit card central controller comprising:

a processor;

a memory connected to said processor storing a program to control the operation of said processor;

the processor operative with the program in the memory to;

receive, from a POS terminal, a request to process a transaction, the request including a transaction amount, an account identifier and a function identifier, the account identifier corresponding to an account, and the function identifier corresponding to an operation defining special purchase terms;

record data representing a link between the function identifier and the transaction;

transmit, to the POS terminal, an authorization code in response to the request; and

process the transaction in accordance with the operation to affect the account.

13. A POS terminal for identifying the terms of a transaction at a point-of-sale, the POS terminal comprising:

a processor;

a memory connected to the processor storing a program to control the operation of the processor;

the processor operative with the program in the memory to;

receive an account identifier and a function identifier, the account identifier corresponding to an account, the function identifier corresponding to an operation defining special purchase terms;

determine a first transaction amount;

transmit a request for authorization, the request including the account identifier, the function identifier and the first transaction amount;

receive an authorization notice including a second transaction amount; and

process the transaction based on the second transaction amount.

14. The POS terminal of claim 13, wherein the processor is further operative with the program to transmit a request for the function identifier.

15. A credit card central controller for processing a cardholder message, the credit card central controller comprising:

a processor;

a memory connected to the processor storing a program to control the operation of the processor;

the processor operative with the program in the memory to;

receive a request to process a transaction, the request including a transaction amount, an account identifier and a cardholder message identifier representing a cardholder message;

establish an association between the cardholder message and the transaction; and

store at least one of the cardholder message identifier and the cardholder message, thereby indicating the association between the cardholder message and the transaction.

16. The credit card central controller of claim 15, wherein the processor is further operative with the program to transmit a request for the cardholder message.

17. The credit card central controller of claim 15, wherein the processor is further operative with the program to output the cardholder message on a billing statement associated with the account identifier.

18. A credit card central controller for determining the terms of a transaction, comprising:

means for receiving, from a POS terminal, a request to process a transaction, the request including a transaction amount, an account identifier and a function identifier, the account identifier corresponding to an account, and the function identifier corresponding to an operation defining special purchase terms;

means for recording data representing a link between the function identifier and the transaction;

means for transmitting, to the POS terminal, an authorization code in response to the request; and

means for processing the transaction in accordance with the operation to affect the account.

19. A POS terminal for identifying the terms of a transaction at a point-of-sale, comprising:

means for receiving an account identifier and a function identifier, the account identifier corresponding to an account, the function identifier corresponding to an operation defining special purchase terms;

means for determining a first transaction amount;

means for transmitting a request for authorization, the request including the account identifier, the function identifier and the first transaction amount;

means for receiving an authorization notice including a second transaction amount; and

means for processing the transaction based on the second transaction amount.

20. The POS terminal of claim 19, further comprising means for receiving a request for the function identifier.

21. A credit card central controller for processing a cardholder message, the credit card central controller comprising:

means for receiving a request to process a transaction, the request including a transaction amount, an account identifier and a cardholder message identifier representing a cardholder message;

means for establishing an association between the cardholder message and the transaction; and

means for storing at least one of the cardholder message identifier and the cardholder message, thereby indicating the association between the cardholder message and the transaction.

22. The credit card central controller of claim 21, further comprising means for transmitting a request for the cardholder message.

23. The credit card central controller of claim 21, further comprising means for outputting the cardholder message on a billing statement associated with the account identifier.

24. A computer-readable storage medium encoded with processing instructions for implementing, a method for determining the terms of a transaction, said processing instructions for directing a computer to perform the steps of:

receiving, from a POS terminal, a request to process a transaction, the request including a transaction amount, an account identifier and a function identifier, the account identifier corresponding to an account, and the function identifier corresponding to an operation defining, special purchase terms;

recording data representing a link between the function identifier and the transaction;

transmitting, to the POS terminal, an authorization code in response to the request; and

processing the transaction in accordance with the operation to affect the account.

25. A computer-readable storage medium encoded with processing instructions for implementing a method for identifying the terms of a transaction at a point-of-sale, said processing instructions for directing a computer to perform the steps of:

receiving an account identifier and a function identifier, the account identifier corresponding to an account, the function identifier corresponding to an operation defining special purchase terms;

determining a first transaction amount;

transmitting a request for authorization, the request including the account identifier, the function identifier and the first transaction amount;

receiving an authorization notice including a second transaction amount; and

processing the transaction based on the second transaction amount.

26. A computer-readable storage medium encoded with processing instructions for implementing a method for processing a cardholder message, said processing instructions for directing a computer to perform the steps of:

receiving a request to process a transaction, the request including a transaction amount, an account identifier and a cardholder message identifier representing a cardholder message;

establishing an association between the cardholder message and the transaction; and

storing at least one of the cardholder message identifier and the cardholder message, thereby indicating the association between the cardholder message and the transaction.