Centralized credit interchange system of converting purchase credit awards through credit exchange system for purchase of investment vehicle

• US 5,970,480 A
• Filed: 04/14/1997
• Issued: 10/19/1999
• Est. Priority Date: 04/14/1997
• Status: Expired due to Term

• Current Assignee: Dyan T. Kalina, Vishay Dale Electronics (Vishay Intertechnology Incorporated)
• Original Assignee: Vishay Dale Electronics (Vishay Intertechnology Incorporated)
• Inventors: Kalina, Dyan T.
• Primary Examiner(s): Peeso, Thomas R.
• Application Number:
  US08/839,467
• Time in Patent Office: 918 Days
• Field of Search: 705/14, 705/26, 705/27, 705/37
• US Class Current: 705/37
• CPC Class Codes: B42D 12/00 Book-keeping books, forms or arrangements B42D11/00 takes precedence
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A debt credit award interchange system interfacing with a credit award exchange system for conversion of any form of merchant or creditor credit award resulting from consumer incurring debt due to consumer purchase of goods or services of creditor. The debtor earns a preassigned credit award per credit vehicle utilized and amount of purchased item. At central location of credit award interchange system, secured creditor debt credit award agreement contracts are matched with point of sale transaction purchases, utilizing data processing methods to increment consumer account, summing accumulations; debiting creditors, authorized and confirmed thru interchange system. Interchange system communicates accumulated credit awards to credit award exchange that processes the conversion of credit award into purchase of mutual funds and/or imvestment vehicle of award account holder choice; maintaining open account of award holder for further purchase of investment vehicle as preassigned credit award accumulations direct and providing statements of purchase and periodic statements of account transactions and status.

Claims

1. A method for converting purchase credit awards resulting from a purchase by a consumer of goods or services into an ownership interest in an investment vehicle, the method comprising the steps of:

a. crediting an account of the consumer with the credit awards;

b. accumulating the credit awards in the account; and

c. purchasing the ownership interest in the investment vehicle on behalf of the consumer with the credit awards in the accounts upon the credit awards reaching a predetermined level, the investment vehicle being subject to appreciation or depreciation.

2. The method of claim 1 wherein the investment vehicle is selected from a group of investment vehicles including a mutual fund, a bond, an insurance investment vehicle, and an annuity investment vehicle.

3. The method claim 2 wherein the mutual fund is selected from a group of mutual funds including a stock mutual fund, a money market fund, and a bond mutual fund.

4. The method of claim 1 wherein the purchase credit awards are associated with a credit card and the purchase utilizes the credit card.

5. The method of claim 1 wherein the step of purchasing the ownership interest in the investment vehicle comprises the steps of:

determining a current market value associated with the investment vehicle;

determining an amount of ownership interest that can be purchased in the investment vehicle based upon the accumulated credit awards; and

converting the credit awards into the ownership interest in the investment vehicle.

6. The method of claim 5 wherein the step of converting the credit awards into the ownership interest includes the steps of:

accessing a database to determine legal requirements necessary for consummating the purchase of the ownership interest in the investment vehicle;

generating forms representative of the legal requirements;

forwarding the forms to the purchaser for signature;

receiving the forms from the purchaser, verifying the presence of the signatures, and completing the purchase of the ownership interest in the investment vehicle on behalf of the purchaser.

7. The method of claim 1 further including the steps of:

generating a report for each consumer of the ownership interest, if any, purchased on behalf of the consumer in the investment vehicle; and

forwarding the report to the consumer.

8. The method of claim 7 wherein the steps of generating the report and forwarding the report to the consumer are performed periodically.

9. The method of claim 1 wherein, after the purchase of the ownership interest in the investment vehicle is made, any interest or dividends from the investment vehicle are automatically reinvested in the investment vehicle on behalf of the consumer.

10. A method for converting purchase credit awards resulting from a purchase by a consumer of goods or services into an ownership interest in an investment vehicle, the method comprising the steps of:

a. assessing the merchant an interchange fee associated with the purchase and depositing at least a portion of the interchange fee in an interchange fee account;

b. crediting a credit awards account of the consumer with credit awards associated with the purchase;

c. accumulating credit awards in the credit awards account;

d. upon the credit awards reaching a predetermined value, withdrawing at least a portion of the interchange fee in the interchange fee account;

e. purchasing an ownership interest in the investment vehicle on behalf of the consumer using the portion of the interchange fees withdrawn from the interchange account, with the investment vehicle being subject to appreciation or depreciation.

11. The method of claim 10 wherein the investment vehicle is selected from a group of investment vehicles including a mutual fund, a bond, an insurance investment vehicle, and an annuity investment vehicle.

12. The method claim 11 wherein the mutual fund is selected from a group of mutual funds including a stock mutual fund, a money market fund, and a bond mutual fund.

13. The method of claim 10 wherein the purchase credit awards are associated with a credit card and the purchase utilizes the credit card.

14. The method of claim 10 wherein the step of purchasing the ownership interest in the investment vehicle comprises the steps of:

determining a current market value associated with the investment vehicle;

determining an amount of ownership interest that can be purchased in the investment vehicle based upon the accumulated credit awards; and

converting the credit awards into the ownership interest in the investment vehicle.

15. The method of claim 14 wherein the step of converting the credit awards into the ownership interest includes the steps of:

accessing a database to determine legal requirements necessary for consummating the purchase of the ownership interest in the investment vehicle;

generating forms representative of the legal requirements;

forwarding the forms to the purchaser for signature;

receiving the forms from the purchaser, verifying the presence of the signatures, and completing the purchase of the ownership interest in the investment vehicle on behalf of the purchaser.

16. The method of claim 10 further including the steps of:

generating a report for each consumer of the ownership interest, if any, purchased on behalf of the consumer in the investment vehicle; and

forwarding the report to the consumer.

17. The method of claim 16 wherein the steps of generating the report and forwarding the report to the consumer are performed periodically.

18. The method of claim 17 wherein, after the purchase of the ownership interest in the investment vehicle is made, any interest or dividends from the investment vehicle are automatically reinvested in the investment vehicle on behalf of the consumer.

19. The method of claim 10 wherein a plurality of purchases are made by the consumer, each resulting in an interchange fee being assessed to the merchant, the interchange fees being accumulated, and wherein the purchase of the ownership interest is funded by at least a portion of the accumulated interchange fees.

20. A method for converting credit awards resulting from a purchase by a consumer of goods or services into an ownership interest in an investment vehicle, the method comprising the steps of:

a. crediting an account of the consumer with the credit award;

b. accumulating the credit awards in the account; and

c. periodically purchasing the ownership interest in the investment vehicle on behalf of the consumer with the credit awards, the investment vehicle being subject to appreciation or depreciation.

21. A method for converting credit awards resulting from credit card interest payments by a consumer to a bank into an ownership interest in an investment vehicle, the method comprising the steps of:

a. crediting an account of the customer with the credit awards;

b. accumulating the credit awards in the account; and

c. purchasing the ownership interest in the investment vehicle on behalf of the consumer with the credit awards in the accounts upon the credit awards reaching a predetermined level, the investment vehicle being subject to appreciation or depreciation.

22. An electronic data processing device for converting purchase credit awards resulting from a purchase by a consumer of goods or services into an ownership interest in an investment vehicle, the device comprising:

means for crediting an account of the consumer with the credit awards;

means for accumulating the credit awards in the accounts; and

means for purchasing the ownership interest in the investment vehicle on behalf of the consumer with the credit awards in the accounts upon the credit awards in the account reaching a predetermined level, the investment vehicle being subject to appreciation or depreciation.

23. An electronic data processing device for converting purchase credit awards resulting from a purchase by a consumer of goods or services into an ownership interest in an investment vehicle, the device comprising:

an account processing unit for crediting an account of the consumer with the credit awards;

a credit award accumulation unit for accumulating the credit awards in the accounts; and

an investment vehicle purchase processing unit for purchasing the ownership interest in the investment vehicle on behalf of the consumer with the credit awards in the accounts upon the credit awards in the account reaching a predetermined level, the investment vehicle being subject to appreciation or depreciation.