Internet-based credit interchange system of converting purchase credit awards through credit exchange system for purchase of investment vehicle

• US 6,243,688 B1
• Filed: 08/25/1999
• Issued: 06/05/2001
• Est. Priority Date: 04/14/1997
• Status: Expired due to Term

• Current Assignee: Dyan T. Kalina
• Original Assignee: Dyan T. Kalina
• Inventors: Kalina, Dyan T.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Lastra, Daniel
• Application Number:
  US09/383,100
• Time in Patent Office: 650 Days
• Field of Search: 705/14, 705/26, 705/27, 705/37
• US Class Current: 705/14.18
• 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 30/0216 Investment accounts
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• 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

An Internet-based purchase credit award interchange center is described which interfaces with a credit award exchange center for conversion of any form of merchant or purchase credit award resulting from customer purchase of goods or services to investment in a mutual fund and/or investment vehicle utilizing computer data processing methods. Preassigned purchase credit accumulations earned by a consumer are exchanged from a merchant or creditor through or combination of credit cards, co-branded credit cards, PIN cards, debit and smart cards, coupons, stamps, proof of purchase, rebates, or any form of purchase award of merchant or creditors choice for an investment in a mutual fund or other investment vehicle. A specific implementation is described wherein a credit card account having investment credit awards is issued through the Internet to a customer. While inputting information through the Internet necessary for establishing the credit card account, the customer also provides any information needed to authorize the purchase of investment vehicles on his or her behalf. Any forms that need to be signed by the customer to authorize purchase of the investment vehicles may be printed out by the customer. The customer may also select, via the Internet, particular investment vehicles out of a group of possible investment vehicles. Subsequent use of the credit card by the customer automatically results in accrual of credit award accumulations in the selected investment vehicle.

Claims

1. A method for establishing and processing a purchase award account wherein purchase credit awards resulting from a financial transaction made by a consumer using the purchase award account is exchanged into an ownership interest in an investment vehicle, the method comprising the steps of:

receiving information from a consumer needed to establish the purchase award account;

establishing the purchase award account on behalf of the consumer;

receiving information pertaining to financial transactions made by the consumer using the purchase award account;

crediting the account of the consumer with credit awards;

accumulating the credit awards in the account; and

purchasing an ownership interest in the investment vehicle on behalf of the consumer with the credit awards in the account 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 step of receiving information from a consumer includes the step of receiving the information over the Internet.

3. The method of claim 2 wherein the step of receiving information from a consumer includes the step of providing forms for the signature by the consumer to authorize purchase of investment vehicles on behalf of the consumer, said forms being printable by the consumer from a web site via the Internet.

4. The method of claim 2 wherein the step of receiving information from a consumer includes the step of receiving a selection of a particular investment vehicle from the consumer via the Internet.

5. The method of claim 1 wherein the investment vehicle is selected from a group of investment vehicles including a mutual fund, a bond, a stock, an insurance investment vehicle, an annuity investment vehicle, a money market fund and a real estate investment vehicle.

6. 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.

7. The method of claim 1 wherein the purchase award account is a credit card account.

8. The method of claim 1 wherein the financial transaction is a purchase from a merchant.

9. A method for establishing and processing a purchase award account wherein purchase credit awards resulting from financial transaction by a consumer using the purchase award account is exchanged into an ownership interest in an investment vehicle, the method comprising the steps of:

receiving information from a consumer needed to establish the purchase award account;

establishing the purchase award account on behalf of the consumer;

receiving information pertaining to financial transactions made by the consumer with a third party using the purchase award account;

assessing the third party a fee associated with the purchase and depositing at least a portion of the fee in a fee account;

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

accumulating credit awards in the credit awards account;

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

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

10. The method of claim 9 wherein the step of receiving information from a consumer includes the step of receiving the information over the Internet.

11. The method of claim 10 wherein the step of receiving information from a consumer includes the step of providing forms for the signature by the consumer to authorize purchase of investment vehicles on behalf of the consumer, said forms being printable by the consumer from a web site via the Internet.

12. The method of claim 10 wherein the step of receiving information from a consumer includes the step of receiving a selection of a particular investment vehicle from the consumer via the Internet.

13. The method of claim 9 wherein the investment vehicle is selected from a group of investment vehicles including a mutual fund, a bond, a stock, a money market fund, an insurance investment vehicle, a real estate vehicle and an annuity investment vehicle.

14. The method of claim 9 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 9 wherein a plurality of financial transactions are made by the consumer, each resulting in a fee being assessed to the third party, the fees being accumulated, and wherein the purchase of the ownership interest is funded by at least a portion of the accumulated fees.

16. The method of claim 9 wherein the third party is a merchant, real estate broker, real estate agent, credit card bank or investment entity.

17. The method of claim 9 wherein the third party is a merchant and the fee is an interchange fee.

18. The method of claim 9 wherein the fee is a portion of a revenue share of the third party.

19. An electronic data processing device for establishing and processing a purchase award account wherein purchase credit awards resulting from a financial transaction by a consumer using the purchase award account is exchanged into an ownership interest in an investment vehicle, the device comprising:

means for receiving information from a consumer needed to establish the purchase award account;

means for establishing the purchase award account on behalf of the consumer;

means for receiving information pertaining to financial transaction made by the consumer using the purchase award account;

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.

20. An electronic data processing device for establishing and processing a purchase award account wherein purchase credit awards resulting from a financial transaction by a consumer using the purchase award account is exchanged into an ownership interest in an investment vehicle, the device comprising:

an account establishing unit for receiving information from a consumer needed to establish the purchase award account, establishing the purchase award account on behalf of the consumer;

an account processing unit for receiving information pertaining to financial transaction made by the consumer using the purchase award account and 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.