Credit card billing system for identifying expenditures on a credit card account

• US 6,353,811 B1
• Filed: 01/19/2000
• Issued: 03/05/2002
• Est. Priority Date: 11/18/1998
• Status: Expired due to Term

• Current Assignee: Steven I. Weissman
• Original Assignee: Steven I. Weissman
• Inventors: Weissman, Steven I.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Elisca, Pierre E.
• Application Number:
  US09/487,925
• Time in Patent Office: 776 Days
• Field of Search: 705/30, 705/31, 705/32, 705/33, 705/34, 705/40, 705/16, 705/17, 705/39, 705/35
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A data processing system and method are provided for allocating all expenditures, accrued interest attributable to each expenditure, and payments made by respective credit cardholders, to sub-accounts specifically designated by the cardholder. In a preferred embodiment, at the time of each expenditure, the cardholder electronically enters the sub-account to which the expenditure is to be allocated with the use of an electronic device having a keypad and display. The data processing system allocates to each designated sub-account all expenditures specified, as well as all interest charges that accrue as to each designated sub-account to which the interest charges are attributable. The data processing system further allocates payments made by the cardholder to the designated sub-account(s) according to the cardholder'"'"'s instructions and calculates interest charges allocable to each designated sub-account as adjusted after each payment. The data processing system also tracks and calculates all expenditures and payments on a cumulative basis (i.e., without regard to the sub-accounts) so that monthly or other period billing statements will reflect cumulative expenditures for the billing period, and prior outstanding account balances and credits. The system also calculates and generates a breakdown of new expenditures to each sub-account for the billing period, as well as cumulative outstanding balances on each sub-account.

Claims

1. A data processing system for managing and producing statements for a credit card account of a cardholder comprising:

first means operable by the cardholder for electronically entering one or more sub-accounts, designated by the cardholder, to which expenditures charged to the credit card account are to be allocated, and said first means further including means for electronically transmitting said entered sub-accounts to a processing location at the time of each expenditure;

second means for processing data for said credit card account including each of said designated sub-accounts;

third means for storing said data on a storage medium;

fourth means for processing said data, said processing including;

(i) allocating said expenditure transactions to said one or more designated sub-accounts; and

(ii) allocating finance charges among said one or more designated sub-accounts to which said finance charges are attributable;

fifth means for processing said data, said processing including allocating payments made by the cardholder to said one or more designated sub-accounts; and

sixth means for processing periodic statements, said processing including;

(i) calculating said expenditure transactions, said finance charges, and said payments made by the cardholder;

(ii) allocating said calculated expenditure transactions, said calculated finance charges and said calculated payments to said one or more designated sub-accounts; and

(iii) generating the periodic statements including a report showing said calculated expenditure transactions, said calculated finance charges, and said calculated payments on both a sub-account basis and a cumulative basis for the credit card account.

2. A data processing system as recited in claim 1 wherein said sixth means further comprises:

means for identifying said expenditure data including said expenditure transactions and said payments according to specified time periods; and

means for retrieving said expenditure data according to said specified time periods.

3. A data processing system as recited in claim 1 wherein said sixth means further comprises:

means for calculating a total of said expenditure transactions, said finance charges and credits for the entire credit card account on a cumulative basis.

4. A data processing system as recited in claim 3 wherein said sixth means further comprises:

means for calculating a total of said expenditure transactions, said finance charges and said credits for each of said one or more designated sub-accounts over a specified period.

5. A data processing system as recited in claim 4 wherein said second means further comprises:

means for retrieving from said storage medium said data for each of said one or more designated sub-accounts;

means for correcting and updating said data for each of said one or more designated sub-accounts;

means for inputting and storing on said storage medium data regarding increases or decreases in said credit card account data and said data for each of said one or more designated sub-accounts;

means for retrieving said data from said storage medium including said credit card account data and data for each of said one or more designated sub-accounts, said means for retrieving being structured to permit retrieval of said data according to specified billing periods, total expenditures, and credits for said credit card account and for each of said one or more designated sub-accounts;

means for calculating and processing said data on a daily basis to obtain aggregate year-end reports showing a total of said expenditure transactions and said credits for said credit card account and for each of said one or more designated sub-accounts; and

means for storing the data regarding said aggregate year-end report on said storage medium.

6. A data processing system as recited in claim 1 wherein said means for electronically entering said designated one or more sub-accounts includes a smart card.

7. A data processing system as recited in claim 6 wherein said smart card comprises:

means for entering said designated one or more sub-accounts;

means for selecting said designated one or more sub-accounts;

means for presenting said entered or selected designated one or more sub-accounts in a machine-readable form to an external system.

8. A data processing system as recited in claim 7 wherein said smart card comprises:

a central processing unit;

memory means suitable for encapsulating within a small flexible plastic card about the size of a credit card for storing a plurality of said sub-accounts and the identification of the sub-account to which each expenditure is assigned by the user;

a power supply system;

a display coupled to the central processing unit;

a keyboard for entering and selecting data including said designated one or more sub-accounts;

an interface for transferring input/output signals, including the designated sub-account to which each expenditure is assigned, between the smart card and an external system such as a card reader or a merchant'"'"'s point of sale system; and

an input/output port.

9. A data processing system as recited in claim 1 wherein said means for electronically entering said designated one or more sub-accounts comprises an electronic wallet.

10. A data processing system as recited in claim 9 wherein said electronic wallet comprises:

means for storing a plurality of said sub-accounts;

means for selecting or entering said designated one or more sub-accounts;

means for communication with a credit card having memory means and;

means for transferring said selected designated one or more sub-accounts to said credit card memory means in a form that is machine-readable by an external system such as a card reader or a merchant'"'"'s point of sale system.

11. A data processing system as recited in claim 10 wherein said electronic wallet further comprises:

display means for displaying said designated one or more sub-accounts;

a keypad for entering said designated one or more sub-accounts to said credit card memory means in a form that is machine-readable by an external system such as a card reader or a merchant'"'"'s point of sale system; and

means for scrolling through said stored plurality of sub-accounts.

12. A method for managing and producing statements for a credit card account of a cardholder, said method comprising the steps of:

designating, at times of making expenditures, one or more expenditure groupings on a single credit card account, to which each expenditure is to be allocated in accordance with the accounting needs of the cardholder;

electronically entering said designated one or more expenditure groupings using an electronic device operable by the cardholder, and transmitting from said electronic device said entered one or more expenditure groupings to a processing location at the time of each expenditure;

processing said data, including said expenditures, for said credit card account including each of said designated expenditure groupings;

storing said data on a storage medium;

processing said data including the further steps of;

(i) allocating said expenditures to said one or more designated expenditure groupings; and

(ii) allocating finance charges among said one or more designated expenditure groupings to which said finance charges are attributable;

processing said data including allocating payments made by the cardholder to said one or more designated expenditure groupings; and

processing periodic statements including the further steps of;

(i) calculating said expenditures, said finance charges, and said payments made by the cardholder;

(ii) allocating said calculated expenditures, said calculated finance charges, and said calculated payments to said one or more designated expenditure groupings; and

(iii) generating the periodic statements including providing a report showing said calculated expenditures, said calculated finance charges, and said calculated payments on both an expenditure grouping basis and a cumulative basis for the credit card account.

13. The method as recited in claim 12 further including the steps of:

identifying said data including said expenditures and said payments according to specified time periods; and

retrieving said data according to said specified time periods.

14. The method as recited in claim 12 wherein said step of processing periodic statements further includes the step of:

calculating a total of said expenditures, said finance charges, and credits for the entire credit card account on a cumulative basis.

15. The method as recited in claim 12 wherein said step of processing periodic statements further includes the step of:

calculating a total of said expenditures, said finance charges, and said credits for each of said one or more designated expenditure groupings over a specified period.

16. The method as recited in claim 15 wherein said step of processing data for said credit card account includes the further steps of:

retrieving from said storage medium said data for each of said one or more designated expenditure groupings;

correcting and updating said data for each of said one or more designated expenditure groupings;

inputting and storing on said storage medium data regarding increases or decreases in said credit card account data and said data for each of said one or more designated expenditure groupings;

retrieving said data from said storage medium including said credit card account data and data for each of said one or more designated expenditure groupings, said step of retrieving further including retrieving said data according to specified billing periods, total charges, and credits for said credit card account and for each of said one or more designated expenditure groupings;

calculating and processing said data on a daily basis to obtain aggregate year-end reports showing a total of said expenditures and said credits for said credit card account and for each of said one or more designated expenditure groupings; and

storing the data regarding said aggregate year-end report on said storage medium.

17. The method as recited in claim 12 wherein said step of providing an electronic device includes providing a smart card.

18. The method as recited in claim 17 further comprising the steps of:

entering said designated one or more expenditure groupings into a memory of said smart card;

subsequently selecting said designated one or more expenditure grouping on said smart card;

presenting said entered or selected designated one or more expenditure groupings in a machine-readable form to an external system.

19. The method as recited in claim 18 further comprising the steps of:

providing said smart card with a central processing unit;

providing said smart card with memory means suitable for encapsulating within a small flexible plastic card about the size of a credit card for storing a plurality of said expenditure groupings and the identification of the expenditure grouping to which each expenditure is assigned by the user;

providing said smart card with a power supply system;

providing said smart card with a display coupled to the central processing unit;

providing said smart card with a keyboard for entering data for entering and selecting said data, including said designated one or more expenditure groupings;

providing said smart card with an interface for transferring input/output signals, including the designated expenditure grouping to which each expenditure is assigned, between the smart card and an external system such as a card reader or a merchant'"'"'s point of sale system; and

providing said smart card with an input/output port.

20. The method as recited in claim 12 wherein said step of providing electronic device includes providing an electronic wallet.

21. The method as recited in claim 20 further comprising the steps of:

providing said electronic wallet with means for storing a plurality of said expenditure groupings;

providing said electronic wallet with means for selecting or entering said designated one or more expenditure groupings;

providing said electronic wallet with means for communication with a credit card having memory means; and

providing said electronic wallet with means for transferring said selected designated one or more expenditure groupings to said credit card memory means in a form that is machine-readable by an external system such as a card reader or a merchant'"'"'s point of sale system.

22. The method as recited in claim 21 further comprising the steps of:

providing said electronic wallet with display means for displaying said designated one or more expenditure groupings;

providing said electronic wallet with a keypad for entering said designated one or more expenditure groupings to said credit card memory means in a form that is machine-readable by an external system such as a card reader or a merchant'"'"'s point of sale system; and

providing said electronic wallet with means for scrolling through said stored plurality of expenditure groupings.