System and method for recovering refundable taxes

• US 6,546,373 B1
• Filed: 01/18/1999
• Issued: 04/08/2003
• Est. Priority Date: 01/18/1999
• Status: Expired due to Term

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Cerra, Peter J.
• Primary Examiner(s): Millin, Vincent
• Assistant Examiner(s): Kanof, Pedro R.
• Application Number:
  US09/232,555
• Time in Patent Office: 1,541 Days
• Field of Search: 705/19, 705/39, 705/21
• US Class Current: 705/19
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/207 Tax processing
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system for recovering refundable taxes such as value-added taxes (VAT) uses a transaction card, such as a credit or debit or electronic cash card, to record purchases made by a traveler that are subject to VAT in a foreign country. The traveler loads the transaction card with a software application that is able to record the purchases subject to VAT. The traveler uses the card to make purchases in the foreign country, and the card calculates and accumulates the VAT subject to refund. When leaving the foreign country, the traveler inserts the card into a terminal, the software application reads the VAT subject to refund, and the traveler selects whether to receive the refunded VAT in cash in local currency or in the currency of the country in which the traveler resides (“home currency”), as cash value on the card (if a cash or debit card), as a credit on the card (if a credit card), or by check in local or home currency.

Claims

1. A method for recovering a refundable tax related to a purchase transaction using a transaction card, comprising the steps of:

storing a tax recovery application on said card;

storing on said card purchase transaction data related to said purchase transaction; and

calculating on said card, in response to said purchase transaction data, said refundable tax, using said tax recovery application.

2. The method according to claim 1 further comprising the step of providing said refundable tax to a user of said card.

3. The method according to claim 2 wherein said step of providing said refundable tax to said card user is selected from the group consisting of dispensing cash to said card user, adding cash value to said card, crediting the credit card account of said user with the value of said refundable tax, and issuing a check to said card user.

4. The method according to claim 2 wherein said refundable tax can be refunded in either the currency of a taxing country from which said tax is refunded or the currency of the country in which said card user resides.

5. The method according to claim 1 wherein said refundable tax is a value-added tax.

6. The method according to claim 1 wherein said tax recovery application storing step comprises the steps of:

determining a home country of a user of said card; and

placing said tax recovery application on said card.

7. The method according to claim 1 wherein said tax recovery application storing step can be performed either at the time said card is obtained or after said card is obtained.

8. The method according to claim 1 wherein said related purchase transaction data comprise:

the date of said transaction;

the price charged for said transaction;

the country levying said refundable tax on said purchase; and

the amount of said refundable tax paid in association with said transaction.

9. The method according to claim 1 wherein said calculating step comprises the steps of:

determining whether said purchase transaction is subject to said refundable tax;

calculating the amount of refundable tax associated with said transaction; and

adding said refundable tax amount to an amount of refundable tax stored in a memory register of said card.

10. The method according to claim 1 wherein said tax recovery application can be used to recover refundable taxes paid to more than one country.

11. A system for recovering a refundable tax related to a purchase transaction, said system comprising:

a transaction card;

a transaction terminal for inserting said card, executing said purchase transaction, and generating purchase transaction data; and

a tax recovery application stored on said card which calculates on said card, in response to said purchase transaction data, said refundable tax.

12. The system according to claim 11 further comprising means for providing said refundable tax to a user of said card.

13. The system according to claim 11 wherein said refundable tax is a value-added tax.

14. The system according to claim 11 wherein said transaction terminal transfers said tax recovery application from an application provider to said card.

15. The system according to claim 11 wherein said tax recovery application is stored on said card either at the time said card is obtained or after said card is obtained.

16. A transaction card for recovering a refundable tax related to a purchase transaction, said card comprising:

means for storing a tax recovery application;

means for transferring data related to said purchase transaction from an electronic purchasing terminal to said card;

means for calculating on said card, in response to said purchase transaction data, said refundable tax, using said tax recovery application; and

means for transferring refundable tax data from said card to an electronic refund terminal.

17. The card as specified in claim 16 further comprising means for storing the cash value of said refundable tax.

18. The card as specified in claim 17 wherein said cash value is stored in either the currency of a taxing country from which said tax is refunded or the currency of the country in which a user of said card resides.

19. The card as specified in claim 16 wherein said refundable tax is a value-added tax.

20. The card as specified in claim 16 wherein said electronic refund terminal is selected from the group consisting of an automated teller machine-type terminal, a computer connected to the Internet, and a computer connected via a modem to a provider of said tax recovery application.