Credit instrument and system with automated payment of club, merchant, and service provider fees
First Claim
1. A credit card processing system for allowing a cardholder to automatically charge fees to a club, merchant or service provider, comprising:
- credit card capable of charging point of sale transactions to be posted on a cardholder'"'"'s account;
said credit card having encoded information thereon that associates the cardholder with a plurality of clubs, merchants or service providers for which automated charge transaction requests are initiated by the card provider without requiring the cardholder or the plurality of clubs, merchants or service providers to submit payment authorization or payment requests to the card provider, for each automated charge;
a card issuer database for storing information that identifies the plurality of clubs, merchants, or service providers associated with the cardholder, and that further provides payment information for each associated club, merchant, or service provider;
a card processor for performing the automated charge transaction requests which are for payments due by the cardholder to the clubs, merchants, or service providers in consideration for services or goods;
the card processor accessing the association information and the payment information in the card issuer database in order to perform the automated charge transactions;
the card processor performing the automated charge transaction requests to result in funds being charged to the cardholder'"'"'s credit account and funds being credited to an account of a third party comprising one or more accounts of the clubs, merchants, and service providers;
the card issuer database further storing information of at least one partner that is affiliated with the plurality of clubs, merchants, or service providers;
wherein said credit card is affiliated with a predetermined credit network and issuer, and is accepted for purchases anywhere the predetermined credit network is accepted for purchases.
2 Assignments
0 Petitions
Accused Products
Abstract
An apparatus and methods for a card that allows a cardholder to set up auto-charge payment of dues and fees to a series of clubs, merchants or service providers. The card also may be used for other transactions that accept credit cards. The apparatus includes a database containing information of the associated clubs, merchants and service providers, so that applicants and cardholders can easily configure auto-charging for multiple business concerns in one sitting. The apparatus may process auto-charge transactions in an automated fashion without requiring a cardholder to submit payment authorization or the business concern to submit a charge for each payment. Inconvenience and administrative costs to the cardholder and the business concern are reduced. The system and method provide a competitive advantage to the associated business concerns to secure the initial account and then to maintain it. The system and method encourages card loyalty of both the card members and the business concerns to the card provider.
64 Citations
37 Claims
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1. A credit card processing system for allowing a cardholder to automatically charge fees to a club, merchant or service provider, comprising:
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credit card capable of charging point of sale transactions to be posted on a cardholder'"'"'s account;
said credit card having encoded information thereon that associates the cardholder with a plurality of clubs, merchants or service providers for which automated charge transaction requests are initiated by the card provider without requiring the cardholder or the plurality of clubs, merchants or service providers to submit payment authorization or payment requests to the card provider, for each automated charge;
a card issuer database for storing information that identifies the plurality of clubs, merchants, or service providers associated with the cardholder, and that further provides payment information for each associated club, merchant, or service provider;
a card processor for performing the automated charge transaction requests which are for payments due by the cardholder to the clubs, merchants, or service providers in consideration for services or goods;
the card processor accessing the association information and the payment information in the card issuer database in order to perform the automated charge transactions;
the card processor performing the automated charge transaction requests to result in funds being charged to the cardholder'"'"'s credit account and funds being credited to an account of a third party comprising one or more accounts of the clubs, merchants, and service providers;
the card issuer database further storing information of at least one partner that is affiliated with the plurality of clubs, merchants, or service providers;
wherein said credit card is affiliated with a predetermined credit network and issuer, and is accepted for purchases anywhere the predetermined credit network is accepted for purchases. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A server-based system for processing auto-charges for one or more clubs, merchants or service-providers, comprising:
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a server adapted to interface with user systems for receiving applications and enabling processing of auto-charge transactions for credit accounts;
a monetary processor system for processing point of sale transactions submitted over an interchange;
a dues processor system for processing auto-charges;
a database containing information of a plurality of cardholders including information associating specific cardholders with specific clubs, merchants, or service providers, and further including information describing charges to be processed automatically for associated clubs, merchants or service-providers;
the server based system initiating the auto-charge transactions on behalf of the cardholders and the plurality of clubs, merchants, or service providers by accessing the association information from the database, such that the plurality of clubs, merchants, or services providers do not have to submit a charge request for each transaction and the cardholder does not have to submit authorization for each transaction;
the auto-charge transactions being processed for payments due by cardholders to clubs, merchants, or service providers in consideration for services or goods;
the auto-charge transactions being processed to result in funds being charged to the cardholder'"'"'s credit account and funds being credited to an account of a third party comprising one or more accounts of the clubs, merchants, or service providers; and
the database further storing information of at least one partner that is affiliated with the plurality of clubs, merchants, or service providers. - View Dependent Claims (9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19)
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20. A server-based networked system for processing auto-charges for cardholders associated with a plurality of clubs, merchants or service-providers, comprising:
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a server for receiving applications, processing point of sale transactions and processing auto-charges for a plurality of clubs, merchants or service-providers associated with a plurality of credit account cardholders, wherein the auto-charges comprise transaction requests initiated by the server;
a credit card database accessible by the server which associates specific cardholders with specific ones of the plurality of clubs, merchants, and service providers, and which includes auto-charge payment information for associated clubs, merchants, and service providers;
the server processing the auto-charges by accessing the association information from the credit card database, the auto-charges comprising payments due by a cardholder to the associated clubs, merchants, or service providers in consideration for services or goods, and resulting in funds being charged to the cardholder'"'"'s credit account and funds being credited to the account of a third party comprising one or more accounts of the clubs, merchants, or service providers;
a plurality of user systems for submitting applications;
a network interfacing said server and said plurality of user systems;
the server initiating the auto-charges such that the plurality of clubs, merchants or service-providers are not required to submit a payment request for each auto-charge or the cardholders to submit payment authorization for each auto-charge; and
the database further storing information of at least one partner that is affiliated with the plurality of clubs, merchants, or service providers. - View Dependent Claims (21, 22, 23, 24)
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25. A computer-implemented method for providing a credit card system that processes auto-charges on behalf of cardholders and credits clubs, merchants or service-providers, comprising:
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providing a credit card processing system having a database of cardholder account data;
including in said database information of a plurality of clubs, merchants or service-providers agreeing to auto-charging of dues or fees;
entering data including payment information in said database for an applicant or cardholder associating the applicant or cardholder with a plurality of selected clubs, merchants or service-providers which are to be issued funds automatically without the one or more clubs, merchants or service-providers submitting a payment request for each due or fee and without the cardholder providing payment authorization for each due or fee;
initiating the auto-charge transaction requests by accessing the association data in the database;
issuing the funds automatically by the credit card processing system initiating the auto-charge transaction requests, the transaction requests being for payments due by the cardholder to the associated clubs, merchants, or service providers, in consideration for services or goods, the auto-charge transaction requests resulting in funds being charged to the cardholder'"'"'s credit account and funds being credited to an account of a third party comprising one or more accounts of the clubs, merchants, or service providers; and
including in said database information associating said plurality of clubs, merchants or service providers with at least one common partner. - View Dependent Claims (26, 27, 28, 29, 30, 31)
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32. A computer-implemented method of automatically processing a series of transaction requests based on information in a database for a plurality of cardholders which describes a plurality of clubs, merchants or service-providers to be paid automatically, comprising:
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a credit card provider periodically searching a database to identify a plurality of cardholders who are to be charged a fee or due by one or more clubs, merchants or service-providers without the one or more clubs, merchants or service-providers submitting a payment request for each fee or due and without the cardholders having to submit payment authorizations for each fee or due;
the database including information that associates specific cardholders with specific ones of the plurality of clubs, merchants, and service providers, and that further includes payment information;
generating a batch of transaction requests based on said step of searching, wherein the transaction requests are for payments due by cardholders to associated clubs, merchants, or service providers in consideration for services or goods;
submitting said batch to a transaction processor; and
updating the accounts of said plurality of cardholders based on results reported by said transaction processor, the batch resulting in funds being charged to cardholders'"'"' credit accounts and finds being credited to one or more accounts of third parties comprising the clubs, merchants, and service providers; and
wherein said plurality of clubs, merchants or service providers are associated with at least one common partner. - View Dependent Claims (33, 34, 35, 36, 37)
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Specification