System and method for a card payment program providing mutual benefits to card issuers and cardholders based on financial performance
First Claim
1. A computer-implemented method, comprising:
- establishing in a computer database a card payment account for an accountholder which provides returns to the accountholder based on a performance of a card issuer according to a pre-designated financial threshold;
wherein said returns are provided based on a portfolio of like accounts demonstrating a performance meeting or exceeding a pre-designated financial threshold during a pre-designated interval;
tracking performance of the portfolio during the interval;
computing the performance of the portfolio for the interval;
comparing the performance of the portfolio during the interval to the pre-designated financial threshold and computing a net return if the threshold is met or exceeded;
computing a share of the net return for each participating accountholder based on a pre-designated formula; and
providing the share to each participating accountholder.
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Abstract
The present invention comprises an apparatus and method for a card payment instrument providing that a share of program profits above a pre-designated level is returned to participating consumers at pre-designated intervals such as annually. Customers respond to an offer to participate in the mutual benefit program. After admission to the program, the card issuer tracks the performance according to the desired financial metric for the participating cardholders. At certain intervals, such as yearly, the card issuer reports out the financial performance for the period. If the financial performance exceeded the pre-designated threshold performance, then returns are distributed to participating cardholders according to a share methodology. The share methodology can provide that returns are allocated among participating cardholders according to various criteria, such as based on spending volume, finance charges, and so forth.
468 Citations
26 Claims
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1. A computer-implemented method, comprising:
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establishing in a computer database a card payment account for an accountholder which provides returns to the accountholder based on a performance of a card issuer according to a pre-designated financial threshold; wherein said returns are provided based on a portfolio of like accounts demonstrating a performance meeting or exceeding a pre-designated financial threshold during a pre-designated interval; tracking performance of the portfolio during the interval; computing the performance of the portfolio for the interval; comparing the performance of the portfolio during the interval to the pre-designated financial threshold and computing a net return if the threshold is met or exceeded; computing a share of the net return for each participating accountholder based on a pre-designated formula; and providing the share to each participating accountholder. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14)
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15. A system for monitoring card account portfolio performance and issuing performance-based returns, comprising:
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an account database storing data of a portfolio of card payment accounts which are eligible for a return based on the portfolio meeting a pre-designated financial threshold for a card issuer over a pre-designated interval; a card transaction processor for processing transactions against said card payment accounts; a financial accounting system for maintaining financial performance information for the card issuer including revenue, cost, and profit data; a data extractor module for deriving financial performance data for participating accountholders having eligible accounts and comparing derived financial performance data to said financial threshold; a share allocation module for allocating a net return based on results of the comparison across the participating accountholders based on a share formula; and a return issuer system for providing the allocated shares of the net return to the participating accountholders. - View Dependent Claims (16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26)
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Specification