Merchant account activation system

• US 7,103,570 B1
• Filed: 12/28/1999
• Issued: 09/05/2006
• Est. Priority Date: 12/28/1999
• Status: Expired due to Term

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Zirkel, George S., Citarella, Steven, Duncan, John, Morea, Dominic John
• Primary Examiner(s): O'Connor, Gerald J.
• Application Number:
  US09/473,383
• Time in Patent Office: 2,443 Days
• Field of Search: 705/26, 705/27, 705/35, 705/38, 713/1
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A merchant account activation system that includes an Internet server that works in conjunction with a master account file operating on a mainframe computer and an expert computer system that is used to configure point-of-sale terminals. Many of the steps of the activation procedure are performed by a merchant activation routine running on the Internet server, which allows a merchant to apply for a merchant account during an on-line session conducted with the Internet server. The merchant activation routine obtains application information from the applicant during an on-line session, conducts a credit check and “scores” the application as a credit risk during the on-line session. If the application is approved, the merchant activation routine displays a fee schedule and associated terms and conditions to the applicant for acceptance. In response to merchant acceptance of the terms and conditions of a merchant account during an on-line session, the merchant activation routine or an associated computer operated by the acquirer generates identification information associated with the merchant account and the point-of-sale terminal, such as a Merchant Identification Number (MID) and a Termination Identification Number (TID).

Claims

1. A computer-controlled system for configuring a point-of-sale terminal for use in connection with a merchant account during an on-line session with an applicant for the merchant account, comprising:

a network accessible acquirer Internet server that generates a network accessible merchant account activation application user interface online for access by an applicant for a merchant account via an online session with the applicant accessing the acquirer Internet server;

a master account file for storing information corresponding to the merchant account; and

an electronic connection to one or more point-of-sale terminals;

wherein the acquirer Internet server;

displays the merchant account activation application user interface to the applicant during the online session with the applicant;

receives information input by the applicant to the merchant account activation application user interface;

displays information via the user interface relating to one or more selectable point-of-sale terminals for selection by the applicant;

receives information input by the applicant to the merchant account activation application user interface selecting a point-of-sale terminal for use in connection with the merchant account;

determines terms and conditions applicable to the applicant'"'"'s merchant account based on the received information;

displays determined terms and conditions relaring to the administration of the merchant account to the applicant via the user interface;

receives an indication of acceptance of the terms and conditions from the applicant input by the applicant to the merchant account activation application user interface;

responsive to the indication of acceptance of the terms and conditions from the applicant during the on-line session, generates identification information associated with the merchant account and the point-of-sale terminal, the identification information comprising a merchant ID (MID) and a terminal ID (TID);

stores information generated and received during the online session, including the identification information, in the aster account file for use in administration of the merchant account; and

configures the selected point-of-sale terminal by loading the identification information from the master account file via the electronic connection to the selected point-of-sale terminal.

2. The system of claim 1, wherein the terms and conditions include a fee schedule for services relating to the administration of the merchant account.

3. The system of claim 1, wherein the point-of-sale terminal is loaded with the identification information and then shipped to the applicant.

4. The system of claim 1, wherein the point-of-sale terminal is already in possession of the applicant and is configured remotely by a telephone call to a telephone directory number associated with the point-of-sale terminal to reprogram the point-of-sale terminal with the identification information during the telephone call.

5. The system of claim 1, wherein the acquirer Internet server determines a credit risk score for the application and based on the credit risk score establishes the terms and conditions for the merchant account.

6. The system is of claim 1, wherein the acquirer Internet server conducts a credit risk score to determine whether to accept the application;

and

notifies the applicant whether the application has been accepted.

7. The system of claim 1, wherein the acquirer Internet server issues a visitation order requesting a physical visit to the premises of the applicant to verify that the applicant is conducting a type of business input by the applicant in the application.

8. The system of claim 1, wherein the ac Internet server:

prompts the applicant to enter business contact information;

prompts the applicant to enter business premises information;

prompts the applicant to enter business sales data; and

prompts the applicant to enter business owner information.

9. The system of claim 1, wherein the acquirer Internet server prompts the applicant to provide information relating to funding for the charges associated with administering the merchant account.

10. The system of claim 1, wherein the acquirer Internet server:

sends a menu of point-of-sale terminal options to the applicant for display via the user interface;

sends a view control item in association with each option for display via the user interface;

receives a user command input by the applicant via the user interface selecting a particular view control item; and

sends an image depicting the point-of-sale terminal associated with the selected view control item to the applicant for display via the user interface.

11. The system of claim 1, wherein the acquirer Internet server:

receives a business type designation from the applicant;

determines a business risk category associated with the business type designation; and

implements risk adjustment measures based on the business risk category associated with the business type designation.

12. The system of claim 11, wherein the acquirer Internet server:

sends a menu of risk adjustment measures to the applicant for display via the user interface;

receives a user command from the applicant input via the user interface indicating a preferred risk adjustment selection; and

implements the risk adjustment measures based on the preferred risk adjustment selection.

13. The system of claim 11, wherein the acquirer Internet server:

determines a reserve requirement;

sends the reserve requirement to the applicant for display via the user interface; and

receives a user command from the applicant input via the user interrface accepting the reserve requirement.

14. The system of claim 11, wherein the acquirer Internet server:

determines a risk-adjusted fee schedule;

sends the risk-adjusted fee schedule to the applicant for display via the user interface; and

receives a user command from the applicant input via the user interface accepting the risk-adjusted fee schedule.

15. The system of claim 1, wherein the information input by the applicant selecting a point-of-sale terminal for use in connection with the merchant account comprises information selecting a new terminal for the applicant or selecting an existing terminal already in possession of the applicant.

16. A computer-controlled system for configuring a point-of-sale terminal for use in connection with a merchant account during an on-line session with an applicant for a merchant account comprising:

a network accessible acquirer Internet server that generates a network accessible merchant account activation application user interface online for access by an applicant for a merchant account via an online session with the applicant accessing the acquirer Internet server;

a master account file for storing information corresponding to the merchant account; and

a electronic connection to one or more point-of-sale terminals;

wherein the acquirer Internet server;

displays the merchant account activation application user interface to the applicant during the online session with the applicant;

receives information input by the applicant to the merchant account activation application including type of business information, business contact information, business premises information, business sales data, business owner information, and information relating to finding for the charges associated with administering the merchant account;

displays a menu of point-of-sale terminal options and a view control item in association with each option to the applicant via the user interface;

receives a user command input by the applicant via the user interface selecting a particular view control item;

displays an image depicting the point-of-sale terminal associated with the selected view control item to the applicant via the user interface;

receives information input by the applicant via the user interface selecting a point-of-sale terminal for use in connection with the merchant account;

based on information input by the applicant, determines a credit risk score for the application;

determines the terms and conditions applicable to the applicant'"'"'s merchant account including a fee schedule for the merchant account based on the credit risk score;

displays the determined terms and conditions relating to the administration of the merchant account to the applicant via the user interface;

receives an indication of acceptance of the terms and conditions input by the applicant via the user interface;

generates identification information associated with the merchant account and the selected point-of-sale terminal;

stores information generated and received during the online session, including the identification information, in the master account file for use in administration of the merchant account; and

electronically issues a visitation order requesting a physical visit to the premises of the applicant to verify that the applicant is conducting the type of business input by the applicant in the application.

17. The system of claim 16, wherein the selected point-of-sale terminal is loaded with the identification information via the electronic connection and shipped to the applicant.

18. The system of claim 16, wherein the point-of-sale terminal is already in possession of the applicant and is configured remotely by a telephone call to a telephone directory number associated with the point-of-sale terminal to load the point-of-sale terminal with the identification information during the telephone call.

19. A computer-controlled system for configuring a point-of-sale terminal for use in connection with a merchant account during an on-line session with an applicant for a merchant account comprising:

a network accessible acquirer Internet server that generates a network accessible merchant account activation application user interface online for access by an applicant for a merchant account via an online session with the applicant accessing the acquirer Internet server;

a master account file for storing information corresponding to the merchant account; and

an electronic connection to one or more point-of-sale terminals;

wherein the acquirer Internet server;

receives a business type designation input by the applicant via the merchant account activation application user interface;

determines a business risk category associated with the business type designation input by the applicant;

determines risk adjustment measures comprising a reserve requirement and a risk-adjusted fee schedule for services related to administration of the merchant account based on the business risk category associated with the business type designation;

displays terms and conditions relating to the risk adjustment measures to the applicant via the user interface;

receives an indication of acceptance of the terms and conditions input by the applicant via the user interface;

generates identification information associated with the merchant account and the point-of-sale terminal, the identification information comprising a merchant ID (MID) and a terminal ID (TID) associated with a selected point-of-sale terminal;

stores information generated and received during the online session, including the identification information and the risk adjustment measures, in the master account file for administration of the merchant account; and

configures the selected point-of-sale terminal by loading the identification information from the master account file into the selected point-of-sale terminal via the electronic connection.

20. The system of claim 19 wherein acquirer Internet server:

receives information from the applicant via the user interface selecting a point-of-sale terminal for use in connection with the merchant account; and

loads the selected point-of-sale terminal with the identification information.

21. A computer-readable storage medium containing a set of instructions executable by a computer for causing the computer to perform a method for configuring a point-of-sale terminal for use in connection with a merchant account, the method comprising the steps of:

generating a network accessible merchant account activation application for online access by an applicant for a merchant account during an online session with the applicant;

during the on-line session with the applicant for a merchant account,

receiving information input by the applicant to the merchant account activation application,

receiving information input by the applicant to the merchant account activation application selecting a point-of-sale terminal for use in connection with the merchant account,

based on the received information, determining terms and conditions applicable to the applicant'"'"'s merchant account upon acceptance of the merchant account activation application;

displaying such determined terms and conditions to the applicant relating to the administration of the merchant account;

receiving an indication of acceptance of the terms and conditions input by the applicant to the merchant account activation application;

in response to the indication of acceptance of the terms and conditions from the applicant and during the on-line session, generating identification information associated with the merchant account and the point of sale terminal, the identification information comprising a merchant ID (MID) and a terminal ID (TID);

storing information generated and received during the online session, including the identification information in a master account file for administration of the merchant account; and

configuring the selected point of sale terminal by loading the identification information from the master account file into the selected point-of-sale terminal.

22. A computer-readable storage medium containing a set of instructions executable by a computer for causing the computer to perform a method for configuring a point-of-sale terminal for use in connection with a merchant account, during an on line session with an applicant for a merchant account, the method comprising the steps of:

generating a network accessible merchant account activation application for online access by an applicant for a merchant account during an online session with the applicant;

receiving information input by the applicant to the merchant account activation application including type of business information, business contact information, business premises information, business sales data, business owner information, and information relating to finding for the charges associated with administering the merchant account;

displaying a menu of point of sale terminal options, displaying a view control item in associated with each option, receiving a user command input by the applicant selecting a particular view control item, and displaying an image depicting the point of sale terminal associated with the selected view control item;

receiving information input by the applicant selecting a point of sale terminal for use in connection with the merchant account;

determining a credit risk score based on information input by the applicant;

based on the credit risk score, determining terms and conditions applicable to the applicant if accepted including a fee schedule for the merchant account;

displaying the determined terms and conditions to the applicant relating to the administration of the merchant account;

receiving an indication of acceptance of the terms and conditions input by the applicant to the merchant account activation application;

generating identification information associated with the merchant account and the point of sale terminal;

storing information generated and received during the online session, including the identification information, in a master account file for administration of the merchant account; and

electronically issuing a visitation order requesting a physical visit to the premises of the applicant to verify that the applicant is conducting the type of business input by the applicant in the application.

23. A computer-readable storage medium containing a set of instructions executable by a computer for causing the computer to perform a method for configuring a point-of-sale terminal for use in connection with a merchant account, during an on line session with an applicant for a merchant account, the method comprising the steps of:

generating a network accessible merchant account activation application for online access by an applicant for a merchant account during an online session with the applicant;

receiving a business type designation input by the applicant via the merchant account activation application;

determining a business risk category associated with the business type designation input by the applicant;

based on the business risk category associated with the business type designation, determining risk adjustment measures comprising a reserve requirement and a risk adjusted fee schedule for services related to administration of the merchant account;

displaying terms and conditions relating to the risk adjustment measures;

receiving an indication of acceptance of the terms and conditions input by the applicant to the merchant account activation application;

generating identification information associated with the merchant account and the point of sale terminal, the identification information comprising a merchant ID (MID) and a terminal ID (TID) associated with a selected point-of-sale terminal;

storing information generated and received during the online session, including the identification information and the risk adjustment measures, in a master account file for administration of the merchant account; and

configuring the selected point-of-sale terminal by loading the identification information from the master account file into the selected point-of-sale terminal.