Spending account systems and methods

• US 7,213,750 B1
• Filed: 11/19/2004
• Issued: 05/08/2007
• Est. Priority Date: 11/19/2003
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Malnati, Leigh Reynolds, Marchese, Lisa Frances, Klaboe, Dana J., Jagatic, Jason Stephen, Gray, William Jody, Glazer, Elliott, Evans, Peter B., Barnes, Brian T., Taxin, Elizabeth J.
• Primary Examiner(s): LE, THIEN MINH
• Application Number:
  US10/904,639
• Time in Patent Office: 900 Days
• Field of Search: 235/383, 235/379, 235/380, 235/381, 705/2, 705/4, 705/42, 705/35, 705/40, 705/39
• US Class Current: 235/381
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer

Abstract

A system which facilitates the purchase of an item qualifying for pre-tax treatment utilizing at least one flexible spending account (FSA). A host computer may receive a request from a point of sale (POS) device to authorize payment for one or more items. The host computer may process the request to determine if the item qualifies for pre-tax treatment. If the item qualifies for pre-tax treatment, the host computer may transmit payment authorization to the POS device and debit at least one FSA and/or at least one non-FSA account.

Claims

1. A computer-implemented method to facilitate a purchase utilizing a tax-advantaged account, comprising the steps of:

(a) receiving, at a host computer, a request for payment authorization for an item;

(b) determining whether said item qualifies for pre-tax treatment; and

(c) when said item qualifies for pre-tax treatment;

(i) determining at least partial payment authorization for said item,

(ii) transmitting said at least partial payment authorization for said item to a point of sale device, and

(iii) causing the tax-advantaged account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization; and

(d) debiting a non tax-advantaged account for an item not qualifying for pre-tax treatment.

2. The computer-implemented method of claim 1, wherein said item is any pre-tax eligible expense, including, but not limited to, one or more of:

a medical expense;

a dependent care expense;

a childcare expense;

a work-related parking expense; and

a work-related transportation expense.

3. The computer-implemented method of claim 1, wherein said step of receiving a request comprises receiving at least one item identifier to identify said item, wherein said item identifier includes, but is not limited to, one or more of:

merchant name;

price;

a stockkeeping unit (SKU);

or any information in the authorization request.

4. The computer-implemented method of claim 1, wherein said step of receiving a request comprises the step of:

(d) receiving at least one item identifier to identify said item; and

(e) wherein said step of determining at least partial payment authorization comprises the steps of;

(i) matching said at least one item identifier with an item identifier for an item that qualifies for pre-tax treatment, and

(ii) classifying said item as qualifying for pre-tax treatment based on said matching step.

5. The computer-implemented method of claim 1, wherein each step occurs in real-time.

6. The computer-implemented method of claim 1, further comprising receiving a transaction fee from at least one of a merchant transmitting said request for payment authorization to said host computer, said tax-advantaged account, a consumer purchasing said item and an administrator of said tax-advantaged account.

7. The computer-implemented method of claim 1, further comprising crediting a discount amount to said tax-advantaged account.

8. The computer-implemented method of claim 1, wherein causing the one tax-advantaged account to be debited comprises the steps of:

determining a type of flexible tax-advantaged account of one of a first tax-advantaged account and a second tax-advantaged account; and

debiting at least one of said first tax-advantaged account and said second tax-advantaged account according to a type of item matching said type of tax-advantaged account.

9. A method according to claim 1, wherein said tax-advantaged account is a flexible spending account.

10. A computer-implemented method to facilitate a purchase utilizing a flexible spending account, comprising the steps of:

(a) receiving, at a host computer, a request for payment authorization for an item;

(b) determining whether said item qualifies for pre-tax treatment; and

(c) when said item qualifies for pre-tax treatment;

(i) determining at least partial payment authorization for said item,

(ii) transmitting said at least partial payment authorization for said item to a point of sale device, and

(iii) causing the flexible spending account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization, wherein said step of causing the flexible spending account to be debited comprises the steps of;

determining a priority between a first flexible spending account and a second flexible spending account; and

causing at least one of said first flexible spending account and said second flexible spending account to be debited according to said priority.

11. A method according to claim 10, wherein said second flexible spending account is a line of credit.

12. A method according to claim 11, wherein said tax-advantaged account is a flexible spending account.

13. A computer-implemented method to facilitate a purchase utilizing a flexible spending account, comprising the steps of:

(a) receiving, at a host computer, a request for payment authorization for an item;

(b) determining whether said item qualifies for pre-tax treatment; and

(c) when said item qualifies for pre-tax treatment;

(i) determining at least partial payment authorization for said item,

(ii) transmitting said at least partial payment authorization for said item to a point of sale device, and

(iii) causing the flexible spending account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization, wherein causing the flexible spending account to be debited comprises the steps of;

determining a priority between a first flexible spending account and a second flexible spending account; and

causing at least one of said first flexible spending account and said second flexible spending account to be debited according to said priority, wherein said priority is based on at least one of an expiration date of funds, a greater amount of funds, and a smaller amount of funds in at least one of said first flexible spending account and said second flexible spending account.

14. A method according to claim 13, wherein said second flexible spending account is a line of credit.

15. A machine-readable medium having stored thereon a plurality of instructions, said plurality of instructions when executed by a processor, cause said processor to perform a method comprising the steps of:

(a) receiving, at a host computer, a request for payment authorization for an item;

(b) determining whether said item qualifies for pre-tax treatment; and

(c) when said item qualifies for pre-tax treatment;

(i) determining at least partial payment authorization for said item,

(ii) transmitting said at least partial payment authorization for said item to a point of sale device, and

(iii) causing the tax-advantaged account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization; and

(d) debiting a non tax-advantaged account for an item not qualifying for pre-tax treatment.

16. A method according to claim 15, wherein said tax-advantaged account is a flexible spending account.

17. A system configured to facilitate a purchase utilizing at least one tax-advantaged account, comprising:

a host computer configured to;

receive a request for payment authorization for an item,

determine at least partial payment authorization based upon whether said item qualifies for pre-tax treatment,

transmit at least partial payment authorization to a point of sale device when said item qualifies for pre-tax treatment,

cause a tax-advantaged account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization; and

debit a non tax-advantaged account for an item not qualifying for pre-tax treatment; and

a communication device coupled to said host computer to facilitate communication between said host computer and at least one external device.

18. A method according to claim 17, wherein said tax-advantaged account is a flexible spending account.

19. A computer-implemented method to facilitate a purchase utilizing a tax-advantaged account, comprising the steps of:

(a) receiving, at a host computer, a request for payment authorization for an item;

(b) determining whether said item qualifies for pre-tax treatment; and

(c) when said item qualifies for pre-tax treatment;

(i) determining at least partial payment authorization for said item,

(ii) transmitting said at least partial payment authorization for said item to a point of sale device, and

(iii) causing the tax-advantaged account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization, wherein said step of causing the tax-advantaged account to be debited comprises the steps of;

determining a priority between a first tax-advantaged account and a second tax-advantaged account; and

causing at least one of said first tax-advantaged account and said second tax-advantaged account to be debited according to said priority.

20. A method according to claim 19, wherein said second tax-advantaged account is a flexible spending account.

21. A method according to claim 19, wherein said second tax-advantaged account is one of a medical account, a dependent care account, a child care account, health reimbursement account or a flexible spending account.

22. A computer-implemented method to facilitate a purchase utilizing a tax-advantaged account, comprising the steps of:

(a) receiving, at a host computer, a request for payment authorization for an item;

(b) determining whether said item qualifies for pre-tax treatment; and

(c) when said item qualifies for pre-tax treatment;

(i) determining at least partial payment authorization for said item,

(ii) transmitting said at least partial payment authorization for said item to a point of sale device, and

(iii) causing the tax-advantaged account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization, wherein causing the tax-advantaged account to be debited comprises the steps of;

determining a priority between a first tax-advantaged account and a second tax-advantaged account; and

causing at least one of said first tax-advantaged account and said second tax-advantaged account to be debited according to said priority, wherein said priority is based on at least one of an expiration date of funds, a greater amount of funds, and a smaller amount of funds in at least one of said first tax-advantaged account and said second tax-advantaged account.

23. A method according to claim 22, wherein said second tax-advantaged account is a flexible spending account.

24. A method according to claim 22, wherein said second tax-advantaged account is one of a medical account, a dependent care account, a child care account, health reimbursement account or a flexible spending account.

25. A computer-implemented method to facilitate a purchase utilizing a tax-advantaged account, comprising the steps of:

(a) receiving, at a host computer, a request for payment authorization for an item;

(b) determining whether said item qualifies for pre-tax treatment; and

(c) when said item qualifies for pre-tax treatment;

(i) determining at least partial payment authorization for said item, and

(ii) causing the tax-advantaged account to be debited for at least a portion of the purchasing amount of said item based on said payment authorization; and

(d) debiting a non-tax-advantaged account for an item not qualifying for pre-tax treatment.