System and method for calculating expected approval rates

• US 7,309,008 B2
• Filed: 10/23/2006
• Issued: 12/18/2007
• Est. Priority Date: 02/09/2005
• 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: Wong, Yulona Sue, Nigam, Sangarsh, Moore, Kevin L, Madaan, Sanjay, Connelly, David S, Campanaro, Catherine J, Anderson, Gordon Emory
• Primary Examiner(s): HESS, DANIEL A
• Application Number:
  US11/552,059
• Publication Number:
  US 20070040020A1
• Time in Patent Office: 421 Days
• Field of Search: 235/380, 705/38, 705/35, 705/39, 705/40
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

The invention facilitates the computation of expected approval rates based on historic transaction data relating to transaction classes, approved transactions and declined transactions. The invention provides a system and method by which a program administrator for a company may model varying client-imposed limit scenarios in order to determine one or more optimal monthly and/or transactional spending limits. Further, the present invention provides a means for setting varying monthly and/or transaction spending limits for purchases from any number of industries. Providing card members with information regarding optimal spending limits reduces the occurrences of declined credit transactions. A program administrator may also utilize the present invention to provide any number of limit scenarios in order to persuade a card member to increase their client-imposed credit limit to an optimal level thereby reducing the card member'"'"'s inconvenience caused by declined purchase transactions while recapturing lost revenues by the card issuer.

Claims

1. A computer implemented method for facilitating a calculation of an expected transaction account approval rate, said method comprising the steps of:

retrieving account data for a transaction account, wherein said account data includes transaction account approval information, transaction account decline information, and at least one of a monthly limit, transactional limit, option control, and typical usage, and wherein said transaction account is configured to purchase at least one of goods and services; and

,

calculating said expected transaction account approval rate based on said transaction account approval information, said transaction account decline information, and at least one of a monthly limit, transactional limit, option control, and typical usage.

2. The method of claim 1, further comprising receiving a desired modification of at least one of said monthly limit, said transactional limit, said option control, and said typical usage, and calculating said expected transaction account approval rate based on said desired modification.

3. The method of claim 1, further including modifying at least one of a transaction limit, transactional history, periodic variance, transactional variance, preferred supplier threshold, industry restrictions and typical usage and re-calculating said expected transactional approval rate.

4. The method of claim 1, further including modifying said expected transaction account approval rate to obtain revised transactional limits.

5. The method of claim 1, further including modifying said at least one of monthly limit, transactional limit, option control, and typical usage to obtain a revised transactional limit.

6. The method of claim 1, further including preparing a report including said expected transaction account approval rate and at least one of said transaction account approval information, said transaction account decline information, and said at least one of a monthly limit, transactional limit, option control, and typical usage.

7. The method of claim 1, wherein said option control includes at least one of a monthly variance, transaction variance, industry restrictions, and a preferred supplier list threshold.

8. A computer implemented method for obtaining a calculation of an expected transaction account approval rate, said method comprising the steps of:

requesting said expected transaction account approval rate;

causing retrieval of account data for a transaction account, wherein said account data includes transaction account approval information, transaction account decline information, and at least one of a monthly limit, transactional limit, option control, and typical usage, and wherein said transaction account is configured to purchase at least one of goods and services;

causing a calculation of said expected transaction account approval rate based on said transaction account approval information, said transaction account decline information, and at least one of a monthly limit, transactional limit, option control, and typical usage; and

,

receiving said expected transaction account approval rate.

9. A computer implemented method for facilitating a calculation of a transactional limit based upon an expected transaction account approval rate, said method comprising the steps of:

retrieving account data for said transaction account, wherein said account data includes transaction account approval information, transaction account decline information, and at least one of a monthly limit, transactional limit, option control, and typical usage, and wherein said transaction account is configured to purchase at least one of goods and services; and

,

calculating said transactional limit based on said transaction account approval information, said transaction account decline information and at least one of a monthly limit, transactional limit, option control, and typical usage.

10. The method of claim 9, further comprising receiving a desired modification of at least one of said monthly limit, said transactional limit, said option control, and said typical usage, and calculating said transactional limit based on said desired modification.

11. The method of claim 9, wherein said step of calculating said transactional limit further comprises calculating said transactional limit based upon an at least one of an expected transaction approval rate, a transactional history, periodic variance, transactional variance, preferred supplier threshold, industry restrictions and typical usage.

12. The method of claim 9, wherein said option control includes at least one of a monthly variance, transaction variance, industry restrictions, and a preferred supplier list threshold.