Method and system for processing a financial transaction

• US 7,630,937 B1
• Filed: 04/30/2008
• Issued: 12/08/2009
• Est. Priority Date: 04/30/2008
• Status: Active Grant

• Current Assignee: Intuit, Inc.
• Original Assignee: Intuit, Inc.
• Inventors: Power, Michael, Subramanian, Harish Krishnan, Mo, See Yew
• Primary Examiner(s): Cheung; Mary
• Assistant Examiner(s): Badii; Behrang
• Application Number:
  US12/112,766
• Time in Patent Office: 587 Days
• Field of Search: 705/34, 705/40
• US Class Current: 705/39
• 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 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/04 Billing or invoicing

Abstract

A method for performing a financial transaction that includes identifying a plurality of payment options associated with a payer executing the financial transaction, wherein each of the plurality of payment options is linked to a financial account of the payer, obtaining cost data and benefit data for each of the plurality of payment options, wherein the cost data includes a cost of using the payment option for the financial transaction and the benefit data includes a benefit of using the payment option for the financial transaction, selecting a preferred payment option from the plurality of payment options for the financial transaction based on the cost data and the benefit data, and processing the financial transaction using the preferred payment option to obtain a transaction confirmation.

Claims

1. A method for performing a financial transaction comprising:

identifying, by at least one computing device, a plurality of payment options associated with a payer executing the financial transaction, wherein each of the plurality of payment options is linked to a financial account of the payer;

gathering, by the at least one computing device, cost data and benefit data for each of the plurality of payment options, wherein the cost data comprises a cost of using the payment option for the financial transaction and the benefit data comprises a benefit, received by the payer, of using the payment option for the financial transaction;

selecting, by the at least one computing device, a preferred payment option from the plurality of payment options for the financial transaction based on the cost data and the benefit data, wherein selecting the preferred payment option comprises;

identifying an initial contender group comprising the plurality of payment options;

determining whether compliance with a rule is mandatory;

eliminating, from the contender group when compliance to the rule is mandatory, at least one payment option of the plurality of payment option based on a violation of the rule by the cost data and the benefit data for the at least one payment option to create a revised contender group;

eliminating, from the contender group when compliance to the rule is not mandatory, the at least one payment option based on the violation of the rule to create the revised contender group when the contender group comprises a payment option of the plurality of payment options after eliminating the at least one payment option;

generating a score for each of the plurality of payment options in the revised contender group, wherein the score is generated by comparing the cost data and the benefit data of the payment option with a selection criteria, wherein the selection criteria defines a goal of the payer, wherein generating the selection criteria comprises;

identifying a cost of using each of the plurality of payment options during a specified type of financial transaction;

assigning a first point value to the cost based on the effect of the cost on the specified type of financial transaction;

identifying a benefit of using each of the plurality of payment options during the specified type of financial transaction;

assigning a second point value to the benefit based on the effect of the benefit on the specified type of financial transaction; and

defining the selection criteria for the specified type of financial transaction by the first point value and the second point value; and

selecting, as the preferred payment option, a payment option having an optimal score from the plurality of payment options in the revised contender group;

displaying the preferred payment option for the payer; and

processing the financial transaction using the preferred payment option, when accepted by the payer, to obtain a transaction confirmation.

2. The method of claim 1, wherein processing the financial transaction comprises purchasing a product at a physical location of a payee.

3. The method of claim 1, wherein the cost data and the benefit data comprises at least one selected from a group consisting of payer forecasted data, financial account specific data, and payee payment option data.

4. The method of claim 3, wherein the payer forecasted data identifies a projected income of the payer and a projected expense of the payer,

wherein the financial account specific data comprises a credit limit for the financial account, a current balance of the financial account, and a closing date, and

wherein the payee payment option data comprises an identifier of whether the payee accepts the payment option, a transaction fee paid by the payee to use the payment option, and a payer preferred payee identifier.

7. The method of claim 1, wherein the rule is defined by the payer of the financial transaction.

8. The method of claim 1, wherein the rule is defined by the payee of the financial transaction.

9. The method of claim 4, wherein the cost data and the benefit data further comprises contractual data identifying a reward for using the payment option for the financial transaction, an interest rate, and an annual percentage rate.

5. A computer readable medium comprising computer readable program code for causing a computing device to process a financial transaction between a payer and a payee by:

identifying a plurality of payment options associated with the payer executing the financial transaction, wherein each of the plurality of payment options is linked to a financial account of the payer;

gathering cost data and benefit data for each of the plurality of payment options, wherein the cost data comprises a cost of using the payment option for the financial transaction and the benefit data comprises a benefit of using the payment option for the financial transaction;

selecting a preferred payment option from the plurality of payment options for the financial transaction based on the cost data and the benefit data, wherein selecting the preferred payment option comprises;

identifying an initial contender group comprising the plurality of payment options;

determining whether compliance with a rule is mandatory;

eliminating, from the contender group when compliance to the rule is mandatory, at least one payment option of the plurality of payment option based on a violation of the rule by the cost data and the benefit data for the at least one payment option to create a revised contender groups

eliminating from the contender group when compliance to the rule is not mandatory, the at least one payment option based on the violation of the rule to create the revised contender group when the contender group comprises a payment option of the plurality of payment options after eliminating the at least one payment option;

generating a score for each of the plurality of payment options in the revised contender group, wherein the score is generated by comparing the cost data and the benefit data of the payment option with a selection criteria, wherein the selection criteria defines a goal of the payer, wherein generating the selection criteria comprises;

identifying a cost of using each of the plurality of payment options during a specified type of financial transaction;

assigning a first point value to the cost based on the effect of the cost on the specified type of financial transaction;

identifying a benefit of using each of the plurality of payment options during the specified type of financial transaction;

assigning a second point value to the benefit based on the effect of the benefit on the specified type of financial transaction; and

defining the selection criteria for the specified type of financial transaction by the first point value and the second point value; and

selecting, as the preferred payment option, a payment option having an optimal score from the plurality of payment options in the revised contender group; and

processing the financial transaction using the preferred payment option to obtain a transaction confirmation.

6. The computer readable medium of claim 5, wherein the computing device processes the financial transaction by completing the financial transaction with the payee at a physical location of the payee.

10. The computer readable medium of claim 5, wherein the rule is defined by the payer of the financial transaction.

11. The computer readable medium of claim 5, wherein the rule is defined by the payee of the financial transaction.

12. The computer readable medium of claim 5, wherein the cost data and benefit data comprises at least one selected from a group consisting of payer forecasted data, financial account specific data, and payee payment option data.

13. The computer readable medium of claim 12, wherein the payer forecasted data identifies a projected income of the payer and a projected expense of the payer,

wherein the financial account specific data comprises a credit limit for the financial account, a current balance of the financial account, and a closing date, and

wherein the payee payment option data comprises an identifier of whether the payee accepts the payment option, a transaction fee paid by the payee to use the payment option, and a payer preferred payee identifier.