System and method for providing extra lines of credit

• US 7,689,502 B2
• Filed: 02/12/2001
• Issued: 03/30/2010
• Est. Priority Date: 02/12/2001
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Ruh, Colin Jeffrey, Walker, Philip G., Lilly, Joseph D., York, Jeff G.
• Primary Examiner(s): Nguyen; Nga B.
• Application Number:
  US09/780,468
• Publication Number:
  US 20020156723A1
• Time in Patent Office: 3,333 Days
• Field of Search: 705/21, 705/26, 705/27, 705/35, 705/38, 705/39, 705/14, 705/36, 705/37, 705/40, 705/41
• US Class Current: 705/38
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0239 Online discounts or incentives
• CPC Class Codes: G06Q 30/0277 Online advertisement
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A system and method for upgrading existing credit cards with additional lines of credit is disclosed. Credit information associated with customers holding credit cards issued by a credit card issuer are analyzed to determine a level of risk associated with each customer. One or more extra line of credit may be established for selected customers based on the determined level of risk associated with each customer. Each extra credit line may be exclusively associated with a selected set of vendors that have a partnership agreement with the credit card issuer. The credit card issuer may allow customers to select vendors to be associated with the extra credit line or may automatically choose vendors for selected customers. Customers with established extra credit lines may purchase goods and/or service directly from vendor sites or at the credit card issuer'"'"'s web sites. Purchases at selected vendor sites may be automatically applied to a customer'"'"'s newly established extra credit line. Additionally, a customer may choose to apply purchases to their extra credit lines or their primary line of credit.

Claims

1. A method, implemented using a computer, for providing at least one extra credit line to an existing credit card account, comprising:

determining, using the computer, a target customer group from a set of customers, wherein each customer in the set of customers holds an existing credit card account issued by a credit card issuer;

presenting, using the computer, an offer for an extra credit line to each customer in the target customer group;

processing, using the computer, responses to the offers from customers in the target customer group and activating, using the computer, at least one extra line of credit to the existing credit card account of each customer that has responded to the offer for extra credit; and

notifying, using the computer, each customer who has responded to the extra credit offer of an activated status of the at least one extra credit line associated with the customer'"'"'s credit card account.

2. The method of claim 1, wherein the target customer group includes at least one web site customer that has accessed a web site offered by the credit card issuer, and wherein presenting offers includes:

presenting the offer for extra credit on a page included in the web site; and

receiving a response from the web site customer through the web site,

and further wherein notifying each customer includes presenting a message indicating the activated status of the extra credit line on another web page.

3. The method of claim 1, wherein the target customer group includes at least one point of sale customer that attempts to perform a purchase transaction at a point of sale terminal associated with a vendor, and wherein presenting offers further includes:

sending a message indicating the offer for extra credit to the point of sale terminal;

presenting the offer to the point of sale customer at the point of sale terminal; and

processing a response to the offer from the point of sale customer.

4. The method of claim 3, wherein presenting the offer to the point of sale customer further includes:

printing the offer for extra credit on a sales receipt associated with the purchase transaction.

5. The method of claim 3, wherein presenting the offer to the point of sale customer further includes:

displaying a message on a display at the point of sale terminal, wherein the message indicates to a user of the point of sale terminal to notify the point of sale customer of the offer for extra credit.

6. The method of claim 1, wherein processing responses includes:

associating at least one vendor with the at least one extra line of credit that has been activated for each customer'"'"'s credit card account, wherein the at least one extra line of credit may only be used for purchases that are associated with the at least one vendor.

7. The method of claim 6, wherein associating at least one vendor with each extra line of credit that has been activated for each customer'"'"'s credit card account further includes:

determining a set of vendors to be associated with each customer'"'"'s extra line of credit based on customer profile information; and

adding the set of vendors to a customer vendor table associated with each customer who has responded to offer for extra credit.

8. The method of claim 7, wherein determining the set of vendors further includes:

presenting a list of vendors to each customer, and

receiving from each customer vendors selected from the list of vendors.

9. The method of claim 8, wherein the list of vendors are presented to each customer based on each customer'"'"'s customer profile.

10. The method of claim 1, wherein the at least one extra line of credit includes a first and a second extra line of credit, and wherein the first line of credit may only be used for transactions that are associated with a first vendor, and the second extra line of credit may only be used for transactions associated with a second vendor.

11. A method for providing extra credit lines to credit cards with existing lines of credit, comprising:

presenting, using the computer, an offer to a customer holding a credit card with at least one existing credit line;

adding at least one extra credit line to the customer'"'"'s credit card; and

notifying, using the computer, the customer that the at least one extra credit line has been added to the credit card, wherein the customer may use the extra credit line to purchase goods and services after being notified.

12. The method of claim 11, further comprising:

permitting the extra credit line to be used to purchase goods and services only at vendor sites associated with selected vendors.

13. The method of claim 12, further comprising:

permitting the selected vendors to be determined by a credit card issuer that issued the customer'"'"'s credit card.

14. The method of claim 12, further comprising:

permitting the selected vendors to be determined by the customer.

15. The method of claim 12, further comprising:

permitting the at least one extra credit line and the at least one existing credit line to be used to purchase goods and services at the vendor sites.

16. The method of claim 15, further comprising:

applying purchases to an available balance associated with the extra credit line prior to applying purchases to an available balance associated with the existing credit line.

17. The method of claim 11, wherein presenting the offer comprises:

presenting the offer to the customer by at least one of the following;

a web site accessed by the customer, telephonic communication, electronic mail message, conventional mail message and a message presented at a point of sale terminal.

18. The method of claim 11, wherein notifying comprises:

notifying the customer by at least one of a web site accessed by the following;

customer, telephonic communication, electronic mail message, conventional mail message and a message presented at a point of sale terminal.

19. A solid computer-readable medium including instructions for performing a method, when executed by a processor, for providing at least one extra credit line to an existing credit card account, the method comprising:

determining a target customer group from a set of customers, wherein each customer in the set of customers holds an existing credit card account issued by a credit card issuer;

presenting an offer for an extra credit line to each customer in the target customer group;

processing responses to the offers from customers in the target customer group and activating at least one extra line of credit to the existing credit card account of each customer that has responded to the offer for extra credit; and

notifying each customer who has responded to the extra credit offer of an activated status of the at least one extra credit line associated with the customer'"'"'s credit card account.

20. The computer-readable medium of claim 19, wherein the target customer group includes at least one web site customer that has accessed a web site offered by the credit card issuer, and wherein presenting offers includes:

presenting the offer for extra credit on a page included in the web site; and

receiving a response from the web site customer through the web site,

and further wherein notifying each customer includes presenting a message indicating the activated status of the extra credit line on another web page.

21. The computer-readable medium of claim 19, wherein the target customer group includes at least one point of sale customer that attempts to perform a purchase transaction at a point of sale terminal associated with a vendor, and wherein presenting offers further includes:

sending a message indicating the offer for extra credit to the point of sale terminal;

presenting the offer to the point of sale customer at the point of sale terminal; and

processing a response to the offer from the point of sale customer.

22. The computer-readable medium of claim 21, wherein presenting the offer to the point of sale customer further includes:

printing the offer for extra credit on a sales receipt associated with the purchase transaction.

23. The computer-readable medium of claim 21, wherein presenting the offer to the point of sale customer further includes:

displaying a message on a display at the point of sale terminal, wherein the message indicates to a user of the point of sale terminal to notify the point of sale customer of the offer for extra credit.

24. The computer-readable medium of claim 19, wherein processing responses includes:

associating at least one vendor with the at least one extra line of credit that has been activated for each customer'"'"'s credit card account, wherein the at least one extra line of credit may only be used for purchases that are associated with the at least one vendor.

25. The computer-readable medium of claim 24, wherein associating at least one vendor with each extra line of credit that has been activated for each customer'"'"'s credit card account further includes:

determining a set of vendors to be associated with each customer'"'"'s extra line of credit based on customer profile information; and

adding the set of vendors to a customer vendor table associated with each customer who has responded to offer for extra credit.

26. The computer-readable medium of claim 25, wherein determining the set of vendors further includes:

presenting a list of vendors to each customer, and

receiving from each customer vendors selected from the list of vendors.

27. The computer-readable medium of claim 26, wherein the list of vendors are presented to each customer based on each customer'"'"'s customer profile.

28. The computer-readable medium of claim 19, wherein the at least one extra line of credit includes a first and a second extra line of credit, and wherein the first line of credit may only be used for transactions that are associated with a first vendor, and the second extra line of credit may only be used for transactions associated with a second vendor.

29. A system for providing extra credit lines to credit cards with existing lines of credit, comprising:

a central processing unit;

a memory unit, communicatively connected to the central processing unit and containing instructions that are executed by the central processing unit to perform a method comprising;

presenting an offer to a customer holding a credit card with at least one existing credit line;

activating at least one extra credit line to the customer'"'"'s credit card; and

notifying the customer that the at least one extra credit line has been added to the credit card, wherein the customer may use the extra credit line to purchase goods and services after being notified.

30. The system of claim 29, wherein the method further comprises:

permitting the extra credit line to be used to purchase goods and services only at vendor sites associated with selected vendors.

31. The system of claim 29, wherein the method further comprises:

permitting the selected vendors to be determined by a credit card issuer that issued the customers credit card.

32. The system of claim 29, wherein the method further comprises:

permitting the selected vendors to be determined by the customer.

33. The system of claim 29, wherein the method further comprises:

permitting the at least one extra credit line and the at least one existing credit line are to be used to purchase goods and services at the vendor sites.

34. The system of claim 33, wherein the method further comprises:

applying purchases to an available balance associated with the extra credit line prior to applying purchases to an available balance associated with the existing credit line.

35. The system of claim 29, wherein presenting the offer comprises:

presenting the offer to the customer by at least one of the following;

a web site accessed by the customer, telephonic communication, electronic mail message, conventional mail message and a message presented at a point of sale terminal.

36. A system for providing at least one extra credit line to an existing credit card account, comprising:

a central processing unit;

a memory unit, communicatively connected to the central processing unit and containing instructions that are executed by the central processing unit to perform a method comprising;

determining a target customer group from a set of customers, wherein each customer in the set of customers holds an existing credit card account issued by a credit card issuer;

presenting an offer for an extra credit line to each customer in the target customer group;

processing responses to the offers from customers in the target customer group and activating at least one extra line of credit to the existing credit card account of each customer that has responded to the offer for extra credit; and

notifying each customer who has responded to the extra credit offer of an activated status of the at least one extra credit line associated with the customer'"'"'s credit card account.

37. The system of claim 36, wherein the target customer group includes at least one web site customer that has accessed a web site offered by the credit card issuer, and wherein presenting an offer includes:

presenting the offer for extra credit on a page included in the web site; and

receiving a response from the web site customer through the web site,

and further wherein notifying each customer includes presenting a message indicating the activated status of the extra credit line on another web page.

38. The system of claim 36, wherein processing responses includes:

associating at least one vendor with the at least one extra line of credit that has been activated for each customer'"'"'s credit card account, wherein the at least one extra line of credit may only be used for purchases that are associated with the at least one vendor.

39. The system of claim 38, wherein associating at least one vendor with each extra line of credit that has been activated for each customer'"'"'s credit card account further includes:

determining a set of vendors to be associated with each customer'"'"'s extra line of credit based on customer profile information; and

adding the set of vendors to a customer vendor table associated with each customer who has responded to offer for extra credit.

40. The system of claim 39, wherein determining the set of vendors further includes:

presenting a list of vendors to each customer, and

receiving from each customer vendors selected from the list of vendors.

41. The system of claim 40, wherein the list of vendors are presented to each customer based on each customer'"'"'s customer profile.

42. The system of claim 36, wherein the at least one extra line of credit includes a first and a second extra line of credit, and wherein the first line of credit may only be used for transactions that are associated with a first vendor, and the second extra line of credit may only be used for transactions associated with a second vendor.