Authorizing financial transactions

• US 7,707,105 B2
• Filed: 11/19/2002
• Issued: 04/27/2010
• Est. Priority Date: 11/30/2001
• Status: Active Grant

• Current Assignee: Toshiba Global Commerce Solutions Holdings Corporation (Toshiba Corporation)
• Original Assignee: International Business Machines Corporation
• Inventors: O'Neil, Kevin A.
• Primary Examiner(s): Hamilton; Lalita M
• Application Number:
  US10/299,142
• Publication Number:
  US 20030105711A1
• Time in Patent Office: 2,716 Days
• Field of Search: 705/35, 705 38- 40, 705/41
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

An account associated with a card is characterized by one or more budgetary items (collectively contained within a budget) that may be created by the card holder, account holder or a third party. A budgetary item may be created based on a time period regardless of the funds presently in the account. A budgetary item may be categorized by function, item or merchant. For example, a budgetary item may be created for “household supplies”, “shoes” or “The Gap”. The budget may be stored by the card itself, a financial institution or by a third party. When a purchase is being made, a transaction is initiated between the merchant/supplier of the goods or services and the account holder similar to conventional transactions. The budgetary items are used to determine, in part, whether a proposed financial transaction is to be authorized, in whole or in part, or rejected, in whole or in part.

Claims

1. A computer implemented method for authorizing or rejecting a financial transaction using a card, said card associated with an account maintained by an account holder, said financial transaction between a merchant and a card holder holding said card and authorized by the account holder, said method comprising:

retrieving a budget associated with the card when the card holder attempts to conduct a financial transaction using a processor of a computing device;

characterizing the financial transaction into one of a plurality of budget categories of the budget that is retrieved using the processor of the computing device;

rejecting said financial transaction when funds available for the one of the plurality of budget categories are insufficient to cover said financial transaction using the processor of the computing device;

transmitting override query data to the merchant to query the card holder as to whether to override the rejection using the processor of the computing device;

receiving override data associated with the card holder'"'"'s personal identification number (PIN) in response to the override query data using the processor of the computing device; and

authorizing the financial transaction based upon the override data using the processor of the computing device,

wherein the account holder comprises a financial institution associated with the card, and the account holder performs the retrieving, the characterizing, the rejecting, the transmitting, the receiving, and the authorizing, and

the plurality of budget categories are associated with budgetary items and at least one of said budgetary items comprises a lock value indicating whether a restriction imposed by said at least one budgetary item can be overridden.

2. The method of claim 1 further comprising:

when a budgetary item of a the budget associated with said card does not restrict use of funds available in said account or when the budget associated with said card is not available;

authorizing said financial transaction when funds available in said account are sufficient to cover said financial transaction; and

rejecting said financial transaction when said funds available in said account are insufficient to cover said financial transaction.

3. The method of claim 1, further comprising:

receiving transaction data from said merchant describing said financial transaction.

4. The method of claim 3 wherein said categorizing comprises:

categorizing said financial transaction utilizing a database of budget categories.

5. The method of claim 1, wherein said account holder receives from the merchant purchase detail data describing one or more items included in said financial transaction and wherein said categorizing comprises:

for each item of said one or more items included in said financial transaction data;

categorizing said each item using said purchase detail data received.

6. The method of claim 1, further comprising:

storing budget data comprising one or more budgetary items for said account received from a user restricting the use of funds of said account, wherein the user is different from the card holder.

7. The method of claim 1 wherein each of said budgetary item comprises at least one of:

a category of expenses, a category of items, and a merchant identifier.

8. The method of claim 7 wherein at least one of said budgetary items further comprises a time period.

9. The method of claim 1, further comprising:

maintaining account records relating to the budget associated with the card; and

providing a web site through which the card holder may access and then create or modify budgetary items associated with the budget associated with the card.

10. The method of claim 9, wherein the account holder performs the maintaining and the providing.

11. A computer implemented method for authorizing a financial transaction using a card, said card associated with an account maintained by an account holder and having a sum of funds available, said financial transaction being between a merchant and a card holder using said card, said method comprising:

maintaining account records relating to a budget associated with the card using a processor of a computing device;

providing a web site through which the card holder may access and then create or modify budgetary items associated with the budget associated with the card using the processor of the computing device;

retrieving the budget associated with the card when the card holder attempts to conduct the financial transaction using the processor of the computing device;

characterizing the financial transaction into one of a plurality of budget categories of the budget that is retrieved using the processor of the computing device;

determining funds available for a budgetary item after the characterizing and when said financial transaction appertains to said budgetary item using the processor of the computing device;

when both said funds available for said budgetary item and said sum of funds available are sufficient to satisfy a value of said financial transaction, authorizing said financial transaction using the processor of the computing device;

when said funds available for said budgetary item are not sufficient to satisfy the value of said financial transaction and said sum of finds available are sufficient to satisfy the value of said financial transaction, authorizing said financial transaction when override authorization is received using the processor of the computing device; and

modifying the budget based upon the authorized transaction using the processor of the computing device,

wherein the account holder performs at least the retrieving, the characterizing, the determining, and the modifying, and

the override authorization is received as a result of the card holder entering a personal identification number (PIN) at the merchant'"'"'s card reader.

12. The method of claim 11 wherein said plurality of budget categories are associated with budgetary items, each comprising a lock value indicating whether said budgetary item can be overridden.

13. The method of claim 11 further comprising:

receiving transaction data describing financial data.

14. The method of claim 11 wherein said categorizing comprises at least one of:

retrieving from a database information associated with a merchant described by said financial transaction; and

retrieving from a database information associated with an item described by said financial transaction, wherein said item describes a good and/or service.

15. A computer implemented method for enforcing a budget on the use of a card for a financial transaction, said card associated with an account maintained by an account holder, said account comprising a balance describing funds available in said account, said financial transaction being between a merchant and a card holder using said card, said method comprising:

maintaining account records relating to a budget associated with the card using a processor of a computing device;

providing a web site through which the card holder may access and then create or modify budgetary items associated with the budget associated with the card using the processor of the computing device;

storing the budget comprising budgetary items, each said budgetary items associating a category with a sum of funds available for purchases appertaining to said category using the processor of the computing device;

using said budget when determining whether to authorize a financial transaction using said card;

retrieving the budget associated with the card when a card holder attempts to conduct the financial transaction using the processor of the computing device;

characterizing the financial transaction into one of said categories of the budget that is retrieved using the processor of the computing device;

receiving a request for authorization for said financial transaction using the processor of the computing device,

wherein the account holder comprises a financial institution that issued the card or that maintains an account associated with the card, and the account holder performs the maintaining, the providing, the retrieving and the characterizing, and the request is received from a third party.

16. A method for authorization of a financial transaction involving the use of a card having budgetary restrictions, said method comprising:

storing, in an account with an account holder, a budget comprising budget categories using a processor of a computing device;

receiving a transmission to the account holder maintaining the account associated with said card describing;

a value of said financial transaction, said card, and a plurality of items included in said financial transaction, each of said plurality of items comprising one of a good and a service;

characterizing said financial transaction into one of the budget categories of the budget using the processor of the computing device; and

transmitting authorization or rejection of said financial transaction based on the characterizing using the processor of the computing device, wherein the account holder is a financial institution associated with the card and the

account holder performs the characterizing and the transmitting in order to enforce the budgetary restrictions on the use of the card.

17. A computer readable storage media containing data and computer executable instructions which, when executed on a computer system of an account holder, causes the computer system to:

retrieve a budget associated with a card when a card holder attempts to conduct a financial transaction;

characterize the financial transaction into one of a plurality of budget categories of the budget that is retrieved;

authorize said financial transaction when funds available in one of the plurality of budget categories are sufficient to cover said financial transaction and when the financial transaction is characterized into one of the plurality of budget categories; and

reject said financial transaction when funds available in the one of the plurality of budget categories are insufficient to cover said financial transaction,

wherein each of said plurality of budget categories is associated with a respective budget amount and a balance remaining.

18. A method for authorizing or rejecting a financial transaction using a card, said card associated with an account maintained by an account holder, said financial transaction between a merchant and a card holder, said method comprising:

obtaining budget information comprising a plurality of budgetary items from at least one of the card holder and a third party;

storing the budget information using a processor of a computing device;

receiving data associated with said financial transaction using the processor of the computing device;

comparing the data to the budget information using the processor of the computing device; and

authorizing in full, authorizing in part, or rejecting of said financial transaction based on the comparing using the processor of the computing device,

wherein each of the plurality of budgetary items is associated with a respective budget category, budget amount, and balance remaining,

wherein the account holder comprises a financial institution associated with the card, and the account holder performs;

(i) the receiving;

(ii) the comparing; and

(iii) the authorizing in full, authorizing in part, or rejecting.