System and method for providing extra lines of credit

• US 7,788,170 B2
• Filed: 12/06/2006
• Issued: 08/31/2010
• Est. Priority Date: 02/12/2001
• Status: Expired due to Fees

• 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:
  US11/634,194
• Publication Number:
  US 20070078759A1
• Time in Patent Office: 1,364 Days
• Field of Search: 705/26, 705/27, 705/35, 705/36, 705/37, 705/38, 705/39, 705/40
• 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 processing credit card transactions, comprising:

receiving transaction information associated with a customer attempting to perform a transaction at a vendor site using a credit card issued from a credit card issuer;

determining, by the computer, whether the customer has an extra line of credit associated with the credit card based on the transaction information;

determining, by the computer, whether the vendor is associated with the credit card issuer based on the transaction information;

determining, by the computer, whether the vendor is associated with the customer'"'"'s extra line of credit based on the transaction information; and

applying the transaction to the extra line of credit when it is determined that the customer does have an extra line of credit and the vendor is associated with the credit card issuer.

2. The method of claim 1, wherein the vendor is associated with the credit card issuer and is not associated with the customer'"'"'s extra line of credit, the method further comprising:

allowing the customer to selectively add the vendor to a vendor group associated with the customer'"'"'s extra line of credit, wherein the vender group includes a plurality of vendors that are associated with the customer'"'"'s extra line of credit.

3. The method of claim 1, wherein determining whether the customer has an extra line of credit associated with the credit card further includes:

determining that the customer does not have an extra line of credit associated with the credit card;

presenting an offer to the customer to obtain an extra line of credit from the credit card issuer;

processing the customer'"'"'s response to the offer to determine if the customer accepts the offer; and

activating an extra line of credit for the customer'"'"'s credit card if the customer accepts the offer.

4. The method of claim 3, wherein the offer indicates a set of selected vendors the extra line of credit is associated with, wherein the vendor is included with the set of selected vendors.

5. The method of claim 3, wherein the offer indicates a list of associated vendors, the method further comprising:

determining a set of vendors selected by the customer from the list of associated vendors; and

relating the set of vendors selected by the customer with the customer'"'"'s extra line of credit.

6. The method of claim 5, further comprising:

including a vendor associated with the vendor site in the list of associated vendors.

7. The method of claim 1, further comprising:

applying the transaction to a primary line of credit associated with the customer'"'"'s credit card when it is determined that the customer does have an extra line of credit and the vendor is not associated with the credit card issuer.

8. The method of claim 1, further comprising:

applying the transaction to a primary line of credit associated with the customer'"'"'s credit card when it is determined that the customer does have an extra line of credit and the vendor is not associated with the customer'"'"'s extra line of credit.

9. The method of claim 1, further comprising:

applying the transaction to a primary line of credit and the extra line of credit associated with the customer'"'"'s credit card.

10. The method of claim 1, further comprising:

presenting, when it is determined that the customer does have an extra line of credit and that the vendor is not associated with the customer'"'"'s extra line of credit, an offer to the customer to associate the vendor to the customer'"'"'s extra line of credit;

processing the customer'"'"'s response to the offer to determine if the customer accepted the offer; and

associating the vendor to the customer'"'"'s extra line of credit if the customer accepts the offer.

11. The method of claim 1, further comprising:

providing the vendor site as a web site; and

permitting the customer to perform the transaction using a remote computer system to access the web site.

12. The method of claim 1, further comprising:

providing the vendor site as a merchant location; and

permitting the customer to perform the transaction at a point of sale terminal located at the merchant location.

13. A computer-readable medium including instructions for performing a method, when executed by a processor, for processing credit card transactions, comprising:

receiving transaction information associated with a customer attempting to perform a transaction at a vendor site using a credit card issued from a credit card issuer;

determining whether the customer has an extra line of credit associated with the credit card based on the transaction information;

determining whether the vendor is associated with the credit card issuer based on the transaction information;

determining whether the vendor is associated with the customer'"'"'s extra line of credit based on the transaction information; and

applying the transaction to the extra line of credit when it is determined that the customer does have an extra line of credit and the vendor is associated with the credit card issuer.

14. The computer-readable medium of claim 13, wherein the vendor is associated with the credit card issuer and is not associated with the customer'"'"'s extra line of credit, the method further comprising:

allowing the customer to selectively add the vendor to a vendor group associated with the customer'"'"'s extra line of credit, wherein the vender group includes a plurality of vendors that are associated with the customer'"'"'s extra line of credit.

15. The computer-readable medium of claim 13, wherein determining whether the customer has an extra line of credit associated with the credit card further includes:

determining that the customer does not have an extra line of credit associated with the credit card;

presenting an offer to the customer to obtain an extra line of credit from the credit card issuer;

processing the customer'"'"'s response to the offer to determine if the customer accepts the offer; and

activating an extra line of credit for the customer'"'"'s credit card if the customer accepts the offer.

16. The computer-readable medium of claim 15, wherein the offer indicates a set of selected vendors the extra line of credit is associated with, wherein the vendor is included with the set of selected vendors.

17. The computer-readable medium of claim 15, wherein the offer indicates a list of associated vendors, the method further comprising:

determining a set of vendors selected by the customer from the list of associated vendors; and

relating the set of vendors selected by the customer with the customer'"'"'s extra line of credit.

18. The computer-readable medium of claim 17, further comprising:

including a vendor associated with the vendor site in the list of associated vendors.

19. The computer-readable medium of claim 13, further comprising:

applying the transaction to a primary line of credit associated with the customer'"'"'s credit card when it is determined that the customer does have an extra line of credit and the vendor is not associated with the credit card issuer.

20. The computer-readable medium of claim 13, further comprising:

applying the transaction to a primary line of credit associated with the customer'"'"'s credit card when it is determined that the customer does have an extra line of credit and the vendor is not associated with the customer'"'"'s extra line of credit.

21. The computer-readable medium of claim 13, further comprising:

applying the transaction to a primary line of credit and the extra line of credit associated with the customer'"'"'s credit card.

22. A system for processing credit card transactions, comprising:

a database system;

a network; and

a computer system coupled to the database system and the network, wherein the computer system is operative to

receive transaction information associated with a customer attempting to perform a transaction at a vendor site using a credit card issued from a credit card issuer;

determine whether the customer has an extra line of credit associated with the credit card based on the transaction information;

determine whether the vendor is associated with the credit card issuer based on the transaction information;

determine whether the vendor is associated with the customer'"'"'s extra line of credit based on the transaction information; and

apply the transaction to the extra line of credit when it is determined that the customer does have an extra line of credit and the vendor is associated with the credit card issuer.

23. The system of claim 22, wherein the computer system further:

presents, when it is determined that the customer does have an extra line of credit and that the vendor is not associated with the customer'"'"'s extra line of credit, an offer to the customer to associate the vendor to the customer'"'"'s extra line of credit;

processes the customer'"'"'s response to the offer to determine if the customer accepted the offer; and

associates the vendor to the customer'"'"'s extra line of credit if the customer accepts the offer.

24. The system of claim 22,

wherein the vendor site is a web site;

and

the system further comprises a remote computer system to permit the customer to perform the transaction using the remote computer system to access the web site.

25. The system of claim 22,

wherein the vendor site is a merchant location;

and

the system further comprises a point of sale terminal located at the merchant location to permit the customer to perform the transaction at the point of sale terminal.