System and method for facilitating a subsidiary card account

• US 7,899,742 B2
• Filed: 06/19/2003
• Issued: 03/01/2011
• Est. Priority Date: 05/29/2001
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Rubinshtein, Tomer, Park, Grace, Okamoto, Kazuhiko, Hobbs, Chris, Benkert, Marc
• Primary Examiner(s): Kramer, James A
• Assistant Examiner(s): Gottschalk, Martin A
• Application Number:
  US10/600,483
• Publication Number:
  US 20040143527A1
• Time in Patent Office: 2,812 Days
• Field of Search: 235/379, 235/380, 705/35, 705/39, 705/40
• US Class Current: 705/39
• 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 20/105 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 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

The present invention provides a system and method for providing a flexible limit subsidiary account that may be issued by a Foreign Financial Institution. In particular, the present provides a system and method for allowing a parent to provide funds to a subsidiary and to control the spending of subsidiary or spending capacity. The card account may be issued at the request of the parent who may retain the ability to define, modify, and/or terminate the spending and/or debt accumulation limits for the subsidiary card account as well as other features as described in the attached disclosure. The system may be configured to provide the ability for parent to eliminate risks associated with fluctuations in currency exchange rates by committing to fixed automatic long-term charges at a fixed foreign exchange rate for a fixed term.

Claims

1. A method comprising:

allocating, by a computer based system for administering a subsidiary account, a first credit line to the subsidiary account, wherein the first credit line is at least a portion of an available credit line of a parent account, and wherein the first credit line is provided by a first account issuer;

authorizing, by the computer based system, a second credit line associated with the subsidiary account and provided by a second account issuer, wherein the second account issuer is situated in a second country that is different from a first country associated with the first account issuer;

defining, by the computer based system, a subsidiary account spending capacity based on a currency of the first country, the first credit line, and the second credit line;

determining, by the computer based system, an exchange rate corresponding to the currency of the first country and a currency of the second country distinct from the first country;

determining, by the computer based system, an effective time period associated with the exchange rate;

authorizing, by the computer based system, a purchase with a subsidiary account, wherein purchases made using the subsidiary account are limited by the subsidiary account spending capacity, and wherein, during the effective time period, purchases made using the subsidiary account in the currency of the second country are converted into the currency of the first country according to the exchange rate; and

accommodating, by the computer based system, an emergency transaction in accordance with predefined criteria by allowing the subsidiary account to exceed the subsidiary account'"'"'s defined spending capacity.

2. The method according to claim 1, wherein the parent account is established by the first account issuer and the subsidiary account is at least partially maintained by the second account issuer.

3. The method of claim 1, further comprising modifying, by the computer based system, the subsidiary account spending capacity in response to a request from the parent system.

4. The method of claim 3, further comprising modifying, by the computer based system, the available credit line of the parent account based on a modification of the subsidiary account spending capacity.

5. The method of claim 1, further comprising tracking, by the computer based system, spending incurred using the subsidiary account.

6. The method of claim 1, further comprising limiting, by the computer based system, total spending incurred using the subsidiary account.

7. The method of claim 1, further comprising limiting, by the computer based system, spending incurred using the subsidiary account for a specific class of goods or services.

8. The method of claim 1, further comprising limiting, by the computer based system, spending incurred using the subsidiary account at a specific class of merchants.

9. The method of claim 1, further comprising limiting, by the computer based system, spending incurred using the subsidiary account at a specific merchant.

10. The method of claim 1, further comprising enforcing, by the computer based system, specific restrictions against the subsidiary account, wherein the specific restrictions condition the use of the parent account.

11. The method of claim 1, further comprising generating, by the computer based system, a statement for the subsidiary account.

12. The method of claim 1, further comprising generating, by the computer based system, a statement for the parent account.

13. The method of claim 1, further comprising terminating, by the computer based system, the subsidiary account in response to a request from the parent system.

14. The method of claim 1, wherein the subsidiary account is configured to carry-over spending capacity from one cycle to the next.

15. The method of claim 1, wherein the subsidiary account is configured to prevent carry-over of spending capacity from one cycle to the next.

16. The method of claim 1, further comprising reducing, by the computer based system, the available credit line of the parent account by the first amount.

17. A tangible non-transitory computer-readable storage medium having computer-executable instructions stored thereon that, if executed by a computer based system for administering a subsidiary account, cause the computer based system to perform operations comprising:

allocating, by the computer based system, a first credit line to the subsidiary account, wherein the first credit line is at least a portion of an available credit line of a parent account, and wherein the first credit line is provided by a first account issuer;

authorizing, by the computer based system, a second credit line associated with the subsidiary account and provided by a second account issuer, wherein the second account issuer is situated in a second country that is different from a first country associated with the first account issuer;

defining, by the computer based system, a subsidiary account spending capacity based on a currency of the first country, the first credit line, and the second credit line;

determining, by the computer based system, an exchange rate corresponding to the currency of the first country and a currency of the second country distinct from the first country;

determining, by the computer based system, an effective time period associated with the exchange rate;

authorizing, by the computer based system, a purchase with a subsidiary account, wherein purchases made using the subsidiary account are limited by the subsidiary account spending capacity, and wherein, during the effective time period, purchases made using the subsidiary account in the currency of the second country are converted into the currency of the first country according to the exchange rate; and

accommodating, by the computer based system, an emergency transaction in accordance with predefined criteria by allowing the subsidiary account to exceed the subsidiary account'"'"'s defined spending capacity.

18. A computer based system for administering a subsidiary account comprising:

a network interface communicating with a memory;

the memory communicating with a processor; and

the processor, when executing a computer program, is configured to;

allocate, by the processor, a first credit line to the subsidiary account, wherein the first credit line is at least a portion of an available credit line of a parent account, and wherein the first credit line is provided by a first account issuer;

authorize, by the processor, a second credit line associated with the subsidiary account and provided by a second account issuer, wherein the second account issuer is situated in a second country that is different from a first country associated with the first account issuer;

define, by the processor, a subsidiary account spending capacity based on a currency of the first country, the first credit line, and the second credit line;

determine, by the processor, an exchange rate corresponding to the currency of the first country and a currency of the second country distinct from the first country;

determine, by the processor, an effective time period associated with the exchange rate;

authorize, by the processor, a purchase with a subsidiary account, wherein purchases made using the subsidiary account are limited by the subsidiary account spending capacity, and wherein, during the effective time period, purchases made using the subsidiary account in the currency of the second country are converted into the currency of the first country according to the exchange rate; and

accommodate, by the processor, an emergency transaction in accordance with predefined criteria by allowing the subsidiary account to exceed the subsidiary account'"'"'s defined spending capacity.