System and method for providing extra lines of credit

• US 7,904,384 B2
• Filed: 10/22/2007
• Issued: 03/08/2011
• Est. Priority Date: 02/12/2001
• Status: Expired due to Term

• 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:
  US11/976,165
• Publication Number:
  US 20080228611A1
• Time in Patent Office: 1,233 Days
• Field of Search: 705/26, 705/27, 705/39, 705/40, 705/41, 705/42, 235/379, 235/380, 235/381
• 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 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 system, for managing a financial account, comprising:

providing a consumer with the financial account having a first account component and a second account component, wherein the first and second account components have respectively a first account parameter representing a first transaction cost and a second account parameter representing a second transaction cost associated with purchase transactions made by the consumer using the financial account;

receiving a selection of a vendor from the consumer that is associated with the first account component;

processing, using the computer system, purchase transactions with the selected vendor based on the first account parameter including applying the first transaction cost to the purchase transactions with the selected vendor; and

processing, using the computer system, purchase transactions with other vendors based on the second account parameter including applying the second transaction cost to the purchase transactions with the other vendors.

2. The method of claim 1, further comprising:

generating a billing statement reflecting an amount to be paid by the consumer based on the first and second account parameters, wherein the amount to be paid is reduced when based on the first account parameter.

3. The method of claim 1, wherein the financial account is a credit card account and the consumer may select any vendor that accepts purchases using the credit card account, and wherein the first account parameter is a first interest rate and the second account parameter is a second interest rate different from the first interest rate.

4. The method of claim 1, wherein the purchase transactions are associated with one of:

(i) an internet-based purchase transaction;

(ii) a point-of-sale purchase transaction;

(iii) a purchase transaction made over a telephone; and

(iv) a purchase transaction made using conventional mail.

5. The method of claim 1, wherein receiving a selection of a vendor from the consumer further comprises:

presenting an offer for the financial account to the consumer, wherein the offer includes a request to select a vendor to be associated with the financial account, wherein the request includes a list of vendors.

6. The method of claim 1, wherein the financial account includes an available balance that is adjusted based on the purchase transactions with the selected vendor and the other vendors.

7. The method of claim 1, wherein processing purchase transactions with the selected vendor comprises at least one of:

(a) applying first fees to the financial account for purchase transactions with the selected vendor based on the first account parameter; and

(b) applying second fees to the financial account for purchase transactions with the other vendors based on the second account parameter,

wherein, when both first fees and second fees are applied, the second fees are higher than the first fees.

8. The method of claim 7, wherein the first and second account parameters include at least one of (a) first and second interest rates, respectively, wherein the first interest rate is lower than the second interest rate or (b) first and second finance charges, respectively.

9. A system for managing a financial account, comprising:

at least one memory storing data and instructions; and

at least one processor configured to access the at least one memory and execute the instructions to perform a method comprising;

providing a consumer with the financial account having a first account component and a second account component, wherein the first and second account components have respectively a first account parameter representing a first transaction cost and a second account parameter representing a second transaction cost associated with purchase transactions made by the consumer using the financial account;

receiving a selection of a vendor from the consumer that is associated with the first account component;

processing purchase transactions with the selected vendor based on the first account parameter including applying the first transaction cost to the purchase transactions with the selected vendor; and

processing purchase transactions with other vendors based on the second account parameter including applying the second transaction cost to the purchase transactions with the other vendors.

10. The system of claim 9, the method further comprising:

generating a billing statement reflecting an amount to be paid by the consumer based on the first and second account parameters, wherein the amount to be paid is reduced when based on the first account parameter.

11. The system of claim 9, wherein the first account parameter is a first interest rate and the second account parameter is a second interest rate different from the first interest rate.

12. The system of claim 9, wherein the purchase transactions are associated with one of:

(i) an internet-based purchase transaction;

(ii) a point-of-sale purchase transaction;

(iii) a purchase transaction made over a telephone; and

(iv) a purchase transaction made using conventional mail.

13. The system of claim 9, wherein the financial account includes an available balance that is adjusted based on the purchase transactions with the selected vendor and the other vendors.

14. The system of claim 9, wherein the processing purchase transactions with the selected vendor comprises at least one of:

(a) applying first fees to the financial account for purchase transactions with the selected vendor based on the first account parameter; and

(b) applying second fees to the financial account for purchase transactions with the other vendors based on the second account parameter,

wherein, when both first fees and second fees are applied, the second fees are higher than the first fees.

15. The system of claim 14, wherein the first and second account parameters include at least one of (a) first and second interest rates, respectively, wherein the first interest rate is lower than the second interest rate, or (b) first and second finance charges, respectively.

24. The system of claim 9, wherein the first transaction cost is a preferred vendor charge and the second transaction cost is a nonpreferred vendor charge.

16. A computer-readable medium storing instructions for performing a method, when executed by a processor, for managing a financial account, the method comprising:

providing a consumer with the financial account having a first account component and a second account component, wherein the first and second account components have respectively a first account parameter representing a first transaction cost and a second account parameter representing a second transaction cost associated with purchase transactions made by the consumer using the financial account;

receiving a selection of a vendor from the consumer that is associated with the first account component;

processing purchase transactions with the selected vendor based on the first account parameter including applying the first transaction cost to the purchase transactions with the selected vendor; and

processing purchase transactions with other vendors based on the second account parameter including applying the second transaction cost to the purchase transactions with the other vendors.

17. The computer-readable medium of claim 16, wherein the method further comprises:

generating a billing statement reflecting an amount to be paid by the consumer based on the first and second account parameters, wherein the amount to be paid is reduced when based on the first account parameter.

18. The computer-readable medium of claim 16, wherein the financial account is a credit card account and the consumer may select any vendor that accepts purchases using the credit card account, and wherein the first account parameter is a first interest rate and the second account parameter is a second interest rate different from the first interest rate.

19. The computer-readable medium of claim 16, wherein the purchase transactions are associated with one of:

(i) an internet-based purchase transaction;

(ii) a point-of-sale purchase transaction;

(iii) a purchase transaction made over a telephone; and

(iv) a purchase transaction made using conventional mail.

20. The computer-readable medium of claim 16, wherein receiving a selection of a vendor from the consumer further comprises:

presenting an offer for the financial account to the consumer, wherein the offer includes a request to select a vendor to be associated with the financial account, wherein the request includes a list of vendors.

21. The computer-readable medium of claim 16, wherein the financial account includes an available balance that is adjusted based on the purchase transactions with the selected vendor and the other vendors.

22. The computer-readable medium of claim 16, wherein processing purchase transactions with the selected vendor comprises at least one of:

(a) applying first fees to the financial account for purchase transactions with the selected vendor based on the first account parameter;

or

(b) applying second fees to the financial account for purchase transactions with the other vendors based on the second account parameter,

wherein, when both first fees and second fees are applied, the second fees are higher than the first fees.

23. The computer-readable medium of claim 22, wherein the first and second account parameters include at least one of (a) first and second interest rates, respectively, wherein the first interest rate is lower than the second interest rate, or (b) first and second finance charges, respectively.

25. A method for managing a financial account, comprising:

providing a consumer with the financial account having a first account component and a second account component, wherein the first and second account components have respectively a first account parameter representing first fees and a second account parameter representing second fees associated with purchase transactions made by the consumer using the financial account;

receiving a selection of a vendor from the consumer that is associated with the first account component;

processing purchase transactions with the selected vendor based on the first account parameter including applying the first fees to the financial account for purchase transactions with the selected vendor based on the first account parameter; and

processing purchase transactions with other vendors based on the second account parameter, including applying the second fees to the financial account for purchase transactions with the other vendors based on the second account parameter.