Method, system and apparatus for providing a variable credit account to a consumer

• US 8,010,446 B2
• Filed: 05/18/2004
• Issued: 08/30/2011
• Est. Priority Date: 05/18/2004
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Bill Me Later Incorporated (PayPal Holdings, Inc.)
• Inventors: Hirschfeld, Daniel A., Talbert, Vincent W., Lavelle, Mark L., Keithley, Thomas H.
• Primary Examiner(s): Kramer; James
• Assistant Examiner(s): SEE, CAROL A
• Application Number:
  US11/596,657
• Publication Number:
  US 20080065530A1
• Time in Patent Office: 2,660 Days
• Field of Search: None
• US Class Current: 705/38
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• 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

Abstract

A method of providing a variable credit account to a consumer (12) is provided. The method includes the steps of: offering, by a credit issuer (14), a variable credit account to a consumer (12) by telephone, electronically, mail or at an in-store location; accepting, by the consumer (12), the offer; opening, by the credit issuer, the variable credit account (18) for the consumer (12), where the account includes an open-ended loan portion (22) and a close-ended loan portion (20). The method may further include the steps of initially activating the open-ended loan portion (22) when the initial offer is made electronically, by mail or at an in-store location; and initially activating a close-ended loan portion (20) of the account when the initial offer is made at any point-of-sale. A system and apparatus for providing a variable credit account to a consumer (12) is also discussed.

Claims

1. A method of providing a variable credit account to a consumer, the method comprising:

(a) offering, by a credit issuer, a variable credit account having an open-ended loan portion and a close-ended loan portion to the consumer via a telephone call, wherein the close-ended loan portion is not rechargeable and the open-ended loan portion is rechargeable;

(b) receiving an acceptance, from the consumer, of the credit issuer offer of the variable credit account during the telephone call;

(c) opening, by the credit issuer, the variable credit account for the consumer based on the receiving of the acceptance from the consumer;

(d) activating, by the credit issuer via a computer during the telephone call, the close-ended loan portion of the variable credit account, allowing the consumer to purchase goods and/or services using an available balance of the close-ended loan portion subsequent to the activating of the close-ended loan portion and prior to activating and allowing the consumer to purchase goods and/or services using the open-ended loan portion;

(e) communicating by the credit issuer with the consumer, the communication in electronic written form or paper mail written form providing specified terms and conditions relating to the open-ended loan portion of the variable credit account for review by the consumer;

(f) receiving an acknowledgement, from the consumer, that the specified terms and conditions are acceptable; and

(g) activating, by the computer for the credit issuer, the open-ended loan portion of the variable credit account, subsequent to the receiving of the acknowledgement from the consumer, allowing the consumer to purchase goods and/or services using an available balance of the open-ended loan portion.

2. The method of claim 1, wherein the communication is in the form of an account statement transmitted to the consumer, the account statement including the specified terms and conditions relating to the open-ended loan portion of the variable credit account for review by the consumer.

3. The method of claim 2,

wherein the activating the open-ended loan portion of the variable credit account includes providing a charge card for the consumer to access credit of the open-ended loan portion.

4. The method of claim 3, wherein the acknowledgement from the consumer is in at least one of the following:

written form, verbal form, transmission of an application, an indication of acknowledgement, and a selection indication.

5. The method of claim 1, further comprising assessing, by the credit issuer, the consumer.

6. The method of claim 5, wherein the assessing step further includes at least one of the following:

(i) transmitting data regarding the consumer to a credit issuer central database;

(ii) transmitting the data to a third-party database;

(iii) processing the data relating to the consumer;

(iv) rating the consumer; and

(v) verifying the authenticity of the consumer.

7. The method of claim 6, wherein the consumer is rated for at least one of the following:

credit risk, fraud risk, profitability, and risk factors.

8. The method of claim 6, wherein at least one of the central credit issuer database and the third-party database includes a data set including at least one field populated with data reflecting at least one of the following:

a consumer'"'"'s name, an account number, an address, a city, a state, a zip code, a country, a telephone number, an e-mail address, a social security number, a date of birth, the merchant'"'"'s name, an identification, an order number, an authorization number, an authorization time, an authorization amount, a ship-to address, a bill-to address, a transaction amount, a consumer purchase demographic, a transaction date, a transaction type, a product identification, a service identification, shipping costs, delivery type, customer type, a company identity, a merchant identity, a third-party risk score, a general credit risk score, a credit bureau risk score, a prior approval, prior report data, previous transaction data, a geographical risk factor, credit account data, bankcard balance data, delinquency data, credit segment data, time between transactions data, previous transaction amount, previous transaction approval status, previous transaction time stamp data, a response code, active trades in database, public record data, trade line data, transaction medium, credit segment data, consumer payment type, consumer payment method, consumer payment history, consumer account history, consumer credit account balance, and merchant history.

9. The method of claim 5, further comprising approving the consumer by the credit issuer based upon the assessing of the consumer by the credit issuer.

10. The method of claim 1, wherein at least one of steps (a)-(c) is automatically performed by a computing device.

11. The method of claim 10, wherein the computing device is at least one of the following:

a personal computer, a networked device, a laptop, a palmtop, a personal digital assistant, and a server.

12. An apparatus for providing a variable credit account to a consumer, the apparatus comprising:

a telephone configured for use, by a credit issuer, to offer a variable credit account having an open-ended loan portion and a close-ended loan portion to the consumer via a telephone call, wherein the close-ended loan portion is not rechargeable and the open-ended loan portion is rechargeable;

a computer configured for use, by the credit issuer, to open the variable credit account for the consumer based on an accepting by the consumer of the variable credit account during the telephone call;

wherein the computer is configured for use, by the credit issuer during the telephone call, to activate the close-ended loan portion of the variable credit account, allowing the consumer to purchase goods and/or services using an available balance of the close-ended loan portion subsequent to the activating of the close-ended loan portion and prior to activating and allowing the consumer to purchase goods and/or services using the open-ended loan portion;

wherein the computer is configured for use, by the credit issuer, to communicate with the consumer, the communication in electronic form or paper mail form to provide specified terms and conditions relating to the open-ended loan portion of the variable credit account for review and acceptance by the consumer; and

wherein the computer is configured for use, by the credit issuer, to activate the open-ended loan portion of the variable credit account, subsequent to the acceptance by the consumer, allowing the consumer to purchase goods and/or services using an available balance of the open-ended loan portion.

13. The apparatus of claim 12, wherein the communication is in the form of an account statement transmitted to the consumer, the account statement including the specified terms and conditions relating to the open-ended loan portion of the variable credit account for review by the consumer.

14. The apparatus of claim 13, wherein the communication further includes providing a charge card for the consumer to access credit of the open-ended loan portion upon acceptance by the consumer of the terms and conditions.