System and method for making a synthetic cash advance using a purchase payment exchange

• US 8,135,640 B2
• Filed: 10/22/2008
• Issued: 03/13/2012
• Est. Priority Date: 02/27/2008
• Status: Active Grant

• Current Assignee: Anthony Jeremiah Bayne
• Original Assignee: Anthony Jeremiah Bayne
• Inventors: Bayne, Anthony Jeremiah
• Primary Examiner(s): Akintola, Olabode
• Application Number:
  US12/256,453
• Publication Number:
  US 20090216637A1
• Time in Patent Office: 1,238 Days
• Field of Search: 705 35- 38, 705/36.R, 705/39
• US Class Current: 705/36.R
• CPC Class Codes: G06Q 20/08 Payment architectures
• 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 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

System and method provide for making a synthetic cash advance to a credit cardholder via a purchase-payment exchange. A beneficiary selects an item to be purchased by a cardholder for the beneficiary, and in exchange for the cardholder'"'"'s purchase, the beneficiary transfers funds to the cardholder in an amount that is less than the purchase price of the item. Using this invention, the beneficiary receives the selected item, has a payment made at a discount, and the cardholder receives cash at the card'"'"'s purchase interest rate. Two or more cardholders may be allowed to bid to make the beneficiary'"'"'s purchase or payment. The winning bid may be selected based on the cardholder bid having the largest discount from the purchase price.

Claims

1. A system for a credit cardholder to obtain synthetic cash advance in exchange for completing a financial transaction for a beneficiary, comprising:

means for a cardholder to submit a bid to complete a financial transaction chosen by a beneficiary using the cardholder'"'"'s credit card, in exchange for the cardholder receiving the beneficiary'"'"'s cash in an amount that is less than the beneficiary'"'"'s proposed financial transaction, wherein the cardholder'"'"'s bid comprises a discount from a purchase price, the discount further comprising the difference between a charge to the cardholder'"'"'s credit card and the amount the cardholder is willing to receive in exchange for completing the financial transaction for the beneficiary;

means to select the cardholder'"'"'s bid;

means for using the cardholder'"'"'s credit card to complete the financial transaction for the beneficiary; and

means for making an electronic fund transfer to the cardholder of cash received from the beneficiary, wherein the cash is a synthetic cash advance.

2. The system of claim 1, wherein the electronic funds transferred to the cardholder is less than the amount paid by the cardholder to complete the financial transaction.

3. The system of claim 1, wherein the cardholder'"'"'s bid further comprises a credit card to be used to complete the financial transaction.

4. the system of claim 1, further comprising means to select the cardholder bid from a plurality of cardholder bids.

5. The system of claim 4, further comprising means to select the cardholder bid having the greatest discount.

6. The system of claim 1, further comprising means for an online payment solution provider to direct a beneficiary'"'"'s financial institution to make an electronic fund transfer to the cardholder.

7. The system of claim 1, further comprising means for an online payment solution provider to pay a cardholder with beneficiary funds held in escrow by the online payment solution provider.

8. The system of claim 1, wherein the cardholder submits the cardholder bid without first seeing a beneficiary bid.

9. The system of claim 1, further comprising a means for selecting two credit cardholder bids to complete a financial transaction for a beneficiary, when a credit cardholder bid'"'"'s purchase price range is insufficient to complete a financial transaction for a beneficiary.

10. The system of claim 9, wherein an electronic fund transfer is made to each cardholder that is less than the amount separately paid by each cardholder.

19. The system of claim 1, further comprising the credit cardholder receiving the beneficiary'"'"'s cash at the credit card'"'"'s purchase interest rate.

11. A method for a beneficiary to obtain an item at a discount, the method comprising:

receiving in a purchase-payment exchange system a beneficiary'"'"'s bid request to have a credit cardholder make a purchase of an item for the beneficiary using the credit cardholder'"'"'s credit card;

receiving a cardholder'"'"'s conforming bid by the system that fulfills the beneficiary'"'"'s minimum bid request conditions, wherein the cardholder'"'"'s bid comprises a discount from a purchase price, the discount further comprising the difference between a charge to the cardholder'"'"'s credit card and the amount the cardholder is willing to receive in exchange for completing the financial transaction for the beneficiary;

using a credit card of the cardholder by the system to complete the purchase for the beneficiary; and

paying the cardholder by the system with an amount of money provided by the beneficiary that is less than the item'"'"'s purchase price, in exchange for completing the purchase with the cardholder'"'"'s credit card.

12. The method of claim 11, wherein the purchase of the item is a group, the group comprising a purchase of an item selected by the beneficiary, a payment for a service selected by the beneficiary, and a payment of a debt owed by the beneficiary.

13. The method of claim 11, wherein the cardholder'"'"'s conforming bid further comprises an offer by the cardholder to complete a purchase for the beneficiary using a credit card that is acceptable to a payee, and a discount from the purchase price, that is equal to or greater than a beneficiary'"'"'s minimum discount.

14. The method of claim 11, further comprising the step of selecting the conforming cardholder bid via an auction.

15. A method for an online payment solution provider to facilitate a purchase-payment exchange between a beneficiary and a cardholder, comprising:

receiving in a purchase-payment exchange system a beneficiary bid request, wherein the request comprises use of a credit cardholder'"'"'s credit card to complete a purchase for the beneficiary, in exchange for an amount of the beneficiary'"'"'s cash that is less than the price of the item to be purchased using the cardholder'"'"'s credit card;

receiving by the system a credit cardholder'"'"'s conforming bid that fulfills the beneficiary'"'"'s minimum bid request conditions, wherein the cardholder'"'"'s bid comprises a discount from a purchase price, the discount further comprising the difference between a charge to the cardholder'"'"'s credit card and the amount the cardholder is willing to receive in exchange for completing the financial transaction for the beneficiary;

selecting by the system the cardholder'"'"'s conforming bid;

paying for the purchase by the system using the cardholder'"'"'s credit card; and

making an electronic fund transfer by the system to the cardholder in an amount that is less than the amount charged to the cardholder'"'"'s credit card to complete the purchase for the beneficiary.

16. The method of claim 15, wherein the beneficiary has pre-approved the beneficiary'"'"'s financial institution to pay the credit cardholder when directed by the online payment solution provider.

17. The method of claim 15, wherein the online payment solution provider uses the beneficiary'"'"'s funds held in escrow to pay for the selected purchase, when no credit cardholder'"'"'s conforming bid is received.

18. The method of claim 15, wherein the online payment solution provider performs an auction to determine what conforming bid to select, when more than one conforming bid is received.