Systems and methods for a prepaid interest credit card account

• US 8,156,043 B1
• Filed: 10/15/2008
• Issued: 04/10/2012
• Est. Priority Date: 10/15/2008
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Higgins, Andrew Jerome
• Primary Examiner(s): Milef, Elda
• Application Number:
  US12/251,679
• Time in Patent Office: 1,273 Days
• Field of Search: 705/35, 705/38, 705/39, 705/40
• 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 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A system for charging fees to a card holder of a credit card account may comprise at least one subsystem that calculates a prepaid interest amount and at least one subsystem that charges the prepaid interest amount to the credit card account in lieu of charging interest on the actual balance of the account.

Claims

1. A system for charging fees to a card holder of a credit card account comprising:

a memory; and

a number of processors configured to execute computer readable instructions stored in the memory to;

calculate a prepaid interest amount comprising;

define a term over which to calculate the prepaid interest;

calculate what a total amount of interest charges on the credit card account would be over the defined term if the card holder were to carry a balance equal to a credit limit of the credit card account over the defined term;

define the prepaid interest amount to be a portion of the calculated total amount of interest charges; and

charge the prepaid interest amount to the credit card account in lieu of charging interest on the actual balance of the account.

2. The system of claim 1 wherein the term is equal to a year.

3. The system of claim 1 wherein the portion of the calculated total amount is 50% of the calculated total amount.

4. The system of claim 1 further comprising provide the card holder an option to start charging interest on the actual balance of the account instead of prepaid interest after a pre-determined term has expired.

5. The system of claim 4 wherein the pre-determined term is that which is used to calculate the prepaid interest amount.

6. The system of claim 4 further comprising charge the prepaid interest amount based on a current credit limit after the pre-determined term has expired if the card holder does not choose to opt out.

7. A computer implemented method for charging fees to a card holder of a credit card account comprising:

using a number of processors to execute computer readable instructions for;

calculating a prepaid interest amount comprising;

defining a term over which to calculate the prepaid interest;

calculating what a total amount of interest charges on the credit card account would be over the defined term if the card holder were to carry a balance equal to a credit limit of the credit card account over the defined term;

defining the prepaid interest amount to be a portion of the calculated total amount of interest charges; and

charging the prepaid interest amount to the credit card account in lieu of charging interest on the actual balance of the account.

8. The method of claim 7 wherein the term is equal to a year.

9. The method of claim 7 wherein the portion of the calculated total amount is 50% of the calculated total amount.

10. The method of claim 7 further comprising providing the card holder an option to start charging interest on the actual balance of the account instead of prepaid interest after a pre-determined term has expired.

11. The method of claim 10 wherein the pre-determined term is that which is used to calculate the prepaid interest amount.

12. The method of claim 10 further comprising charging the prepaid interest amount based on a current credit limit after the pre-determined term has expired if the card holder does not choose to opt out.

13. A non-transitory computer readable medium for charging fees to a card holder of a credit card account comprising:

computer readable instructions executable by a processor for;

calculating a prepaid interest amount comprising;

defining a term over which to calculate the prepaid interest;

calculating what a total amount of interest charges on the credit card account would be over the defined term if the card holder were to carry a balance equal to a credit limit of the credit card account over the defined term;

defining the prepaid interest amount to be a portion of the calculated total amount of interest charges; and

charging the prepaid interest amount to the credit card account in lieu of charging interest on the actual balance of the account.

14. The computer readable medium of claim 13 wherein the term is equal to a year.

15. The computer readable medium of claim 13 wherein the portion of the calculated total amount is 50% of the calculated total amount.

16. The computer readable medium of claim 13 further comprising computer readable instructions for providing the card holder an option to start charging interest on the actual balance of the account instead of prepaid interest after a pre-determined term has expired.

17. The computer readable medium of claim 16 wherein the pre-determined term is that which is used to calculate the prepaid interest amount.

18. The computer readable medium of claim 16 further comprising computer readable instructions for charging the prepaid interest amount based on a current credit limit after the pre-determined term has expired if the card holder does not choose to opt out.