System and method for providing borrowing schemes

• US 8,190,522 B1
• Filed: 09/17/2009
• Issued: 05/29/2012
• Est. Priority Date: 02/21/2008
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Vicente, Maria Teresita, Dragotta, Frank Cawley, Field, Manning R., Koppenhaver, Joy Lynn, Moed, James Samuel, Jacoby, Ryan Alan, Groulx, Ian Michael, Dame, Kevin Thomas, Emerson, Heather Margaret, McGarry, Jennifer C.
• Primary Examiner(s): CAMPEN, KELLY SCAGGS
• Application Number:
  US12/561,876
• Time in Patent Office: 985 Days
• Field of Search: 705/35, 705/38, 705/36.R, 705/40, 705/4, 705/39, 705/34
• US Class Current: 705/40
• 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 20/22 Payment schemes or models
• 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 30/0207 Discounts or incentives, e.g. coupons or rebates
• 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 and method providing a borrowing scheme. The method comprises the steps of: establishing an interest-free revolving amount or account using the computer processor; establishing a periodic payment for maintaining the interest-free revolving amount or account using the computer processor; and automatically revising the interest-free revolving amount or account or the periodic payment using the computer processor based upon at least one user performance metric over a predetermined period of time; wherein the interest-free revolving amount or account or the periodic payment for maintaining the interest-free revolving amount is determined by the user via the network.

Claims

1. An automated method, wherein the method is executed by a programmed computer processor which communicates with a user via a network, comprising:

receiving at least one pay-in-full requirement from a user via the network wherein the at least one pay-in-full requirement comprises at least one transaction parameter designating transactions that the user wants to pay-in-full and the at least one transaction parameter comprises a merchant category code (MCC), identity of a merchant or a vendor, a transaction amount, a transaction level, an identity of a product purchased, or a type of device or account used;

storing in a database the at least one pay-in-full requirement from the user;

receiving transaction information, via the network, relating to a transaction conducted by the user;

determining, by the programmed computer processor, whether the transaction information meets the at least one pay-in-full requirement;

allocating, by the programmed computer processor, the transaction into a pay-in-full bucket, that does not accrue interest, that is part of an account, upon the transaction information meeting the pay-in-full requirement;

reporting a balance of the pay-in-full bucket to the user;

receiving a payment from the user which pays at least a portion of the balance in the pay-in-full bucket; and

moving any unpaid portion of the balance to a second bucket, that is part of the account, that accrues interest upon any balance therein.

2. The automated method of claim 1, cwherein the payment from the user pays the entire balance in the pay-in-full bucket.

3. The automated method of claim 2, wherein the payment is received via an automatic payment arrangement coordinated by the user.

4. The automated method of claim 1, wherein the at least one transaction parameter is determined by a user via an online portal or by communicating with a live agent.

5. The automated method of claim 4, wherein the online portal comprises an Internet web site.

6. The automated method of claim 1, wherein the account is a credit card account.

7. The automated method of claim 1, wherein the transaction comprises a purchase transaction.

8. The automated method of claim 1, wherein reporting the balance of the pay-in-full bucket comprises presenting the balance to the user in a statement or other communication.

9. A system, comprising:

a transaction card, device or account associated with a user; and

a borrowing scheme processor for;

receiving at least one pay-in-full requirement from the user via a network wherein the at least one pay-in-full requirement comprises at least one transaction parameter designating transactions that the user wants to pay-in-full and the at least one transaction parameter comprises a merchant category code (MCC), identity of a merchant or a vendor, a transaction amount, a transaction level, an identity of a product purchased, or a type of device or account used;

storing the at least one pay-in-full requirement in a database;

receiving transaction information, via the network, relating to a transaction conducted by the user;

determining whether the transaction information meets the at least one pay-in-full requirement;

allocating the transaction into a pay-in-full bucket, that does not accrue interest, that is part of an account, upon the transaction information meeting the pay-in-full requirement;

reporting a balance of the pay-in-full bucket to the user;

receiving a payment from the user which pays at least a portion of the balance in the pay-in-full bucket; and

moving any unpaid portion of the balance to a second bucket, that is part of the account, that accrues interest upon any balance therein.

10. The system of claim 9, wherein the payment from the user pays the entire balance in the pay-in-full bucket.

11. The system of claim 9, wherein the at least one transaction parameter is determined by a user via an online portal or by communicating with a live agent.

12. The system of claim 11, wherein the online portal comprises an Internet web site.

13. The system of claim 9, wherein the account is a credit card account.

14. The system of claim 9, wherein the transaction comprises a purchase transaction.

15. An automated method, wherein the method is executed by a programmed computer processor which communicates with a user via a network, comprising:

receiving at least one pay-in-full requirement from a user via the network, wherein the at least one pay-in-full requirement comprises at least one transaction parameter designating transactions that the user wants to pay-in-full and the at least one transaction parameter is determined by a user via an online portal or by communicating with a live agent and the at least one transaction parameter comprises a merchant category code (MCC), identity of a merchant or a vendor, a transaction amount, a transaction level, an identity of a product purchased, or a type of device or account used;

storing, in a database, the at least one pay-in-full requirement from the user;

receiving, via the network, transaction information relating to a transaction conducted by the user;

receiving a payment from the user which pays at least a portion of a balance in the pay-in-full bucket;

determining, by the programmed computer processor, whether the transaction information meets the at least one pay-in-full requirement;

allocating, by the programmed computer processor, the transaction into a pay-in-full bucket, that does not accrue interest, that is part of an account, upon the transaction information meeting the at least one pay-in-full requirement;

reporting the balance in the pay-in-full bucket to the user;

receiving a payment from the user which pays at least a portion of the balance in the pay-in-full bucket; and

moving any unpaid portion of the balance to a second bucket, that is part of the account, that accrues interest upon any balance therein.