Hybrid account

• US 8,332,311 B2
• Filed: 11/28/2011
• Issued: 12/11/2012
• Est. Priority Date: 07/23/2008
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: eBay Inc.
• Inventors: Kim, Edward
• Primary Examiner(s): Rosen, Elizabeth
• Assistant Examiner(s): GOODBODY, JOAN T
• Application Number:
  US13/305,294
• Publication Number:
  US 20120072339A1
• Time in Patent Office: 379 Days
• Field of Search: 705/38
• US Class Current: 705/38
• 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 20/34 using cards, e.g. integrated circuit [IC] cards or magnetic cards
• CPC Class Codes: G06Q 20/357 Cards having a plurality of specified features
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• 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, according to one embodiment, includes a hybrid account provided by an issuer to a user, the hybrid account having a balance, the balance being either positive, zero, or negative; and a financial instrument including a hybrid card, the hybrid card providing access to the hybrid account, in which transactions using the hybrid card provide interchange income to the issuer, the issuer charges interest to the hybrid account when the balance is negative, and the issuer pays interest to the hybrid account when the balance is positive.

Claims

1. A system comprising:

a processor, and

a data storage device including a computer-readable medium having computer readable code for instructing the processor, and when executed by the processor performs operations comprising;

establishing by the processor a hybrid account that is one consolidated account having attributes according to an extended credit line and having a balance, the balance capable of being one of positive, zero, and negative, and having no billing cycles, wherein the hybrid account is provided by an issuer to a user;

charging interest by the processor to the hybrid account when the balance is negative, wherein there is no payment due date for a negative balance; and

paying interest to the hybrid account when the balance is positive.

2. The system of claim 1, further comprising:

a hybrid card providing access to the hybrid account, wherein transactions using the hybrid card provide an interchange income to the issuer.

3. The system of claim 1, wherein:

an interchange income provided to the issuer is used to increase a credit line for the user of the hybrid account.

4. The system of claim 1, further comprising:

a hybrid card providing access to the hybrid account, wherein;

a purchase transaction using the hybrid card earns a cash back credit to the hybrid account; and

an amount of the cash back credit is a specified percentage of an amount of the purchase transaction.

5. The system of claim 1, wherein transactions for the hybrid account are settled daily.

6. The system of claim 1, wherein:

when the hybrid account has a net lender status, comprising a positive balance, the hybrid account is paid an interest rate that is close or equal to the risk free rate.

7. The system of claim 1, wherein:

when the hybrid account has a net borrower status, comprising a negative balance, the hybrid account is charged a competitive interest rate.

8. The system of claim 1, wherein an interest rate is variable and the interest is a function of the prime rate.

9. The system of claim 1, wherein negative balance amounts are divided into tranches, each tranche having a corresponding interest rate.

10. The system of claim 1, wherein positive balance amounts are divided into tranches, each tranche having a corresponding interest rate.

11. A computer-implemented method comprising:

providing, by a processor, access to a hybrid account via a hybrid card, wherein the hybrid card includes;

a card body; and

an identifier on the card body that corresponds to the hybrid account so that the hybrid card provides access to the hybrid account;

managing the hybrid account, by the processor, as one consolidated account, having an account balance, the account balance being either positive, zero, or negative, with no billing cycles;

charging interest, by the processor, on the account balance when the account balance is negative, wherein there is no payment due date for a negative balance; and

paying interest, by the processor, on the account balance when the account balance is positive.

12. The method of claim 11, wherein managing the hybrid account includes providing attributes according to an extended credit line, the attributes including a credit limit, and a percentage rate for cash back payments.

13. The method of claim 11, further comprising:

providing an interchange income to an issuer of the hybrid card for transactions using the hybrid card.

14. The method of claim 11, further comprising:

using an interchange income provided to an issuer of the hybrid card to increase a credit line for a user of the hybrid card.

15. The method of claim 11, further comprising:

paying cash back to the hybrid account including paying the hybrid account from an interchange fee earned by using the hybrid card.

16. The method of claim 11, further comprising:

crediting the hybrid account with a cash back credit, wherein;

a purchase transaction using the hybrid card earns the cash back credit to the hybrid account; and

an amount of the cash back credit is a specified percentage of an amount of the purchase transaction.

17. The method of claim 11, further comprising:

extending an extended credit line for the hybrid account according to a determination of risk based on a result of evaluating a user profile.

18. The method of claim 11, further comprising:

extending a credit line for the hybrid account to a user with a credit limit that is based on a determination of risk.

19. The method of claim 11, further comprising:

when the hybrid account has a net lender status, comprising a positive balance, paying the hybrid account an interest rate that is close or equal to the risk free rate.

20. The method of claim 11, further comprising:

when the hybrid account has a net borrower status, comprising a negative balance, charging the hybrid account a competitive interest rate.