Variable rate payment card

• US 8,417,601 B1
• Filed: 10/18/2007
• Issued: 04/09/2013
• Est. Priority Date: 10/18/2007
• 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: Simons, Paul
• Primary Examiner(s): Havan, Thu Thao
• Application Number:
  US11/874,561
• Time in Patent Office: 2,000 Days
• Field of Search: 705/14, 705 35- 40
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules

Abstract

A method of arranging for payment of a purchase includes receiving, from a supplier, agreement to accept a payment from a buyer via use of a payment card having variable payment terms; after a purchase by the buyer from the supplier, assessing the supplier a standard interchange rate; receiving, from the buyer, approval to pay the invoice; and issuing, to the supplier, a rebate, based upon when the approval to pay the invoice was received. the variable payment terms are calculated by: determining a first early payment date; determining a second standard payment date; assessing against the supplier a first percentage of the standard interchange rate if the invoice is approved by the first early payment date; and assessing against the supplier a second percentage of the standard interchange rate if the invoice is approved on or after the second standard payment date.

Claims

1. A computer-implemented method of arranging for payment of a purchase, said method comprising the steps of:

receiving from a supplier, at a programmed computer, an agreement to accept a payment from a buyer via use of a payment card having variable payment terms;

receiving from the supplier, at a programmed computer, a demand deposit account number associated with a demand deposit account of the supplier;

enrolling the supplier in a payment network using the programmed computer;

issuing a unique identifier to payments issued to suppliers enrolled in the payment network;

receiving authorization from the supplier, from a programmed computer, to either (i) authorize the payment network to act as a virtual point of sale terminal to initiate payments from buyers enrolled in the payment network or (ii) initiate payments from buyers enrolled in the payment network using the supplier'"'"'s point of sale terminal;

after a purchase by the buyer from the supplier, assessing the supplier, using the programmed computer, a standard interchange rate;

receiving from the buyer, at the programmed computer, an approval to pay the invoice

initiating payment from the buyer to the supplier; and

issuing a rebate to the demand deposit account of the supplier, using the programmed computer, based upon when the approval to pay the invoice was received.

2. The method of claim 1, wherein the variable payment terms are calculated by:

determining a first early payment date;

determining a second standard payment date;

assessing against the supplier a first percentage of the standard interchange rate if the invoice is approved by the first early payment date; and

assessing against the supplier a second percentage of the standard interchange rate if the invoice is approved on or after the second standard payment date.

3. The method of claim 2, wherein the variable payment terms are further calculated by:

reducing the percentage of the standard interchange rate assessed against the supplier by a proportion of the time that an invoice is approved between the first early payment date and the second standard payment date.

7. The method of claim 1, further comprising:

receiving from a supplier, at a programmed computer, an authorization to act as a virtual point of sale terminal to initiate payments from the buyer.

8. The method of claim 1, further comprising:

receiving from a supplier, at a programmed computer, an authorization to initiate payments from the buyer using point of sale terminals of the buyer.

4. A computer-implemented method of arranging for payment of a purchase, said method comprising the steps of:

receiving from a supplier, at a programmed computer, an agreement to accept a payment from a buyer via use of a payment card having variable payment terms;

receiving from the supplier, at a programmed computer, a demand deposit account number associated with a demand deposit account of the supplier;

enrolling the supplier in a payment network using the programmed computer;

issuing a unique identifier to payments issued to suppliers enrolled in the payment network;

receiving authorization from the supplier, from a programmed computer, to either (i) authorize the payment network to act as a virtual point of sale terminal to initiate payments from buyers enrolled in the payment network or (ii) initiate payments from buyers enrolled in the payment network using the supplier'"'"'s point of sale terminal;

after a purchase by the buyer from the supplier, assessing the supplier, using the programmed computer, a pre-determined interchange rate;

receiving from the buyer, at the programmed computer, an approval to pay the invoice;

initiating payment from the buyer to the supplier; and

issuing a rebate to the demand deposit account of the supplier, using the programmed computer, based upon when the approval to pay the invoice was received.

5. The method of claim 4, wherein the variable payment terms are calculated by:

determining a first payment date;

determining a second payment date;

assessing against the supplier a first percentage of the pre-determined interchange rate if the invoice is approved by the first payment date; and

assessing against the supplier a second percentage of the predetermined interchange rate if the invoice is approved on or after the second payment date.

6. The method of claim 5, wherein the variable payment terms are further calculated by:

reducing the percentage of the standard interchange rate assessed against the supplier by a proportion of the time that an invoice is approved between the first early payment date and the second standard payment date.

9. A computer-implemented method for processing payment from a buyer to a supplier, by way of a payment card, said method comprising the steps of:

receiving from the buyer, at a programmed computer, an agreement to pay the supplier via use of the payment card having variable payment terms;

receiving from the supplier, at a programmed computer, a demand deposit account number associated with a demand deposit account of the supplier;

enrolling the supplier in a payment network using the programmed computer;

issuing a unique identifier to the payment card, wherein the unique identifier indicates the payment card is part of the payment network;

receiving authorization from the supplier, from a programmed computer, to either (i) authorize the payment network to act as a virtual point of sale terminal to initiate payments from buyers enrolled in the payment network or (ii) initiate payments from buyers enrolled in the payment network using the supplier'"'"'s point of sale terminal;

after a purchase by the buyer from the supplier, assessing the supplier, using the programmed computer, a standard interchange rate;

receiving from a buyer, at the programmed computer, an approval to pay the invoice;

initiating payment from the buyer to the supplier; and

issuing a rebate to the demand deposit account of the supplier, using the programmed computer, based upon when the approval to pay the invoice was received.

10. The method of claim 9, wherein the variable payment terms are calculated by:

determining a first early payment date;

determining a second standard payment date;

assessing against the supplier a first percentage of the standard interchange rate if the invoice is approved by the first early payment date; and

assessing against the supplier a second percentage of the standard interchange rate if the invoice is approved on or after the second standard payment date.

11. The method of claim 10, wherein the variable payment terms are further calculated by:

reducing the percentage of the standard interchange rate assessed against the supplier by a proportion of the time that an invoice is approved between the first early payment date and the second standard payment date.

12. A computer-implemented method for processing payment from a buyer to a supplier, by way of a payment card, said method comprising the steps of:

receiving from the buyer, at a programmed computer, an agreement to pay the supplier via use of the payment card having variable payment terms;

receiving from the supplier, at a programmed computer, a demand deposit account number associated with a demand deposit account of the supplier;

enrolling the supplier in a payment network using the programmed computer;

issuing a unique identifier to the payment card, wherein the unique identifier indicates the payment card is part of the payment network;

receiving authorization from the supplier, from a programmed computer, to either (i) authorize the payment network to act as a virtual point of sale terminal to initiate payments from buyers enrolled in the payment network or (ii) initiate payments from buyers enrolled in the payment network using the supplier'"'"'s point of sale terminal;

after a purchase by the buyer from the supplier, assessing the supplier, using the programmed computer, a standard interchange rate;

after a purchase by the buyer from the supplier, assessing the supplier, using the programmed computer, a pre-determined interchange rate;

receiving from the buyer, at the programmed computer, an approval to pay the invoice;

initiating payment from the buyer to the supplier; and

issuing a rebate to the demand deposit account of the supplier, using the programmed computer, based upon when the approval to pay the invoice was received.

13. The method of claim 12, wherein the variable payment terms are calculated by:

determining a first payment date;

determining a second payment date;

assessing against the supplier a first percentage of the pre-determined interchange rate if the invoice is approved by the first payment date; and

assessing against the supplier a second percentage of the predetermined interchange rate if the invoice is approved on or after the second payment date.

14. The method of claim 13, wherein the variable payment terms are further calculated by:

reducing the percentage of the standard interchange rate assessed against the supplier by a proportion of the time that an invoice is approved between the first early payment date and the second standard payment date.

15. The method of claim 12 further comprising:

receiving from a supplier, at a programmed computer, an authorization to act as a virtual point of sale terminal to initiate payments from the buyer.

16. The method of claim 12 further comprising:

receiving from a supplier, at a programmed computer, an authorization to initiate payments from the buyer using point of sale terminals of the buyer.

17. A computer-implemented method of arranging for payment of a purchase, said method comprising the steps of:

receiving from a supplier, at a programmed computer, an agreement to accept a payment from a buyer via use of a payment card having variable payment terms;

receiving from the supplier, at a programmed computer, a demand deposit account number associated with a demand deposit account of the supplier;

enrolling the supplier in a payment network using the programmed computer;

issuing a unique identifier to payments issued to suppliers enrolled in the payment network;

receiving authorization from the supplier, from a programmed computer, to either (i) authorize the payment network to act as a virtual point of sale terminal to initiate payments from buyers enrolled in the payment network or (ii) initiate payments from buyers enrolled in the payment network using the supplier'"'"'s point of sale terminal;

after a purchase by the buyer from the supplier, assessing the supplier, using the programmed computer, a standard interchange rate;

receiving from the buyer, at the programmed computer, an approval to pay the invoice;

initiating payment from the buyer to the supplier;

issuing a first rebate to the demand deposit account of the supplier, using the programmed computer, based upon when the approval to pay the invoice was received; and

issuing a second rebate to the buyer, using the programmed computer, based upon when the approval to pay the invoice was received.