Method and system for engaging in a transaction between a consumer and a merchant

• US 8,433,648 B2
• Filed: 02/26/2007
• Issued: 04/30/2013
• Est. Priority Date: 02/26/2007
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Bill Me Later Incorporated (PayPal Holdings, Inc.)
• Inventors: Keithley, Thomas H., Lavelle, Mark L., Talbert, Vincent W.
• Primary Examiner(s): Colbert, Ella
• Assistant Examiner(s): Trotter, Scott S
• Application Number:
  US11/710,883
• Publication Number:
  US 20080203153A1
• Time in Patent Office: 2,255 Days
• Field of Search: 705/38, 706/38
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Disclosed is a method for engaging in a transaction between a consumer and a merchant. In particular, the present invention is directed to a method and system for providing instant credit by a credit issuer to the consumer at a point-of-sale of the merchant. In addition, the present invention is directed to a method and system for identifying at least one optimal credit product from a plurality of credit products of at least one credit issuer to a consumer.

Claims

1. A method for identifying at least one optimal credit product from a plurality of credit products of at least one credit issuer to a consumer, the method comprising the steps of:

receiving a credit issuer selection data set including a plurality of data fields by a central optimization database resident in a storage mechanism;

receiving a consumer selection data set including a plurality of data fields by the central optimization database, wherein at least one of the plurality of data fields includes the consumer'"'"'s goals and objectives, wherein the consumer selection data set is presented to the consumer during a transaction between the consumer and a merchant in connection with user pre-selected goods and/or services at a point of sale of the merchant;

determining, by a processor mechanism, at least one optimal credit product to be offered by the at least one credit issuer to the consumer based upon;

(i) at least one data field in the credit issuer selection data set;

(ii) at least one data field in the consumer selection data set, or any combination thereof; and

offering at least one new optimal credit product of the at least one credit issuer, to the consumer at time of payment or consummation of the transaction between the consumer and the merchant at the point of sale of the merchant, wherein the at least one optimal credit product takes into account the consumer'"'"'s goals and objectives, wherein all of the at least one credit issuer, the consumer and the merchant interact or otherwise communicate with the point of sale of the merchant.

2. The method of claim 1, wherein the offering further comprises offering a plurality of optimal credit products to the consumer.

3. The method of claim 2, wherein the optimal credit products are presented to the consumer in a hardcopy form, a wireless form, an electronic form, on a computing device, on a display device, over the Internet, as a web page, on a graphical user interface, at the point-of-sale, before the transaction, during the transaction, upon completion of the transaction, or any combination thereof.

4. The method of claim 2, wherein the plurality of optimal credit products offered to the consumer are ranked according to:

(i) at least one data field in the credit issuer selection data set;

(ii) at least one data field in the consumer selection data set, or any combination thereof.

5. The method of claim 4, further comprising the steps of:

organizing the plurality of ranked credit products in the form of a list; and

presenting the organized list to the consumer.

6. The method of claim 5, wherein the ranked credit products are presented to the consumer in a hardcopy form, a wireless form, an electronic form, on a computing device, on a display device, over the Internet, as a web page, on a graphical user interface, at a point-of-sale, before a transaction, during a transaction, upon completion of a transaction, or any combination thereof.

7. The method of claim 5, further comprising the step of individually and sequentially presenting the plurality of ranked credit products to the consumer.

8. The method of claim 1, wherein the credit product is a credit card, an online payment account, a co-branded credit account, a pre-approved credit product, a private label credit account, a debit account, a stored value account, a single transaction account, an option account to pay when due, or any combination thereof.

9. The method of claim 1, further comprising receiving offers from a plurality of credit issuers, each credit issuer providing at least one of the plurality of credit products.

10. The method of claim 1, wherein the determination step is based upon a computer-implemented algorithm and based at least in part upon consumer data, merchant data, credit issuer data, consumer creditworthiness, consumer credit quality, size of purchase, type of purchase, consumer demographic data, consumer age, consumer location, consumer income, consumer credit data, consumer purchasing behavior, consumer purchasing behavior with a specified credit issuer, credit issuer sales objectives, credit issuer goals, consumer purchasing history, consumer status, consumer lifetime value to credit issuer, credit issuer input data, consumer input data, product credit rate, product credit terms, product benefit data, product relationships, product tie-ins, consumer purchasing behavior at a specified merchant, merchant objectives, merchant goals, consumer lifetime value to merchant, merchant input data or any combination thereof.

11. The method of claim 10, wherein the algorithm is at least one of modifiable, dynamic and configurable.

12. The method of claim 1, wherein the determining further comprises calculating an offer score based at least in part upon consumer data, purchase profile data and merchant profile data.

13. The method of claim 12, wherein the determining is performed by a computer-implemented algorithm.

14. The method of claim 13, wherein the algorithm is at least one of modifiable, dynamic and configurable.

15. The method of claim 1, wherein at least a portion of data fields of the consumer selection data set are at least partially based upon data received from the consumer.

16. The method of claim 1, wherein at least a portion of data fields of the credit issuer selection data set are at least partially based upon data received from the credit issuer, a merchant affiliated with the credit issuer or any combination thereof.

17. The method of claim 1, further comprising the step of providing an interface to the credit issuer for inputting at least one data field in the credit issuer selection data set.

18. The method of claim 1, further comprising the step of providing an interface to the consumer for inputting at least one data field in the consumer selection data set.

19. The method of claim 1, wherein at least one of the plurality of data fields in the consumer selection data set is populated with data reflecting a consumer'"'"'s name, a consumer key, a consumer identification, an account number, an address, a city, a state, a zip code, a country, a telephone number, an e-mail address, a social security number, a date of birth, the merchant'"'"'s name, an identification, a credit issuers name, credit issuer data, credit data, credit product data, credit rate data, credit terms data, credit product benefits data, a product identification, a service identification, a company identity, a merchant identity, consumer credit account balance, merchant history, private label entity data, affiliated private label entity, or any combination thereof.

20. The method of claim 1, wherein at least one of the plurality of data fields in the credit issuer selection data set is populated with data reflecting historical interaction between the consumer and the credit issuer, historical data, merchant data, previous consumer/credit issuer transaction data, consumer creditworthiness, consumer credit quality, size of purchase, type of purchase, consumer demographic data, consumer age, consumer location, consumer income, consumer credit data, consumer purchasing behavior, consumer purchasing behavior with a specified credit issuer, credit issuer sales objectives, credit issuer goals, consumer purchasing history, consumer status, consumer lifetime value to credit issuer, credit issuer input data, consumer input data, product credit rate, product credit terms, product benefit data, product relationships, product tie-ins, consumer purchasing behavior at a specified merchant, merchant objectives, merchant goals, consumer lifetime value to merchant, merchant input data, a transaction amount, a consumer purchase demographic, a product identification, a service identification, consumer type, a company identity, a merchant identity, a third-party risk score, risk data, authentication data, verification data, consumer rating data, profitability data, credit risk data, fraud risk data, transaction risk data, denial data, processing data, a general credit risk score, a credit bureau risk score, a prior approval, prior report data, previous transaction data, a geographical risk factor, credit account data, bankcard balance data, delinquency data, credit segment data, previous transaction data, time between transactions data, previous transaction amount, previous transaction approval status, previous transaction time stamp data, a response code, active trades in database, public record data, trade line data, transaction medium, credit segment data, consumer payment type, consumer payment method, consumer payment history, consumer account history, consumer credit account balance, merchant history, private label entity data, affiliated private label entity, consumer/merchant historical data, negative consumer/credit issuer data, positive consumer/credit issuer data, or any combination thereof.

21. The method of claim 1, wherein the credit issuer selection data set, the consumer selection data set, or any combination thereof includes credit product offering data reflecting an established offer to the consumer of a service, an item, a discount, a redemption, a coupon, a voucher, a non-cash benefit, an incentive, a ticket, an invitation, an event, or any combination thereof.

22. The method of claim 1, wherein the credit issuer selection data set includes consumer recognition data, which is selected based upon:

a current transaction between the consumer and a merchant;

a previous transaction between the consumer and a merchant;

a historical transaction data between the consumer and a merchant;

tracking data specific to a consumer;

a value reflective of the consumer'"'"'s transaction history with a merchant;

a current transaction between the consumer and the credit issuer;

a previous transaction between the consumer and the credit issuer;

a historical transaction data between the consumer and the credit issuer;

a value reflective of the consumer'"'"'s transaction history with the credit issuer;

data associated with transactions with a credit issuer;

transaction-specific data;

consumer-specific data;

transaction frequency data;

transaction amount data;

cumulative transaction frequency data;

cumulative transaction amount data;

consumer demographic data, or any combination thereof.

23. The method of claim 1, wherein the credit issuer selection data set, the consumer selection data set, or any combination thereof is at least one of in communication with and maintained by a system, a central processing system, a credit issuer, a merchant, a seller, an Internet site, an online entity, a web store, a telephone seller, a group of credit issuers, a group of merchants, an organization of credit issuers, an organization of merchants, an entity, a corporation, a company, an offeror of goods, an offeror of services, an affiliation of a plurality of entities, or any combination thereof.

24. The method of claim 1, further comprising the step of presenting the credit issuer with a report including compiled credit issuer-specific data, credit product data, consumer data, consumer selection data, consumer behavior data, consumer survey data or any combination thereof.

25. The method of claim 1, further comprising the step of receiving a selection made by the consumer for at least one optimal credit product.

26. The method of claim 1, further comprising the steps of:

presenting a plurality of optimal credit products to the consumer; and

receiving a selection made by the consumer for at least one of the plurality of credit products.

27. The method of claim 26, further comprising the step of obtaining, from the consumer, selection data regarding the selection of the consumer.

28. The method of claim 27, wherein the selection data is a reason for selection, a reason for not selecting, data directed to the consumer selection, credit product data, credit rate data, credit terms data, credit benefits data, credit affiliation data or any combination thereof.

29. The method of claim 1, wherein the consumer selection data set includes at least one data field reflecting a consumer'"'"'s preferred credit product or preferred credit product terms, the method further comprising the step of determining whether the consumer is eligible for the preferred credit product or preferred credit product terms.

30. The method of claim 29, further comprising the steps of:

if the consumer is eligible for the preferred credit product, offering to the consumer;

(1) the preferred credit product;

(2) a plurality of credit products for which the consumer is eligible, including the preferred credit product;

or (3) a plurality of credit products for which the consumer is eligible, not including the preferred credit product; and

if the consumer is not eligible for the preferred credit product, offering to the consumer;

(1) another credit product with terms similar to the preferred credit product;

(2) a plurality of credit products for which the consumer is eligible;

or (3) an indication of no eligible credit products.

31. The method of claim 1, further comprising receiving a selection made by the consumer for at least one credit product to satisfy a credit amount associated with a transaction between the consumer and a merchant.

32. An apparatus for identifying at least one optimal credit product from a plurality of credit products of at least one credit issuer to a consumer, the apparatus comprising:

a storage mechanism including a central optimization database;

at least one input mechanism for receiving a credit issuer selection data set including a plurality of data fields by a central optimization database and for receiving a consumer selection data set including a plurality of data fields by the central optimization database, wherein at least one of the plurality of data fields of the consumer selection data set includes the consumer'"'"'s goals and objectives, wherein the consumer selection data set is presented to the consumer during a transaction between the consumer and a merchant in connection with user pre-selected goods and/or services at a point of sale of the merchant;

a processor mechanism configured to determine at least one optimal credit product to be offered by the at least one credit issuer to the consumer based upon;

(i) at least one data field in the credit issuer selection data set;

(ii) at least one data field in the consumer selection data set, or any combination thereof; and

an output mechanism for offering at least one optimal credit product of the at least one credit issuer, to the consumer, at time of payment or consummation of the transaction between the consumer and the merchant at the point of sale of the merchant, wherein the at least one optimal credit product takes into account the consumer'"'"'s goals and objectives, wherein all of the at least one credit issuer, the consumer and the merchant interact or otherwise communicate with the point of sale of the merchant.