Systems and methods for a prepaid interest credit card account

• US 8,442,911 B1
• Filed: 04/10/2012
• Issued: 05/14/2013
• Est. Priority Date: 10/15/2008
• Status: Active Grant

• Current Assignee: United States Automobile Association (United Services Automobile Association)
• Original Assignee: United States Automobile Association (United Services Automobile Association)
• Inventors: Higgins, Andrew J.
• Primary Examiner(s): MILEF, ELDA G
• Application Number:
  US13/443,165
• Time in Patent Office: 399 Days
• Field of Search: 705/35, 705/38, 705/39
• 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 and executed to;

determine that the card holder has opted in for the credit card account;

calculate the prepaid interest amount based on;

a term over which the prepaid interest is to be calculated;

an amount of interest charges on the credit card account should the card holder carry a balance on the card for the term;

wherein the prepaid interest amount is defined to be a portion of the amount of interest charges on the credit card account should the card holder carry a balance on the card for the term; and

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

determine whether the prepaid interest amount has been received;

responsive to a determination that the prepaid interest amount has been received, charging the card holder only an unpaid balance of the account with no interest;

responsive to a determination that the prepaid interest amount has not yet been received, charging the card holder the unpaid balance with interest; and

allow the card holder an option to start charging interest on the actual balance of the account instead of the prepaid interest amount after a pre-determined term has expired.

2. The system of claim 1, wherein the amount of interest charges on the credit card account should the card holder carry a balance on the card for the term includes a total amount of interest charges on the credit card account should the card holder carry a balance equal to a credit limit of the credit card over the term regardless of the actual balance of the account.

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

4. The system of claim 1, wherein the portion of the amount of interest charges on the credit card account should the card holder carry a balance on the card for the term is 50%.

5. The system of claim 1, wherein the pre-determined term is the same as the term over which the prepaid interest amount is to be calculated.

6. The system of claim 1, including computer readable instructions stored in the memory and executed to 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 non-transitory computer readable medium having instructions stored thereon and executed by a processor to:

determine that a card holder has opted in for a prepaid interest credit card account;

charge the account of the card holder a prepaid interest amount;

determine whether the prepaid interest amount has been received;

responsive to a determination that the prepaid interest amount has been received, charging the card holder only an unpaid balance of the account with no interest;

responsive to a determination that the prepaid interest amount has not yet been received, charging the card holder the unpaid balance with interest; and

allow the card holder an option to start charging interest on an actual balance of the account instead of the prepaid interest amount after a pre-determined term has expired.

8. The non-transitory computer readable medium of claim 7, including instructions executed to determine whether the prepaid interest amount has been received responsive to a reaching of an end of a billing cycle.

9. The non-transitory computer readable medium of claim 8, wherein the billing cycle is a monthly billing cycle.

10. The non-transitory computer readable medium of claim 7, wherein the prepaid interest amount is determined by:

determining an amount of interest charges on the credit card account should the card holder carry a balance on the card for the pre-determined term; and

wherein the prepaid interest amount is at least a portion of the determined amount of interest charges on the credit card account should the card holder carry the balance on the card for the pre-determined term.

11. The non-transitory computer readable medium of claim 10, wherein the pre-determined term is one year.

12. A non-transitory computer readable medium having instructions stored thereon and executed by a processor to:

determine that a card holder has opted in for a prepaid interest credit card account;

charge the account of the card holder a prepaid interest amount based on a term and on an amount of interest charges on the credit card account;

determine whether the prepaid interest amount has been received;

responsive to a determination that the prepaid interest amount has been received, charging the card holder only an unpaid balance of the account with no interest;

responsive to a determination that the prepaid interest amount has not yet been received, charging the card holder the unpaid balance with interest; and

determine that the customer has opted out of the prepaid interest credit card account responsive to a determination that the prepaid interest amount has not yet been received after the term.

13. The non-transitory computer readable medium of claim 12, wherein the amount of interest charges on the credit card account are calculated over the term.

14. The non-transitory computer readable medium of claim 12, wherein the prepaid interest amount includes a portion of the amount of interest charges on the credit card account.

15. The non-transitory computer readable medium of claim 14, wherein a portion of the amount of interest charges on the credit card account ranges from 0% to 100% of the amount of interest charges on the credit card account.

16. The non-transitory computer readable medium of claim 12, wherein the unpaid balance of the account includes an unpaid balance of the account that is due on a monthly basis.

17. The non-transitory computer readable medium of claim 12, including instructions executed to determine that the card holder has opted in for the prepaid interest credit card account after the term has expired.