Universal payment protection

• US 8,447,670 B1
• Filed: 12/23/2009
• Issued: 05/21/2013
• Est. Priority Date: 05/27/2005
• 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: DeLoach, John Mark
• Primary Examiner(s): NGUYEN, TIEN C
• Application Number:
  US12/645,927
• Time in Patent Office: 1,245 Days
• Field of Search: 705/4, 705/35, 705/37, 705/38, 709/217, 709/227, 726/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/3555 Personalisation of two or more cards
• CPC Class Codes: G06Q 20/3572 Multiple accounts on card
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data

Abstract

A system for and method of providing payment protection upon the occurrence of trigger events. The system and method include an account, which may be associated with a credit card or other financial product. An accountholder may select trigger events and associated benefits. Upon the occurrence of a trigger event, the issuing entity will evaluate whether the accountholder is entitled to receive an associated benefit. Each benefit is intended to address at least one payment obligation. For example, an account may include payment protection in the form of automatic payment of minimum monthly credit card fees should the accountholder involuntarily become unemployed.

Claims

1. A method for an issuer to relive an entity from at least one payment obligation, the method comprising:

receiving, through a computer, an application from an entity for an account associated with a line of credit which is restricted to a payment obligation not associated with the issuer;

performing, through the computer, a risk-assessment of the application to determine credit risk of the entity

receiving, through the computer, a selection of trigger event and benefit pairs, each comprising a trigger event and a line of credit associated with each trigger event;

calculating, through the computer, a value for each trigger event and benefit pair, wherein the value is based at least in part on information associated with the entity;

calculating and applying, through the computer, a payment protection price for each trigger event and benefit pair based on the value;

determining, using, whether to issue the account for a price to the entity using information obtained from the risk-assessment, wherein the price is determined based at least in part on the value calculated for each trigger event and benefit pair; and

issuing the account to the entity based on the determination.

2. The method of claim 1, wherein the entity has more than one payment obligation not associated with the issuer and wherein the line of credit is further restricted to which of the more than one payment obligations may receive funds from the line of credit.

3. The method of claim 1, wherein the payment obligation is associated with one or more merchants and the line of credit is restricted to the one or more merchants by making the line of credit available for use at the restricted one or more merchants.

4. The method of claim 1, wherein the payment obligation is selected from the group comprising of:

loan payment, insurance bill, rent, utility bill, hospital bill, mortgage payment, credit card bill, retirement savings, car payment, penalty, fine, attorney fee, tax, lease, line of credit, letter of credit payment, and child support.

5. The method of claim 1, wherein the trigger event is selected from a group comprising of:

loss of employment, divorce, disability, hospitalization, medical treatment, family leave, natural disaster, judicial proceeding, tax event, call to duty, fire, flood, marriage, child birth, child adoption, retirement, and death.

6. The method of claim 1, wherein the account comprises at least one financial product selected from the group comprising of:

a credit card, a benefit card, a stored value card, a letter of credit, and a line of credit.

7. The method of claim 1, wherein the at least one of risk-determination techniques comprise checking a credit associated with the entity.

8. The method of claim 1, wherein the price further includes an additional charge, wherein the additional charge include at least one of an administrative costs, marketing costs, competitive analysis.

9. The system of claim 1, wherein the account comprises at least one financial product selected from the group consisting of a credit card, a benefit card, a stored value card, a letter of credit, and a line of credit.

10. The system of claim 1, wherein the at least one of risk-determination techniques comprise checking a credit associated with the entity.

11. The system of claim 1, wherein the price further includes an additional charge, wherein the additional charge include at least one of an administrative costs, marketing costs, competitive analysis.

12. A system for relieving an entity from at least one payment obligation, the system comprising:

a webpage configured to;

receive an application from an entity for an account associated with a restricted line of credit which is restricted to a payment obligation not associated with an account issuer;

receive a selection of trigger event and benefit pairs, each comprising a trigger event and a line of credit associated with each trigger event;

a computer having a programmed processor configured to;

perform a risk-assessment of the application to determine credit risk of the entity;

calculate a value for each trigger event and benefit pair wherein the value is based at least in part on information associated with the entity;

calculate and apply a payment protection price for each trigger event and benefit pair based on the value;

determine whether to issue the account for a price to the entity using information obtained from the risk-assessment, wherein the price is determined based at least in part on the value calculated for each trigger event and benefit pair; and

issuing the account to the entity based on the determination.

13. The system of claim 12, wherein the entity has more than one payment obligation not associated with the issuer and wherein the line of credit is further restricted to which of the more than one payment obligations may receive funds from the line of credit.

14. The system of claim 12, wherein the payment obligation is associated with one or more merchants and the line of credit is restricted to the one or more merchants by making the line of credit available for use at the restricted one or more merchants.

15. The system of claim 12, wherein the payment obligation is selected from the group comprising of loan payment, insurance bill, rent, utility bill, hospital bill, mortgage payment, credit card bill, retirement savings, car payment, penalty, fine, attorney fee, tax, lease, line of credit, letter of credit payment, and child support.

16. The system of claim 12, wherein the trigger event is selected from a group comprising of:

loss of employment, divorce, disability, hospitalization, medical treatment, family leave, natural disaster, judicial proceeding, tax event, call to duty, fire, flood, marriage, child birth, child adoption, retirement, and death.