Variable rate payment card

• US 8,533,086 B1
• Filed: 03/11/2013
• Issued: 09/10/2013
• 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:
  US13/794,018
• Time in Patent Office: 183 Days
• Field of Search: 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 system for arranging for payment of a purchase comprising:

a processor;

a memory;

an application stored in the memory of the system and executable by the processor, wherein the application functions to;

receive from a supplier an agreement to accept a payment from a buyer via use of a payment card having variable payment terms;

receive from the supplier a demand deposit account number associated with a demand deposit account of the supplier;

enroll the supplier in a payment network;

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

receive authorization from the supplier 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, assess the supplier a standard interchange rate;

receive from the buyer an approval to pay the invoice

initiate payment from the buyer to the supplier; and

issue a rebate to the demand deposit account of the supplier based upon when the approval to pay the invoice was received.

2. The system of claim 1, wherein the application further functions to calculate the variable payment terms 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 system of claim 2, wherein the application functions to further calculate the variable payment terms 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.

4. The system of claim 1, wherein the application further functions to:

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

5. The system of claim 1, wherein the application further functions to:

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

6. A system for arranging for payment of a purchase comprising:

a processor;

a memory;

an application stored in the memory of the system and executable by the processor, wherein the application functions to;

receive from a supplier an agreement to accept a payment from a buyer via use of a payment card having variable payment terms;

receive from the supplier a demand deposit account number associated with a demand deposit account of the supplier;

enroll the supplier in a payment network;

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

receive authorization from the supplier 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, assess the supplier a predetermined interchange rate;

receive from the buyer an approval to pay the invoice;

initiate payment from the buyer to the supplier; and

issue a rebate to the demand deposit account of the supplier based upon when the approval to pay the invoice was received.

7. The system of claim 6, wherein the application further functions to calculate the variable payment terms 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.

8. The system of claim 7, wherein the application functions to further calculate the variable payment terms 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 system for processing payment from a buyer to a supplier by way of a payment card comprising:

a processor;

a memory;

an application stored in the memory of the system and executable by the processor, wherein the application functions to;

receive from the buyer an agreement to pay the supplier via use of the payment card having variable payment terms;

receive from the supplier a demand deposit account number associated with a demand deposit account of the supplier;

enroll the supplier in a payment network using;

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

receive authorization from the supplier 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, assess the supplier a standard interchange rate;

after a purchase by the buyer from the supplier, assess the supplier a predetermined interchange rate;

receive from the buyer an approval to pay the invoice;

initiate payment from the buyer to the supplier; and

issue a rebate to the demand deposit account of the supplier based upon when the approval to pay the invoice was received.

10. The system of claim 9, wherein the application further functions to calculate variable payment terms 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.

11. The system of claim 10, wherein the application functions to further calculate variable payment terms 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. The system of claim 9, wherein the application further functions to:

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

13. The system of claim 9, wherein the application further functions to:

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