System and method for providing borrowing schemes

• US 8,538,876 B2
• Filed: 04/12/2012
• Issued: 09/17/2013
• Est. Priority Date: 02/21/2008
• 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: Vicente, Maria Teresita, Dragotta, Frank Cawley, Field, Manning R., Koppenhaver, Joy Lynn, Moed, James Samuel, Jacoby, Ryan Alan, Groulx, Ian Michael, Dame, Kevin Thomas, Emerson, Heather Margaret, McGarry, Jennifer C.
• Primary Examiner(s): CAMPEN, KELLY SCAGGS
• Application Number:
  US13/445,592
• Publication Number:
  US 20120209761A1
• Time in Patent Office: 523 Days
• Field of Search: 705/35, 705/38, 705/36.R, 705/40, 705/4, 705/39, 705/34
• US Class Current: 705/40
• 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 20/22 Payment schemes or models
• 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 30/0207 Discounts or incentives, e.g. coupons or rebates
• 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 and method providing a borrowing scheme. The method comprises the steps of: establishing an interest-free revolving amount or account using the computer processor; establishing a periodic payment for maintaining the interest-free revolving amount or account using the computer processor; and automatically revising the interest-free revolving amount or account or the periodic payment using the computer processor based upon at least one user performance metric over a predetermined period of time; wherein the interest-free revolving amount or account or the periodic payment for maintaining the interest-free revolving amount is determined by the user via the network.

Claims

1. A computer implemented method, comprising:

providing, by a programmed computer processor, over a network, a plurality of borrowing schemes;

displaying, for a user, the plurality of borrowing schemes using a graphical user interface;

receiving a selection, from the user of at least one of the plurality of borrowing schemes through the graphical user interface via the network;

receiving transaction information, via the network, of a transaction conducted by the user, the transaction being for the purchase of goods or services from a merchant; and

determining whether the transaction meets criteria related to the selected at least one borrowing scheme by applying a set of rules and parameters to the transaction information, wherein the set of rules and parameters relate to the selected at least one borrowing scheme and comprise information indicating a pool of transactions that are eligible to be processed against the at least one borrowing scheme for the user;

performing, upon a successful determining that the transaction meets the criteria, by the programmed computer processor, one or more actions upon the transaction information based on the transaction meeting the criteria and based on the selected at least one borrowing scheme, wherein the actions comprise allocating an amount associated with the transaction to a bucket associated with the selected at least one borrowing scheme;

receiving a payment from the user;

allocating the payment based on the selected at least one borrowing scheme to pay down at least a portion of a balance associated with the selected at least one borrowing scheme.

2. The method, of claim 1, wherein the network is a computer based network.

3. The method of claim 1, wherein the network is the Internet.

4. The method of claim 3, wherein the selection is received via a website.

5. The method of claim 1 further comprising:

establishing, by the programmed computer processor, based upon the selected at least one borrowing scheme, an interest-free revolving amount, comprising a credit or transaction balance, at the request of the user;

establishing, by the programmed computer processor, a periodic payment, comprising a daily, weekly, monthly, bi-monthly, quarterly, or yearly payment, for maintaining the interest-free revolving amount;

automatically revising the periodic payment, using the computer processor, based upon at least one user performance metric measured over a predetermined period of time, wherein the at least one user performance metric measured over a predetermined period of time comprises a predetermined number of timely payments, a predetermined number of transactions, or maintenance of a minimum transaction balance; and

wherein the interest-free revolving amount is determined by the user via the network and the interest-free revolving amount is associated with a credit card, debit card, stored value card, RFID device, or any other transaction card or device.

6. The method of claim 1 further comprising:

receiving, based upon the selected at least one borrowing scheme, at least one pay-in-full requirement from the user via the network wherein the at least one pay-in-full requirement comprises at least one transaction parameter designating transactions that the user wants to pay-in-full and the at least one transaction parameter comprises a merchant category code, identity of a merchant or a vendor, a transaction amount, a transaction level, an identity of a product purchased, or a type of device or account used;

storing in a database the at least one pay-in-full requirement from the user;

determining, by the programmed computer processor, whether the transaction information meets the at least one pay-in-full requirement;

allocating, by the programmed computer processor, the transaction into a pay-in-full bucket that is part of an account, that does not accrue interest, upon the transaction information meeting the pay-in-full requirement;

reporting a balance of the pay-in-full bucket to the user;

wherein the payment from the user pays at least a portion of the balance in the pay-in-full bucket; and

moving any unpaid portion of the balance to a second bucket, that is part of the account, that accrues interest upon any balance therein.

7. The method of claim 1 further comprising:

receiving, from the user, via the network, a designated event, comprising an expenditure of funds, based upon the selected at least one borrowing scheme;

determining parameters tied to or identifying the designated event using the programmed computer processor, wherein the parameters tied to or identifying the designated event comprise at least one identifier or way for;

tying one or more transactions to the designated event or identifying one or more transactions associated with the designated event;

providing incentives to the user via the network, wherein the incentives comprise upgrades, discounts or access relevant to the designated event;

determining whether the transaction is tied to the designated event using the programmed computer processor by determining whether the transaction satisfies at least one parameter tied to or identifying the designated event;

rewarding at least one benefit, to the user, based upon each transaction tied to the designated event using the programmed computer processor, wherein the at least one benefit comprises an interest free period of time or a reduced interest rate applied to the transaction; and

allowing the user to selectively pay down the transactions or balance amount tied to the designated event.

8. The method of claim 1 further comprising:

receiving a time-based spending alert threshold designation from the user via the network, based upon the selected at least one borrowing scheme;

receiving a designation of at least one category of transactions from the user via the network, the at least one category of transactions comprising a merchant category code, a merchant or vendor identity, an amount spent, a transaction level, or products or goods purchased;

receiving an allocation, from the user, of a portion of the time-based spending total threshold designation to the at least one category;

automatically allocating the transaction to the at least one category using the programmed computer processor upon the transaction meeting criteria for the at least one category;

notifying the user via the network of a status of the time-based spending alert threshold designation for the at least one category comprising information that the time-based spending alert threshold designation is being approached or surpassed, wherein the notifying comprises a notification when the allocated transaction amount for a particular category is a certain percentage or more of the designated portion of the time-based spending alert threshold for the particular category; and

automatically modifying, by the programmed computer processor, the portion of the time-based spending alert threshold designation designated for a particular category for an upcoming period of time upon the portion being surpassed for the particular category;

reducing a future month/cycle budget by an amount that the time-based spending alert threshold designation is surpassed in a previous month/cycle and the time-based spending alert threshold designation is valid for a specified period of time based upon input from the user.

9. The method of claim 1 further comprising:

receiving, from the user, via the network, at least one pay down parameter, based upon the selected at least one borrowing scheme, comprising a monthly/cycle payment amount, associated with the transaction or a portion of an account balance amount;

determining, by the programmed computer processor, at least one other pay down parameter, comprising a period of time or a total number of payments, that is determined based upon the selection of the at least one pay down parameter and comprises, along with the at least one pay down parameter, pay down terms for the transaction or the portion of the account balance amount;

permitting the user to selectively modify, via the network, the terms of pay down during a pay back period;

receiving a request to change the at least one pay down parameter or the at least one other pay down parameter; and

recalculating the at least one pay down parameter based on the request to change the at least one other pay down parameter or recalculating the at least one other pay down parameter based on the request to change the at least one pay down parameter.

10. The method of claim 1 further comprising:

receiving from the user, via the network, at least one transaction qualification parameter, based upon the selected at least one borrowing scheme, comprising a merchant designation, a transaction amount designation, a device designation, or a cap or limit designation associated with a transaction category, also determined by the user, for a specified account;

receiving from the user, by the programmed computer processor via the network, a term or number of payments designation associated with the transaction category wherein the term or number of payments designation comprises payments to pay down a balance of the specified account and a designation of a primary account for the payments is also received from the user;

determining, by the programmed computer processor, whether an incoming transaction for the specified account is within the transaction category and meets the transaction qualification parameter, wherein the determining comprises determining whether the incoming transaction satisfies the transaction qualification parameter associated with the transaction category;

generating, by the programmed computer processor, a statement for the user for all incoming transactions within the transaction category according to the term or number of payments wherein the statement comprises an aggregation of all balances associated with transactions within a category and a total amount due.

11. The method of claim 1, further comprising:

automatically generating a statement comprising information regarding the selected at least one borrowing scheme and one or more accounts of the user associated with the at least one borrowing scheme; and

providing the statement to the user via an online statement or a physical hard copy statement.