Systems, approaches and methods involving deferring debit payment for debit-card transactions

• US 8,600,891 B2
• Filed: 08/07/2009
• Issued: 12/03/2013
• Est. Priority Date: 07/12/2000
• Status: Active Grant

• Current Assignee: Tcf Financial Corporation
• Original Assignee: Tcf Financial Corporation
• Inventors: Cooper, William A.
• Primary Examiner(s): Trammell, James
• Assistant Examiner(s): GREENE, DANIEL LAWSON
• Application Number:
  US12/537,979
• Publication Number:
  US 20100005016A1
• Time in Patent Office: 1,579 Days
• Field of Search: 705/34, 705/35, 705/44
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A system and method for managing a financial institution account with a transaction card used as a deferred-debit transaction card and as an automated banking card wherein debit transactions are stored by a managing computer system for a billing cycle without being automatically debited against the account until after debit transaction activity. The card user can earn credit, or interest based on deferred debits. Also, in certain instances, a limited time period is provided relative to the billing cycle, for the user to provide funds as consideration for payment against the transaction card purchases without an automatic debiting of available funds as full consideration for payment against the deferred-debit purchases.

Claims

1. A system for managing activity involving transaction cards issued to respective users relative to their status at a financial institution at which they hold a consideration-bearing financial account, the system comprising a computer arrangement including data representing a predetermined deferred debit limit threshold and being configured and arranged, for each user, for:

storing data representing a balance of funds attributed to the consideration-bearing financial account;

establishing a purchase limit based on a transaction balance of the consideration-bearing financial account;

tracking purchases against a transaction card based upon the purchase limit;

verifying that the predetermined deferred debit limit threshold of the consideration-bearing financial account has not been exceeded;

providing a credit for the user based upon purchases against the transaction card; and

at the end of a billing cycle;

issuing a statement to the user indicating a balance in the consideration-bearing financial account and transaction card purchases occurring during the billing cycle, relative to the debit limit threshold,

providing a time window for the user to provide funds for the transaction card purchases, and

automatically transferring funds for the transaction card purchases reflected on the statement as a function of the transaction card purchases and a communication protocol implemented with the user during the time window.

2. The system of claim 1, wherein the consideration-bearing financial account is an investment account and the computer arrangement is configured and arranged, for each user, for,

storing the data representing a balance of funds attributed to the consideration-bearing financial account by storing data representing an amount of funds held in the investment account, and

establishing the transaction card purchase limit by establishing the limit based upon a transaction balance of the investment account.

3. The system of claim 1, wherein the consideration-bearing financial account is an investment account and the computer arrangement is configured and arranged, for each user, for,

storing the data representing a balance of funds attributed to the consideration-bearing financial account by storing data representing an amount of funds held in the investment account,

establishing the transaction card purchase limit by establishing the limit based upon the transaction balance of the investment account, and

providing the credit by determining an accrued interest amount based upon the balance of funds attributed to the investment account, and increasing the balance of funds based upon the determined accrued interest amount.

4. The system of claim 1, wherein the consideration-bearing financial account is a trust account and the computer arrangement is configured and arranged, for each user, for,

storing the data representing a balance of funds attributed to the consideration-bearing financial account by storing data representing an amount of funds held in the trust account, and

establishing the transaction card purchase limit by establishing the limit based upon a transaction balance of the trust account.

5. The system of claim 1, wherein the computer arrangement is configured and arranged, for each user, for providing the credit for the user based upon purchases against the transaction card by providing an interest credit for the user based upon interest earned on funds for the purchases against the transaction card which remain in the account.

6. The system of claim 1, wherein the computer arrangement is configured and arranged, for each user, for issuing the statement to each user to notify the user of a balance in the consideration-bearing financial account and transaction card purchases occurring during the billing cycle, thereby informing the user of the balance as relative to the debit limit threshold.

7. The system of claim 1, wherein the computer arrangement is configured and arranged, for each user, for posting the statement to an internet site to notify the user of a balance in the consideration-bearing financial account and transaction card purchases occurring during the billing cycle, thereby informing the user of the balance as relative to the debit limit threshold.

8. The system of claim 1, wherein the computer arrangement is configured and arranged, for each user, for verifying that a predetermined deferred debit limit threshold of the consideration-bearing financial account has not been exceeded by verifying that the purchase limit has not been exceeded.

9. The system of claim 1, wherein the computer arrangement is further configured and arranged, for each user, for

tracking withdrawals against the consideration-bearing financial account relative to the transaction card purchase limit,

issuing the statement by issuing a statement indicating the withdrawals occurring during the billing cycle,

providing the time window by providing a time window for the user to provide funds for the withdrawals, and

automatically transferring the funds by automatically transferring funds for the withdrawals reflected on the statement as a function of the withdrawals and a communication protocol implemented with the user during the time window.

10. The system of claim 1, wherein the computer arrangement is configured and arranged, for each user, for automatically transferring the funds for the transaction card purchases by electronically transferring funds from the consideration-bearing financial account to a financial institution that provided payment to cover the purchases.

11. The system of claim 1, wherein the computer arrangement is configured and arranged, for each user, for establishing the transaction card purchase limit by establishing the transaction card purchase limit based on a set credit limit for the user.

12. The system of claim 1, wherein the computer arrangement is further configured and arranged, for each user, for tracking purchases made by at least two users employing separate transaction cards assigned to a single transaction card account.

13. The system of claim 1, wherein the computer arrangement is configured and arranged, for each user, for establishing the purchase limit based on a transaction balance of the consideration-bearing financial account by updating the purchase limit to reflect purchases made during the billing cycle.

14. A method for managing activity involving transaction cards issued to respective users relative to their status at a financial institution at which they hold a consideration-bearing financial account, the method comprising, for each user:

storing, in a database, data representing a predetermined deferred debit limit threshold and data representing a balance of funds attributed to the consideration-bearing financial account;

in a computer circuit, executing programming for

establishing a purchase limit based on a transaction balance of the consideration-bearing financial account;

tracking purchases against a transaction card based upon the purchase limit;

verifying that the predetermined deferred debit limit threshold of the consideration-bearing financial account has not been exceeded;

providing a credit for the user based upon purchases against the transaction card; and

at the end of a billing cycle;

issuing a statement to the user indicating a balance in the consideration-bearing financial account and transaction card purchases occurring during the billing cycle, relative to the debit limit threshold,

providing a time window for the user to provide funds for the transaction card purchases, and

automatically transferring funds for the transaction card purchases reflected on the statement as a function of the transaction card purchases and a communication protocol implemented with the user during the time window.

15. The method of claim 14, wherein

the consideration-bearing financial account is an investment account,

storing data representing a balance of funds attributed to the consideration-bearing financial account includes storing data representing an amount of funds held in an investment account, and

executing programming for

establishing a transaction card purchase limit includes establishing the limit based upon a transaction balance of the investment account, and

providing a credit includes determining an accrued interest amount based upon the balance of funds attributed to the investment account, and increasing the balance of funds based upon the determined accrued interest amount.

16. The method of claim 14, wherein

the consideration-bearing financial account is a trust company account,

storing data representing a balance of funds attributed to the consideration-bearing financial account includes storing data representing an amount of funds held in a trust account, and

executing programming for establishing a transaction card purchase limit includes establishing the limit based upon a transaction balance of the trust account.

17. The method of claim 14, wherein executing programming for providing a credit for the user based upon purchases against the transaction card includes providing an interest credit for the user based upon interest earned on funds for the purchases against the transaction card which remain in the account.

18. The method of claim 14, wherein executing programming for issuing a statement to the user includes notifying the user of a balance in the consideration-bearing financial account and transaction card purchases occurring during the billing cycle, thereby informing the user of the balance as relative to the debit limit threshold.

19. The method of claim 14, wherein executing programming for verifying that a predetermined deferred debit limit threshold of the consideration-bearing financial account has not been exceeded includes verifying that the transaction card purchase limit has not been exceeded.

20. A system for managing activity involving transaction cards issued to respective users relative to their status at a financial institution at which they hold a consideration-bearing financial account, the system comprising:

a computer arrangement configured and arranged, for each user, for;

storing data representing a predetermined deferred debit limit threshold and data representing a balance of funds attributed to the consideration-bearing financial account;

establishing a purchase limit based on a transaction balance of the consideration-bearing financial account;

tracking purchases against a transaction card based upon the purchase limit and monitoring the predetermined deferred debit limit threshold;

providing an interest credit to the user based upon purchases against the transaction card and the balance of funds attributed to the consideration-bearing financial account; and

at the end of a billing cycle, automatically transferring funds to cover the transaction card purchases made during the billing cycle.

21. A purchase transaction system for managing transaction cards issued to respective users relative to their status at a financial institution at which the users hold a consideration-bearing financial account that contains deposited user funds, the system comprising:

a computer arrangement configured and arranged, for each user, for;

storing data representing a deposited balance of funds attributed to the consideration-bearing financial account;

deferring debits from the consideration-bearing financial account for purchases against the transaction card;

establishing a purchase limit based on a transaction balance of the consideration-bearing financial account and a threshold amount;

reducing the purchase limit, in response to a change in the transaction balance of the consideration-bearing financial account relative to the threshold amount; and

authorizing and tracking purchases against the transaction card as a function of the purchase limit, and of unpaid purchases against the transaction card.

22. The system of claim 21, wherein the consideration-bearing financial account is an investment account, and wherein the computer arrangement is configured and arranged, for each user, for

storing the data by storing data representing an amount of funds held in the investment account,

establishing the purchase limit by establishing the limit based upon a transaction balance of the investment account, and

reducing the purchase limit by reducing the limit based upon the investment account and an amount of deferred debits for a billing cycle.

23. The system of claim 21, wherein the consideration-bearing financial account is an investment account, and wherein the computer arrangement is configured and arranged, for each user, for

storing the data by storing data representing an amount of funds held in the investment account,

establishing the purchase limit by establishing the limit based upon a transaction balance of the investment account, and

reducing the purchase limit by reducing the limit based upon the investment account and an amount of deferred debits for a billing cycle, and

determining an accrued interest amount based upon the balance of funds held in the investment account, including an amount of the deferred debit, and increasing the balance of funds in the investment account based upon the determined accrued interest amount.

24. The system of claim 21, wherein the consideration-bearing financial account is a trust account, and wherein the computer arrangement is configured and arranged, for each user, for

storing the data by storing data representing an amount of funds held in the trust account, and

establishing the purchase limit by establishing the limit based upon a transaction balance of the trust account.

25. The system of claim 21, wherein the consideration-bearing financial account is a trust account, and wherein the computer arrangement is configured and arranged, for each user, for

storing the data by storing data representing an amount of funds held in the trust account, and

establishing the purchase limit by establishing the limit based upon the amount of funds held in the trust account.

26. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user, for

deferring the debits by issuing a payment to cover purchases against the transaction card during a billing cycle, and

authorizing and tracking the purchases by storing data to reflect funds attributed to the purchases as deferred debit funds without debiting the funds against the consideration-bearing financial account during the billing cycle.

27. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user, for reducing the purchase limit by reducing the purchase limit in response to the transaction balance dropping below an established balance, prior to making a payment for a purchase against the transaction card.

28. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user, for

providing the user with a time period, after an end of a billing cycle, to select a funding option to provide funds to cover the tracked purchases, and

after the time period expires, transferring electronic funds, designated by the user, to cover the tracked purchases.

29. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user, for

providing the user with a time period, after an end of a billing cycle, to select a funding option to provide funds to cover the tracked purchases, and

after the time period expires, and in response to the user not providing funds, transferring electronic funds from the user'"'"'s consideration-bearing financial account to cover the tracked purchases.

30. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user, for adjusting the purchase limit in response to a change in a balance attributed to the consideration-bearing financial account.

31. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user, for reducing the purchase limit in response to a deposited funds balance of the consideration-bearing financial account dropping below a set amount, relative to purchases made against the transaction card.

32. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user and at the end of a billing cycle, for

providing a statement of purchases against the transaction card to the user, and

resetting unpaid purchases against the transaction card to zero for the purposes of authorizing purchases against the transaction card.

33. The system of claim 21, wherein the computer arrangement is configured and arranged, for each user, for providing an interest credit for the user based upon interest earned on funds that are designated to purchases against the transaction card and that remain in the account during a billing cycle.

34. A method for managing transaction cards issued to respective users relative to their status at a financial institution at which the users hold a consideration-bearing financial account that contains deposited user funds, the method comprising:

operating a computer circuit, for each user, for;

storing data representing a deposited balance of funds attributed to the consideration-bearing financial account;

deferring debits from the consideration-bearing financial account for purchases against the transaction card;

establishing a purchase limit based on a transaction balance of the consideration-bearing financial account and a threshold amount;

reducing the purchase limit, in response to a change in the transaction balance of the consideration-bearing financial account relative to the threshold amount; and

authorizing and tracking purchases against the transaction card as a function of the purchase limit and of unpaid purchases against the transaction card.

35. The method of claim 34, wherein operating a computer circuit for reducing the purchase limit includes reducing the purchase limit in response to the transaction balance dropping below an established balance, prior to making a payment for a purchase against the transaction card.

36. The method of claim 34, wherein operating a computer circuit for

deferring the debits includes issuing a payment to cover purchases against the transaction card during a billing cycle, and

authorizing and tracking the purchases includes storing data to reflect funds attributed to the purchases as deferred debit funds without debiting the funds against the consideration-bearing financial account during the billing cycle.

37. The method of claim 34, wherein operating a computer circuit for

storing the data includes storing data representing an amount of funds held in a trust account, and

establishing the purchase limit includes establishing the limit based upon a transaction balance of the trust account.

38. The method of claim 34, wherein operating a computer circuit for

storing the data includes storing data representing an amount of funds held in a trust account, and

establishing the purchase limit includes establishing the limit based upon the amount of funds held in the trust account.

39. The method of claim 34, wherein operating a computer circuit for

storing the data includes storing data representing an amount of funds held in an investment account,

establishing the purchase limit includes establishing the limit based upon a transaction balance of the investment account, and

reducing the purchase limit includes reducing the limit based upon the investment account and an amount of deferred debits for a billing cycle.

40. The method of claim 34,

wherein operating a computer circuit for

storing the data includes storing data representing an amount of funds held in an investment account,

establishing the purchase limit includes establishing the limit based upon a transaction balance of the investment account, and

reducing the purchase limit includes reducing the limit based upon the investment account and an amount of deferred debits for a billing cycle, and

further including operating the computer circuit for determining an accrued interest amount based upon the balance of funds held in the investment account, including an amount of the deferred debit, and increasing the balance of funds in the investment account based upon the determined accrued interest amount.

41. A system for managing activity involving transaction cards issued to respective users relative to their status at a financial institution at which they hold a consideration-bearing financial account, the system comprising a computer arrangement including data representing a predetermined deferred debit limit threshold and being configured and arranged, for each user, for:

storing data representing a balance of funds attributed to the consideration-bearing financial account;

establishing a purchase limit based on a transaction balance of the consideration-bearing financial account;

tracking purchases against a transaction card based upon the purchase limit;

monitoring the predetermined deferred debit limit threshold of the consideration-bearing financial account to determine if it has been exceeded;

assessing a periodic fee against the consideration-bearing financial account in response to detecting that predetermined deferred debit limit threshold has been exceeded; and

at the end of a billing cycle;

issuing a statement to the user indicating a balance in the consideration-bearing financial account and transaction card purchases occurring during the billing cycle, relative to the debit limit threshold,

providing a time window for the user to provide funds for the transaction card purchases, and

automatically transferring funds for the transaction card purchases reflected on the statement as a function of the transaction card purchases and a communication protocol implemented with the user during the time window.

42. The system of claim 41, wherein the computer arrangement is further configured and arranged to stop assessment of the periodic fee in response to a user depositing funds into the consideration-bearing financial account to bring financial account below the deferred debit limit threshold.

43. The system of claim 41, wherein the periodic fee varies according to the amount that the deferred debit limit threshold is exceeded.

44. The system of claim 41, wherein the periodic fee includes interest charged against the account.

45. The system of claim 41, wherein the periodic fee does not include a per-transaction fee.

46. The system of claim 41, wherein another account is automatically debited in response to the deferred debit limit threshold being exceeded.

47. The system of claim 41, wherein the transaction balance includes banking transactions other than debit card purchases.

48. The system of claim 47, wherein the banking transactions include deposits and withdrawals.

49. The system of claim 41, wherein the predetermined deferred debit limit threshold represents a negative balance.

50. A computer-based system for managing transactions involving transaction cards issued to respective users relative to their status at a financial institution at which the users hold a consideration-bearing financial account that contains deposited user funds, the system including a computer that is configured and programmed to

store data representing a deposited balance of funds attributed to a consideration-bearing financial account held by a user at the financial institution;

defer debits, for purchases made using the transaction card, against the financial account;

establish a purchase limit, for the deferred debits, based on a transaction balance of the financial account and a deferred-debit limit;

reduce the purchase limit, in response to a change in the transaction balance of the financial account relative to the deferred-debit limit;

provide an opportunity for the user to designate one of multiple sources of payment, including the consideration-bearing financial account and another financial account, from which funds may be transferred to increase the balance of funds and cover the deferred debits accrued against the consideration-bearing financial account by purchases made using the transaction card; and

track purchases against the transaction card as a function of the purchase limit and of unpaid purchases against the transaction card.

51. The system of claim 50, wherein the computer is further configured and programmed to defer debits wherein the transaction card is not a credit card and wherein the consideration-bearing financial account is a checking account.

52. The system of claim 50, wherein the computer is further configured and programmed to transfer funds, in response to designation by a user, from a designated source of payment to pay for the deferred debits accrued against the consideration-bearing financial account.

53. They system of claim 50, wherein the computer is further configured and programmed to increase the purchase limit by an amount of the transferred funds.

54. A computer-based method for managing transactions involving transaction cards issued to respective users relative to their status at a financial institution at which the users hold a consideration-bearing financial account that contains deposited user funds, the method executed by a computer that performs the steps of

storing data representing a deposited balance of funds attributed to a consideration-bearing financial account held by a user at the financial institution;

deferring debits, for purchases made using the transaction card, against the financial account;

establishing a purchase limit, for the deferred debits, based on a transaction balance of the financial account and a deferred-debit limit;

reducing the purchase limit, in response to a change in the transaction balance of the financial account relative to the deferred-debit limit;

providing an opportunity for the user to designate one of multiple sources of payment, including the consideration-bearing financial account and another financial account, from which funds may be transferred to increase the balance of funds and cover the deferred debits accrued against the consideration-bearing financial account by purchases made using the transaction card; and

tracking purchases against the transaction card as a function of the purchase limit and of unpaid purchases against the transaction card.

55. The method of claim 54, wherein

the computer performs the steps of, at the end of a billing cycle, resetting the purchase limit to the deferred-debit limit and initiating a payment period, and

the computer performs the step of deferring debits by deferring debits against the account until the end of the initiated payment period, after the purchase limit has been reset, and upon expiration of the payment period, debiting the consideration-bearing financial account to cover the deferred debits.

56. The method of claim 54, wherein the computer performs the steps of

authorizing the purchases;

deferring debits by issuing a payment to cover purchases against the transaction card during a billing cycle, and

tracking purchases by storing data to reflect funds attributed to the purchases as deferred debit funds without debiting the funds against the financial account during the billing cycle.

57. The method of claim 54, wherein the computer performs the steps of

storing data by storing data representing an amount of funds held in a trust account, and

establishing a purchase limit by establishing the limit based a transaction balance of the trust account and the deferred-debit limit

58. The method of claim 54, wherein the computer performs the steps of

storing data by storing data representing an amount of funds held in a trust account, and

establishing a purchase limit by establishing the limit based upon a status of the trust account and the deferred-debit limit.

59. The method of claim 54, wherein the computer performs the steps of

storing the data by storing data representing an amount of funds held in an investment account,

establishing the purchase limit by establishing the limit based upon a transaction balance of the investment account and the deferred-debit limit, and

reducing the purchase limit by reducing the limit based upon a status of the investment account and an amount of deferred debits for a billing cycle.

60. The method of claim 54, wherein the computer performs the steps of

storing the data by storing data representing an amount of funds held in an investment account,

establishing the purchase limit by establishing the limit based upon a transaction balance of the investment account and the deferred-debit limit,

reducing the purchase limit by reducing the limit based upon a status of the investment account and an amount of deferred debits for a billing cycle,

determining an accrued interest amount based upon the balance of funds held in the investment account, including an amount of the deferred debit, and

increasing the balance of funds in the investment account based upon the determined accrued interest amount.

61. The method of claim 54, wherein the consideration-bearing financial account includes investment funds.

62. The method of claim 54, wherein the computer performs the further step of receiving notification of transferred funds from the consideration-bearing financial account.

63. The method of claim 54, wherein the computer performs the further step of receiving notification of funds being transferred, for deposit in the consideration-bearing financial account, from another financial institution.