Methods and apparatus for facilitating a financial transaction

• US 8,676,708 B1
• Filed: 10/27/2011
• Issued: 03/18/2014
• Est. Priority Date: 10/29/2010
• Status: Active Grant

• Current Assignee: ATON Behavioral Finance LLC
• Original Assignee: ATON Behavioral Finance LLC
• Inventors: Honey, Thomas
• Primary Examiner(s): NIQUETTE, ROBERT R
• Application Number:
  US13/283,372
• Time in Patent Office: 873 Days
• Field of Search: None
• US Class Current: 705/44
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method is provided for authorizing a financial transaction of a consumer, comprising: issuing a card to a cardholder by a card-issuing financial institution; creating a card account associated with the card and the cardholder; creating a deposit account associated with the cardholder; creating a liability payment remittance account associated with the cardholder; associating the card with the deposit account and the payment remittance account; and placing money in the deposit account; receiving a request for authorization for a transaction from a clearing system by the card-issuing financial institution; and if adequate resources exist, transferring funds from the deposit account to the payment remittance account; and authorizing the purchase transaction; thereby building an outstanding balance on the credit card account; applying a funds debit or charge to the payment remittance account; and crediting the credit card account for an amount of payment.

Claims

1. A method for authorizing a financial transaction of a consumer, comprising:

in an account establishment phase;

issuing a credit card to a cardholder by a card-issuing financial institution;

creating a credit card account associated with the card and the cardholder;

creating or designating a deposit account associated with the cardholder;

creating a liability payment remittance account associated with the cardholder;

associating in a database in a memory of a computer system the credit card with the deposit account and the payment remittance account; and

placing or crediting cardholder money in the deposit account;

in a transaction authorization phase;

receiving a request for authorization for a transaction from a clearing system via a network connected to the clearing system by the card-issuing financial institution;

accessing an open to buy file, using a computer processor, to determine if adequate resources exist to complete the transaction, wherein the open to buy file reflects financial aspects of both the card account and the deposit account; and

if adequate resources exist, then;

authorizing, using the computer processor, a purchase transaction; and

transferring funds, utilizing the computer processor, from the deposit account to the payment remittance account;

thereby building an outstanding balance on the credit card account;

in a payment processing phase, after a predetermined period of time or presentment of the card account balance due;

applying, using the computer system, a funds debit or charge to the payment remittance account; and

crediting, using the computer system, the credit card account for an amount of payment.

2. The method of claim 1, further comprising repetitively or periodically reporting a “

paid as agreed”

event to a credit reporting agency.

3. The method of claim 1, further comprising initiating a purchase transaction for a purchase amount by the credit card cardholder with a merchant by using the credit card in a terminal located at a merchant or a cash advance from an attended bank teller terminal or unattended automated teller machine (ATM).

4. The method of claim 1, further comprising requesting the authorization for the transaction by the payment card electronic clearing system.

5. The method of claim 1, wherein the credit card account is selected from the group consisting of:

a) a revolving credit card account enabled to function as a non-revolving credit card account;

b) a conventional credit card account; and

c) a charge card account.

6. The method of claim 1, wherein placing the money in the deposit account is performed by the card-issuing financial institution in response to a deposit by the credit card cardholder.

7. A method for authorizing a financial transaction of a consumer, comprising:

in an account establishment phase;

issuing a card to a cardholder by a card-issuing financial institution;

creating a card account associated with the card and the cardholder;

creating a deposit account associated with the cardholder;

creating a unique identifier for card transaction holds on the cardholder deposit account by way of a separate data store associated with the cardholder;

associating in a database in a memory of a computer system the credit card with the deposit account and any transaction hold data store; and

placing or crediting cardholder money in the deposit account;

in a transaction authorization phase;

receiving a request for authorization for a transaction from a clearing system by the card-issuing financial institution;

accessing an open to buy file, using a computer processor, to determine if adequate resources exist to complete the transaction, wherein the open to buy file reflects financial aspects of both the card account and the deposit account; and

if adequate resources exist, then;

placing a card transaction remittance hold on the deposit account in a cardholder credit card transaction hold data store; and

authorizing a purchase transaction;

thereby building an outstanding balance on the credit card account;

in a payment processing phase, after (a1) a predetermined period of time or (a2) presentment of the credit card account balance due and (b) upon cardholder instruction;

applying a funds debit or charge to the deposit account;

removing applicable said transaction hold; and

crediting the credit card account for an amount of payment.

8. The method of claim 7, wherein, prior to the presentment of the credit card account balance due or payment remittance thereof, specific transaction amounts can be deducted or charged from the liability payment remittance account and credited to the deposit account or the credit card transaction remittance hold removed from the deposit account or cardholder credit card transaction hold file upon cardholder instruction pursuant to a process to dispute a card transaction resulting in a charge-back.

9. The method of claim 7, wherein a plurality of card transaction remittance holds, each uniquely identified, are placed on the deposit account.

10. The method of claim 7, the cardholder instruction is provided via automatic transfer, check, telephone, or an online banking initiated payment remittance order.

11. The method of claim 7, further comprising repetitively or periodically electronically reporting a “

paid as agreed”

event to a credit reporting agency.

12. The method of claim 7, further comprising initiating a purchase transaction for a purchase amount by the credit card cardholder with a merchant by using the card in a terminal located at a merchant or a cash advance from an attended bank teller terminal or unattended ATM.

13. The method of claim 7, further comprising requesting the authorization for the transaction by the payment card electronic clearing system.

14. The method of claim 7, wherein the credit card account is selected from the group consisting of:

a) a revolving credit card account enabled to function as a non-revolving credit card account;

b) a conventional credit card account; and

c) a charge card account.

15. The method of claim 7, wherein placing the money in the deposit account is performed by the card-issuing financial institution in response to a deposit by the cardholder.

16. A method for authorizing a credit card financial transaction of a consumer and assuring timely full payment remittance of subsequently billed transaction charges, comprising:

in an account establishment phase;

issuing a credit card to a cardholder by a card-issuing financial institution;

creating a credit card account associated with the credit card and the cardholder;

creating or designating a deposit account associated with the cardholder;

creating a deposit for liability remittance account associated with the cardholder or a remittance trust account to which cardholder deposit funds are electronically transferred via at least one of the Internet and intranet telecommunications using a computer processor and held for subsequent payment remittance to the cardholder'"'"'s credit card account;

establishing necessary account information and data on the financial institution'"'"'s computer processing capability or processors;

creating a unique identifier for card transaction holds that include memo posts or pending transactions on the cardholder deposit account computer processing file as part of such file or by way of a separate data file store associated with the cardholder;

associating credit card transactions as transaction hold and/or memo post data within the deposit account or any transaction hold data store;

crediting cardholder money in the deposit account;

establishing a credit line that is a spending limit in an open to buy file, using a computer processor, that reflects financial aspects of the cardholder'"'"'s deposit account and periodically throughout each 24-hour day accessing via at least one of the Internet and an intranet the financial aspects of the cardholder'"'"'s deposit account to update said open to buy file;

in a transaction authorization phase;

receiving a request for authorization for a credit card transaction from a bank card electronic transmission clearing system by the credit card-issuing financial institution pursuant to the card'"'"'s use at a merchant terminal, financial institution teller terminal, or ATM;

accessing electronically an open to buy file, using a computer processor, to determine if an adequate credit line exists to complete the transaction, wherein the open to buy file reflects financial aspects of the credit card account and daily frequent periodic updated financial aspects of the deposit account; and

if adequate resources exist, then;

authorizing the credit card transaction and debiting the credit card account, using a computer processor, upon presentation of the transaction when received from the electronic clearing system, thereby building an outstanding balance on the credit card account;

placing electronically a uniquely identified credit card transaction hold on the deposit account or a cardholder credit card transaction hold data store, using a computer processor; and

reconciling, using a computer processor via at least one of the Internet and intranet facility access, uniquely identified credit card transaction hold data in the deposit account with transaction data in the credit card account and transforming the collective transaction hold data to electronically transferred money via at least one of the Internet and intranet transmission facility from the cardholder'"'"'s deposit account to the cardholder'"'"'s remittance deposit account or financial institution remittance trust account at the same financial institution or via at least one of an intranet and another proprietary electronic clearing and settlement system to another financial institution, and thereby removing said applicable holds; and

in a payment processing phase, after a predetermined period of time or presentment of the card account balance due;

applying a funds debit or charge to the payment remittance account and crediting the credit card account for an amount of payment.

17. A method for authorizing a credit card financial transaction of a consumer and assuring timely full payment remittance of subsequently billed transaction charges, comprising:

in an account establishment phase;

issuing a credit card to a cardholder by a card-issuing financial institution;

creating a credit card account associated with the card and the cardholder;

creating or designating a deposit account associated with the cardholder;

creating a deposit for liability remittance account associated with the cardholder or a remittance trust account to which cardholder deposit funds are electronically transferred via at least one of the Internet and intranet telecommunications using a computer processor and held for subsequent payment remittance to the cardholder'"'"'s credit card account;

establishing necessary account information and data on the financial institution'"'"'s computer processing capability or processors;

creating a unique identifier for card transaction holds using memo posts or pending transactions on the cardholder deposit account computer processing file as part of such file or by way of a separate data file store associated with the cardholder;

associating credit card transactions as at least one of a transaction hold and a memo post data within the deposit account or any transaction hold data store;

crediting cardholder money in the deposit account;

establishing a credit line that is a spending limit in an open to buy file, using a computer processor, that reflects financial aspects of the cardholder'"'"'s deposit account and periodically throughout each 24-hour day accessing via internet and/or intranet the financial aspects of the cardholder'"'"'s deposit account to update said open to buy file;

in a transaction authorization phase;

receiving a request for authorization for a credit card transaction from a bank card electronic transmission clearing system by the credit card-issuing financial institution pursuant to the card'"'"'s use at a merchant terminal, financial institution teller terminal, or ATM;

accessing electronically the open to buy file, using a computer processor, to determine if an adequate credit line exists to complete the transaction, wherein the open to buy file reflects financial aspects of the credit card account and daily frequent periodic updated financial aspects of the deposit account; and

if adequate resources exist, then;

authorizing the credit card transaction and debiting the credit card account, using a computer processor, upon presentation of the transaction when received from the electronic clearing system, thereby building an outstanding balance on the credit card account;

placing electronically a uniquely identified credit card transaction hold on the deposit account or a cardholder credit card transaction hold data store, using a computer processor; and

reconciling, using a computer processor via at least one of the Internet and intranet facility access, uniquely identified credit card transaction hold data in the deposit account with transaction data in the credit card account and transforming the collective transaction hold data to electronically transferred money via at least one of the Internet and an intranet transmission facility from the cardholder'"'"'s deposit account to the cardholder'"'"'s remittance deposit account or financial institution remittance trust account at the same financial institution or via at least on of an intranet and another proprietary electronic clearing and settlement system to another financial institution, and thereby removing said applicable holds;

in a payment processing phase, after;

(a1) a predetermined period of time, or (a2) presentment of the credit card account balance due and (b) upon cardholder instruction;

applying funds debit or charge (a) to the cardholder'"'"'s deposit account in the amount of reconciled holds;

removing any applicable said transaction holds;

or (b) to the cardholder'"'"'s remittance deposit account or financial institution remittance trust account;

and, using a computer processor, crediting the credit card account for an amount of payment from funds in said deposit or remittance accounts and removing applicable credit card account transaction holds in the credit card open to buy file.