System and method for linked account having sweep feature
First Claim
1. A system for facilitating electronic transactions, the system comprising:
- a transaction card containing information readable at a point-of-sale, the transaction card being issued by an issuer to a qualified consumer, wherein the qualified consumer becomes a cardholder having a privilege to execute purchase transactions with the transaction card at a plurality of merchants by submitting information of a valid demand deposit account, the transaction card linked to the valid demand deposit account, the link between the transaction card and the valid demand deposit account enabling an authorization server to draw funds from the valid demand deposit account; and
an authorization server including a computer processor adapted for communication, through a payment network, with point-of-sale transaction terminals;
the computer processor programmed to perform steps including;
receiving transaction information, through the payment network, from one of the point-of-sale transaction terminals in response to an attempted transaction by the cardholder using the transaction card;
processing the attempted transaction by accessing a daily stored spending line rather than verifying a current balance of the demand deposit account, wherein the value of the daily stored spending line is set at a time prior to the attempted transaction, and the near real-time value of said stored spending line at said time prior to the transaction is set independently of said demand deposit account balance and can be an amount greater than the demand deposit account balance;
authorizing the transaction in near real-time upon determining that a transaction amount of the attempted transaction results in a daily spending total below a daily spending line;
denying the transaction in near real-time upon determining that the transaction amount of the attempted transaction results in a daily spending total above the daily spending line; and
settling the attempted transaction at a time subsequent to the execution of the authorized transaction by sweeping funds from the demand deposit account of the cardholder, wherein upon determining that the sweeping of funds results in the demand deposit account below a certain threshold, the authorization server processes business rules established by the issuer to determine whether to suspend the qualified customer'"'"'s privilege to execute purchase transactions, or charge a fee.
4 Assignments
0 Petitions
Accused Products
Abstract
A linked account instrument is used to access funds in an existing demand deposit account held at a financial institution. Merchant or other transactions are first processed against a demand deposit account via an electronic authorization network. If the demand deposit account does not have sufficient funds, the transactions may be processed as a credit charge against an designated credit account. The demand deposit account may subsequently be swept at predetermined times in search of funds to defray the overdraft. If adequate funds are present, they will be withdrawn from the demand deposit account, and the credit account will be cleared. Otherwise, the instrument holder'"'"'s daily purchasing abilities may be temporarily suspended until the credit account is settled. The processing of overdraft amounts may be on a FIFO, smallest-first or other basis.
63 Citations
20 Claims
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1. A system for facilitating electronic transactions, the system comprising:
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a transaction card containing information readable at a point-of-sale, the transaction card being issued by an issuer to a qualified consumer, wherein the qualified consumer becomes a cardholder having a privilege to execute purchase transactions with the transaction card at a plurality of merchants by submitting information of a valid demand deposit account, the transaction card linked to the valid demand deposit account, the link between the transaction card and the valid demand deposit account enabling an authorization server to draw funds from the valid demand deposit account; and an authorization server including a computer processor adapted for communication, through a payment network, with point-of-sale transaction terminals; the computer processor programmed to perform steps including; receiving transaction information, through the payment network, from one of the point-of-sale transaction terminals in response to an attempted transaction by the cardholder using the transaction card; processing the attempted transaction by accessing a daily stored spending line rather than verifying a current balance of the demand deposit account, wherein the value of the daily stored spending line is set at a time prior to the attempted transaction, and the near real-time value of said stored spending line at said time prior to the transaction is set independently of said demand deposit account balance and can be an amount greater than the demand deposit account balance; authorizing the transaction in near real-time upon determining that a transaction amount of the attempted transaction results in a daily spending total below a daily spending line; denying the transaction in near real-time upon determining that the transaction amount of the attempted transaction results in a daily spending total above the daily spending line; and settling the attempted transaction at a time subsequent to the execution of the authorized transaction by sweeping funds from the demand deposit account of the cardholder, wherein upon determining that the sweeping of funds results in the demand deposit account below a certain threshold, the authorization server processes business rules established by the issuer to determine whether to suspend the qualified customer'"'"'s privilege to execute purchase transactions, or charge a fee. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10)
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11. A computer-implemented method for facilitating electronic funds transactions, the method comprising:
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issuing, by a card-issuing institution, a transaction card to a cardholder by associating the transaction card with a demand deposit account from which the cardholder is authorized to electronically disburse funds, the card-issuing institution storing transaction card account data and demand deposit account information in one or more storage media, the association enabling an authorization server to draw funds from the demand deposit account; receiving, at an authorization server including a computer processor and having access to a storage medium containing transaction card account data of the cardholder, an authorization request for an attempted transaction between a merchant and the cardholder, the authorization request containing information associated with the transaction card and the attempted transaction; processing, using the computer processor of the authorization server, the authorization request by; accessing a daily stored spending line rather than verifying a current balance of the demand deposit account, wherein the value of the daily stored spending line is set at a time prior to the attempted transaction, and the near real-time value of said daily stored spending line at said time prior to the transaction is set independently of said demand deposit account balance and can be an amount greater than the demand deposit account balance; authorizing the transaction in near real-time_upon determining that a transaction amount of the attempted_transaction results in a daily spending total below a daily spending line; denying the attempted transaction in near real-time_upon determining that a transaction amount of the attempted_transaction results in a daily spending total above the daily spending line; and settling the attempted transaction at a time subsequent to the authorization of the authorized transaction by sweeping funds from the demand deposit account of the cardholder, wherein upon determining that the sweeping of funds results in the demand deposit account below a certain threshold, the authorization server processes business rules established by the issuer to determine whether to suspend the qualified customer'"'"'s privilege to execute purchase transactions, or charge a fee. - View Dependent Claims (12, 13, 14, 15, 16, 17, 18, 19, 20)
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Specification