System and method for providing borrowing schemes

• US 8,706,625 B2
• Filed: 02/05/2013
• Issued: 04/22/2014
• 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:
  US13/759,212
• Publication Number:
  US 20130151404A1
• Time in Patent Office: 441 Days
• Field of Search: 235/379, 235/380, 705/35, 705/38, 705/36.R, 705/40, 705/4, 705/39, 705/34, 705/14.1
• 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 method, comprising:

receiving a selection, from a user, of a borrowing scheme for an account through an interface via a network, wherein a bucket, that is part of the account and associated with the borrowing scheme is established and wherein further the borrowing scheme has a set of criteria that determines whether the borrowing scheme applies to a particular transaction for a purchase of goods or services from a merchant;

receiving, by a programmed computer processor, over the network, a designation of a monthly payment amount for the bucket, from the user, wherein the monthly payment amount for the bucket applies to any balance associated with the bucket and is independent of any other balances associated with the account and the designation is performed without calculation of a separate fee;

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

determining whether the transaction meets the set of criteria that determines whether the borrowing scheme applies;

performing, upon a successful determination, by the programmed computer processor, an allocation of an amount associated with the transaction to the bucket;

receiving, from the user, on a recurring basis, a payment comprising the monthly payment amount for the bucket;

allocating the monthly payment amount for the bucket to pay down at least a portion of a balance associated with the bucket.

2. The method of claim 1, wherein the account is a credit card account.

3. The method of claim 1, wherein the monthly payment amount for the bucket pays down only a portion of the balance associated with the bucket.

4. The method of claim 1, wherein the account is an interest free account.

5. The method of claim 1, wherein the monthly payment amount for the bucket is established by the user after the balance is accumulated in the bucket.

6. The method of claim 1, wherein the monthly payment amount for the bucket is established by the user prior to conducting the transaction.

7. The method of claim 1, further comprising:

assessing the user a penalty upon the payment failing to cover the monthly payment amount for the bucket.

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

9. The method of claim 8, wherein the monthly payment amount for the bucket is received from the user via a website.

10. The method of claim 9, wherein the website has a graphical user interface through which the user submits the monthly payment amount for the bucket.

11. A method, comprising:

receiving a selection, from a user, of a borrowing scheme for an account through an interface via a network, wherein the borrowing scheme comprises establishing an interest free bucket that is part of the account and associated with the borrowing scheme and wherein further the borrowing scheme comprises a set of criteria that determines whether the borrowing scheme applies to a particular transaction for a purchase of goods or services from a merchant;

receiving, by a programmed computer processor, over the network, a designation of a monthly payment amount for the bucket, from the user, wherein the monthly payment amount for the bucket applies to any balance associated with the bucket and is independent of any other balances associated with the account;

assessing the user a periodic fee for establishing the monthly payment amount for the bucket;

receiving transaction information, via the network, relating to 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 the set of criteria that determines whether the borrowing scheme applies;

performing, upon a successful determination, by the programmed computer processor, an allocation of an amount associated with the transaction to the bucket;

receiving, from the user, on a recurring basis, a payment comprising the monthly payment amount for the bucket and the periodic fee;

allocating the monthly payment amount for the bucket to pay down at least a portion of a balance associated with the bucket.

12. The method of claim 11, wherein the account is a credit card account.

13. The method of claim 11, wherein the monthly payment amount for the bucket pays down only a portion of the balance associated with the bucket.

14. The method of claim 11, wherein the monthly payment amount for the bucket is established by the user after the balance is accumulated in the bucket.

15. The method of claim 11, wherein the monthly payment amount for the bucket is established by the user prior to conducting the transaction.

16. The method of claim 11, further comprising:

assessing the user a penalty upon the payment failing to cover the monthly payment amount for the bucket.

17. The method of claim 11, further comprising:

assessing the user a penalty for failing to pay the periodic fee.

18. The method of claim 11, wherein the network is the Internet.

19. The method of claim 18, wherein the monthly payment amount for the bucket is received from the user via a website.

20. The method of claim 19, wherein the website has a graphical user interface through which the user submits the monthly payment amount for the bucket.