System and method of operating a debit card reward program

• US 8,725,633 B1
• Filed: 02/26/2008
• Issued: 05/13/2014
• Est. Priority Date: 04/23/1999
• Status: Expired due to Term

• 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: Masella, Margaret, Bauer, James L.
• Primary Examiner(s): Kazimi, Hani M
• Assistant Examiner(s): Graham, Clement B
• Application Number:
  US12/037,379
• Time in Patent Office: 2,268 Days
• Field of Search: 705 35- 38
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes

Abstract

A system and method for facilitating debit card transactions is disclosed. According to one embodiment, a method for facilitating debit card transactions may comprise the steps of: issuing, by a first financial institution, a debit card to a cardholder, the debit card being associated with a financial account held at or administered by a second financial institution that is different from the first financial institution; receiving a transaction request for a card transaction initiated by the cardholder, the transaction request indicating a mode for processing the transaction request as specified by the cardholder; routing the transaction request, based at least in part on the specified processing mode; processing the transaction request against the financial account to approve or reject the transaction request; and debiting an amount of an approved transaction request from the financial account, the debiting occurring either immediately upon or subsequent to the approval.

Claims

1. A computer-implemented method for facilitating debit card transactions, the method comprising:

issuing, by a first financial institution, a debit card to a cardholder, the debit card being associated with a financial account held at or administered by a second financial institution that is different from the first financial institution;

receiving, by a merchant processor, a transaction request for a card transaction initiated by the cardholder, the transaction request indicating a mode selected from at least two available modes for processing the transaction request as specified by the cardholder, the at least two available modes including an on-line debit processing mode and an off-line debit processing mode;

routing the transaction request via one or more communications networks, the one or more communication networks selected based at least in part on the specified processing mode;

processing, by a transaction processor having access to a storage medium containing data associated with the debit card, the transaction request against the financial account held or administered at the second financial institution to approve or reject the transaction request; and

debiting, by the transaction processor or another processor, an amount of an approved transaction request from the financial account held or administered by the second financial institution, the debiting occurring either immediately upon or subsequent to the approval.

2. The method according to claim 1, wherein the specified processing mode comprises an on-line debit processing mode that requires entry of a personal identification number (PIN).

3. The method according to claim 2, wherein the transaction request is routed through an on-line debit card network or an automated teller machine (ATM) network.

4. The method according to claim 1, wherein the specified processing mode comprises an off-line debit processing mode that approves and settles the transaction request via a credit card system or an automated clearing house (ACH).

5. The method according to claim 4, wherein the transaction request is routed through an off-line debit card network or a credit card network.

6. The method according to claim 1, wherein the specified processing mode comprises a credit processing mode that causes the transaction request to be processed against a linked credit account.

7. The method according to claim 6, wherein the transaction request is routed through an off-line debit card network or a credit card network.

8. The method according to claim 1, wherein the amount of the approved transaction request is debited from the financial account via an automated clearing house (ACH).

9. The method according to claim 1, wherein the financial account is selected from a group consisting of:

a demand deposit account (DDA), a checking account, a savings account, a share draft account, a money market account, a cash account, and an investment management account.

10. The method according to claim 1, wherein the first financial institution is an entity selected from a group consisting of:

a bank, a savings and loan institution, a credit unions, a brokerage firm, a mutual fund company, and an insurance company.

11. The method according to claim 1, wherein the second financial institution is an entity selected from a group consisting of:

a bank, a savings and loan institution, a credit unions, a brokerage firm, a mutual fund company, and an insurance company.

12. The method according to claim 1, further comprising:

administering a reward account in association with the debit card, wherein an award amount is calculated based on one or more parameters of the approved transaction request.

13. The method according to claim 12, wherein, if the one or more parameters are consistent with a theme defined by a sponsor, the award amount is calculated to be a higher percentage of the approved transaction request than if the one or more parameters are inconsistent with the theme.

14. The method according to claim 12, wherein at least a portion of the calculated reward amount is credited to the reward account or the financial account.

15. The method according to claim 12, wherein a portion of the calculated reward amount is delivered or credited to an entity other than the first financial institution or the second financial institution.

16. The method according to claim 15, wherein the entity is a charitable organization, a non-profit or not-for-profit organization.

17. The method according to claim 1, wherein the debit card is embodied in a physical card that bears at least an identifier associated with the financial account.

18. The method according to claim 1, wherein the debit card is embodied in an electronic data file that contains at least an identifier associated with the financial account.

19. A computer-implemented system for facilitating debit card transactions, the system comprising:

at least one computer processor coupled to at least one storage medium, the at least one computer processor being adapted to perform the following;

issuing, by a first financial institution, a debit card to a cardholder, the debit card being associated with a financial account held at or administered by a second financial institution that is different from the first financial institution, wherein the financial account is selected from a group consisting of a demand deposit account (DDA), a checking account, a savings account, a share draft account, a money market account, a cash account, and an investment management account;

receiving a transaction request for a card transaction initiated by the cardholder, the transaction request indicating a mode selected from at least two available modes for processing the transaction request as specified by the cardholder the at least two available modes including an on-line debit processing mode and an off-line debit processing mode;

routing the transaction request over one or more communication networks, the one or more communication networks selected based at least in part on the specified processing mode;

accessing a storage medium containing data associated with the debit card and processing the transaction request against the financial account held or administered by the second financial institution to approve or reject the transaction request; and

debiting an amount of an approved transaction request from the financial account held or administered by the second financial institution, the debiting occurring either immediately upon or subsequent to the approval.

20. A computer-implemented method for facilitating debit card transactions, the method comprising:

issuing, by a first financial institution, a debit card to a cardholder, the debit card being associated with a financial account held at or administered by a second financial institution that is different from the first financial institution, wherein the financial account is selected from a group consisting of;

a demand deposit account (DDA), a checking account, a savings account, a share draft account, a money market account, a cash account, and an investment management account;

receiving, by a merchant processor, a transaction request for a card transaction initiated by the cardholder, the transaction request indicating a mode selected from at least two available modes for processing the transaction request as specified by the cardholder, the specified processing mode being selected from a group consisting of;

an on-line debit processing mode, an off-line debit processing mode, and a credit processing mode;

routing the transaction request via one or more communications networks, the one or more communication networks selected based at least in part on the specified processing mode;

processing, by a transaction processor having access to a storage medium containing data associated with the debit card, the transaction request against the financial account held or administered by the second financial institution to approve or reject the transaction request; and

settling, by the transaction processor or another processor, an approved transaction request against the financial account or a linked credit account held or administered by the second financial institution, the settlement occurring either immediately upon or subsequent to the approval.