System, program product, and method for debit card and checking account autodraw

• US 8,738,451 B2
• Filed: 04/02/2009
• Issued: 05/27/2014
• Est. Priority Date: 04/04/2008
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Ahlers, Rebecca, Crowe, Andrew B., Galit, Scott H., Sorbe, Trent
• Primary Examiner(s): Zeender, Ryan
• Assistant Examiner(s): ORTIZ ROMAN, DENISSE Y
• Application Number:
  US12/417,162
• Publication Number:
  US 20090254441A1
• Time in Patent Office: 1,881 Days
• Field of Search: None
• US Class Current: 705/17
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A consumer is prequalified for a line of credit attached to a checking account by a lending institution computer responsive to consumer underwriting data. The lending institution computer makes available draws to the line of credit line in an authorization stream for a proposed payment from the checking account. When the line of credit is accessed, the checking account is credited with an additional value equal to one or more preselected loan increments so that the account then has a new amount totaling a previous amount plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or equals the value of a proposed payment. Next a new value for the line of credit balance available is determined, accounting for value credited to the checking account and a preselected loan advance fee for each loan increment credited to the account.

Claims

1. Non-transitory computer memory encoded with computer program and operable on a computer to allow a debit card user to access a line of credit associated with one or more of a plurality of checking accounts when using a debit card, the computer program comprising:

a first computer program to extend a line of credit associated with one or more of a plurality of checking accounts defining an incremental line of credit qualifying module, the incremental line of credit qualifying module comprising the instructions of;

prequalifying, by a computer associated with a lending institution thereby defining a lending institution computer, a debit card user for a line of credit to be associated with one or more of a plurality of checking accounts responsive to consumer underwriting data and predetermined qualification parameters, and

establishing the line of credit associated with one or more of the plurality of the checking accounts responsive to approval of the line of credit, the line of credit having a total credit limit and adapted to be drawn in at least one of a plurality of separate predetermined loan increments each being equal in value and less than the total credit limit, and

a second computer program to allow one or more draws to the line of credit in one or more of the plurality of separate predetermined loan increments when using a debit card, the second computer program defining an incremental line of credit dispensing module and comprising the instructions of;

determining, by the lending institution computer responsive to receipt of transaction data, when a debit card associated with the one or more of the plurality of the checking accounts is being used as payment for a proposed purchase and when a value of the proposed purchase is greater than a value associated with the one or more of the plurality of checking accounts,

determining, by the lending institution computer, responsive to the value of the proposed purchase being greater than the value associated with the one or more of the plurality of the checking accounts, a number of separate predetermined loan increments to be added to the value associated with the one or more of the plurality of checking accounts so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments and plus the value associated with the one or more of the plurality of checking accounts exceeds the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments,

loading, by the lending institution computer, the one or more of the plurality of checking accounts with one or more of the plurality of separate predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define one or more loaded predetermined increments when the one or more of the loaded predetermined increments and a total value of a predetermined loan advance fee corresponding thereto collectively do not exceed a line of credit balance available, the total value of the predetermined loan advance fee being equal to the value of one of the plurality of separate predetermined loan increments multiplied by the number of separate predetermined loan increments,

determining, by the lending institution computer, a new value of the line of credit balance available, the new value being a previous value of the line of credit balance available minus the one or more loaded predetermined increments to the one or more of the plurality of checking accounts and minus the total value of the predetermined loan advance fee, and

determining, by the lending institution computer, a new value of a line of credit balance, the new value being a previous value of the line of credit balance plus the one or more loaded predetermined increments loaded to the one or more of the plurality of checking accounts plus the total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being less than the loaded predetermined increments loaded to the one or more of the plurality of checking accounts.

2. Non-transitory computer memory as defined in claim 1, wherein the computer program further comprising:

a third computer program to repay the loaded predetermined increment defining an incremental line of credit repayment module, the incremental line of credit repayment module comprising the instruction of;

repaying, by the lending institution computer, at least a first portion of the new value of the line of credit balance responsive to at least one of a plurality of automatic deposits being available to the lending institution computer and prior to being made available to the debit card user, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid thereby defining an unpaid balance.

3. Non-transitory computer memory as defined in claim 2, wherein the first portion of the new value of line of credit balance repaid includes at least the total value of the predetermined loan advance fee, wherein the value of the proposed purchase includes adjustments for one or more of the following:

coupons, discounts, instant rebates, and sales tax, wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations, and wherein the line of credit is bank product so that the line of credit complies with federal Regulation Z.

4. Non-transitory computer memory as defined in claim 1, wherein the line of credit is one of a plurality of line of credits associated with the lending institution computer, and wherein the one or more of the plurality of checking accounts are associated with one or more of a plurality of financial institutions and one or more of a plurality of financial institution computers positioned remote from the lending institution computer.

5. Non-transitory computer memory as defined in claim 4, wherein a core banking system of the lending institution is integrated with a core banking system of one or more of the plurality of financial institutions so that line of credit data stored in the non-transitory memory of the lending institution computer and checking account data stored in a non-transitory memory of the one or more of the plurality of financial institution computers can be concurrently updated to thereby enable real time transactions.

6. Non-transitory computer memory as defined in claim 1, wherein repayment of the line of credit balance occurs from direct deposit funds prior to direct deposit funds being made available in the one or more of the plurality of checking accounts.

7. Non-transitory computer memory as defined in claim 1, wherein the an incremental line of credit qualifying module further includes the instruction of:

associating the line of credit with a payroll processing entity.

8. Non-transitory computer memory as defined in claim 1, wherein the difference between the value of the purchase and the value associated with the one or more of the plurality of checking accounts being no greater than the value of one of the plurality of separate predetermined loan increments and being loaded to the one or more of the plurality of checking accounts without generating additional fees for at least a predetermined amount of time.

9. Non-transitory computer memory as defined in claim 2, wherein the incremental line of credit repayment module comprising the instruction of:

deducting, by the lending institution computer, from the value associated with one or more of the plurality of the checking accounts a second portion of the line of credit balance responsive to the unpaid balance remaining outstanding for a predetermined amount of time.

10. Non-transitory computer memory encoded with computer program and operable on a computer to allow a debit card user to access a line of credit associated with one or more of a plurality of checking accounts when using a debit card, the computer program comprising the instructions of:

establishing, by a computer associated with a financial institution thereby defining a financial institution computer, a line of credit associated with one or more of a plurality of the checking accounts responsive to consumer underwriting data and predetermined qualification parameters, the line of credit having a total credit limit and adapted to be drawn in at least one of a plurality of separate predetermined loan increments each being equal in value and less than the total credit limit,

receiving, by the financial institution computer, data indicating a debit card associated with the one or more of the plurality of the checking accounts is being used as payment for a proposed purchase and a value of the proposed purchase is greater than a value associated with the one or more of the plurality of checking accounts,

determining, by the financial institution computer responsive to receiving the data, a number of separate predetermined loan increments to be added to the value associated with the one or more of the plurality of checking accounts so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments and plus the value associated with the one or more of the plurality of checking accounts exceeds the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments,

loading, by the financial institution computer, the one or more of the plurality of checking accounts with one or more of the plurality of separate predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define one or more loaded predetermined increments when the one or more of the loaded predetermined increments and a total value of a predetermined loan advance fee corresponding thereto collectively do not exceed a line of credit balance available, the total value of the predetermined loan advance fee being equal to the value of one of the plurality of separate predetermined loan increments multiplied by the number of separate predetermined loan increments, and

determining, by the financial institution computer, a new value of the line of credit balance available, the new value being a previous value of the line of credit balance available minus the one or more loaded predetermined increments to the one or more of the plurality of checking accounts and minus the total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being less than the loaded predetermined increments loaded to the one or more of the plurality of checking accounts.

11. Non-transitory computer memory as defined in claim 10, the computer program comprising the instruction of:

repaying at least a first portion of the new value of the line of credit balance responsive to an automatic deposits being available to the financial institution computer and prior to being made available to the debit card user, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid thereby defining an unpaid balance.

12. Non-transitory computer memory as defined in claim 11, wherein the first portion of the new value of line of credit balance repaid includes at least the total value of the predetermined loan advance fee, wherein the value of the proposed purchase includes adjustments for one or more of the following:

coupons, discounts, instant rebates, and sales tax, wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations, and wherein the line of credit is bank product so that the line of credit complies with federal Regulation Z.

13. Non-transitory computer memory as defined in claim 10, wherein the financial institution computer is a first financial institution computer, the line of credit is one of a plurality of line of credits associated with the first financial institution computer, and wherein the one or more of the plurality of checking accounts are associated with one or more of a plurality of second financial institutions and one or more of a plurality of second financial institution computers positioned remote from the first financial institution computer.

14. Non-transitory computer memory as defined in claim 13, wherein a core banking system of the first financial institution is integrated with a core banking system of one or more of the plurality of second financial institutions so that line of credit data stored in the non-transitory memory of the first financial institution computer and checking account data stored in a non-transitory memory of one or more of the plurality of second financial institution computers can be concurrently updated to thereby enable real time transactions.

15. Non-transitory computer memory as defined in claim 10, wherein repayment of the line of credit balance occurs from direct deposit funds prior to the direct deposit funds being made available in the one or more of the plurality of checking accounts.

16. Non-transitory computer memory as defined in claim 10, the computer program comprising the instruction of:

associating the line of credit with a payroll processing entity.

17. Non-transitory computer memory as defined in claim 10, wherein the difference between the value of the purchase and the value associated with the one or more of the plurality of checking accounts being no greater than the value of one of the plurality of separate predetermined loan increments and being loaded to the one or more of the plurality of checking accounts without generating additional fees for at least a predetermined amount of time.

18. Non-transitory computer memory as defined in claim 11, the computer program comprising the instruction of:

deducting, by the financial institution computer, from the value associated with one or more of the plurality of the checking accounts a second portion of the line of credit balance responsive to the unpaid balance remaining outstanding for a predetermined amount of time.

19. A computer associated with a financial institution defining a financial institution computer to provide access to a line of credit when using a debit card, the financial institution computer comprising:

a processor for processing line of credit data; and

non-transitory computer memory encoded with computer program and operable on the financial institution computer to allow a debit card user to access a line of credit associated with one or more of a plurality of checking accounts when using the debit card, the computer program comprising the instructions of;

establishing, by the financial institution computer, a line of credit associated with one or more of a plurality of the checking accounts responsive to consumer underwriting data and predetermined qualification parameters, the line of credit having a total credit limit and adapted to be drawn in at least one of a plurality of separate predetermined loan increments each being equal in value and less than the total credit limit,

determining, by the financial institution computer responsive to receipt of transaction data, when the debit card associated with the one or more of the plurality of the checking accounts is being used as payment for a proposed purchase and when a value of the proposed purchase is greater than a value associated with the one or more of the plurality of checking accounts,

determining, by the financial institution computer responsive to the value associated with the one or more of the plurality of checking accounts being greater than the value of the proposed purchase, a number of separate predetermined loan increments to be added to the value associated with the one or more of the plurality of checking accounts so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments and plus the value associated with the one or more of the plurality of checking accounts exceeds the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments, and

loading, by the financial institution computer, the one or more of the plurality of checking accounts with one or more of the plurality of separate predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define one or more loaded predetermined increments when the one or more of the loaded predetermined increments and a total value of a predetermined loan advance fee corresponding thereto collectively do not exceed a line of credit balance available, the total value of the predetermined loan advance fee being equal to the value of one of the plurality of separate predetermined loan increments multiplied by the number of separate predetermined loan increments.

20. A financial institution computer as defined in claim 19, wherein the financial institution computer being a first financial institution computer and the line of credit is associated with the first financial institution computer, and wherein the one or more of the plurality of checking accounts are associated with one or more of a plurality of second financial institutions and one or more of a plurality of second financial institution computers positioned remote from the first financial institution computer, the computer program comprising the instructions of:

determining, by the first financial institution computer, a new value of the line of credit balance available, the new value being a previous value of the line of credit balance available minus the one or more loaded predetermined increments to the one or more of the plurality of checking accounts and minus the total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being less than the one or more loaded predetermined increments loaded to the one or more of the plurality of checking accounts, and

repaying at least a first portion of the new value of the line of credit balance responsive to an automatic deposits being available to the first financial institution computer and prior to being made available to the debit card user, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid thereby defining an unpaid balance.