System and method for processing qualified healthcare account related financial transactions

• US 8,788,281 B1
• Filed: 05/06/2008
• Issued: 07/22/2014
• Est. Priority Date: 12/03/2007
• 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: Pletz, Tracy, Rochford, Joseph
• Primary Examiner(s): NGUYEN, TRAN N
• Application Number:
  US12/115,850
• Time in Patent Office: 2,268 Days
• Field of Search: 705/2
• US Class Current: 705/2
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G16H 10/60 for patient-specific data, e.g. for electronic patient records

Abstract

This invention relates to a system and method for processing qualified healthcare account transactions (e.g., HFA, Health FSA, and HRA) and non-qualified credit card transactions within a transaction processing system. In particular, this invention relates to a multi-purse payment device associated with a transaction processing system for auto-substantiating qualified healthcare transactions.

Claims

1. A computer implemented method for processing consumer healthcare account related reimbursement eligible transactions, the computer implemented method comprising:

issuing a user a credit card payment device associated with a credit account and a consumer healthcare account, the credit card payment device effecting payment from a first payment source for purchases eligible for reimbursement by the consumer healthcare account pursuant to one or more transaction rules governing the eligibility for reimbursement of purchases made by consumer healthcare accounts, and effecting payment from a second payment source for purchases not eligible for reimbursement by the consumer healthcare account, wherein said transaction rules determine the reimbursement eligibility of the purchases;

identifying a user transaction made with the payment device at a merchant for one or more purchases;

receiving merchant data regarding the user transaction including an authorization request;

determining, using a computer processor, whether the user transaction is authorized and transmitting a response to the authorization request; and

debiting the user from the second payment source if the transaction is unauthorized, and performing reimbursement steps if the transaction is authorized, and if at least a portion of the transaction is eligible for reimbursement, the reimbursement steps including;

identifying, using a reimbursement engine including computer processing components, reimbursable expenses in the transaction based at least in part on the merchant data;

transmitting a reimbursement request using the computer processing components to a consumer healthcare account administrator for reimbursable expenses;

receiving a reimbursement request response at the reimbursement engine from the consumer healthcare account administrator; and

reimbursing the user for reimbursable expenses implementing computer processing components of a reimbursement application engine based at least in part on the reimbursement request response from the consumer healthcare account administrator.

2. The method of claim 1, wherein the merchant data regarding the user transaction including an authorization request is received from a transaction, payment, or association network.

3. The method of claim 1, wherein the merchant data regarding the user transaction includes line-item product data.

4. The method of claim 1, wherein the merchant data regarding the user transaction identifies reimbursable expenses.

5. The method of claim 1, wherein the merchant data regarding the user transaction is derived at least in part from an inventory information approval system.

6. The method of claim 1, wherein the merchant data regarding the user transaction includes the full dollar amount of the transaction.

7. The method of claim 1, wherein the user transaction is identified at least in part by evaluating a payment device bin identification number or issuer identification number.

8. The method of claim 1, wherein the reimbursement request is transmitted from the reimbursement engine to a flexible spending account administrator.

9. The method of claim 1, wherein the reimbursement request response is received from a flexible spending account administrator.

10. The method of claim 1 further comprising:

generating a credit account statement identifying reimbursed expenses.

11. The method of claim 1, wherein the credit account is associated with a rewards program.

12. The method of claim 1, wherein the first payment source and the second payment source are combined into a single account.

13. The method of claim 1, wherein the first payment source and the second payment source are separate accounts.

14. A computer implemented method for processing consumer healthcare account related reimbursement eligible transactions, the computer implemented method comprising:

identifying a user transaction initiated at a merchant for one or more purchases made with a credit card payment device associated with a credit account and a consumer healthcare account, the credit card payment device effecting payment from a first payment source for purchases eligible for reimbursement by the consumer healthcare account pursuant to one or more transaction rules governing the eligibility for reimbursement of purchases made by consumer healthcare accounts, and effecting payment from a second payment source for purchases not eligible for reimbursement by the consumer healthcare account, wherein said transaction rules determine the reimbursement eligibility of the purchases;

receiving merchant data regarding the user transaction including an authorization request;

differentiating, based on the received merchant data, using computer processing components of a transaction packaging router, reimbursable expenses from non-reimbursable expenses in the user transaction;

transmitting, using the computer processing components of the transaction packaging router, an authorization request to a consumer healthcare account administrator, wherein the authorization request includes at least some merchant data for identifying the reimbursable expenses in the transaction;

receiving a response to the authorization request from the consumer healthcare account administrator;

transmitting, using the computer processing components of the transaction packaging router, an authorization request to a credit account issuer including at least some merchant data identifying the non-reimbursable expenses in the transaction;

receiving a response to the authorization request from the credit account issuer; and

transmitting, using the computer processing components of the transaction packaging router, an authorization response to the merchant including at least in part the response to the authorization request from the consumer healthcare account administrator and the response to the authorization request from the credit account issuer.

15. The method of claim 14, wherein the merchant data regarding the user transaction is received from a transaction, payment, or association network.

16. The method of claim 14, wherein the merchant data regarding the user transaction includes line-item product data.

17. The method of claim 14, wherein the merchant data regarding the user transaction identifies reimbursable expenses.

18. The method of claim 14, wherein the merchant data regarding the user transaction is derived at least in part from an inventory information approval system.

19. The method of claim 14, wherein the merchant data regarding the user transaction includes the full dollar amount of the transaction.

20. The method of claim 14, wherein the first payment source and the second payment source are combined into a single account.

21. The method of claim 14, wherein the first payment source and the second payment source are separate accounts.

22. A computer implemented method for processing consumer healthcare account related reimbursement eligible transactions, the computer implemented method comprising:

identifying a user transaction initiated at a merchant for one or more purchases made with a credit card payment device, the credit card payment device effecting payment from a first payment source for purchases eligible for reimbursement by the consumer healthcare account pursuant to one or more transaction rules governing the eligibility for reimbursement of purchases made by consumer healthcare accounts, and effecting payment from a second payment source for purchases not eligible for reimbursement by the consumer healthcare account, wherein said transaction rules determine the reimbursement eligibility of the purchases;

receiving merchant data regarding the user transaction including an authorization request;

determining, using computer processing components of a transaction packaging router, that the payment device is linked to the credit account and a consumer healthcare debit account;

transmitting, using the computer processing components of the transaction packaging router, an authorization request to a consumer healthcare account administrator, wherein the authorization request includes at least some merchant data for identifying reimbursable expenses in the transaction;

receiving an authorization response from the consumer healthcare account administrator;

transmitting, using the computer processing components of the transaction packaging router, the authorization response to the merchant including at least in part the response to the authorization request from the consumer healthcare account administrator;

receiving merchant data regarding the user transaction including a second authorization request;

transmitting, using the computer processing components of the transaction packaging router, merchant data including the second authorization request to a credit account issuer;

receiving a response to the second authorization request from the credit account issuer; and

transmitting an authorization response to the merchant including at least in part the response to the authorization request from the credit account issuer.

23. The method of claim 22, wherein the merchant data regarding the user transaction is received from a transaction, payment, or association network.

24. The method of claim 22, wherein the merchant data regarding the user transaction includes line-item product data.

25. The method of claim 22, wherein the merchant data regarding the user transaction identifies reimbursable expenses.

26. The method of claim 22, wherein the merchant data regarding the user transaction is derived at least in part from an inventory information approval system.

27. The method of claim 22, wherein the merchant data regarding the user transaction includes the full dollar amount of the transaction.

28. The method of claim 22, wherein the first payment source and the second payment source are combined into a single account.

29. The method of claim 22, wherein the first payment source and the second payment source are separate accounts.

30. A system for processing consumer healthcare account related reimbursement eligible transactions, the system comprising:

a processor for processing a credit transaction for a purchase made with a credit card payment device associated with a credit account and a consumer healthcare account, the credit card payment device effecting payment from a first payment source for purchases eligible for reimbursement by the consumer healthcare account pursuant to one or more transaction rules governing the eligibility for reimbursement of purchases made by consumer healthcare accounts, and effecting payment from a second payment source for purchases not eligible for reimbursement by the consumer healthcare account, wherein said transaction rules determine the reimbursement eligibility of the purchases;

an eligibility module implementing computer processing components for identifying consumer healthcare account reimbursement eligible expenses in the purchase;

an authorization request router for routing authorization requests from a requestor to a financial institution;

a credit authorization decision engine implementing computer processing components for decisioning on authorization requests and generating authorization responses;

an authorization response router for routing authorization responses to the requestor from the financial institution;

a reimbursement engine implementing computer processing components for leveraging data received from the authorization request router to initiate a transaction for reimbursement of eligible expenses in the purchase; and

a reimbursement application engine implementing computer processing components for applying reimbursement payment amount data.

31. The system of claim 30, wherein the reimbursement engine is operable to generate a reimbursement request.

32. The system of claim 31, further comprising a reimbursement request processing engine for processing a reimbursement request.

33. The system of claim 32, wherein the reimbursement request processing engine includes an authorization generation module for generating an authorization response, wherein the authorization response includes at least a reimbursement payment amount.

34. The system of claim 33 wherein the authorization processing engine is further operable to transmit the reimbursement authorization response via a reimbursement authorization response router.

35. The system of claim 32, wherein the reimbursement request processing engine includes one or more of:

an evaluation module including rules for evaluating product, line item, price, or other data from a reimbursement request;

an authorization determination module including rules for approving or declining reimbursement requests; and

an authorization generation module for generating an authorization response.

36. The system of claim 31, wherein the reimbursement request includes at least one of:

product data, purchase data, purchase price, user identification, line item data, and the total reimbursement amount requested.

37. The system of claim 31, further comprising a reimbursement request router.

38. The system of claim 30, wherein the eligibility module is operable to access an inventory information approval system.

39. The system of claim 38, wherein the eligibility module is operable to access product and/or service data, including:

line-item data, price data, product purpose data, product code data, service code data, date of purchase data, time of purchase data, and merchant identification data.

40. The system of claim 30, wherein the authorization request router is a transaction, payment, or association network.

41. The system of claim 30, further comprising an identification module for matching a bin identification number associated with the payment device to a corresponding bin identification number in a bin identification number file.

42. The method of claim 30, wherein the first payment source and the second payment source are combined into a single account.

43. The method of claim 30, wherein the first payment source and the second payment source are separate accounts.

44. A system for processing consumer healthcare account related reimbursement eligible transactions, the system comprising:

a processor for processing a credit transaction for a purchase with a credit card payment device associated with a credit account and a consumer healthcare account, the credit card payment device effecting payment from a first payment source for purchases eligible for reimbursement by the consumer healthcare account pursuant to one or more transaction rules governing the eligibility for reimbursement of purchases made by consumer healthcare accounts, and effecting payment from a second payment source for purchases not eligible for reimbursement by the consumer healthcare account, wherein said transaction rules determine the reimbursement eligibility of the purchases;

a transaction packaging router for routing authorization requests;

a routing rules engine implementing computer processing components for at least one of identifying the purchase with a payment device associated with a credit account and a consumer healthcare account and applying routing rules;

a customer defined criteria rules engine implementing computer processing components for creating routing rules dependent at least in part upon the user'"'"'s consumer healthcare account enrollment criteria; and

a credit authorization decision engine implementing computer processing components for decisioning on authorization requests and generating authorization responses.

45. The system of claim 44, further comprising an eligibility module for identifying consumer healthcare account reimbursement eligible expenses in the user'"'"'s purchase.

46. The system of claim 45, wherein the user'"'"'s transaction data is accessible by a user for one or more of review, modification, and download.

47. The system of claim 44, wherein the transaction packaging router is operable to differentiate consumer healthcare account reimbursable expenses from other expenses in the transaction.

48. The system of claim 44, further comprising a primary account number cross-reference engine for substituting credit card related data in an authorization request with consumer healthcare account related data.

49. The system of claim 44, wherein the transaction packaging router is part of a transaction, payment, or association network.

50. The system of claim 44, further comprising an authorization request processing engine for processing an authorization request.

51. The system of claim 44, further comprising an authorization response generation module for generating an authorization response.

52. The system of claim 44, further comprising an evaluation module including rules for evaluating product, line item, price, or other data from an authorization request.

53. The system of claim 44, further comprising a storage module for storing a user'"'"'s transaction data.

54. The system of claim 44, further comprising a re-packaging engine for generating packaged authorization requests.

55. The system of claim 44, further comprising an authorization response evaluation engine for evaluating authorization responses.

56. The method of claim 44, wherein the first payment source and the second payment source are combined into a single account.

57. The method of claim 44, wherein the first payment source and the second payment source are separate accounts.

58. A system for processing consumer healthcare account related reimbursement eligible transactions, the system comprising:

a processor for processing a credit transaction for a purchase made with a credit card payment device associated with a credit account and a consumer healthcare account, the credit card payment device effecting payment from a first payment source for purchases eligible for reimbursement by the consumer healthcare account pursuant to one or more transaction rules governing the eligibility for reimbursement of purchases made by consumer healthcare accounts, and effecting payment from a second payment source for purchases not eligible for reimbursement by the consumer healthcare account, wherein said transaction rules determine the reimbursement eligibility of the purchases;

an identification module for matching a bin identification number associated with the payment device to a corresponding bin identification number in a bin identification number file;

an eligibility module implementing computer processing components for identifying consumer healthcare account reimbursement eligible expenses in the purchase, wherein the eligibility module is operable to access an inventory information approval system to access product and/or service data, including;

line-item data, price data, product purpose data, product code data, service code data, date of purchase data, time of purchase data, and merchant identification data;

a reimbursement engine implementing computer processing components for leveraging data received from the authorization request router to initiate a transaction for reimbursement of eligible expenses in the purchase, wherein the reimbursement engine is operable to generate a reimbursement request, the reimbursement request includes at least one of;

product data, purchase data, purchase price, user identification, line item data, and the total reimbursement amount requested;

a reimbursement request router;

a reimbursement request processing engine for processing a reimbursement request, wherein the reimbursement request processing engine includes an authorization generation module for generating an authorization response, wherein the authorization response includes at least a reimbursement payment amount;

an authorization request router for routing authorization requests from a requestor to a financial institution, wherein the authorization request router is a transaction, payment, or association network;

a credit authorization decision engine implementing computer processing components for decisioning on authorization requests and generating authorization responses;

an authorization response router for routing authorization responses to the requestor from the financial institution; and

a reimbursement application engine implementing computer processing components for applying reimbursement payment amount data.