System and method for processing and for funding a transaction

• US 9,922,326 B2
• Filed: 06/30/2005
• Issued: 03/20/2018
• Est. Priority Date: 04/13/2004
• Status: Active Grant

• Current Assignee: Capital One Services LLC (Capital One Financial Corporation)
• Original Assignee: Capital One Financial Corporation
• Inventors: Alexander, IV, Robert Minter, Rosenblatt, Charles Aaron, O'Malley, Daniel R, Grimes, Scott David
• Primary Examiner(s): Brockington, III, William S
• Application Number:
  US11/170,937
• Publication Number:
  US 20060004655A1
• Time in Patent Office: 4,646 Days
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

Method for processing a transaction, the method comprising automatically requesting a transfer from a source account to a destination account via a communication link, receiving the transfer, adjusting destination account data associated with the destination account by increasing a balance of the destination account by an amount of the transfer, receiving transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and data identifying the destination account, and processing the attempted transaction.

Claims

1. A method for processing a purchase transaction between an account holder and a merchant, the method comprising:

identifying a credit account and a demand deposit account, the credit account and demand deposit account each associated with the account holder, the credit account being associated with and including credit account data stored in one or more memory units of a first financial institution and the demand deposit account being associated with and including debit account data stored in one or more memory units of a second financial institution;

receiving at the first financial institution, via an authorization network, transaction data associated with a purchase transaction initiated by the account holder with the merchant using the credit account, the purchase transaction having a transaction amount;

providing authorization data to the merchant for the purchase transaction via the authorization network;

transferring from the first financial institution to the merchant, via the authorization network and after providing the authorization data, at least a portion of the transaction amount to pay the merchant from the credit account; and

using one or more computer processors, requesting from the first financial institution payment of the at least a portion of the transaction amount, wherein;

the first financial institution requests from the second financial institution an automated clearing house transfer of the transaction amount from the second financial institution to the first financial institution, the request made via an automated clearing house network after a predetermined delay period, the predetermined delay period providing fraud protection to the account holder before withdrawal of the transaction amount by;

initiating the predetermined delay period, via the first financial institution via a network, upon providing the authorization data to the merchant,

providing an online user interface on a device of the account holder, by the first financial institution, to enable the account holder to review the purchase transaction and determine whether to challenge the purchase transaction, the online user interface including a hyperlink that when clicked by the account holder initiates a challenge process indicating that the account holder believes the purchase transaction is fraudulent, and

automatically transmitting the request upon expiration of the predetermined delay period if the hyperlink is not clicked by the account holder during the predetermined delay period, or

initiating a fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and automatically transmitting the request if no fraud is determined during the fraud resolution process, or

initiating the fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and not withdrawing the transaction amount from the second financial institution by not processing the request if fraud is determined during the fraud resolution process,

the first financial institution receives the automated clearing house transfer via the automated clearing house network, and updating the credit account data and demand deposit account data stored in the one or more memory units of the respective financial institutions by effectuating an increase or decrease thereof, respectively, based on the automated clearing house transfer of the transaction amount.

2. The method of claim 1, wherein the demand deposit account is a checking account, savings account, or money market account.

3. The method of claim 1, wherein the account holder uses a transaction card to initiate the purchase transaction, the transaction card associated with the credit account and the demand deposit account.

4. The method of claim 1, wherein providing authorization data for the purchase transaction comprises determining whether the transaction amount is within a spending limit.

5. The method of claim 4, wherein the spending limit is provided by the first financial institution.

6. The method of claim 4, wherein the spending limit is calculated internally.

7. The method of claim 4, further comprising:

providing an alert notifying the account holder that the account holder is approaching the spending limit.

8. The method of claim 1, wherein the payment is requested on a predetermined day or time.

9. The method of claim 1, wherein the payment is requested on a scheduled basis.

10. The method of claim 1, further comprising:

receiving the payment on a predetermined day or time.

11. The method of claim 1, further comprising:

receiving the payment on a scheduled basis.

12. The method of claim 1, wherein a credit card interchange rate is imposed on the purchase transaction, the credit card interchange rate being a percentage of the transaction amount.

13. The method of claim 12, wherein a reward is provided to the account holder once the purchase transaction is completed.

14. A method for processing a purchase transaction between an account holder and a merchant, the method comprising:

identifying a credit account and a demand deposit account, the credit account and demand deposit account each associated with the account holder, the credit account being associated with and including credit account data stored in one or more memory units of a first financial institution, and the demand deposit account being associated with and including debit account data stored in one or more memory units of a second financial institution;

receiving from a host system a request for payment of at least a portion of a transaction amount using the credit account, wherein;

the transaction amount corresponds to a purchase transaction initiated by the account holder with the merchant using the credit account,

the host system provides authorization data to the merchant, via an authorization network, for the purchase transaction, and

the host system transfers the at least a portion of the transaction amount, via the authorization network and after providing the authorization data, to pay the merchant from the credit account;

posting the purchase transaction to the credit account;

providing the payment to the host system;

using one or more computer processors, requesting from the second financial institution associated with the demand deposit account an automated clearing house transfer of the transaction amount from the second financial institution associated with the demand deposit account to the first financial institution associated with the credit account, the request made via an automated clearing house network after a predetermined delay period, the predetermined delay period providing fraud protection to the account holder before withdrawal of the transaction amount by;

initiating the predetermined delay period, via the first financial institution via a network, upon providing the authorization data to the merchant,

providing an online user interface on a device of the account holder, by the first financial institution, to enable the account holder to review the purchase transaction and determine whether to challenge the purchase transaction, the online user interface including a hyperlink that when clicked by the account holder initiates a challenge process indicating that the account holder believes the purchase transaction is fraudulent, and

automatically transmitting the request upon expiration of the predetermined delay period if the hyperlink is not clicked by the account holder during the predetermined delay period, or

initiating a fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and automatically transmitting the request if no fraud is determined during the fraud resolution process, or

initiating the fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and not withdrawing the transaction amount from the second financial institution by not processing the request if fraud is determined during the fraud resolution process; and

receiving the automated clearing house transfer via the automated clearing house network, and updating the credit account data and demand deposit account data stored in the one or more memory units of the respective financial institutions by effectuating an increase or decrease thereof, respectively, based on the automated clearing house transfer of the transaction amount.

15. The method of claim 14, wherein the demand deposit account is a checking account, savings account, or money market account.

16. The method of claim 14, wherein the account holder uses a transaction card to initiate the purchase transaction, the transaction card associated with the credit account and the demand deposit account.

17. The method of claim 14, wherein the host system determines whether the transaction amount is within a spending limit.

18. The method of claim 17, further comprising:

providing the spending limit to the host system.

19. The method of claim 14, wherein the payment is requested on a predetermined day or time.

20. The method of claim 14, wherein the payment is requested on a scheduled basis.

21. The method of claim 14, wherein the payment is provided on a predetermined day or time.

22. The method of claim 14, wherein the payment is provided on a scheduled basis.

23. The method of claim 14, wherein the automated clearing house transfer is requested on a predetermined day or time.

24. The method of claim 14, wherein the automated clearing house transfer is received on a predetermined day or time.

25. The method of claim 14, wherein a credit card interchange rate is imposed on the purchase transaction, the credit card interchange rate being a percentage of the transaction amount.

26. The method of claim 25, wherein a reward is provided to the account holder once the purchase transaction is completed.

27. A system for processing a purchase transaction between an account holder and a merchant, the system comprising one or more computer processors collectively programmed to:

identify a credit account and a demand deposit account, the credit account and demand deposit account each associated with the account holder, the credit account being associated with and including credit account data stored in one or more memory units of a first financial institution, and the demand deposit account being associated with and including debit account data stored in one or more memory units of a second financial institution;

receive from a host system a request for payment of at least a portion of a transaction amount using the credit account, wherein;

the transaction amount corresponds to a purchase transaction initiated by the account holder with the merchant using the credit account,

the host system provides authorization data to the merchant, via an authorization network, for the purchase transaction, and

the host system transfers the at least a portion of the transaction amount, via the authorization network and after providing the authorization data, to pay the merchant from the credit account;

post the purchase transaction to the credit account;

provide the payment to the host system;

request from the second financial institution associated with the demand deposit account an automated clearing house transfer of the transaction amount from the second financial institution associated with the demand deposit account to the first financial institution associated with the credit account, the request made via an automated clearing house network after a predetermined delay period, the predetermined delay period providing fraud protection to the account holder before withdrawal of the transaction amount by;

initiating the predetermined delay period, via the first financial institution via a network, upon providing the authorization data to the merchant,

providing an online user interface on a device of the account holder, by the first financial institution, to enable the account holder to review the purchase transaction and determine whether to challenge the purchase transaction, the online user interface including a hyperlink that when clicked by the account holder initiates a challenge process indicating that the account holder believes the purchase transaction is fraudulent, and

automatically transmitting the request upon expiration of the predetermined delay period if the hyperlink is not clicked by the account holder during the predetermined delay period, or

initiating a fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and automatically transmitting the request if no fraud is determined during the fraud resolution process, or

initiating the fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and not withdrawing the transaction amount from the second financial institution by not processing the request if fraud is determined during the fraud resolution process; and

receive the automated clearing house transfer via the automated clearing house network, and update the credit account data and demand deposit account data stored in the one or more memory units of the respective financial institutions by effectuating an increase or decrease thereof, respectively, based on the automated clearing house transfer of the transaction amount.

28. A non-transitory computer-accessible medium encoded with computer program code effective to perform the following:

identify a credit account and a demand deposit account, the credit account and demand deposit account each associated with an account holder, the credit account being associated with and including credit account data stored in one or more memory units of a first financial institution, and the demand deposit account being associated with and including debit account data stored in one or more memory units of a second financial institution;

receive from a host system a request for payment of at least a portion of a transaction amount using the credit account, wherein;

the transaction amount corresponds to a purchase transaction initiated by the account holder with the merchant using the credit account,

the host system provides authorization data to the merchant, via an authorization network, for the purchase transaction, and

the host system transfers the at least a portion of the transaction amount, via the authorization network and after providing the authorization data, to pay the merchant from the credit account;

post the purchase transaction to the credit account;

provide the payment to the host system;

request from the second financial institution associated with the demand deposit account an automated clearing house transfer of the transaction amount from the second financial institution the demand deposit account to the first financial institution associated with the credit account, the request made via an automated clearing house network after a predetermined delay period, the predetermined delay period providing fraud protection to the account holder before withdrawal of the transaction amount by;

initiating the predetermined delay period, via the first financial institution via a network, upon providing the authorization data to the merchant,

providing an online user interface on a device of the account holder, by the first financial institution, to enable the account holder to review the purchase transaction and determine whether to challenge the purchase transaction, the online user interface including a hyperlink that when clicked by the account holder initiates a challenge process indicating that the account holder believes the purchase transaction is fraudulent, and

automatically transmitting the request upon expiration of the predetermined delay period if the hyperlink is not clicked by the account holder during the predetermined delay period, or

initiating a fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and automatically transmitting the request if no fraud is determined during the fraud resolution process, or

initiating the fraud resolution process if the account holder clicks the hyperlink during the predetermined delay period and not withdrawing the transaction amount from the second financial institution by not processing the request if fraud is determined during the fraud resolution process; and

receive the automated clearing house transfer via the automated clearing house network, and update the credit account data and demand deposit account data stored in the one or more memory units of the respective financial institutions by effectuating an increase or decrease thereof, respectively, based on the automated clearing house transfer of the transaction amount.