Funds accumulation systems and methods

• US 20090099918A1
• Filed: 10/10/2007
• Published: 04/16/2009
• Est. Priority Date: 10/10/2007
• Status: Abandoned Application

• Current Assignee: Our KARD Funding Systems Incorporated
• Original Assignee: Our KARD Funding Systems Incorporated
• Inventors: Musson, C.Thomas, Ladoulis, Steven T.
• Application Number:
  US11/973,839
• Publication Number:
  US 20090099918A1
• Time in Patent Office: Days
• US Class Current: 705/14.1
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

The disclosed systems and methods leverage the buying power of persons affiliated with the Participating Organization (hereafter “Affiliated Individuals”) by negotiating discounts with a network of Preferred Providers of good and services. Funds are generated in the form of discounts when Affiliated Individuals use a particular spending vehicle to make purchases from a Preferred Provider. According to one embodiment, the discounts are not returned to purchasers at the point of sale but are instead transmitted to a System Administrator where they are pooled for the benefit of the Participating Organization.

Claims

1. A funds accumulation method comprising:

establishing a system administrator for managing a funds accumulation system, said system administrator having a system administrator account with a host financial institution, said host financial institution connected to electronic networks used to conduct consumer transactions and transfer funds;

opening a debit account at said host financial institution for each of a plurality of affiliated individuals associated with a participating organization, each said debit account associated with a spending vehicle and provided with funds by each said affiliated individual, said spending vehicle providing access to said funds for completing consumer transactions;

establishing a network of preferred providers of goods and services who provide said goods and services to said plurality of affiliated individuals in exchange for funds from said debit accounts, said preferred providers agreeing to a pre-determined discount for purchases made with said spending vehicles, said discount being retained by said preferred provider and not used to reduce an amount deducted from said debit account to complete said purchases;

recording purchases made with said spending vehicles and calculating a sum of all discounts generated by said purchases at each preferred provider during a pre-determined period;

transferring an accumulated funds amount equal to said sum of all discounts for said pre-determined period from said preferred provider to said system administrator, said system administrator delivering a pre-determined portion of said accumulated funds to said participating organization.

2. The funds accumulation method of claim 1, wherein said step of transferring comprises said system administrator accessing an account maintained by said preferred provider to withdraw said accumulated funds.

3. The funds accumulation method of claim 1, wherein said participating organization is an educational institution, a religious organization, a charity or a non profit entity.

4. The funds accumulation method of claim 1, wherein said affiliated individual provides funds to said debit account by payroll deduction or electronic funds transfer.

5. A system for accumulating funds from consumer transactions comprising:

a network for facilitating consumer transactions and the transfer of funds, said network interfaced with a plurality of transaction devices;

a plurality of prepaid spending vehicles usable at said plurality of transaction devices to conduct consumer transactions;

a host financial institution issuing said prepaid spending vehicles and maintaining a debit account associated with each said prepaid spending vehicle where prepaid funds are stored, said host financial institution connected to said network;

a plurality of preferred providers of goods or services, each of said plurality of preferred providers having at least one of said transaction devices connected to said network for carrying out said consumer transactions where said prepaid funds are transmitted across said network in exchange for goods or services and at least one account accessible from said network, said preferred provider associating a discount with each consumer transaction conducted with said prepaid spending vehicles, said discount being retained by said preferred provider and not used to reduce an amount deducted from said debit account to complete said purchases; and

a third party having an agreement with each of said preferred providers that the discounts retained by said preferred providers will be periodically transferred to said third party,

whereby funds equal to a sum of said discounts are accumulated with said third party.

6. The system of claim 5, comprising:

a participating organization including a plurality of affiliated individuals, at least some of said affiliated individuals using said prepaid spending vehicles to conduct said consumer transactions and generate said discounts, said member organization receiving from said third party at least a portion of the accumulated discounts generated by said affiliated individuals.

7. The system of claim 5, wherein said third party enters into agreements with said host financial institution governing issuance of said prepaid spending vehicles, and with said preferred providers setting the rate of said discount.

8. The system of claim 5, wherein said preferred provider agrees that said third party is permitted to extract an amount equal to the sum of said discounts from said at least one account across said network.

9. The system of claim 5, wherein said retained discounts are transferred to said third party in real time.

10. The system of claim 5, wherein said retained discounts are transferred to said third party according to an agreed upon schedule.