Method and apparatus to process combined credit and debit card transactions

• US 6,038,552 A
• Filed: 12/10/1997
• Issued: 03/14/2000
• Est. Priority Date: 12/10/1997
• Status: Expired due to Term

• Current Assignee: The Chase Manhattan Bank (JP Morgan Chase & Co)
• Original Assignee: The Chase Manhattan Bank (JP Morgan Chase & Co)
• Inventors: Hemminger, Paul, Guido, John, Fleischl, David
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Nguyen, Cuong H.
• Application Number:
  US08/988,169
• Time in Patent Office: 825 Days
• Field of Search: 705/21, 705/30, 705/44, 705/41, 705/17, 705/39, 235/379-381, 345/352, 340/825.33, 380/21, 380/25, 380/29
• US Class Current: 705/44
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/18 involving self-service terminals [SST], vending machines, kiosks or multimedia terminals
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 20/4037 Remote solvency checks
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A method and apparatus for executing a transaction using a credit card includes the steps of: maintaining a credit card account associated with the credit card, the credit card account having a credit limit and a transaction balance indicative of an aggregate of previously authorized transaction amounts in a predetermined period; maintaining a cash account associated with the credit card, the cash account having a cash balance; receiving a request for authorization for a new transaction amount against the credit card account in exchange for goods or services; and authorizing the requested transaction amount when the aggregate of the credit limit and cash balance less the transaction balance exceeds the requested transaction amount.

Claims

1. A method for executing a transaction using a credit card, comprising the steps of:

maintaining a credit card account associated with the credit card, the credit card account having a credit limit and the credit card having a transaction balance indicative of an aggregate of previously authorized transaction amounts in a predetermined period;

maintaining a cash account associated with the credit card, the cash account having a cash balance;

receiving a request for authorization for a new transaction amount against the credit card account in exchange for goods or services; and

authorizing the requested transaction amount when the aggregate of the credit limit and cash balance less the transaction balance exceeds the requested transaction amount.

2. The method of claim 1, further comprising the step of automatically transferring cash from the cash account to the credit card account in an amount which is sufficient to reduce the transaction balance below the credit limit.

3. The method of claim 2, wherein the step of automatically transferring cash from the cash account to the credit card account is performed at the end of a billing cycle.

4. The method of claim 3, wherein the billing cycle is about a one month cycle.

5. The method of claim 1, comprising the steps of:

receiving a request for authorization for an amount of cash issued against the credit card; and

authorizing the amount of cash and transferring the amount of cash from the cash account to satisfy the request.

6. The method of claim 5, comprising the step of assessing a penalty when the cash balance in the cash account falls below a predetermined limit.

7. The method of claim 6, wherein the step of assessing a penalty is performed at the end of a billing cycle.

8. The method of claim 7, wherein the billing cycle is about a one month cycle.

9. The method of claim 1, comprising the step of paying interest on the cash balance in the cash account.

10. The method of claim 9, wherein the step of paying interest includes calculating the interest on an average daily balance of cash in the cash account.

11. The method of claim 9, wherein the step of paying interest is performed at the end of a billing cycle.

12. The method of claim 11, wherein the billing cycle is about a one month cycle.

13. The method of claim 2, comprising the step of assessing a penalty when the cash balance in the cash account falls below a predetermined limit.

14. The method of claim 13, wherein the step of assessing a penalty is performed at the end of a billing cycle.

15. The method of claim 14, wherein the billing cycle is about a one month cycle.

16. The method of claim 1, comprising the step of rejecting the requested transaction amount when it exceeds the aggregate of the credit limit and cash balance less the transaction balance by a predetermined amount.

17. The method of claim 16, wherein the predetermined amount is any amount greater than zero.

18. An apparatus for executing a transaction using a credit card, comprising:

a credit card account associated with the credit card, the credit card account having a credit limit and a transaction balance indicative of an aggregate of previously authorized transaction amounts in a predetermined period;

a cash account associated with the credit card, the cash account having a cash balance; and

a transaction processing unit coupled to the cash account and the credit account, the transaction processing unit being adapted to (i) receive a request for authorization for a new transaction amount against the credit card account in exchange for goods or services; and

(ii) authorize the requested transaction amount when the aggregate of the credit limit and cash balance less the transaction balance exceeds the requested transaction amount.

19. The apparatus of claim 18, wherein the transaction processing unit is further adapted to automatically transfer cash from the cash account to the credit card account in an amount which is sufficient to reduce the transaction balance below the credit limit.

20. The apparatus of claim 18, wherein the processing unit is further adapted to (iii) receive a request for authorization for an amount of cash issued against the credit card;

and (iv) authorize the amount of cash and transfer the amount of cash from the cash account to satisfy the request.

21. The apparatus of claim 20, wherein the processing unit is further adapted to assess a penalty when the cash balance in the cash account falls below a predetermined limit.

22. The apparatus of claim 18, wherein the processing unit is further adapted to pay interest on the cash balance in the cash account.

23. The apparatus of claim 22, wherein the processing unit is adapted to pay the interest by calculating the interest on an average daily balance of cash in the cash account.

24. The apparatus of claim 18, wherein the processing unit is further adapted to assess a penalty when the cash balance in the cash account falls below a predetermined limit.

25. The apparatus of claim 18, wherein the processing unit is further adapted to reject the requested transaction amount when it exceeds the aggregate of the credit limit and cash balance less the transaction balance by a predetermined amount.

26. The apparatus of claim 25, wherein the predetermined amount is any amount greater than zero.