Promoting savings by facilitating incremental commitments made with credit card and other consumer-initiated transactions

• US 6,631,358 B1
• Filed: 12/27/1999
• Issued: 10/07/2003
• Est. Priority Date: 11/11/1999
• Status: Expired due to Term

• Current Assignee: Vesdia Corporation (Rakuten Group, Inc.)
• Original Assignee: Vesdia Corporation (Rakuten Group, Inc.)
• Inventors: Ogilvie, John W. L.
• Primary Examiner(s): Patel, Jagdish
• Application Number:
  US09/472,658
• Time in Patent Office: 1,380 Days
• Field of Search: 705/39, 705/35, 705/42, 705/38, 705/40
• US Class Current: 705/39
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

The present invention provides tools and techniques for directing funds on behalf of a consumer to a specified account as a beneficial side-effect of a transaction that is primarily directed toward another goal, such as the purchase of merchandise or services. For instance, when the consumer purchases goods with a specified credit card, one version of the invention automatically directs an incremental amount to savings on behalf of the consumer, pursuant to an agreement previously made between the consumer and a facilitator. Under such an agreement, a specified percentage of the transaction or a flat amount per transaction is directed to a savings account, a mutual fund account, or another savings vehicle. The benefited savings vehicle is not necessarily owned by the consumer. The directed funds may be deposited on an annual basis, a threshold basis, or a one-deposit-per-transaction basis. Other variations are also described.

Claims

1. A method of facilitating savings by providing between a consumer and at least one financial institution an infrastructure for incremental savings by the consumer, the method comprising the steps of:

entering an agreement in electronic form with the consumer under which specified funds will be directed on the consumer'"'"'s behalf to a specified savings vehicle at the financial institution in response to at least one otherwise unrelated consumer-initiated covered electronic transaction, the financial institution not a party to the agreement;

noting at least one covered electronic transaction, which is a transaction in response to which funds will be directed pursuant to the agreement, the scope of covered electronic transactions pursuant to the agreement being limited according to at least one of the time at which a transaction occurs and the transaction amount; and

automatically directing specified funds on the consumer'"'"'s behalf to the specified savings vehicle at the financial institution pursuant to the agreement in response to at least one consumer-initiated covered electronic transaction.

2. The method of claim 1, wherein the step of entering an agreement with the consumer is performed by a second financial institution other than the financial institution to which the directing step directs the specified funds.

3. The method of claim 2, wherein the entering step is performed by a bank.

4. The method of claim 2, wherein the entering step is performed by a credit card issuer in connection with a credit card the issuer issues to the consumer.

5. The method of claim 1, wherein the entering step is performed by a merchant which is not a financial institution.

6. The method of claim 1, wherein the specified funds are specified to include a percentage of total consumer-initiated transactions under the agreement.

7. The method of claim 1, wherein the agreement specifies a period, and the specified funds are specified to include a flat amount each time the period passes.

8. The method of claim 1, wherein the specified funds are specified to include a flat one-time amount.

9. The method of claim 1, wherein the specified savings vehicle is specified to include a savings account.

10. The method of claim 1, wherein the specified savings vehicle is specified to include a mutual fund.

11. The method of claim 1, wherein the specified savings vehicle is specified to include a certificate of deposit.

12. The method of claim 1, wherein the specified savings vehicle is specified to include a money-market account.

13. The method of claim 1, wherein the directing step directs specified funds pursuant to the agreement in response to at least one consumer-initiated credit card transaction.

14. The method of claim 13, wherein the agreement gives the consumer an option, under which the consumer can defer payment of the specified funds without thereafter being subject to an interest charge that is applied to other deferred payments for purchases made with the credit card.

15. The method of claim 1, wherein the directing step transfers the specified funds to the financial institution after the amount of specified funds reaches a predefined threshold.

16. The method of claim 1, wherein the directing step transfers the specified funds to the financial institution periodically based on a period of predefined duration.

17. The method of claim 16, wherein the directing step transfers the specified funds to the financial institution annually.

18. The method of claim 1, wherein the directing step transfers the specified funds to the financial institution on a one-deposit-per-covered-transaction basis.

19. The method of claim 1, wherein the agreement specifies a plurality of savings vehicles, and the directing step directs specified funds to each of the specified savings vehicles.

20. The method of claim 1, wherein the consumer is an individual person.

21. The method of claim 1, wherein the consumer is a business.

22. A computer-assisted system for use by a first financial institution in order to facilitate consumer savings, the system comprising:

a determining software means for determining that a consumer-initiated transaction is a covered transaction pursuant to a savings agreement with the consumer under which specified funds will be directed on the consumer'"'"'s behalf to a specified savings vehicle at a second financial institution, covered transactions pursuant to the agreement being determined according to at least one of the time at which a transaction occurs and the transaction amount; and

a directing software means for directing specified funds on the consumer'"'"'s behalf to the specified savings vehicle at the second financial institution pursuant to the agreement.

23. The system of claim 22, wherein the determining means comprises software for determining whether a credit card number appears in a data structure that identifies credit cards which are subject to savings agreements.

24. The system of claim 22, wherein the determining means comprises software for determining whether a smart card identifier appears in a data structure that identifies smart cards which are subject to savings agreements.

25. The system of claim 22, wherein the directing means comprises software for calculating a percentage of the consumer-initiated transaction.

26. The system of claim 22, wherein the directing means comprises software for calculating a service charge to be paid to the first financial institution.