Stock credit card

• US 6,895,386 B1
• Filed: 10/14/1998
• Issued: 05/17/2005
• Est. Priority Date: 10/15/1997
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Bachman, Richard, Pilkonis, Patrice
• Primary Examiner(s): Hafiz, Tariq R.
• Assistant Examiner(s): Robinson-Boyce, Akiba
• Application Number:
  US09/172,020
• Time in Patent Office: 2,407 Days
• Field of Search: 705/14, 705/1, 705/30, 705/35, 705/41
• US Class Current: 705/14.13
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0211 Determining the effectiveness of discounts or incentives
• CPC Class Codes: G06Q 30/0212 Chance discounts or incentives
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A method and system for purchasing assets on behalf of customers who use financial transaction media such as credit cards, ATM/CAT cards, and electronic commerce managed by a financial institution. As the customer uses his financial transaction medium to purchase goods and services, he generates a sum of purchases. This sum is converted into incentive points that are added to incentive points previously earned. When the customer has enough incentive points, the method or system purchases an asset, such as a stock, on the customer'"'"'s behalf, using the incentive points. The utilization of this method or system may be over a short-time promotional period, or it may commemorate a special occasion, or it may be used as part of a compensation package for an employee of a corporation.

Claims

1. A method of placing a purchasing order for a financial asset comprising:

summing at least one purchase made by a customer to form a sum, wherein the customer uses a particular financial transaction medium to make the at least one purchase and further wherein the particular financial transaction medium is associated with a seller of the financial asset;

multiplying the sum by a first factor to form a weighted sum;

retrieving a price of the financial asset;

comparing the price of the financial asset to the weighted sum to determine if the weighted sum is at least equal to the price of the financial asset; and

forwarding a message to an appropriate institution indicating that the institution is to purchase the financial asset, wherein the message is forwarded when the weighted sum is at least equal to the price of the financial asset.

2. The method of claim 1 further comprising:

changing the weighted sum by adding a running sum comprised of at least one previously calculated weighted sum to the weighted sum; and

wherein the changing of the weighted sum is performed before the comparing of the price of the financial asset to the weighted sum.

3. The method of claim 2 further comprising:

saving the weighted sum so as to form the previously weighted sum; and

wherein the saving of the weighted sum is performed after the comparing of the weighted sum to the price of the financial asset and it is determined that the price to the financial asset is more than the weighted sum.

4. The method of claim 2 further comprising:

receiving a report form the institution indicating an actual price paid for the financial asset;

subtracting the actual price for the financial asset from the weighted sum; and

wherein the subtracting of the actual price for the financial asset from the weighted sum is performed after the changing of the weighted sum.

5. The method of claim 1 further comprising:

changing the price of the financial asset by multiplying the price of the financial asset by a second factor before comparing the price of the financial asset to the weighted sum.

6. The method of claim 1 further comprising:

comparing the sum to a predetermined minimum value; and

if the sum is less than the predetermined minimum, automatically exiting the method.

7. The method of claim 1 further comprising:

comparing the sum to a predetermined maximum value and multiplying the predetermined maximum value by the first factor to form the weighted sum instead of the multiplying the sum by the first factor to form the weighted sum; and

wherein the comparing of the sum to the predetermined maximum value and multiplying the predetermined maximum value by the first factor to form the weighted sum are performed before comparing the price of the financial asset to the weighted sum.

8. The method of claim 1 wherein the method is available to the customer for a limited time.

9. The method of claim 8 wherein the limited time coincides with a special event.

10. The method of claim 1 wherein the method is implemented to encourage use of the particular financial transaction medium.

11. The method of claim 1 further comprising:

selecting the customer from a master list of customers.

12. The method of claim 11 wherein the master list is comprised of contest winners.

13. The method of claim 11 wherein the master list is comprised of customers being billed on a particular day.

14. The method of claim 1 wherein the method is initiated by a clock registering a particular day.

15. The method of claim 1 wherein the method is initiated by the customer making a purchase.

16. The method of claim 1 wherein the method is initiated on a basis consisting of at least one of the following:

monthly, quarterly and yearly.

17. The method of claim 1 where the method is implemented as part of the customer'"'"'s compensation package for working for a company.

18. The method of claim 1 further comprising:

determining the status of a barrier flag; and

if the barrier flag is set to a particular value, automatically exiting the method.

19. The method of claim 1 wherein the financial asset consists of at least one of the following:

a stock, a bond and a treasury bill.

20. The method of claim 1 wherein the particular financial transaction medium consists of at least one of the following:

a credit card;

a co-branded credit card;

a corporate credit card;

a smart card;

an automatic teller machine card;

a customer access terminal card and electronic commerce.

21. The method of claim 1 wherein the price of the financial asset is an average price of the financial asset obtained over a time period.

22. A system for placing a purchasing order for at least one financial asset comprising:

an arithmetic logic unit that determines how many points to award in association with a purchase made using a particular transaction medium wherein the particular transaction medium is associated with a seller of the at least one financial asset;

a database that stores the points;

a first access unit that forwards the points into the database and retrieves the points and out of the database;

a second access unit that obtains a price of the at least one financial asset and forwards a report requesting purchase of the at least one financial asset; and

a controller that controls the arithmetic logic unit, the first access unit and the second access unit so that

     1) the arithmetic logic unit compares the points with the price of the at least one financial asset to determine if the points equal or are greater than the price of the at least one financial asset and

     2) the second access unit forwards the report requesting purchase of the at least one financial asset based on the arithmetic unit'"'"'s comparison.

23. The system of claim 22 wherein the particular financial transaction medium consists of at least one of the following:

a credit card;

a co-branded credit card;

a corporate credit card;

a smart card;

a debit card;

an automatic teller machine card;

a customer access terminal card and electronic commerce.

24. The system of claim 23 wherein the financial asset consists of at least one of the following:

a stock;

a bond and a treasury bill.

25. The system of claim 23 wherein the first and second access units are the same.

26. The system of claim 23 wherein the first and second access units are different.

27. A method for encouraging use of a particular financial transaction medium associated with a seller of at least one financial asset;

comprising;

receiving data indicative of a purchase of a good or service via the particular financial transaction medium wherein the data includes a value of the good or service purchased;

associating the value with a number of points;

summing the points to form a points sum;

automatically redeeming the points sum so as to purchase the at least one financial asset when the points sum is equal to or greater than a cost of the at least one financial asset.

28. The system of claim 27 wherein the particular financial transaction medium consists of at least one of the following:

a credit card;

a co-branded credit card;

a corporate credit card;

a smart card;

a debit card;

an automatic teller machine card;

a customer access terminal card and electronic commerce.

29. The method of claim 27 wherein the at least one asset consists of at least one of the following:

a stock;

a bond and a treasury bill.

30. A method of accumulating stock in a corporation comprising:

receiving data indicative of a purchase of a good or service via a financial transaction medium associated with the corporation, wherein the data includes a value of the good or service purchased;

providing incentive points based on the value;

adding the incentive points to obtain a total of accrued incentive points; and

automatically purchasing at least one stock in the corporation when the total of accrued incentive points is at least equal to a price for purchasing a whole number of stocks.