Systems and methods for the processing of financial transactions

• US 7,092,905 B2
• Filed: 10/31/2001
• Issued: 08/15/2006
• Est. Priority Date: 11/21/2000
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Behrenbrinker, Anita M., Feight, Richard D.
• Primary Examiner(s): Bashore, Alain L.
• Application Number:
  US09/984,809
• Publication Number:
  US 20020062279A1
• Time in Patent Office: 1,749 Days
• Field of Search: 705/35, 705/36, 705/37, 705/38, 705/39, 705/40
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/403 Solvency checks
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Systems and methods for processing credit card transactions including an account with a multi-dimensional balance structure, wherein balance segments within the balance structure have individually-definable terms and conditions. A system receives incoming transaction data by way of a conventional transaction system. A transaction processor within the system uses predetermined balance rules to determine an appropriate balance segment within an associated masterfile, which stores data. The multi-dimensional balance structure allows financial institutions to provide customers with special promotions for transactions meeting predetermined requirements, such as transactions with particular merchants, Internet purchases, and automobile-related purchases.

Claims

1. A method for processing a financial transaction to determine which terms and conditions to apply to the financial transaction, comprising:

defining a plurality of balance segments, wherein the plurality of balance segments have a plurality of associated balance rules and terms and conditions, wherein the balance rules govern the allocation of the financial transaction to a particular balance segment;

selecting one or more of the balance segments to be associated with an account number;

receiving incoming transaction data from a transaction network, and analyzing the data with a transaction level processor;

locating a customer account through association with the account number identified in the transaction data, wherein a balance of the customer account is further separated into the plurality of balance segments;

inspecting a status field of each balance segment to determine if the associated balance rule is active or inactive;

determining if all balance segments have been checked;

receiving the applicable balance rule from a balance rule database;

analyzing whether the transaction data complies with limitations of the balance rule;

storing the transaction data in a masterfile under the applicable balance segment and balance rule; and

applying the terms and conditions associated with the balance segment.

2. The method of claim 1, further comprising:

generating a report/bill that details all or a portion of the masterfile.

3. The method of claim 1, wherein the terms and conditions comprise a set of balance variables selected from the group consisting of pricing, fee structure, minimum payment, and discount balance variables.

4. The method of claim 1, wherein the balance segments comprise balance segments selected from the group consisting of total account, purchase, balance transfer, and promotional balance segments.

5. The method of claim 1, wherein the balance segments comprise fields selected from the group consisting of status, balance rule name, balance segment name, terms and conditions name, and expiration date fields.

6. The method of claim 1, wherein the balance rules comprise variables selected from the group consisting of start date, end date, Merchant Category Code (MCC), transaction amount, transaction type, merchant name, and merchant identification number variables.

7. The method of claim 1, wherein the transaction data comprises credit card transaction data.

8. The method of claim 1, wherein the transaction network comprises a credit card transaction network.

9. A system for processing a financial transaction, comprising:

a transaction level processor operable for analyzing an incoming transaction and allocating the transaction into one of a plurality of balance segments disposed within a masterfile associated with a customer account, the transaction level processor comprising;

means for identifying the customer account using an account number;

means for retrieving a plurality of balance rules from a balance rule database;

means for analyzing transaction data using the balance rules associated with the customer account; and

means for allocating all or a portion of the transaction to a particular balance segment associated with the applicable balance rule; and

means for retrieving terms and conditions associated with a particular balance segment from a terms and conditions database;

wherein a balance of the customer account is separated into the plurality of balance segments.

10. The system of claim 9, further comprising:

means for generating a report/bill detailing all or a portion of the masterfile.

11. The system of claim 9, wherein the balance rules comprise variables selected from the group consisting of start date, end date, Merchant Category Code (MCC), transaction amount, transaction type, merchant name, and merchant identification number variables.

12. The system of claim 9, wherein the transaction comprises a credit card transaction.

13. A method for providing a customer account wherein a balance comprises a plurality of balance segments with different terms and conditions, the balance segments organized based on a type of financial transaction, the method comprising:

providing a transaction level processor operable for receiving incoming transaction data;

identifying a customer account associated with the transaction;

accessing a plurality of predetermined balance rules associated with the customer account, wherein each balance rule is associated with a particular balance segment;

comparing the transaction data with each balance rule;

storing the transaction data in the appropriate balance segment in a masterfile upon satisfying the balance rule; and

providing incentives associated with the balance segment to a customer for making the transaction.

14. The method of claim 13, further comprising:

generating a report/bill detailing all or a portion of the masterfile.

15. The method of claim 13, wherein the incentives comprise incentives selected from the group consisting of reduced interest rate, increased credit line, and reduced fee incentives.

16. The method of claim 13, wherein the balance segments comprise balance segments selected from the group consisting of total account, purchase, balance transfer, and promotional balance segments.

17. The method of claim 13, wherein the balance segments comprise fields selected from the group consisting of status, balance rule name, balance segment name, terms and conditions name, and expiration date fields.

18. The method of claim 13, wherein the balance rules comprise variables selected from the group consisting of start date, end date, Merchant Category Code (MCC), transaction amount, transaction type, merchant name, and merchant identification number variables.

19. A method for processing a financial transaction, comprising:

defining a plurality of balance segments, wherein the balance segments comprise a balance on a customer'"'"'s account;

associating a plurality of balance rules with each balance segment, wherein the balance rules govern the allocation of the financial transaction to a particular balance segment;

associating a plurality of terms and conditions with each balance segment;

receiving incoming credit card transaction data from a credit card transaction network, wherein the transaction data includes an account number;

selecting one or more of the balance segments to be associated with the account number;

analyzing whether the transaction data complies with limitations of the balance rules of the applicable balance segment with a transaction level processor;

storing the transaction data in a masterfile under the applicable balance segment; and

providing incentives corresponding to the applicable balance segment and the associated terms and conditions to a customer making the transaction.

20. The method of claim 19, further comprising:

generating a report/bill that details all or a portion of the masterfile.

21. The method of claim 19, wherein the terms and conditions comprise a set of balance variables selected from the group consisting of pricing, fee structure, minimum payment, and discount balance variables.

22. The method of claim 19, wherein the balance segments comprise balance segments selected from the group consisting of total account, purchase, balance transfer, and promotional balance segments.

23. The method of claim 19, wherein the balance rules comprise variables selected from the group consisting of start date, end date, Merchant Category Code (MCC), transaction amount, transaction type, merchant name, and merchant identification number variables.