Method and apparatus for processing credit card transactions

• US 7,729,988 B1
• Filed: 05/21/1999
• Issued: 06/01/2010
• Est. Priority Date: 03/21/1997
• Status: Expired due to Fees

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Walker Digital LLC (Walker Innovation Inc. (f/k/a Patent Properties, Inc.))
• Inventors: Tulley, Stephen C., Van Luchene, Andrew S., Mik, Magdalena, Walker, Jay S., Tedesco, Daniel E.
• Primary Examiner(s): Karmis, Stefanos
• Application Number:
  US09/316,546
• Time in Patent Office: 4,029 Days
• Field of Search: 705 14- 16, 705 41- 44, 705/35, 705/40, 705/39, 705/1, 705/26
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• 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 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0217 involving input on products or services in exchange for incentives or rewards
• CPC Class Codes: G06Q 30/0222 During e-commerce, i.e. online transactions
• CPC Class Codes: G06Q 30/0224 based on user history
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07G 1/0036 Checkout procedures

Abstract

Systems and methods are disclosed whereby credit and debit card transactions are processed at a merchant point-of-sale terminal in a manner that provides customers the opportunity to receive one or more charge enhancement offers which are presented to the customer on a printed record of charge. The charge enhancement offers may indicate either a reduction or an increase in the original purchase total. In a first embodiment, a customer may receive a discount toward a purchase total in exchange for supplying feedback to a merchant in the form of a survey or questionnaire presented on the record of charge. In a second embodiment, the customer is provided the opportunity to receive a discount toward a purchase total by enlisting a third-party service or to purchase a third-party product by completing a section provided on the record of charge. In a third embodiment, the customer may select from at least one additional charge displayed on a record of charge to be added to a transaction total. Such additional charges may represent, for example, a gratuity for a merchant service. In each embodiment, the reduction or increase of original purchase total is provided by a clearinghouse or issuing bank that processes the credit or debit card transaction and confirms the cardholder'"'"'s acceptance of the charge enhancement offer following completion of the transaction at the point-of-sale terminal.

Claims

1. A method for providing an offer during a transaction between a merchant and a customer, comprising:

receiving, via an electronic communications network, a request for authorization of a purchase amount for a transaction between a merchant and a customer, the purchase amount to be paid from a financial account of the customer;

determining, by a server comprising at least one processor, an offer based on the received request;

transmitting an authorization of the purchase amount;

transmitting, by the server, the offer for output to the customer on a record of charge,

wherein the record of charge includes a first signature line associated with and for indicating acceptance of the purchase amount only and a second signature line associated with and for indicating acceptance of the offer output on the record of charge;

determining that the customer has signed the second signature line of the record of charge, thereby receiving an acceptance of the offer by the customer; and

providing a benefit to the customer after receiving the acceptance,

in which the offer defines an obligation for the customer to fulfill in exchange for the benefit,

in which the offer is selected from the group consisting of;

a supplemental product offer for the obligation of an additional payment in addition to the purchase amount to be provided by the customer in exchange for a supplemental product, and

a cross-subsidy offer for providing a discount toward the purchase amount in exchange for the obligation of the customer accepting an offer of a third party other than the customer and the merchant.

2. The method of claim 1, in which the offer is a cross-subsidy offer and in which the benefit comprises the discount toward the purchase amount.

3. A method for providing an offer during a transaction between a merchant and a customer, comprising:

receiving, via an electronic communications network, a request for authorization of a purchase amount for a transaction between a merchant and a customer, the purchase amount to be paid from a financial account of the customer;

determining, by a server comprising at least one processor, an offer based on the received request;

transmitting an authorization of the purchase amount;

transmitting, by the server, the offer for output to the customer on a record of charge,

wherein the record of charge includes a first signature line associated with and for indicating acceptance of the purchase amount only and a second signature line associated with and for indicating acceptance of the offer output on the record of charge; and

determining that the customer signed the second signature line, thereby indicating acceptance of the offer,

in which the offer defines an obligation for the customer to fulfill in exchange for a benefit,

in which the offer is selected from the group consisting of;

a supplemental product offer for the obligation of an additional payment in addition to the purchase amount to be provided by the customer in exchange for a supplemental product, and

a cross-subsidy offer for providing a discount toward the purchase amount in exchange for the obligation of the customer accepting an offer of a third party other than the customer and the merchant.

4. The method of claim 3, further comprising:

adjusting an available credit limit of the financial account based on the indicated acceptance of the offer.

5. The method of claim 4, in which the adjusting step includes:

providing a discount on the purchase amount.

6. The method of claim 4, wherein the adjusting step includes:

providing a reward of alternate currency after the acceptance.

7. The method of claim 3, wherein the step of transmitting the authorization comprises:

determining whether the financial account is in good standing; and

transmitting the authorization for the transaction if the financial account is in good standing.

8. The method of claim 7, wherein the step of determining whether the account is in good standing comprises:

determining whether an available balance of the financial account is at least zero.

9. The method of claim 7, wherein the step of determining whether the account is in good standing comprises:

determining whether an available balance of the financial account is at least zero after acceptance of the offer by the customer.

10. The method of claim 3, wherein the step of transmitting the offer further comprises:

determining whether the financial account is in good standing; and

transmitting the offer for output to the customer on a record of charge if the financial account is in good standing.

11. The method of claim 10, wherein the step of determining whether the account is in good standing comprises:

determining whether an available balance of the financial account is at least zero.

12. The method of claim 10, wherein the step of determining whether the account is in good standing comprises:

determining whether an available balance of the financial account is at least zero after acceptance of the offer by the customer.

13. The method of claim 3, wherein the offer is determined based on a product identifier of a product purchased during the transaction.

14. The method of claim 3, wherein the offer is determined based on a merchant identifier.

15. The method of claim 3, wherein the offer is determined based on the purchase amount.

16. The method of claim 3, in which the cross-subsidy offer comprises an obligation of the customer to accept an offer for a service of the third party, and further comprising:

providing a discount on the purchase amount after the customer accepts the offer for a service.

17. The method of claim 16, wherein the offer comprises a requirement that the customer use the service for a predetermined time.

18. The method of claim 16, wherein the service includes at least one of long distance telephone service, Internet service, banking services, credit card account services, insurance service, securities trading service, satellite television service, and cable television service.

19. The method of claim 3, in which the offer is a cross-subsidy offer, and further comprising:

providing a discount to the customer after the customer accepts the cross-subsidy offer.

20. The method of claim 3, wherein the offer comprises a plurality of offers.

21. The method of claim 20, wherein the customer accepts at least one of the plurality of offers.

22. The method of claim 3, further comprising:

adjusting a balance of a financial account of the merchant if the customer accepts the offer.

23. The method of claim 3, wherein the financial account is a credit card account.

24. The method of claim 23, wherein the offer is determined based on an available balance of the credit card account.

25. The method of claim 23, wherein the offer is based on credit history of the customer.

26. The method of claim 3, wherein the financial account is a debit account.

27. The method of claim 26, wherein the step of transmitting the authorization further comprises:

determining whether an available balance of the debit account is at least equal to the purchase amount; and

if so;

transmitting the authorization.

28. The method of claim 26, wherein the step of transmitting the authorization further comprises:

determining whether an available balance of the debit account is at least equal to the purchase amount plus an amount associated with the offer; and

if so;

transmitting the authorization.

29. The method of claim 3, further comprising:

reconciling a merchant account after receiving the record of charge.

30. The method of claim 3, further comprising:

debiting the financial account by the purchase amount.

31. The method of claim 3, further comprising:

crediting a merchant account after receiving an acceptance by the customer.

32. The method of claim 3, wherein the step of transmitting the offer further comprises:

transmitting a code to a point-of-sale terminal of the merchant, the code corresponding to the offer.

33. A method for processing a transaction between a merchant and a customer, comprising:

receiving an indication of a financial account to be charged for a purchase amount corresponding to a transaction;

transmitting, via an electronic communications network to a server comprising at least one processor, a request for authorization to charge the financial account for the purchase amount;

receiving, from the server in response to the transmitting step, an authorization for the purchase amount and an offer to be presented to the customer;

providing the offer to the customer on a record of charge,

wherein the record of charge contains a first signature line associated with and for indicating acceptance of the purchase amount only and a second signature line associated with and for indicating acceptance of the offer provided on the record of charge; and

determining that the customer signed the second signature line, thereby indicating acceptance of the offer,

in which the offer defines an obligation for the customer to fulfill in exchange for a benefit,

in which the offer is selected from the group consisting of;

a supplemental product offer for the obligation of an additional payment in addition to the purchase amount to be provided by the customer in exchange for a supplemental product, and

a cross-subsidy offer for providing a discount toward the purchase amount in exchange for the obligation of the customer accepting an offer of a third party other than the customer and the merchant.

34. The method of claim 33, further comprising:

receiving an adjustment to a balance of a financial account of the merchant after the customer accepts the offer.