U.S. patent application number 10/319422 was filed with the patent office on 2003-06-26 for authorizing transactions associated with accounts.
This patent application is currently assigned to First Data Corporation. Invention is credited to Blagg, Lynn Holm.
Application Number | 20030120571 10/319422 |
Document ID | / |
Family ID | 23150430 |
Filed Date | 2003-06-26 |
United States Patent
Application |
20030120571 |
Kind Code |
A1 |
Blagg, Lynn Holm |
June 26, 2003 |
Authorizing transactions associated with accounts
Abstract
The present invention is directed to a method for linking
accounts corresponding to different products together to create a
group so that group processing can be performed at the group level
while independent processing of the accounts is performed at the
account level. The method links the accounts into a group by
linking a financial record for each account to group master data
for the group. The group master data includes information about the
group, including group control settings, aggregate data, and a
group identifier. A group typically includes a key account and one
or more dependent accounts. The relationship between a dependent
account and the group is specified by a dependent strategy. A
dependent strategy specifies group level processing options for the
account. The relationships between the accounts and the group are
flexible to accommodate changes in the status of the group
cardholders. Alternative embodiments will be apparent to those
skilled in the art to which the present invention pertains without
departing from its spirit and scope. Accordingly, the scope of the
present invention is described by the appended claims and is
supported by the foregoing description.
Inventors: |
Blagg, Lynn Holm; (Omaha,
NE) |
Correspondence
Address: |
TOWNSEND AND TOWNSEND AND CREW, LLP
TWO EMBARCADERO CENTER
EIGHTH FLOOR
SAN FRANCISCO
CA
94111-3834
US
|
Assignee: |
First Data Corporation
Englewood
CO
|
Family ID: |
23150430 |
Appl. No.: |
10/319422 |
Filed: |
December 12, 2002 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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10319422 |
Dec 12, 2002 |
|
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09298417 |
Apr 23, 1999 |
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Current U.S.
Class: |
705/35 |
Current CPC
Class: |
G06Q 30/0215 20130101;
G06Q 30/0233 20130101; G06Q 20/04 20130101; G06Q 30/02 20130101;
G06Q 20/367 20130101; G06Q 40/00 20130101; G06Q 20/24 20130101;
G06Q 20/227 20130101; G06Q 40/02 20130101 |
Class at
Publication: |
705/35 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A method for authorizing financial transactions, the method
comprising: receiving a request to perform a financial transaction
in relation to a first account; determining that the first account
is associated with a second account; and authorizing the financial
transaction, wherein authorizing the financial transaction is based
at least in part on a characteristic of the second account.
2. The method of claim 1, wherein authorizing the financial
transaction comprises: determining a combined credit limit of the
first account and the second account, wherein the combined credit
limit exceeds the amount of the request to perform the financial
transaction.
3. The method of claim 1, wherein authorizing the financial
transaction comprises: determining a group available credit line
associated with an account group, wherein both the first account
and the second account are members of the account group, and
wherein the group available credit line exceeds the amount of the
request to perform a financial transaction.
4. The method of claim 1, wherein the first account and the second
account are associated in an account group, the method further
comprising: determining that the second account is a key account in
the account group, wherein authorizing the financial strategy
includes: authorizing the transaction based only on a credit limit
associated with the key account.
5. The method of claim 1, wherein the first account and the second
account are associated in an account group, the method further
comprising: determining that the first account is a key account in
the account group, wherein authorizing the financial strategy
includes: authorizing the transaction based upon a group credit
line, wherein the group credit line is at least partially based on
a first credit line specific to the first account and a second
credit line specific to the second account.
6. The method of claim 1, wherein the first account and the second
account are associated in an account group, the method further
comprising: determining that the first account is a dependent
account in the account group, wherein authorizing the financial
strategy includes: defining a relationship associated with the
first account, wherein it is defined that the first account
participates in group authorizations; authorizing the transaction
based at least in part on a group authorization strategy.
7. The method of claim 6, wherein the group authorization strategy
provides for authorizing the financial transaction based on a
credit line of the account group.
8. The method of claim 7, wherein the credit line is an available
credit line, and wherein the available credit line is calculated in
real time.
9. The method of claim 6, wherein the group authorization strategy
provides for authorizing the financial transaction based on an
available credit limit of the account group.
10. The method of claim 9, wherein the available credit limit is
calculated by subtracting from a credit line of the account group:
the current balance of the first account; the current balance of
the second account; an outstanding authorization of the first
account; and an outstanding authorization of the second
account.
11. The method of claim 1, wherein the first account and the second
account are associated in an account group, the method further
comprising: determining that the first account is a dependent
account in the account group, wherein authorizing the financial
transaction includes: accessing a dependent strategy associated
with the first account, wherein it is determined that the first
account does not participate in group authorizations; authorizing
the transaction based on an authorization strategy specific to the
first account.
12. The method of claim 1, wherein the request to perform the
financial transaction includes a transaction amount.
13. The method of claim 1, wherein the characteristic of the second
account is selected from a group consisting of: an outstanding
balance, an outstanding authorization, a derogatory state, a closed
state, a frozen state, a revoked state, an authorization prohibited
state, a compromised presentation instrument state, and a de-linked
state.
14. A method for authorizing a financial transaction, the method
comprising: receiving a request to perform a financial transaction
in relation to an account; determining that the account is
associated with an account group, wherein the account group
includes a available group credit line; and authorizing the
financial transaction based at least in part on the group credit
line.
15. The method of claim 14, wherein the account is a first account,
wherein a second account is associated with the account group, and
wherein access to the available group credit line is based at least
on a characteristic of the second account.
16. The method of claim 15, wherein the characteristic of the
second account is selected from a group consisting of: an
outstanding balance, an outstanding authorization, a derogatory
state, a closed state, a frozen state, a revoked state, an
authorization prohibited state, a compromised presentation
instrument state, and a de-linked state.
17. The method of claim 16, wherein the derogatory state is an
account delinquency.
18. The method of claim 14, wherein access to the available group
credit line is based at least in part on a characteristic of the
account.
19. The method of claim 14, the method further comprising:
determining if the group credit line is accessible by the
account.
20. The method of claim 19, wherein the account is associated with
a dependent strategy, and wherein the dependent strategy indicates
that the group credit line is accessible by the account.
21. The method of claim 14, wherein access to the available group
credit line is calculated in real-time.
22. The method of claim 14, wherein the available group credit line
indicates credit available to members of the account group.
23. The method of claim 14, wherein the account is a first account,
wherein a second account is associated with the account group,
wherein the available group credit line is an unused portion of an
associated group credit line, and wherein the group credit line is
determined independent of the first account and the second
account.
24. A method for authorizing a financial transaction, the method
comprising: receiving a request to authorize a transaction in
relation to a first account; identifying an account group to which
the first account is associated, wherein a second account is
associated with the account group; and authorizing the transaction,
wherein the authorization is based at least in part on an available
group credit line associated with the group, and wherein the
available group credit line is based at least in part on a
characteristic of the second account.
Description
CROSS-REFERENCES TO RELATED APPLICATIONS
[0001] This U.S. patent application is a continuation of U.S.
Patent application Ser. No. 09/298,417 entitled "Methods for
Processing a Group of Accounts Corresponding to Different Products"
and filed on Apr. 23, 1999. The aforementioned patent application
is commonly assigned with the present application to First Data
Corporation.
BACKGROUND OF THE INVENTION
[0002] This invention relates in general to a method for processing
accounts corresponding to different products that are members of a
group, and more particularly to a method for processing a group of
accounts that supports group level processing at the group level
while retaining independent processing of the accounts at the
account level.
[0003] Many individuals hold more than one credit card.
Additionally, an individual may hold the liable relationship for
more than one credit card held by another individual or
individuals. There are several types of credit card products
available. Some cards are private label cards that can only be used
in a particular store or business, such as a department store card
or a specialty chain store card. Other cards are general use cards
that can be used in a variety of stores or businesses, such as a
VISA.TM., MASTERCARD.TM., AMERICAN EXPRESS.TM., DINER'S CLUB.TM. or
DISCOVER.TM. card.
[0004] Cards held by an individual often include a variety of these
different products and versions of these products. Different
versions of a product are offered to address different market
interests and needs. For example, a VISA.TM. card could be a
classic card, a gold card, or a co-branded card. Issuers often
encourage their existing cardholders to carry more than one of
their products to increase the share of that consumer's activity
for their products.
[0005] A consumer can be encouraged to hold multiple products
and/or cards for any of a number of reasons. The number and type of
cards held by an individual are influenced by many factors,
including interest rate, reward program and merchant acceptance.
The activity on the various accounts held by an individual may vary
due to the type of expenditure or the person making the
purchase.
[0006] Different cards can be used by a single consumer to manage
different types of expenditures. For example, one card can be used
for everyday household expenditures, such as groceries and
gasoline, another card can be used for major household
expenditures, such as major appliances or furniture, and yet
another card can be used for vacation expenditures.
[0007] Many credit card products offer a reward program to provide
an incentive for a cardholder to use the card associated with the
program. An individual often carries different cards to participate
in a variety of different reward programs. A typical reward program
awards points based upon the amount and/or type of purchases made
with the card. Depending on the purchase, an individual may select
the card with the greatest reward opportunity associated with that
particular purchase.
[0008] In addition to carrying multiple cards as an individual, an
individual can share ownership of credit products carried by other
members of their family. For example, in a family including a
mother, a father, a daughter and a son, each parent can hold a
number of cards. In addition to the parents, the children can also
hold cards. Some of the cards can be held individually and some can
be held jointly. To help manage the family finances, it would be
beneficial if information about all of the cards held by members of
the family could be collected in a single statement.
[0009] If the members of a family hold distinct accounts, the
reward points earned by the family members are generally divided
among different reward programs and/or different accounts. An
issuer may find a marketing advantage if the accounts could be
pooled together, making it easier for the members of the family to
reach a point goal. Thus, there is a need for pooling reward points
earned by different individuals using different accounts.
[0010] Depending upon the age and status of the children, the
mother and/or the father is liable for any charges incurred by the
son or daughter. Typically, if a parent wants to provide a child
with a credit card, the parent has three options: 1) provide the
child with an additional card on an existing account, 2) provide
the child with a card on an account where the child is the primary
user and the parent is the responsible party, or 3) provide the
child with a secured card by providing collateral for the
account.
[0011] Each of the current options has disadvantages. A
disadvantage of providing the child with an additional card on an
existing account is that the child has access to the entire credit
line of the account. A disadvantage of providing the child with a
card on an account where the child is the primary user and the
parent is the responsible party is that the parent's access to
credit may be reduced. If the parent also has another account, then
the credit line given to the child is not available to the parent
even if the child is not currently using it because the accounts
are unrelated. A disadvantage of providing the child with a secured
card by providing collateral for the account is that the collateral
is committed to secure the account regardless of the amount of
activity on the account. A secured account also may not include a
process to report activity to the parent providing the collateral.
Thus, there is a need for additional options for an individual to
provide a child with a credit card. In particular, there is a need
for limiting a child's access to a shared credit line and for
considering multiple accounts when calculating an individual's
available credit.
[0012] As a result of these market realities, issuers are faced
with a challenge to manage an individual's whole relationship with
them while offering the flexibility consumers desire in their
product options. Issuers want a complete answer to manage an
individual as a relationship and to maintain control and marketing
data at the lowest possible level. The lowest level being a single
person using a single product version. Currently, several solutions
exist which answer varying components of the problem. Additional
names, commercial card functions, data stores, plastic/account
separation, and other off line processing all provide only partial
solutions.
[0013] Some credit card issuers facilitate group processing by
maintaining additional names on an account. This basic
functionality identifies multiple cardholders as authorized users
on the same financial record. In addition to the issues of shared
credit lines discussed above, this functionality requires that all
cardholders share the same credit product and product version. This
option also provides almost no functionality at the cardholder
level. All activity is maintained and managed at the account level
which merges the individual cardholders together. This limits the
issuer's ability to complete marketing analysis on individual group
members.
[0014] As an extension of the additional names functionality, some
processing systems allow the cards which correspond to the
additional names to have distinct card numbers. Financial
calculations on these accounts are still done at the account level,
but the individual transaction activity can be tracked back to a
particular cardholder. This functionality does not solve the shared
credit issues or the ability to make other processing decisions at
the card level.
[0015] Some credit card issuers provide commercial card accounts. A
commercial card account is a single financial account that is
associated with multiple cards. All of the, cards are the same type
and version of a product, e.g. a standard VISA.TM. card. Each of
the cards can have a different card number. The different card
numbers can be used to list the transactions by cardholder on the
statement. A single group statement is sent to the financially
responsible party, usually the company.
[0016] In most applications of commercial card functionality, the
sub accounts are actually contained on a distinct financial record,
but the record is only a shell of information. The true financial
activity is transferred to the group or lead account. This
functionality does not accommodate different types or versions of
credit card products. Although several authorization options exist,
the restrictions are based on monthly spending limits rather than a
true available credit. This is because outstanding balances are not
monitored at the individual card level. Commercial cards also do
not accommodate different types of cardholder relationships to the
group. An employee card is either paid for by the employee or by
the company. A family or household scenario requires a greater
variation of communication and liability options. A family scenario
also requires that an account can become independent of the group
or other existing accounts can be added to the group.
[0017] If a child can qualify for a credit card individually, then
the child can be the responsible party or a jointly liable party
for the account. For example, a child can qualify for a credit card
individually if the child is a college or university student. Even
if a child can qualify for a credit card individually, an
individual, such as a parent, may want to monitor the activity of
the account to help the child manage the child's credit. Thus,
there is a need for providing courtesy copies of account activity
to an individual, such as a parent.
[0018] An individual's credit needs change over time because the
financial ability of the individual, as well as the financial
maturity of the individual change. For example, at one point, a
child may not be able to qualify individually for a credit card and
may need an individual, such as a parent to be the financially
responsible party for the card. At another point, the child may be
able to qualify individually for a credit card, but may benefit
from some assistance or supervision from a parent. At yet another
point, the child may be able to qualify individually for a credit
card and to manage the account without assistance. Often times an
individual uses different credit card accounts to meet the
individual's different needs. However, it would be simpler if a
single credit card account could adapt to meet the different credit
needs of an individual by accommodating different types of
cardholder relationships.
[0019] Some issuers manage distinct accounts at the lowest level
then depend on outside data stores to integrate group data into the
management of the accounts. Outside data stores are data query
systems which are maintained outside the core processing system.
They are often tied into operations centers for informational look
up processing. The data stores are maintained by loading data from
the core processing system. Issuers populate data stores and load
"keys" onto account records to link accounts. These links allow
customer service personnel and collectors to recognize individuals
who hold multiple accounts. Data related to the various accounts
can be displayed for use in manual service activity. This type of
functionality is not integrated into automatic processing
functions. In many cases, the operator would have to take further
action to define the relationship the linked accounts have to one
another. The card may or may not be held by the same individual or
the accounts may not have the same jointly liable relationship to a
second person. Thus, there is a need to integrate group processing
into the automatic functions of a processing system to avoid the
expense and issues of manual intervention.
[0020] Some issuers use these same off line data stores to process
scoring engines. The scoring engines allow numeric values to be
assigned to accounts which could allow the existence of other
accounts held by the same individual to impact the processing of
the first account. This process can be automatic but it assumes a
generally static relationship. Typically, this type of
functionality does not provide an easy audit trail to find the
accounts which were included in the scoring activity. In addition,
the processing activity remains at the account level rather than
the group level. Credit lines, statements, and correspondence are
not managed at the group level.
[0021] Some issuers attempt to manage some of these issues by
distinguishing distinct balances on a single financial record. This
processing is referred to as transaction processing. Transaction
processing allows a sub record within the financial processing of
an account. One balance can apply to one set of pricing controls,
but not for distinct authorizations, ownership, or delinquency
management. The payoff of these balances can be controlled, but the
delinquency is the delinquency of the account as a whole. This
functionality also does not allow management of distinct
owners.
[0022] Some issuers address these challenges with off line or
manual processes. For example, a jointly held account for a college
age child may carry the child's mailing address and both the child
and the parent's name. However, if the account becomes delinquent,
off line files are used to find the parent's address and manual
collection efforts are made toward the parent. In some cases, this
might be the first notice to the parent of the delinquent state of
the account.
[0023] Accordingly, there is a need in the art for a method for
linking one or more accounts together to form a group to support
integrated group level processing while maintaining individual
processing to the accounts. Preferably, the accounts of the group
can span multiple products and the relationship of each account to
the group is flexible and independent of the other accounts in the
group.
BRIEF SUMMARY OF THE INVENTION
[0024] The present invention meets the needs described above by
providing a method for linking accounts corresponding to different
products together to create a group so that group processing can be
performed at the group level while independent processing of the
accounts is performed at the account level. A group includes a
number of accounts that correspond to a single issuer. The accounts
can span multiple products so that an account corresponding to a
VISA.TM. product can be in the same group as an account
corresponding to a MASTERCARD.TM. product. Each group has a primary
owner. A primary owner is the intended recipient of group
correspondence and the primarily liable party of any group
liability. Generally, the primary owner corresponds to a cardholder
for a key account. However, a key account is not required. All
non-key accounts in the group are dependent accounts. A dependent
account may or may not be included in the group liability.
[0025] Linking the accounts into a group is accomplished by linking
the financial record that corresponds to each account to the group
master data for the group. A key financial record corresponds to
the primary owner and the key account (if any). A dependent
financial record corresponds to each of the dependent accounts.
Dependent accounts include all non key group members regardless of
the relationship the account has to the group. The group master
data includes information about the group, including control
settings, aggregate data, and a group identifier. The membership to
the group is maintained within the group data and on each member
financial record.
[0026] The relationship between the financial record and the group
defines the processing impacts of membership to the group on the
individual financial record. The relationship of the key account to
the group is that of primary owner. A majority of the processing
impacts of that relationship are typically predefined by the card
processing and service provider. The relationship of a dependent
account to the group is defined by a set of processing options.
These processing options are defined as a dependent strategy. A
dependent strategy specifies the impact of group level processing
on the processing of the dependent account. Typically, the
dependent strategy includes parameters that define how and when
group membership impacts transaction authorizations, group payment
applications, as well as whether payment for the account balance is
due from the primary owner or from the dependent cardholder. In
addition, the dependent strategy includes options for statement
generation, cardholder communications, and reward pooling.
[0027] The relationship between each account in the group is
flexible and can be modified. A group can contain some dependent
accounts which process as completely subordinate accounts with no
direct communication to the dependent cardholder and other
dependent accounts which process as secondary or joint owners of
the group with full disclosure of all group activity. Each defined
dependent strategy can be used to define the relationship of any
number of accounts to any number of groups. Also, each group can
include dependent accounts with relationships defined by any number
of different strategies. Additionally, an existing relationship
between a given dependent account and a group can be changed from
one strategy to another strategy. The ability to modify the
dependent strategy allows the account processing to change as the
cardholder's situation changes. Changing the dependent strategy of
one of the dependent accounts does not impact the dependent
strategies of the other dependent accounts.
[0028] The relationship of the primary owner can also be changed. A
key account can be modified to be a dependent account or removed
completely from the group. This action is allowed as long as a new
primary owner or key account is identified (if one is required). A
dependent account can be "matured" into a key account. To mature a
dependent account into a key account, the relationship parameter
for the dependent account is changed from dependent to key and the
relationship parameter for the current key account is changed to
dependent.
[0029] There are a number of ways that a group can be created. One
way to create a group is to create a number of new accounts and
link the new accounts together. Another way of creating a group is
to link a number of existing accounts together. The group data is
automatically generated when the first member of the group is
identified. Once a group is created, additional accounts can be
added to the group or existing accounts can be removed from the
group.
[0030] A dependent account can be added to the group or removed
from the group without affecting the remaining accounts in the
group. The ability to add dependent accounts and delete dependent
accounts allows the group to change to accommodate changes in the
relationships between the primary owner and the dependent
cardholders. For example, the dependent cardholder may be a minor
child of the parent who is the primary owner. Initially, all
disclosures and liability is held by the parent and therefore
communications are sent to the parent. Later the child may become a
college student with joint liability for the account and
responsibility for the monthly payments. At this time the parent is
receiving courtesy disclosures. The processing for the child's
account can change with the relationship by changing the dependent
strategy.
[0031] To add a dependent account to a group, the dependent
financial record for the dependent account is linked to the group
master data. The link is stored in the group master data and on the
dependent financial record. These two records are compared daily to
ensure that no out of sync condition has occurred. The history
which accrued on an account prior to joining a group will remain
intact after it is linked into the group.
[0032] To remove a dependent account from the group, the dependent
financial record for the dependent account is delinked from the
group master data. The history which accrued during the period that
an account was a member of the group also remains intact when the
account is delinked. Removing a dependent account from a group may
correspond to a change in family status. If an account is removed
from a group, it can be moved to an existing group, used to create
a new group, or can be designated as an independent account that is
not a member of a group.
[0033] If all the accounts associated with a group are removed from
the group, then the group continues to exist for some pre defined
period of time even though the group does not have any members. The
group continues to exist so that audit history for the group can be
maintained for the pre defined period of time.
[0034] Once a group is created it can be used to perform group
processing. Group processing typically includes authorizing
transactions, applying group payments, creating group statements,
controlling cardholder communications, and administering reward
programs for the accounts in the group.
[0035] Group authorizations allow issuers to set a group credit
line and manage the group available credit across all participating
group members. All authorization controls and limits are calculated
using the group credit line and available credit. Monetary activity
from any participating group member may increase or decrease the
group available credit. The key account always participates in
authorizations at the group level. The dependent accounts in the
group participate in the group authorizations as an option. In one
aspect of the invention, the dependent strategy includes three
authorization options for a dependent account. One authorization
option considers only the credit line and available credit of the
group, a second option considers only the credit line and available
credit of the dependent account, and a third option considers the
credit line and available credit of both the group and the
dependent account. This function differs from the prior art in that
the individual available credit is calculated against maintained
balances by maintaining monetary history on the individual account.
In the prior art applications, the individual member does not have
a maintained balance over time. Monetary balances are transferred
to an owner account and the individual line is refreshed. In this
type of application, the individual is authorizing against a
monthly spending limit rather than a true credit line.
[0036] Group balances including minimum payments due ("MPD") and
outstanding balances are calculated and stored in the group master
data. These amounts are then reported to the primary owner. The key
account is always included in these calculations. The dependent
accounts in a group are included in the calculation as an option.
In one aspect of the invention, the dependent strategy defines the
responsible party for the payments on that account. One option
requires the payment of the dependent account balance to be due
from the primary owner, and a second option requires the payment of
the dependent account balance to be due from the dependent
cardholder.
[0037] Group processing includes the ability to process payments or
credits received at the group level. Once recognized as a group
payment, the credit is allocated across all participating accounts
in the group. An account participates in the allocation of credit
depending on how it was included in the group MPD and outstanding
balance during the last statement processing and the applicable
group control settings. Alternatively, the payment may be allocated
manually across the accounts in the group based on issuer policy or
cardholder direction. In one aspect of the invention, the
allocation of a group payment is determined by a combination of the
group payment amount, the stored group balances, the stored
individual balances which correspond to the group balances, and
group control settings which determine which balances to use. In
this aspect, percentages are used to determine the value of each
account's allocation. Payment is allocated to accounts based on
that account's share of each type of group balance in the order
that the balances are defined by the group controls.
[0038] A group statement is created for the group and is sent to
the primary owner. The group statement includes information about
the activity of the key account (if any) and the activity of the
dependent accounts of the group. The amount of information that
appears on the group statement about a dependent account is
controlled by the dependent strategy. Depending upon the dependent
strategy, the group statement includes details of the activity of
the dependent account or a summary of the activity of the dependent
account. If the dependent strategy specifies that payment for the
dependent account is due from the group, then the strategy also
specifies whether a courtesy statement is sent to the dependent
cardholder.
[0039] Group processing can impact the intended recipient and
content of other cardholder communications. In addition to
statements, several communications are typically generated for an
account. If the account generating the activity is a dependent
account, the correspondence can be redirected to the primary owner
of the group. In one aspect of the invention, a series of options
on the dependent strategy define the addressee or the intended
recipient of an original communication, such as a letter, a notice
or a new plastic. The intended recipient can be either the primary
owner or the dependent cardholder. In the case of letters and
notices, the options also includes the ability to generate a
courtesy copy of the commnunication for the party who did not
receive the original. If multiple letters are redirected to the
primary owner, those letters can be merged into a single letter
including the variable content from the various group member
accounts.
[0040] Group processing also includes options for pooling and
redeeming reward points. A parameter included in the definition of
a particular reward program indicates whether the program supports
reward point pooling. If the program supports pooling, then any
reward points for that program which are earned by the key account
(if any) are pooled into a group pool. The primary owner is
permitted to redeem group reward points. The dependent strategy
specifies whether reward points earned by a dependent account are
pooled or are maintained at the account level. The dependent
strategy also specifies whether the dependent account cardholder
can redeem group reward points. The group pool is independent of
any member account. Accounts can be delinked from the group without
impacting the group accumulation.
[0041] Group non monetary transactions support group level
processing by updating multiple accounts within a group. A
non-monetary transaction is a transaction that affects information
for one or more accounts within the group, but does not affect the
monetary information for the account. For example, a change in
billing address is a non monetary transaction. A group non monetary
transaction can be used to update all of the accounts in the group
while only requiring that the updated information be entered once.
To update the accounts in a group with updated group information,
the accounts within the group are identified by the processing
system using the group data. Once the financial records are
identified, the operator is given an option to update all or only
selected records, and then the financial records are updated with
the updated information.
[0042] These and other objects, features, and advantages of the
present invention may be more clearly understood and appreciated
from a review of the following detailed description and by
reference to the appended drawings and claims.
BRIEF DESCRIPTION OF THE DRAWINGS
[0043] FIG. 1 is a block diagram illustrating an exemplary
relationship between a card processing and service provider,
issuers and cardholders.
[0044] FIG. 2 is a block diagram illustrating an exemplary
relationship between a card processing and service provider, an
issuer and the cardholders within a group in accordance with an
embodiment of the present invention.
[0045] FIG. 3 is a block diagram illustrating the relationship
between a card processing and service provider, issuers and the
cardholders within a group in accordance with an embodiment of the
present invention.
[0046] FIG. 4A is a block diagram illustrating the files included
in the group master data in accordance with an embodiment of the
present invention.
[0047] FIG. 4B is a block diagram illustrating group master data in
accordance with an embodiment of the present invention.
[0048] FIG. 5 is a flow diagram illustrating the steps for creating
a group using new accounts in accordance with an embodiment of the
present invention.
[0049] FIG. 6 is a flow diagram illustrating the steps for creating
a group using existing accounts in accordance with an embodiment of
the present invention.
[0050] FIG. 7A is a flow diagram illustrating the steps for adding
a dependent account to a group in accordance with an embodiment of
the present invention.
[0051] FIG. 7B is a flow diagram illustrating the steps for
authorizing a transaction in accordance with an embodiment of the
present invention.
[0052] FIGS. 8A and 8B are flow diagrams illustrating the steps for
applying a payment in accordance with an embodiment of the present
invention.
[0053] FIG. 9 is a flow diagram illustrating the steps for
identifying intended recipients of statement data and providing
statement data in accordance with an embodiment of the present
invention.
[0054] FIG. 10 is a flow diagram illustrating the steps for
redeeming group reward points in accordance with an embodiment of
the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0055] The present invention is directed to a method for linking
accounts corresponding to different products together to create a
group so that group processing can be performed at the group level
while independent processing of the accounts is performed at the
account level. The accounts in a group can span multiple products.
A typical group includes a key account and one or more dependent
accounts. Each group has a primary owner. Generally the primary
owner corresponds to a cardholder for the key account.
[0056] Briefly described, the method links the accounts into a
group by linking a financial record for each account to group
master data for the group. The group master data includes
information about the group and the group members, including group
control settings, group aggregate data, and a group identifier. The
financial records include information about the corresponding
account, a relationship parameter specifying whether the
corresponding account is a key account or a dependent account, and
if the financial record corresponds to a dependent account, a
dependent strategy identifier.
[0057] The relationship between a dependent account and the group
is specified by a dependent strategy. A dependent strategy
specifies group processing options for the dependent account. The
relationship between a dependent account and the group can be
changed by selecting a new dependent strategy.
[0058] The detailed description which follows is represented
largely in terms of processes and symbolic representations of
operations by a conventional computer. The processes and operations
performed by the computer, in both a stand alone environment and a
distributed computing environment, include the manipulation of
signals by a processor and the maintenance of these signals within
a data set, such as a database and a data structure. Each of these
data sets and data structures are resident in one or more memory
storage devices. Basically, a data set is a collection of related
information in separate elements that are manipulated as a unit. A
data structure is a structured organizational scheme that
encapsulates data in order to support data interpretation and data
operations. The data structure imposes a physical organization upon
the collection of data stored within a memory storage device and
represents specific electrical or magnetic elements.
[0059] For the purposes of this discussion, a method or process is
generally conceived to be a sequence of computer executed steps
leading to a desired result. These steps generally require physical
manipulations of physical quantities. In addition, it should be
understood that the methods and systems described herein are not
related or limited to any particular computer (standalone or
distributed) or apparatus. Furthermore, the methods and systems are
not related or limited to any particular communication
architecture. Thus, one skilled in the art will be able to
implement the systems and methods of the present invention with
general purpose machines or specially customized programmable
devices according to the teachings described herein.
[0060] Referring now to the drawings, in which like numerals
represent like elements throughout the several figures, aspects of
the present invention and the preferred operating environment are
described.
[0061] Card Processing and Service Provider, Issuers, and
Cardholders
[0062] The processing of a credit card transaction typically
involves the cardholder, a merchant, a merchant acquirer, the card
issuer, and a card processing and service provider. FIG. 1
illustrates an exemplary relationship between a card processing and
service provider 100, a number of issuers 102a, 102b . . . 102c,
and a number of cardholders 120. The card processing and service
provider 100 supports the issuers by authorizing and processing
monetary transactions, as well as providing support for creating
new accounts, modifying accounts, generating cardholder statements,
applying payments to accounts, controlling communications to
cardholders and building reward programs. An issuer, such as,
issuer 102b, is typically a bank or other financial institution
that issues one or more credit card products. The issuer manages
transaction processing at the account level. An issuer typically
manages a number of accounts using a hierarchy, such as the
Product/System, Principal, and Agent hierarchy shown in FIG. 1. The
cardholders 120 are typically individuals holding a credit card or
charge card, such as a VISA.TM., MASTERCARD.TM., or private label
card. In addition to the elements shown in FIG. 1, additional
elements (not shown) may also be included. For example, additional
issuers, Products/Systems, Principals, and Agents may exist.
[0063] An issuer can issue different types and versions of credit
card products. For example, issuer 102b could offer a VISA.TM.
product and a MASTERCARD.TM. product. Each product could be offered
in standard, gold and platinum versions. The Product/System blocks
shown in FIG. 1 correspond to different products. If issuer 102b
issues a VISA.TM. product and a MASTERCARD product, then
Product/System 104a could correspond to the VISA.TM. product and
Product/System 104b could correspond to the MASTERCARD.TM. product.
An issuer typically uses either a BIN (bank identification number)
or an IIN (issuer identification number) to identify its different
credit card products.
[0064] Issuers typically use additional levels of reporting
structures below the Product/System level to manage large
portfolios. FIG. 1 illustrates that below the Product/System level
is the Principal level and below the Principal level is the Agent
level. The divisions between the Principal level and the Agent
level are typically defined by the issuer. Some issuers use the
Principal level and the Agent level to make geographical divisions.
For example, Principal block 106a could correspond to a geographic
region, such as the southeast, and Agent block 110a could
correspond to a state within that region. The cardholders 120 are
located below the Agent level. As shown in FIG. 1, a number of
cardholders can be associated with a single Agent. FIG. 1
illustrates an example of the hierarchical relationships that exist
between an issuer and a cardholder. As will be apparent to those
skilled in the art, alternative hierarchies are also possible.
[0065] An individual can hold a number of different cards
corresponding to a number of different accounts. Although the same
cardholder is associated with each of the accounts, each account is
processed independently by the issuer. If several cardholders are
in the same family, then each cardholder may hold several cards. In
the case of a family, the cardholders may be related and the
payments may be made from family funds, but each account is still
processed independently. For example, Table 1 illustrates the
credit cards held by a typical family.
1TABLE 1 STANDARD STANDARD GOLD Cardholder VISA .TM. TM MC MC
PRIVATE LABEL MOTHER Account 1 Account 2 FATHER Account 3 Account 4
SON Account 5 DAUGHTER Account 6 Account 7 GRANDFATHER Account
8
[0066] Each of the accounts shown in Table 1 is an independent
account from the issuer's perspective. The standard MASTERCARD.TM.
account associated with the daughter (Account 6) is independent of
the standard MASTERCARD.TM. account associated with the grandfather
(Account 8) and the gold MASTERCARD.TM. account associated with the
mother (Account 2) is independent of the gold MASTERCARD.TM.
account associated with the father (Account 3). The processing
options used by the issuer to process the accounts shown in Table 1
can differ by product.
[0067] The relationships between the different accounts shown in
Table 1, the issuer, and the card processing and service provider
are illustrated by FIG. 2. The card processing and service provider
200 supports the issuer 202. The issuer 202 issues a variety of
credit card products, including a standard VISA.TM. product 204a, a
standard MASTERCARD.TM. product 204b, a gold MASTERCARD.TM. product
204c, and a private label product 204d. Account 1 and Account 5 are
shown under the standard VISA.TM. product 204a, Account 6 and
Account 8 are shown under the standard MASTERCARD.TM. product 204b,
Account 2 and Account 3 are shown under the gold MASTERCARD.TM.
product 204c, and Account 4 and Account 7 are shown under the
private label product 204d.
[0068] Groups and Group Relationships
[0069] In accordance with an embodiment of the present invention,
the accounts shown in Table 1 and FIG. 2 can be linked together to
create a group. A group can include a number of accounts that
correspond to a single issuer. By linking accounts into a group,
group processing can be performed on the accounts that are members
of the group while maintaining independent processing of each of
the accounts. Each group has a primary owner. Generally the primary
owner corresponds to a cardholder for a key account. For example,
the standard VISA account held by the mother could be designated as
the key account for the group shown in Table 1 and FIG. 2. The
remaining accounts in the group are referred to as dependent
accounts. The relationship between a dependent account and the
group is independent of the relationship between the remaining
dependent accounts and the group. Typically, the issuer defines the
possible relationships between a dependent account and the
group.
[0070] FIG. 2 shows one possible organization for a group. Other
organizations are also possible. As shown in FIG. 2, the accounts
in a group can be associated with different products. There are no
restrictions on the placement of the accounts in a group at the
Product/System, Principal or Agent levels. The accounts in a group
can be split between different Products/Systems, Principals and
Agents. The key account and a dependent account can be associated
with the same Agent. Multiple dependent accounts can also be
associated with the same Agent. The accounts associated with an
Agent are not required to be in the same group (or any group at
all).
[0071] FIG. 3 shows an exemplary group where the key account and
Dependent Account 1 are associated with the same Agent 308a.
Dependent Account 2 is associated with a different Agent 308b, but
is the same type of product 304a as the key account and Dependent
Account 1. Dependent Account 3 is associated with a different
Principal 306b than the key account, Dependent Account 1, and
Dependent Account 2, but is the same type of product 304a.
Dependent Account 4 is associated with a different Agent 308d than
Dependent Account 3, but is associated with the same Principal
306b. Dependent Account 5 is a different product 304b than any of
the other accounts in the group. Although FIG. 3 only shows a
single group, additional groups or individual accounts can exist
under the issuer 302b. Furthermore, additional groups can exist
under the other issuers 302a, 302c.
[0072] Linking the accounts into a group is accomplished by linking
a financial record that corresponds to each account to group master
data for the group. FIG. 4A illustrates the linking of the accounts
shown in Table 1 into a group. The Group Master Data 400 includes
information about the group, including group control settings,
group aggregate data, and a group identifier. The Group Master Data
400 is discussed in more detail below in connection with FIG. 4B.
The Key Financial Record 402 corresponds to the key or primary
owner. The Key Financial Record 402 can also correspond to a key
account held by the primary owner. In this example, the Key
Financial Record 402 corresponds to the standard VISA account held
by the mother. The relationship 420 between the Key Financial
Record 402 and the Group Master Data 400 is a predefined
relationship. Typically, the relationship is defined in part by the
card processing and service provider and in part by the issuer.
[0073] In addition to the Key Financial Record, the group also
includes Dependent Financial Records 404, 406, 408, 410, 412, 414,
and 416 that correspond to the dependent accounts. Typically, a
dependent account is associated with each dependent financial
record. For example, Account 2 is associated with Dependent
Financial Record 1 404. Each account is also associated with one or
more cardholders, e.g. the mother is the cardholder associated with
Account 2.
[0074] The dependent accounts in the group can cross product lines.
In this example, Account 2 and Account 3 are MASTERCARD products,
Account 4 and Account 7 are private label products, Account 5 is a
VISA product, and Account 6 and Account 8 are MASTERCARD.TM.
products. The relationship 422 between Dependent Financial Record 1
404 and the Group Master Data 400 is independent of the
relationship between the remaining Dependent Financial Records and
the Group Master Data.
[0075] The dependent accounts can also have different types of
ownership. For example, the primary owner and a dependent
cardholder can be jointly responsible for a dependent account, the
primary owner can be responsible for a dependent account where a
dependent cardholder is an authorized user, or a dependent
cardholder can be solely responsible for a dependent account. In
addition, a dependent cardholder can be jointly liable with the
primary owner for the group liability. If a dependent cardholder is
jointly liable with the primary owner for the group, then the
dependent account is a jointly liable dependent account.
[0076] Group Master Data
[0077] The Group Master Data 400 is further illustrated in FIG. 4B.
FIG. 4B illustrates a number of files 402-428. Each of the files
includes records that contain information about the group and the
accounts that are members of the group. The Group Data file 404
includes information about the group, such as a group identifier, a
group cycle code, a group credit line, group available credit, and
a group collector code. The group identifier identifies the group.
Each of the records associated with the group includes the group
identifier.
[0078] A group cycle code indicates the cycle code for the group.
If the group includes a key account, then the cycle code for the
key account typically is used as the group cycle code. If the group
does not include a key account, then the group cycle code can be a
default cycle code or can be based upon the cycle code of one of
the dependent accounts in the group. The group credit line
specifies the credit available for the accounts in the group that
authorize against the group credit line. The group available credit
specifies the current credit available for the accounts in the
group that authorize against the group credit line. The group
collector code may be set once a collector is assigned to one of
the accounts in the group. A collector may be assigned because the
account is delinquent. If another account in the group becomes
delinquent, then the group collector code is checked and the same
collector is assigned to that account if a group collection option
is used.
[0079] The Primary Owner file 402 includes information about the
primary owner of the group. The primary owner is the individual
that is liable for the group. If more than one individual is liable
for the group, then those individuals are jointly liable for the
group and information about the individuals in stored in the
Primary Owner file 402. For example, a primary owner and a
dependent cardholder could be jointly liable for the group. For
simplicity, the term "primary owner" is used herein to include a
single primary owner or joint primary owners. Every group has a
primary owner. If the group includes a key account, then the key
cardholder is the primary owner.
[0080] The Group Member file 408 includes a record for each of the
accounts that is (or was) a member of the group. Each record
includes an account number, an indication as to whether the account
is a key account or a dependent account, and group membership
information. A record is maintained for an account in the Group
Member file 408 even if the account is delinked from the group.
Each record includes group membership information which indicates
when the account was linked to the group and if the account is no
longer a member of the group, when the account was delinked from
the group. The Address file 406 includes a record for each of the
accounts that is (or was) a member of the group. Each record
includes the mailing address of the cardholder associated with the
account.
[0081] The Member Relationship file 410 includes a record for each
of the accounts that is (or was) a member of the group. A member
relationship record contains information about the strategy
associated with an account. If the strategy associated with the
account has changed, then the member relationship record contains
information about the previous strategy or strategies, as well as
the current strategy. The member relationship record also contains
information about the effective dates of each strategy.
[0082] The Strategy Definition file 412 includes a record for each
of the defined strategies. The strategy definition records include
the parameters and the parameter values that define the strategies
referred to in the member relationship records. If the definition
of a strategy has changed, then the strategy definition record for
that strategy also includes the parameter and the parameter values
that defined the previous version or versions of the strategy, as
well as the effective dates of each strategy definition.
[0083] The Member Statement file 411 includes records for each
account that is (or was) a member of the group. Each record
includes a number of fields that store statement data (monetary
information) for the associated account. In addition, each record
includes a flag that indicates whether the associated account
cycles with the group (i.e. has the same cycle code as the group)
or cycles independently. The information stored in the Member
Statement file 411 is used to generate the group statement,
dependent cardholder statement, and/or a courtesy statement.
[0084] The Group Statement file 418 includes records that contain
group monetary and group non monetary information. The group
monetary information includes the group balances, as well as the
group credit line and group available credit for a particular
statement. The group non monetary information includes the group
payment due date. Typically, the group payment due date is the
earliest due date of all the accounts of the group that are paid by
the primary owner. The information stored in the Group Statement
file 418 is used to generate the group statement.
[0085] The information in the Member Statement file 411 and the
Group Statement file 418 is used to determine the initial break up
of a group payment. The information is also used to support the on
line display of statement information to an operator.
[0086] The Group Rewards file 414 includes a record for each of the
reward programs for the group. Each record includes information
about the reward program, such as a reward program identifier and
the amount of group points accumulated in that reward program.
[0087] The Custom Calculation Definition file 416 and the Custom
Calculation Values file 420 support customized group calculations
that appear in a field on the group statement. Each custom
calculation definition record includes a formula for a customized
group calculation. Typically, a formula specifies that a customized
group calculation is calculated using monetary elements from the
accounts in the group. The value that is calculated using the
formula is stored in a custom calculation values record.
[0088] The Group Payment file 422 includes a record for each group
payment received. Each record includes the amount of the group
payment and the date the group payment was received. The Payment
Allocations file 426 includes a record for each group payment
received. Each record indicates how the group payment was allocated
among the accounts in the group. The Group Reversal file 424
includes a record for each group payment that has been reversed. If
a group payment is reversed, then the reversal is made by
referencing the Payment Allocation file 426 to determine how the
payment was originally allocated.
[0089] The Rejects file 428 includes records of rejections detected
during processing other than group processing. A record in the
Rejects file 428 includes a rejection report that provides details
of the rejection. As will be apparent to those skilled in the art,
the files shown in FIG. 4B are exemplary group master data files.
The group master data could be stored using alternative types of
files and records.
[0090] Dependent Strategies
[0091] Typically, the relationship shown in FIG. 4A between the
Dependent Financial Records 422, 424, 426, 428, 430, 432, 434 and
the Group Master Data 400 is defined by a set of parameters. The
parameters are typically provided by the card processing and
service provider. A set of parameters and parameter values can be
selected to create a customized dependent strategy. Either the card
processing and service provider or the issuer can select the
parameters and the parameter values to create a dependent strategy.
Preferably, the card processing and service provider provides
parameters and the issuer selects a set of parameter values that is
suitable for a particular situation. Alternatively, the card
processing and service provider could provide strategies rather
than parameters to define the strategies. If the card processing
and service provider provides strategies, then each of the issuers
supported by the card processing and service provider chooses among
the same group of strategies. However, if the card processing and
service provider provides parameters, then each issuer can
customize the strategies offered to its customers. In some
embodiments the dependent strategies are labeled. For example, a
dependent strategy for a college-age child residing at school may
have one label, whereas a dependent strategy for a second account
for the primary owner may have another label.
[0092] A dependent strategy specifies the relationship between a
dependent account and the group by specifying group processing
options for the account. The group processing options provide
flexibility in the relationships between the dependent accounts and
the group and provide for automatic processing at the group level.
Typically, the dependent strategy includes parameters that define
how transactions are authorized for the dependent account, as well
as whether payment for the account is due from the primary owner or
from the dependent account cardholder. In addition the dependent
strategy includes options for payment application, statement
generation, cardholder communications, and reward pooling.
[0093] The parameter values could be selected to create a dependent
strategy appropriate for a dependent, college age child that
resides at school. The parameter values could be selected so that
the child is liable for the account and the parent receives
information about the activity of the account. Alternatively, the
parameter values could be selected so that the parent and the child
are jointly liable for the account and that both the parent and the
child receive information about the activity of the account at
their respective residences. Another strategy could be created for
a high school age child living at home. The parameter values could
be selected so that the primary owner, typically the parent, is
financially liable for the account and the account has a
predetermined limit. The primary owner could set the limit on the
account.
[0094] The parameter values could also be selected to create a
strategy for a dependent account held by the primary owner. The
primary owner could use the key account and the dependent account
to segregate expenses. The parameter values could be selected so
that the primary owner is liable for the account and detailed
information about the account is included on the group statement.
As will be apparent to those skilled in the art, additional
strategies can also be created to address the needs of other
situations.
[0095] Creating a Group
[0096] There are a number of ways that a group can be created. One
way to create a group is to create a group using new accounts.
Another way to create a group is to link a number of existing
accounts together. Typically, a group is created by an issuer. The
group can be created using either on line or batch processing. Once
the first account is identified as being a member of the group, the
group master data is automatically generated. Once a group is
created, additional accounts can be added to the group or existing
accounts can be removed from the group.
[0097] Business rules are used to insure that the relationships
between the accounts in the group are valid. The business rules
define the types of accounts that can be linked together in a
group. Typically, the business rules are promulgated by the card
processing and service provider. The business rules are checked
whenever group relationships are impacted. For example, the
business rules are checked when a group is created or an account is
added to or removed from a group. Shown below is a list of typical
business rules. As will be apparent to those skilled in the art,
the number and types of business rules may vary from that shown
below.
[0098] (1) A group must have one and only one primary owner.
[0099] (2) A group will not exist without at least one account
linked to it or a historical relationship to an account.
[0100] (3) Dependent accounts must have dependent strategies.
[0101] (4) All accounts that statement together must have the same
cycle code and method.
[0102] (5) All accounts in the group must have the same issuer
number.
[0103] (6) Accounts within a group cannot be dual. A dual account
is an account that corresponds to two different credit card
products. For example, a dual account could correspond to a
VISA.TM. product and a MASTERCARD.TM. product.
[0104] (7) Accounts within a group cannot be included in a Combine
Account Transfer. A Combine Account Transfer is a process that
merges two accounts into a single joint account.
[0105] (8) Accounts in the group cannot have a commercial card
relationship.
[0106] (9) The key account cannot have a status of bankrupt, closed
or charge off without impacting the dependent accounts.
[0107] Creating a Group Using New Accounts
[0108] An exemplary method for creating a group using new accounts
is shown in FIG. 5. In step 500, a new account is opened. The new
account is designated as the key account in step 502 by setting a
relationship parameter for the account to "key." The relationship
parameter defines the relationship between the account and the
group. When the key account is opened, a number of account
parameters and group parameters are automatically set. For example,
parameters defining the cycle code and method and the currency code
are typically defined at the time the account is opened. In step
504, the parameters set in step 500 are compared to the set of
business rules. If the parameters set in step 500 satisfy the
business rules, then the business rules are validated.
[0109] If the determination in step 504 is that the business rules
are validated, then the "Yes" branch is followed to step 508. In
step 508, the group build is initiated and the key financial record
and the group master data are created. Typically, the key financial
record includes the account parameters for the key account plus the
relationship parameter and a group identifier. The group master
data includes a group identifier and certain group parameters. If
the determination in step 504 is that the business rules are not
validated, then the "No" branch is followed to step 520 and an
error occurs.
[0110] Although FIG. 5 illustrates that a key account is created in
steps 500 and 502, a group can be created without a key account. If
a key account is created, then the key account cardholder is the
primary owner. However, if a group is created without a key
account, a primary owner is required. A key financial record is
created regardless of whether the group includes a key account.
[0111] The remaining steps in FIG. 5 illustrate adding dependent
accounts to the group. In step 510, a determination is made as to
whether a dependent account is to be added to the group. If a
dependent account is to be added to the group, then the "Yes"
branch is followed to step 512 and a new account is opened. The new
account is designated as a dependent account by setting the
relationship parameter for the account to dependent. From step 512,
the method proceeds to step 514 where a dependent strategy is
selected. Typically, an issuer provides a number of dependent
strategies that can be used for dependent accounts within a group.
Once a dependent strategy is selected, then a determination is made
in step 516 as to whether the parameters selected in opening the
dependent account and the dependent strategy satisfy the business
rules. If the business rules are satisfied, then the business rules
are validated in step 516 and the method proceeds to step 518. In
step 518, the dependent financial record is created and the group
master data is updated. Typically, the dependent financial record
includes account parameters for the dependent account, as well as
the relationship parameter, a group identifier, and a dependent
strategy identifier. Updating the group master data includes
creating the link between the dependent financial record for the
dependent account and the group master data.
[0112] From step 518 the method returns to step 510 and a
determination is made as to whether another dependent account is to
be added. If another dependent account is to be added, then steps
512, 514, 516, and 518 are repeated. Once all the dependent
accounts have been added, then the method proceeds from step 510
via the "No" branch to step 506 and the method ends.
[0113] FIG. 5 illustrates that business rules are validated after
the key account or a dependent account is opened. Alternatively, if
the accounts are opened in an on line environment, then the
business rules can be validated as the accounts are opened. For
example, an operator can be prevented from creating an invalid
relationship, such as creating two key accounts. FIG. 5 also
illustrates that the group master data is updated after the
addition of each dependent account. However, the group master data
can be updated at other times. For example, information for opening
a key account and dependent accounts may be collected by the issuer
and then submitted by the issuer to the card processing and service
provider in batch. If the information is submitted in batch, then
the group master data may be updated once with information for all
of the accounts in the group.
[0114] Creating a Group Using Existing Accounts
[0115] FIG. 6 illustrates the steps for creating a group using
existing accounts. In step 600, an existing account is selected as
the key account by setting the relationship parameter for the
account to key. If the account was not previously a member of a
group, then the relationship parameter was blank. Once an existing
account is selected as the key account, then in step 602 a
determination is made as to whether the business rules are
validated. The business rules are validated if the parameters for
the key account satisfy the business rules.
[0116] If the business rules are validated, then the method follows
the "Yes" branch to step 604. In step 604, the group build is
initiated. Initiating the group build includes creating the group
master data, and linking the key account to the group by linking
the key financial record to the group master data.
[0117] Once the initial group build is complete, then a
determination is made in step 606 as to whether a dependent account
is to be added to the group. If a dependent account is to be added
to the group, then the "Yes" branch is followed to step 608. In
step 608, an account is selected as a dependent account. Once an
account is selected as a dependent account, the relationship
parameter for the selected account is set to dependent. In step
610, a dependent strategy is selected for the dependent account.
From step 610 the method returns to step 606 and a determination is
made as to whether another dependent account is to be added to the
group.
[0118] Once all the dependent accounts have been added to the
group, then the "No" branch is followed from step 606 to step 612.
In step 612, a determination is made as to whether the business
rules are validated. The business rules are validated in step 612,
if the dependent accounts satisfy the business rules. If the
business rules are validated in step 612, then the "Yes" branch is
followed to step 614. In step 614, the group master data is updated
with information for the dependent accounts. In addition, the
dependent financial records for the dependent accounts are linked
to the group master data. However, if the business rules are not
validated in step 612, then the "No" branch is followed to step 616
and an error occurs.
[0119] Although FIG. 6 illustrates that the group master data is
updated after all the dependent accounts have been selected, those
skilled in the art will appreciate that the group master data could
be updated at other points in the process. For example, if the
group is being created using on line processing, then validating
the business rules and updating the group master data could occur
after step 610 for each dependent account added.
[0120] Changing Group Relationships
[0121] The relationships between the accounts of the group are
flexible and can be modified. The relationship between a dependent
account and the group can be changed by selecting a new dependent
strategy. The ability to modify, the dependent strategy allows the
account to change as the cardholder's situation changes. For
example, if the initial dependent strategy was a strategy suitable
for a high school age child living at home, then the dependent
strategy could be modified to a strategy suitable for a college age
child living at school once the child enters college and moves away
from home. Changing the dependent strategy of one of the dependent
accounts does not impact the dependent strategies of the other
dependent accounts.
[0122] In addition, a dependent account can be added to the group
or deleted from the group without affecting the remaining accounts
in the group. The ability to add dependent accounts and delete
dependent accounts allows the group to change to accommodate
changes in the relationships between the primary owner and the
dependent cardholders. To add a dependent account to a group, the
dependent financial record for the dependent account is linked to
the group master data. Adding a dependent account to a group may
correspond to the primary owner or a dependent cardholder obtaining
another card or may correspond to adding another dependent
cardholder to the group. For example, a group could be established
for a family that includes a mother, father and daughter. When the
group is created, the group could include financial records
corresponding to accounts held by the mother and father.
Subsequently, a dependent financial record could be added for an
account for the daughter.
[0123] To remove a dependent account from a group, the dependent
financial record for the dependent account is delinked from the
group master data. Removing a dependent account from a group may
correspond to a change in family status. For example, a group could
be established for a married couple with the husband as the primary
owner and the wife as a dependent cardholder. If the couple
divorces, then the group could be modified to delete the dependent
financial records that correspond to accounts held by the wife. As
will be apparent to those skilled in the art, a dependent account
can also be removed from a group for reasons other than a change in
family status.
[0124] A single account can be removed from a group or a number of
accounts can be removed from a group. If an account is removed from
a group, it can be moved to an existing group, used to create a new
group, or can be designated as an independent account that is not a
member of any group. If a dependent account is moved to an existing
group, then the group identifier in the dependent financial record
is changed to correspond to the group identifier for the existing
group. If a dependent account is removed from one group and is used
to create another group, then the dependent account can remain a
dependent account or can be "matured" into a key account. To mature
a dependent account into a key account, the relationship parameter
for the dependent account is changed from dependent to key. If a
dependent account is matured into a key account, the history for
the dependent account that was accrued during the period that the
dependent account was a member of the group follows the dependent
account to the new group. If the dependent account is designated as
an independent account, then the relationship parameter is set to
blank.
[0125] If all the accounts in a group are removed from the group,
then the group continues to exist for some pre defined period of
time even though the group does not have any members. The group
continues to exist so that audit history for the group can be
maintained for the predefined period of time.
[0126] The primary owner of the group can be changed. The primary
owner can be changed to a cardholder that corresponds to one of the
dependent accounts or to a new primary owner. To change the primary
owner to a dependent cardholder, the relationship parameter for the
dependent account is changed from dependent to key. The original
key account can be converted to a dependent account by changing the
relationship parameter from key to dependent. Alternatively, the
original key account can be removed from the group and transferred
to another group (as either a key or dependent account) or
established as an individual account in a manner similar to that
described in the preceding paragraph.
[0127] A group history is maintained in the group master data. For
example, as discussed above in connection with FIG. 4B, information
on all the accounts that are or ever were members of the group are
stored in the Group Member file. The history of any changes in the
dependent strategy for a dependent account are maintained in the
Member Relationship file and the history of any changes in the
definition of a strategy is maintained in the Strategy Definition
file. In addition to group history, account history is also
maintained with each account. The account history follows the
account notwithstanding changes in the account's membership in a
group. For example, payment history for a dependent account follows
the dependent account even if the dependent account is delinked
from the group and is established as an individual account.
[0128] Adding a Dependent Account to a Group
[0129] Once a group is created, additional dependent accounts can
be added to the group. The additional dependent accounts can be
newly created accounts or can be existing accounts. FIG. 7A
illustrates the steps for adding a dependent account to an existing
group. In step 700, a group is identified. Typically a group is
identified using the group identifier. In step 702, a determination
is made as to whether an existing account is to be added or whether
a new account is to be added. If a new account is to be added, then
the "Yes" branch is followed to step 704. In step 704, a new
account is opened and the relations hip parameter for the account
is set to dependent. A dependent strategy for the new account is
selected in step 706. In step 708, a determination is made as to
whether the dependent account opened in step 704 satisfies the
business rules. If the dependent account satisfies the business
rules, then the business rules are validated and the "Yes" branch
is followed to step 710. In step 710, the group master data is
updated. If the business rules are not validated in step 708, then
the "No" branch is followed to step 722 and an error occurs.
[0130] If the determination in step 702 is that an existing account
is to be added, then the "No" branch is followed to step 712. In
step 712, an existing account is selected and the relationship
parameter for the account is set to dependent. A dependent strategy
for the account is selected in step 714. The parameters for the
dependent account created in step 712 are compared to the business
rules in step 718. If the parameters for the dependent account
satisfy the business rules, then the business rules are validated
and the "Yes" branch is followed to step 720. In step 720, the
group master data is updated. However, if the business rules are
not validated then the "No" branch is followed to step 722 and an
error occurs.
[0131] Although FIG. 7A indicates that the group master data is
updated after each dependent account is added to the group, the
group master data can be updated at other points in the process.
For example, if multiple accounts are to be added to an existing
group, then the steps shown in FIG. 7A would be repeated for each
account. Rather than updating the group master data after the
addition of each dependent account, the group master data could be
updated after the addition of all the dependent accounts. Updating
the group master data after the addition of each account can be
used to support on line processing, whereas updating the group
master data after the addition of a number of dependent accounts
can be used to support batch processing.
[0132] Group Processing
[0133] Once a group is created it can be used to perform group
processing. Group processing typically includes authorizing
transactions, applying group payments, creating group statements,
controlling cardholder communications, and administering reward
programs for the accounts in the group. Information from both the
key account and the dependent accounts are used for group
processing. Each dependent account has an associated dependent
strategy that specifies group processing options for the dependent
account. Although the accounts of a group are subject to group
processing for some functions, the accounts are treated as
individual accounts for other functions.
[0134] Authorizing a Transaction
[0135] The dependent strategy for a dependent account specifies the
authorization option for the dependent account. The authorization
option specifies the information that is used to authorize a
transaction. In one embodiment of the invention, three
authorization options are available for a dependent account. One
authorization option considers only the credit line and available
credit of the group, a second option considers only the credit line
and available credit of the dependent account, and a third option
considers the credit line and the available credit of both the
group and the dependent account.
[0136] Depending upon the authorization option selected, the
authorization processing uses the group credit line and the group
available credit and/or the dependent credit line and the dependent
available credit. The group credit line is a group parameter that
typically is set when the group is created. The dependent credit
line is a dependent account parameter that is set when the
dependent account is opened. The group credit line and the
dependent credit line can be modified. The group available credit
is calculated real time using activity from the key account (if
any) and any dependent accounts that share the group credit line. A
dependent account shares the group credit line if payment for the
dependent account is due from the primary owner. Generally, the
group available credit is calculated by subtracting the current
balances and any outstanding authorizations of the key account and
the dependent accounts that share the group credit line from the
group credit line. Similarly, the dependent available credit is
calculated by subtracting the current balance and any outstanding
authorizations of the dependent account from the dependent credit
line.
[0137] FIG. 7B illustrates exemplary steps for authorizing a
transaction. In step 740, an authorization request is received. The
authorization request includes a transaction amount and an account
identifier, such as an account number. In step 742, a determination
is made as to whether the account identifier corresponds to an
account that is a member of a group. If the requesting account is
not a member of a group, then the "No" branch is followed to step
752. In step 752, normal authorization processing occurs using the
credit line and the available credit for the account.
[0138] Normal authorization processing typically includes several
calculations that use the credit line and the available credit. For
example, authorization may include comparing the amount of the
transaction to the available credit, comparing the amount of the
transaction to a percentage expansion of the credit line, as well
as comparing the transaction to past transactions for the account.
Comparing the transaction to past transactions for the account may
be used to detect possible fraudulent uses of a card and may result
in the issuance of a referral code. As will be apparent to those
skilled in the art, additional calculations can also be
performed.
[0139] If the determination in step 742 is that the requesting
account is a member of a group, then the "Yes" branch is followed
to step 744. In step 744, a determination is made as to whether the
requesting account is a key account or a dependent account. If the
requesting account is a key account, then the "Yes" branch is
followed to step 748. In step 748, normal authorization processing
occurs using the group credit line and the group available
credit.
[0140] If the determination in step 744 is that the requesting
account is a dependent account, then the "No" branch is followed to
step 746. In step 746, the dependent strategy is checked to
determine the authorization option that corresponds to the
dependent account. FIG. 7B illustrates three possible authorization
options, A, B and C. Option A specifies that the credit line and
the available credit for the group are used for authorization
processing. Option B specifies that the credit line and the
available credit for both the group and the dependent account are
used for authorization processing. Option C specifies that the
credit line and the available credit for the dependent account are
used for authorization processing.
[0141] If the dependent strategy specifies option A, then the
method proceeds from step 746 to step 748 and the credit line and
the available credit for the group are used for normal
authorization processing. If the dependent strategy specifies
option C, then the method proceeds from step 746 to step 752 and
the credit line and the available credit for the dependent account
are used for normal authorization processing. The difference
between the authorization processing performed in step 748 and the
authorization processing performed in step 752 is that step 748
uses group information, whereas step 752 uses dependent account
information.
[0142] If the dependent strategy specifies option B, then the
method proceeds from step 746 to step 750 and the credit line and
the available credit for both the group and the dependent account
are used for authorization processing. In step 750, the credit line
and the available credit for the dependent account are used in
normal authorization processing. The authorization processing
performed in step 750 is similar to that performed in step 752.
However, additional processing is required for option B. In step
754, a determination is made as to whether the processing performed
in step 750 indicates that the authorization request is authorized.
If the processing performed using the dependent account information
indicates that the request is authorized, then the "Yes" branch is
followed to step 758. In step 758, a determination is made as to
whether the transaction amount specified in the authorization
request exceeds the group available credit. If the amount does not
exceed the group available credit, then the "Yes" branch is
followed to step 760 and the authorization request is approved. If
the processing performed in step 754 indicates that the
authorization request is denied or if the comparison performed in
step 758 indicates that the amount of the request exceeds the group
available credit, then the "No" branch is followed to step 756 and
the authorization request is declined.
[0143] Applying a Payment
[0144] The dependent strategy for a dependent account specifies
whether payment of the dependent account balance is due from the
primary owner or is due from the dependent cardholder. If payment
of the dependent account is due from the dependent cardholder, then
the entire amount of a payment received from the dependent
cardholder is credited to the dependent account. However, if the
dependent account is paid by the primary owner, then the amount of
the group payment that is credited to the dependent account depends
upon the amount of the group payment, as well as the control
settings for the group. Payment of the key account is due from the
group payment.
[0145] The allocation of a group payment is partially determined by
the amount of the payment and partially determined by the group
payment options. The group payment options are typically set by the
issuer. The group payment options could be part of the group
control settings in the group master data. Alternatively, the group
payment options could be stored in a separate file, such as a
Product Control File, and associated with the group through the key
account or through another means.
[0146] Only accounts included in the group balances during the
processing of the last group statement are included in the
automatic allocation of a group payment. The group balances for the
last group statement can be determined from the Group Statement
files in the group master data. The account balances for accounts
in the group can be determined from the Member Statement files in
the group master data.
[0147] Typically, the amount of the group payment is compared to
one or more of the group balances. The group balances include the
Last Statement Balance ("LSB") and the Minimum Payment Due ("MPD")
for the group. The group balances may also include the group
delinquency amount. The group LSB is determined by adding the LSB
of the key account (if any) to the LSB of all dependent accounts in
the group that are paid by the primary owner. If payment for a
dependent account is due from the dependent cardholder, then the
LSB of that dependent account is not included in the group LSB. The
group MPD is calculated by adding the MPD for the key account (if
any) to the MPD for each of the dependent accounts that are paid by
the primary owner. The group delinquency amount is determined by
adding the account delinquency of the key account (if any) to the
account delinquency of the dependent accounts that are paid by the
primary owner.
[0148] FIGS. 8A and 8B illustrate an exemplary method for applying
a group payment. In step 800, the group payment is received. A
determination is made in step 802 as to whether the payment is less
than the group LSB. If the group payment is greater than or equal
to the group LSB, then the "No" branch is followed to step 804. In
step 804, the payment is applied to the dependent accounts in an
amount equal to the LSB for each account. The remainder of the
group payment is applied to the key account in step 806. If the
payment is equal to the group LSB, then the amount applied to the
key account is step 806 is equal to the LSB of the key account.
However, if the group payment is greater than the group LSB, then
the amount applied to the key account in step 806 is greater than
the LSB of the key account. Although FIG. 8A illustrates that any
overpayment is credited to the key account, an overpayment could be
shared between the accounts of the group. Whether an overpayment is
credited to the key account or shared between the accounts is
typically determined by the group payment options.
[0149] If the determination in step 802 is that the group payment
is less than the group LSB, then the "Yes" branch is followed to
step 808. In step 808, a determination is made as to whether the
group payment is less than the group MPD. If the group payment is
less than the group MPD, then the "Yes" branch is followed to step
810. In step 810, the group payment options are determined. In step
812, a determination is made as to whether the group payment
options indicate that account delinquency is considered in applying
a group payment. If account delinquency is not considered, then the
"No" branch is followed to step 814. In step 814, MPD ratios are
calculated for the key account and the dependent accounts that are
paid by the primary owner. An MPD ratio is calculated for an
account by comparing the MPD for the account with the group MPD.
Once the MPD ratios for the key account and the dependent accounts
that are paid by the primary owner are calculated in step 814, then
in step 816 the payment is applied to the key account and the
dependent accounts in the group in accordance with the MPD ratios
calculated in step 814.
[0150] If the determination in step 812 is that account delinquency
is considered in applying the group payment, then the "Yes" branch
is followed to step 820. In step 820, the group payment is applied
to the key account and the dependent accounts paid by the primary
owner to satisfy the delinquent amount for each account. In step
822, a determination is made as to whether there is any amount of
the payment remaining. If there is an amount of the payment
remaining, then the "Yes" branch is followed to step 814 and the
remaining payment is allocated based upon the MPD ratios for the
key account and the dependent accounts paid by the primary owner.
If the determination in step 822 is that there is no remaining
balance, then the method ends.
[0151] If the determination in step 808 is that the group payment
is greater than or equal to the group MPD, then the "No" branch is
followed to step 830 of FIG. 8B. In step 830, the group payment is
allocated between the key account and the dependent accounts that
are paid by the primary owner to satisfy the MPD for each account.
A determination is made as to whether there is any amount of the
group payment remaining in step 832. If there is an amount of the
group payment remaining, then the method proceeds to step 834. In
step 834, a remaining balance ratio is calculated for each of the
accounts. A remaining balance ratio is calculated by comparing the
remaining balance for an account to the remaining balance for the
group. The remaining balance for an account is calculated by
subtracting the MPD from the LSB for the account. The remaining
balance for the group is calculated by subtracting the group MPD
from the group balance. Once the remaining balance ratios are
calculated in step 834, then the remainder of the payment is
applied in accordance with the remaining balance ratios in step
836. If the determination in step 832 is that there is no remaining
balance, then the method ends.
[0152] As will be apparent to those skilled in the art, other
payment ratios could be considered when allocating a group payment
among the accounts in the group other than those shown in FIGS. 8A
and 8B. For example, as an alternative to steps 814 and 816, the
group payment could be allocated based upon a LSB ratio rather than
an MPD ratio or based upon an account hierarchy. An LSB ratio for
an account can be calculated by comparing the LSB for the account
to the LSB for the group. An account hierarchy specifies the order
in which the accounts of a group are to be paid. Similarly, MPD
ratios could be used as an alternative to the remaining balance
ratios illustrated in FIG. 8B. Moreover, other account conditions
could be considered in allocating a group payment. For example, in
addition to or as an alternative to considering delinquent amounts,
disputed amounts could be considered.
[0153] The exemplary method for payment application illustrated by
FIGS. 8A and 8B is based upon the amount of the group payment, the
dependent strategies and the group payment options. Preferably, the
steps illustrated in FIGS. 8A and 8B can be overridden. For
example, an operator could manually allocate a group payment
between the key account and the dependent accounts in accordance
with specific allocation instructions. The allocation instructions
could be generated by the primary owner of the group or the issuer.
If the group payment is an electronic payment, then instructions
submitted with the electronic payment could determine how the
payment is allocated. The allocation instructions could be for a
single payment or could be standing instructions that apply to all
payments received. If the allocation instructions are standing
instructions, then the instructions could be stored in the group
master data.
[0154] There are times when the application of a group payment
needs to be reversed. For example, reversal of a payment is
necessary if a check for the payment is returned for insufficient
funds. If a check for a group payment is returned for insufficient
funds, then the payment allocations to the accounts in the group
are reversed. To reverse the payment allocations, the original
payment allocation must be recreated. For example, if a group
payment of $100 was allocated $50 to the key account, $25 to one
dependent account and $25 to another dependent account, then
reversal of the group payment is made by reversing the $50 payment
allocation to the key account, the $25 payment allocation to the
first dependent account and the $25 payment to the second dependent
account. To reverse a payment, the Payment Allocation file is used
to determine how the payment was originally allocated.
[0155] Generating Group Statements and Courted Statements
[0156] A group statement is created for the group and is sent to
the primary owner. The group statement includes information about
the activity of the key account (if any) and the activity of some
or all of the dependent accounts of the group. The amount of
information that appears on the group statement about a dependent
account is controlled by the dependent strategy. Depending upon the
dependent strategy, the group statement can include details of the
activity of the dependent account or a summary of the activity of
the dependent account.
[0157] Statement data is calculated for each account in the group.
Statement data typically includes the MPD, LSB, reward information,
finance charges, and late fees for the account. The statement data
is calculated on an account by account basis. The statement data is
used to create the group statement, a dependent statement, and/or a
courtesy statement. The statement data is also used to calculate
group data.
[0158] Group data includes the group MPD, group LSB, group reward
information, group available credit, group finance charges and
group late fees. The group data is calculated from the key account
and any dependent accounts that are paid by the primary owner. The
group statement also includes information about the previous group
payment, including the amount, the posting date, etc. The group
statement also includes information about the group, such as the
primary owner, a listing of the accounts in the group, including
the account numbers, and the dependent strategy for each dependent
account in the group.
[0159] A dependent strategy specifies whether payment for the
dependent account is due from the primary owner or from a dependent
cardholder associated with the dependent account. The dependent
strategy can also specify that a courtesy statement is generated. A
courtesy statement is a statement that provides statement data to
the cardholder, but does not require payment from the
cardholder.
[0160] FIG. 9 illustrates exemplary steps for identifying the
addressees or intended recipients of statement data and for
providing statement data for inclusion on the group statement, a
dependent statement, and a courtesy statement. In step 900,
statement data for the key account (if any) and the dependent
accounts are calculated. If the group includes a key account, then
the statement data for the key account is provided for the group
statement in step 900. In step 904, the dependent strategy for a
dependent account is checked to determine whether payment for the
dependent account is due from the primary owner or from a dependent
cardholder associated with the dependent account.
[0161] If payment for the dependent account is due from the primary
owner, then the "Yes" branch is followed to step 908. In step 908,
the primary owner of the group is identified as an intended
recipient of the statement data for the dependent account and the
statement data for the dependent account is provided for inclusion
on the group statement. In step 910, a determination is made as to
whether the dependent strategy specifies that the dependent
cardholder receives a courtesy statement. If the dependent strategy
specifies that the dependent cardholder receives a courtesy
statement, then the "Yes" branch is followed to step 912. In step
912, the dependent cardholder is identified as another intended
recipient of the statement data for the dependent account and the
statement data for the dependent account is provided for inclusion
on the dependent statement. If the determination in step 910 is
that the dependent strategy does not specify that the dependent
cardholder receives a courtesy statement, then the "No" branch is
followed to step 914 and the method ends.
[0162] If payment for the dependent account is due from a dependent
cardholder associated with the dependent account, then the "No"
branch is followed to step 916. In step 916, the dependent
cardholder of the group is identified as an intended recipient of
the statement data for the dependent account and the statement data
for the dependent account is provided for inclusion on a statement
for the dependent cardholder. In step 918, a determination is made
as to whether the dependent strategy specifies that the details of
the activity of the dependent account are included on the group
statement. If the details of the activity of the dependent account
are included on the group statement, then the "Yes" branch is
followed to step 920. In step 920, the primary owner is identified
as another intended recipient of the statement data for the
dependent account and the statement data for the dependent account
is provided for inclusion on the group statement. If the dependent
account statements on the same day as the group, then current
statement data is provided for inclusion on the group statement.
However, if the dependent account statements on a different day
than the group, then statement data associated with the last
dependent statement is provided for inclusion on the group
statement.
[0163] If the determination in step 918 is that the details of the
activity of the dependent account are not included on the group
statement, then the "No" branch is followed to step 922. In step
922, the primary owner is identified as another intended recipient
of the statement data for the dependent account and a summary of
the statement data for the dependent account is provided for
inclusion on the group statement.
[0164] Step 904 illustrates that the dependent strategy for a
dependent account is checked. As will be apparent to those skilled
in the art, if the group includes multiple dependent accounts, then
steps 904 through 922 are repeated for each dependent account.
[0165] Cardholder Communications
[0166] The dependent strategy for a dependent account also provides
cardholder communication options for the dependent account. The
communication options specify the intended recipient of an original
communication, such as a letter, notice, or plastic, and, in the
case of letters or notices, specify whether a courtesy copy of the
communication is provided. A communication is typically generated
to provide information to the cardholder. For example, a
communication can be generated to advise a cardholder of changes to
the cardholder agreement or to advise a cardholder of special
offers.
[0167] The dependent strategy can specify that the original
communication is sent to the primary owner. The dependent strategy
can also specify that a courtesy copy of the communication is sent
to the dependent cardholder. Alternatively, the dependent strategy
can specify that the original communication is sent to the
dependent cardholder. If the dependent strategy specifies that the
original communication is sent to the dependent cardholder, the
dependent strategy can also specify that a courtesy copy of the
communication is sent to the primary owner.
[0168] In some instances, it may be necessary to generate multiple
courtesy copies. This situation may occur if two parties are
jointly liable on an account. For example, a dependent account
could be jointly held by a first dependent cardholder and a second
dependent cardholder. If the dependent strategy specifies that the
first dependent cardholder receives the original communication and
that the primary owner receives a courtesy copy, then in addition
to the courtesy copy sent to the primary owner, a second courtesy
copy is sent to the second dependent cardholder because the account
is jointly held.
[0169] If the group includes multiple dependent accounts, then the
dependent strategies for the dependent accounts can specify that
the primary owner is to receive the original communication or a
courtesy copy. Preferably, it is recognized that multiple
communications are being sent to the primary owner so that the
communications can be merged into a single communication that
includes the communications for all the dependent accounts.
[0170] A group communication can include information about some or
all of the accounts within a group. Typically, a group
communication is sent to the primary owner of the group.
Information about selected accounts of the group is obtained from
the financial records corresponding to the accounts. The type of
information obtained from the financial records can vary according
to the type of communication. Typically, the type of information is
specified by a processing option or variable associated with the
communication. The information obtained from the financial records
is combined into a single communication. The single communication
can be automatically generated.
[0171] A group communication can also be manually created. The
group communication can include information about the accounts
within the group. To manually create a group communication, an
operator can use a series of on line screens to specify the
accounts and the type of information to be included in the
communication.
[0172] In addition to letter communications, the primary owner and
the dependent account cardholders may also receive notices. Notices
are added to a group statement by considering what notices are
required for the key account, what notices are required for each of
the dependent accounts, and what notices are optional for the key
account and the dependent accounts. If several accounts require the
same notice, then preferably the notices are reviewed to insure
that no duplicates are included.
[0173] Pooling Reward Points
[0174] Reward programs allow cardholders to earn reward points
based on purchases and other account activity. The processing of
reward points at the group level is determined by the reward
program and the dependent strategies of the dependent accounts in
the group. Typically, the availability of group level pooling is
determined by the reward program. It may be that some programs
permit group pooling, whereas other programs do not. If the
accounts in a group are members of multiple reward programs, then
it is possible that some programs permit pooling while other
programs do not.
[0175] If a reward program supports pooling, then any reward points
earned by the key account are pooled into the group pool. The
dependent strategy specifies whether reward points earned by a
dependent account are pooled or are maintained at the account
level. In addition, the dependent strategy specifies whether the
dependent account cardholder can redeem group reward points.
[0176] An exemplary method for redeeming group reward points is
shown in FIG. 10. In step 1000, a request to redeem group reward
points is received. In step 1002, a determination is made as to
whether the request is associated with an account that is a member
of the group. If the request is from an account that is a member of
the group, then the "Yes" branch is followed to step 1004. In step
1004, a determination is made as to whether the reward program
supports pooling. If the reward program supports pooling, then the
"Yes" branch is followed to step 1006. In step 1006, a
determination is made as to whether the account making the request
is the key account. If the requesting account is the key account,
then the "Yes" branch is followed from step 1006 to step 1012.
However, if the requesting account is not the key account, then the
requesting account is a dependent account and the "No" branch is
followed from step 1006 to step 1008. In step 1008, the dependent
strategy for the requesting dependent account is checked. A
determination is made in step 1010 as to whether the dependent
strategy specifies that the dependent account can redeem group
reward points. If the dependent account can redeem group reward
points, then the "Yes" branch is followed to step 1012.
[0177] In step 1012, a determination is made as to whether there
are sufficient group points to satisfy the redemption request. If
there are sufficient points, then the "Yes" branch is followed to
step 1018 and the request to redeem group reward points is
authorized. However, if there are not sufficient points, then the
"No" branch is followed to step 1014 and the redemption request is
not authorized.
[0178] If the determination in step 1002 is that the request to
redeem group reward points is made by an account that is not a
member of a group or the determination in step 1004 is that the
reward program does not support reward point pooling, then the
method proceeds to step 1016. Likewise, if the determination in
1010 is that the dependent account strategy does not allow the
redemption of group reward points, then the method proceeds to step
1016. In step 1016 the requesting account is permitted to redeem
points that are associated with the requesting account, but is not
permitted to redeem group points.
[0179] As an alternative to reward point pooling, reward points can
be shared between the accounts of a group via chasing. If chasing
is implemented, then reward points earned by an account remain at
the account level. The points can be chased or collected from the
account level and used to satisfy a single redemption request.
[0180] Preferably, chasing is enabled or disabled by the reward
program. If chasing is enabled by the reward program, then the
accounts that participate in the reward program can support
chasing. If an account supports chasing, then the account permits
another account to redeem its earned reward points. If the account
is a key account, then the option to support chasing could be part
of the predefined relationship between the key account and the
group. If the account is a dependent account, then the option to
support chasing could be part of the dependent strategy. The
ability to chase reward points could expand beyond the group to
accounts that are not members of the group.
[0181] If a cardholder makes a redemption request that exceeds the
reward points associated with the cardholder's account, then a
determination is made as to whether the reward program supports
chasing. If the reward program supports chasing, then the accounts
that permit chasing in that reward program are identified. Points
are chased from the identified accounts to satisfy the redemption
request. The points are chased from the accounts based on a chasing
option that specifies how the points are chased from the identified
account. The chasing option could specify that the points are
chased from the accounts on a pro rata basis, on the basis of an
account hierarchy, or on some other basis. Chasing could be
performed by an operator pursuant to instructions received by a
cardholder. If chasing is performed by an operator, then the
accounts that support chasing are displayed and the operator can
select the accounts to chase. The operator can also determine the
number of points chased from each account.
[0182] Group Non-monetary Transactions
[0183] In addition to group monetary transactions, such as
authorizing a transaction or allocating a payment, group
non-monetary transactions are also needed to support groups. A
non-monetary transaction is a transaction that affects information
for one or more accounts within the group, but does not affect the
monetary information for the account. For example, a change in
billing address is a non-monetary transaction, whereas the
application of a payment is a monetary transaction. Other examples
of non-monetary transactions include linking an account to an
existing group, delinking one or more accounts from a group,
changing the primary owner of a group, or changing the dependent
strategy for a dependent account.
[0184] Group non-monetary transactions can be used in both batch
and on line processing. Group non-monetary transactions update
multiple accounts within a group in response to a single input of
the updated information. To update the accounts in a group with
updated group information, the accounts within the group are
identified. The accounts are identified using the group master
data. As described in connection with FIG. 4B, the accounts in a
group can be identified using the Group Member file. Once the
financial records are identified, then the financial records are
updated with the new information.
[0185] Group non-monetary transactions also support the selective
updating of accounts within the group. For example, if only certain
accounts within the group are to receive the updated information,
then the accounts in the group are identified and one or more of
the accounts is selected and the selected account(s) is updated
with the new information. In an on-line environment, an operator
can select the accounts that are to receive the updated
information. In a batch environment, the updated information and
the account numbers for the selected accounts can be submitted in
batch.
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