U.S. patent application number 10/423527 was filed with the patent office on 2003-10-30 for method, apparatus, and code for issuing a dual credit card.
Invention is credited to Dupree-Cammer, Michelle, Manchester, Jeff.
Application Number | 20030204470 10/423527 |
Document ID | / |
Family ID | 29254129 |
Filed Date | 2003-10-30 |
United States Patent
Application |
20030204470 |
Kind Code |
A1 |
Manchester, Jeff ; et
al. |
October 30, 2003 |
Method, apparatus, and code for issuing a dual credit card
Abstract
A method for issuing a dual credit card includes receiving
information regarding an applicant and assigning a credit line to a
dual credit card for the applicant.
Inventors: |
Manchester, Jeff;
(Covington, KY) ; Dupree-Cammer, Michelle;
(Broomfield, CO) |
Correspondence
Address: |
Gerow D. Brill
Cantor Colburn LLP
55 Griffin Road South
Bloomfield
CT
06002
US
|
Family ID: |
29254129 |
Appl. No.: |
10/423527 |
Filed: |
April 25, 2003 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10423527 |
Apr 25, 2003 |
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09593199 |
Jun 14, 2000 |
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60202980 |
May 10, 2000 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G07F 7/025 20130101;
G06Q 20/10 20130101; G06Q 20/342 20130101; G06Q 30/06 20130101 |
Class at
Publication: |
705/39 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A method for issuing a dual credit card, comprising: receiving
information regarding an applicant; and assigning a credit line to
a dual credit card for said applicant, said dual credit card being
associated with a first merchant, said credit line including a
first portion and a second portion, said first portion being
available only for use in transactions involving said first
merchant and said applicant, and said second portion being
available for use in transactions involving merchants other than
said first merchant.
2. The method of claim 1, wherein said second portion is available
for use in transactions involving said first merchant.
3. The method of claim 1, further comprising: associating an
identifier with said dual credit card, wherein said identifier is
capable of identifying said dual credit card as a private label
card associated with said first merchant when said dual credit card
is used in a transaction involving said first merchant and of
identifying said dual credit card as a bank card when said dual
credit card is used in a transaction involving a second
merchant.
4. The method of claim 3, wherein said identifier includes a
BIN.
5. The method of claim 1, further comprising: associating an
identifier with said dual credit card, wherein said identifier is
capable of indicating that a first transaction involving said dual
credit card and said first merchant should be processed via a first
card processing network, and wherein said identifier is capable of
indicating that a second transaction involving said dual credit
card but not said first merchant should be processed via a second
processing network.
6. The method of claim 1, wherein said information regarding said
applicant includes at least one of the following: credit
information regarding said applicant; employment information
regarding said applicant; and personal information regarding said
applicant.
7. A method for issuing a dual credit card, comprising: receiving
information regarding an applicant; and associating a dual credit
card with said applicant, said dual credit card having an
associated credit line and an associated identifier, said
identifier being capable of identifying said dual credit card as a
private label card associated with a first merchant when said card
identifier is used in a first transaction involving said first
merchant and of identifying said dual credit card as a bank card
when said card identifier is used in a second transaction involving
a second merchant.
8. The method of claim 7, said identifier being capable of
indicating that said first transaction should be processed via a
private label network and of indicating that said second
transaction should be processed via a bank card network.
9. A method for issuing a dual credit card, comprising: receiving
information regarding an applicant; and associating a dual credit
card with said applicant, said dual credit card having an
associated credit line and an associated identifier, said
identifier being capable of indicating that a first transaction
using said dual credit card should be processed via a private label
network and of indicating that a second transaction involving said
dual credit card should be processed via a bank card network.
10. The method of claim 9, wherein said first transaction is a
transaction that involves said applicant and a first merchant and
said second transaction is a transaction that involves said
applicant and a merchant other than said first merchant.
11. A method for issuing a dual credit card, comprising: receiving
an application for a dual credit card, said application being
associated with an applicant; associating an interest rate with
said dual credit card; associating a credit line with said dual
credit card, said credit line including a first portion and a
second portion, said first portion being available only for use in
transactions involving a first merchant and said applicant, and
said second portion being available for use in transactions
involving merchants other than said first merchant. associating an
identifier with said dual credit card, said identifier being
capable of identifying said dual credit card as a private label
card associated with said first merchant when said card identifier
is used in a first transaction involving said first merchant and of
identifying said dual credit card as a bank card when said card
identifier is used in a transaction involving a second merchant,
and said identifier being capable of indicating that said first
transaction should be processed via a private label network and of
indicating that said second transaction should be processed via a
bank card network issuing said dual credit card to said
applicant.
12. An article of manufacture, comprising: a credit card associated
with a single account, said credit card having an associated credit
line and an associated identifier, wherein said identifier is
capable of indicating that a first transaction involving said
credit card and a first merchant should be processed via a private
label network, and wherein said identifier is capable of indicating
that a second transaction involving said credit card and a merchant
other than said first merchant should be processed via a bank card
network.
13. An article of manufacture, comprising: a credit card associated
with a single account, said credit card having an associated credit
line and an associated identifier, wherein said identifier is
capable of identifying said credit card as a private label credit
card associated with said first merchant when said credit card is
used in a transaction involving said first merchant and of
identifying said credit card as a bank card when said credit card
is used in a transaction involving a merchant other than said first
merchant.
14. The article of manufacture of claim 13, wherein a portion of
said credit line is available only for use in transactions
involving said first merchant.
15. The article of manufacture of claim 13, wherein a portion of
said credit line is available only for use in transactions
involving said first merchant, and said credit card's remaining
credit line is available for use in transactions involving
merchants other than said first merchant.
16. The article of manufacture of claim 13, said identifier being
capable of indicating that a first transaction involving said
credit card and said first merchant should be processed via a
private label network, and said identifier being capable of
indicating that a second transaction involving said credit card and
a merchant other than said first merchant should be processed via a
bank card network.
17. The article of manufacture of claim 13, wherein said identifier
includes a BIN.
18. An article of manufacture, comprising: a credit card associated
with a single account and an associated credit line, wherein said
credit card is associated with a first merchant, a portion of said
credit line is available only for use in transactions involving
said first merchant, and said credit card's remaining credit line
is available for use in transactions involving merchants other than
said first merchant.
19. The article of manufacture of claim 18, wherein said credit
card has an associated identifier, said identifier being capable of
indicating that a first transaction involving said credit card and
said first merchant should be processed via a private label
network, and said identifier being capable of indicating that a
second transaction involving said credit card and a merchant other
than said first merchant should be processed via a bank card
network.
20. The article of manufacture of claim 19, said identifier being
capable of identifying said credit card as a private label credit
card associated with said first merchant in a transaction involving
said first merchant and of identifying said credit card as a bank
card in a transaction involving a merchant other than said first
merchant.
21. The article of manufacture of claim 18, wherein said credit
card's remaining credit line is available for use in transactions
involving said first merchant.
22. The article of manufacture of claim 17, wherein said credit
card has one associated interest rate.
23. An article of manufacture, comprising: a storage medium having
stored thereon instructions that when executed by a machine result
in the following: receiving of information regarding an applicant;
and assigning of a credit line to a dual card for said applicant,
said dual card being associated with a first merchant and said
credit line including a first portion and a second portion, said
first portion being available only for use in transactions
involving said first merchant and said applicant, and said second
portion being available for use in transactions involving merchants
other than said first merchant.
24. The article of manufacture of claim 22, wherein said storage
medium includes instructions stored thereon that when executed
result in the following: associating an identifier with said dual
card, wherein said identifier is capable of identifying said dual
card as a private label card associated with said first merchant
when said dual card is used in a transaction involving said first
merchant and of identifying said dual card as a bank card when said
dual card is used in transaction involving a second merchant.
25. The article of manufacture of claim 22, wherein said storage
medium includes instructions stored thereon that when executed
result in the following: associating an identifier with said dual
card, wherein said identifier is capable of indicating that a first
transaction involving said dual card and said first merchant should
be processed via a first card processing network, and wherein said
identifier is capable of indicating that a second transaction
involving said dual card but not said first merchant should be
processed via a second processing network.
Description
CROSS REFERENCE TO RELATED APPLICATION
[0001] This application is a continuation of, and claims priority
to, U.S. patent application Ser. No. 09/593,199 entitled "Method
for a Dual Credit Card System" and filed Jun. 14, 2000, which is
based on, and claims priority to, U.S. provisional Patent
Application Serial No. 60/202,980, entitled "Method for a Dual
Credit Card System" and filed May 10, 2000, the contents of both of
which are herein incorporated by reference for all purposes.
BACKGROUND OF THE INVENTION
[0002] The invention is related to a credit card system, in
particular to the implementation of a dual credit card system
including the creation and usage of a dual credit card.
[0003] There are three types of consumer credit cards generally
available to the public. The first type of card is a bankcard such
as issued by a bank or other financial institution. Typical
examples are a VISA.RTM., MasterCard.RTM., DISCOVER.RTM. or
American Express Optima.RTM. cards. These cards allow purchase of
goods and services and charges can be paid off monthly or have a
portion paid monthly with remaining balance subject to interest.
The user may pay an annual fee as well. There are usually different
levels of these cards that range from a standard card, to a Gold
Card or Platinum Card with different annual charges and different
services. The credit provider sets a dollar limit depending upon
the credit worthiness of the cardholder. The merchant pays an
interchange fee based upon a percentage of the amount of the
individual charge.
[0004] The second type of card is a charge card such as the
American Express.RTM. series of cards. These cards allow the user
to charge purchases and services to the account. The customer is
expected to pay the balance in full monthly. There is usually no
interest charged. The limit on purchases is not usually geared to
any set amount but based upon the users usage history. There is an
annual fee paid by the cardholder and the merchant pays a fee
similar to the interchange fee based on the level of purchase. The
American Express fee paid by the merchant is usually higher than
the typical bankcard interchange fee.
[0005] The third type of card is the "private label" credit card. A
private label credit card is issued by or on behalf of, a merchant
such as Wal-Mart, Sears, or Brooks Brothers (some issued and
serviced by the merchant, some issued and serviced by a financial
institution). The financial transaction works very similar to a
bankcard. The private label credit card's use is usually limited to
the merchant issuing/sponsoring the credit card. The private label
card user may pay the monthly charges or partially pay the balance
and pay interest on the unpaid balance as with a bankcard. The
merchant pays the financial institution a fee similar to the
interchange fee of a bankcard. This fee is usually lower than the
interchange fee with a bankcard. There are some retailers who issue
and service their own private label card. Then there are companies
like GE Capital who issue cards that are private labeled in the
name of a retailer.
[0006] Consumers like the convenience of credit cards and like to
take advantage of the services available from the various credit
card services. However they find themselves having too many credit
cards. An advantage of the private label credit card is the
availability of special promotional financing offers (such as "no
interest for x months" promotions) and merchandise information from
the issuer or associated merchant of the private label credit card.
The primary advantage of the bankcard is the almost universal
acceptance world wide of a VISA.RTM. card, MasterCard.RTM., or
DISCOVER.RTM. card. These cards also typically have lower interest
rates.
[0007] The merchants prefer that their customers use their private
label credit card so that the merchant can use the monthly mailings
as a vehicle of developing customer loyalty through special offers
and other merchandising efforts. The merchants also prefer not to
pay the higher interchange fees associated with generally available
bankcards or the American Express card. The merchants also like the
idea of a dedicated credit line for use in their retail store.
However, many customers are reluctant to carry any more plastic in
their wallets than absolutely necessary.
[0008] Therefore there is a need for a "dual credit card" that
provides the merchant and consumers of the bankcard and the private
label credit card.
BRIEF SUMMARY OF THE INVENTION
[0009] The dual credit card system is in two parts: a) the creation
of a dual credit card and b) the usage of a dual credit card. The
creation begins with the receipt of an application by the merchant
for a dual credit card. The issuing organization determines the
interest rate and the credit line and issues the dual credit card
to applicant. This is a combined private label and bankcard product
with one interest rate and one credit line. That credit line will
have a portion which is available only at the merchant's location.
The issuer will determine that single credit line and the interest
rate.
[0010] The user may make a purchase with the dual credit card at
either a private label merchant location or at a location accepting
the bankcard. Either location may be an Internet site or a physical
location. For the purposes of this application a location includes
physical locations as well as an Internet sites. When a purchase is
made at a merchant location, the processing of the merchant
location dual credit card purchase is done via a private-label
processing channel. The private-label channel interchange fee is
paid as part of this process. The private label back office
operation processes the merchant location purchase as a private
label purchase and then feeds the transaction to the bankcard
issuer or subsequent processor. The transaction is then
incorporated into the bankcard balance and statement.
[0011] If the user uses the dual credit card at a non-merchant
location, the purchase may be processed through the VISA/MasterCard
network. The network interchange fee is paid as part of this
process. The cooperating bankcard back office operation process the
non-merchant purchase as a bankcard purchase. A key element of this
dual card process is the use of a bankcard facility for both
bankcard purchases and private label services.
[0012] Since the bankcard back office operation is processing both
private-label purchases and bankcard purchases for the dual card
user, cardholder statements may include merchant promotion material
as well as normal operational customer service matters for both the
merchant channel as well as the bankcard channel. The customer
service functions may include normal customer service matters as
well as collections and settlement issues.
[0013] These and other features and advantages of the present
invention will be apparent from the following brief description of
the drawings, detailed description, and appended claims and
drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0014] The invention will be further described in connection with
the accompanying drawings, which are meant to be exemplary, not
limiting, and wherein:
[0015] FIG. 1 illustrates the flow diagram of a dual credit card
acquisition; and
[0016] FIG. 2 illustrates the flow diagram of dual credit card
usage.
DETAILED DESCRIPTION OF THE INVENTION
[0017] FIG. 1 illustrates the flow diagram of a customer's
acquisition of a dual credit card 10. A prospective credit card
customer applies for the dual credit card 12 at a merchant
issuing/sponsoring a private label credit card. The dual card will
be a bankcard branded with the merchant's name and will appear like
a bankcard such as (VISA.RTM., MasterCard.RTM., DISCOVER.RTM. or
other "general purpose" credit cards). The applicant provides
personal, credit and employment information to the dual credit card
issuer. Based upon the information supplied, the financial
institution issuing the bankcard assigns a credit limit and/or an
interest rate 14 and issues the credit card 16 to the applicant. A
key element is that the dual credit card issuer is a cooperating
financial institution that is issuing the dual credit card as a
bankcard for non-merchant sales and a private label credit card for
in-merchant sales.
[0018] FIG. 2 illustrates the flow diagram of the consumer use of
the dual credit card 20. The user goes to the private label
merchant physical location, catalog or Internet site to purchase
goods or services and uses the dual credit card for payment 22. The
merchant uses an in-store reader to communicate the card number,
the merchant number and the level of purchase to the private label
processing operation 24. The merchant credit card system is able to
determine from the BIN number, a part of the credit card account
number, that the purchase using the dual credit card should be
processed though the private label system rather than the VISA/MC
network. If the system detects a non-merchant bankcard, the
purchase will be processed through the VISA/MC network.
[0019] If the purchase using the dual credit card is within the
card users credit limit, the purchase is processed through the
private label processing operation 24 including paying a private
label interchange fee. The private label purchase is paid to the
merchant, less the discount fee 26 and 28 by the private label
processing operation 24.
[0020] The private label purchase charge is sent on to a
cooperating bankcard back office operation 36 for further
processing including cardholder statements and normal customer
service, collections and settlement matters. The cardholder
statements 40 are sent to the cardholder on a monthly basis.
[0021] FIG. 2 also illustrates the flow diagram of the consumer use
of the dual credit card as a bankcard. The user goes to a
non-private label merchant to purchase goods or services and uses
the dual credit card for payment 30. The bankcard merchant uses an
in-store reader to communicate the card number, the merchant number
and the level of purchase to the bankcard network, such as VISA/MC
36. The bankcard merchant credit card system is able to determine
that the purchase using the dual credit card should be processed
though the VISA/MC network.
[0022] If the purchase using the dual credit card is within the
card users bankcard credit limit, the purchase is processed through
the bankcard network, such as VISA/MC network including paying a
network interchange fee 34. The bankcard purchase is paid to the
non-private label merchant 32 less the interchange fee 34 by the
bankcard network 36.
[0023] The bankcard purchase charge is sent on to a cooperating
bankcard back office operation 38 for further processing including
cardholder statements and normal customer service, collections and
settlement matters. The cardholder statements 40 are sent to the
cardholder on a monthly basis.
[0024] The advantages of such a dual credit card system for the
private label merchant is that the customers have one card that can
be used in two ways. One way as a private label credit card that
provides the private label credit card merchant with a means to
provide marketing information to his customers and to ensure that a
portion of the credit line is protected for in store purchases. The
second way is the use of a recognized brand name card with a
potential for lower credit card interchange than a standard
bankcard or charge card. The promotional capabilities of a dual
credit card are useful to both the merchant and the consumer.
[0025] The user of the dual credit card has the advantages of both
a nationally recognized bankcard and a private label card. A
recognized disadvantage of bankcards and charge cards is that, a
consumer using such cards is not recognized by the merchant as a
customer of that merchant. Many such customers enjoy getting
catalogs and other mailing information from the merchants that they
purchase from on a regular basis. Another advantage of the dual
credit card is that the consumer has one less credit card to carry
and/or keep track of.
[0026] The present invention can be embodied in the form of
computer-implemented processes and apparatuses for practicing those
processes. The present invention can also be embodied in the form
of computer program code containing instructions, embodied in
tangible media, such as floppy diskettes, CD-ROMs, hard drives, or
any other computer-readable storage medium, wherein, when the
computer program code is loaded into and executed by a computer,
the computer becomes an apparatus for practicing the invention. The
present invention can also be embodied in the form of a computer
program code, for example, whether stored in a storage medium,
loaded into and/or executed by a computer, or transmitted over some
transmission medium, such as over electrical wiring or cabling,
through fiber optics, or via electromagnetic radiation, wherein,
when the computer program code is loaded into and executed by a
computer, the computer becomes an apparatus for practicing the
invention. When the implementation on a general-purpose
microprocessor, the computer program code segments configure the
microprocessor to create specific logic circuits. At each step of
the process there is the involvement of a plurality of computers
and a computer systems.
[0027] While the invention has been described with reference to
preferred embodiments, it will be understood by those skilled in
the art that various changes may be made and equivalents may be
substituted for elements thereof without departing from the scope
of the invention. In addition, many modifications may be made to
adapt a particular situation or material to the teachings of the
invention without departing from the essential scope thereof.
Therefore, it is intended that the invention not be limited to the
particular embodiments disclosed as the best mode contemplated for
this invention, but that the invention will include all embodiments
falling within the scope of the appended claims.
* * * * *