U.S. patent application number 12/468637 was filed with the patent office on 2009-09-10 for method and apparatus for processing a charge applied to a financial account.
Invention is credited to James A. Jorasch, Magdalena Mik, Daniel E. Tedesco, Andrew S. Van Luchene, Jay S. Walker.
Application Number | 20090228381 12/468637 |
Document ID | / |
Family ID | 22269469 |
Filed Date | 2009-09-10 |
United States Patent
Application |
20090228381 |
Kind Code |
A1 |
Mik; Magdalena ; et
al. |
September 10, 2009 |
METHOD AND APPARATUS FOR PROCESSING A CHARGE APPLIED TO A FINANCIAL
ACCOUNT
Abstract
In one embodiment, a billing server receives charge data from a
card authorization terminal. The charge data indicates a
transaction amount, such as a purchase price, and a first financial
account, such as a credit card account. The billing server
determines a second financial account that corresponds to the first
financial account. For example, the second financial account may be
the financial account of an insurance company or other reimbursing
party. The billing server also determines a reimbursement amount
that corresponds to the first financial account. The second
financial account is charged the reimbursement amount. Thus, a
portion or all of the transaction amount is paid by a reimbursing
party. The second financial account is only charged if a
reimbursement rule is satisfied. For example, only purchases made
at certain types of merchants may be reimbursed. In addition, the
billing server may first request approval before charging the
second financial account.
Inventors: |
Mik; Magdalena;
(Wallingford, CT) ; Walker; Jay S.; (Ridgefield,
CT) ; Tedesco; Daniel E.; (New Canaan, CT) ;
Van Luchene; Andrew S.; (Norwalk, CT) ; Jorasch;
James A.; (Stamford, CT) |
Correspondence
Address: |
Dean Alderucci;Walker Digital Corporation
Five High Ridge Park
Stamford
CT
06905-1326
US
|
Family ID: |
22269469 |
Appl. No.: |
12/468637 |
Filed: |
May 19, 2009 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
09098481 |
Jun 16, 1998 |
7536349 |
|
|
12468637 |
|
|
|
|
Current U.S.
Class: |
705/34 ;
705/40 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 10/10 20130101; G06Q 20/04 20130101; G06Q 20/102 20130101;
G06Q 20/14 20130101; G06Q 30/04 20130101; G06Q 40/08 20130101 |
Class at
Publication: |
705/34 ;
705/40 |
International
Class: |
G06Q 20/00 20060101
G06Q020/00; G06Q 30/00 20060101 G06Q030/00; G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A method for processing a charge, the method comprising:
receiving, via a card authorization terminal, charge data that
indicates a transaction amount, a first merchant, and a financial
account of an account holder; determining, by a billing server in
communication with the card authorization terminal, a financial
account of a reimbursing party that corresponds to the financial
account of the account holder; determining a reimbursement amount
that corresponds to the financial account of the account holder,
wherein the step of determining the reimbursement amount comprises:
determining a reimbursement rule that corresponds to the charge
data, wherein the reimbursement rule specifies a second merchant,
and determining whether the first merchant corresponds to the
second merchant, thereby determining if the charge data satisfies
the reimbursement rule; applying, by the billing server, to the
financial account of the account holder a first charge amount that
is based on a difference between the transaction amount and the
reimbursement amount, if the charge data satisfies the
reimbursement rule; and applying to the financial account of the
reimbursing party a second charge amount based on the reimbursement
amount, if the charge data satisfies the reimbursement rule.
2. The method of claim 1, in which the charge data indicates a
transaction date; and further comprising: applying to the financial
account of the account holder the second charge amount after a
predetermined time after the transaction date.
3. The method of claim 2, in which the step of applying to the
financial account of the account holder the second charge amount is
performed if the second charge amount has not been paid before a
predetermined time.
4. The method of claim 1, in which the charge data further includes
a signal that indicates approval to charge at least a portion of
the transaction amount to the financial account.
5. A method for processing a charge, the method comprising:
receiving, via a card authorization terminal, charge data that
indicates a first merchant and financial account of an account
holder; determining, by a billing server in communication with the
card authorization terminal, a financial account of a reimbursing
party that corresponds to the financial account of the account
holder; determining a reimbursement rule that corresponds to the
charge data, wherein the reimbursement rule specifies a second
merchant; determining whether the first merchant corresponds to the
second merchant, thereby determining whether the charge data
satisfies the reimbursement rule; and applying, by the billing
server, to the financial account of the reimbursing party an amount
based on the charge data if the charge data satisfies the
reimbursement rule.
6. The method of claim 5, in which the charge data further includes
a signal that indicates approval to charge the financial
account.
7. The method of claim 5, in which the charge data indicates a
transaction date; and further comprising: applying to the financial
account of the account holder the amount based on the charge data
after a predetermined time.
8. The method of claim 7, in which the step of applying to the
financial account of the account holder the amount based on the
charge data is performed if the second charge amount has not been
paid before a predetermined time.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent
application Ser. No. 09/098,481 filed Jun. 16, 1998 and entitled
METHOD AND APPARATUS FOR PROCESSING A CHARGE APPLIED TO A FINANCIAL
ACCOUNT.
[0002] This application is also related to the U.S. patent
application Ser. No. 08/883,308 filed Jun. 26, 1997 and issued as
U.S. Pat. No. 5,945,653 on Aug. 31, 1999 and entitled SYSTEM AND
METHOD FOR ESTABLISHING AND EXECUTING FUNCTIONS TO AFFECT CREDIT
CARD ACCOUNTS AND TRANSACTIONS and U.S. patent application Ser. No.
09/036,131 filed Mar. 6, 1998 and issued as U.S. Pat. No. 5,999,596
on Dec. 7, 1999 and entitled METHOD AND SYSTEM FOR CONTROLLING
AUTHORIZATION OF CREDIT CARD TRANSACTIONS.
[0003] Each of the above-referenced applications is incorporated by
reference herein in its entirety.
FIELD OF THE INVENTION
[0004] The present invention relates to methods and apparatus for
processing charges applied to financial accounts.
BACKGROUND OF THE INVENTION
[0005] Many people are reimbursed by third parties for their
purchases. In many cases, such reimbursement arises from a business
relation. For example, an employer may reimburse an employee's
purchases that are business related. Similarly, an insurer may
reimburse all or some portion of an insured party's medical
expenses.
[0006] The reimbursing party typically requires documentation to
verify (i) that the stated amount was actually spent on the
purchase, and (ii) that the purchase is of the type that the
reimbursing party is willing to pay for. A party to be reimbursed
may submit receipts that support his request for reimbursement. The
reimbursing party in turn evaluates the submitted documentation,
and approves or rejects the request for reimbursement.
[0007] Many people use "card-based" financial accounts, such as
credit card accounts and debit card accounts, to pay for their
purchases. Such card-based financial accounts can provide a secure,
flexible and convenient way to pay for many purchases. Parties that
use such card-based financial accounts typically receive paper
"charge slips" for each transaction (e.g. a purchase or a refund),
as well as monthly billing statements documenting transactions made
with the card-based financial account. Accordingly, purchases made
with card-based financial accounts can readily support requests for
reimbursement.
[0008] Unfortunately, known processes for evaluating and approving
requests for reimbursement suffer substantial shortcomings. Most
reimbursing parties are not able or willing to rapidly process
documentation supporting requests for reimbursement. Data entry,
bureaucratic procedures and manual evaluation of documentation
delay the eventual approval or rejection of a request for
reimbursement. In addition, data entry may introduce errors, and
documentation may be misplaced by either the reimbursing party or
the party to be reimbursed. Consequently, the party to be
reimbursed may wait long periods of time after a purchase before
receiving the corresponding reimbursement. In addition, the
reimbursing party often incurs substantial costs in processing
requests for reimbursement.
[0009] Further shortcomings are particular to parties that use
card-based financial accounts. Charge slips and billing statements
typically identify the financial account, for example, by credit
card account number. Thus, submitting such documentation reveals
the financial account to many parties involved in reimbursement
approval, and the financial account may therefor become more
susceptible to fraudulent use. Blocking the credit card account
number from copies of such documentation can be time-consuming and
error-fraught for the party to be reimbursed.
[0010] In addition, charges to a card-based financial account may
be increased by interest and other penalties if the reimbursing
party does not provide reimbursement in a timely manner. Thus, the
party to be reimbursed may be forced to pay amounts for which he
may never be reimbursed. In addition, even if reimbursement is
forthcoming, a card holder may have a large amount of charges to be
reimbursed. Consequently, he may be close to his balance limit and
unable to apply further charges to his account.
[0011] To support reimbursement, many employers provide employees
with "corporate" credit cards. Corporate credit cards, issued by
banks to employers, enable employees to conduct business at the
employer's expense. For example, a corporate credit card may be
used to purchase entertainment for clients, supplies and travel
services. However, employees may abuse the spending privileges
afforded by corporate credit cards. Consequently, many employers
must thoroughly audit billing statements to ensure the proper use
of corporate credit cards. As described above, processing the
documentation that supports a request for reimbursement can be
burdensome, time consuming and inaccurate. In addition, some types
of corporate cards impose liability for all charges on the
reimbursing party, which is often undesirable.
[0012] To attempt to limit corporate credit card abuse, some
corporate credit cards enable the employer to prevent certain types
of purchases. For example, First Bank's "Corporate Relocation Card"
allows employers to give their employees corporate credit cards to
use when relocating. Employers can prevent use of the corporate
credit card at certain merchant types, such as bars and casinos.
Typically, the issuing bank stores a list of any SIC codes
(Standard Industrial Classification codes) or MCCs (Merchant
Category Codes) that have been selected to be disallowed by the
employer. When the bank receives a request to authorize a charge on
the employee's corporate credit card, the bank verifies that the
corresponding merchant code is not disallowed. Unfortunately,
preventing use of the corporate credit card at certain merchant
types does not prevent the employee from overspending at an allowed
merchant.
[0013] Some accounting software is designed to make auditing
corporate credit card accounts more accurate or efficient. For
example, Visa provides InfoSpan 2.0 Intelligent Information
Management software for use in managing "Visa Corporate" and "Visa
Purchasing" accounts. The software is intended to enable employers
to "streamline accounting processes" and "reduce administrative
expenses," as well as "ensure card spending complies with company
policy."
[0014] While these products may facilitate the management of
corporate credit card accounts, reimbursement will typically remain
a lengthy process, and abuse of reimbursement privileges can
continue with known systems and methods for reimbursement. It would
be advantageous to make the reimbursement process more efficient
and convenient for both reimbursing parties and parties to be
reimbursed.
SUMMARY OF THE INVENTION
[0015] It is an object of the present invention to make the
reimbursement process more efficient and convenient for both
reimbursing parties and parties to be reimbursed.
[0016] In accordance with the present invention, a billing server
receives charge data from a card authorization terminal. The charge
data indicates a transaction amount, such as a purchase price, and
a first financial account, such as a credit card account. The
billing server determines a second financial account that
corresponds to the first financial account. For example, the second
financial account may be the financial account of an insurance
company or other reimbursing party. The billing server also
determines a reimbursement amount that corresponds to the first
financial account, and the second financial account is charged the
reimbursement amount. Thus, a portion or all of the transaction
amount is paid by a reimbursing party.
[0017] The second financial account is charged only if a
reimbursement rule is satisfied. For example, only purchases made
at certain types of merchants may be reimbursed. In addition, the
billing server may first request approval (e.g., from the
reimbursing party) before charging the second financial
account.
BRIEF DESCRIPTION OF THE DRAWINGS
[0018] FIG. 1 is a schematic illustration of an embodiment of a
reimbursement system provided in accordance with the present
invention.
[0019] FIG. 2 is a schematic illustration of a billing server of
the reimbursement system of FIG. 1.
[0020] FIG. 3 is a schematic illustration of an account holder
database of the billing server of FIG. 2.
[0021] FIG. 4 is a schematic illustration of a reimbursing party
database of the billing server of FIG. 2.
[0022] FIG. 5 is a schematic illustration of an exemplary record of
a transaction database of the billing server of FIG. 2.
[0023] FIG. 6 is a schematic illustration of an exemplary record of
a reimbursement rules database of the billing server of FIG. 2.
[0024] FIG. 7 is a schematic illustration of an exemplary record of
a billing statement database of the billing server of FIG. 2.
[0025] FIG. 8 is a flowchart illustrating a method for processing a
charge applied to a financial account.
[0026] FIG. 9 is a schematic illustration of another embodiment of
a reimbursement system provided in accordance with the present
invention.
[0027] FIG. 10 is a schematic illustration of another embodiment of
a record of the reimbursement rules database of the billing server
of FIG. 2.
[0028] FIGS. 11A and 11B are a flowchart illustrating another
method for processing a charge applied to a financial account.
[0029] FIG. 12 is a schematic illustration of an exemplary record
of another embodiment of the billing statement database of the
billing server of FIG. 2.
[0030] FIG. 13 is a plan view of an exemplary billing statement
printed in accordance with the present invention.
[0031] FIG. 14 is a plan view of another exemplary billing
statement printed in accordance with the present invention.
[0032] FIG. 15 is a schematic illustration of an account alias
database.
[0033] FIG. 16 is a flowchart illustrating another method for
processing a charge applied to a financial account.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0034] A method and apparatus are provided whereby a portion or all
of a transaction amount is charged to the account of a reimbursing
party. Compared to known methods and apparatus for reimbursement,
the present invention makes the reimbursement process more
efficient and convenient for both reimbursing parties and parties
to be reimbursed. Such reimbursement may be driven by a business
relation, such as when an employer reimburses an employee's
purchases, or when an insurer reimburses all or some portion of an
insured party's medical expenses. Alternatively, such reimbursement
may be driven by generosity or altruism, such as when a relative
pays for a gift, or when an employee's donation is matched
according to an employer gift-matching program.
[0035] Although the term reimbursement and other variations thereof
is used herein, those skilled in the art will understand that such
terms are convenient labels that do not necessarily imply that
there is compensation for money spent or losses incurred by
another.
[0036] Referring to FIG. 1, in one embodiment a reimbursement
system 10 includes a card authorization terminal 12 that is in
communication with a billing server 14. The card authorization
terminal ("CAT") 12, such as those manufactured by VeriFone, Inc.,
is a device for reading information stored on cards, such as credit
cards having magnetically-encoded strips, and transmitting that
information to the billing server 14. Information read from cards
typically includes an identifier that identifies a financial
account, such as a credit card account identifier read from the
magnetically-encoded strip, and a transaction amount, such as a
purchase price. The CAT 12 is used with such cards in adjusting the
balance of the corresponding financial account of the cards.
[0037] In a credit card account, the balance is typically an amount
of debt, with the balance increasing and decreasing as amounts of
debits and credits respectively are applied to the credit card
account. In a debit card account, the balance is typically an
amount of funds available, and the balance can increase and
decrease as amounts of credits and debits respectively are applied
to the debit card account. For example, the card may be used during
a transaction to apply an amount of debit to the financial account,
such as when a purchase is paid for using the financial account.
The card may also be used during a transaction to apply an amount
of credit to the financial account, such as when merchandise is
returned and a refund for the merchandise is applied to the
financial account. As used herein, "applying a charge amount" and
"charging" each mean applying a debit amount to a financial
account.
[0038] The billing server 14 is a computing device that is
controlled by or on behalf of a billing party, which is typically
an issuer of the financial account. The billing server 14 receives
the information transmitted by the CAT 12, and may adjust the
indicated financial account by the indicated amount. The billing
server 14 in turn transmits to the CAT 12 an indication that the
financial account has been adjusted. For example, during a
transaction a typical card authorization terminal may receive an
authorization code for the transaction, in which the authorization
code indicates that a requested debit amount has been applied to
the financial account and therefor the transaction has been
authorized.
[0039] Referring to FIG. 2, the billing server 14 comprises a
processor 20, such as one or more conventional microprocessors. The
processor 20 is in communication with a data storage device 22,
such as an appropriate combination of magnetic, optical and/or
semiconductor memory. The processor 20 and the storage device 22
may each be (i) located entirely within a single computer or other
computing device; (ii) connected to each other by a remote
communication medium, such as a serial port cable, telephone line
or radio frequency transceiver; or (iii) a combination thereof. For
example, the billing server 14 may comprise one or more computers
that are connected to a remote server computer for maintaining
databases.
[0040] An input device 24 and a printer 26 are each in
communication with the processor 20. The input device 24 may
comprise a keypad for transmitting input signals, such as signals
representative of operator commands, to the processor 20. The
printer 26 is for registering indicia on paper or other material,
thereby printing billing statements as commanded by the processor
20. Many types of input devices and printers are known to those
skilled in the art, and need not be described in detail herein.
[0041] The storage device 22 stores a program 28 for controlling
the processor 20. The processor 20 performs instructions of the
program 28, and thereby operates in accordance with the present
invention, and particularly in accordance with the methods
described in detail herein. The program 28 furthermore includes
program elements that may be necessary, such as an operating system
and "device drivers" for allowing the processor 20 to interface
with computer peripheral devices, such as the input device 24 and
the printer 26. Appropriate device drivers and other necessary
program elements are known to those skilled in the art, and need
not be described in detail herein.
[0042] The storage device 22 also stores (i) an account holder
database 30; (ii) a reimbursing party database 32; (iii) a
transaction database 34; (iv) a reimbursement rules database 36;
and (v) a billing statement database 38. The databases 30, 32, 34,
36 and 38 are described in detail below and depicted with exemplary
entries in the accompanying figures. As will be understood by those
skilled in the art, the schematic illustrations of, and
accompanying descriptions of the databases presented herein are
exemplary arrangements for stored representations of information. A
number of other arrangements may be employed besides the tables
shown. In addition, information which is illustrated as being
stored in one database may be stored in one or more other
databases. Similarly, the illustrated entries represent exemplary
information, but those skilled in the art will understand that the
number and content of the entries can be different from those
illustrated herein.
[0043] In the description below, financial accounts which are
credit card accounts are described and used in conjunction with the
present invention. Those skilled in the art will understand that
the present invention is equally applicable to other types of
financial accounts, such as debit card accounts or stored value
cards such as "smart cards".
[0044] Referring to FIG. 3, a table 50 illustrates an embodiment of
the account holder database 30 (FIG. 2). The table 50 includes
entries 52, 54, 56, 58, 60 and 62, each of which describes a party
to be reimbursed that has a financial account with the billing
party. Such a party to be reimbursed is also referred to herein as
an "account holder". It will be understood by those skilled in the
art that the table 50 may include any number of entries. Each of
the entries 52, 54, 56, 58, 60 and 62 defines (i) an account
identifier 64 for uniquely indicating the financial account; (ii)
an account holder name 66; (iii) an account holder billing address
68; (iv) a maximum balance 70; and (v) an available balance 72. The
maximum balance 70 is the maximum balance allowed on the financial
account at any time. Similarly, the available balance 72 is the
difference between the maximum balance and the current balance of
the financial account. For example, referring to the entry 54, the
financial account identified by "1111-1122-2222-2222" has a $7,000
maximum balance and a $3,000 available balance. Accordingly, the
current balance of the financial account identified by
"1111-1122-2222-2222" is $4,000 ($7,000-$3,000=$4,000). As will be
apparent to those skilled in the art, further information, such as
account holder telephone numbers, may be stored for each account
holder.
[0045] Referring to FIG. 4, a table 80 illustrates an embodiment of
the reimbursing party database 32 (FIG. 2). The table 80 includes
entries 82, 84, 86 and 88, each of which describes a reimbursing
party (a party that has agreed to pay the billing party for at
least portions of certain transactions initiated by a party to be
reimbursed). It will be understood by those skilled in the art that
the table 80 may include any number of entries. Each of the entries
82, 84, 86 and 88 defines (i) a reimbursing party identifier 90 for
uniquely indicating the reimbursing party; (ii) a reimbursing party
descriptor 92 for describing the name of the reimbursing party, or
other information identifying the reimbursing party; and (iii) a
total amount due 94 which indicates the total amount that the
reimbursing party has agreed to pay the billing party but has not
yet paid. A reimbursing party may have agreed to pay for many
transactions initiated by a party to be reimbursed. Similarly, a
reimbursing party may have agreed to pay for transactions initiated
by many parties to be reimbursed. Accordingly, the total amount due
94 may be a sum of several payments that are due. As will be
apparent to those skilled in the art, further information, such as
a detailed breakdown of the amounts the reimbursing party has
agreed to pay and the account identifiers of the corresponding
parties to be reimbursed, may be stored for each reimbursing
party.
[0046] Each reimbursing party has agreed to pay the billing party
for at least portions of certain charges initiated by a party to be
reimbursed. The billing party maintains a record of how much each
reimbursing party owes the billing party. The billing party may
also periodically send a bill to each reimbursing party or
otherwise notify each reimbursing party how much is owed.
Accordingly, the billing party maintains a financial account for
each reimbursing party. Such a financial account of the reimbursing
party may be uniquely identified by the reimbursing party
identifier 90, or alternatively by another identifier. The
financial account of the reimbursing party may be a credit card
account or debit card account with the billing party. However, the
financial account of the reimbursing party need not be a card-based
financial account. On the contrary, the financial account of the
reimbursing party need not be an account which affords the
reimbursing party with any spending privileges. The financial
account of the reimbursing party may simply be a record of how much
is owed to the billing party, and may be a tool for auditing only.
The financial account of the reimbursing party has a balance
indicating the amount owed, and the balance can increase and
decrease as amounts of debits and credits respectively are applied
to the financial account.
[0047] Referring to FIG. 5, a table 100 illustrates a record
included in an embodiment of the transaction database 34 (FIG. 2).
The transaction database 34 will typically include a plurality of
records, each defining the transactions in which a particular
financial account of an account holder was used. The table 100
includes an account identifier 102 that uniquely identifies the
financial account, and which corresponds to an account identifier
of the account holder database 30 (FIG. 2). In the exemplary record
depicted in FIG. 5, the account identifier is
"1111-1111-1111-1111", which corresponds to the account identifier
of the entry 52 (FIG. 3) of the account holder database 30.
[0048] The table 100 also includes entries 104, 106 and 108, each
of which describes a transaction in which the financial account was
used. It will be understood by those skilled in the art that the
table 100 may include any number of entries. Each of the entries
104, 106 and 108 defines (i) a transaction identifier 110 that
uniquely indicates the transaction; (ii) a merchant identifier 112
that indicates the merchant that participated in the transaction
with the account holder; (iii) a POS identifier 114 that indicates
the point-of-sale terminal (if any) used in the transaction; (iv) a
transaction date 116 indicating when the transaction occurred; (v)
a transaction description 118 that specifies various information
regarding the transaction, such as the SIC code of the merchant
and/or the name of the merchant; and (vi) the transaction amount
120. As will be apparent to those skilled in the art, further
information may be stored for each transaction.
[0049] Referring to FIG. 6, a table 130 illustrates a record
included in an embodiment of the reimbursement rules database 36
(FIG. 2). The reimbursement rules database 36 will typically
include a plurality of records. Each record defines the
reimbursement rules for a financial account of an account holder.
The table 130 includes an account identifier 132 that uniquely
identifies the financial account, and which corresponds to an
account identifier of the account holder database 30 (FIG. 2). In
the exemplary record depicted in FIG. 6, the account identifier is
"1111-1111-1111-1111", which corresponds to the account identifier
of the entry 52 (FIG. 3) of the account holder database 30.
[0050] The table 130 also includes entries 134, 136, 138 and 140,
each of which describes a reimbursement rule. It will be understood
by those skilled in the art that the table 130 may include any
number of entries. Each of the entries 134, 136, 138 and 140
defines (i) a reimbursing party identifier 142 that uniquely
indicates a reimbursing party, and which corresponds to a
reimbursing party identifier 90 (FIG. 4) of the reimbursing party
database 32; (ii) a reimbursement condition 144; (iii) a
reimbursement amount 146; (iv) a billing destination 148 indicating
where a bill is to be sent; (v) a time to reimburse 150; (vi) an
account alias 152; and (vii) an allowed frequency of reimbursable
transactions 154. As will be apparent to those skilled in the art,
further information may be stored for each reimbursement rule.
[0051] Each reimbursement rule indicates how a transaction amount
is apportioned among a plurality of financial accounts, such as
among an account of a reimbursing party and an account of a party
to be reimbursed. In the above-described embodiment, each
reimbursement rule specifies a reimbursement amount, which is at
least a portion of an account holder's transaction amount to be
paid by the reimbursing party if the transaction satisfies the
reimbursement condition. Some representative conditions are
illustrated in FIG. 6 and described below.
[0052] One reimbursement condition may be that a particular
merchant participates in the transaction. For example, the entry
134 has a condition that is satisfied if the merchant that
participated in the transaction is "Joe's Office Supplies". As
described above, the merchant may be indicated by the merchant
identifier 112 (FIG. 5) of the transaction database 34. Thus, it
would be determined whether the merchant identifier from indicated
reimbursement rule of the reimbursement rules database 36
corresponds to the merchant identifier of the transaction database
34.
[0053] Another reimbursement condition may be that the merchant
participating in the transaction belongs to a particular category,
such as may be indicated by an SIC code. For example, the entry 136
has a condition that is satisfied if the merchant that participated
in the transaction is a restaurant.
[0054] Another reimbursement condition may be that the transaction
indicate that a certain item or type of item is purchased. For
example, the CAT 12 (FIG. 1) may use the MasterCard Purchasing Card
Level III protocol to transmit data identifying the items purchased
to the billing server 14 (FIG. 1).
[0055] Another reimbursement condition may be that the transaction
amount is (i) within a predetermined range, (ii) less than a
predetermined amount, or (iii) equal to a predetermined amount. For
example, one reimbursement condition may be that the transaction
amount is less than $100.
[0056] Those skilled in the art will realize that a condition may
comprise two or more conditions that are connected by Boolean
operations, such as "AND", "OR" and "NOT". For example, a condition
may be satisfied if the merchant that participated in the
transaction is "Joe's Office Supplies" and the transaction amount
is less than $100.
[0057] Some reimbursement rules may specify that any transaction
satisfies the reimbursement condition. Accordingly, all
transactions using the corresponding financial account would be
reimbursed if no other restrictions are imposed. For example, the
entry 140 has a condition that is always satisfied.
[0058] The reimbursement amount may be a specified amount (e.g.
$10), a variable amount (e.g. the transaction amount), or a fixed
portion (e.g. 10% of the transaction amount). The reimbursement
amount may further be subject to a specified maximum amount, such
as "transaction amount, up to $100" or "10% of the transaction
amount, up to $30". The reimbursement amount may be based on past
transactions. For example, the reimbursement amount may be 90% of
the portion of the transactions of the year that exceed $1000. In
some embodiments, the reimbursement amount may be determined by a
specified "function code", as disclosed in commonly-owned U.S.
application Ser. No. 08/883,308, entitled "SYSTEM AND METHOD FOR
ESTABLISHING AND EXECUTING FUNCTIONS TO AFFECT CREDIT CARD ACCOUNTS
AND TRANSACTIONS", filed on Jun. 26, 1997, incorporated by
reference. For example, the reimbursement amount may be determined
by a function code (also known as a "POS code") which indicates a
$10 reimbursement by the reimbursing party. Such POS codes may be
advantageously used by a merchant to provide customers with
discounts. Ideally, a corresponding reimbursement condition is that
the merchant participate in the transaction. Thus, the
reimbursement amount is only provided when the customer conducts a
transaction with the merchant.
[0059] Each reimbursement rule also specifies a time within which
the reimbursing party must remit payment to the billing party. Such
a time to reimburse is typically measured from the time that a
corresponding billing statement is sent to the reimbursing party.
The time to reimburse may also be measured from the time of the
transaction. If the reimbursing party does not remit payment to the
billing party in time, then the amount that was to be paid by the
reimbursing party is typically charged to the account holder. In
such a situation, the account holder is ultimately liable for
paying debt accrued on the financial account. In other embodiments,
the account holder is not liable for paying such debt. Accordingly,
if the reimbursing party does not remit payment in time, the
billing party may take steps to collect such payment from the
reimbursing party.
[0060] The allowed frequency of reimbursable transactions 154 of a
reimbursement rule specifies how often a transaction amount may be
reimbursed according to the reimbursement rule. For example, the
entry 134 specifies that a transaction may be reimbursed according
to this reimbursement rule once only, the entry 136 specifies that
transactions may be reimbursed according to this reimbursement rule
twice per week, and the entry 138 specifies that transactions may
be reimbursed according to this reimbursement rule any number of
times without limit. The entry 140 specifies that a transaction may
be reimbursed once, and thus the specified POS code may only be
used with one transaction. Those skilled in the art will realize
that a reimbursement rule may specify that a POS code is used any
number of times.
[0061] Each reimbursement rule also specifies an account alias. As
is described in further detail below, an account alias is an
identifier that corresponds to, but is not identical to, the
account identifier 132. Such an account alias may be provided on
the billing statement that is sent to the reimbursing party,
thereby allowing the reimbursing party to identify the party to be
reimbursed without knowing his credit card account identifier.
[0062] Referring to FIG. 7, a table 160 illustrates an embodiment
of the billing statement database 38 (FIG. 2). The table 160
includes entries 162 and 164, each of which describes information
to appear on a billing statement. It will be understood by those
skilled in the art that the table 160 may include any number of
entries. Each of the entries 162 and 164 defines (i) a transaction
identifier 170 that uniquely indicates a transaction that is to
appear on a billing statement, and that corresponds to a
transaction identifier 110 (FIG. 5) of the transaction database 34;
(ii) a transaction amount 172 indicating the amount of the
transaction; (iii) a charge amount 174 which indicates a portion of
the transaction amount 172 that is applied to a financial account;
(iv) a party to charge 176 which indicates a party to pay the
charge amount 174; (v) a billing destination 178 that indicates a
destination (if any) to which the corresponding billing statement
is sent; and (vi) a payment status 180 indicating whether and/or
when a bill has been sent to the indicated party, and whether
and/or when payment for the charge amount 174 has been received by
the billing party. As will be apparent to those skilled in the art,
further information may be stored for each entry.
[0063] The party to charge 176 is an identifier that corresponds to
one of (i) the account identifier 64 (FIG. 3) of the account holder
database 30; and (ii) the reimbursing party identifier 90 (FIG. 4)
of the reimbursing party database 32. Thus, the party to charge 176
indicates an account holder or a reimbursing party. Similarly, the
billing destination 178 corresponds to one of (i) the account
holder billing address 68 (FIG. 3) of the account holder database
30; and (ii) the billing destination 148 (FIG. 6) of the
reimbursing party database 32. Thus, further information regarding
a party to charge or a billing destination may be readily
determined from databases described above.
[0064] In accordance with entries of the billing statement database
38, billing statements may be printed on the printer 26 (FIG. 2) as
appropriate. For example, if a billing destination indicates a
postal address, a billing statement may be printed and mailed to
the postal address. Billing statements may also be transmitted via
a network, such as the Internet. For example, if a billing
destination indicates an electronic mail address, a billing
statement may be generated and sent to the electronic mail
address.
[0065] Referring to FIG. 8, a process 200 performed by the billing
server 14 (FIG. 1) initiates when charge data is received (step
202) from the CAT 12 processing a transaction. The charge data
typically includes a transaction amount and an account identifier
that specifies an account holder's financial account. The charge
data may further include a merchant identifier that uniquely
identifies the merchant. Upon receiving the charge data, the
billing server 14 may generate a transaction identifier that
uniquely identifies the transaction. Alternatively, the charge data
may include a transaction identifier. The charge data and
transaction identifier are stored in the transaction database
34.
[0066] The billing server 14 then determines whether there are any
reimbursement rules corresponding to the account identifier (step
204), and thus determines whether there are any reimbursement rules
corresponding to the financial account. For example, the received
account identifier may be compared with records of the
reimbursement rules database 36 to find a record that includes the
account identifier. For example, the table 130 (FIG. 6) represents
a record that includes an account identifier
"1111-1111-1111-1111".
[0067] If there are not any reimbursement rules corresponding to
the financial account, then the account holder's financial account
is charged in a conventional manner with the transaction amount
(step 206). If there are reimbursement rules corresponding to the
financial account, then the billing server 14 determines whether
any of the reimbursement rules are satisfied (step 208). As
described above, each record of the reimbursement rules database 36
includes one or more entries. Each entry describes a reimbursement
rule and includes a reimbursement condition. A reimbursement rule
is satisfied if the corresponding reimbursement condition is
satisfied by the transaction.
[0068] If a reimbursement rule is satisfied, the reimbursing party
corresponding to that reimbursement rule is determined (step 210).
Thus, if an entry includes a reimbursement condition that is
satisfied by the transaction, then the reimbursing party is
determined from the reimbursing party identifier of the entry.
Similarly, a reimbursement amount is also determined from the
satisfied reimbursement rule (step 212).
[0069] The reimbursement amount is charged to the reimbursing party
(step 214). Charging the reimbursing party may comprise generating
an entry for insertion into the billing statement database 38 (FIG.
2). Such an inserted entry would include (i) the transaction
identifier generated by the billing server 14, (ii) the transaction
amount received in step 202, (iii) a charge amount which is the
reimbursement amount determined in step 212; (iv) the party to
charge, which is the reimbursing party; and (v) the billing
destination which is determined with reference to the billing
destination 148 (FIG. 6) of the appropriate entry in the
reimbursement rules database 36.
[0070] The difference between the transaction amount and the
reimbursement amount is likewise charged to the account holder
(step 216). Charging the account holder may comprise generating an
entry for insertion into the billing statement database 38 (FIG.
2). Such an inserted entry would include (i) the transaction
identifier generated by the billing server, (ii) the transaction
amount received in step 202, (iii) a charge amount which is the
difference between the transaction amount and the reimbursement
amount determined in step 212; (iv) the party to charge, which is
the account holder and may be identified by the account identifier
received in step 202; and (v) the billing destination which is
determined with reference to the account holder billing address 68
(FIG. 3) of the appropriate entry in the account holder database
30.
[0071] In one embodiment, the available balance of the account
holder may be compared with the difference between the transaction
amount and the reimbursement amount. If the account holder does not
have a sufficient available balance, then the charge would be
denied.
[0072] For example, referring again to FIG. 5, the entry 106 of the
transaction database 34 defines the transaction identified by the
transaction identifier "123456", and also indicates that the
transaction amount is $150. Further, the SIC code of the merchant
indicates that the merchant is a "medical care provider". Referring
again to FIG. 6, shown therein are the reimbursement rules
applicable to the appropriate account holder. Particularly, the
entry 138 indicates that 95% of the transaction amount is to be
reimbursed by the reimbursing party "R730" if the merchant
participating in the transaction is a medical care provider. Since
the transaction "123456" identified above satisfies this
reimbursement condition, reimbursement is to be made and thus the
reimbursing party "R730" is to be charged accordingly. Referring
again to FIG. 7, the entries 162 and 164 of the billing statement
database 38 correspond to the transaction "123456" which has
resulted in charges to two financial accounts. The transaction
amount $150 is reflected in each of the entries 162 and 164. The
charge amount for the party identified by "R730" is $142.50 (95% of
the transaction amount). The charge amount for the party identified
by "1111-1111-1111-1111" is $7.50 ($150.00-$142.50).
[0073] The above-described process 200 may be performed during the
time that a transaction is initiated and concludes at the CAT 12.
Alternatively, steps of the process 200 may be performed some time
after the transaction has concluded. For example, the billing
server 14 may determine, on a monthly basis, whether any
transaction described in the transaction database 34 (FIG. 2)
should be reimbursed, as described above. If so, the appropriate
reimbursing parties would be charged accordingly.
[0074] In the description above, a plurality of financial accounts
could each be charged portions of a transaction amount based on
whether the transaction satisfied rules stored by the billing
server 14 (FIGS. 1 and 2). In other embodiments, a plurality of
financial accounts could each be charged portions of a transaction
amount based on whether authorization is received from the
reimbursing party or another party. As will be apparent to those
skilled in the art, the reimbursement rules database may define
both reimbursement rules that do not require approval, and
reimbursement rules that do.
[0075] Referring to FIG. 9, in another embodiment a reimbursement
system 228 includes the billing server 14 that is in communication
with the card authorization terminal 12 and with a reimbursing
party device 230. The reimbursing party device 230 may be a
computer, telephone or other device that may receive an approval
request from the billing server 14 and transmit a response to the
billing server 14.
[0076] Referring to FIG. 10, a table 240 illustrates a record
included in another embodiment of the reimbursement rules database
36 (FIG. 2). Each record defines the reimbursement rules for a
particular financial account. The table 240 includes an account
identifier 242 that uniquely identifies the financial account, and
which corresponds to an account identifier of the account holder
database 30 (FIG. 2). In the exemplary record depicted in FIG. 10,
the account identifier is "1111-1111-1111-1111", which corresponds
to the account identifier of the entry 52 (FIG. 3) of the account
holder database 30.
[0077] The table 240 also includes entries 244, 246, 248 and 250,
each of which describes a reimbursement rule. It will be understood
by those skilled in the art that the table 240 may include any
number of entries. Each of the entries 244, 246, 248 and 250
defines (i) a reimbursing party identifier 252 that uniquely
indicates a reimbursing party, and which corresponds to a
reimbursing party identifier 90 (FIG. 4) of the reimbursing party
database 32; (ii) a reimbursement condition 254; (iii) a
communication address for approval request 256; (iv) a
reimbursement amount 258; (v) a billing destination 260; (vi) time
to reimburse 262; and (vii) an account alias 264. As will be
apparent to those skilled in the art, further information may be
stored for each reimbursement rule.
[0078] Contrary to the embodiment illustrated in FIG. 6, in the
embodiment illustrated in FIG. 10 reimbursement rules indicate a
communication address to which a request for approval is sent if
the transaction satisfies the corresponding reimbursement
condition. For example, the entry 244 indicates that a request for
approval is sent to the electronic mail address
"finance@corpx.com". The entry 246 similarly indicates that a
request for approval is communicated to the telephone number "(203)
555-1234". Telephone numbers may permit a request for approval to
be sent to a facsimile machine, to a live operator or to an
interactive voice-response unit.
[0079] The reimbursing party device 230 (FIG. 9) receives the
request for approval, and in turn sends to the billing server 14 a
response to the request for approval. If the response indicates
that the reimbursing party has approved the request, then the
reimbursing party is charged the reimbursement amount specified by
the reimbursement rule. The received response indicates approval or
rejection (e.g. a "yes" or a "no" response), and may also indicate
further information, such as (i) a financial account from which
funds may be transferred to the billing party, or (ii) other
information typically included in the reimbursement rules database
36 (FIG. 2), such as a reimbursement amount. If the response
indicates a financial account from which funds may be transferred
to the billing party, then funds may be transferred automatically,
and consequently the reimbursement amount is paid.
[0080] In some embodiments, the response may also include an
indication of the reimbursement amount to be charged to the
reimbursing party. In such embodiments, a reimbursement amount need
not be stored in the corresponding entry of the reimbursement rules
database 36. The response may also include bearer instrument that
is a form of "digital money", also known as "e-cash." Digital money
is typically an encrypted digital file containing a list of digital
representations of specified amounts of money, each recorded by an
issuing bank. A description of different types of "digital money"
may be found in "Digital Money, The New Era of Internet Commerce",
by Daniel C. Lynch and Leslie Lundquist, and in "Electronic Payment
Systems", by Donald O'Mahony, Michael Peirce and Hitesh Tewari. In
such an embodiment, not only is the reimbursement amount indicated
by the received response, but the payment itself is received in the
response, so the reimbursing party does not need to be charged for
the reimbursement amount.
[0081] Referring to FIGS. 11A and 11B, a process 260 performed by
the billing server 14 (FIG. 1) initiates when charge data is
received (step 262) from the CAT 12 processing a transaction. The
charge data typically includes a transaction amount and an account
identifier that specifies an account holder's financial account.
Upon receiving the charge data, the billing server 14 may generate
a transaction identifier that uniquely identifies the transaction.
Alternatively, the charge data may include the transaction
identifier. The billing server 14 then determines whether there are
any reimbursement rules corresponding to the account identifier
(step 264), and thus determines whether there are any reimbursement
rules corresponding to the financial account. For example, the
received account identifier may be compared with records of the
reimbursement rules database 36 to find a record that includes the
account identifier.
[0082] If there are not any reimbursement rules corresponding to
the financial account, then the account holder's financial account
is charged in a conventional manner with the transaction amount
(step 266). If there are reimbursement rules corresponding to the
financial account, then the billing server 14 determines whether
any of the reimbursement rules are satisfied (step 267). As
described above, each record of the reimbursement rules database 36
includes one or more entries. Each entry describes a reimbursement
rule and includes a reimbursement condition. A reimbursement rule
is satisfied if the corresponding reimbursement condition is
satisfied by the transaction.
[0083] If a reimbursement rule is satisfied, the communication
address and reimbursing party corresponding to that reimbursement
rule are determined (steps 268 and 270, respectively). Thus, if an
entry includes a reimbursement condition that is satisfied by the
transaction, then the communication address and reimbursing party
are determined from the reimbursing party identifier of the
entry.
[0084] The billing server 14 sends a request for approval to the
communication address (step 272), and a response thereto is
received (step 274). If it is determined that digital money is not
included in the response (step 276), then the reimbursement amount
is otherwise determined (e.g., from the response or reimbursement
rules database 36) (step 278). The reimbursement amount is charged
to the reimbursing party (step 280). If digital money is included
in the response, then the amount of digital money is determined
(step 282), and the reimbursement amount is set to be this digital
money amount (step 284). The difference between the transaction
amount and the reimbursement amount is charged to the account
holder (step 286).
[0085] In another embodiment, the charge data received from the CAT
12 may include a signal that indicates approval to charge at least
a portion of the transaction amount to a second financial account.
In such an embodiment, the billing server would not send a request
for approval to a communication address, since approval has already
been received.
[0086] Referring to FIG. 12, a table 280 represents other exemplary
information included in the billing statement database 38. The
table 280 includes entries 282 and 284 that correspond to a
transaction identified by the transaction identifier "987654".
Referring again to FIG. 5, the entry 104 of the transaction
database 34 defines the transaction identified by the transaction
identifier "987654", and also indicates that the transaction amount
is $125. Further, the SIC code of the merchant indicates that the
merchant is a "restaurant". Referring again to FIG. 10, shown
therein are the reimbursement rules applicable to the appropriate
account holder. Particularly, the entry 246 indicates that the
transaction amount, up to $100, is to be reimbursed by the
reimbursing party "R729" if the merchant participating in the
transaction is a restaurant. Since the transaction "987654"
identified above satisfies this reimbursement condition,
reimbursement is to be made and thus the reimbursing party "R729"
is to be charged accordingly. Referring again to FIG. 12, the
entries 282 and 284 of the billing statement database 38 correspond
to the transaction "987654" which has resulted in charges to two
financial accounts. The transaction amount $125 is reflected in
each of the entries 282 and 284. The charge amount for the party
identified by "R729" is $100 (the maximum to be reimbursed
according to the entry 246 of FIG. 10). The charge amount for the
party identified by "1111-1111-1111-1111" is $25 ($125-$100).
[0087] FIG. 13 represents an exemplary billing statement 300
printed for the reimbursing party in accordance with the entry 282
(FIG. 12) of the billing statement database 38. Those skilled in
the art will understand that a billing statement may include
information that differs from the below-described exemplary billing
statements. The billing statement 300 includes indicia indicating
an account number 301 (which is an account alias), a transaction
identifier 302, a transaction date 304, a transaction description
306, a merchant identifier 308, an amount charged 310 and a billing
destination 312. The indicia may be printed on the printer 26 (FIG.
2) based on (i) data stored in the billing statement database 38,
such as the transaction identifier 170 and the charge amount 174
(FIGS. 7 and 12), (ii) data stored in the transaction database 34,
such as the merchant identifier 112, transaction date 116 and the
transaction description 118 (FIG. 5), and (iii) data stored in the
reimbursement rules database 36, such as the billing destination
148 and the account alias 152.
[0088] FIG. 14 represents an exemplary billing statement 320
printed for the party to be reimbursed in accordance with the entry
284 (FIG. 12) of the billing statement database 38. The billing
statement 320 includes indicia indicating the corresponding account
identifier 321, transaction identifier 322, transaction date 324,
transaction description 326, merchant identifier 328, transaction
amount 330, amount charged 332 and billing destination 334. The
indicia may be printed on the printer 26 (FIG. 2) based on (i) data
stored in the billing statement database 38, such as the
transaction identifier 170, transaction amount 172 and the charge
amount 174 (FIGS. 7 and 12), (ii) data stored in the transaction
database 34, such as the merchant identifier 112, transaction date
116 and the transaction description 118 (FIG. 5), and (iii) data
stored in the reimbursement rules database 36, such as the billing
destination 148.
[0089] As described above, an account alias may be stored for each
reimbursement rule. For example, each entry of the reimbursement
rules database 36 includes a corresponding account alias 152 (FIG.
6). In another embodiment, each financial account may have a single
account alias that is revealed to appropriate reimbursing
parties.
[0090] Referring to FIG. 15, a table 350 represents an account
alias database storing account identifiers 352 and corresponding
account aliases 354. In embodiments which use such an account alias
database, a party to be reimbursed has a corresponding account
alias that is revealed to all appropriate reimbursing parties. The
account alias database may be stored in the data storage device 22.
In other embodiments, an account alias may be generated by applying
a "one-way hash function" to the account identifier, or by
otherwise encrypting or encoding the account identifier. Many
appropriate cryptographic techniques are described in "Applied
Cryptography, Protocols, Algorithms, And Source Code In C", by
Bruce Schneier.
[0091] Referring to FIG. 16, a process 400 is performed by the
billing server 14 (FIG. 1) at periodic or predetermined intervals
to determine whether any reimbursing parties have not paid the
amounts they were charged. The billing server 14 identifies an
entry in the billing statement database 38 (FIG. 2) that indicates
an unpaid charge (step 402). If it is determined that the entry
does not correspond to a reimbursing party (step 404), then the
unpaid amount was charged to an account holder, and collection from
the account holder is pursued in a conventional manner (step 406).
If the entry does correspond to a reimbursing party, then it is
also determined whether the time to reimburse has expired (step
408). If so, then the unpaid amount is charged to the corresponding
account holder (step 410). The corresponding account holder may be
determined from the entry by searching the billing statement
database 38 for another entry that indicates the same transaction.
Such an embodiment assures that liability for unpaid reimbursement
amounts rests with the account holder. As described above, in an
alternate embodiment the reimbursing party may be held liable,
rather than the corresponding party to be reimbursed. If there are
any unpaid entries remaining in the billing statement database 38
(step 412), then the above-described steps are repeated. When no
unpaid entries remain, the process 400 ends (step 414).
[0092] Although the present invention has been described with
respect to a preferred embodiment thereof, those skilled in the art
will note that various substitutions may be made to those
embodiments described herein without departing from the spirit and
scope of the present invention. For example, the present invention
is applicable to debit card accounts as well as credit card
accounts. In addition, an account holder may be reimbursed by more
than one reimbursing party.
* * * * *