U.S. patent application number 13/850731 was filed with the patent office on 2013-08-22 for system and method for funding a collective account.
This patent application is currently assigned to JPMorgan Chase Bank, N.A.. The applicant listed for this patent is Theodore Bowers, Shelley F. Sanders. Invention is credited to Theodore Bowers, Shelley F. Sanders.
Application Number | 20130218654 13/850731 |
Document ID | / |
Family ID | 43981631 |
Filed Date | 2013-08-22 |
United States Patent
Application |
20130218654 |
Kind Code |
A1 |
Sanders; Shelley F. ; et
al. |
August 22, 2013 |
System and Method for Funding a Collective Account
Abstract
A system and method for funding a collective account such as a
charitable account includes issuing a plurality of financial
instruments, linking the financial instruments to the collective
account, aggregating individual financial instrument usage,
calculating a bonus or other reward based on the aggregate
financial instrument usage and funding or distributing the reward
to the collective account. According to the invention, members of a
civic, charitable, political or other entity may generate
collective rewards or other benefits which may be attributed to the
designated organization.
Inventors: |
Sanders; Shelley F.;
(Landenberg, PA) ; Bowers; Theodore; (Greenville,
DE) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Sanders; Shelley F.
Bowers; Theodore |
Landenberg
Greenville |
PA
DE |
US
US |
|
|
Assignee: |
JPMorgan Chase Bank, N.A.
New York
NY
|
Family ID: |
43981631 |
Appl. No.: |
13/850731 |
Filed: |
March 26, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13196447 |
Aug 2, 2011 |
8429076 |
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13850731 |
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13167367 |
Jun 23, 2011 |
8156047 |
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13196447 |
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13082691 |
Apr 8, 2011 |
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13167367 |
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12861003 |
Aug 23, 2010 |
7945514 |
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13082691 |
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10193923 |
Jul 15, 2002 |
7809641 |
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12861003 |
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Current U.S.
Class: |
705/14.17 |
Current CPC
Class: |
G06Q 40/02 20130101;
G06Q 30/00 20130101; G06Q 30/0215 20130101; G06Q 30/02 20130101;
G06Q 30/0224 20130101; G06Q 30/0279 20130101; G06Q 20/105 20130101;
G06Q 20/102 20130101; G06Q 30/0207 20130101; G06Q 20/10
20130101 |
Class at
Publication: |
705/14.17 |
International
Class: |
G06Q 30/02 20120101
G06Q030/02 |
Claims
1-28. (canceled)
29. A computer-implemented method for processing a collective
account said method comprising: performing the following steps at
one or more computer servers: issuing a plurality financial
instrument accounts to a plurality of account holders whom are
members of an organization, the financial instrument accounts
adapted to be linked to collective accounts; providing a fundable
collective account linkable to the plurality of financial
instrument accounts; linking the fundable collective account and
the plurality of financial instrument accounts; aggregating usage
corresponding to the plurality of financial instrument accounts
linked with the fundable collective account; presenting usage data
to at least one member of the organization designated to review the
usage data; calculating a first reward based on the aggregate usage
of the plurality of financial instrument accounts; and funding the
at least one collective account with the first reward such that the
first reward is divisible among one or more sub accounts according
to a provided reward allocation, wherein the providing, linking,
aggregating, presenting, calculating and funding steps are
performed by a computer comprising a processor and a memory.
30. The computer-implemented method of claim 29, wherein the
organization is selected from a group comprising families, business
organizations, trade organizations, political parties, religious
organizations, athletic organizations, professional societies,
research organizations, educational organizations, social services
organizations, lobbying groups, Political Action Committees (PACs)
and consortiums of smaller interested groups.
31. The computer-implemented method of claim 30, wherein the
collective account is held by the organization.
32. The computer-implemented method of claim 31, further comprising
funding at least one donee account with at least part of the first
reward that is funding the collective account, wherein the donee
account is not held by the organization.
33. The computer-implemented method of claim 29, further comprising
distributing the first reward from the collective account to at
least one recipient in accordance with a purpose of the collective
account.
34. The computer-implemented method of claim 29, wherein the
plurality of financial instrument accounts are associated with a
plurality of financial instrument cards.
35. The computer-implemented method of claim 34, wherein each
financial transaction card is selected from a group comprising
credit cards, ATM banking cards, debit cards, gift cards, smart
cards, proximity type devices, and checks, or combinations of
these.
36. The computer-implemented method of claim 35, wherein at least
one of the plurality of financial transaction cards comprises one
or more integrated circuits and a communication port for
communicating with conventional card readers.
37. The computer-implemented method of claim 29, wherein the
collective account comprises a charitable account.
38. The computer-implemented method of claim 29, wherein the
linking, aggregating, calculating, and funding steps are done
electronically in substantially real time.
39. The computer-implemented method of claim 29, further comprising
issuing a statement to each of the plurality of account holders
reporting the first reward amount contributed to the collective
account by each respective financial instrument account holder.
40. The computer-implemented method of claim 39, wherein issuing
the statement occurs on a periodic basis.
41. The computer-implemented method of claim 29, wherein the first
reward is based on a percentage of the balances accrued by each
account holder associated with the collective account.
42. The computer-implemented method of claim 29, wherein the first
reward is based on the account balance maintained by each financial
instrument holder associated with the collective account.
43. The computer implemented method according to claim 29, further
comprising funding the at least one collective account with an
additional contribution initiated by a financial instrument holder
of a financial instrument account linked with the collective
account.
44. The computer implemented method according to claim 29, further
comprising: calculating a second reward based on the aggregate
financial instrument usage; and funding the collective account with
the second reward, wherein the first reward is calculated and
funded by a first vendor and the second reward is calculated and
funded by a second vendor that is independent from the first
vendor.
45. The computer-implemented method according to claim 32, wherein
funding the at least one donee account occurs on a periodic
basis.
46. The computer-implemented method according to claim 29, wherein
the one or more sub accounts are collective accounts.
47. A system for linking financial instrument accounts to a
collective account and funding the collective account, the system
comprising: a plurality of electronically readable financial
transaction cards corresponding to financial instrument accounts,
at least one of the electronically readable financial transaction
cards associated with an individual account holder whom is a member
of an organization; a central computer comprising a processor and a
memory operable to perform the following steps: providing a
fundable collective account linkable to the plurality of financial
instrument accounts; linking the fundable collective account and
the plurality of financial instrument accounts; aggregating usage
corresponding to the plurality of financial instrument accounts
linked with the fundable collective account; presenting usage data
to at least one member of the organization designated to review the
usage data; calculating a first reward based on the aggregate usage
of the plurality of financial instrument accounts; and funding the
at least one collective account with the first reward such that the
first reward is divisible among one or more sub accounts according
to a provided reward allocation.
48. The system according to claim 47, wherein the organization is
selected from a group comprising families, business organizations,
trade organizations, political parties, religious organizations,
athletic organizations, professional societies, research
organizations, educational organizations, social services
organizations, lobbying groups, Political Action Committees (PACs)
and consortiums of smaller interested groups.
49. The system according to claim 48, wherein the collective
account is held by the organization.
50. The system according to claim 49, the system further comprising
funding at least one donee account with at least part of the first
reward that is funding the collective account, wherein the donee
account is not held by the organization.
51. The system according to claim 47, the system further comprising
distributing the first reward from the collective account to at
least one recipient in accordance with a purpose of the collective
account.
52. The system according to claim 47, wherein each financial
transaction card is selected from a group comprising credit cards,
ATM banking cards, debit cards, gift cards, smart cards, proximity
type devices, and checks, or combinations of these.
53. The system according to claim 47, wherein at least one of the
plurality of financial transaction cards comprises one or more
integrated circuits and a communication port for communicating with
conventional card readers.
54. The system according to claim 47, wherein the collective
account comprises a charitable account.
55. The system according to claim 47, wherein the linking,
aggregating, calculating, and funding steps are done electronically
in substantially real time.
56. The system according to claim 47, further comprising issuing a
statement to each of the plurality of account holders reporting the
first reward amount contributed to the collective account by each
respective financial instrument account holder.
57. The system according to claim 56, wherein issuing the statement
occurs on a periodic basis.
58. The system according to claim 47, wherein the first reward is
based on a percentage of the balances accrued by each account
holder associated with the collective account.
59. The system according to claim 47, wherein the first reward is
based on the account balance maintained by each financial
instrument holder associated with the collective account.
60. The system according to claim 47, the system further comprising
funding the at least one collective account with an additional
contribution initiated by a financial instrument holder of a
financial instrument account linked with the collective
account.
61. The system according to claim 47, further comprising:
calculating a second reward based on the aggregate financial
instrument usage; and funding the collective account with the
second reward, wherein the first reward is calculated and funded by
a first vendor and the second reward is calculated and funded by a
second vendor that is independent from the first vendor.
62. The system according to claim 50, wherein funding the at least
one donee account occurs on a periodic basis.
63. The system according to claim 47, wherein the one or more sub
accounts are collective accounts.
64. A computer-implemented method for processing a collective
account said method comprising: performing the following steps at
one or more computer servers: issuing a plurality financial
instrument accounts to a plurality of account holders whom are
members of an organization, the financial instrument accounts
adapted to be linked to collective accounts; providing a fundable
collective account linkable to the plurality of financial
instrument accounts, wherein the collective account comprises a
charitable account held by the organization; linking the fundable
collective account and the plurality of financial instrument
accounts; aggregating usage corresponding to the plurality of
financial instrument accounts linked with the fundable collective
account; presenting usage data to at least one member of the
organization designated to review the usage data; calculating a
first reward based on the aggregate usage of the plurality of
financial instrument accounts; funding the at least one collective
account with the first reward such that the first reward is
divisible among one or more sub accounts according to a provided
reward allocation, wherein the one or more sub accounts are
collective accounts; funding at least one donee account with at
least part of the first reward that is funding the collective
account, wherein the donee account is not held by the organization;
funding the at least one collective account with an additional
contribution initiated by a financial instrument holder of a
financial instrument account linked with the collective account;
and issuing a statement to each of the plurality of account holders
reporting the first reward amount contributed to the collective
account by each respective financial instrument account holder,
wherein the providing, linking, aggregating, presenting,
calculating, funding, and issuing steps are performed in
substantially real time by a computer comprising a processor and a
memory.
Description
CLAIM OF PRIORITY
[0001] Priority for the present application is claimed to
Provisional Application 60/307,594
FIELD OF THE INVENTION
[0002] The invention relates generally to collective benefits
derived from the use of financial instruments, such as
MASTERCARD.RTM., VISA.RTM., DISCOVER.RTM. and AMERICAN EXPRESS.RTM.
credit cards. ATM banking cards, debit cards, gift cards, smart
cards, proximity type devices (i.e. such as SPEEDPASS.RTM. type
devices) and other financial instruments such as demand deposit
accounts, brokerage accounts and the like as detailed further
herein. More specifically, the invention relates to a system and
method for aggregating benefits to fund a collective account, the
collective account representing, for instance, charitable
contribution funds, political funds, educational expense or other
funds.
BACKGROUND OF THE INVENTION
[0003] Financial transaction cards and devices, such as commercial
credit cards, debit cards, transfer funds cards, private label
cards, proximity type devices (i.e. such as SPEEDPASS.RTM. devices)
and stored value cards are widely used for payments, cash advances
and other financial transactions. With financial transaction cards,
data for identifying the customer, such as an account number, a
security code, or other identifying data is typically magnetically
stored on a magnetic tape or strip embedded into the back-side of
these types of instruments. When a transaction is to be performed
at a retail store or other channel, a customer may hand his or her
card to an employee of the retail store for scanning the magnetic
information into a communication device. When a credit card is
utilized in a bank, in order to receive a cash advance, the
transaction may for instance be handled by either a teller or an
automated teller machine (ATM). In the case of an ATM, the card is
placed inside the ATM and the card owner enters a personal
identification number (PIN) which is transmitted to the credit card
company along with the transaction information. When the PIN is
found to be incorrect, most credit card companies send to the card
owner a request to re-enter the PIN. Financial transaction cards
used herein may also include smart cards, i.e., cards having
electronic circuits thereon.
[0004] Some card issuers have offered incentive programs to
increase the use of their cards. For example, credit card rebate
systems such as the DISCOVER.RTM. card or the like, may provide a
rebate or rewards point program tied to general card usage. The
rebate is enjoyed by the cardholder who receives a check or credit
on his or her account. Others have suggested credit card systems
that transfer a predetermined amount of money to an investment
account periodically and bill the cardholder through the credit
card account. For example, U.S. Pat. No. 5,787,470 describes a
credit card system in combination with a rebate that is transferred
to an investment account. However, among other limitations,
existing cards provide bonuses or rebates based only on individual
card usage. Moreover, the benefit or rebate is only enjoyed by the
cardholder who receives a check or credit on his or her
account.
[0005] Generally, processing of charitable and other civic,
donation-type or other contributions requires considerable time and
resources to scout out contributions, to solicit pledges on behalf
of fundraising organizations, to have contributors fill out a
pledge card, and to have contributors honor their pledges.
Considerable time and resources are also required to process a
pledge made by cash or check to get the funds into the fundraising
organization's or the recipient's account. Processing charitable
contributions also involves other costs such as the use of
volunteers to open envelopes, count cash contributions and gifts,
segregate cash contributions and gifts, deposit costs associated
with depositing cash into a fundraising organization account, and
the like.
[0006] Some have suggested the use of financial transaction cards
in connection with methods and systems for making charitable
contributions. For example, U.S. Pat. No. 5,696,366 to Ziarno
(Ziarno) describes a method and system for streamlining the giving
of contribution and gift commitments. Ziarno describes a method and
system that require the use of a terminal in fundraising events for
the solicitation and receiving of contributions and gifts. The
terminal is a hand held unit with a wire-less communication link
that includes a card processor, a card reader and accompanying
circuitry that can read smart cards. The terminal accepts cash
currency contributions, and card contributions.
[0007] However, no organized manner to fund selective charitable or
other accounts based on collective, multi-party activity
exists.
SUMMARY OF THE INVENTION
[0008] The invention overcoming these and other problems in the art
relates in one regard to a system and method for automated funding
of a collective account, for instance generating a bonus or other
reward calculated based on an aggregate usage of a plurality of
individual financial instruments that are linked to the collective
account.
[0009] It is another feature of the invention to provide a
financial instrument that is linked to an individual account and to
a collective account, for funding the collective account with a
bonus that is calculated based on an aggregate usage of all
financial instruments linked to the collective account.
[0010] It is yet another feature of the present invention to
provide a method and system for facilitating the giving of
charitable contributions.
[0011] One aspect of the present invention relates to a method and
system for funding a main or collective account comprising issuing
a plurality of financial transaction instruments, linking the
instruments to the collective account, aggregating individual usage
of all linked instruments, calculating a bonus based on the
aggregate instrument usage and funding the bonus to the collective
account. The funds in the collective account may be used for a
variety of purposes, such as making charitable contributions,
funding political campaigns, making contributions to religious or
civic groups or paying educational expenses.
[0012] Another aspect of the present invention relates to a
collective financial transaction card, also referred to hereafter
as a collective card (CC). The collective card may include means
for operatively linking the card to an individual account, and to a
collective account via conventional card reader devices. For
example, the collective card may include one or more integrated
circuits and a communication port for communicating with
conventional card readers. For example, the communication port may
be a contact or contactless interface.
[0013] The collective account may be funded with incentives or
rewards value, such as a bonus or rebate or other type of value
such as frequent flier miles or the like. The bonus or rebate may
be calculated based on an aggregate card usage of all collective
cards that are linked to the collective account. Alternatively, the
collective account may also be funded with direct contributions
made by the cardholders on a periodic basis or at random
intervals.
[0014] The present invention also provides a more efficient, less
costly method and system for making and managing contributions to
collective accounts such as accounts of charitable or other
fundraising organizations. Other features and advantages of the
present invention will become apparent from the description of the
embodiments in conjunction with the following figures.
BRIEF DESCRIPTION OF THE DRAWINGS
[0015] FIG. 1 is a diagram of one embodiment of the present
invention illustrating a plurality of collective cards linked to an
individual account and to a collective account.
[0016] FIG. 2 is a flowchart illustrating an embodiment of the
invention.
[0017] FIG. 3 is a flowchart illustrating an embodiment of the
invention in another regard.
[0018] FIG. 4 is a flowchart illustrating an embodiment of the
invention in another regard.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS
[0019] The invention relates generally to a system and method for
funding a collective account based on the use of selected financial
instruments. As used within the present invention and as detailed
further below, a collective account may be any of a variety of
accounts or other means for storing, pooling or tracking any value
or credits which may be awarded to a customer. As further used and
detailed herein, a financial instrument may be any of a variety of
devices, cards and accounts. For example, a financial instrument in
accordance with the present invention may include collective cards
which may include credit cards, such as MASTERCARD.RTM., VISA.RTM.,
DISCOVER.RTM. and AMERICAN EXPRESS.RTM. credit cards, ATM banking
cards, debit cards, gift cards, smart cards, proximity type devices
(i.e. such as SPEEDPASS.RTM. type devices) and other instruments
such as traditional checks and other commercial paper.
Additionally, as used in accordance with the present invention, a
financial instrument may include accounts such as, for example,
demand deposit accounts, brokerage accounts, mutual fund accounts,
money market accounts, telephone card accounts, wireless telephone
accounts, frequent flier accounts and the like.
[0020] In one embodiment of the invention, processing may include
issuing a plurality of collective cards, and linking each
collective card to an individual account and to the collective
account. The invention may further include aggregating card usage
for all linked cards in the collective account. A bonus or other
financial or non-financial reward may be calculated based on the
aggregate card usage in the collective account, and the reward
funded to the collective account. The above processing can be
accomplished in real time, or on a periodic basis. The funds in the
collective account may be used for a variety of purposes including
funding of member activities, various accounts of a civic,
political, religious or other organization, or accounts of other
organizations such as charitable organizations. For example, if the
organization is a political party the funds may be used to fund
political campaigns or other activities of members of the political
party.
[0021] Another embodiment of the present invention is directed to a
method and system for making charitable contributions based on
aggregate card usage by the members of an organization that may
carry a collective card. The contributions may generate a bonus or
other reward or value that may be calculated on a periodic or other
basis, based for instance on an aggregate card usage by the members
of the organization during a period. The contributions may be
distributed to one or more charitable organizations or other
fundraising organizations as designated by the donating
organization. Individual card usage may be monitored in the
collective account and a bonus or other reward may be calculated
based on a formula such as, for example, as a percentage of the
total card usage over a selected time period. The bonus or other
value or reward may be periodically funded to the collective
account. Accumulated funds in the collective account may be
periodically distributed to one or more accounts of charitable
institutions.
[0022] For example, a cardholder of a collective card may designate
a charitable organization to receive a portion of the total reward
that corresponds to that cardholder's individual card usage.
Alternatively, a cardholder may select a charitable organization
from a list of charitable organizations that are associated with
the collective account. The selection may be made in the
application for obtaining the collective card or at another time.
The application form may be a paper form mailed to the members of
an organization, or an electronic form accessible at a website.
Alternatively, a customer may apply for a collective card via an
automated telephone system. Other well known conventional ways for
opening an account linked to a financial transaction card may also
be used.
[0023] According to another embodiment of the present invention, a
conventional financial transaction card can be linked to a
collective account upon express authorization by the cardholder.
For instance, an issuer of a credit card such as a bank may
establish a plurality of collective accounts and designate each
collective account for a particular purpose, such as an
environmental protection fund, a charitable contribution account,
an educational account, etc. The issuer of the credit cards may
then contact existing customers and offer them the option to add
the collective feature, i.e., linking their account to a collective
account of their choice.
[0024] Upon authorization by the cardholder, the issuer of the
credit cards may link the credit card account to the selected
collective account for funding the collective account with a bonus
calculated based or an aggregated card usage of all credit cards
linked to the selected collective account. Cardholders of the
individual cards linked to a collective account need not
necessarily all be members of the same organization. The
organization may be the direct holder of the collective account,
may designate one or more charitable or other organizations to
receive the funds from the collective account, may deposit the
funding or value into escrow, or otherwise dispose of or use the
value represented by the account.
[0025] Optionally, individual cardholders may make additional
contributions to the collective account, on a regular periodic
basis, or at random intervals. Reports or statements may also be
issued to each cardholder or the organization reporting the amount
of the charitable contribution and the recipient charitable
organizations, on a periodic or other basis. These statements may
also be combined with regular account activity statements.
[0026] Yet another embodiment of the invention relates to a
computer-based system for funding a collective account. The system
may include a plurality of financial transaction cards linked to a
plurality of individual accounts and to a collective account. Each
card may include means for operatively linking the card to at least
one individual account and to a collective account. For example,
the card may be a magnetic card having one or more permanent or
programmable memory means such as magnetic stripes that contain
information tier accessing the accounts linked to the card. The
memory means can be read by conventional card reader devices.
Alternatively, the card may be a smart card comprising one or more
integrated circuits (ICs) and a communication port for exchanging
information between the card and an external reader. The
communication port may be a contact or contact-less interface.
[0027] The system may further include a central computer comprising
hardware and software for monitoring individual card usage,
aggregating card usage, and calculating a bonus based on the
aggregate card usage of all accounts linked to a collective
account. The central computer may also control the funding of the
collective account with the bonus, distributing the accumulated
funds in the collective account to other accounts, and generating
statements of individual, and collective card activity to the
cardholders, and to the holder of the collective account.
[0028] Referring now to FIGS. 1 and 2, an embodiment of the
invention is illustrated for funding a collective account (CA),
such as a charitable contribution account. The system comprises a
plurality of collective cards 110, each card being operatively
linked to at least one individual account (IA) 105. Also, each
individual account 105 may be operatively linked to a main or
collective account 100. Alternatively, the collective card may
include means for linking the card directly to a collective
account. Typically, an entity such as a financial institution may
issue a plurality of collective cards 110 to members of an
organization (block 200), and link each collective card to an
individual account 105 and to the collective account 100 (block
210). The method may further include steps of aggregating card
usage for every individual account in the collective account (block
220), calculating a bonus based on the aggregate card usage in the
collective account (block 230), and funding the collective account
with the bonus (block 240).
[0029] An organization can be any entity having a set of members
formed for the pursuit of a common goal or objective. Examples may
include families, business organizations, trade organizations,
political parties, religious organizations, athletic organizations,
professional societies, research organizations, educational
organizations, social services organizations or many other types of
entities. Further examples of organizations include lobbying
groups, Political Action Committees (PACs) and consortiums or
alliances of smaller interested groups. Typically, the organization
will be the holder of the collective account. However, the holder
of the collective account may be a different organization from the
organization whose members are the cardholders of the collective
cards. For example, a bank may issue collective cards to members of
an educational institution, and link the cards to a collective
charitable contribution account. The holder of the collective
account may be directly the recipient charitable organization. The
funds in the collective account may be used by the organization for
a variety of purposes such as to fund its own activities. The funds
may also be used for funding accounts of other organizations. For
example, the organization play use the funds for making charitable
contributions to one or more charitable organizations, or other
fundraising organizations.
[0030] The collective account may also include one or more
sub-accounts, each sub-account being designated for a different
purpose. A cardholder of a collective card (i.e., a card that is
linked to a collective account), may direct his or her contribution
to one or more of the sub-accounts. In another embodiment, a
collective card may be linked to one or more collective accounts.
The bonus or other value may be distributed equally among these
accounts or according to some predetermined formula.
[0031] Cardholders of a collective card according to the invention
may select which account or sub-accounts may receive the bonus
funds or other value. Thus, the purpose or use of the bonus funds
may vary and may be determined by the individual cardholders, the
issuing bank, or the organization whose members are issued the
individual collective cards. Monitoring of individual card usage,
aggregating card usage, calculating the bonus, and funding of the
collective account may be done in real time, or on a periodic basis
using conventional computerized means. Additionally, awards and
credits for card holders may be adjusted over selected periods of
time to encourage funding the collective account. For instance,
awards and credits for card holders may be increased during
fundraising events or during seasons of the year during which
spending is expected to increase. The invention may include a
central computer including hardware and/or software for
accomplishing these functions.
[0032] Referring to FIG. 3, an embodiment of the invention is
illustrated that includes establishing a collective account for
making charitable or other contributions for an organization (block
300). A financial institution such as a bank may issue a plurality
of individual collective cards 110 to members of the organization
or others that desire to receive the collective card (block 305).
Each collective card 100 may be linked to at least one individual
account for monitoring individual usage of the card, and billing,
according to conventional systems and methods. Each collective card
110 may also be linked to the collective account 100 for
aggregating purchases made with the collective card in the
collective account 100. The invention further may include
calculating a bonus or other reward based on an aggregate card
usage of all collective cards linked to the collective account
(block 315).
[0033] The invention may further include distributing the
calculated bonus to at least one charitable institution designated
by the organization on a periodic basis (block 320). The invention
may likewise include issuing charitable contribution statements to
the cardholders on a periodic basis (block 325). Individual card
usage may be monitored and aggregated in the collective account in
real time or by selected categories of interest.
[0034] A charitable or other reward may be calculated in a number
of different ways, including, for example, based on a designated
percentage of the aggregate card usage over a selected period of
time. Additionally, card usage may be measured in a number of
different ways such as, for example, the total value of the goods
or services purchased for a month. The amount of the bonus or other
reward may be designated and funded by the card issuer, or the
organization that is the holder of the collective account. A reward
program might, illustratively, be set up to generate rewards based
on certain percent of the total purchase value of the goods or
services purchased over a period (i.e. 1% of the total purchases
made), or other ranges or calculations might be employed to
structure the reward. Further, rewards may be graduated depending
on the level of card activity and based on preset award amounts
(i.e. a $20 award based on card usage exceeding $1000 and a $40
award for card usage over $1500). Additionally, rewards could be
graduated and granted based on selected customizable dates or
events such as for a fundraising drive or for selected holidays and
seasons. Such awards may also be made on a one-time basis, for
instance, upon the purchase of a house or upon registering for a
specific promotion. For awards based upon demand deposit accounts,
brokerage accounts and the like, rewards may be based upon, for
example, maintaining certain levels of balances over selected
periods of time or making certain amounts of deposits.
[0035] It is important to note that each card and each charitable
account is not restricted to any single type of award or method of
funding. Further, it is important to note that each card and each
charitable account is not limited having only a single vendor as
the source for granting the awards and funding. For instance, a
charitable or other reward may be accumulated using a combination
of programs which may be awarded by multiple, independent vendors.
For example, a single card holder may receive a first award to a
charitable account which is awarded by a first vendor and
calculated, for instance, as a designated percentage of the
aggregate card usage over a selected period of time. Additionally,
the same card holder may receive a second award to the same
charitable account which is awarded by a second vendor based upon,
for instance, the occurrence of a specific event (i.e. staying at a
specific hotel, flying a specific airlines, purchasing a home from
a specific broker). Accordingly, the present invention is not
limited to any specific combination of programs, awards or
vendors.
[0036] For each cardholder, the period for updating the main
account of the individual card usage, calculating and distributing
the reward may vary depending on a number of factors, for example,
financial or tax considerations of the individual cardholder or the
holder of the collective account. For example, individual
cardholders may prefer an annual distribution of the charitable
bonus contributions prior to the end of the fiscal year in order to
be able to claim a tax deduction for that year.
[0037] Optionally, on an annual basis or after some other time
period, a statement may be forwarded to the holder of the
collective account and to each cardholder of a collective card
itemizing all contributions given, e.g., to charitable
organizations, for tax purposes, or otherwise. The statement may be
formatted so that a tax processing entity, e.g., the United States
Internal Revenue Service (IRS) or a state tax body, will accept the
information for substantiating the contribution at issue, and/or
grant a charitable contribution deduction. It will be understood
that records of the contribution made by a number of cardholder
contributors can be processed and forwarded to each respective
cardholder contributor for meeting contribution or gift quotas and
for substantiating charitable contribution or gift deductions.
[0038] A charitable account may be used to fund a corresponding
charitable organization i.e., an organization that is awarded
nonprofit status by the IRS or other body. For example, in the
United States, charitable organizations may include nonprofit tax
exempt organizations that are classified under appropriate sections
of the federal tax code. This classification is a reliable
indicator of the tax deductibility of contributions and gifts.
Charitable organizations for example may include public charities
and private foundations. Typically, a public charity may solicit
funds from the public and use the funds to sponsor or support
social, educational, or religious activities, or engage in
activities that provide for relief for distressed or
underprivileged individuals.
[0039] The group of charitable organizations may illustratively
include churches, conventions or associations of churches;
educational organizations; hospitals and medical research
organizations; organizations created to benefit stale and municipal
colleges and universities that normally receive their support from
the government or the general public; and other publicly supported
organizations such as museums, libraries, support groups for
cultural organizations, organizations for the gathering of
contributions and gifts for research into and the elimination of
medical disorders, and organizations that provide direct services
to the public.
[0040] Fundraising organizations also include organizations that
receive the majority of their support from activities relating to
their tax exempt functions, such as a museum's receipts or tuition
paid to an educational institution. Fundraising organizations or
gifts recipients also include public television, radio and other
forms of media organizations that derive support from the public by
way of contributions and gifts.
[0041] Fundraising organizations also include those organized
exclusively to support other qualified public charities, such as
churches, schools, and hospitals; those operated for the purpose of
testing products for public safety; and private foundations
established to maintain or aid social, educational, religious, or
other charitable purposes.
[0042] A "fundraiser" or "fundraising organization" may be a
private foundation; a tax exempt corporation; a not-for-profit
corporation; an organization organized and operated exclusively for
religion, charitable, scientific testing for public safety,
literary or educational purposes to foster national or
international amateur sports competition, and/or for the prevention
of cruelty to children or animals; a civic league; an organization
not organized for profit but operated exclusively for the promotion
of social welfare; and, private for profit an not-for-profit
organization that gather a contribution or gift on behalf the above
mentioned organizations. Exemplary organizations may include the
Red Cross, the Boy Scouts, the Girl Scouts, Salvation Army,
American Heart Association, American Diabetes Association, United
Way Crusade of Mercy, high schools, grammar schools, colleges,
museums, and fundraising arms of other organizations, and the
like.
[0043] A "fundraising organization" and/or "fundraiser" also may
include a political organization, a party, committee, association,
fund, or other organization, fund, or other organization (whether
incorporated or not) organized and operated primarily for the
purpose of directly or indirectly expenditure, or both, for an
"exempt function." An exempt function may include the function of
influencing or attempting to influence the selection, nomination,
election, or appointment of an individual to any Federal, State, or
local public office or office in a political organization, or the
election of Presidential or Vice-Presidential electors, whether or
not such an individual or electors, whether or not such an
individual or electors are selected, nominated, elected, or
appointed; and, a campaign committee, and/or a fund established for
the nomination or election of an individual to a Federal, State, or
Public office.
[0044] Another illustrative embodiment of the invention is
illustrated in FIG. 4, in which a plurality of collective cards are
issued to members of a family (block 400). A family may be a group
of individuals living under one roof such as a traditional family,
or a group of common ancestry, or group of people united by certain
convictions or a common affiliation. The cards are linked to a
collective account (block 405). The funds in the collective account
may be used for a variety of purposes, for example, the collective
family account may be an educational account that can be used to
pay family educational expenses and may qualify for preferential
tax treatment under existing tax laws. The collective account may
also be a family savings account, a family investment account or a
special tax free or tax deferred account (i.e. a 529 account,
401(k) account, or a Roth IRA account). The invention further
includes steps of aggregating card usage (block 410) and
calculating a bonus or other reward based on the aggregate card
usage (block 415), and funding the educational account with the
bonus (block 420). Family members may also make independent
contributions to the collective family account either on a regular
periodic basis, or at random intervals.
[0045] The funds in the collective family account may also be used
for more than one purpose, e.g., a part of the funds may go to a
charitable organization, another part may go to an educational fund
account, another part may go to an investment account, and yet
another part may go to a retirement or medical account, etc. Also,
family members may be able to direct where their bonus
contributions go.
[0046] The invention may also employ conventional security means
for ensuring that the security and privacy of the individual
accounts is not compromised.
[0047] Thus, personal information in an individual account would
not be accessible by other cardholders or by the organization
itself, without the express consent of individual cardholders. For
example, a collective family account may allow the head of the
family or the holder of the collective family account to view
monitoring of individual card activity, typically in a combined
statement. Typically, however, individual card usage data may be
electronically monitored in the collective account for purposes of
calculating a bonus based on an aggregate card usage of all linked
cards, without divulging personal cardholder information.
[0048] In another embodiment of the invention the collective card
may be a smart card that may include means for storing
transactional data, i.e., data related to transactions involving
the account associated with that card. Examples of such
transactional data include the amounts of money spent on certain
goods or services, the names of the establishment where such
transaction takes place, the date and time of such expenditures,
and the like. Moreover, each card may be associated with a single
individual or multiple individual accounts. The individual account
or accounts linked to each card may be automatically updated as
transactions occur. The individual smart card also may communicate
with other devices using a wireless link.
[0049] The foregoing embodiments have been presented for the
purpose of illustration and description only, and variations in
implementation will occur to persons skilled in the art. For
instance, as detailed earlier above, although the present invention
has been discussed primarily with respect to the use of collective
cards, the present invention has been designed and is intended for
use with any of a variety of financial instruments including demand
deposit accounts, brokerage accounts, mutual fund accounts, money
market accounts, telephone card accounts, wireless telephone
accounts, frequent flier accounts and the like without limitation.
The scope of the invention is intended to be limited only by the
claims appended hereto.
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