MXPA98010319A - Method and apparatus for processing credit card transactions and debit combina - Google Patents

Abstract

The present invention relates to a method and apparatus for conducting a transaction using a credit card which includes the steps of: maintaining a credit card account associated with the credit card, the credit card account having a credit limit and a transaction balance indicative of a total sum of pre-authorized transaction amounts in a predetermined period, maintaining a cash account associated with the credit card, having the cash account a cash balance, receiving a request for authorization from a new transaction amount against the credit card account in exchange for goods and services, and authorize the amount of the requested transaction when the total sum of the credit limit and the cash balance less the balance of the transaction exceeds the amount of the transaction requested

Description

METHOD AND APPARATUS FOR PROCESSING CARD TRANSACTIONS CREDIT AND DEBIT COMBINED BACKGROUND OF THE INVENTION 1. Field of the Invention The present invention relates to a commercial transaction system and a method capable of processing combined credit and debit card transactions and, more particularly, to a system and method for carry out a combined credit and debit card transaction where for the user and / or merchant the combined credit and debit card appears to be a standard credit card. 2. Related Technique The US Patent. 5,557,516 to Hogan shows a commercial transaction system in which the user of the system employs a card device to interact with transaction or sales terminals to conduct transactions without cash. The system is designed for acquisitions of items or transactions of relatively low monetary value, where acquisitions are generally unattended by sellers. The amount of the transaction is deducted from the balance on the card device. According to that system, when the existing balance associated with the card does not cover the price of the transaction, the system provides an automatic renewal device that automatically increases the balance of the card device by a predetermined amount. Each time the balance is increased by an automatic renewal, the bank issuing the card invoices the user of the card for the increments of the predetermined amount. Hogan's system is disadvantageous for several reasons. In particular, the system requires the user to limit his acquisitions to relatively minor monetary transactions. In addition, the card device can not be accepted by merchants who accept more well-known card devices such as Visa or MasterCard. Furthermore, the user can not make purchases with a credit card with the card device. In addition, the user of the card device does not receive interest in the cash balance associated with the card device. The U.S. Patent No. 5,544,246 of Mandelbaum describes a smart card that allows different service providers to coexist on the smart card where the smart card owner may have limited access to some of the files created for or by each resident service provider. The Mandelbaum patent describes that smart cards can authorize a debit or a credit to an account associated with the smart card and that the smart card can carry pre-approved credit. In addition, the Mandelbaum patent describes that the smart card has enough memory to allow, for example, Visa, American Express and MasterCard to coexist on the smart card. The smart card of the Mandelbaum system is disadvantageous because when the user charges an amount over a certain credit limit, the user has no other combination of funds from which to withdraw automatically and the transaction will be rejected. In addition, the user does not receive any interest in any cash balance associated with the smart card. The U.S. Patent No. 5,530,232 to Taylor discloses a multi-application data card that is capable of replacing a plurality of existing single application data cards. The multiple application data card may be a smart card comprising a memory formed with at least three memory banks or storage areas for storing and updating data respectively related to at least one authorized card holder and at least two authorized applications of the card. The smart card described in the Taylor patent is capable of being used for credit transactions, debit transactions and non-financial transactions. A user inserts the smart card in a card reader that has an input means that allows the user to select from several applications when making a transaction. The Taylor system is disadvantageous because when the user loads transactions over a certain limit, the user does not have another combination of funds from which to withdraw automatically and the transaction will be rejected. In addition, the smart card may not be accepted by merchants who prefer more well-known credit cards such as Visa or MasterCard. Furthermore, the user does not receive any interest in the cash balance associated with the smart card, if any. Accordingly, there is a need in the art for a multi-purpose credit card having the attributes of a standard credit card, a debit card and a cash account that produces interest, where the credit card has a limit credit and a balance of transactions (that is, a total sum of authorized transactions in a given billing cycle) and the cash account has a cash balance. With such a multi-purpose credit card, a user can use the credit card by carrying out point of sale acquisitions and the payments on the credit card can be automatically debited from the account that produces interest. The multi-purpose credit card can also be used as an automated payment machine (ATM) card so that the user can withdraw cash from the interest producing account. In addition, there is a need in the art for a system where, when the user requires a transactional amount in the credit card that exceeds the credit limit of the credit card, a bank system authorizes the transaction based on the total sum of the credit limit and the cash balance less the balance of the transaction. In this way, a transaction can be authorized even though the credit limit associated with the credit card is exceeded. At the end of the billing cycle, the cash from the interest-bearing cash account is transferred to the credit card account to cover an amount due on the credit card. SUMMARY OF THE INVENTION In order to overcome the drawbacks of the commercial transaction systems of the prior art, the present invention employs a method for conducting a transaction using a credit card that includes the steps of: maintaining a credit card account associated with the credit card, the credit card account having a credit limit and a transaction balance indicative of a total sum of previously authorized transaction amounts in a given period; maintain a cash account associated with the credit card, the cash account having a cash balance; receive an authorization request for a new transaction amount against the credit card account in exchange for goods or services; and authorize the amount of the requested transaction when the total sum of the credit limit and the cash balance minus the transaction balance exceeds the amount of the transaction requested. Another aspect of the invention is directed to an apparatus for performing a transaction using a credit card, where the apparatus includes: a credit card account associated with the credit card, the credit card account having a credit limit and a transaction balance indicative of a total sum of previously authorized transaction amounts in a predetermined period; a cash account associated with the credit card, the cash account having a cash balance; and a transaction processing unit coupled to the cash account and to the credit account, the transaction processing unit being adapted to (i) receive a request for authorization of a new transaction amount against the card account of the transaction. credit in exchange for goods or services; and (ii) authorize the amount of the requested transaction when the total amount of the credit limit and the cash balance less the balance of the transaction exceed the amount of the transaction requested. Other features and advantages of the present invention will be apparent from the following description of the invention which refers to the accompanying drawings. BRIEF DESCRIPTION OF THE DRAWINGS For the purpose of illustrating the invention, a form that is currently preferred is shown in the drawings, it being understood, however, that the invention is not limited to the precise installation and the medium shown. Figure 1 is a block diagram showing a system for carrying out a commercial transaction using a combined credit and debit card in accordance with the invention; and Figures 2A through 2D are process flow diagrams illustrating the control and process flow for the system of Figure 1.

DETAILED DESCRIPTION OF THE INVENTION Referring now to the drawings where similar numbers indicate similar elements, it is shown in FIG.

Figure 1 a block diagram of a system for carrying out a commercial transaction using a combined credit and debit card. The system 10 includes a user 20 carrying one or more credit cards 22-26, a merchant 30 able to receive the credit card 22 in exchange for merchandise 32, and a banking system 50 for authorizing a commercial transaction between the user 20 and the merchant 30. The system 10 may also include an ATM 40 to allow the user 20 to access the cash withdrawal against an account associated with the credit card 22. From the point of view of the user 20 and the merchant 30, the credit card 22 credit seems to be a standard credit card. Therefore, as is known, a user 20 eager to make a merchandise purchase by point of sale 32 of the merchant 30 presents the credit card 22 to the merchant 30. The merchant 30 then uses a card reader 34 to access the system. bank 50 to obtain an authorization to carry out the point of sale transaction with the user 20. It is preferred that the credit card 22 be associated with a well-known credit card organization, for example, Visa and / or MasterCard , so that the credit and diffusion infrastructure associated with those organizations allows the user 20 to use the credit card 22 by carrying out commercial transactions with many merchants 30. The card reader 34 employed by the merchant 30 is operatively coupled to the credit card system. bank 50, for example, through an exclusive communication line. The bank system 50 includes a transaction processor 52, an interest bearing cash account 54 associated with a particular credit card 22-26 (for example, credit card 22), a credit card account 56 also associated with the particular credit card 22, a customer information database 58A, a state production unit 58B and a customer service unit 60. The transaction processor 52 is operatively coupled to the merchant card reader 34. a manner well known in the art, so that a request to make a commercial transaction in a monetary amount for the benefit of the merchant 30 can be received by the bank system 50. The transaction processor 52 is operatively coupled to the cash account it produces interest 54 in such a way that the transaction processor 52 can obtain the cash balance of the account 54 or debit or credit the account. 54 as required to carry out the invention. The transaction processor 52 is also operatively coupled to the credit card account 56 such that a transaction balance 56B of the credit card account 56 may be increased or decreased as required. The balance of transaction 56B corresponds to a total sum of previously authorized transactions in a given billing cycle (for example, a cycle of one month). The transaction processor 52 also has access to the credit limit 56A associated with the particular credit card 22 owned by the user 20. The transaction processor 52 of the bank system 50 is operatively coupled to the customer information database 58A , so that the customer's information, for example, customer's address, credit history or similar, can be accessed and used by preparing a statement of account through the state production unit 58B. The bank 50 also couples to (or includes) a wire transfer unit 62 so that the user 20 can cause a wire transfer of funds from one account to another account to occur.

Reference is now made to Figure 2A showing the control and process flow of the system 10. In step 100, the user 20 presents the credit card 22 to the merchant 30 and, in step 102, the flow of the process will be derived to the affirmative when a point of sale transaction is requested. In step 104, the merchant 30 quickly passes the credit card 22 through the card reader 34 (or otherwise reads the information from the card 22). The card reader 34 obtains a communication link between the reader of the card 34 and the transaction processor 52 of the bank system 50 in step 106. In step 108, the transaction processor 52 receives information on the credit card 22 and the user 20 of the card reader 34 and verifies that the card 22 is a valid instrument (i.e., performs a security check). Security verification can be achieved using any of the known techniques. In step 110, the transaction processor 52 receives the requested transaction amount from the card reader 34 and stores that amount in a memory (not shown) of the processor 52. The transaction processor 52 also obtains a corresponding value with the credit limit 56A and a value corresponding to the balance transaction 56B for the credit card account 56 associated with the particular credit card 22 and stores those values in the memory (step 111). Referring to Figure 2B, in step 112, the transaction processor 52 calculates the total sum of the credit limit 56A and the cash balance of the interest producing cash account 54 minus the transaction balance 56B. In step 114, the transaction processor 52 determines whether the amount of the transaction requested would exceed the amount calculated in step 112. When the total sum of the credit limit 56A and the cash balance minus the transaction balance 56B exceed the amount of the requested transaction, then the flow of the process is derived to step 116 where the merchant transaction is authorized. In step 118, the transaction processor 52 updates the balance of the transaction 56B and updates the customer information database 58A to reflect that a credit card transaction has been carried out in the amount of the amount of the transaction. requested transaction. The customer information is used to prepare a statement for the presentation to the user 20. Then the process flow returns to stage 100 to wait for another transaction. When the amount of the requested transaction exceeds the total sum of the credit limit 56A and the cash balance minus the balance of the transaction 56B, then the process flow is derived to step 120 where the transaction amount is rejected. The processor of transaction 52 also updates the customer information database 58A to reflect the rejected transaction and the process flow returns to stage 100. It is preferred that the credit card account 56 be adjusted (i.e., balanced , partially paid, or similar) at the end of the billing period (or within a reasonable period thereafter) and preferably on a monthly basis. The process steps of Figure 2C are preferably carried out at the end of a billing cycle. In step 126, the transaction processor 52 debits the interest producing account 54 and credits the credit card account 56 by an amount that reduces the balance of transaction 56B to a value that does not exceed the 56A credit limit and insures that any other amounts due to the credit card 22 are paid. In step 128, the transaction processor 52 determines whether the cash balance of the interest production account 54 after crediting the credit card account 56 has fallen. under a predetermined limit. The predetermined limit is preferably above zero, but can be any other specified amount. When the interest bearing account balance 54 has fallen below the predetermined limit, the transaction processor 52 determines a monetary penalty against, for example, the interest producing account 54 for failing to maintain a minimum cash balance (step 130). The processor 52 also updates the customer information database 58A to reflect the pricing. The updated customer information is used by the state production unit 58B to prepare an account statement for the user's presentation 20. When the balance of the interest producing account 54 has not fallen below the predetermined limit, the transaction processor 52 fixed (ie, pays) the interest to the interest bearing account 54 (step 132). Preferably, interest is calculated on the average daily cash balance in the account that produces interest 54 including interest and unpaid fees. Unlike the previous technique, the user 20 advantageously receives interest in the cash balance in his interest-bearing account 54 (ie, the debit account). After paying interest to the interest producing cash account 54, the transaction processor 52 updates the customer information database 58A to reflect the interest payment. Reference is again made to Figure 2A, where, in step 202, user 20 wishes to make a cash withdrawal from ATM 40. In such a case, the process flow is derived to step 204 (Figure 2D) where a reader of cards (not shown) of ATM 40 establishes a communication link with transaction processor 52 of bank system 50. In step 206, transaction processor 52 receives information from ATM card reader 40 which is sufficient for verify that the credit card 22 presented to ATM 40 is valid (ie, a security check is performed). The transaction processor 52 receives a requested cash withdrawal amount from the ATM 40 and stores that value in the memory at step 208. In step 210, the transaction processor 52 accesses the interest producing cash account 54 to obtain the cash balance of the same and stores that value in the memory. In step 212, the transaction processor 52 compares the value of the available cash balance in the interest bearing account 54 with the amount of cash withdrawal requested to determine whether there are sufficient available funds in account 54 to cover the request. When there are insufficient funds in the account 54, the flow of the process is derived to step 214 where the request is rejected and the transaction processor 52 updates the customer information database 58A to reflect the rejection. When the funds available in the interest producing account 54 are sufficient to cover the request, then the flow of the process is derived to step 216 where the request is authorized. In step 218, the transaction processor 52 determines whether the available balance of funds of the interest producing account 54, after the account has been debited by the requested amount, is above the predetermined limit. When the available balance in the interest producing account 54 has fallen below the predetermined limit, then the flow of the process drifts to step 220 where the transaction processor 52 determines a penalty to the user's account and accordingly updates the base of Customer information data 58A. However, when the available balance in the interest producing account 54 has not fallen below the predetermined limit in step 218, then the flow of the process moves to step 222 where the transaction processor 52 updates the available balance in the account. which produces interest 54 and also updates the customer information database of 58A to reflect that a withdrawal has been made. Then the flow of the process returns to step 100. Referring again to Figure 1, when a transaction of the transaction processor 52 has been requested, the results of the request are stored in the customer information database 58A so that the state production unit 58B can produce a statement of account for the user 20. The report is preferably separated into cash transactions and credit card transactions where the balances of the interest bearing account 54 and the account are presented. credit card 56. Any penalty for allowing the balance of the interest bearing account 54 to fall below the predetermined limit is also presented in the account statement. Some users 20, for example, those who maintain a balance in the interest producing account 54 over a first predetermined limit, can obtain certain services through the customer service unit 60. Such services may include live operator service for certain periods during the day, for example, 17 hours per day. The live operator service is preferably available seven days per week but may be available on a more limited basis.

The customer service unit 60 can be designed in such a way that other users having, for example, a balance in the interest producing account 54 over a second predetermined limit have access to certain premium services. These premium services preferably include access to a banking staff that serves the user's account, solves problems, handles customer communications and facilitates business between the user 20 and the owner of the bank system 50. The present invention contemplates that a user 20 that owns the credit card 22 and maintains a minimum balance in the account that produces interest 54 receives such additional services such as travel and accident insurance, extended guarantees in acquisitions, emergency travel assistance, life insurance policies, health and special automobiles, car rental insurance, concierge services, prizes for use, access to airport lobbies, incentives in acquisitions and the like. The bank system 50 also provides the user 20 with the ability to transfer funds to or from the interest producing account 54 through the wire transfer unit 62 as apparent to one skilled in the art. Although the present invention has been described in relation to particular embodiments thereof, many other variations and modifications and other uses will be apparent to those skilled in the art. It is preferred, therefore, that the present invention is not limited by this specific description herein, but only by the appended claims.

Claims (26)

1. NOVELTY OF THE INVENTION Having described the present invention, it is considered as novelty and therefore what is described in the following claims is claimed as property. A method for conducting a transaction using a credit card, comprising the steps of: maintaining a credit card account associated with the credit card, the credit card account having a credit limit and having the credit card credit a transaction balance indicative of a total sum of previously authorized transaction amounts in a predetermined period; maintain a cash account associated with the credit card, the cash account having a cash balance; receive an authorization request for a new transaction amount against the credit card account in exchange for goods and services; and authorize the amount of the requested transaction when the total sum of the credit limit and the cash balance less the balance of the transaction exceeds the amount of the transaction requested. The method according to claim 1, characterized in that it also comprises the step of automatically transferring cash from the cash account to the credit card account in an amount that is sufficient to reduce the balance of the transaction below the limit of credit. The method according to claim 2, characterized in that the step of automatically transferring cash from the cash account to the credit card account is performed at the end of a billing cycle. The method according to claim 3, characterized in that the billing cycle is approximately one cycle of one month. The method according to claim 1, characterized in that it comprises the steps of: receiving a request for authorization of a quantity of cash issued against the credit card; and authorize the amount of cash and transfer the amount of cash from the cash account to satisfy the request. The method according to claim 5, characterized in that it comprises the step of determining a sanction when the cash balance in the cash account falls below a predetermined limit. The method according to claim 6, characterized in that the step of determining a penalty is performed at the end of a billing cycle. The method according to claim 7, characterized in that the billing cycle is about one cycle of one month. The method according to claim 1, characterized in that it comprises the stage of paying interest to the cash balance in the cash account. The method according to claim 9, characterized in that the stage of paying interest includes calculating the interest in an average daily cash balance of the cash account. The method according to claim 9, characterized in that the stage of paying interest is carried out at the end of the billing cycle. The method according to claim 11, characterized in that the billing cycle is about one cycle of one month. The method according to claim 2, characterized in that it comprises the step of determining a penalty when the cash balance in the cash account falls below the predetermined limit. The method according to claim 13, characterized in that the step of determining a penalty is performed at the end of a billing cycle. 15. The method according to claim 14, characterized in that the billing cycle is about one cycle of one month. The method according to claim 1, characterized in that it comprises the step of rejecting the amount of the requested transaction when it exceeds the total sum of the credit limit and the cash balance minus the transaction balance by a predetermined amount. The method according to claim 16, characterized in that the predetermined amount is any amount greater than zero. 18. An apparatus for executing a transaction using a credit card, comprising: a credit card account associated with the credit card, the credit card account having a credit limit and a transaction balance indicative of a sum total of previously authorized transaction amounts in a predetermined period; a cash account associated with the credit card, the cash account having a cash balance; and a transaction processing unit coupled to the cash account and the credit account, the transaction processing unit being adapted to (i) receive a request for authorization of a new amount of the transaction against the credit card account in exchange of goods and services; and (ii) authorize the amount of the requested transaction when the total sum of the credit limit and the cash balance less the balance of the transaction exceeds the amount of the transaction requested. The apparatus according to claim 18, characterized in that the transaction processing unit is further adapted to automatically transmit cash from the cash account to the credit card account in an amount that is sufficient to reduce the balance of the transaction below of the credit limit. The apparatus according to claim 18, characterized in that the processing unit is further adapted to (iii) receive a request for authorization of a quantity of cash issued against the credit card; and (iv) authorize the amount of cash and transfer the amount of cash from the cash account to satisfy the request. The apparatus according to claim 20, characterized in that the processing unit is further adapted to determine a penalty when the cash balance in the cash account falls below a predetermined limit. 22. The apparatus according to claim 18, characterized in that the processing unit is further adapted to pay interest on the cash balance in the cash account. 23. The apparatus according to claim 22, characterized in that the processing unit is adapted to pay interest by calculating the interest on an average daily cash balance of the cash account. The apparatus according to claim 18, characterized in that the processing unit is further adapted to determine a penalty when the cash balance in the cash account falls below a predetermined limit. The apparatus according to claim 18, characterized in that the processing unit is further adapted to reject the amount of the requested transaction when it exceeds the total sum of the credit limit and the cash balance minus the balance of the transaction by a predetermined amount . 26. The method according to claim 25, characterized in that the predetermined amount is any amount greater than zero.