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System and method for processing and for funding a transaction

a technology of system and method, applied in the field of banking system and method, can solve the problem that the debit card issuer does not have sufficient revenu

Inactive Publication Date: 2005-11-03
CAPITAL ONE SERVICES
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  • Summary
  • Abstract
  • Description
  • Claims
  • Application Information

AI Technical Summary

Benefits of technology

The present patent application provides a method for processing a transaction by automatically requesting an automated clearing house transfer from a source account to a destination account via an automated clearing house network, adjusting the destination account data by increasing the balance of the destination account by an amount of the transfer, receiving the transaction data from a merchant indicating an attempted transaction, processing the attempted transaction with a credit card interchange rate, and transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction. This system simplifies the process of processing transactions and reduces the risk of errors or fraud.

Problems solved by technology

As a result, debit card issuers do not have sufficient revenue to fund programs such as rewards programs.

Method used

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  • System and method for processing and for funding a transaction
  • System and method for processing and for funding a transaction
  • System and method for processing and for funding a transaction

Examples

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Embodiment Construction

[0019] The exemplary embodiments of the present application are described with reference to an account holder having a plurality of accounts and at least one associated transaction card linked to at least one of the plurality of accounts. The account holder can use the card, for example, to make a purchase at or with a merchant. The appearance of the transaction card can represent a credit card, a debit card, an ATM card and a smart card and, thus, is not meant to be limited to any particular type of card and associated account. Transactions conducted with the transaction card, however, are processed using a credit card interchange rate, as described herein in more detail. As is well known in the art, some transactions can be conducted without presenting a physical card at a point-of-sale (“POS”). Rather, an account holder can present a predetermined number associated with one or more accounts to perform a transaction. Further, transaction cards can be administered by various compan...

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PUM

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Abstract

Method for processing a transaction, the method comprising automatically requesting an automated clearing house transfer from a source account to a destination account via an automated clearing house network, receiving the automated clearing house transfer, adjusting destination account data associated with the destination account by increasing a balance of the destination account by an amount of the transfer, receiving transaction data from a merchant indicating an attempted transaction, the transaction data including a transaction amount and data identifying the destination account, processing the attempted transaction with a credit card interchange rate, and transmitting data to the merchant indicating one of authorization of the attempted transaction and denial of the attempted transaction.

Description

FIELD [0001] The present application relates to a banking system and method and, more particularly, to a system and method for providing transactional access to a demand deposit account while imposing a credit card interchange rate on the respective transaction. BACKGROUND [0002] Credit cards, debit cards and other types of transaction cards are commonly used today by consumers to fund transactions at or with merchants. When credit cards and debit cards are used by consumers, interchange rates are routinely imposed by a bankcard association. An interchange rate is a percentage of a transaction amount and the percentage is set by the bankcard association. Acquiring banks are charged the interchange rate for a consumer transaction by the bankcard association. An acquiring bank is a financial institution that contracts with merchants to settle electronic transactions. For credit card transactions, an acquiring bank provides the merchant with its credit card processing account. This acq...

Claims

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Application Information

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Patent Type & Authority Applications(United States)
IPC IPC(8): G06Q20/00H04K1/00H04L9/00
CPCG06Q20/00G06Q20/10G06Q40/02G06Q30/02G06Q20/3674G06Q20/4016G06Q20/40G06Q20/023
Inventor ALEXANDER, ROBERT MINTER IVROSENBLATT, CHARLES AARON
Owner CAPITAL ONE SERVICES
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