Creating groups of linked accounts

Abstract

Linking accounts corresponding to different products together to create a group so that group processing can be performed at the group level while independent processing of the accounts is performed at the account level. The method links the accounts into a group by linking a financial record for each account to group master data for the group. The group master data includes information about the group, including group parameters and a group identifier. A group typically includes a key account and one or more dependent accounts. The relationship between a dependent account and the group is specified by a dependent strategy. A dependent strategy specifies group level processing options for the account. The relationships between the accounts and the group are flexible to accommodate changes in the status of the group cardholders.

Description

RELATED APPLICATIONS [0001] This U.S. patent application relates to U.S. Provisional Patent Application Ser. No. 60 / 083,004 entitled “Methods and System for a Family Financial Services Card,” filed Apr. 24, 1998. The present application and the related U.S. provisional patent application are commonly assigned to First Data Corporation. [0002] This U.S. patent application also relates to U.S. patent application Ser. No. ______ entitled “Methods for Processing a Group of Accounts Corresponding to Different Products,” filed concurrently herewith (Attorney Docket No. 06042-0150) and U.S. patent application Ser. No. ______ entitled “Method for Defining a Relationship Between an Account and a Group,” filed concurrently herewith (Attorney Docket No. 06042-0130). The present application and the related pending applications are commonly assigned to First Data Corporation.TECHNICAL FIELD [0003] This invention relates in general to a method for linking accounts corresponding to different produ...

AI Technical Summary

Benefits of technology

The present invention provides a method for linking accounts corresponding to different products together in a group. The group can perform processing at the group level while independent processing of the accounts is performed at the individual level. The relationship between the accounts in the group is flexible and can be modified as the cardholder's situation changes. The ability to add or remove accounts from the group without affecting the remaining accounts allows the group to change to accommodate changes in the relationships between the primary owner and the dependent cardholders. The group can be used to perform group processing, which includes authorizing transactions, applying group payments, creating group statements, controlling cardholder communications, and administering reward programs for the accounts in the group.

Problems solved by technology

A disadvantage of providing the child with an additional card on an existing account is that the child has access to the entire credit line of the account.

A disadvantage of providing the child with a card on an account where the child is the primary user and the parent is the responsible party is that the parent's access to credit may be reduced.

If the parent also has another account, then the credit line given to the child is not available to the parent even if the child is not currently using it because the accounts are unrelated.

A disadvantage of providing the child with a secured card by providing collateral for the account is that the collateral is committed to secure the account regardless of the amount of activity on the account.

As a result of these market realities, issuers are faced with a challenge to manage an individual's whole relationship with them while offering the flexibility consumers desire in their product options.

This option also provides almost no functionality at the cardholder level.

This limits the issuer's ability to complete marketing analysis on individual group members.

This functionality does not solve the shared credit issues or the ability to make other processing decisions at the card level.

This functionality does not accommodate different types or versions of credit card products.

Although several authorization options exist, the restrictions are based on monthly spending limits rather than a true available credit.

Commercial cards also do not accommodate different types of cardholder relationships to the group.

For example, at one point, a child may not be able to qualify individually for a credit card and may need an individual, such as a parent to be the financially responsible party for the card.

Typically, this type of functionality does not provide an easy audit trail to find the accounts which were included in the scoring activity.

This functionality also does not allow management of distinct owners.

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