Debt repayment system over a communications network
Patent Information
- Application Number
- PCT/US2026/019314
- Authority / Receiving Office
- WO · WO
- Patent Type
- Applications
- Current Assignee / Owner
- Priority Date
- 2025-03-14
- Filing Date
- 2026-03-16
- Publication Date
- 2026-09-17
Smart Images
Figure US2026019314_17092026_PF_FP_ABST
Abstract
Description
DEBT REPAYMENT SYSTEM OVER A COMMUNICATIONS NETWORKCROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This international patent application claims priority to U.S. provisional patent application 63 / 771,783 filed on March 14, 2025 and titled Debt Repayment System over a Communications Network. The subject matter of U.S. provisional patent application 63 / 771,783 is hereby incorporated by reference in its entirety.STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT
[0002] Not Applicable.INCORPORATION BY REFERENCE OF MATERIAL SUBMITTED ON A COMPACT DISC
[0003] Not Applicable.TECHNICAL FIELD
[0004] The claimed subject matter relates to the field of electronic commerce systems and methods and, more specifically, the claimed subject matter relates to the field of systems that facilitate the repayment of debts using alternative methods.BACKGROUND
[0005] In the current financial landscape, consumers frequently rely on credit cards, loans, and other debt instruments to manage daily expenses and significant purchases. At times, however,consumers fall behind on paying their debts. Debts that progress to the collections stage frequently remain unresolved for extended periods, leaving consumers in precarious financial situations and causing lenders to incur additional expenses in attempting to recover outstanding balances. Collection agencies often rely on persistent contact, calls, and letters to spur repayment, yet these efforts may not yield consistent results due to the limited financial flexibility of the debtor or the absence of an accessible, straightforward repayment solution. In many cases, individuals caught in a cycle of collections are deterred by the complexity of managing numerous obligations and the lack of seamless integration between collection notices and everyday financial tools.
[0006] Many established debt repayment methods require active user involvement, such as scheduling transfers or mailing payments, creating a dependence on continuous diligence in tracking due dates and minimum amounts. Other platforms in the financial space generally focus on the facilitation of purchases and immediate fund transfers rather than tackling long-term debt obligations. Merchant commissions and transaction fees likewise play critical roles in existing payment and affiliate networks, but these revenue streams tend to be directed toward service providers rather than configured to benefit the end user’s financial goals. Current systems that incorporate loyalty points or cash-back mechanisms do allow users to accrue rewards from their spending, but the methods for actually applying such rewards to outstanding debts are often cumbersome and manual.
[0007] As a result, many individuals find it difficult to make steady progress on debt reduction without resorting to manual interventions or higher-interest refinancing options. The overall lack of direct integration between digital wallets, automated revenue allocations, and debt accounts presents ongoing challenges for consumers seeking an efficient way to reduce their balances while engaging in everyday financial transactions.
[0008] Therefore, what is needed is a system and method for improving the problems with the previous ideas, and more particularly for a more effective and efficient method and system for facilitating the repayment of debts using alternative methods.BRIEF SUMMARY
[0009] This Summary is provided to introduce a selection of disclosed concepts in a simplified form that are further described below in the Detailed Description including the drawings provided. This Summary is not intended to identify key features or essential features of the claimed subject matter. Nor is this Summary intended to be used to limit the claimed subject matter's scope.
[0010] In one embodiment, a computer-implemented method is provided that is executed by a server system communicatively coupled over a communications network to at least one user computing device, at least one partner-merchant computing system, and at least one lender computing system, the server system including a database storing user records and debt account records. The method includes storing, in the database of the server system, a user record associated with a user computing device and a debt account record identifying a debt account maintained by the lender computing system. The method further includes linking a digital wallet associated with the user computing device to the debt account record by storing, within the database, an association between digital wallet identification data and the debt account record. Transaction data transmitted over the communications network from the user computing device or the partner-merchant computing system is received by the server system via a network interface, the transaction data including at least a transaction amount, merchant identification data, and electronic payment information associated with the digital wallet. The server system accesses partner-merchant records stored in the database to determine whether the merchant identification data correspondsto a partner merchant participating in a merchant-commission program and, in response to determining that the transaction involves the partner merchant, executes a commission calculation routine that determines a merchant commission value associated with the transaction based on predefined commission rules stored in the database. The server system further assesses a transaction processing fee associated with processing the transaction through the digital wallet and retrieves allocation parameters stored in the debt account record that specify a predefined percentage of merchant commissions or transaction processing fees to be applied to repayment of the debt account. At least one of the merchant commission value or the transaction processing fee is automatically allocated to the debt account by generating an allocation record in the database that associates an allocated amount with the transaction data. The server system transmits payment data to the lender computing system instructing application of the allocated amount to the debt account, updates the debt account record to reflect a reduced outstanding balance based on the allocated amount, and maintains a transaction ledger stored in the database that records each allocation of merchant commission or transaction fee applied toward the debt account and associates the allocation with the corresponding transaction data.
[0011] Additional aspects of the claimed subject matter will be set forth in part in the description which follows, and in part will be obvious from the description, or may be learned by practice of the claimed subject matter. The aspects of the claimed subject matter will be realized and attained by means of the elements and combinations particularly pointed out in the appended claims. It is to be understood that both the foregoing general description and the following detailed description are exemplary and explanatory only and are not restrictive of the disclosed subject matter, as claimed.BRIEF DESCRIPTION OF THE SEVERAL VIEWS OF THE DRAWINGS
[0012] The accompanying drawings, which are incorporated in and constitute part of this specification, illustrate embodiments of the claimed subject matter and together with the description, serve to explain the principles of the claimed subject matter. The embodiments illustrated herein are presently preferred, it being understood, however, that the claimed subject matter is not limited to the precise arrangements and instrumentalities shown, wherein:
[0013] FIG. 1 is a block diagram illustrating the network architecture of a system for facilitating repayment of debts over a communications network, in accordance with one embodiment.
[0014] FIG. 2 is a block diagram showing the data flow of the process for facilitating repayment of debts over a communications network, according to one embodiment.
[0015] FIG. 3 is a flow chart depicting the general control flow of a process for facilitating repayment of debts over a communications network, according to one embodiment.
[0016] FIG. 4 is a block diagram depicting a system including an example computing device and other computing devices.
[0017] The aforementioned figures will hence depict various embodiments claimed by the applicant.DETAILED DESCRIPTION
[0018] The following detailed description refers to the accompanying drawings. Whenever possible, the same reference numbers are used in the drawings and the following description to refer to the same or similar elements. While disclosed embodiments may bedescribed, modifications, adaptations, and other implementations are possible. For example, substitutions, additions, or modifications may be made to the elements illustrated in the drawings, and the methods described herein may be modified by substituting, reordering, or adding additional stages or components to the disclosed methods and devices. Accordingly, the following detailed description does not limit the disclosed embodiments. Instead, the proper scope of the disclosed embodiments is defined by the appended claims.
[0019] The claimed embodiments represent a significant improvement over prior art by providing a seamless integration of debt repayment into a user’s routine financial activities, in contrast to existing approaches that require manual tracking or offer only piecemeal reward mechanisms. By directly linking debt accounts with a digital wallet and leveraging various revenue streams generated from the user’s everyday transactions, a substantial reduction in administrative burdens is achieved. This eliminates reliance on consistent user engagement for making scheduled payments, while also avoiding the fragmentation of rewards or accrued amounts that often remain unused due to the extra steps required to convert them into debt payments. As a result, users benefit from an automated method that channelizes both commissions from merchant partners and transaction fees into their outstanding obligations, effectively turning their daily purchases and other financial operations into incremental pathways for diminishing debt.
[0020] An additional advantage of the claimed embodiments emerges in scenarios where debt has already entered a collections phase. By offering an integrated mechanism that diverts a portion of the revenue from each transaction or sale commission directly to collectors or lenders, the system provides a structured repayment avenue without compelling the user to take discrete action every time funds become available. This continuous, hassle-free approach to settling arrears not only helps individuals repair their financial standing more efficiently but also grants lenders a morepredictable and timely route to recoup otherwise stagnant accounts. Furthermore, because the system incorporates straightforward tracking of these contributions, users gain an immediate understanding of how each transaction impacts their outstanding balances, reinforcing disciplined financial habits and reducing the risk of unintentional delinquency.
[0021] Referring now to the drawing figures in which like reference designators refer to like elements, there is shown in FIG. 1 an illustration of a block diagram showing the network architecture of a system 100 and method for facilitating repayment of debts over a communications network in accordance with one embodiment. A prominent element of FIG. 1 is the server 102 associated with repository or database 104 and further communicatively coupled with network 106, which can be a circuit switched network, such as the Public Service Telephone Network (PSTN), or a packet switched network, such as the Internet or the World Wide Web, the global telephone network, a cellular network, a mobile communications network, a satellite communications network, or any combination of the above. Server 102 is a central controller or operator for functionality of the disclosed embodiments, namely, facilitating repayment of debts.
[0022] FIG. 1 includes mobile computing devices 112, 114, which may be smart phones, mobile phones, tablet computers, handheld computers, wearable computers, device-paired or independently networked smartwatches, laptops, or the like. Mobile computing devices 112, 114 correspond to users 111 and 113, respectively. In another embodiment, mobile computing devices 112, 114, are workstations, desktop computers, servers, laptops, all-in-one computers, or the like. In another embodiment, mobile computing devices 112, 114, are AR or VR systems that may include display screens, headsets, heads up displays, helmet mounted display screens, tracking devices, or the like. FIG. 1 also shows a server, computer, or computing device 160, 170, whichcorrespond to merchants and lenders, described in more detail below. Devices 112, 114, 160, 170 may be communicatively coupled with network 106 in a wired or wireless fashion.
[0023] FIG. 1 further shows that server 102 includes a database or repository 104, which may be a relational database comprising a Structured Query Language (SQL) or NoSQL database. Devices 112, 114, 160, 170 may also each include their own database. The repository 104 serves data from a database, which is a repository for data used by server 102 and devices 112, 114, 160, 170 during the course of operation of the disclosed embodiments. Database 104 may be distributed over one or more nodes or locations that are connected via network 106.
[0024] The database 104 may include a user record for each user 111 or 113. A user record may include contact / identifying information for the user (name, address, telephone number(s), email address, etc.), information pertaining to debts or accounts associated with the user, contact / identifying information for the creditors of the user, electronic payment information for the user, sales transaction data associated with the user, etc. A user record may also include a unique identifier for each user, a residential address for each user, the current location of each user (based on location-based services from the user’s mobile computer) and a description of past debts or accounts of each user. A user record may further include demographic data for each user, such as age, sex, income data, race, color, marital status, etc. A user record may further include sales transaction data and debt account records, as described below.
[0025] Sales transaction data may include one or more service identifiers (such as SKUs), one or more service amounts, buyer contact / identifying information, and electronic payment information. In one embodiment, electronic payment information may comprise buyer contact / identifying information and any data garnered from a purchase card (i.e., purchase card data), as well as any authentication information that accompanies the purchase card. Purchase carddata may comprise any data garnered from a purchase card and any authentication information that accompanies the purchase card. In one embodiment, electronic payment information may comprise user login data, such as a login name and password, or authentication information, which is used to access an account that is used to make a payment.
[0026] The database 104 may include a debt account record for each user. A debt account record may include current balances on the account, daily balances on the account, monthly balances on the account, activity associated with the account, timestamps on all activity associated with the account, etc. A debt account record may also include transactions on the account, partner merchants associated with the account, how merchant commissions are calculated, identification of the digital wallet of the user, how a designated portion of each merchant commission and / or each transaction fee is allocated to the debt account, etc.
[0027] FIG. 1 shows an embodiment wherein networked computing devices 112, 114, 160, 170 interact with server 102 and repository 104 over the network 106. It should be noted that although FIG. 1 shows only the networked computers 112, 114, 160, 170 and 102, the system of the disclosed embodiments supports any number of networked computing devices connected via network 106. Further, server 102, and units 112, 114, 160, 170 include program logic such as computer programs, mobile applications, executable files or computer instructions (including computer source code, scripting language code or interpreted language code that may be compiled to produce an executable file or that may be interpreted at run-time) that perform various functions of the disclosed embodiments.
[0028] Note that although server 102 is shown as a single and independent entity, in one embodiment, the functions of server 102 may be integrated with another entity, such as one of the devices 112, 114, 160, 170. Further, server 102 and its functionality, according to a preferredembodiment, can be realized in a centralized fashion in one computer system or in a distributed fashion wherein different elements are spread across several interconnected computer systems.
[0029] FIG. 1 also shows a partner merchant 160. FIG. 1 also shows a lender 170. Server 102 may interface with partner merchant 160 and lender 170 during the course of operation. Partner merchant 160 represents any commercial entity that enters into an agreement to provide commissions or other remunerations to the system based on qualifying user transactions. When a user, operating through a digital wallet or other interface associated with server 102, completes a purchase or engagement with partner merchant 160, details of that transaction may be transmitted to server 102. These details can include data regarding the purchased goods or services, the associated transaction amount, and any applicable commission that results from the user’s participation in a merchant- affiliate program. Server 102 is thus capable of identifying the relevant commission arrangements, processing the data to determine an appropriate portion of revenue to be allocated toward the user’s debt repayment, and subsequently updating records that track the user’s outstanding balances.
[0030] Lender 170, in turn, may act as the holder of the user’s debt account, a repository for the system’s operating funds, or both, depending on the specific financial setup. During operation, server 102 interfaces with lender 170 to initiate transfers of funds that have been earmarked for debt repayment. These transfers may occur in real time, upon confirmation of a transaction, or at predetermined intervals. Server 102 and lender 170 communicate in a manner consistent with standard secure protocols, facilitating rapid reconciliation of the user’s debt account and ensuring that the allocated funds are accurately applied. As part of this interaction, server 102 can also retrieve updated information regarding the user’s debt balance from lender 170, enabling the system to present an up-to-date status of each repayment effort via the user-facing interface. By coordinating data flows between partner merchant 160 and lender 170, the server 102 maintains a comprehensive record of how individual purchase transactions incrementally reduce outstanding obligations, further enhancing the transparency and convenience of the repayment process.
[0031] The process of facilitating repayment of debts over a communications network will now be described with reference to Figures 2-3 below. Figures 2-3 depict the data flow and control flow of the general process (and sub-processes) for facilitating repayment of debts over a communications network 106, according to one embodiment. In Figures 2-3, any data provided by user 111 via device 112, is referred to as data 202, any data provided by user 113 via device 114 is referred to as data 204. Also, any data merchant 160 provides to server 102 is referred to as data 206. Also, any payment server 102 provides to lender 170 is referred to as payment 208.
[0032] FIG. 3 is a flow chart depicting the general control flow of a process for facilitating repayment of debts over a communications network, according to one embodiment. The process of the disclosed embodiments begins in FIG. 3 with optional step 302 (see flowchart 300), wherein the users 111 and 113 may enroll or register with server 102. In the course of enrolling or registering, the users may enter data into their device by manually entering data into a mobile application via keypad, touchpad, or via voice. In the course of enrolling or registering, the users may enter any data that may be stored in a user record, as defined above. Also, in the course of enrolling or registering, the server 102 may generate a user record for each registering user and store the user record in an attached database, such as database 104.
[0033] In step 304, a user, such as users 111, 113, accumulates a debt that may be owned by a lender 170. This debt is represented in a record stored on server 102 or within a data structure at lender 170. The record may include attributes such as a principal amount, current balance,applicable interest rate, or other relevant details. Information regarding this debt is made accessible to the digital wallet so that an automated system can be configured to direct funds toward repayment. By storing predefined allocation values, such as percentages of merchant commissions and / or transaction fees, in a data structure accessible by the digital wallet, the system ensures that future steps reflect the designated distribution rules for each user transaction.
[0034] In step 306, the user’s digital wallet is linked to the debt via server 102. This linkage may occur through a mobile application or other interface that enables secure communication with the lender 170. During this linking process, user account credentials and debt account identifiers are associated with the digital wallet, thereby allowing the wallet to recognize future transactions that trigger a repayment allocation. In some embodiments, this linking process also configures ledger functionality within the digital wallet so that each contribution to the debt balance can be tracked and itemized over time.
[0035] In step 308, server 102 receives transaction data representing a purchase or payment event initiated by the user through the digital wallet. The transaction data may include details such as the purchase amount, date, location, and identity of the merchant or vendor. This data is evaluated against partner merchant 160 records to confirm whether a commission applies and to identify if additional incentives, such as higher commission rates, are in effect. The system may analyze the user’s transaction history to generate recommendations for partner merchants that offer enhanced incentives or more favorable commission rates, further encouraging repayment contributions and aligning closely with the user’s financial goals.
[0036] In step 310, server 102 determines whether the transaction involves at least one partner merchant, and if so, calculates a merchant commission associated with that merchant. In addition, the system assesses a transaction fee for the purchase or payment event. Both the commissionand / or the fee may be calculated in real time, enabling the system to allocate portions of these amounts immediately if desired. Alternatively, the system can store interim records and perform allocations on a scheduled basis at predetermined intervals. Regardless of the timing, these calculations account for predefined percentages stored in a data structure linked to the digital wallet, ensuring that a consistent percentage of commissions and fees is set aside for debt repayment.
[0037] In step 312, server 102 allocates a designated portion of each merchant commission and / or transaction fee to the debt account, effectively reducing the outstanding balance owed to the lender. This allocation may be initiated instantly upon transaction approval or executed in periodic batches, depending on the user’s settings or the system’s configuration. Upon successful allocation, a confirmation message may be sent to the user via in-app notification, text message, or email. Additionally, the digital wallet maintains a ledger that logs these allocations, with each line item linking the specific commission or fee to the associated purchase. By logging every step of the allocation process, the system provides transparency and easy reference for both users and lenders.
[0038] Finally, in step 314, server 102 updates the outstanding balance of the debt account in a data store and provides a user interface or a report reflecting the updated balance and recent contributions from merchant commissions and / or transaction fees. The updated balance may be retrieved from lender 170 in real time, allowing users to see an immediate reduction in their obligations. The user interface or report can display a comprehensive summary, itemizing each payment or contribution, and highlighting how much of the debt has been reduced within a given period. In some embodiments, notifications are generated when specific debt-reduction milestonesare reached, providing the user with positive reinforcement and clear evidence of the impact of daily transactions on long-term debt repayment.
[0039] In certain embodiments, the server system maintains one or more structured data records within the database that define parameters governing the allocation of transaction-derived funds toward repayment of a debt account. For example, each debt account record may include allocation parameters specifying one or more predefined percentages of transaction-derived funds that are to be applied toward repayment of the corresponding debt account. The transaction-derived funds may include merchant commissions associated with partner merchants, transaction processing fees associated with digital wallet transactions, or both. The allocation parameters may be configurable by the system operator, the lender, or the user and may specify different allocation percentages for different types of transactions, merchants, or promotional campaigns.
[0040] In some embodiments, the server system maintains commission rules in the database that define how merchant commissions are determined for transactions involving partner merchants. These commission rules may specify, for example, a percentage of a transaction amount, a fixed commission amount, tiered commission structures based on transaction volume, promotional multipliers, or other incentive structures defined by participating partner merchants. When transaction data is received by the server system, the server may execute a commission calculation process or routine that accesses the stored commission rules and calculates a merchant commission value associated with the transaction.
[0041] The database may further store allocation records corresponding to individual transactions processed by the system. Each allocation record may represent an instance in which a portion of a merchant commission or transaction processing fee is applied toward repayment of a debt account. In some implementations, the allocation record may include identifiers for thecorresponding transaction, the associated user account, the merchant identifier, the allocated amount applied toward the debt account, and a timestamp associated with the allocation event.
[0042] The server system may also maintain a transaction ledger within the database that records a history of allocations applied toward repayment of one or more debt accounts. The transaction ledger may comprise a collection of allocation records organized in association with the relevant user account or debt account. In certain embodiments, the ledger stores information linking each allocation to the specific transaction from which the commission or fee originated and may additionally maintain aggregated totals representing cumulative amounts applied toward repayment of the debt account over time.
[0043] In some implementations, the server system may maintain one or more partnermerchant records identifying merchants that participate in a merchant commission program. Such records may store merchant identifiers, commission rules applicable to transactions involving the merchant, promotional information, and other metadata associated with the merchant’s participation in the program. When transaction data is received by the server system, the system may access the partner-merchant records to determine whether the merchant associated with the transaction participates in the commission program and, if so, retrieve the corresponding commission rules.
[0044] The server system may therefore execute a sequence of automated processing operations in which transaction data is received, commission values or transaction processing fees are determined, allocation parameters are retrieved from the database, and a portion of the commission or fee is automatically allocated toward repayment of a debt account. The server system may generate corresponding allocation records and update the debt account balanceaccordingly while maintaining a ledger that records the allocation event and its relationship to the originating transaction.
[0045] In certain embodiments, the allocation of funds toward the debt account may occur substantially in real time in response to receipt of transaction data. In other embodiments, the allocation may occur on a scheduled basis, such as at periodic intervals during which accumulated commissions or transaction fees are aggregated and applied toward the outstanding balance of the debt account
[0046] FIG. 4 is a block diagram of a system including an example computing device 400 and other computing devices. Consistent with the embodiments described herein, the aforementioned actions performed by 112, 114, 160, 170. 102 may be implemented in a computing device, such as the computing device 400 of FIG. 4. Any suitable combination of hardware, software, or firmware may be used to implement the computing device 400. The aforementioned system, device, and processors are examples and other systems, devices, and processors may comprise the aforementioned computing device. Furthermore, computing device 400 may comprise an operating environment for system 100 and process 300, as described above. Process 300 may operate in other environments and are not limited to computing device 400.
[0047] With reference to FIG. 4, a system consistent with an embodiment may include a plurality of computing devices, such as computing device 400. In a basic configuration, computing device 400 may include at least one processing unit 402 and a system memory 404. Depending on the configuration and type of computing device, system memory 404 may comprise, but is not limited to, volatile (e.g., random-access memory (RAM)), non-volatile (e.g., read-only memory (ROM)), flash memory, or any combination or memory. System memory 404 may include operating system 405, and one or more programming modules 406. Operating system 405, forexample, may be suitable for controlling computing device 400's operation. In one embodiment, programming modules 406 may include, for example, a program module 407 for executing the actions of 112, 114, 160, 170, 102. Furthermore, embodiments may be practiced in conjunction with a graphics library, other operating systems, or any other application program and are not limited to any particular application or system. This basic configuration is illustrated in FIG. 4 by those components within a dashed line 420.
[0048] Computing device 400 may have additional features or functionality. For example, computing device 400 may also include additional data storage devices (removable and / or nonremovable) such as, for example, magnetic disks, optical disks, or tape. Such additional storage is illustrated in FIG. 4 by a removable storage 409 and a non-removable storage 410. Computer storage media may include volatile and nonvolatile, removable, and non-removable media implemented in any method or technology for storage of information, such as computer readable instructions, data structures, program modules, or other data. System memory 404, removable storage 409, and non-removable storage 410 are all computer storage media examples (i.e., memory storage.) Computer storage media may include, but is not limited to, RAM, ROM, electrically erasable read-only memory (EEPROM), flash memory or other memory technology, CD-ROM, digital versatile disks (DVD) or other optical storage, magnetic cassettes, magnetic tape, magnetic disk storage or other magnetic storage devices, or any other medium which can be used to store information, and which can be accessed by computing device 400. Any such computer storage media may be part of device 400. Computing device 400 may also have input device(s) 412 such as a keyboard, a mouse, a pen, a sound input device, a camera, a touch input device, etc. Output device(s) 414 such as a display, speakers, a printer, etc. may also be included. Computing device 400 may also include a vibration device capable of initiating a vibration in thedevice on command, such as a mechanical vibrator or a vibrating alert motor. The aforementioned devices are only examples, and other devices may be added or substituted.
[0049] Computing device 400 may also contain a network connection device 415 that may allow device 400 to communicate with other computing devices 418, such as over a network in a distributed computing environment, for example, an intranet or the Internet. Device 415 may be a wired or wireless network interface controller, a network interface card, a network interface device, a network adapter, or a LAN adapter. Device 415 allows for a communication connection 416 for communicating with other computing devices 418. Communication connection 416 is one example of communication media. Communication media may typically be embodied by computer readable instructions, data structures, program modules, or other data in a modulated data signal, such as a carrier wave or other transport mechanism, and includes any information delivery media. The term "modulated data signal" may describe a signal that has one or more characteristics set or changed in such a manner as to encode information in the signal. By way of example, and not limitation, communication media may include wired media such as a wired network or direct-wired connection, and wireless media such as acoustic, radio frequency (RF), infrared, and other wireless media. The term computer readable media as used herein may include both computer storage media and communication media.
[0050] As stated above, a number of program modules and data files may be stored in system memory 404, including operating system 405. While executing on processing unit 402, programming modules 406 (e.g., program module 407) may perform processes including, for example, one or more of the stages of the process 300, as described above. The aforementioned processes are examples, and processing unit 402 may perform other processes. Other programming modules that may be used in accordance with embodiments herein may include electronic mailand contacts applications, word processing applications, spreadsheet applications, database applications, slide presentation applications, drawing or computer-aided application programs, etc.
[0051] Generally, consistent with embodiments herein, program modules may include routines, programs, components, data structures, and other types of structures that may perform particular tasks or that may implement particular abstract data types. Moreover, embodiments herein may be practiced with other computer system configurations, including hand-held devices, multiprocessor systems, microprocessor-based or programmable consumer electronics, minicomputers, mainframe computers, and the like. Embodiments herein may also be practiced in distributed computing environments where tasks are performed by remote processing devices that are linked through a communications network. In a distributed computing environment, program modules may be located in both local and remote memory storage devices.
[0052] Furthermore, embodiments herein may be practiced in an electrical circuit comprising discrete electronic elements, packaged or integrated electronic chips containing logic gates, a circuit utilizing a microprocessor, or on a single chip (such as a System on Chip) containing electronic elements or microprocessors. Embodiments herein may also be practiced using other technologies capable of performing logical operations such as. for example, AND, OR, and NOT, including but not limited to mechanical, optical, fluidic, and quantum technologies. In addition, embodiments herein may be practiced within a general-purpose computer or in any other circuits or systems.
[0053] Embodiments herein, for example, are described above with reference to block diagrams and / or operational illustrations of methods, systems, and computer program products according to said embodiments. The functions / acts noted in the blocks may occur out of the order as shown in any flowchart. For example, two blocks shown in succession may in fact be executedsubstantially concurrently or the blocks may sometimes be executed in the reverse order, depending upon the functionality / acts involved.
[0054] In an alternative embodiment, the system is configured not only to allocate merchant commissions and / or transaction fees toward repayment of a debt balance, but also to dynamically reduce an interest rate associated with the debt account based on the generation of merchant commissions and / or transaction fees attributable to the user. In this embodiment, server 102 is configured to track cumulative merchant commissions and / or transaction fees generated through transactions conducted via the digital wallet associated with the user. Based on predefined criteria stored in database 104, server 102 determines whether such commissions and / or transaction fees meet one or more interest-rate reduction thresholds.
[0055] Upon satisfaction of a threshold condition, server 102 transmits an instruction to lender 170 to adjust an interest rate parameter associated with the debt account, thereby reducing the cost of borrowing for the user. In some embodiments, the interest rate adjustment is applied automatically and reflected in the debt account record maintained in database 104.
[0056] In some embodiments, the interest rate reduction is communicated to the user prior to or contemporaneously with the establishment of the debt account, such that the user is informed that generating merchant commissions and / or transaction fees through partner merchant transactions may qualify the user for lower borrowing costs. This pre-disclosed incentive structure enables the user to actively participate in reducing their borrowing costs by generating economic activity within the system.
[0057] In some embodiments, interest rate reductions may be structured in tiers corresponding to cumulative commissions and / or transaction fees generated over a defined period of time. For example, a first threshold level may correspond to a first reduction in interest rate,while additional thresholds correspond to progressively lower interest rates. These adjustments may be applied automatically by server 102 in communication with lender 170 and reflected in the debt account record maintained in database 104.
[0058] In some embodiments, the interest rate adjustment may be applied temporarily, permanently, or conditionally based on continued participation by the user in generating merchant commissions and / or transaction fees. Server 102 may further provide a user interface displaying the current interest rate, qualifying thresholds, progress toward additional reductions, and historical rate adjustments resulting from commissions and / or fees generated.
[0059] In another embodiment, the system is configured to facilitate debt repayment and / or interest rate reduction for corporate entities based on merchant commissions and / or transaction fees generated by employees of the corporate entity. In this embodiment, a corporate digital wallet or corporate account is associated with a corporate debt account maintained by lender 170. The corporate account may be linked to one or more individual employee digital wallets, employee identifiers, payroll accounts, or transaction credentials, thereby enabling server 102 to track and attribute merchant commissions and / or transaction fees generated by employees to the corporate entity.
[0060] Server 102 aggregates merchant commissions and / or transaction fees generated by employees through transactions conducted via employee digital wallets and allocates a designated portion of such aggregated commissions and / or transaction fees toward repayment of the corporate debt account. Allocation may occur in real time, periodically, upon reaching predefined thresholds, or in response to triggering events defined in data structures stored in database 104.
[0061] In addition to principal repayment, server 102 may determine whether cumulative merchant commissions and / or transaction fees generated by employees satisfy one or morepredefined interest-rate reduction thresholds. Upon satisfaction of such thresholds, server 102 may transmit instructions to lender 170 to adjust an interest rate parameter associated with the corporate debt account, thereby reducing borrowing costs for the corporate entity.
[0062] In certain embodiments, the corporate entity may be informed, prior to or contemporaneously with issuance of the debt, that employee participation in transactions involving partner merchants may result in reduced interest rates, accelerated repayment, rebates, credits, or other financial benefits. This disclosed incentive structure enables the corporate entity to strategically encourage employee participation in the system.
[0063] In a further embodiment, the corporate entity may actively distribute funds to employee digital wallets integrated with the system. Such distributed funds may include payroll, salary payments, bonuses, commissions, stipends, expense reimbursements, benefits allocations, or other monetary value. Distribution may occur through direct integration with payroll systems or through corporate treasury interfaces linked to server 102.
[0064] Upon distribution of such funds, employees may conduct transactions through their digital wallets with partner merchants or through transaction channels integrated into the system. Server 102 tracks merchant commissions and / or transaction fees generated from such transactions and attributes the generated commissions and / or transaction fees, in whole or in part, to the corporate debt account for purposes of principal reduction and / or qualification for interest rate adjustments.
[0065] In some embodiments, the corporate entity may define transaction parameters governing distributed funds, including but not limited to partner-merchant restrictions, merchant category filters, minimum transaction thresholds, commission qualification rules, routingrequirements, or spending designations. Server 102 may programmatically enforce such parameters to increase the likelihood of commission and / or transaction fee generation.
[0066] In certain embodiments, the system may calculate and present to the corporate entity a performance metric indicating the relationship between distributed funds (including payroll) and resulting debt reduction and / or borrowing cost reductions. Such metrics may include retum-on-distributed-capital calculations, commission-generation efficiency ratios, projected interest savings, or debt amortization acceleration forecasts.
[0067] In some embodiments, the corporate entity may optionally share a portion of financial benefits resulting from employee- generated commissions and / or transaction fees with participating employees, thereby establishing a dual-incentive structure in which both the corporate entity and employees benefit from participation in the system.
[0068] The system may maintain records in database 104 attributing commissions and / or transaction fees to individual employees while also maintaining aggregated corporate-level records. Such records may be accessible through administrative dashboards provided to corporate administrators and may be transmitted to lender 170 as part of interest adjustment determinations or repayment reconciliations.
[0069] Advantageously, this embodiment transforms corporate payroll distribution, expense disbursement, and employee transaction activity into an integrated financial optimization mechanism whereby ordinary corporate fund flows generate merchant commissions and / or transaction fees that reduce corporate debt balances and / or borrowing costs.
[0070] In some embodiments, the server system is configured to determine and process transaction-derived economic value associated with transactions conducted through the digitalwallet or other transaction channels integrated with the system. As used herein, transaction-derived economic value may include any monetary or monetary-equivalent value generated, earned, credited, accrued, or otherwise derived from a transaction or series of transactions. By way of example and not limitation, transaction-derived economic value may include merchant commissions, transaction processing fees, interchange-related amounts, referral fees, affiliate revenue, rebates, incentive payments, promotional credits, cash-back amounts, shared revenue amounts, rewards convertible to monetary value, and other transaction-related remuneration arising from participation in a transaction ecosystem, partner program, payment network, promotional arrangement, or merchant relationship.
[0071] In certain embodiments, the system may apply such transaction-derived economic value not only toward repayment of principal or other outstanding balances, but also toward one or more parameter adjustments associated with the debt account or another financial account linked to the user or to a corporate entity. As used herein, a parameter adjustment may include any modification, revision, recalculation, or reconfiguration of a value, setting, condition, threshold, or term associated with an account, transaction stream, repayment program, or lending arrangement. Parameter adjustments may be triggered automatically by server 102 based on predefined rules, cumulative transaction-derived economic value, threshold satisfaction, user status, merchant participation, time periods, transaction patterns, or other criteria stored in database 104.
[0072] In some embodiments, the parameter adjustment comprises adjustment of a borrowing parameter associated with a debt account. As used herein, a borrowing parameter may include any parameter, term, condition, or characteristic affecting the cost, availability, timing, or structure of borrowed funds or debt repayment. Examples of borrowing parameters include,without limitation, an interest rate, annual percentage rate, promotional rate, default rate, repayment term, amortization schedule, payment due date, minimum payment amount, credit limit, borrowing capacity, utilization threshold, grace period, penalty amount, late fee condition, eligibility for refinancing, eligibility for debt restructuring, collateral requirement, and any other loan or credit- account term that may be adjusted by lender 170 or by server 102 in communication with lender 170.
[0073] In certain implementations, server 102 may determine that cumulative transaction-derived economic value satisfies one or more criteria for adjusting a borrowing parameter and may responsively transmit instructions, notifications, or update messages to lender 170 to cause the corresponding borrowing parameter to be modified. Such adjustments may include, for example, reducing an interest rate, extending a repayment period, lowering a required payment amount, increasing available credit, waiving a fee, modifying an amortization schedule, or applying another favorable lending adjustment based on transaction activity attributable to the user or to a related entity. The resulting parameter adjustments may be stored in database 104, reflected in the debt account record, and presented through one or more user interfaces or administrative dashboards.
[0074] While certain embodiments have been described, other embodiments may exist. Furthermore, although embodiments herein have been described as being associated with data stored in memory and other storage mediums, data can also be stored on or read from other types of computer-readable media, such as secondary storage devices, like hard disks, floppy disks, or a CD-ROM, or other forms of RAM or ROM. Further, the disclosed methods' stages may be modified in any manner, including by reordering stages, and / or inserting or deleting stages, without departing from the claimed subject matter.
[0075] Although the subject matter has been described in language specific to structural features and / or methodological acts, it is to be understood that the subject matter defined in the appended claims is not necessarily limited to the specific features or acts described above. Rather, the specific features and acts described above are disclosed as example forms of implementing the claims.
[0076] What is claimed is:
Claims
CLAIMS:
1. A computer-implemented method executed by a server system communicatively coupled over a communications network to at least one user computing device, at least one partnermerchant computing system, and at least one lender computing system, the server system including a database storing user records and debt account records, the method comprising:a) storing, in the database of the server system, a user record associated with a user computing device and a debt account record identifying a debt account maintained by the lender computing system;b) linking, by the server system, a digital wallet associated with the user computing device to the debt account record by storing, within the database, an association between (i) digital wallet identification data and (ii) the debt account record;c) receiving, at the server system via a network interface, transaction data transmitted over the communications network from the user computing device or the partner-merchant computing system, the transaction data including at least a transaction amount, merchant identification data, and electronic payment information associated with the digital wallet;d) accessing, by the server system, partner-merchant records stored in the database to determine whether the merchant identification data corresponds to a partner merchant participating in a merchant-commission program;e) in response to determining that the transaction involves the partner merchant, executing, by the server system, a commission calculation routine that determines a merchant commission value associated with the transaction based on predefined commission rules stored in the database;f) assessing, by the server system, a transaction processing fee associated with processing the transaction through the digital wallet;g) retrieving, from the database, allocation parameters stored in the debt account record that specify a predefined percentage of merchant commissions and / or transaction fees to be applied to repayment of the debt account;h) automatically allocating, by the server system, at least one of (i) the merchant commission value determined in step (e) or (ii) the transaction processing fee assessed in step (f) to the debt account by generating an allocation record in the database that associates the allocated amount with the transaction data;i) transmitting, from the server system to the lender computing system over the communications network, payment data instructing application of the allocated amount to the debt account;j) updating, in the database, the debt account record to reflect a reduced outstanding balance based on the allocated amount; andk) maintaining, by the server system, a transaction ledger stored in the database that records each allocation of merchant commission or transaction fee applied toward the debt account and associates the allocation with the corresponding transaction data.
2. The method of claim 1, wherein the allocation parameters stored in the debt account record comprise at least one predefined percentage value specifying a portion of merchant commissions and / or transaction processing fees to be allocated to the debt account.
3. The method of claim 2, further comprising transmitting, by the server system to the user computing device, a confirmation message indicating successful allocation of the predefined percentage of the merchant commission and / or transaction processing fee to the debt account.
4. The method of claim 3, wherein automatically allocating the predefined percentage of the merchant commission and / or transaction processing fee to the debt account is performed substantially in real time in response to receipt of the transaction data.
5. The method of claim 3, wherein automatically allocating the predefined percentage of the merchant commission and / or transaction processing fee to the debt account is performed on a scheduled basis at predetermined time intervals.
6. The method of claim 1, wherein the digital wallet associated with the user computing device is implemented within a mobile application executed by the user computing device, the mobile application being configured to communicate transaction data to the server system.
7. The method of claim 1, wherein maintaining the transaction ledger further comprises storing, in association with each allocation record, an identifier of the corresponding transaction and an aggregated total of funds applied toward repayment of the debt account.
8. The method of claim 1 , further comprising analyzing transaction data stored in the database to identify transaction patterns of the user and generating, by the server system, recommendations identifying partner merchants associated with increased commission values.
9. The method of claim 1, further comprising generating a graphical user interface accessible from the user computing device that displays a summary of merchant commission allocations and transaction fee allocations applied toward the debt account and indicates a corresponding reduction in an outstanding balance of the debt account.
10. The method of claim 9, further comprising generating a notification transmitted to the user computing device when the outstanding balance of the debt account reaches a predefined debtreduction milestone based on accumulated merchant commission allocations and / or transaction fee allocations.
11. A debt repayment processing system comprising:a server system communicatively coupled over a communications network to at least one user computing device, at least one partner-merchant computing system, and at least one lender computing system, the server system including at least one processor, a network interface, and a database storing user records and debt account records, wherein the at least one processor is configured to execute instructions that cause the server system to:a) store, in the database, a user record associated with the user computing device and a debt account record identifying a debt account maintained by the lender computing system:b) link a digital wallet associated with the user computing device to the debt account record by storing, within the database, an association between (i) digital wallet identification data and (ii) the debt account record;c) receive, via the network interface, transaction data transmitted over the communications network from the user computing device or the partner-merchant computing system, the transaction data including at least a transaction amount, merchant identification data, and electronic payment information associated with the digital wallet;d) access partner-merchant records stored in the database to determine whether the merchant identification data corresponds to a partner merchant participating in a merchantcommission program;e) in response to determining that the transaction involves the partner merchant, execute a commission calculation routine that determines a merchant commission value associated with the transaction based on predefined commission rules stored in the database;f) assess a transaction processing fee associated with processing the transaction through the digital wallet;g) retrieve, from the database, allocation parameters stored in the debt account record that specify a predefined percentage of merchant commissions and / or transaction fees to be applied to repayment of the debt account;h) automatically allocate at least one of (i) the merchant commission value determined in step (e) or (ii) the transaction processing fee assessed in step (f) to the debt account by generating an allocation record in the database that associates an allocated amount with the transaction data;i) transmit, via the network interface, payment data to the lender computing system instructing application of the allocated amount to the debt account;j) update the debt account record in the database to reflect a reduced outstanding balance based on the allocated amount; andk) maintain a transaction ledger stored in the database that records each allocation of merchant commission or transaction fee applied toward the debt account and associates the allocation with the corresponding transaction data.
12. The system of claim 11, wherein the allocation parameters stored in the debt account record comprise at least one predefined percentage value specifying a portion of merchant commissions or transaction processing fees to be allocated to the debt account.
13. The system of claim 12, wherein the processor is further configured to transmit, to the user computing device, a confirmation message indicating successful allocation of the predefined percentage of the merchant commission or transaction processing fee to the debt account.
14. The system of claim 13, wherein the processor is configured to automatically allocate the predefined percentage of the merchant commission or transaction processing fee substantially in real time in response to receipt of the transaction data.
15. The system of claim 13, wherein the processor is configured to automatically allocate the predefined percentage of the merchant commission or transaction processing fee on a scheduled basis at predetermined time intervals.
16. A computer-implemented method executed by a server system communicatively coupled to one or more user computing devices, one or more partner- merchant computing systems, and a lender computing system over a communications network, the method comprising:monitoring transactions conducted through digital wallets associated with one or more users;determining transaction-derived economic value generated from the transactions, the economic value comprising merchant commissions, transaction processing fees, or other transaction-related remuneration;allocating at least a portion of the transaction-derived economic value toward repayment of a debt account associated with the one or more users; andadjusting at least one borrowing parameter associated with the debt account based on cumulative transaction-derived economic value generated through the transactions.
17. The method of claim 16, wherein adjusting the borrowing parameter comprises reducing an interest rate associated with the debt account when the cumulative transaction-derived economic value satisfies one or more predefined thresholds stored in a database accessible by the server system.
18. The method of claim 17, wherein multiple thresholds correspond to progressively reduced interest rates, and wherein the server system automatically adjusts the interest rate in response to determining that a respective threshold has been satisfied.
19. The method of claim 16, wherein the debt account is associated with a corporate entity and wherein the server system:links a plurality of employee digital wallets to the corporate entity;tracks transaction-derived economic value generated through transactions conducted by the employees; andaggregates the transaction-derived economic value generated by the employees for application toward repayment of the corporate debt account and / or adjustment of a borrowing parameter associated with the corporate debt account.
20. The method of claim 19, further comprising distributing funds from the corporate entity to the employee digital wallets, the distributed funds comprising payroll, salary payments, bonuses, stipends, reimbursements, or other compensation, and enforcing transaction parameters governing use of the distributed funds to increase generation of transaction-derived economic value that is allocated toward repayment of the corporate debt account and / or qualification for borrowing-