Classifications

• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q20/00—Payment architectures, schemes or protocols
  • G06Q20/02—Payment architectures, schemes or protocols involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q20/00—Payment architectures, schemes or protocols
  • G06Q20/08—Payment architectures
  • G06Q20/10—Payment architectures specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
  • G06Q20/102—Bill distribution or payments
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q20/00—Payment architectures, schemes or protocols
  • G06Q20/22—Payment schemes or models
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
  • G06Q40/02—Banking, e.g. interest calculation or account maintenance

Definitions

• the present invention generally relates to the field of financial credit transactions. More specifically, the present invention relates to a system and method for facilitating financial credit installments.
• Possible reasons for such behavior may include:
• the financing solutions are provided by a variety of sources, some providing a general purpose loan, not linked to a specific purchase, and others link the "loan" to a specific purchase/product/service. For example:
• the revolving instrument is a common worldwide credit card industry solution of general purpose loans. In the revolving method, a card holder can decide how much of his monthly credit card expenses he would rather revolve to the next month (within certain limitations). [0010]
• the financing costs for such instrument are Annual Percent Rate (APR) derived from the national Federal interest rate. It is not fixed, and usually raises a lot above the Federal interest rate.
• APR Annual Percent Rate
• the revolving mechanism is common in the US consumer credit market, due to the popularity of credit cards as a monetary instrument (over 150 million cards in the year 2006), where more than 60% of card holders are using revolving credit line on their cards.
• the purchased product is registered as a grantee for the given loan.
• the APRs for such loans vary between industries and are usually lower than the APR of the revolving' credit card APR's. This kind of credit loan is usually not preapproved as in the case of revolving credit card accounts.
• the Consumer may request to split a cost or payment required from the Customer in connection with the transaction into a set of partial repayments or installments such that the full transaction cost may be spread across the set of partial repayments, which partial repayments are spread across and made intermittently over some period of time.
• One or more credit providers may execute/provide full or partial payment for the transaction, to the merchant on behalf of the Consumer, on condition that the Consumer will repay the full transaction amount along with financing charges to the creditor using periodic partial repayments, wherein an outstanding repayment balance may substantially continuously be securitized by an intermittent re-securitization mechanism.
• the one or more credit providers executing a transaction related payment on behalf of the Customer may be secondary credit providers, which secondary credit provider may securitize any outstanding repayment balance against credit provided by a primary credit provider (e.g. Credit Card Issuer, Credit Card Underwriter, Credit Union or Bank, etc.).
• a primary credit provider e.g. Credit Card Issuer, Credit Card Underwriter, Credit Union or Bank, etc.
• An agreed upon schedule for the set of partial repayments amounts across an agreed period of time may be referred to as a repayment schedule and may be pre-defined or pre-determined.
• the repayment schedule e.g. recurring repayment date, period between partial repayments, repayment amount, etc.
• the repayment schedule may be selected by the Consumer, for example during the transaction or purchase.
• the repayment schedule may be altered or restructured (e.g. delayed repayments - extend period between repayments, accelerated repayments - reduce period between repayments, repayment date offset - change date of the month, repayment amount, etc.) after the transaction or purchase date. Re-securitization may be performed automatically in connection with the repayment schedule.
• the present invention is a system and method for facilitating a transaction.
• a merchant a Consumer/Customer of goods and/or services and/or monetary means (e.g. cash), which may be initiated at or through any point of access (e.g. online, point of sale, mobile point of sale, automatic teller machine; and/or any communication device, such as a mobile phone, or attachment thereof, and or any other point of access known today or to be devised in the future)
• the Consumer may request to split the transaction cost into a set of payments/installments, by which costs may be spread over a period of time.
• Said set of payments and said period of time may be pre-defined or pre-determined.
• a Consumer of goods and/or services and/or monetary means may request that a secondary credit provider pay the merchant the cost of the purchased goods and/or services.
• Said secondary credit provider may be any third party willing to finance said transaction (e.g. any financial institution, the merchant himself).
• there may be a party which organizes payment by installments and the operation of the transaction system described hereinafter (e.g. an independent third party, a merchant, a secondary credit provider, a primary credit provider).
• the secondary credit provider may provide the Consumer with repayment terms (e.g. monthly payments/installments) for the principle amount to be paid by the secondary provider and/or for financing fees (e.g. interest or any other kind of fees).
• the secondary credit provider may securitize the amounts to be paid to the merchant with a credit line provided to the Consumer by a primary credit provider (e.g. credit card company).
• a primary credit provider e.g. credit card company
• the financing party e.g. secondary credit provider
• the following types of monetary costs/fees/transactions may be securitized : actual costs of transactions; financial fees (e.g. as stated above); any additional fees, fines and/or penalties associated with secondary credit; payments for damages caused to goods, real estate and so on; payment of fees, fines and/or penalties associated with the underlying transaction; payment of taxes, insurance(s) and/or any other payment associated with the underlying transaction; payment(s) of fees and penalties associated with the organizing of the secondary credit, with organizing payment by installments, with organizing the use of the transaction system described hereinafter, and so on.
• the various costs, fees, penalties and/or damages may be distributed to partial payments (installments) according to various algorithms, including, but in no way limited to, the following cases: (i) each installment is of an equal amount; (ii) entire amount of several fees, or all fees, are included in the first installment; (iii) distribution of all above mentioned costs by virtually the same algorithm, in a manner substantially similar to the distribution of the interest in many real-estate loans; (iv) the cost, damages, fees and penalties associated with terminating/finishing/ending of the lease becomes a part of additional installment(s); (v) the cost, damages, fees and penalties associated with the premature termination of a transaction is added the current installment or the additional installment(s); (vi) the cost, damages, fees and penalties are added to the securitized amount based on algorithms that take into account probabilities and consumer profile, and other related considerations.
• the secondary credit provider may request from the primary credit provider partial payment of the authorized credit based on the agreed upon repayment terms between the secondary credit provider and the Consumer. Since each credit authorization expires either within a predefined period of time or based on some action, the secondary credit provider may re-securitize any remaining balance owed to it by the Consumer by intermittently re-requesting credit authorization for the remaining balance.
• the above re-securitization and money transfer cycle may be re-executed until all due payments are transferred to the secondary credit provider.
• said secondary credit provider may request the primary credit provider to transfer the full remaining balance from the Consumer to it, based on the last prior credit securitization performed.
• a methods and systems for facilitating credit based transactions associated with purchase of goods, services or real estate having a cost may be received over a data network.
• the cost of the transaction may then be securitized over a data network against a credit line provided by a primary credit provider.
• a secondary credit provider may fund the transaction.
• the secondary credit provider may intermittently receive partial payment of the transaction's cost and while intermittently re-securitizing an outstanding transaction balance.
• a transaction system may comprise of one or more transaction servers including a collective control logic adapted to: (1) receive over a data network the data indicating the cost of goods or service; (2) securitize over a data network the cost of the transaction against a credit line provided by a primary credit provider; (3) fund the transaction upon securitization; (4) intermittently receive partial payment from the primary credit provider; and (5) intermittently re-securitize an outstanding balance.
• a transaction between a merchant and a Customer may involve the merchant providing to the Customer goods, services, real estate, leasing services, financial services and/or any combination thereof.
• the transaction may be a conventional merchant transaction, an online transaction, a mobile transaction and/or any other type of transaction known today to be devised in the future.
• the merchant may be a retailer of goods and/or a provider of services such as: (1) financial services, (2) banking services, (3) leasing services, (4) communication services, (5) medical services, (6) travel services, (7) currency exchange service, or any other goods or services.
• the merchant may provide Customer with goods, services, cash or real estate: (1) at a manned point of sale (e.g. cash register), (2) through an automated apparatus (e.g. product dispenser, automatic teller machine, etc.), (3) through an online e-commerce site or through an online checkout application, and/or (4) via a mobile commerce system.
• a Customer may establish facilities or availability for transaction payment by the secondary creditor (secondary credit provider) either during or in advance of a given transaction.
• the Customer may provide personal and financial information including : (1) name, (2) address, (3) an identifications number (e.g. Social Security Number), and (4) one or more identifiers of primary creditor accounts (e.g. credit card accounts) against which the secondary creditor may secure repayment of payments made or other consideration extended by secondary creditor on behalf of the Customer.
• a Consumer of goods and/or services and/or monetary means may utilize a payment mechanism or token, such as a payment card or online payment application, provided by a secondary credit provider.
• a payment mechanism or token such as a payment card or online payment application
• Using the secondary credit provider's payment mechanism may cause the secondary credit provider to: (1) authenticate details of the transaction; (2) check availability of one or more primary credit-lines sufficient to cover the transaction amount, and (3) subject to (1) and (2), to pay the merchant the some or all of the cost of the purchased goods and/or services.
• the secondary credit provider may be any third party willing to finance said transaction (e.g. pay the merchant).
• partial payment of the transaction's cost may be received either from the primary credit provider, directly from a purchaser of the goods or service, or from any other individual(s) and/or entity(ies) on behalf of such purchaser. Furthermore, the cost of such a transaction may be received by any of the abovementioned means or a combination thereof.
• secondary credit provider may receive full balance payment from the primary credit provider or receive re-securitization from the same primary credit provider or from other credit provider(s) using different account(s) of the Consumer or account(s) of other individual(s) or entities (upon prior or present instruction of consumer and prior or present consent of such individual(s) and entities).
• partial payment may be received from the purchaser using direct transfer from the bank account or any other account of the purchaser; by using a check(s), or drafts, drawn against the purchaser's bank account or any other account, possibly as a 'bank check' - a check drawn against assets and/or general credit of the bank; by any debit card; by any credit card; by any financial instrument; by cash; by wire transfer; by token(s); by electronic payment(s) (including over the Internet); by electronic payment of tokens (e.g. 'web money'); and/or by any other method(s) known today or to be devised in the future.
• Any account, any debit card, any credit card and so on, does not necessary mean a purchaser's account or debit/credit card, but may refer to any account, debit/credit card and the like, of any other individual(s) or entity(ies).
• revolving credit with securitization may be used for payment of leasing (rent), payment for goods and/or services, or payment for real estate. Furthermore, such methods may be used for securitization of periodic payments (e.g. timed installments such as monthly payments); payments for damages to leased property or any other damages; payment of various fines, fees and penalties related to the credit; payment of various fines, fees and penalties related to the underlying transaction, including various fees, fines, and penalties related to the termination or finishing of the lease; and/or costs of taxes, insurances, communal payments and so on, related to the underlying transaction.
• periodic payments e.g. timed installments such as monthly payments
• payments for damages to leased property or any other damages e.g. timed installments such as monthly payments
• payments for damages to leased property or any other damages e.g. timed installments such as monthly payments
• payment of various fines, fees and penalties related to the credit e.g. timed installments such as monthly payments
• the revolving credit with securitization may allow the purchaser to avoid : bank guaranties, pre-payment for security deposit, cleaning fee, pre-payment for several rent periods/months, deposit for key, pre-payments for possible damages, and/or pre-payments for insurance, taxes and/or communal payments and any other prepayments).
• Figure 1 is a flow chart describing the stages and steps of an exemplary method for facilitating installment transactions, in accordance with some embodiments of the present invention
• Figure 2 is a table describing the modules of an exemplary system for facilitating transactions, in accordance with some embodiments of the present invention.
• Figure 3 is an image of an exemplary transaction payment arrangement, in accordance with some embodiments of the present invention.
• Figure 4 is a table describing the modules of an exemplary system for facilitating transactions comprising a consumer interface module, a merchant interface module and a primary credit provider(s) interface module, in accordance with some embodiments of the present invention.
• Figures 5-12 are various exemplary primary credit provider securitization scenarios made by an exemplary system for facilitating transactions, in accordance with some embodiments of the present invention. Description of the invention
• Embodiments of the present invention may include apparatuses for performing the operations herein.
• Such apparatus may be specially constructed for the desired purposes, or it may comprise a general-purpose computer selectively activated or reconfigured by a computer program stored in the computer.
• a computer program may be stored in a computer readable storage medium, such as, but is not limited to, any type of disk including floppy disks, optical disks, CD-ROMs, magnetic-optical disks, read-only memories (ROMs), random access memories (RAMs) electrically programmable read-only memories (EPROMs), electrically erasable and programmable read only memories (EEPROMs), magnetic or optical cards, or any other type of media suitable for storing electronic instructions, and capable of being coupled to a computer system bus.
• the Primary Credit Provider - may also be regarded as a credit card issuer (backed up by the card holder's credit/bank/other account); the Secondary credit provider - may also be regarded to as the Invention, The invention system or simply as the System.
• the Term Credit securitization - May Comprise of some or all of the following steps, regarded to as Credit request, Credit authorization and Credit clearing that may be accompanied by a corresponding time period and amount;
• the Consumer - May also be regarded to as Buyer, Consumer, Customer , Credit Card holder or simply as the Card holder; and
• a partial payment (based on the repayment terms between the secondary credit provider and the Consumer) - may also be regarded to as an Installment.
• the present invention is a system and method for facilitating a transaction.
• a merchant as part of a transaction between a merchant and a Consumer/Customer of goods and/or services and/or monetary means (e.g. cash), which may be initiated at or through any point of access (e.g. online, point of sale, automatic teller machine), the Consumer may request to split the transaction cost into a set of payments/installments, by which costs may be spread over a period of time. Said set of payments and said period of time may be pre-defined or pre-determined.
• monetary means e.g. cash
• a transaction between a merchant and a Customer may involve the merchant providing to the Customer goods, services, financial services and/or any combination thereof.
• the transaction may be a conventional merchant transaction, an online transaction, a mobile transaction and/or any other type of transaction known today to be devised in the future.
• the merchant may provide the Customer with negotiable financial instruments such as a currency of one or more countries, bearer bonds, or the like. All existing or future types of transactions possible between a merchant and a Consumer of goods and/or services may be supported (e.g. online/internet; point of sale; automatic teller machine, etc.) by various embodiments of the present invention.
• a methods and systems for facilitating credit based transactions associated with purchase of goods or service having a cost may be received over a data network.
• the cost of the transaction may then be securitized over a data network against a credit line provided by a primary credit provider.
• a secondary credit provider may fund the transaction.
• the secondary credit provider may intermittently receive partial payment of the transaction's cost and while intermittently re-securitizing an outstanding transaction balance.
• a transaction system may comprise of one or more transaction servers including a collective control logic adapted to: (1) receive over a data network the data indicating the cost of goods or service; (2) securitize over a data network the cost of the transaction against a credit line provided by a primary credit provider; (3) fund the transaction upon securitization; (4) intermittently receive partial payment from the primary credit provider; and (5) intermittently re-securitize an outstanding balance.
• FIG. 1 there is shown, in accordance with some embodiments of the present invention, a flow chart describing the stages and steps of an exemplary method for facilitating installment transactions.
• the first part of the process begins with a negotiation of the cost of goods or service between a merchant and a purchaser. Once the price has been agreed, the purchaser requests secondary credit provider services (installments), and receives in return, possibly through the merchant or merchant terminal, the repayment terms offered by the secondary credit provider. The purchaser may then : accept the terms, request another repayment offer, or decide he is not interested. The Secondary credit provider then securitizes the full transaction amount (including financing fees) through the primary credit provider and pays the full transaction amount to merchant.
• secondary credit provider installments
• the Secondary credit provider securitizes the full transaction amount (including financing fees) through the primary credit provider and pays the full transaction amount to merchant.
• the secondary credit provider attempts re-securitizing the remaining transaction balance through the primary credit provider. If the primary credit provider authorizes the securitization of the remaining transaction balance the secondary credit provider orders the primary service provider to pay it a partial payment of the authorized sum (Based on purchaser's repayment terms) and cancels the last prior securitization made through the primary service provider, this iteration may repeat until the full amount of the transaction is paid to the secondary credit provider. If, on the other hand, the primary credit provider does not authorize the securitization of the remaining transaction balance, the secondary credit provider orders the primary service provider to pay it the transaction's full remaining balance (Based on the primary credit provider's last prior authorization).
• a securitization module may be adapted to receive over a data network the data indicating the cost of goods or service.
• the data may be received from a merchant agent selected from a group consisting of Terminal Merchant Agent, On-Line Merchant Agent, Check-out Provider Agent and Cash Withdrawal Agent.
• the securitization module may be further adapted to receive data relating to the number and/or sum(s) of said partial payments.
• the securitization module may be adapted to securitize the cost of the transaction against a credit line provided by a primary credit provider, a securitization may comprise of initiating a credit request and receiving a credit authorization.
• a funds transfer module may be adapted to fund of the transaction upon its securitization (e.g. by transfer of funds to merchant of goods/services).
• a fund receipt module may be adapted to intermittently receive partial payment or to receive full payment, from the primary credit provider.
• the fund receipt module may be further adapted to receive full balance payment from the primary credit provider upon a re-securitization failure.
• the transfer of funds to the merchant may only be done upon shipping of the goods to the consumer.
• the securitization module may be further adapted to intermittently re-securitize an outstanding balance.
• a re-securitization may comprise of initiating a credit request and receiving a credit authorization.
• FIG. 2 there is shown, in accordance with some embodiments of the present invention, a table describing the modules of an exemplary system for facilitating transactions.
• the purchaser initiates a transaction through a Cash Withdrawal Agent (CWA), a Check-out Provider Agent (CPA) or a Merchant Agent (MA) such as an On-Line Merchant Agent or a Terminal Merchant Agent.
• CWA Cash Withdrawal Agent
• CPA Check-out Provider Agent
• MA Merchant Agent
• the system's (Secondary Credit Provider's) Securitization Module then performs a full transaction sum credit authorization through the Primary Credit Provider, upon a successful credit authorization (securitization) it finances and transfers the entire transaction amount to the merchant using its funds transfer module.
• the secondary credit provider intermittently (e.g.
• balance sums credit authorizations Each time a balance sum credit request is authorized the secondary credit provider re-securitizes the remaining balance excluding the current installment, requests the primary credit provider to transfer to it the sum of the current installment and receives it using its funds receipt module. If a balance sum credit request is not authorized the secondary credit provider requests the primary credit provider to transfer to it the entire balance of the transaction, based on the last prior authorization made by the primary credit provider.
• FIG 3 there is shown, in accordance with some embodiments of the present invention, an image of an exemplary transaction payment arrangement agreement wherein based on the sub total of the transaction, the number of installments and the calculated interest; the amount of the first installment and the balance sum (after payment of the first installment are calculated and presented.
• a Consumer of goods and/or services and/or monetary means may request that a secondary credit provider pay the merchant the cost of the purchased goods and/or services.
• Said secondary credit provider may be any third party willing to finance said transaction (e.g. any financial institution, the merchant himself, any other individual(s) or entities).
• the secondary credit provider may provide the Consumer with repayment terms (e.g. monthly payments/installments) for the principle amount to be paid by the secondary provider and/or for financing fees (e.g. interest or any other kind of fees).
• the secondary credit provider may securitize the amounts to be paid to the merchant with a credit line provided to the Consumer by a primary credit provider (e.g. credit card issuer).
• a primary credit provider e.g. credit card issuer
• the financing party e.g. secondary credit provider
• the secondary credit provider may request from the primary credit provider partial payment of the authorized credit based on the agreed upon repayment terms between the secondary credit provider and the Consumer. Since each credit authorization expires either within a predefined period of time or based on some action, the secondary credit provider may re-securitize any remaining balance owed to it by the Consumer by intermittently re-requesting credit authorization for the remaining balance.
• the above re-securitization and money transfer cycle may be re-executed until all due payments are transferred to the secondary credit provider.
• said secondary credit provider may request the primary credit provider to transfer the full remaining balance from Consumer to it, based on the last prior credit securitization performed.
• the merchant may be a retailer of goods, real estate, cash and/or a provider of services such as: (1) financial services, (2) banking services, (3) leasing services, (4) communication services, (5) medical services, (6) travel services, (7) currency exchange service, or any other goods or services.
• the merchant may provide Customer with goods or services: (1) at a manned point of sale (e.g. cash register), (2) through an automated apparatus (e.g. product dispenser, automatic teller machine, etc.), (3) through an online e-commerce site or through an online checkout application, and/or (4) via a mobile commerce system, or through any way known now or to be devised in the future.
• a retailer may also provide financial services, for example loaning or otherwise providing currency to a Customer.
• the merchant or goods and/or services may act as the secondary credit provider.
• a retailer based on securitization provided by one or more primary credit providers, may provide a Customer with financing for: (1) an instant cash loan; (2) a purchase, rental or leasing of a product; and/or (3) a service.
• secondary credit provider could be any bank(s), and/or accredit union, and/or any financial institution(s), and/or any other entities, and/or individual(s).
• the primary credit provider may be a credit card issuer, a financial institution, a credit union, and/or any other entity extending and/or committing credit and/or payment services to and on behalf of the Customer.
• a Customer may establish facilities or availability for transaction payment by the secondary creditor (secondary credit provider) either during or in advance of a given transaction.
• the Customer may provide personal and financial information including : (1) name, (2) address, (3) an identifications number (e.g. Social Security Number), and (4) one or more identifiers of primary creditor accounts (e.g. credit card accounts) against which the secondary creditor may secure repayment of payments made or other consideration extended by secondary creditor on behalf of the Customer.
• the Customer may be provided a set of primary account indicators for as a bank of primary credit lines which may be used to securitize transaction related costs, and the Customer may designate : (1) a preference for primary account order or priority when securitizing a transaction amount; (2) a preferred ratio for splitting securitization of a transaction amount across multiple primary creditor accounts; and (3) a any other rules or parameters which may be used by a securitization module according to embodiments of the present invention when authorizing a transaction on behalf of the Customer.
• a Customer may be provide an identifier and use a primary creditor account of one or more other persons and/or entity(ies), for example a company, a family member and/or a friend, such person(s) and/or entities, who have consented to having their credit facilities/accounts being utilized or leveraged by the Customer.
• persons and/or entity(ies) for example a company, a family member and/or a friend, such person(s) and/or entities, who have consented to having their credit facilities/accounts being utilized or leveraged by the Customer.
• a computer system may include a Customer interface, optionally a web interface, through which a Customer may establish and/or adjust one or more secondary creditor accounts.
• Establishing and adjusting may include providing or changing information and parameters as described above, and designating or re-designating : (1) a preference for primary account order or priority when securitizing a transaction amount; (2) a preferred ratio for splitting securitization of a transaction amount across multiple primary creditor accounts; and (3) any other rules or parameters which may be used by a securitization module according to embodiments of the present invention when authorizing a transaction on behalf of the Customer.
• Establishment of a secondary creditor account may include the issuance of a transaction facilitating token such as a : (1) credit card of the secondary credit provider, (2) a digital token or the like to be used for authentication in online transactions, (3) a mobile application component for use with mobile payments, and/or (4) any other payment facilitating tokens or instruments known today or to be devised in the future.
• the token may be specific to a given Customer account and may be used by the Customer when initiating a transaction according to embodiments of the present invention.
• the token may include one or a set of Customer identifiers usable by a computerized transaction authorization system according to embodiments to initiate steps required to authenticate and authorize a transaction in which the Customer wishes to engage.
• FIG 4 there is shown, in accordance with some embodiments of the present invention, a table describing the modules of an exemplary system for facilitating transactions comprising a consumer interface module, a merchant interface module and a primary credit provider(s) interface module.
• the consumer uses the consumer interface module to access and edit/update the secondary credit provider's consumer/customer records/profile, adding or changing personal details, his list of primary credit providers, their terms of usage and or any other attributes relating to his own details and/or his primary credit provider(s).
• the merchant interface module is used by the merchant for sending requests for secondary credit provider service, for a consumer transaction funding, and receiving replies to these requests.
• the primary credit providers interface module (securitization module) sends securitization requests, that are based on the transaction details supplied by the merchant and the consumer's primary credit providers profile, to one or more primary credit provider(s) and receives in return replies from the one or more primary credit providers approached (e.g. Authorized/Not Authorized/Partially Authorized).
• a chargeback procedure may be initiated as a result of a product or service not provided, rightly returned or for any other reason which may justify refund of some or all of the purchase or financing fees, to the purchaser and/or to other parties.
• the financing party e.g. Secondary credit provider
• the financing party may retrieve the 'charged back' transaction details and may accordingly debit the merchant on part of or on the entire purchase amount. Out of the debited amount, it may order the primary credit provider to refund, or otherwise refund, some of or the entire purchaser's already paid amounts and some of or the entire amounts, not yet paid to it by the purchaser.
• said method may be used to externally orchestrate, or may allow or enable for the collaboration of one or more independent, external or internal entities - of any Consumer, credit provider, merchant, acquirer, issuer or other, in order to facilitate the Installments method described hereinbefore.
• an external or modular financing of these Installments transactions e.g. by an external/3 rd party/secondary credit provider
• a transaction system adapted to facilitate credit transactions between a merchant, and a Consumer of goods and/or services and/or monetary means (e.g. cash), which may be initiated at or through any point of access (e.g. online, point of sale, automatic teller machine).
• a point of access e.g. online, point of sale, automatic teller machine.
• a merchant agent As part of the transaction system, or functionally associated with the transaction system, there may be provided a merchant agent, checkout provider agent or cash withdrawal agent module.
• the merchant agent, checkout provider agent or cash withdrawal agent module which may be accessed through any point of access (e.g. online, point of sale, automatic teller machine/ATM), may be adapted to offer the Consumer with repayment terms for the principle amount to be paid to the merchant by the financing party (e.g. secondary credit provider) and for financing fees (e.g. interest or any other fees), by which costs may be spread over a period of time (e.g. monthly payments, installments), and initiate such a transaction upon approval by said Consumer.
• the financing party e.g. secondary credit provider
• financing fees e.g. interest or any other fees
• a securitization module As part of the transaction system, or functionally associated with the transaction system, there may be provided a securitization module.
• the securitization module may be adapted to securitize the amounts to be paid to the merchant plus financing fees by requesting credit authorization for the full amount form a primary credit provider (e.g. a credit card issuer or any other credit provider), possibly by using a credit line provided to the Consumer.
• Said securitization module may be further adapted to request from the primary credit provider credit authorization for the remaining amounts due, including financing fees concurrent with or prior to payment to merchant.
• a Consumer of goods and/or services and/or monetary means may utilize a payment mechanism or token, such as a payment card or online payment application, provided by a secondary credit provider.
• a payment mechanism or token such as a payment card or online payment application
• Using the secondary credit provider's payment mechanism may cause the secondary credit provider to: (1) authenticate details of the transaction; (2) check availability of one or more primary credit-lines sufficient to cover the transaction amount, and (3) subject to (1) and (2), to pay the merchant the some or all of the cost of the purchased goods and/or services.
• the secondary credit provider may be any third party willing to finance said transaction (e.g. pay the merchant).
• the transaction amount, provided by the secondary credit provider, including financing fees may be securitized, for example against one or more credit lines provided to the Consumer by one or more primary credit providers. Based on said securitization, secondary credit providers may pay the merchant the transaction amount, usually excluding financing fees.
• an amount securitized against any one of the one or more primary credit lines may be a fixed amount, a fixed percentage or a dynamically calculated amount.
• an amount selected for each one of the two or more primary lines may be dynamically selected so as to mitigate a risk of any of the primary credit providers declining to securitize the portion selected for their securitization.
• a money transfer module As part of the transaction system, or functionally associated with the transaction system, there may be provided a money transfer module.
• the money transfer module may be adapted to order, upon said primary credit provider authorization, the transferring of the full purchase/cash-withdrawal amount excluding financing fees from a secondary credit provider to the merchant
• said securitization module may be further adapted to re-securitize any remaining balance owed to the secondary credit provider by the Consumer by intermittently re-requesting credit authorization for the remaining balance.
• Said money transfer module may be further adapted to request, upon re- securitization of the remaining balance, the primary credit provider to transfer the amount of the current payment according to pre-agreed repayment terms (e.g. monthly payments) from Consumer to the secondary credit provider.
• the above re-securitization and money transfer cycle may be re-executed until all due payments are transferred to the secondary credit provider.
• said money transfer module may be further adapted to request the primary credit provider to transfer the full remaining balance from Consumer to the financing party (e.g. secondary credit provider), based on the last prior credit securitization performed.
• said securitization module may be adapted to re-securitize some or all of the remaining balance owed to the secondary credit provider, just prior to, in parallel or just after purchaser's/cash-withdrawer's payment of each installment (i.e. prior/in parallel/after the expiration [time or action initiated] of each former credit securitization) thus reducing or minimizing the risk of non-collectable sums.
• partial payment of the transaction's cost may be received either from the primary credit provider or directly from a purchaser of the goods or service.
• secondary credit provider may receive full balance payment from the primary credit provider upon a re- securitizing failure.
• a partial payment received by the secondary credit provider may be one of a set of equal or one of a set of non-equal partial payments. Sizes and timings of received payments may be determined according to a predefined payment schedule, further, the partial payment may be substantially equal to the funded amount plus financing fees, divided by the number of payments to be made.
• a repeating cycle of re-securitizations may be initiated, wherein each cycle may comprise: a re-securitization of the remaining balance; and a request for the current payment, based on to the terms pre-agreed upon by Consumer, to be transferred to the secondary credit provider (e.g. through a credit line provided to the Consumer by a primary credit provider).
• said repeating cycle may terminate after all due payments were transferred to said secondary credit provider.
• said secondary credit provider may request the primary credit provider to transfer the full remaining balance from Consumer to it, based on the last prior credit securitization performed.
• securitizing and/or re-securitizing of the cost(s) of the transaction over a data network may consist of issuing a credit request and receiving credit authorization.
• intermittent receipt of partial payment may further include receipt of transaction related financing costs and/or receipt of commission costs.
• the normal cycle may be a monthly cycle, however, it may be different if needed for any reason.
• a cycle for request for authorization could be, for example, 25 (twenty five) days.
• Cycle for request for payment will be, for example, one month. More specifically:
• double authorization may only occurred in last 5 (five) days of 30 days authorization. It is very probable that in 25 days authorization will be taken out of record of the primary credit provider.
• Another primary credit line such as another card of the customer, or a card of any other individual(s) and/or entity, with prior or current approval from such individual(s)/entity(ies)); (ii) in most cases of blackout/brownout, or any other catastrophic failure in the invention's system or external systems functionally associated with it (for example communication system), 5 days are sufficient time for power-up; (iii) in case of a massive hacker/malware/cyber attack, or an internal software failure, which may be related to an internal or an external event (e.g. the bug 2K in the year 2000); (iv) any other internal and/or external event(s).
• an internal or an external event e.g. the bug 2K in the year 2000
• the system may allow for the adjustment of the cycle of payment and authorization in order to meet head to head with possible threats.
• such payment and authorization cycles may be dynamically adjusted in the case of perceived different or additional threats; in response to a request made by one of the parties (consumer/merchant/secondary credit provider); and/or in response to a change in the regulatory environment by governmental or semi governmental bodies, by major primary credit systems, or any other entity.
• the second credit provider may be adapted to handle a charge-back procedure initiated as a result of a product or service not provided, rightly returned or for any other reason which may justify refund of some or all of the purchase or financing fees, to the purchaser and/or to other parties.
• Secondary credit provider may be further adapted to retrieve the 'charged back' transaction details and may accordingly debit the merchant on part of or on the entire purchase amount. Out of the debited amount, it may order the primary credit provider to refund, or may otherwise refund, some of or the entire purchaser's already paid amounts and some of or the entire amounts, not yet paid to it by the purchaser.
• said system may be adapted to externally orchestrate, or may allow or enable, for the collaboration of one or more independent, external or internal entities - of any Consumer, credit provider, merchant, credit card acquirer, credit card issuer, organizer of transaction with installments payments, or other, in order to facilitate the Installments method described hereinbefore.
• said system may be adapted to allow for the utilization of external or modular financing of these Installments transactions (e.g. by an external/3 rd party/secondary credit provider) and thus may enable for one or more secondary credit financing sources, and/or for the withdrawal of cash from different merchants, which may or may not be specifically customized for this type of service and may or may not be the withdrawal transaction's financing entity.
• a payment plan may be amended and custom-made to Consumer, e.g. postponing first payment, varying the payment schedule according to a predetermined plan agreed with Consumer and more.
• a payment plan may be amended at any time after the conclusion of the agreement with the consumer in order to accommodate current needs of the consumer.
• such an amendment of the payment plan may be a predetermined function, or may take place as a result of a predetermined function of certain outside factors (e.g. change in the prime rate for loans).
• the consumer may prepay the entire outstanding balance or prepay part of the outstanding balance - in which case his payment plan may be amended in one, or more, of several ways, including : reducing the amounts of at least some of the installments, reducing the number of installments, and so on.
• a payment may be accepted, and/or securitization may be done, from a different source if current payment is declined, for example from Consumer's additional credit card or from another person(s) or entities following Consumer's request.
• a transaction may be funded through the merchant [[and as opposed to an external funder]] .
• a transaction funding may be divided between several collectors (for example, the merchant, the funding body, the clearing body, or any other body).
• a down- payment for leasing or mortgages may be funded by dividing the down- payment cost to installments (fully or partially) when purchasing or leasing, for example, a car, a boat, a house and more through the system.
• Such funding of down-payment may be provided by any primary credit provider(s).
• the system may be used for giving out loans in installments which may be collected directly through the credit or debit card used by the consumer for the monthly payments, directly to the Consumer's bank account or in the other way.
• Such credit may be securitized by a primary creditor (e.g. by issuer of credit card, a credit union or a bank, a non-bank credit card issuer).
• a Consumer may open an account in the system where they may update the details of additional credit cards in order for the system to divide the ongoing authorizations/re-securitizations as well as the actual collection, between the different cards according to the Consumer's instructions or a formula within the system, to divide the risk and increase the chances of approving the transactions, or according to the credit card type (Platinum before Gold etc.).
• the credit card type Platinum before Gold etc.
• opening an account may enable the system to automatically request re-securitization or approval for collection from another card listed in the Consumer's account if one of the re-securitization or collection procedures from the first card has been declined in the duration of the Consumer's funding period.
• the system may know how to execute the transaction through a specific card or to divide it between a number of cards which the Consumer may have registered in his account in order to maximize the consumer benefits existing in the different cards according to the Consumer's instructions or according to the system's decision in a way that may maximize the benefits to the Consumer (for example, collecting air miles, reimbursement of funds (e.g. cash back etc.).
• a Consumer may re-finance/re-securitize all of the existing transactions through the purchaser's account on the system, combining or dividing some or all the remaining balance in the different transactions.
• an automatic system may be created to divide funding of an external entity between several financing bodies (simulate funding syndicate) and distributing the funding between the bodies according to a pre-determined module to be agreed upon with the financing bodies as well as attaching the authorization of the Primary Credit Provider to the financing bodies relative to the risk and the extent of their commitments in the transaction.
• the system may divide the securitization requests according to an algorithm which may enable a higher chance of approval in the securitization process (for example, by dividing one securitization request into two: one for the due installment and one for the remaining amount).
• FIGS 5-12 there are shown, in accordance with some embodiments of the present invention, various exemplary primary credit provider securitization scenarios of an exemplary system for facilitating transactions.
• FIG 5 there is shown, in accordance with some embodiments of the present invention, an exemplary two stage scenario wherein the primary credit provider authorizes both: the initial securitization of the full transaction amount, and the following remaining transaction balance sum(s).
• FIG 6 there is shown, in accordance with some embodiments of the present invention, an exemplary two stage scenario wherein the first primary credit provider does not authorize both: the initial securitization of the full transaction amount, and the following remaining transaction balance sum(s).
• the secondary credit provider Upon each failure to authorize, the secondary credit provider approaches a second primary credit provider (e.g. listed in the consumer's second credit provider's consumer records/profile) which authorizes the securitizations.
• FIG 7 there is shown, in accordance with some embodiments of the present invention, an exemplary scenario wherein the first primary credit provider authorizes securitization of only 50% of the transaction amount.
• the secondary credit provider Upon failure to authorize the entire transaction amount, the secondary credit provider approaches a second primary credit provider (e.g. listed in the consumer's second credit provider's consumer records/profile) which authorizes the securitization of the reminder of the transaction amount.
• a second primary credit provider e.g. listed in the consumer's second credit provider's consumer records/profile
• FIG 8 there is shown, in accordance with some embodiments of the present invention, an exemplary scenario wherein the secondary credit provider inquires in regard to a securitization of a transaction amount by the first primary credit provider and the first primary credit provider provides securitization details (e.g. a 5% commission), the secondary credit provider then inquires in regard to a securitization of a transaction amount by the second primary credit provider and the second primary credit provider provides securitization details (e.g. a 2% commission). Due to the preferred terms offered by the second primary credit provider the second credit provider proceeds to securitize the transaction with it rather than with the first primary credit provider.
• securitization details e.g. a 5% commission
• FIG 9 there is shown, in accordance with some embodiments of the present invention, an exemplary scenario wherein the merchant is the primary credit provider.
• the second credit provider requests and receives securitization authorization from the merchant, based on which authorization it funds the transaction.
• FIG 10 there is shown, in accordance with some embodiments of the present invention, an exemplary scenario wherein the merchant is the secondary credit provider inquires with the consumer in regard to which of his primary credit providers (e.g. listed in the consumer's second credit provider's consumer records/profile) he wishes to use for securitization. Upon receipt of the consumer's selection of his preferable primary credit provider (e.g. The second primary credit provider) the secondary credit provider proceeds to securitize with the selected primary credit provider.
• his primary credit providers e.g. listed in the consumer's second credit provider's consumer records/profile
• FIG 11 there is shown, in accordance with some embodiments of the present invention, an exemplary scenario wherein the consumer updates his secondary credit provider's records/profile adding a primary credit provider (the Fourth) and removing another (the Second).
• FIG 12 there is shown, in accordance with some embodiments of the present invention, an exemplary scenario wherein the consumer updates his secondary credit provider's records/profile requesting all transactions acceding $100 to be securitized by a specific primary credit provider (the Fourth). Accordingly, a subsequent transaction of an amount not acceding $100 is referred to other primary credit providers (First, Second or Third; First in this case), whereas a subsequent transaction of an amount acceding $ 100 is referred to the specific primary credit providers designated by the consumer (the Fourth in this case).
• the system is organized and structured as a “cloud” or partially as a “cloud”.
• system is organized and structured to perform other tasks beyond the tasks for the method, described in this invention.
• the system is organized and structured to accommodate affiliation program(s) for the individuals and/or entities, who are able to organize relation of owner and/or operator of such system, on the one hand, and merchant(s) and/or consumer(s), and/or acquirers(s), and/or secondary credit provider(s), and/or any other party, on the other hand.
• such system is designed to provide individualized relevant information (e.g. report(s)), on a need to know basis, to each member of the affiliation program.
• individualized relevant information e.g. report(s)
• such system may have modules for the analysis of provided information. Such provided information may be given upon request, upon intervals of time.
• a member of the affiliation program may be provided with automatic signal (e.g. SMS, e-mail) that there are predetermined changes of relevant variables, factors numbers and so on, and/or predetermined occurrence of certain events.
• the affiliation may have members of different levels. It means that members of the affiliation program may have agreements with the owner and/or operator of such system (level 1). The member at level 1 may have agreements with other individual(s) and/or entities (level 2). The member at level 2 may have agreements with different individual(s) and/or entities (level 3).
• the compensation provided to any particular member of the affiliation program is individualized and may vary for the different circumstances, events, cases, factors, and could be calculated using various algorithms.
• the system described herein is organized to accommodate and organize promotional lotteries, bonuses, awards, prizes based on various algorithms and factors.
• Such lotteries, bonuses, awards, prizes could be organized separately and/or jointly for the benefits of the groups belonging to the following classes, and/or entire classes as follows:
• the system is capable to accommodate and organize various jackpots, including but not limited to the progressive jackpots, random events jackpots, such jackpots may be based on various algorithms and factors.
• Such jackpots could be organized separately and/or jointly, and/or partially jointly for the benefit of the groups belonging to the following classes, and/or entire classes as follows:

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• 2013
  • 2013-04-07 CN CN201380052281.9A patent/CN104704519A/zh active Pending
  • 2013-04-07 KR KR1020157011581A patent/KR102129949B1/ko active IP Right Grant
  • 2013-04-07 CA CA2887033A patent/CA2887033C/en active Active
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  • 2013-04-07 JP JP2015535123A patent/JP6283368B2/ja active Active
  • 2013-04-07 RU RU2015113341A patent/RU2639950C2/ru active
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• 2015
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