System and method for flexible payment terms

US10019697B2 · kind B2 · utility

Assignee

• American Express Travel Related Services Company, Inc. · US

Inventors

• Mark Ang · Scottsdale, US
• Boudhayan Choudhuri · Phoenix, US
• Jessica Kaplan · New York, US
• David Lowy · New York, US
• Gyanesh Narayan · Scottsdale, US
• Eric Nielsen · Palo Alto, US
• Christine Vega · South Orange, US

Key dates

• Filing date: Jun 25, 2014
• Grant date: Jul 10, 2018
• Expiry date: Jun 25, 2034

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/02
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A method is disclosed for offering transaction account consumers with payment term options to pay a minimum amount due early, defer payment into the following payment cycle, and pay a standard amount when due. When generating a periodic billing statement, the invention determines a consumer's eligibility to elect early payment, deferred payment, and regular payment. When a consumer is eligible for early payment, a received payment is compared to a discount rate tier, then a discount amount is calculated and credited to the consumer's account. When the consumer is eligible for deferred payment, the system calculates a new current minimum payment due by multiplying the current non-deferred balance by a predetermined percentage amount and adding the result to the deferred balance. When the consumer is not eligible for deferred payment, the system calculates a new current minimum due by summing the current non-deferred balance with the deferred balance.