Early Payment Rewards System and Method

Abstract

Embodiments of the invention are directed to a computer-implemented method for reducing funding burden on a credit issuer by offering an early payment rewards program to qualified card holders. The method may include identifying card holders having a payment history illustrating payment of an entire credit balance each month, determining whether each of the identified card holders generates an account-related fee total not exceeding a pre-selected threshold, and selecting the card holders having a history of payment of the entire credit balance each month and generating account-related fees not exceeding the pre-selected threshold. The method may further include offering the early payment rewards program to the selected card holders, wherein upon enrollment in the early payment rewards program the selected card holders receive rewards for early payment behavior.

1 . A computer-implemented method for processing credit card payments in order to reduce funding burden incurred by credit issuers by rewarding early payment for participating card holders using an early payment rewards system available to the participating card holders over a network, the method comprising:
 storing, in at least one computer memory, data and instructions;   accessing the at least one computer memory and executing the instructions to perform steps including;
 receiving notification of a payment at the early payment rewards system; 
 retrieving stored early payment rules; 
 determining if the received payment generates early payment rewards; 
 evaluating the received payment based on the retrieved early payment rules to calculate a reward amount; and 
 adding the calculated reward amount to a participant account held by the participating card holder, wherein the rewards include at least one of cash, airline miles, reward points, services, goods, rebates, up front payments, statement credit, and discounts. 
   
     
     
         2 . The method of  claim 1 , further comprising selecting card holders as eligible for the early payment rewards program by identifying card holders having a payment history illustrating payment of an entire credit balance each month. 
     
     
         3 . The method of  claim 2 , further comprising determining whether each of the identified card holders generates an account-related fee total below a pre-selected threshold. 
     
     
         4 . The method of  claim 3 , further comprising selecting the card holders having a history of payment of the entire credit balance each month and generating account-related fees below the pre-selected threshold and offering the early payment rewards program to the selected card holders. 
     
     
         5 . The method of  claim 1 , further comprising determining if the received payment generates early payment rewards by determining if the payor is a participating cardholder. 
     
     
         6 . The method of  claim 1 , further comprising determining if the received payment generates early payment rewards by determining if the received payment qualifies as an early payment. 
     
     
         7 . The method of  claim 1 , wherein evaluating the received payment comprises determining a reward amount based on early payment reward rules specifying a required date of payment. 
     
     
         8 . The method of  claim 7 , wherein evaluating the received payment comprises determining the reward amount based on early payment reward rules specifying a balance percentage paid. 
     
     
         9 . The method of  claim 8 , further comprising setting the balance percentage of the early payment reward rules at one hundred percent. 
     
     
         10 . The method of  claim 7 , further comprising determining the calculated reward amount based on a number of days prior to a due date on which payment is received. 
     
     
         11 . The method of  claim 7 , further comprising determining the calculated reward amount based upon a total dollar amount paid during a relevant month 
     
     
         12 . A computer-implemented method for reducing funding burden on a credit issuer by offering an early payment rewards program to qualified card holders, the method comprising:
 storing, in at least one computer memory, data and instructions;   accessing the at least one computer memory and executing the instructions to perform steps including;
 creating models for eligibility for early rewards by determining whether card issuer profitability increases if early payment rewards are granted based on card holder balance and providing the models to the eligibility rules module; 
 identifying card holders having a payment history illustrating payment of an entire credit balance each month; 
 determining whether each of the identified card holders generates an account-related fee total not exceeding a pre-selected threshold; 
 selecting the card holders having a history of payment of the entire credit balance each month and generating account-related fees not exceeding the pre-selected threshold; and 
 offering the early payment rewards program only to the selected card holders, based on the created models, wherein upon enrollment in the early payment rewards program the selected card holders receive rewards for early payment behavior. 
   
     
     
         13 . The method of  claim 12 , further comprising receiving notification of a payment at an early payment rewards system. 
     
     
         14 . The method of  claim 13 , further comprising determining if the received payment generates early payment rewards. 
     
     
         15 . The method of  claim 14 , further comprising evaluating the received payment based on retrieved early payment rules to calculate a reward amount. 
     
     
         16 . The method of  claim 15 , further comprising adding the calculated reward amount to a participant account. 
     
     
         17 . The method of  claim 13 , further comprising determining whether a received payment generates early payment rewards by determining if a payor is a participating cardholder. 
     
     
         18 . The method of  claim 13 , further comprising determining if a received payment generates early payment rewards by determining if the received payment qualifies as an early payment. 
     
     
         19 . The method of  claim 15 , wherein evaluating the received payment comprises determining a reward amount based on early payment reward rules specifying a required date of payment. 
     
     
         20 . The method of  claim 19 , wherein evaluating the received payment comprises determining the reward amount based on early payment reward rules specifying a balance percentage paid. 
     
     
         21 . The method of  claim 20 , further comprising setting the balance percentage of the early payment reward rules at one hundred percent. 
     
     
         22 . The method of  claim 20 , further comprising determining the calculated reward amount based on a number of days prior to a due date on which payment is received. 
     
     
         23 . The method of  claim 20 , further comprising determining the calculated reward amount based upon a total dollar amount paid during a relevant month. 
     
     
         24 . The method of  claim 12 , further comprising setting the pre-selected threshold at zero dollars. 
     
     
         25 - 38 . (canceled)