Mutual fund card method and system
A computerized method and system for implementing such method, the method comprising establishing a card payment instrument account for an approved customer and an investment account for the benefit of the approved customer. A rebate is calculated periodically based on credit card usage and the rebate is applied to fund the investment account periodically. The rebate is the only funding of the investment account accomplished through the card payment instrument account.
1. A computerized method for transferring funds resulting from use by multiple accountholders of payment instrument accounts provided by a card issuer to investment accounts of the accountholders, each accountholder having both a payment instrument account and a corresponding investment account, the method comprising:
maintaining a database having information of payment instrument accounts of accountholders, each payment instrument account comprising one or more of a credit card account, a debit card account, and a stored value account provided by a card issuer;
maintaining a database having information of at least some investment accounts provided by an investment account provider, wherein the investment account provider is a financial institution and each investment account is funded with funds determined as a result of accountholder use of the corresponding payment instrument account for transactions;
linking, using one or more computer processors, each payment instrument account with a corresponding investment account of each accountholder, the linking establishing a direct payment or fund transfer path between said card issuer and said corresponding investment account of said each accountholder without requiring any intermediary escrow account and without restricting investment activities of said corresponding investment account of said each accountholder;
processing, using a transaction processor system including at least one computer processor, information of accountholder transactions carried out using the payment instrument account and storing the information; and
determining, implementing a rewards processing system operated by the card issuer and including at least one computer processor, a funds transfer amount based on the stored information including each accountholder's use of the corresponding payment instrument account to conduct one or more transactions, wherein the funds transfer amount is a reward funded by the card issuer and/or the investment account provider;
determining, with a reward issue and transfer system including at least one computer processor, whether the funds transfer amount is subject to an automatic transfer based on data stored in the payment instrument account database;
if it is determined that the funds transfer amount is subject to an automatic transfer, transferring the determined funds transfer amount from the card issuer automatically and directly to the corresponding investment account of the accountholder; and
if it is determined that the funds transfer amount is not subject to an automatic transfer, issuing a payment of the determined funds transfer amount to the corresponding accountholder.
2. The method of claim 1 , wherein the funds transfer amount is funded by the accountholder.
3. The method of claim 1 , wherein the investment account provider is associated with the card issuer.
4. The method of claim 1 , wherein the database having information of the payment instrument account and the database having information of the investment account are collocated in the same database.
5. The method of claim 1 , wherein the accountholder transactions are carried out using a transaction card corresponding to the payment instrument account.
6. The method of claim 1 , wherein the funds transfer amount is computed based on the transaction amount of the one or more transactions.
7. The method of claim 1 , wherein the funds transfer amount is computed for each transaction made by the accountholder.
8. The method of claim 1 , wherein the funds transfer amount is computed for a plurality of transactions made by the accountholder.
9. The method of claim 1 , wherein the determined funds transfer amounts are transferred to the investment account following each time that a funds transfer amount is determined.
10. The method of claim 1 , wherein determined funds transfer amounts are aggregated and transferred to the investment account as an aggregated transaction.
11. The method of claim 1 , wherein the transfer is an electronic transfer of funds.
12. The method of claim 1 , wherein the investment account is one that is designated by the accountholder.
13. The method of claim 1 , wherein the routing of the first funds results from a first transaction on the payment instrument account and the routing of the second funds results from a different transaction other than the first transaction on the payment instrument account.
14. The method of claim 1 , wherein the payment of the determined funds transfer amounts issued to the corresponding accountholder can only be deposited into the investment account linked to the accountholder's payment instrument account, such that each accountholder purchase transaction results in first funds being routed to a merchant from whom the accountholder made a purchase, and in second funds being routed directly or indirectly to the corresponding investment account of the accountholder.
15. The method of claim 1 , wherein determined funds transfer amounts accumulate as points that are transferred as funds into the investment account.
16. The method of claim 1 , wherein determined funds transfer amounts accumulate without being transferred to the investment account until predetermined criteria are met.
17. The method of claim 16 , wherein the predetermined criteria comprise a duration of time before accumulated fund amounts can be transferred.
18. An article of manufacture comprising computer readable media with program code for transferring funds resulting from use by multiple accountholders of payment instrument accounts provided by a card issuer to investment accounts of the accountholders, each accountholder having both a payment instrument account and a corresponding investment account, the computer readable with program code causing a computer to implement at least one processor to perform:
maintaining a database having information of payment instrument accounts of accountholders, each payment instrument account comprising one or more of a credit card account, a debit card account, and a stored value account provided by a card issuer;
maintaining a database having information of at least some investment accounts provided by an investment account provider, wherein the investment account provider is a financial institution and each investment account is funded with funds determined as a result of accountholder use of the corresponding payment instrument account for transactions;
linking, using one or more computer processors, each payment instrument account with a corresponding investment account of each accountholder, the linking establishing a direct payment or fund transfer path between said card issuer and said corresponding investment account of said each accountholder without requiring any intermediary escrow account and without restricting investment activities of said corresponding investment account of said each accountholder;
processing information of accountholder transactions carried out using the payment instrument account and storing the information; and
determining, implementing a rewards processing system operated by the card issuer, a funds transfer amount based on the stored information including each accountholder's use of the corresponding payment instrument account to conduct one or more transactions, wherein the funds transfer amount is a reward funded by the card issuer and/or the investment account provider;
determining, with a reward issue and transfer system including at least one computer processor, whether the funds transfer amount is subject to an automatic transfer based on data stored in the payment instrument account database;
if it is determined that the funds transfer amount is subject to an automatic transfer, transferring the determined funds transfer amount from the card issuer automatically and directly to the corresponding investment account of the accountholder; and
if it is determined that the funds transfer amount is not subject to an automatic transfer, issuing a payment of the determined funds transfer amount to the corresponding accountholder.
19. The article of manufacture of claim 18 , wherein the funds transfer amounts are funded by a third party.
20. The article of manufacture of claim 18 , wherein the payment of the determined funds transfer amounts issued to the corresponding accountholder can only be deposited into the investment account linked to the accountholder's payment instrument account, such that each accountholder purchase transaction results in first funds being routed to a merchant from whom the accountholder made a purchase, and in second funds being routed directly or indirectly to the corresponding investment account of the accountholder.