Abstract:
A method and system for managing a transaction card account includes a dual function transaction card with primary and secondary transaction card functions that is issued to a cardmember in connection with the account. The cardmember is allowed to incur charges on the account with the dual function transaction card, and statements are periodically issued to the cardmember on the account for a balance payable that is based on the primary function of the transaction card. The cardmember is allowed to elect the secondary function of the dual function transaction card, and such an election is made, a new balance is computed on the account in response to the election and the cardmember is notified of the new balance and a new minimum due for the account.

Description:
PRIORITY APPLICATION  
       [0001]    This application claims the benefit of U.S. Provisional Application No. 60/253,569 filed Nov. 28, 2000, entitled “Method and System for Managing a Transaction Card Account (Charge/Revolve Flexibility)”, which is incorporated herein by this reference. 
     
    
     
       FIELD OF THE INVENTION  
         [0002]    The present invention relates generally to the field of financial transaction cards and more particularly to a method and system for managing a transaction card account.  
         BACKGROUND OF THE INVENTION  
         [0003]    Currently, transaction cardholders or cardmembers throughout the world use transaction card accounts on a daily basis, and the use of the transaction card is a part of the typical cardmember&#39;s daily life. However, no one transaction card is right for every cardmember, and the core of the transaction card selection process is the cardmember&#39;s choice of a transaction card payment plan. Typically, a transaction card payment plan that is good for a cardmember who always pays the monthly bill in full is not necessarily good for a cardmember who does not pay off the balance each month. Further, a cardmember&#39;s circumstances with respect to paying the monthly bill may change over time. There is a present need for a transaction card account that enables, for example, the flexibility of a payin-full charge card which also offers revolving credit functionality or a revolving credit card that also offers pay-in-full charge card functionality.  
         SUMMARY OF THE INVENTION  
         [0004]    It is a feature and advantage of the present invention to provide a method and system for managing a transaction card account that enables a dual function transaction card with the flexibility of revolving credit and pay-in-full transaction card functions.  
           [0005]    It is another feature and advantage of the present invention to provide a method and system for managing a transaction card account that enables a transaction card that allows a cardmember to elect either a pay-in-full secondary function of the transaction card that has a revolving credit card primary function or a revolving credit card secondary function of the transaction card that has a pay-in-full charge card primary function.  
           [0006]    To achieve the stated and other features, advantages and objects, the method and system of the present invention makes use, for example, of computer hardware and software in managing the dual function transaction card account. In an embodiment of the present invention, the dual function transaction card with primary and secondary transaction card functions is issued to a cardmember in connection with the account. In one aspect, the transaction card has a revolving credit card primary function and a pay-in-full charge card secondary function. In another aspect, the transaction card has a pay-in-full charge card primary function and a revolving credit card secondary function. The transaction card in the aspect with the revolving credit card primary function and the pay-in-full charge card secondary function allows the cardmember to revolve up to a predetermined credit limit balance and to pay in full a balance above the predetermined revolving credit limit balance and functions both as a pay-in-full charge card and a revolving credit card, if the cardmember chooses to pay a revolving credit card balance in full. The transaction card in the aspect with the pay-in-full charge card primary function and the revolving credit card secondary function allows the cardmember to revolve a portion of the pay-in-full charge card balance and functions both as a pay-in-full charge card and a revolving credit card, if the cardmember chooses to revolve any portion of the unpaid balance of the pay-in-full charge card balance.  
           [0007]    The cardmember is allowed to incur charges on the account with the dual function transaction card, for example, for purchase transactions, as well as for cash advances. A charge incurred for a cash advance on the account for the dual function transaction card having the revolving credit card primary function and the pay-in-full charge card secondary function is treated as revolving credit with a finance charge assessed from the day of the advance until payment is received. A charge incurred for a cash advance on the account for the dual function transaction card having the pay-in-full charge card primary function and the revolving credit card secondary function is likewise treated as revolving credit with a finance charge assessed from the day of the advance until payment is received.  
           [0008]    Periodically, a statement on the account is issued to the cardmember for a balance payable that is based on the primary function of the transaction card. The periodic statement based on the primary function of the transaction card as a revolving credit card informs the cardmember of a balance that can be revolved and a balance above a pre-defined revolving credit limit that must be paid in full, a minimum payment due and a revolving credit line amount, and provides the cardmember a predetermined number of grace days for payment of the statement. The periodic statement that is based on the primary function of the transaction card as a pay-in-full card informs the cardmember of a balance that is due in full; provides the cardmember a predetermined number of grace days for payment of the statement; provides a total balance including the charge and revolve functionality; and includes a minimum due for both of the following options: 1) the charge balance in full with a portion of the revolving balance; or 2) a portion of the total balance where the cardmember can elect to cause an unpaid portion of the charge balance to move into the revolve balance.  
           [0009]    In an embodiment of the present invention, the cardmember is allowed to elect the secondary function of the dual function transaction card, which can be either the cardmember&#39;s election of the pay-in-full charge card secondary function of a dual function transaction card having a revolving credit transaction card primary function or the election of the revolving credit transaction card secondary function of the dual function transaction card having a pay-in-full transaction card primary function. The cardmember elects the pay-in-full charge card secondary function of the transaction card in the aspect with the revolving credit card primary function by exceeding a revolving credit line assigned to the transaction card account or by balance consolidating (“balconning”) an amount that exceeds a revolving credit line assigned to the transaction card account. A cardmember who exceeds the revolving credit line assigned to the transaction card account is required to pay-in-full the balance by which the revolving credit line is exceeded and any charge by the cardmember that exceeds the revolving credit line assigned to the transaction card account is either 1) approved; 2) reviewed for approval and the cardmember may be called to the phone at point of sale (POS); or 3) the purchase may be declined; the decision depends upon the dollar amount of the purchase, the cardmember&#39;s credit history, the length of time the cardmember has been a cardmember, and other criteria as may be determined. The cardmember elects the revolving credit card secondary function of the transaction card in the aspect with the pay-in-full charge card primary function by choosing to make a partial payment of the pay-in-full balance due, by taking a cash advance, or by accepting a balance consolidation (“balcon”) onto the transaction card account. Upon election of the revolving credit card secondary function, a maximum amount is established that the cardmember is allowed to revolve (“revolving credit limit”), and the transaction card is allowed to function as a revolving credit card for balances which the cardmember chooses to revolve.  
           [0010]    A new balance is computed on the account in response to the election of the secondary function by the cardmember. For the election of the pay-in-full charge card secondary function of the transaction card in the aspect with the revolving credit card primary function, a new total balance is computed, which consists of at least a cardmember-chosen revolving balance and a full transaction balance incurred by the cardmember as a result of continued usage of the transaction card. Further, a total minimum due is computed, which consists of at least a minimum due for the revolving balance and the full amount of the transaction balance. For the election of the revolving credit card secondary function of the transaction card in the aspect with the pay-in-full charge card primary function, a new total balance is computed that consists of at least a cardmember-chosen revolving balance and a full transaction balance incurred by the cardmember as a result of continued usage of the transaction card. In addition, a first minimum due option is computed that consists of at least a minimum due for the revolving balance and the full amount of the transaction balance. A second minimum due option is also computed that consists of at least a minimum due for the revolving balance and a minimum due for the transaction balance.  
           [0011]    A key aspect of the credit card account for an embodiment of the present invention is the dual charge and revolve functionality in which, for example, the dual function transaction card is issued to a cardmember with a charge bucket function and a revolve bucket function in connection with the account. The cardmember is allowed to incur charges on the account with the transaction card which fall into the charge bucket for which no interest accrues. Periodically, a statement is issued to the cardmember on the account for a balance payable on the charges in the charge bucket, and if the balance on the charges in the charge bucket is not fully paid, any remaining unpaid balance falls from the charge bucket into the revolve bucket on which interest accrues.  
           [0012]    In this aspect, as mentioned, the cardmember is issued the dual function transaction card with the charge bucket function and the revolve bucket function and allowed to incur new charges on the account by making purchases with the transaction card in a billing cycle which new charges fall into the charge bucket on which no interest accrues. A statement is issued to the cardmember on the account for the current billing cycle at the end of the billing cycle for a balance payable on the charges in the charge bucket, which are allowed to remain in the charge bucket on which no interest accrues, and the cardmember is allowed to continue using the card for new purchases in a succeeding billing cycle which also fall into the charge bucket on which no interest accrues.  
           [0013]    At the end of each billing cycle, the cardmember is allowed to elect either a first minimum due option of paying off the charges in the charge bucket in full or a second minimum due option of payment of a predetermined fraction of the entire balance of the charges in the charge bucket. If the cardmember pays off the charges in the charge bucket in full according to the first minimum due option, all current charges made by the cardmember are allowed to remain in the charge bucket, and all charges for new purchases made in a second succeeding billing cycle also fall into the charge bucket on which no interest accrues, as well. If the cardmember pays the predetermined fraction of the entire balance of the charges in the charge bucket according to the second minimum due option, all of the unpaid charges for purchases for the billing cycle fall into the revolve bucket on which interest accrues.  
           [0014]    Other features in this aspect include, for example, allowing the cardmember to elect, upon issuance of the dual function transaction card, an option for balance consolidation in which charges for all new purchases fall into the charge bucket on which no interest accrues. Further, the dual function transaction card can be issued to the cardmember with the charge bucket function having an associated no preset spending limit feature and the revolve bucket function having an associated revolving credit line. It is to be noted that the cardmember is also allowed to incur new charges on the account by using the transaction card for a cash advance at an ATM which fall immediately into the revolving bucket and begin to accrue interest, while continuing to incur charges for new purchases that fall into the charge bucket on which no interest accrues.  
           [0015]    Additional objects, advantages and novel features of the invention will be set forth in part in the description which follows, and in part will become more apparent to those skilled in the art upon examination of the following, or may be learned by practice of the invention. 
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0016]    [0016]FIG. 1 is a chart which illustrates an example of variations of transaction cards enabled by the method and system for an embodiment of the present invention;  
         [0017]    [0017]FIG. 2 is a flow chart which illustrates an example of the process of notifying the cardmember of the Total Minimum Due in the revolving credit card aspect for an embodiment of the present invention;  
         [0018]    [0018]FIG. 3 is a table which shows an example of the payment hierarchy in the revolving card aspect for an embodiment of the present invention;  
         [0019]    [0019]FIG. 4 is a table which illustrates an example of the payment hierarchy in the revolving card aspect for an embodiment of the present invention if the cardmember does not pay the Total Minimum Due;  
         [0020]    [0020]FIG. 5 is a flow chart which illustrates an example of the process of notifying the cardmember of the Minimum Due Option 1 and/or Minimum Due Option 2 in the pay-in-full aspect for an embodiment of the present invention;  
         [0021]    [0021]FIG. 6 is a table which shows an example of the payment hierarchy in the pay-in-full aspect for an embodiment of the present invention;  
         [0022]    [0022]FIG. 7 is a table which shows an example of the manner in which the payment is assessed for the first Minimum Due option for an embodiment of the present invention;  
         [0023]    [0023]FIG. 8 is a table which shows an example of the manner in which the payment is assessed for the second Minimum Due option for an embodiment of the present invention; and  
         [0024]    [0024]FIG. 9 is a chart which illustrates an example of the dual charge and revolve functionality for an embodiment of the present invention. 
     
    
     DETAILED DESCRIPTION  
       [0025]    Referring now in detail to an embodiment of the invention, an example of which is illustrated in the accompanying drawings, the present invention enables a new family of no pre-set spending financial transaction cards and variations of card products within that family. FIG. 1 is a chart which illustrates an example of variations of transaction cards enabled by the method and system for an embodiment of the present invention. As shown in FIG. 1, one variation of card product  12  enabled by the present invention is a revolving product  14 , which offers the flexibility of revolving a certain balance  18  and paying in full the balance  20  above the revolving credit limit. Another variation of card product  12  enabled by the present invention is a pay-in-full product  16 , which is a charge card  22  offering the flexibility of revolving  24 . This flexibility feature represents a niche between a true charge card and a true credit card. The transaction card  12  of the present invention allows an enrolled cardmember  10  to be flexible in how the cardmember  10  wishes to handle his or her credit by allowing the cardmember  10  the option of choosing when and how much he or she wants to revolve.  
         [0026]    As illustrated in FIG. 1, in the revolving credit card aspect  14 , the transaction card  12  has a dual function as a revolving credit card  18  and pay-in-full charge card  20 . In this aspect  14 , the transaction card  12  is issued and functions as a revolving credit card  18 , for example, with a no preset spending limit. At the time the cardmember  10  chooses to pay in full, the transaction card  12  functions as both a charge card  20  and a credit card  18 . The cardmember  10  transacts each month, and a monthly account statement is issued informing the cardmember  10  of the amount of the balance that can be revolved (“revolving credit limit”) and the amount over and above the revolving credit limit that must be paid in full. The monthly account statement includes, for example, an annual percentage rate (APR) of interest amount and a minimum payment due. The account statement indicates the revolving credit line. The cardmember  10  is given a pre-defined grace period, such as twenty grace days, for payment, similar to a transactor on other transaction cards.  
         [0027]    In the revolving credit card aspect  14 , the transaction card  12  adopts the “pay in full” charge card feature  20  when the enrolled cardmember  10  either chooses to go above the revolving credit line assigned to the cardmember&#39;s account or balcons an amount that exceeds the revolving line of credit for the account. Once the cardmember  10  exceeds the revolving credit limit, all subsequent charges must be paid in full up to the no preset spending limit assigned, for example, by the financial institution. Any charge to the card  12  above the revolving credit line and the no preset spending limit assigned by the financial institution is declined. In essence, the cardmember  10  now has two balances due. One of the balances due is the cardmember-chosen revolving balance, and the other balance due is the full transaction balance incurred by the cardmember  10  as a result of continued usage of the transaction card  12  above the revolving credit limit.  
         [0028]    [0028]FIG. 2 is a flow chart which illustrates an example of the process of notifying the cardmember  10  of the Total Minimum Due in the revolving credit card aspect  14  for an embodiment of the present invention. Referring to FIG. 2, at S 1 , a New Total Balance is calculated, which includes both the revolving balance, including any interest, and the new transaction balance above the revolving credit limit. At S 2 , a Total Minimum Due is calculated, which includes the minimum due for the revolving balance and the full amount of the transacting balance above the revolving credit limit. At S 3 , the statement is changed to reflect that the card  12  is functioning both as a charge card  20  and as a credit card  18 , for example, indicating the new transaction balance due above the revolving credit limit.  
         [0029]    In the revolving card aspect  14  of the present invention, cash advances are treated as revolving credit and have the standard finance charge assessed from the day they are taken until payment is received. FIG. 3 is a table which shows an example of the payment hierarchy in the revolving card aspect  14  for an embodiment of the present invention. As shown in FIG. 3, the cardmember&#39;s payment is applied first to the transaction balance  30 , then to the minimum due in the revolving balance  32 , then to any existing, revolving cash advance amount  34 , and then to any revolving principle that may exist  36 . Once the cardmember  10  has paid his or her balance in full and begins transacting again, the cardmember  10  has the full revolving credit line available once more. A single statement for the cardmember  10  reflects both the transaction  20  and revolving  18  status.  
         [0030]    [0030]FIG. 4 is a table which illustrates an example of the payment hierarchy in the revolving card aspect for an embodiment of the present invention if the cardmember  10  does not pay the Total Minimum Due. Referring to FIG. 4, should the cardmember  10  not pay his or her Total Minimum Due of the new transacting purchases balance above the revolving credit limit and the minimum due from the revolving balance, the cardmember&#39;s payment is applied first to the transaction balance  40  above the revolving credit limit. The remaining transacting balance above the revolving credit limit has a finance charge applied retroactively as if it had been part of the revolving balance as of the transaction date, and the unpaid transaction balance plus interest is added to the remaining revolving balance. At this point, the card can no longer be used until the amount above the revolving credit limit is paid off.  
         [0031]    All fees are in line, for example, with the rest of the card issuer&#39;s business, such as cash advance fees, foreign transaction fees, late fees, bad check fee, and returned payment fee. There is, however, no over-the-credit-line fee for no-preset-spending accounts. Should the cardmember  10  make a partial payment indicating that he or she wants the remaining portion of the cardmember&#39;s balance to enter revolving status  18 , no fee is charged for non-payment of the full balance, and the retroactive interest application serves to cover any late fee. If no payment is received by the grace day date, a late fee is assessed and reflected on the next month&#39;s statement. The cardmember  10  is informed by message statement on the next first statement after he or she becomes past due that his or her balance is past due. The cardmember  10  is reminded that he or she may lose card privileges if the minimum due, if in revolve mode  18 , or the full balance due, if in transacting mode  20 , is not paid in full.  
         [0032]    If payment is still not received by the due date of the next month&#39;s statement, and on each successive month the account is delinquent, an additional late fee of a pre-determined amount is assessed and reflected on the next month&#39;s statement. The cardmember  10  is informed by message statement that his or her balance is past due and that if the cardmember  10  does not pay the balance in full, the cardmember&#39;s card privileges will be suspended. A DCF letter is generated to state that the account is past due and, if not paid in full, that all card privileges will be suspended. The cardmember  10  has a pre-determined number of grace days until his or her card privileges are suspended. Should the card issuer declare the account in default, the full balance is due immediately. A DCF letter and message statement notifies the cardmember  10  that his or her card privileges have been suspended. Should the cardmember  10  default, he or she is charged a punitive APR on the full balance due at the time of default.  
         [0033]    Referring again to FIG. 1, in the pay-in-full aspect  16  of the present invention, the transaction card  12  has a dual function as a pay-in-full charge card  22  and revolving credit card  24 . In the pay-in-full aspect  16 , the transaction card  12  is issued and functions as a pay-in-full product  22 . At the time the cardmember  10  chooses to revolve, the transaction card  12  functions as both a charge card  22  and a credit card  24 . The cardmember  10  transacts each month, and a monthly statement is issued informing the cardmember  10  that either 1) the balance is due in full at the time of billing, or 2) the minimum due of the full balance is due at the time of billing. There is an APR and minimum due reflected should the cardmember elect to revolve any portion of the balance. Since, for example, the account is a no preset spending account, there is a revolving credit line and cash advance limit line indicated on the statement. The cardmember  10  is given a pre-determined number of grace days for payment, similar to a transactor on other transaction cards.  
         [0034]    In the pay-in-full aspect  16  of an embodiment of the present invention, the transaction card  12  remains a pay-in-full product  16  until the cardmember  10  either chooses to make a partial payment of the cardmember&#39;s pay-in-full bill by the due date, chooses to take a cash advance, or chooses to balcon onto the account, should any of these functions be provided. The credit section of the card issuer specifies the maximum amount the cardmember  10  can revolve. Once the pay-in-full product  16  falls into the revolving category  24 , it functions as a credit card only for those balances which the cardmember  10  chooses to revolve. All new monthly purchases from the last bill date are treated as if the cardmember  10  is still transacting and is included in the revolving balance. In essence, the cardmember  10  now has two balances due, known as the Total Balance. One balance is the cardmember-chosen full revolving balance(s), and the other balance is the full transaction balance incurred by the cardmember  10  as a result of continued usage of the card, which the card issuer may want to encourage.  
         [0035]    [0035]FIG. 5 is a flow chart which illustrates an example of the process of notifying the cardmember  10  of the two minimum due calculations, Minimum Due Option 1 and/or Minimum Due Option 2, in the pay-in-full aspect for an embodiment of the present invention. Referring to FIG. 5, at S 6 , a New Total Balance is calculated, which includes both the new transaction balance and the revolving balance(s), including any interest, fees, etc. At S 7 , two Minimum Due options are calculated. A first option includes the full amount of the transaction balance and the minimum due for the revolving balance, and a second option includes the Minimum Due for both the transaction balance and the revolving balance(s). At S 8 , as always, the statement reflects the card is functioning both as a charge card and as a credit card with, for example, an APR.  
         [0036]    In the pay-in-full aspect  16  for an embodiment of the present invention, cash advances are treated as revolving credit and have the standard finance charge assessed from the day they are taken until payment is received. FIG. 6 is a table which shows an example of the payment hierarchy in the pay-in-full aspect  16  for an embodiment of the present invention. As shown in FIG. 6, the cardmember&#39;s payment is applied first to the charge balance  50 , then to the offer (balcon) balance  52 , then to the revolving balance  54 , then to the cash balance  56 , and then to the grandfather balance  58 . FIG. 7 is a table which shows an example of the manner in which the payment is assessed for the first Minimum Due option for an embodiment of the present invention. As shown in FIG. 7, the payment is assessed for the first option to the full amount of the transaction balance  60 , to the minimum due in the revolving balance(s) for purchases, balcon, cash, and/or grandfather  62 , if any, and to any remaining, existing, revolving principle balance(s) for purchases, balcon, cash, and/or grandfather  64 , if any, until paid in full.  
         [0037]    Once the cardmember  10  pays his or her balance in full and begins transacting again in the pay-in-full aspect  16 , the product reverts to a pay-in-full product  22 . A single statement for the cardmember  10  reflects both a transaction  22  and revolving  24  status. FIG. 8 is a table which shows an example of the manner in which the payment is assessed for the second Minimum Due option for an embodiment of the present invention. As shown in FIG. 8, the payment is assessed for the second option to the minimum due in the transaction balance  70 , to the minimum due in the revolving balance(s) for purchases, balcon, cash, and/or grandfather  72 , if any, to the remaining, existing, transaction billed principle balances(s)  74 , until paid in full, and to any remaining, existing, revolving principle balance(s) for purchases, balcon, cash, and/or grandfather  76 , until paid in full.  
         [0038]    All fees are in line, for example, with the rest of the card issuer&#39;s business, such as cash advance fees, foreign transaction fees, late fees, bad check fee, and returned payment fee. There is, however, no over-the-credit-line fee for no preset spending accounts. Should the cardmember  10  make a partial payment, such as at least the Minimum Due Option 2, indicating that he or she wants the remaining portion of the cardmember&#39;s balance to enter revolving status, there is no fee changed for non-payment of the full balance. The interest application serves to cover any late fee. If no payment is received by the grace day date, a late fee is assessed and reflected on the next month&#39;s statement. The cardmember  10  is informed by message statement on the next first statement after the cardmember  10  becomes past due that his or her balance is past due. The cardmember  10  is reminded that he or she may lose card privileges if the minimum due, if in revolve mode  24 , or the fall balance, if in transacting mode  22 , is not paid in full.  
         [0039]    If payment is still not received by the due date of the next (2 nd ) month&#39;s statement, and on each successive month the account is delinquent, an additional late fee is assessed and reflected on the next month&#39;s statement. This late fee is calculated by assessing either a dollar amount or a percentage of the delinquent balance, whichever is greater. The cardmember  10  is informed that his or her balance is past due and that if the cardmember  10  does not pay his or her balance in full the cardmember&#39;s card privileges will be suspended The cardmember  10  has a pre-determined number of grace days until card privileges are suspended.. Should the cardmember  10  default, the cardmember  10  is charged a punitive APR on the full balance past due at the time of default and the past due balance is moved to the punitively priced revolving portion  24 .  
         [0040]    A key aspect of the credit card account for an embodiment of the present invention is the dual charge and revolve functionality. FIG. 9 is a chart which illustrates an example of the dual charge and revolve functionality for an embodiment of the present invention. A critical differentiator from any existing product is that all new purchases  80  that are new charges go into a charge section or segment of the account that can be referred to as the charge bucket  82 . Regardless of whether the cardmember  10  is revolving another balance in a revolve segment of the account that can be referred to as a revolve bucket  84 , these new purchases  80  do not accrue interest. This is unlike any currently existing credit card and is a primary differentiator of the account for an embodiment of the present invention. From a consumer perspective, the consumer expects to pay off the charges that are in the charge bucket  82 . If not paid, the remaining purchases  80  can also fall from the charge bucket  82  into the revolve bucket  84 , on which the consumer is not paying off the balance but is being charged interest. With those two bucket definitions in mind, an embodiment of the present invention has, for example, the dual functionality in terms of the charge bucket  82  and the revolve bucket  84 .  
         [0041]    Assume, for example, that the cardmember  10  receives a new card for the account for an embodiment of the present invention. Initially, there are no charges in either of the two buckets. When the cardmember  10  makes purchases  80  with the card, for example, in the first month after receiving the card, the purchases  80  fall first into the charge bucket  82 . At the end of the first billing cycle, for example, for the first month, the cardmember  10  receives a statement. As the cardmember  10  continues to use the card for purchases  80  in the second month after receiving the card, all of the charges for the first month remain in the charge bucket  82 , and all new purchases  80  made in the second month fall into the charge bucket  82  as well. After the first billing cycle, when the cardmember  10  receives a statement at the end of the first billing cycle, the purchases  80  during the first billing cycle remain in the charge bucket  82 , and there is no interest charged to the cardmember  10  on those purchases  80 . Further, not only do the purchases  80  made during the first billing cycle remain in the charge bucket  82  at the end of the first billing cycle, but also all new purchases  80  made in the second billing cycle fall into the charge bucket  82  as well.  
         [0042]    Continuing with the foregoing example, at the end of each billing cycle, the cardmember  10  has an option of either paying off the charge bucket  82  in full, which is included in the minimum due option one, or a minimum due option two of payment of a fraction (e.g., {fraction (1/48)} th ) of the entire balance of the charge bucket  82 . At the end of the first billing cycle, if the cardmember  10  pays the statement in full, all of the cardmember&#39;s current month&#39;s charges remain in the charge bucket  82 , and the billing cycle starts again with new purchases  80  from the third month falling into the charge bucket  82 , as well. No interest is accrued on the purchases  80  in the charge bucket  82 . If the cardmember  10  chooses to pay, for example, the minimum due option two, all of the remaining purchases  80  for the first cycle (month) fall into the revolve bucket  84  and begin to accrue interest at the cycle date. Therefore, the cardmember  10  has a complete grace period from billing cycle to billing cycle. However, all of the new purchases  80  made after the first billing cycle during the second billing cycle fall into the charge bucket  82  and do not accrue interest. That is differentiated from currently available credit cards. On currently available credit cards, if the cardmember  10  does not pay in full but pays the minimum due instead, all new purchases begin to accrue interest, for example, as of the purchase date or minimum payment date or billing cycle date.  
         [0043]    As an example of the non-interest grace period for an embodiment of the present invention, assume that the cardmember  10  receives the new card on January 1 and goes out and makes a $1,000 purchase  80  on January 2. Assume also that the cardmember&#39;s first account cycle ends January 25, at which time a statement goes out to the cardmember  10  for which payment is not due until February 25. In essence, the cardmember  10  has two billing cycles of grace period on the $1,000 amount of the purchase  80 , and that situation continues from cycle to cycle. A primary distinction between the credit card account for an embodiment of the present invention and a currently available credit card product is that the present invention allows the cardmember  10  to carry a balance from month to month and at the same time to retain that grace period for new purchases  80 .  
         [0044]    In a currently available credit card, if a cardmember  10  elects an option for balance consolidation (balcon) in applying for a credit card, all new purchases are transferred immediately into the revolving bucket. Thus, all new purchases begin to accrue interest as of the day they are made, and there is no charge bucket. Instead, they fall directly into the revolving bucket. However, in the card account for an embodiment of the present invention, if a cardmember  10  elects an option for balcon in applying for the present invention, all new purchases  80  go into the charge bucket  82  and do not earn interest. Further, with regard to a cash advance, when the cardmember  10  applies for and receives a currently available credit card and uses it for a cash advance at an ATM, the cash advance falls immediately into the revolving bucket and begins to accrue interest, and all new charges fall into the revolving bucket and begin to accrue interest. However, with regard to a cash advance, when the cardmember  10  applies for and receives a card account for an embodiment of the present invention and uses it for a cash advance at an ATM, the cash advance falls immediately into the revolving bucket and begins to accrue interest, while all new charges fall into the charge bucket  82  and do not accrue interest.  
         [0045]    Features of the credit card account for an embodiment of the present invention include, for example, a no preset spending limit associated with the charge bucket  82 . Typically, a no preset spending limit allows the cardmember  10  to choose to spend each month as much as the cardmember  10  wishes, subject to certain limitations listed below. The no preset spending limit is distinguished, for example, from a credit line, which sets a maximum amount, above which the cardmember  10  is subject to fees. In addition, an embodiment of the present invention makes use of a revolving credit line associated with the revolve bucket  84 . The cardmember  10  can spend above the revolving credit line but must pay off any amount above the revolving credit line in full each month to remain in good standing. The revolving credit line is also the most the cardmember may revolve from month to month. Limitations once the cardmember  10  goes above the revolving credit line can include, for example, a review of the account by the card issuer, which can, for example, approve the purchase  10  over the revolving credit line on the spot, or place the purchase  10  over the revolving credit line in review for approval and an increase in the revolving credit line, or deny the purchase  10  over the revolving credit line.  
         [0046]    The no preset spending limit is associated with the charge bucket  82 , and the revolving credit line is associated with the revolve bucket  84 , above which the cardmember  10  cannot revolve. An embodiment of the present invention combines aspects of charge and revolve into a single product. In characterizing the functionality of the charge bucket  82  and the revolve bucket  84 , there are certain other features that are associated with those particular buckets and how they function. The no preset spending limit is an aspect of the charge bucket  82  that is attractive to consumers, and the revolving credit line is an aspect associated with the revolve bucket  84 . For example, if the cardmember  10  has a revolving credit line of $5,000 and already has $5,000 in the revolve bucket  84 , the cardmember  10  can continue to make new purchases  80  into the no preset spending limit charge bucket  82 , but must pay those purchases in the charge bucket  82  in full at the end of the bill cycle, because for all amounts over the revolving credit line requirement of payment in full is applied.  
         [0047]    Various preferred embodiments of the invention have been described in fulfillment of the various objects of the invention. It should be recognized that these embodiments are merely illustrative of the principles of the present invention. Numerous modifications and adaptations thereof will be readily apparent to those skilled in the art without departing from the spirit and scope of the present invention.