Abstract:
A method and system for managing financial risk through the use of postpaid processing during use of wireless services is presented within the scope of the following invention. The present invention uses credit card authorization to pre-reserve credit card funds for wireless services in excess of planned usage. Authorizations eliminate the credit risk associated with overages and payment timing, and also maintain a customer experience identical to postpaid processing. The authorizations are invisible to the customer and no charge is brought to a customer&#39;s credit card until the monthly bill is settled. Separating the authorization and settlement stages of retail wireless payment processing allows the branded wireless provider to avoid inherent areas of credit risk during the tenure of a customer&#39;s wireless service, while maintaining a familiar customer experience.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     The present application claims priority under 35 U.S.C. §119(e) to U.S. Provisional patent application entitled “Retail Grab and Go Process” filed on Oct. 20, 2003, having Ser. No. 60/513,154, which is incorporated by reference in its entirety. 
    
    
     BACKGROUND OF THE INVENTION 
     1. Field of the Invention 
     The present invention is related to an architecture that enables a wireless service provider, such as a wireless carrier, a Mobile Virtual Network Operator (MVNO), or a Mobile Virtual Network Enabler (MVNE), to manage financial risk within the context of a branded wireless offering. 
     2. Description of the Background Art 
     Many companies would like to enter the wireless services market, but there is a high barrier to entry. Technology is needed for customer management, order management, applications management, and billing management. Third-party interfaces are needed in order to outsource certain services, such as customer care and distribution and fulfillment. Subscriber interfaces are needed, such as call centers and web portals. 
     In response, new players have emerged in the wireless market. They are known as Mobile Virtual Network Operators (MVNOs). MVNOs offer branded wireless services, including the customer management, order management, applications management, and billing management technology mentioned above. However, MVNOs do not have wireless networks. Instead, MVNOs rely on network operators to provide the underlying equipment and communication capabilities, interfacing their systems with network operator systems as necessary. In general, each MVNO offers wireless services under a different brand. 
     An MVNO-enabler (MVNE) system acts as an intermediary between a brand system and a wireless network by acting as an interface between the brand system and the wireless network. Together, the MVNE system, brand system, and wireless network provide a branded wireless offering. The MVNE system controls customer management, order management, applications management, and billing management. Within the structure of a postpaid wireless offering, there are significant challenges with regards to retail processing of a branded wireless product. Ideally, the product must be suited for “grab and go” purchase where no sales assistance or consultation is necessary at the time of purchase. Also, the product must offer easy to understand communications for the customer and no special sales activity or “in-store technology” required. 
     The product must offer the typical, postpaid experience with which customers have become very familiar. Typical postpaid processing offers unlimited usage and monthly billing. The monthly recurring charge (MRC) is billed in advance, while all overages, per use fees, taxes, and miscellaneous other charges are billed in arrears. 
     A drawback with conventional postpaid processing techniques, however, is the requirement of a credit check for each customer at the purchase stage. The need for a credit check eliminates a large number of potential wireless customers and demands specialized processing at retail. To meet the needs of retailers for a simplified, “grab and go” sale, the product must be enabled for bundle minute offers and it must address several areas of financial concern without the need for a credit check on each customer. 
     When considering the financial risks that are present when engaging in the retail processing of a branded wireless offering, a financial risk manager must maintain product operation within the constraints and operational model of the retail brand. Key constraints of the retail brand can include retail return rate and inventory processing. Also, a financial risk manager must avoid credit risk for the wireless service provider and must offer a product that is simple enough to sell that it qualifies for typical retail margin structure, rather than specialized wireless industry commissions. 
     Within the context of a typical postpaid retail processing system, several areas of credit risk are present when considering the offer of branded wireless service. For the purpose of this general discussion of the background art, two specific examples of credit risk exposure for a branded wireless offering will be mentioned. A first exposure to credit risk occurs within the month of service, when a customer&#39;s wireless usage exceeds the pay-in-advance amount. A second exposure to credit risk can also occur after the billing cycle, when the branded wireless provider is awaiting customer payment. In a typical postpaid financial risk management system, credit risk is addressed by processing a credit check against each customer at the time of purchase. 
     When considering the procedures of typical postpaid financial risk management systems, addressing credit risk by simply processing a credit check against each customer poses significant drawbacks. There is a cost (of time and money) associated with running credit check against each new customer. Also, the possibility of fraud or non-payment is still a viable financial threat despite access to a customer&#39;s credit history. 
     What is needed is a cost effective and customer friendly method for managing financial risks within the framework of a branded wireless offering, which in turn enables the sale of a postpaid wireless product without specialized retail processing. 
     SUMMARY OF THE INVENTION 
     The present invention overcomes the limitations of the conventional system for processing retail transactions in a branded postpaid wireless environment with a system and methods that use credit card authorization to pre-reserve credit card funds. Authorizations eliminate the credit risk associated with overages and payment timing, and also maintain a customer experience identical to postpaid processing. The authorizations are invisible to the customer and no charge is brought to a customer&#39;s credit card until the monthly bill is settled. Separating the authorization and settlement stages of retail wireless payment processing allows the wireless provider to avoid inherent areas of credit risk during the tenure of a customer&#39;s wireless service, while maintaining a familiar customer experience. 
     A system is disclosed for managing financial risk for a branded wireless network, including: a) a retail system; b) a mobile virtual network enabler system; c) a wireless network; and d) a financial risk management system. The system is also equipped with: e) a monitoring system for determining usage levels for a mobile device, the monitoring system coupled to the mobile virtual network enabler to receive usage data; f) a memory module for storing usage data for the mobile device, the memory module coupled to the monitoring system; and g) a financial risk minimizing module for limiting the financial exposure for providing wireless services, the financial risk minimizing module coupled to the monitoring system and the mobile virtual network enabler. In general, the present invention provides a system for limiting financial risk associated with subscribers of wireless services, wherein, the wireless services are provided by a mobile virtual network enabler (MVNE), a Mobile Virtual Network Operator (MVNO), a wireless carrier, or any particular wireless service provider. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         FIG. 1A  illustrates a block diagram of a system for managing financial risk for wireless services, according to one embodiment of the present invention. 
         FIG. 1B  illustrates a block diagram of a system for managing financial risk for wireless services, according to a second embodiment of the present invention. 
         FIG. 1C  illustrates a block diagram of a system for a financial risk management system for wireless services, according to one embodiment of the present invention. 
         FIG. 2  is a flow diagram that illustrates a method for managing financial risk for wireless services, according to one embodiment of the invention. 
         FIG. 3  is a flow diagram that illustrates a method for initialization of wireless services, according to one embodiment of the invention. 
         FIG. 4  is a flow diagram that illustrates a method for monitoring wireless service usage, according to one embodiment of the invention. 
         FIG. 5  is a flow diagram that illustrates a method for minimizing financial risk for wireless service, according to one embodiment of the invention. 
         FIGS. 6A-C  are flow diagrams that illustrates a method for minimizing financial risk for wireless service, according to a second embodiment of the invention. 
         FIG. 7  is a graphical representation of a typical postpaid processing system. 
         FIG. 8  is a graphical representation of a method for managing financial risk for wireless services, according to one embodiment of the invention. 
         FIG. 9  is a graphical representation of a method for managing financial risk for wireless services, according to a second embodiment of the invention. 
     
    
    
     The Figures depict a preferred embodiment of the present invention for purposes of illustration only. One skilled in the art will readily recognize from the following discussion that alternative embodiments of the structures and methods illustrated herein may be employed without departing from the principles of the invention described herein. 
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS 
       FIG. 1A  illustrates a block diagram of architecture  100  for managing financial risk for wireless services, according to one embodiment of the invention. Within the framework of the present invention, a mobile virtual network enabler (MVNE)  112  communicates to the retail brand system  110  and the wireless network  114  by way of network connection  105 , as shown in the architecture  100  for managing financial risk for wireless services. In conventional MVNE wireless service architecture, the MVNE  112  is responsible for initializing accounts, monitoring usage, and processing bills. In other possible embodiments, an MVNO, wireless carrier, or any wireless service provider is responsible for initializing accounts, monitoring usage, and processing bills. 
     In the illustrated embodiment, wireless network  114  comprises a wireless network, including underlying equipment and communication capabilities. For example, wireless network  114  comprises or interacts with wireless base stations, mobile switching centers, messaging service centers (such as short MSCs and multimedia MSCs), home location registers (HLR), and a wired line carrier. Wireless network  114  enables services such as, for example, provisioning, call detail record (CDR) retrieval, trouble ticketing, coverage, suspension, wireless number portability (WNP), and operational support systems/business support systems (OSS/BSS) integration. When a customer uses a wireless device to make a phone call, the call travels through wireless network  114 . 
     In one embodiment, network connection  105  is a public network, such as the Internet. In another embodiment, network connection  105  is a private IP-based Local Area Network (LAN) or Wide Area Network (WAN) or dedicated connection. 
     In the illustrated embodiment, retail brand system  110  is a computer and/or operations system that provides marketing, customer acquisition, and branding of the wireless offering. The retail brand system  110  is similar to a mobile virtual network operator, except that retail brand system  110  does not provide technology for customer management, order management, applications management, and billing management. Instead, these services are provided by MVNE system  112 . 
     In one embodiment of the present invention, the MVNE system  112  includes the financial risk management system  113 A. A second embodiment  102  of the architecture for managing financial risk for wireless services, as diagrammed in  FIG. 1B , allows the financial risk management system  113 B to be outsourced to a third party and coupled to the MVNE system  112  by a support network connection  105 . Whichever embodiment is preferable, the MVNE system  112  will have direct access, by way of the financial risk management system  113 A/B, to customer account information in order to monitor wireless usage, process bills, and ultimately manage the minimizing of financial risks. 
     Referring to  FIG. 1C , a more detailed view of the financial risk management system  113 A/B is provided. The financial risk management system  113 A/B contains an initializing system  116 , monitoring system  118 , financial risk minimizing system  120 , and a database module  122 . If the financial risk management system  113 A/B is outsourced to a third party, the MVNE has direct access to all of the managing systems by way of network connection  105 . The initializing system  116  collects the customer&#39;s credit card information, determines the customer&#39;s monthly wireless usage threshold, authorizes the initial month&#39;s payment and settles the payment with the customer&#39;s credit card company, and initializes wireless service. The monitoring system  118  oversees the usage patterns of a particular customer and reporting this information to the financial risk minimizing system  120 . The financial risk minimizing system  120  analyzes the information received from the monitoring system to maintain the amount of financial risk within defined parameters for the branded wireless service. The data generated within the financial risk management system  113 A/B is stored within database module  122 . The initializing system  116 , monitoring system  118 , and financial risk minimizing system  120  are all interconnected by way of wireless network connection  105  and the monitoring system  118  is coupled to database module  112  by way of network connection  105  as well. The data signals that are passed between the modules in the financial risk management system  113 A/B, according to one embodiment of the present invention, include customer usage, customer profile, and customer subscription information and the like. The structure of system  113 A/B is established for efficient transfer of the data signals in order to effectively minimize financial risks. 
       FIG. 2  is a flow diagram that illustrates a method for managing financial risk for wireless services, according to one embodiment of the invention. The steps for managing financial risk for wireless services include initializing  210  the wireless service, monitoring  212  usage, and minimizing  214  financial risks. Step  216  allows the financial risk management system  113 A/B to continually check, on a monthly, weekly, hourly, sub-hourly, or any chosen period of time, to determine whether wireless service should be suspended or terminated. The financial risk management system  113 A/B determines whether to discontinue wireless service. In one embodiment of the present invention, the financial risk management system  113 A/B determines that wireless service should be discontinued. The financial risk management system  113 A/B reports to the MVNE system  112 , and the MVNE system  112  alerts the wireless network for suspension or termination  218  of service. The MVNE system  112  then notifies  220  the customer that wireless service has been suspended or terminated. In a second embodiment of the present invention the financial risk management system  113 A/B determines that wireless service should not be interrupted. In this case, the system  113 A/B will return to monitoring  212  wireless usage. 
       FIG. 3  is a flow diagram that illustrates a method for initialization of wireless services, according to one embodiment of the invention. As noted above, this is a key component of providing “Grab and Go” functionality. The steps for initializing  210  wireless services begins with a potential wireless subscriber contacting  310  a retailer for the purpose of purchasing a telephone. After purchase of the appropriate phone, the subscriber will contact the retail wireless brand, or the appropriate MVNE on behalf of the wireless provider, with their intention to initiate wireless services. The subscriber&#39;s credit card information is collected  312  by the MVNE system  112  and a transaction is initiated to authorize the customer&#39;s credit card and settle  314  payment for the first month of service. At this point, the MVNE system  112  then communicates with the wireless network  114  and the wireless network  114  initializes  316  wireless service. An important consideration for minimizing financial risk pertains to the specific timing of customer credit card authorization, credit card settlement, and initialization of wireless service. Only after the customer&#39;s credit card has been authorized and settled for the first month of wireless service will the financial risk management system  113 A/B instruct the wireless network  114  to initialize service. 
       FIG. 4  is a flow diagram that illustrates a method for monitoring wireless service usage, according to one embodiment of the invention. The steps for monitoring wireless services include gathering  410  data, storing  412  data in a database, filtering  414  data, and reporting  416  filtered data to the financial risk minimizing system. Data for wireless services contains: information about the customer, including credit card information; how often a customer uses a wireless service (usage); and what type of subscription was purchased, including information regarding the amount of wireless service that has been purchased per month (monthly threshold). The type of subscriptions represented by the preferred embodiments of the present invention rely upon the use of “Grab and Go” technology, where, after an initial sign-up fee, wireless services are rendered before payment as in a typical postpaid retail processing routine. These subscription types are distinguished from wireless subscriptions where services are rendered after payment has been made (pre-paid system). 
     The “Grab and Go” process, where a customer can purchase wireless service by simply visiting their favorite retail location and subsequently activating service using their credit card information, is an extremely time efficient and cost effective way to provide a branded wireless service. The customers are happy with the efficiency and ease of credit card transactions without the need for a time-consuming credit check. The MVNE system  112  is protected from the possibility of credit fraud by the implementation of the financial risk management system  113 A/B, where a postpaid processing system is maintained without the exposure to inherent areas of credit risk. 
     Within the “Grab and Go” process, a monthly threshold for wireless service is established when a customer purchases a certain amount of wireless service, for use each month, during the initialization  210  of wireless service. Any amount of wireless usage that exceeds this threshold, or any other usage threshold established by the financial risk management system  113 A/B, is considered an overage. The data generated by initializing system  116 , monitoring system  118 , and financial risk management system  120 , including information on monthly thresholds, current customer usage, and overage, is then stored in the database module  122  for future analysis. The database module  122  also stores usage information, including a telephone number and electronic serial number, or any particular mobile device identification information, for a plurality of mobile devices. 
     The data can be filtered once, less than once, or more than once throughout the day depending on the preferences of the system administrator. The time when data is filtered can fluctuate from month to month, again at the discretion of the system administrator. In one embodiment, when the data is filtered, a usage report is sent to the financial risk minimizing system  120 . The financial risk management system  113 A/B is further configured to filter out usage data for mobile devices that are prepaid or on a monthly subscription. 
       FIG. 5  is a flow diagram that illustrates a method for minimizing financial risk for wireless service, according to one embodiment of the invention. The first step for minimizing financial risk is to compare  510  the filtered data, that is processed through the monitoring system  118 , to the monthly threshold of wireless service that has been established for the subscriber. At this point, the financial risk minimizing system  120  is capable of determining whether an overage has occurred in step  516 . If an overage does occur, a risk signal is generated, and calculations  524  are made to the amount that a customer is likely to be billed that reflect the excess of wireless service that has been used and any projections of future use for the balance of the billing cycle. If the filtered data does not exceed the monthly threshold, no action is taken and the system  113 A/B continues to monitor customer usage as described in  FIG. 2 . 
     In an alternative embodiment, a risk measurement module is coupled to the database to receive usage information. The risk measurement module generating the risk signal if the usage for a mobile device exceeds the predefined threshold. A credit authorizing unit for authorizing a credit card charge in response to the risk signal, where the credit authorizing unit is coupled to the risk measurement module to receive the risk signal and coupled to a credit card company to send an authorization request. 
     The final step of minimizing financial risk within the structure of a branded wireless offering, according to one embodiment of the present invention, involves authorizing  526  the additional overage amount and then verifying if the customer&#39;s credit card accepted the overage authorization  528 . If the authorization is accepted, no further action is taken in minimizing financial risk; however, if the authorization is not accepted, the system will then make a determination whether to discontinue wireless service, as shown in  FIG. 2 . 
       FIGS. 6A-C  are flow diagrams that illustrate a method for minimizing financial risk for wireless service, according to a second embodiment of the invention. In step  610 , certain predetermined rules are applied for minimizing financial risk. The rules  121  that are applied when considering the reduction of financial risk are based on many parameters. For the sake of a general discussion of possible embodiments of the present invention, customer experience, customer account requirements, and financial considerations are examples of parameters that can be used when determining whether to take action and the amount to bill a customer. A non-exhaustive example set for possible rules  121 , include: if less than 3 consecutive months of successful payment, set overage threshold equal to monthly usage plan amount; if customer has 6+ months of successful payments, set overage threshold equal to twice the monthly usage plan amount; if less than 2 days remain in month, do not execute overage processing and authorization; if subscriber&#39;s usage rate exceeds 300% of the daily average usage rate for the chosen rate plan after the first 5 days of the billing period, initiate an authorization cycle without regard to actual usage versus threshold; if actual usage exceeds overage threshold by 100% and more than 7 days remain in the billing cycle, initiate authorization and charge processing ahead of the monthly bill processing. 
     When considering a customer&#39;s account requirements, for the application of rules minimizing  610  financial risk can include information regarding the prepayment requirements for premium wireless services. Regarding financial considerations, one embodiment for the application of rules minimizing  610  financial risk can include cost of the authorization processing. A second embodiment pertaining to financial considerations for the application of rules for minimizing  610  financial risk, includes information about payment processing experience. A third embodiment pertaining to financial considerations for the application of rules for minimizing  610  financial risk, includes information about credit experience. A fourth embodiment pertaining to financial considerations for the application of rules for minimizing  610  financial risk, includes information about the credit profile of the hosting wireless service provider. A fifth embodiment pertaining to financial considerations for the application of rules for minimizing  610  financial risk, includes information about the duration of the authorization period offered by the issuing bank. 
     The amount that is billed a customer can vary from month to month based upon several factors, including the amount of usage, use of service features or applications, toll or long distance charges, or plan changes. In some cases a customer may exceed their allotted monthly amount of wireless service, which is called an overage. An overage can occur in a variety of ways, and are not limited to the following: when customer usage exceeds the monthly usage threshold; or a customer usage rate exceeds a monthly usage rate threshold; or customer usage exceeds the overage threshold; or the customer usage rate exceeds an overage rate threshold. After rules have been applied for minimizing  610  financial risk, the output of step  612  determines whether an overage is significant enough relative to the usage threshold calculated for the account to merit intervention. In one embodiment of the present invention, the affirmative output (A) of step  612  determines that an overage is sufficient and the affirmative output (A) will be checked  624  for an overage authorization flag before processing the overage amount. In a second embodiment of the present invention, the negative output of step  612  determines that an overage does not merit intervention and the process of minimizing  214  financial risk continues. 
     In the case that the output from step  612  is affirmative (A), the process of minimizing  214  financial risk has the option to authorize  626  a certain overage amount ( FIG. 6B ) after checking  624  for an overage authorization flag. (When the overage authorization flag is set, step  632  requests that a termination flag is initiated.) The exact amount of the overage threshold to be authorized is determined by the application of rules for minimizing  610  financial risk as discussed previously. The overage threshold is added to the monthly threshold that was established during the initialization process. The customer now has an increased reserve of wireless usage, while the wireless service provider has the assurance that the customer&#39;s credit card will be able to cover the cost of additional service. The process of minimizing  214  financial risk is also capable of making more authorizations against a customer&#39;s credit card depending on the amount, and frequency, of any subsequent overages above the initial overage threshold. 
     The process of minimizing  214  financial risk also has the option to check for overage authorization credit failure  628  of the customer&#39;s credit card. This allows the financial risk management system  113 A/B to determine whether or not to suspend a customer&#39;s service if the authorization fails, or to allow the customer a one-time overage grace based upon any rules violations. When a customer&#39;s credit fails an overage authorization, the process  214  makes a determination in step  630  whether to continue wireless service despite the customer&#39;s failed credit. When the output of step  630  is negative (“no”), a termination flag is set  632  and the output of step  632  is returned to the financial risk minimizing system  120  in order to trigger the termination sequence discussed above. When the output of step  630  is affirmative (“yes”), a one-time overage grace is triggered in step  634  where the overage authorization flag is set, and the overage authorization output (B) is returned to the process of minimizing  214  financial risk. When a customer&#39;s credit passes an overage authorization, the output overage authorization output (B) is simply returned to the process of minimizing  214  financial risk. 
     In the case that output from step  612  ( FIG. 6A ) is negative (“no”), the process of minimizing  214  financial risk continues and then makes a determination when a billing cycle has ended in step  615 . When the current billing cycle is still active, the financial risk management system  113 A/B will continue to monitor wireless usage by returning to step  610 . Once a billing cycle is over, the process of minimizing  214  financial risk will determine when a certain period of time (preferably within one week) has passed since the end of the billing cycle in step  620 . Once the time period of waiting has passed, the process of minimizing  214  financial risk will settle  622  the customer&#39;s bill and charge their credit card. While the system  113  A/B is waiting for the certain time period to pass after the end of a cycle, the system  113  A/B will monitor wireless usage by returning to step  610 . 
     In a preferred embodiment of the present invention ( FIG. 6C ), the process of minimizing  214  financial risk has the option to check for monthly threshold authorization credit failure  640  of the customer&#39;s credit card. This allows the financial risk management system  113 A/B to determine whether or not to suspend a customer&#39;s service if the authorization fails or to allow the customer a one-time overage grace. First, the process of minimizing  214  financial risk determines whether a monthly threshold authorization flag has been set. When the monthly threshold authorization flag has affirmatively been set, the process  214  proceeds to the set termination flag step  632 . When the monthly threshold authorization flag has negatively been set, the process  214  proceeds to authorizing  638  the monthly threshold. When a customer&#39;s credit fails a monthly threshold authorization, the process  214  makes a determination in step  642  whether to continue wireless service despite the customer&#39;s failed credit. When the output of step  642  is negative (“no”), a termination flag is set  644  and the output of step  644  is returned to the financial risk minimizing system  120  in order to trigger the disruption sequence discussed previously. When the output of step  642  is affirmative (“yes”), a one-time monthly threshold grace is triggered in step  646  where a monthly threshold authorization flag is set. At this point, the customer&#39;s monthly bill is calculated, printed, and sent ( 648 ,  618 ). 
     When a customer&#39;s credit passes the monthly authorization (or a one-time grace has been allotted), the customer&#39;s monthly bill is calculated  648 , with any overage charges added, and the bill is printed and sent  618  out to the customer. If a predetermined time for waiting for payment has passed and no payment has been received, then the financial risk management system  113 A/B will settle the bill and charge the customer&#39;s credit card. During the time that the system  113 A/B is waiting for a response to a bill being sent, the system  113 A/B is arranged to continually monitor wireless usage and apply any additional overage authorizations that are deemed necessary by the rules for minimizing financial risk. 
       FIG. 7  is a graphical representation of a typical postpaid processing system. Within the structure of a typical postpaid processing system  700 , initial payments  702  are collected that cover the first month-to-date and the next month-in-advance of wireless service. At the time of initialization, a monthly threshold  708  of wireless service is established between the customer and wireless service provider. As the customer begins to use their wireless service, two areas of credit risk ( 710  and  712 ) are readily apparent: within a payment cycle, when usage exceeds  710  the monthly threshold; and, after the payment cycle, when the service provider is waiting  712  for customer payment. Credit risk  712  exists from the time that a billing cycle ends, and the monthly threshold of wireless service is reset, until payment is received  706 . When a bill is sent  704 , that includes any overage charges from the previous cycle and the monthly threshold payment for the next cycle, credit risk  712  is not being fully addressed. 
       FIG. 8  is a graphical representation of a method for managing financial risk for wireless services, according to one embodiment of the invention. When considering the scope of one embodiment of the present invention, a method for managing financial risk  800  within the context of a branded wireless offering begins with a customer establishing a monthly threshold  811  of wireless service by making a payment-in-advance  802  at the time activation. After a period of time, before the end of a billing cycle, and preferably within the first week of a new billing cycle, the financial risk management system  113 A/B authorizes  804  the monthly threshold of wireless usage for the following month. This authorization reduces or eliminates the credit risk associated with payment timing  712  and is, therefore, beneficial to the strategy of the financial risk management system  113 A/B. In the case that a customer exceeds the allotted monthly threshold, an initial overage authorization  806  is processed by the financial risk management system  113 A/B and approved overage threshold  816  is determined. The specific amount of the overage threshold  816  is based upon the application  610  of rules for minimizing financial risk established in  FIG. 6A . This authorization reduces or eliminates credit risks associated with overages  710 . 
     The financial risk management system  113 A/B has capability to initiate additional authorizations against a customer&#39;s credit card if customer usage exceeds the approved overage authorization threshold  816  before the end of a payment cycle. The amount of any additional authorizations against a customer&#39;s credit card, and allotment of an additional overage threshold  818 , are made pending approval and restrictions set by the application  610  of rules for minimizing financial risk. The system  113 A/B is capable of making any number of additional authorizations during a payment cycle, as long as a strict code of customer satisfaction is maintained while minimizing the extent of any financial risk. (For example, when the additional overage threshold  818  is exceeded, a new threshold (not shown) is set and another authorization (not shown) is performed. This process can continue as long as approval is received from the application of rules.) The total amount of approved usage above the monthly usage threshold  811  is considered the overage usage  814 . 
     In accordance with one embodiment of the present invention, credit risk  712  has been eliminated through the establishment of monthly authorization  804 . The customer&#39;s bill (including payment for overage and the next month&#39;s threshold usage) is sent  808  and a settlement  810  against the customer&#39;s credit card is made without the threat of financial risk  712  that is present within the framework of typical postpaid processing systems. At some point after the settlement  810  of a payment cycle is made, an authorization (not shown) for the next month&#39;s monthly threshold is made against the customer&#39;s credit card. As discussed, the financial risk management system  113  A/B avoids credit risk for the hosting service provider and is simple enough to qualify for typical retail margin structure, as all credit risk management processing is handled behind the scenes and without significant impact on retail operations. 
     There are certain circumstances where financial risk needs to be addressed before a customer exceeds their monthly usage threshold.  FIG. 9  is a graphical representation of a method for managing financial risk for wireless services, according to a second embodiment of the invention  900  that is initiated when the first month&#39;s usage threshold of service is paid  902  at activation by the customer, and shortly thereafter, an authorization  904  for the second month&#39;s usage threshold of service is made by the financial risk management system  113 A/B. While the financial risk management system  113 A/B is monitoring  212  customer usage of wireless services during a particular payment cycle, the system  113 A/B will be alerted when a customer usage rate has exceeded the monthly usage rate threshold established at the time of initialization of wireless services. The monthly usage rate threshold is calculated by dividing the monthly usage threshold  908  by a specific sampling time. The sampling time is determined by the monitoring system  118 . The sampling time for monitoring wireless usage can be daily, hourly, sub-hourly, or any fixed time at the choosing of the system administrator. 
     When the financial risk minimizing system  120  is notified that a customer usage rate has exceeded the monthly usage rate threshold, an authorization  906  against the customer&#39;s credit card is made. The amount of the authorization  906  is determined by the application  610  of rules for minimizing financial risk and based upon the results from that determination, an overage rate threshold  916  is approved. The overage rate threshold  916  is established by a temporary approval from the financial risk minimizing system  120  to increase a customer&#39;s usage rate until the end of a particular payment cycle. The financial risk management system  113 A/B will continue to monitor  212  the customer&#39;s usage and make a determination (through application  610  of rules) for future increases in a customer usage rate as more overages occur. As in previous embodiments of the present invention, the customer&#39;s bill is sent  910  (including payment for overage and the next month&#39;s usage threshold) and a settlement  912  against the customer&#39;s credit card can be made without the threat of financial risk  712  that is present within the framework of typical postpaid processing systems. 
     The algorithms and displays presented herein are not inherently related to any particular computer or other apparatus. Various general-purpose systems may be used with programs in accordance with the teachings herein, or it may prove convenient to construct more specialized apparatuses to perform the required method steps. The required structure for a variety of these systems appears from the description. In addition, the present invention is not described with reference to any particular programming language. It will be appreciated that a variety of programming languages may be used to implement the teachings of the invention as described herein. 
     One skilled in the art will recognize that the particular examples described herein are merely illustrative of representative embodiments of the invention, and that other arrangements, methods, architectures, and configurations may be implemented without departing from the essential characteristics of the invention. Accordingly, the disclosure of the present invention is intended to be illustrative, but not limiting, of the scope of the invention, which is set forth in the following claims.