Patent Publication Number: US-2010121723-A1

Title: Method for generation of excess funds from credit instruments earmarked for personal use and distribution

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     This is a continuation of U.S. patent application Ser. No. 12/103,868, filed Apr. 16, 2008 entitled A METHOD FOR GENERATION OF EXCESS FUNDS FROM CREDIT INSTRUMENTS EARMARKED FOR PERSONAL USE AND DISTRIBUTION, which application is based on and claims priority to U.S. Provisional Patent Application Ser. Nos. 60/912,033, filed on Apr. 16, 2007, entitled A METHOD FOR COLLECTION OF CHANGE FROM CREDIT NETWORK PURCHASES FOR PERSONAL USE AND CHARITABLE DONATION and 60/912,324, filed on Apr. 17, 2007, entitled A METHOD FOR COLLECTION OF CHANGE FROM CREDIT NETWORK PURCHASES FOR PERSONAL USE AND CHARITABLE DONATION, the entire contents of which are hereby incorporated by reference. 
    
    
     BACKGROUND OF THE INVENTION 
     The present invention relates to attracting, acquiring and retaining holders of credit instruments, and encouraging frequent use of issued credit instruments, and more particularly to generating excess funds for use as donations, contributions and payments to third parties or for credit accumulation by the holders of the credit instruments. 
     Banks, related financial institutions, e.g., credit unions, insurance providers, brokerage firms, etc., merchants, e.g., department stores, gas companies, etc., and any other entity legally entitled to offer credit line or charge account privileges (collectively, with their vendors, “credit issuers”) to consumers, businesses, government agencies and other users (collectively, “consumers”) are having an increasingly difficult time differentiating themselves to consumers in order to generate new credit card customers and to encourage selection and use of the credit card issued by the particular credit issuer in each purchase transaction by each credit card holder. The term “credit card” and the term “credit instrument” are used to mean any credit line account or charge account issued by a credit issuer which may be utilized by an authorized credit instrument account holder (“holder”) to engage in transactions with merchants including transactions commonly referred to as “point of sale” (or “POS”) transactions utilizing any credit network POS payment processing system now known or later developed (“credit processing network”), regardless of the physical or non-physical token, tool or method provided to and utilized by the holder. Such physical tokens, tools and methods may include but are not limited to a traditional plastic credit card or charge card with a magnetic strip, a digital phone with an embedded RFID chip coded with the necessary credit instrument processing information, a biometric reader at POS keyed to relevant data, a SpeedPass® as well as any other physical or non-physical methods and devices now known or later developed to utilize a credit instrument at POS. 
     Many credit issuers utilize the same major, well-known credit processing networks for POS purchases between a holder of the credit instrument and a merchant under applicable laws. Examples of these credit processing networks include systems provided by VISA®, MasterCard®, American Express®, Discover®, etc. Additionally, merchant-controlled credit processing network systems, e.g., ExxonMobil SpeedPass™ and merchant-specific systems, such as Macy&#39;s®, Kohl&#39;s®, etc., and vendor-controlled systems such as those provided by FDR, PayPal™, AirCharge, etc., are utilized by the relevant merchant at POS and by the merchant&#39;s bank and by the credit issuers. Due to the volume, speed, and complexity of transactions performed by the credit processing networks, any requirement for different or exception-based POS transaction processing utilizing any of the POS credit processing networks is expensive and often impractical. 
     The credit issuers sometimes seek relationships with charitable, educational, political or other organizations having name recognition (“affinity organizations”), to market their credit instrument products. Examples of the affinity organizations include the Red Cross, the American Automobile Association®, Columbia University, the Democratic National Committee and Bloomingdale&#39;s. Some of the affinity entities involved with credit issuers are institutions of higher education. For example, alumni/ae of a specific university may be offered a credit instrument, which results in contributions by the credit issuer to the university based in part on the total dollar amount of all transactions of the alumni/ae holders of such credit instrument. The alumni/ae may be interested in applying for, activating and using the university-linked credit instrument for sentimental or charitable reasons, in being associated with and helping the university by generating payments from the credit issuer to the university. 
     By associating the credit instrument with the affinity organizations, the credit issuers create credit instruments each having an affinity with one or more affinity organizations and/or with the holder&#39;s self-interest (“affinity credit instruments”). This affinity is intended to encourage frequent credit card use. For example, Maryland Bank, National Association (MBNA), which is a wholly-owned subsidiary of Bank of America, has agreements with numerous affinity entities/organizations to provide a specific credit card associated with the charity or university to their members and alumni/ae. Often, the credit issuer will make donations to the non-profit entities and contributions to other affinity organizations to promote use of the affinity credit instruments, e.g., credit cards. 
     Alternatively or additionally, the credit issuers may seek to market their credit cards by appealing to the self-interest of the prospective holder of the affinity credit instruments, such as by awarding airline travel miles such as Delta SkyMiles®, sports team paraphernalia such as Yankees® fan items, or discounts on fees such as those charges at Disney® amusement parks, based on the total monthly dollar amount of the credit instrument holder&#39;s transactions, or by awarding points that can be used by the credit instrument&#39;s holder to receive products, services, or future discounts, such as those provided by the American Express® Membership Miles® program. The awards are usually earned when the credit instrument&#39;s holder accepts, activates and utilizes the credit instrument for making at least one POS transaction, and the awards are intended by the credit issuer to satisfy a self-interest of the credit instrument&#39;s holder, for example, earning free or reduced-fee flights on Delta Airlines® or free or reduced-fee New York Yankees&#39; promoted merchandise or game tickets, or receiving various free or reduced-fee products and services arranged by American Express. Therefore, each credit instrument holder with a self-interest in themselves, as well as each affinity organization, can be considered to be an “affinity entity”. 
     The credit issuers find great benefits in affiliating with the affinity entities. These benefits include increased response, activation and retention rates for account holders of credit instruments affiliated with affinity organizations or with themselves, and the name recognition and the ability to associate with good will generated by the work of the affinity organization. 
     The payments made by the credit issuers to the affinity organizations under the existing programs are relatively small. The credit issuers usually pay the charity affinity organization a fee based on total transactions performed by the credit instrument holder, and/or the number of new credit instrument holders retained for a predetermined minimum period, and/or other factors usually favorable to the credit issuers&#39; business. 
     However, two practical problems are faced by the credit issuers associating credit instruments with affinity organizations and by the affinity credit instrument holders: (a) existing programs do not generate funds for charity affinity organizations in excess of the small fees paid by the credit issuers, and (b) the affinity credit instrument holders are not told how much money has been paid to the affiliated charity affinity organizations as a result of the holder&#39;s use of his/her affinity credit instrument. 
     Collection of additional direct donations, i.e., funds to be paid to the charitable affinity organizations and provision of non-profit tax receipts to the affinity credit instrument holders for applicable donations, has been costly, requiring creation and implementation of a specialized processing network separate and apart from the processing networks commonly utilized by the POS merchants, merchant banks and credit issuers for processing the credit card transactions. Similarly, reporting the calculation of the donation amount contributed to the charity affinity organization specifically due to holder&#39;s affinity credit instrument use would require expensive exception processing before each monthly invoice is issued to the affinity credit instrument holder, necessitating additional related costs for processing and customer support expenditures for resulting questions and issue resolution. Similar problems arise in allowing the affinity credit instrument holders to contribute additional funds, or utilize additional funds to make payments, to other affinity entities. 
     What is needed is a way to promote credit instrument acceptance and usage based on an existing relationship or interest between the holder, or prospective holder, of the credit instrument and one or more affiliated entities that includes donations to charitable organizations, contributions and payments to other organizations as well as the credit instrument holder&#39;s self-interest in future discretionary spending or savings. The good will of the affinity credit instrument holder toward the affinity entity will enhance acceptance, activation and use of the credit instrument in order to generate additional funds for the affinity organization or for future use by the affinity credit instrument holder by promoting frequent use of the affinity credit instrument issued by the credit issuers. 
     It is further desirable to generate additional funds while avoiding the need for any new card or device at the POS to capture, record, collect and transmit additional affinity credit instrument holder contributions, i.e., the excess funds, to the affinity entity in the affinity credit instrument holder&#39;s name or as a credit to the affinity credit instrument holder, by using extracted data processing and standard fee, “On Us” or other merchant transactions supported by the credit issuers and the processing networks (as applicable) to stimulate the frequent usage of the affinity credit instrument. 
     A number of programs to provide easy, affordable methods to generate the excess funds for donation, contribution, payment or use as a credit against future purchases by the credit card holders have been suggested. U.S. Pat. No. 5,466,919 discloses a method of charity donation that uses credit cards. The method enables a credit cardholder to make a donation to a cardholder-selected charity at the point of sale moment when the cardholder makes a purchase using the credit card. The donated amount is paid by a sponsoring bank, the credit card company, or the cardholder. However, this method requires identification of a “BAX system” credit cards, i.e., those credit cards affiliated with a charity donation program, by the credit card network transaction processor. The method further requires that “BAX card” transaction data be directed to a special processor dedicated to transactions involving charity donations (see col. 3, lines 18-21). Identifying and separately processing the “BAX card” transactions increases the time and cost of processing such credit card transactions, a major defect which most likely impeded the commercialization of this method. 
     U.S. Pat. No. 5,555,497 describes a new remotely located machine with a modem that is able to take a donation via cash, credit or debit card and transmit the donation to a selected charity. This is a cumbersome process for the cardholder and for the merchant, who must acquire and maintain separate from their POS transaction processing device a new device to record and process the cardholder donations. Additionally, because this patent supports all donation means, it fails to sufficiently motivate credit card use by cardholders. 
     U.S. Pat. Nos. 6,088,682 and 6,112,191 describe attempts to automate more of the donation process. However, each teaches that separate from the network processing device, e.g., for VISA®, MasterCard®, American Express®, etc., the excess funds are generated at POS by the merchant/collectors who process the subscriber/card holders&#39; transactions through a separate remote input device to calculate the excess funds difference between the purchase price of the goods or services and the amount of payment rendered by the card holder (see col. 2, lines 55-60 of Pat. No. 6,112,191 and col. 5, lines 7-10 of the Pat. No. 6,088,682). Once calculated at the POS, such amounts must be accounted for and carried through the entire processing network, including the use of separate identification cards or tokens and separate remote processing terminals, as applicable, thereby increasing processing costs. Additionally, if the credit card holder does not have the separately issued identification card at the POS, any proposed donation by the holder is impossible to calculate or collect. 
     Similarly, U.S. Pat. No 6,164,533 describes the merchant calculating, determining and collecting the rounded-up, excess change on credit card and debit card purchases by identified card holders through a special or modified card reader at the POS (see col. 4, lines 39-45 and col. 5, lines 3-16), and eventually depositing the excess change funds in a savings or Individual Retirement Account separately opened and maintained by the cardholder. 
     U.S. Pat. Nos. 6,876,971 and 6,467,684 describe other attempts to create a cost effective method to acquire credit card customers by enabling them to easily create excess credit card funds on a monthly basis for automatic donation to charity or for automatic use as a credit against future purchases also focus on POS events using newly issued customer identification cards separate and apart from the original credit instrument. 
     U.S. Pat. No. 7,080,775, in an attempt to avoid the POS costs and processing issues discussed above, focuses on back-end calculation and processing of rounded-up, excess funds by the merchant entity, e.g., the electric company, etc., receiving payment from a consumer and does not envision collection of the new, additional funds through a transaction placed on the monthly credit card holder statement, for example as a fee or “On Us” transaction. 
     U.S. Patent Application Publication No. 20030200163 describes encouraging consumers to save money by increasing their credit card transaction amounts in one of a number of ways and automatically investing such amounts in pre-determined investment accounts when minimum accumulated amounts are reached to avoid the cost of triggering a separate charge and transfer (see paragraph 0031). However, this application requires that the transaction be treated differently at POS from the regular POS transactions by the credit issuer once the customer is identified as a contributing customer, thereby increasing processing costs as explained above. 
     Similarly, U.S. Patent Application Publication No 20030225649 describes automatically funding pre-determined investment accounts with excess amounts calculated from credit card use (including round-up calculations, among other algorithms), and makes no mention of facilitating donation of such funds to charity or converting such funds to points for use as a credit against future cardholder purchases. 
     Other patents and patent applications, including U.S. Patents 6,164,533, 6,941,279, and U.S. Patent Application Publication No 20070033134 assigned to the Bank of America teach methods of calculating (including through periodically rounding up debited amounts) and collecting additional funds from credit or debit card purchases for automatic transfer and investment in savings and other pre-linked banking and investment accounts. However, none of these references utilize or suggest methods of utilizing commonly used or standard credit instrument processing to encourage acceptance and frequent usage of the credit instruments. 
     SUMMARY OF THE INVENTION 
     It is an object of the present invention to enable the holders of the affinity credit instruments to generate excess funds through the use of their affinity credit instruments issued by the credit issuers in affiliation with at least one affinity entity and to donate or contribute the excess funds to such affinity entity, where the affinity entity may be the holder of the affinity credit instrument or an affinity organization. 
     It is another object of the present invention to enable the holders of the affinity credit instruments to generate excess funds through the use of the affinity credit instruments and to apply the excess funds as a credit against future purchases by the affinity credit instrument&#39;s holder, where the affinity entity is the holder of the affinity credit instrument. 
     Presented is a method of generating excess funds through use of a credit instrument, the excess funds being earmarked for at least one entity. The method includes the steps of: at least one credit issuer affiliating a credit instrument with the at least one entity; at least one consumer obtaining and activating the affiliated credit instrument and using it to make one or more purchase transactions at one or more points of sale, each transaction having an amount of purchase; and the at least one credit issuer processing each of the one or more purchase transactions. The processing step is carried out using the following steps: performing credit instrument transaction processing procedures using a credit instrument processing network; at a period predefined for generating excess funds, determining if an instrument used to pay for the purchase transaction being processed is the affiliated credit instrument; and if the instrument is the affiliated credit instrument, generating funds in excess of a sum total amount of all purchase transactions made using the instrument at all points of sale. 
     Other features and advantages of the present invention will become apparent from the following description of the invention which refers to the accompanying drawings 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         FIG. 1  is a diagram showing acquisition and activation of new affinity credit instrument holders by credit issuers as well as activating the features of the new affinity credit instruments for existing credit instrument holders in accordance with the present invention; 
         FIG. 2  is a diagram showing processing of the affinity POS credit instrument transactions utilizing a commonly used credit/charge network, and generating the excess funds in accordance with the present invention; 
         FIGS. 3   a  and  3   b  are a flowchart diagram illustrating performance of preferred embodiments of the present invention; 
         FIGS. 4 ,  5  and  6  are illustrations of physical devices which may be issued by the credit issuers and utilized by the affinity credit instrument holders to provide donations, contributions or payments in accordance with one embodiment of the present invention; 
         FIGS. 7 ,  8  and  9  are illustrations of physical devices which may be issued by the credit issuers and utilized by the affinity credit instrument holders for building credit in accordance with one embodiment of the present invention; and 
         FIGS. 10 and 11  are illustrations of physical devices which may be used by the affinity credit instrument holders as alternatives to the devices of  FIGS. 4-9  for providing donations, contributions or payments and building credit in accordance with the embodiments of the present invention. 
     
    
    
     DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS OF THE INVENTION 
     For purposes of the present invention, any organization to which tax-deductible donations or non-tax deductible contributions or payments may be made under applicable law, such as charity affinity organizations and any other organization affiliated with a prospective credit instrument holder, i.e., non-charity affinity organizations, together with the credit instrument holder motivated by self-interest are each referred to as an “affinity entity”. 
     The present invention provides an affinity credit instrument issued by the credit issuers that enables its holders to automatically generate excess funds through the use of the affinity credit instrument, such as an affinity credit card, in making standard credit card POS purchases, and enables provision of donations, contributions and payments by the holder, in the amount of the excess funds, to the specific charity and non-charity affinity entity(ies) with which the affinity credit instrument is associated. 
     Further, the credit issuers are enabled to attract and acquire new and retain existing credit instrument holders by issuing affinity credit instruments to customers based on the customers&#39; interest or affinity in associating with one or more specific affinity entities and in making donations, contributions or payments to such affinity entities. The affinity credit instrument holder&#39;s donations or contributions may be made using excess funds, which are generated monthly through any manner of calculations, including, in a preferred embodiment, by rounding up an amount charged for each POS affinity credit instrument transaction up to a pre-determined aggregate maximum amount. Alternatively, the excess funds may be generated by any number of ways, including adding a predetermined fixed or variable amount to the POS transaction amount or to the total amount owed by the credit instrument holder at any given time, or by changing the round-up calculation. Similarly, the excess funds may be calculated and applied daily, weekly, and/or monthly or according to other schedules or methods in accordance with the affinity credit instrument holders&#39; preferences. 
     After the excess funds calculation is performed, the sum total of the resulting excess funds is placed as a fee or as a merchant charge, i.e., as a charge transaction, preferably as an “On Us” merchant transaction on each affinity credit instrument holder&#39;s statement issued by the credit issuers. 
     The collected excess funds can be donated, contributed or made as a payment to at least one specific affinity entity with the holder&#39;s affinity credit instrument is associated or to satisfy at least one of the affinity credit instrument holder&#39;s self-interest, be converted to points for use as credit against future purchases by the affinity credit instrument holder. The conversion of the excess funds to points and application as a credit may be achieved with or without promotional or matching funds or points from the credit issuers or non-charity affinity entities. In each case, i.e., donation, contribution, payment or credit of the excess funds, possible matching and promotional funds or points may be applied by the credit issuers, third party processors, affiliated entities or other entities, as applicable. 
     The present invention avoids extra costs associated with POS calculation, collection and processing of the excess funds by the merchants and the costs of adding the excess funds to the amounts cleared and charged at POS through credit network processor systems, e.g., VISA®, MasterCard®, etc., through application of a fee or separate charge, preferably as an “On Us” merchant transaction, to the credit instrument to receive the excess funds from the affinity credit instrument holder without involving the POS merchants. Further, the features of the present invention can be added to features of any existing credit instrument relationship, such as those currently offering airline miles or other rewards discussed above. 
     The present invention may be practiced for any financial transaction in which a licensed financial services entity credit issuer extends credit or charging account privileges in affiliation with one or more affinity entities to a prospective affinity credit instrument holder, enabling POS purchases utilizing a credit network including a merchant-specific payment processing network. Such transactions are commonly referred to as “credit card” transactions and generally are not referred as a “debit card” or “check card” transaction. 
     As illustrated in  FIG. 1 , after the owner of the present invention  10  licenses, sells, or assigns the rights in the invention to at least one credit issuer  20 , the credit issuer  20  makes efforts to contract with one or more affinity entity  40 , e.g., various organizations (if desired) seeking donations such as the Red Cross, universities, animal rights groups, cancer research foundations, etc., and (if desired) organizations seeking contributions such as lobbying groups, and (if desired) with affiliated merchants seeking pre- or other payments (such as cruise lines) or seeking to promote the donations or contributions, and/or with the affinity credit instrument holder by appealing to his/her self-interest affinity, for each credit instrument offering. The credit issuers  20  may add the features of the present invention, i.e., generation of excess funds to enable the donation, contribution, payment and credit features of the invention, to any existing credit instrument, such as any credit card. Alternatively, a new standalone affinity credit instrument having the ability to generate excess funds to enable the donation, contribution, payment and credit features of the present invention may be issued by the credit issuers  20  in affiliation with the affinity entities  40 . 
     An affiliated marketing group  30 , internal or eternal to the credit issuers  20  and to the affinity entity  40 , may market an offer of the affinity credit instrument of the present invention to new prospects  50 . Additionally, the affiliated merchant/marketing group  30  may attempt to convert the existing holders of the credit issuers&#39;  20  existing credit instruments to become holders  80  of the affinity credit instrument. 
     Each respondent to the offer  60  accepts standards terms and default settings that include how to accumulate excess funds, e.g., round up change to the next highest dollar or $5 level, add a fixed amount such as a quarter or one or more dollars, add 10% of the purchase price, etc., for every transaction made, or to the total amount owed on the credit instrument, up to a maximum amount of allowable excess funds per month and for certain affinity credit instruments affiliated with its holder&#39;s self-interest, which month to convert points to an affinity credit instrument account credit. 
     The credit issuer  20  reviews each offer respondent&#39;s  60  credit application in accordance with standard credit practices and, upon approval, issues/provides an inactivated affinity credit instrument or feature to the approved applicant  70 . Once the affinity credit instrument or feature is activated, the holder  80  is ready to enter into POS transactions which will start generating excess funds. 
     The terms of use and default settings for the issued affinity credit instrument may be accepted and the affinity instrument activated by any known manner, for example, through use of telephones, Internet connected computing devices, cell phones, personal digital assistants, and other communication devices. Examples of the credit instrument devices provided to new holders  80  are illustrated in  FIGS. 4-11 . In particular,  FIGS. 4 ,  5 ,  6 ,  10  and  11  show examples of devices used to provide the excess funds as donations, contributions and payments, and  FIGS. 7 ,  8 ,  9 ,  10  and  11  show examples of devices that generate the excess funds as credits to the affinity credit instrument. 
       FIGS. 4 ,  5 , and  6  illustrate plastic wallet cards displaying the names and/or logos of the credit issuer  20 , the affinity entity(ies)/organizations that will receive the excess funds, the financial processing network, e.g., for example, VISA®, MasterCard®, American Express®, Discover®, etc., and an affiliated merchant or entity, if any (see  FIG. 4 ). Each affinity instrument could also includes its holder&#39;s name, an expiration date, applicable security codes, encoded magnetic strip, holographic id and other data and devices that are not shown in the Figures. The affinity instrument may further include an embedded chip (see  FIG. 6 ) to interact with the applicable financial processing network. 
       FIGS. 7 ,  8 , and  9  illustrate plastic wallet cards displaying the credit issuer, financial processing network, name of the holder utilizing the excess funds, and an affiliated merchant or entity, if any (see  FIG. 7 ). Each card could also include an expiration date, applicable security codes, encoded magnetic strip, holographic id and other data or devices that are not shown in the Figures. The card may further include an embedded chip (see  FIG. 9 ) to interact with the applicable financial processing. 
       FIGS. 10 and 11  illustrate a cell or digital phone with an embedded chip ( FIG. 10 ) and with a readable graphics bar code device and software ( FIG. 11 ) that may be used instead of a physical credit instrument, such as a traditional credit card, to make purchases. Such devices may also require applicable security and other codes, which are not shown. The same or similar chip may be embedded in other physical devices, such as RFID road toll payment devices and the same or similar readable graphics bar code device and software may be embedded in physical devices, such as digital cameras with RFID chips, rendering such devices equivalent to a credit card. 
     Thus, as illustrated in  FIG. 2  when the holder  80  using the affinity credit instrument makes a POS purchase from a merchant  15 , a transaction is generated. The merchant&#39;s bank  16  performs a settlement, i.e., the merchant&#39;s bank  16  credits or reimburses the merchant  15  for the amount of the transaction less some agreed fee and submits the transaction to the credit issuer  20  for payment via any credit instrument, e.g., credit card, processing network  35 , e.g., VISA®, MasterCard®, DiscoverCard®, American Express®, SpeedPass®, in-house private dedicated networks or systems. If the credit issuer  20  is not the merchant&#39;s settlement bank  24 , it pays the merchant&#39;s bank  16  the submitted amount less an interchange fee, which partially reimburses credit issuer  20  for its expenses, through the processing network  35 . If the credit issuer  20  is the merchant&#39;s settlement bank  26 , then processing, clearing, and settlement of the merchant payment is entirely internal to the credit issuer  20  and the processing network  35  is not used, as illustrated by arrow A. After the transaction is processed, the merchant  15  receives a payment and the credit instrument holder  80  receives a bill and pays for the purchase. 
     Additional information on how common credit card processing works is provided on the Internet at www.mastercard.com/us/merchant/how_works/index.html. This may also be seen in  FIG. 1  of U.S. Patent Application Publication Number 20060047589. 
     In the normal course of business and in accordance with standard credit card transaction processing, the credit issuer  20 , either directly or through a third party processor, processes all of holder&#39;s credit card transactions, and prepares and sends a monthly statement to each affinity credit instrument holder  80 , to which the holder  80  responds, as illustrated by arrow B. 
     During periodic back-end processing of the affinity credit instrument and holder&#39;s transactions unrelated to POS transaction processing, when the credit issuer  20  recognizes the credit instrument used by the holder  80  as the affinity credit instrument, the credit issuer  20 , acting as the settlement bank  24  for an excess funds manager, extracts relevant holder  80  transaction data and provides it to an excess funds manager  65 , which performs the steps that generate and manage the excess funds. The excess funds manager  65  may use a database server  75  to process the extracted data to calculate the amount of the excess funds and update relevant data fields, submitting to the credit issuer  20  a fee or merchant charge, and in the preferred embodiment placing an “On Us” transaction, for the amount of the excess funds to the holder&#39;s  80  monthly statement. 
     The excess funds paid to the credit issuer  20  are held at the credit issuer  20  or at a funds holder facility  85  until applicable chargeback rights have expired, after which they may either be made as a donation to a charity affinity organization  40   a  or a contribution or payment to a non-charity affinity organization  40   b  (such as the holder&#39;s bank or other financial institution for deposit in one of holder&#39;s accounts), or converted to points  90 , with or without matching or promotional funds or points awarded by the credit issuers or affinity organizations. If converted to points, the points are later converted back to currency and applied as a fee credit or merchant credit, and in the preferred embodiment placed as an “On Us” credit, on the holder&#39;s  80  statement during the applicable month. Each of the above activities results in applicable updates to the excess funds database server  75 . 
       FIG. 3   a  illustrates the steps of the transactions illustrated in  FIG. 2 . First, as discussed with reference to  FIG. 1 , at the time the holder  80  has accepted a specific affinity credit instrument offer from credit issuers related to one or more affinity entities or to the holder&#39;s self-interest, the holder  80  accepts default settings for various preferences such as rounding amounts, maximum monthly amounts, use of excess funds generated, etc., in step  110 . These preferences may be modified by the holder  80  throughout the term of holder&#39;s affinity credit instrument in accordance with the credit issuer&#39;s  20  policies. The changes may include, for example, increasing the round-up level to the next highest amount ending in $5.00 instead of $1.00 or raising or lowering the maximum monthly excess funds within predetermined limits, e.g., capped at $20 per month or any selected dollar limit. 
     The affinity credit instrument is a commonly used credit instrument, such as a credit card and a charge account, and any existing credit instruments may be converted and used as an affinity credit instrument, however, the credit issuer  20  must be able to determine, e.g., using the account number, that the credit instrument is an affinity credit instrument. A manner in which the holder  80  can add the features of the present invention that allow for accumulation of excess funds and donation, contribution, payment or credit of these funds is shown by arrow D ( FIG. 1 ). For example, the holder  80  may visit a website managed by the excess funds manager or may call customer support to accept an offer with suggestions, or defaults, regarding how the excess funds are to be collected and distributed, i.e., credit or donation/contribution/payment, provide relevant account information and consent, and specify a starting period, e.g., the next regularly scheduled cycle. After the holder&#39;s information and consent are provided to the credit issuer, which may include the credit issuer&#39;s third party processor companies, the holder&#39;s account is identified or tagged as an affinity credit instrument. 
     At the holder&#39;s request the credit issuer may provide a new physical device, e.g., plastic credit cards shown in  FIGS. 4-9 . One reason for issuing the affinity credit instrument physical device is to remind their holders why they should select the particular affinity credit instrument for making POS purchases. However, it is important to note that the affinity credit instrument is a credit or charge account and no physical device is necessary to practice the present invention by making a point of sale transaction. 
     At step  112  a POS purchase is made by the holder  80  using the affinity credit instrument from a merchant  15  and at steps  114  the purchase transaction is processed using credit transaction network processing. The purchase using the affinity credit instrument can be made through any available, commonly used credit card means, e.g., in person at a store, via a telephone, via a fax, via cable or satellite TV, via the Internet, via a cell phone, or via PDA/wireless devices or any other credit instrument processing method without requiring additional equipment. The transaction is first processed at the merchant&#39;s bank  16  and then forwarded via the credit instrument-processing network  35  or directly (see arrow A,  FIG. 2 ) to the credit issuer  20 . 
     At step  116 , where the credit issuer  20  is not the merchant or settlement bank, the credit issuer  24  performs standard/common processing of each POS transaction and pays the amounts owed to the merchant  15  to the merchant&#39;s bank  16 , after which, the credit issuer continues to process transactions of the affinity credit instrument holders and of holders of its other credit instruments, prepares monthly statements for and processes any payments by the affinity credit instrument holders, as indicated arrow B ( FIG. 2 ). 
     At step  118 , as part of common processing, where the credit issuer is also the merchant&#39;s settlement bank  26 , the credit issuer settles/makes payment of applicable POS charges to the merchant&#39;s account at the credit issuer  26  as indicated by arrow A ( FIG. 2 ), prepares monthly statement for and processes any payments by the affinity credit instrument holders, as indicated arrow B ( FIG. 2 ). 
     Periodically and unrelated to the POS transaction, at step  119  the use of an affinity credit instrument is determined, for example through the use of a plug-in software tool. If the affinity credit instrument was not used, common processing resumes at step  128  with, for example, preparation of an invoice for the holder  80  ( FIG. 2 ). If the affinity credit instrument was used, then at step  120  the credit issuer  20  (or its third party processor) will periodically extract relevant transaction data and at step  122  transfer these data to the excess funds manager  65 , which at step  124  calculates the correct excess funds for each and all transactions in accordance with the affinity credit instrument holder&#39;s applicable preferences and updates the database  75  with the total calculated amounts of the excess funds. 
     At step  126 , the close of each monthly billing cycle, the excess funds manager, which, in the preferred embodiment, has been designated a fee services provider or has been issued a Merchant ID by the credit issuer  20  acting as its settlement bank  26 , prepares and submits a fee or an “On Us” transaction as a charge to the affinity credit instrument holder&#39;s account for the amount of the monthly calculated total excess funds and other relevant information for inclusion in the text portion of the holder&#39;s monthly statement via the notes or comments field of the relevant transaction. 
     At step  128 , the credit issuer  20  prepares the monthly statement for affinity and non-affinity credit instrument holder&#39;s accounts. The “On Us” or other charge or fee for the applicable excess funds is included for each affinity credit instrument holder as well as related explanations. Relevant databases are updated with the statement information and credit issuer  20  issues the statements to each affinity credit instrument holder. 
     From time to time, the credit issuer  20  also makes payment to the merchant&#39;s bank  16  for each applicable merchant POS transaction via standard procedures, less applicable fees. 
     As illustrated in  FIG. 3B , in step  130 , it is determined if, after a predetermined time interval following issuance of the monthly statement during which the affinity credit instrument holder may legally question or refuse to pay the excess funds (“chargeback period”), the holder  80  fails, questions or refuses to pay the excess funds amount due, at step  132  the credit issuer  20  will take whatever action is warranted in accordance with standard policies and procedures, for example, reporting the account to customer service  110  and failing to process new excess fund into the holder&#39;s credit instrument account. 
     Alternatively, if the excess funds payment is made by the affinity credit instrument holder and the chargeback period has ended, the excess, matching and promotional funds are, at step  134 , collected and deposited into the excess funds manager&#39;s account at the credit issuer, are periodically transferred to the funds holder facility  85  ( FIG. 2 ) and the databases will be updated. 
     If it is determined at step  136  that the holder has selected to use some or all of the excess funds to provide a donation/contribution/payment, then at step  142 , for the January monthly statement the prior year&#39;s total amount of excess funds paid to the affinity entity is included and, at step  144 , during the months designated for payment of pending excess funds to the affinity entity, e.g., quarterly, semiannually, etc., all pending excess funds and related matching or promotional funds will be transferred to the affinity entity(ies) earmarked by the holder&#39;s affinity credit instrument and the databases will be respectively updated. 
     The databases are updated with relevant information, e.g., add the amount transferred to the affinity entity to the “paid excess funds” total year to date, decrease the “pending excess funds” by an equal amount. Additionally, any matching or promotional amounts may be added in accordance with stated promotions, which are separately calculated, billed, and collected via data transfers/requests to the affinity entity(ies) based on affinity credit instrument holder&#39;s activity/transactions. 
     Further, the affinity entities may be provided with reports  144 , including information regarding each holder&#39;s total donations/contributions/payments. Such information may enable the affinity entities to issue receipts or statements required by law or regulation and to efficiently combine the information of donations/contributions/payments made through the affinity credit instrument with information regarding other donations/contributions/payments made by the same affinity credit instrument holder independent of the affinity credit instrument of the present invention. Such information may also be useful to the affinity entities for donor, contributor or payment database management and for preparing combined donation, contribution and payment receipts and statements of total individual donations/contributions/payments made in given year or as of a certain date, e.g., university alumni/ae donations made through the affinity credit instrument would be added to other contributions by the same alumni/ae for total tax-deductible donations receipt and recognition in an annual giving campaign period. 
     Where at step  136  it is determined that the credit instrument holder selected to use some or all of the excess funds under the credit feature of the present invention, at step  138  such excess funds will be converted to points, for example, $0.01=1 point, $1.00=100 points, etc, and the points are recorded in the databases. At step  140 , when the affinity credit instrument holder&#39;s monthly invoice cycle is the default month, e.g., December Holiday Shopping credit, or is the month selected by the affinity credit instrument holder for an event; e.g., August Vacation credit, September College Books credit, etc., points are reconverted to dollars at the same ratio, i.e., 100 points=$1.00, and the resulting credit is applied to the holder&#39;s statement while appropriate updates are made to the database. In this fashion, the affinity credit instrument holder receives the benefit of “spending” their excess funds in a planned, pre-determined month against anticipated expenses through additional use of the affinity credit instrument. 
     Any promotional matching funds, matching points or other promotions offered by the credit issuer  20 , any affiliated merchant, the excess funds manager or other third parties, e.g., a major charity donor, will also be calculated, invoiced, collected and deposited by the excess funds manager  65  in the in the excess funds manager&#39;s account at the credit issuer  20  or in the funds holder facility  85  ( FIG. 2 ), and the database  75  will be updated with all the relevant information, and the matching or promotional funds paid to the affinity entity, however donations will NOT be paid in the affinity credit instrument holder&#39;s name for tax receipt purposes, or converted to points and deposited in the holder&#39;s account for standard points treatment. 
     Any customer support issues are handled by standard customer support systems managed by the credit issuer and the excess funds manager as described in step  110 . Additionally, affinity credit instrument holders may be given access to specific customer support systems and data interfaces at secure web-sites, including for changing their preferences related to the use of the affinity credit instrument as described in Step  110 . 
     Finally, the processing of steps  140 ,  142  and  144  are completed and at step  146 , it is determined if the affinity credit instrument holder has made any changes to its profile, i.e., as in step  110 ; if so, those changes are applied at step  110 . Otherwise processing resumes at step  112  where POS purchases are made by the affinity credit instrument holder. 
     The present invention has been described herein by the preferred embodiments, it will be understood that those skilled in the art that various changes may be made and added to the invention. The changes and alternatives are considered to be within the spirit and scope of the present invention. 
     Although the present invention has been described in relation to particular embodiments thereof, many other variations and modifications and other uses will become apparent to those skilled in the art. It is preferred, therefore, that the present invention be limited not by the specific disclosure herein, but only by the appended claims.