Patent ID: 8543499

Claim:
A computer-based method comprising: modeling, by a computer-based system for reducing merchant risks comprising a processor and a tangible, non-transitory memory, consumer spending patterns using individual and aggregate consumer data, including tradeline data, internal customer data, and consumer panel data to produce a model of consumer spending patterns, wherein the computer-based system comprises a processor and a tangible, non-transitory memory, and wherein the model is stored in the memory of the computer-based system; estimating, by the computer-based system, a credit-related characteristic of the customer based on tradeline data of the customer, identified balance transfers of the customer, and the model of consumer spending patterns offsetting, by the computer-based system, the previous balance transfers from the estimated credit-related characteristic; determining, by the computer-based system, a risk value of the customer based on the estimated credit-related characteristic; and making a check acceptance decision based on the determined risk value.