Patent ID: 8442911

Claim:
A system for charging fees to a card holder of a credit card account comprising: a memory; and a number of processors configured to execute computer readable instructions stored in the memory and executed to: determine that the card holder has opted in for the credit card account; calculate the prepaid interest amount based on: a term over which the prepaid interest is to be calculated; an amount of interest charges on the credit card account should the card holder carry a balance on the card for the term; wherein the prepaid interest amount is defined to be a portion of the amount of interest charges on the credit card account should the card holder carry a balance on the card for the term; and charge the prepaid interest amount to the credit card account in lieu of charging interest on an actual balance of the account; determine whether the prepaid interest amount has been received; responsive to a determination that the prepaid interest amount has been received, charging the card holder only an unpaid balance of the account with no interest; responsive to a determination that the prepaid interest amount has not yet been received, charging the card holder the unpaid balance with interest; and allow the card holder an option to start charging interest on the actual balance of the account instead of the prepaid interest amount after a pre-determined term has expired.