Patent ID: 8650121

Claim:
A hybrid credit card transaction system for processing a transaction, initiated by a cardholder using a hybrid credit card, as either one of a group of virtual standard transactions routed through a clearinghouse or as one of a group of virtual closed loop transactions bypassing the clearinghouse, said transaction system comprising: a hybrid credit card; a merchant having a point-of-sale terminal configured to identify the hybrid credit card and to label the transaction using the hybrid credit card as being one of the virtual closed loop transactions; an affiliated acquiring entity configured to acquire and direct the virtual standard transactions to the clearinghouse and configured to acquire and direct the virtual closed loop transactions so as to bypass the clearinghouse; and an affiliated card issuing entity configured to accept the virtual standard transactions from the clearinghouse and to debit a credit card account and to accept the virtual closed loop transactions and to debit a private label account; wherein the acquiring entity and the card issuing entity participating in the virtual closed loop transaction are separate entities.