Patent ID: 7249112

Claim:
A transponder-reader payment system comprising: a. a transponder system responsive to a Radio Frequency (RF) interrogation signal, said transponder system including a transponder database, said transponder database storing at least a transponder system identifier; b. a Radio Frequency Identification (RFID) reader in RF communication with said transponder system, said REID reader providing an interrogation signal to said transponder system and receiving said transponder system identifier; c. a merchant system receiving said transponder system identifier, said merchant system including a merchant system identifier and a merchant point of interaction device in communication with said RFID reader, said merchant system configured to match said transaction system identifier and said merchant system identifier to a user transaction request forming a merchant transaction request; d. an issuer system comprising: i. an issuer system server in communication with said merchant point of interaction device for receiving said merchant transaction request; and ii. an issuer system database including a funding account data file containing a funding account value for satisfying said merchant transaction request and a funding account protocol, said funding account data file associated with said transponder system identifier; e. a primary funding source containing a primary funding source value, said primary funding source in communication with said issuer system server, said primary funding source configured for one of providing value to and receiving value from said funding account data file, said funding source associated with said transponder system identifier; and f. a secondary funding source containing a secondary funding source value, said secondary funding source in communications with said issuer system server, said secondary funding source configured for one of providing value to and receiving value from said funding account data file, said secondary funding source associated with said transponder system identifier; wherein said issuer system provides at least a portion of said funding account value to said merchant system in accordance with said funding protocol, and wherein said funding account protocol includes providing at least one of a portion of said primary funding source value and a portion of said secondary funding source value to said funding account data file in accordance with a predetermined formula.