Browse Prior Art Database

system for promoting secondary credit card holder to be a new account owner

IP.com Disclosure Number: IPCOM000178285D
Original Publication Date: 2009-Jan-21
Included in the Prior Art Database: 2009-Jan-21
Document File: 2 page(s) / 21K

Publishing Venue

IBM

Abstract

A new type of credit card system will allow a credit card owner (e.g. parent) to promote a secondary card holder (e.g. young adult child) so that the secondary holder can acquire an account of his own. In a preferred embodiment, an electronic form is used by both parent and child to complete the transaction requiring both their electronic signatures.

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system for promoting secondary credit card holder to be a new account owner

system for promoting secondary credit card holder to be a new account ownersystem for promoting secondary credit card holder to be a new account owner

Disclosed is a system allowing a credit card owner (e.g. parent) to promote a secondary card holder (e.g. young adult child age 18 or older) so that the secondary holder can acquire his own account. The child acquires ownership of and responsibility for the new credit card account. A card is created for the child using the same credit rates , rewards, and incentives associated with the original credit card . To limit risk to the vendor, the new card will have a trial period. In order to establish the account, both the parent and child must participate in the transaction and provide their electronic signatures , thereby eliminating possibility for fraudulent requests .

The system places emphasis on the family recommendation to allow the new card to be created. This is similar to other systems whereby a strong recommendation from a reliable source convinces a company that the risk is reasonable . It is to the advantage of the credit card company to take steps to meet the business needs of the people in a family. The system inspires customer loyalty to the credit card vendor by all family members.

In a preferred embodiment, the parent and child fill out an electronic form . The parent must agree to have the parent's credit card account to be modified as part of the transaction (verifying the parent's intent); the specific action that the parent consents to is to remove the child as a secondary card holder on the parent 's account. The child, who is financially responsible for the new account , must sign for liability to the new account. It is the combination of these two acts involving both the parent and the child which demonstrate the intent to the credit card company that the parent recommends the child as a new account holder to the credit card company and the child agrees .

Here is the flow of a preferred embodiment:
-- A consumer with established credit rating has a credit card , and the consumer's family member (e.g. young adult child) is listed as a secondary card holder. The credit card has associated excellent rates, rewards, and incentives, which presumably gives the parent a very favorable opinion of the credit card vendor .
-- The child needs his own credit card, therefore the parent and child visit the credit card company website and request a promotion for the child , with a trial period (e.g. six months). In the preferred embodiment, this transaction is done via electronic form at the credit card website.
-- The form allows the parent to agree to remove the child from the parent 's...