Reducing risks related to check verification
AssigneeAmerican Express Travel Related Services Company, Inc.
InventorsKathleen Haggerty, Benedict O. Okoh, Chao M. Yuan
Life of this patent
Estimating the term…
Abstract
Share of Wallet (“SOW”) is a modeling approach that utilizes various data sources to provide scores that describe a consumers spending capability, tradeline history including balance transfers, and balance information. Share of wallet scores can be used as a parameter for determining whether or not to accept and/or guarantee a check. The share of wallet can be used to calculate a risk value of a customer. For example, the scores can weight one or more factors related to the check writer and differentiate between a low-risk customer and a high-risk customer.
Claims20
A computer-based method comprising:
- modeling, by a computer-based system for reducing merchant risks, consumer spending patterns 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 the model of consumer spending patterns;
- offsetting, by the computer-based system, 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
- assessing a collection probability of a dishonored check based on the determined risk value.
An article of manufacture including a non-transitory, tangible computer readable storage medium having instructions stored thereon that, in response to execution by a computer-based system for reducing merchant risks, cause the computer-based system to perform operations comprising:
- modeling, by the computer-based system, consumer spending patterns 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 the model of consumer spending patterns;
- offsetting, by the computer-based system, 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
- assessing a collection probability of a dishonored check based on the determined risk value.
A system comprising:
- a processor for reducing merchant risks;
- a tangible, non-transitory memory configured to communicate with the processor;
- a modeling module in communication with the processor and configured to model consumer spending patterns to produce a model of consumer spending patterns;
- an estimating module in communication with the processor and configured to estimate a credit-related characteristic of the customer based on the model of consumer spending patterns;
- an offsetting module in communication with the processor and configured to offset previous balance transfers from the estimated credit-related characteristic;
- a determining module in communication with the processor and configured to determine a risk value of the customer based on the estimated credit-related characteristic;
- and
- an assessing module in communication with the processor and configured to assess a collection probability of a dishonored check based on the determined risk value.
Dependencies are inferred from the claim text.