# US 8,751,396 B2 · Financial instrument having loan proceeds and pre-paid characteristics > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 8,751,396 B2 - Document ID: US8751396B2 - Status: Granted - Kind: B2 - Application number: 13/247,911 - Filed: 2011-09-28 - Published: 2012-03-29 - Granted: 2014-06-10 - Earliest claimed: 2010-09-28 - Assignees: Galileo Processing, Inc. - Applicants: Philip Antony Cormier - Inventors: Philip Antony Cormier - Web page: https://patentgrep.com/patent/US8751396B2 ## CPC - G06Q 20/22: Payment schemes or models - G06Q 20/28: Pre-payment schemes, e.g. "pay before" - G06Q 20/40: Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists - G06Q 30/06: Buying, selling or leasing transactions - G06Q 40/02: Banking, e.g. interest calculation or account maintenance (credit or loans G06Q40/03) - G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR ## Abstract Financial methods and systems for using a financial instrument are disclosed. A financial account includes both a loan balance portion and a pre-paid cash balance portion. The loan balance portion and the pre-paid cash balance portion are used in performing a purchase transaction. The purchase transaction is initiated by the account holder using the financial instrument. A prioritization scheme is selected that indicates an order of priority of the loan balance portion and the pre-paid cash balance portion of a financial account. A purchase amount is applied to the financial account according to the prioritization scheme. A transaction fee is not charged by the financial institution when any portion of the loan balance portion is applied to the purchase amount. And, a transaction fee is charged by the financial institution when no portion of the loan balance portion is applied to the purchase amount. ## Claims ### Claim 1 A method performed in a financial system that includes a financial instrument, the financial instrument being associated with a financial account that includes both a loan balance portion and a pre-paid cash balance portion that are used in performing a purchase transaction, wherein the purchase transaction is initiated by the account holder using the financial instrument, the method comprising: receiving at a computing system selection of a prioritization scheme that indicates an order of priority of the loan balance portion and the pre-paid cash balance portion of the financial account that are to be used to fund the purchase transaction, the prioritization scheme is selected by a financial institution and configured to maximize an amount of transaction fees charged for the purchase transaction; receiving at the computing system a purchase authorization for the purchase transaction initiated by the account holder using the financial instrument, the purchase authorization including an account identifier and a purchase amount; applying at the computing system at least a portion of the purchase amount to the financial account according to the prioritization scheme, the purchase transaction configured so that: a transaction fee is not charged by the financial institution when any portion of the loan balance portion is applied to the purchase amount; and the transaction fee is charged by the financial institution when no portion of the loan balance portion is applied to the purchase amount; receiving at the computing system first additional loan balance from a first financial institution; applying the first additional loan balance to the loan balance portion of the financial account; receiving at the computing system second additional loan balance from a second financial institution, wherein the second financial institution is not associated with the first financial institution; and applying the second additional loan balance to the loan balance portion of the financial account. ### Claim 2 (depends on 1) A method according to claim 1, further comprising: determining at the computing system an available balance of a loan balance portion of the financial account identified by the account identifier; and applying at the computing system at least a portion of the purchase amount to the loan balance portion of the financial account if the available balance of the loan balance exists such that the loan balance portion is first used to cover the purchase amount before the pre-paid cash balance according to the prioritization scheme received. ### Claim 3 (depends on 2) A method according to claim 2, further comprising: applying at the computing system any portion of the purchase amount not applied to the loan balance portion to the pre-paid cash balance portion of the financial account. ### Claim 4 (depends on 1) A method according to claim 1, further comprising: determining at the computing system an available balance of a pre-paid cash balance portion of the financial account identified by the account identifier; and applying at the computing system at least a portion of the purchase amount to the pre-paid cash balance portion of the financial account if the available balance of the pre-paid cash balance portion exists such that the pre-paid cash balance portion of the financial account is first used to cover the purchase amount before the loan balance according to the prioritization scheme received. ### Claim 5 (depends on 4) A method according to claim 4, further comprising: applying at the computing system any portion of the purchase amount not applied to the pre-paid cash balance portion to the loan balance portion of the financial account. ### Claim 6 (depends on 1) A method according to claim 1, wherein the first financial institution includes a payday lender where payment for the additional loan balance is due in full at the account holder's next paycheck. ### Claim 7 (depends on 1) A method according to claim 1 wherein the first financial institution includes a pawn shop that offers a secured loan to the account holder, with an item of the account holder's personal property used as collateral. ### Claim 8 (depends on 1) A method according to claim 1, further comprising receiving a direct deposit payment and applying the direct deposit payment to the loan balance portion and/or the pre-paid cash balance portion of the financial account. ### Claim 9 (depends on 8) A method according to claim 8, further comprising first requiring that a direct deposit of a periodic paycheck be set up to obtain the financial account by the account holder. ### Claim 10 (depends on 1) A method according to claim 1, wherein when a transaction fee is charged by the financial institution the transaction fee is charged on a per transaction basis. ### Claim 11 (depends on 1) A method according to claim 1, wherein when a transaction fee is charged by the financial institution the transaction fee is charged on a subscription basis. ### Claim 12 (depends on 1) A method according to claim 1, wherein when a transaction fee is charged by the financial institution the transaction fee is charged on a per transaction basis up to a set limit. ### Claim 13 (depends on 1) A method according to claim 1, wherein the account holder selects the prioritization scheme. ### Claim 14 (depends on 13) A method according to claim 13, wherein the account holder uses an account access including a computer with internet access to access the financial account and set the prioritization scheme. ### Claim 15 (depends on 1) A method according to claim 1, wherein the financial account further includes a credit balance portion. ### Claim 16 (depends on 15) A method according to claim 15, wherein the financial account includes multiple loan balance portions and multiple pre-paid cash balance portions. ### Claim 17 (depends on 16) A method according to claim 16, wherein each loan proceed portion, pre-paid cash balance portion, and the credit balance portion have a configurable usage velocity schedule that dictates how often money may be added to the cash, credit and loan portions and how often money may be spent from the cash, credit and loan portions. ### Claim 18 (depends on 15) A method according to claim 15, wherein the prioritization scheme received indicates that all of the loan balance portion be spent before the pre-paid loan balance portion and credit balance portions are spent. ### Claim 19 (depends on 15) A method according to claim 15, wherein the prioritization scheme received indicates that pre-paid cash balance be spent first, followed by loan balance portion then followed by the credit balance portion. ### Claim 20 (depends on 1) A tangible computer readable medium which stores computer-executable instructions which when executed, the computer-executable instructions cause the one or more processors to perform the method of claim 1.