Merchant account activation system

Abstract

A merchant account activation system that includes an Internet server that works in conjunction with a master account file operating on a mainframe computer and an expert computer system that is used to configure point-of-sale terminals. Many of the steps of the activation procedure arc performed by a merchant activation routine running on the Internet server, which allows a merchant account may apply for a merchant account during an on-line session conducted with the Internet server. The merchant activation routine obtains application information from the applicant during an on-line session, conducts a credit check and “scores” the application as a credit risk during the on-line session. If the application is approved, the merchant activation routine displays a fee schedule and associated terms and conditions to the applicant for acceptance. In response to merchant acceptance of the terms and conditions of a merchant account during an on-line session, the merchant activation routinc or an associated computer operated by the acquirer generates identification information associated with the merchant account and the point-of-sale terminal, such as a Merchant Identification Number %) and a Terminal Identification Number (TID).

1 . A method for configuring a point-of-sale terminal for use in connection with a merchant account, comprising the steps of: 
 during an on-line session with an applicant for a merchant account, 
 receiving information from the applicant completing an application for the merchant account,  
 receiving information from the applicant selecting a point-of-sale terminal for use in connection with the merchant account,  
 based on the received information, determining terms and conditions applicable to the applicant's merchant account upon acceptance;  
 displaying such determined terms and conditions to the applicant relating to the administration of the merchant account, and  
 receiving an indication of acceptance of the terms and conditions from the applicant;  
   in response to the indication of acceptance of the terms and conditions from the applicant and during the on-line session, generating identification information associated with the merchant account and the point of sale terminal, the identification information comprising a merchant ID (MID) and a terminal ID (TID);    during the online session, configuring an account file for administration of the merchant account with the identification information; and    configuring the selected point of sale terminal with the identification information from the account file.    
     
     
         2 . The method of  claim 1 , wherein the terms and conditions include a fee schedule for services relating to the administration of the merchant account.  
     
     
         3 . The method of  claim 1 , wherein the step of configuring the point of sale terminal with the identification information comprises the steps of: 
 programming the point of sale terminal with the identification information; and    shipping the point of sale terminal to the applicant.    
     
     
         4 . The method of  claim 1 , wherein the step of configuring the point of sale terminal with the identification information comprises the steps of: 
 receiving a telephone directory number associated with a point of sale terminal already in possession of the applicant;    placing a telephone call to the directory number associated with the point of sale terminal already in possession of the applicant; and    reprogramming the point of sale terminal already in possession of the applicant with the identification information during the telephone call.    
     
     
         5 . The method of  claim 1 , further comprising the steps of, during the on line session: 
 determining a credit risk score for the application; and    based on the credit risk score, establishing the terms and conditions for the merchant account.    
     
     
         6 . The method of  claim 1 , further comprising the steps of, during the on line session: 
 determining a credit risk score for the application;    based on the credit risk score, determining whether to accept the application; and    automatically transmitting an e-mail message to notify the applicant whether the application has been accepted.    
     
     
         7 . The method of  claim 1 , further comprising the step of, during the on line session, electronically issuing a visitation order requesting a physical visit to the premises of the applicant to verify that the applicant is conducting a type of business stated in the application.  
     
     
         8 . The method of  claim 1 , wherein the step of receiving information from the applicant completing an application for the merchant account further comprises the steps of: 
 prompting the user to enter business contact information;    prompting the user to enter business premises information;    prompting the user to enter business sales data; and    prompting the user to enter business owner information.    
     
     
         9 . The method of  claim 1 , wherein the step of receiving information from the applicant completing an application for the merchant account further comprises the step of prompting the user to provide information relating to funding for the charges associated with administering the merchant account.  
     
     
         10 . The method of  claim 1 , wherein the step of receiving information from the applicant selecting a point of sale terminal for use in connection with the merchant account further comprises the steps of: 
 displaying a menu of point of sale terminal options;    displaying a view control item in association with each option;    receiving a user command selecting a particular view control item; and    displaying an image depicting the point of sale terminal associated with the selected view control item.    
     
     
         11 . The method of  claim 1 , further comprising the steps of: 
 receiving a business type designation from the applicant;    determining a business risk category associated with the business type designation; and    implementing risk adjustment measures based on the business risk category associated with the business type designation.    
     
     
         12 . The method of  claim 11 , wherein the step of implementing risk adjustment measures based on the business risk category associated with the business type designation further comprises the steps of: 
 displaying a menu of risk adjustment measures;    receiving a user command from the applicant indicating a preferred risk adjustment selection; and    implementing the risk adjustment measures based on the preferred risk adjustment selection.    
     
     
         13 . The method of  claim 11 , wherein the step of implementing risk adjustment measures based on the business category associated with the business type designation further comprises the steps of: 
 determining a reserve requirement;    displaying the reserve requirement to the applicant; and receiving a user command from the applicant accepting the reserve requirement.    
     
     
         14 . The method of  claim 11 , wherein the step of implementing risk adjustment measures based on the business risk category associated with the business type designation further comprises the steps of: 
 determining a risk adjusted fee schedule;    displaying the risk adjusted fee schedule to the applicant; and    receiving a user command from the applicant accepting the risk adjusted fee schedule.    
     
     
         15 . (canceled)  
     
     
         16 . (canceled)  
     
     
         17 . A method for configuring a point of sale terminal for use in connection with a merchant account, comprising the steps of, during an on line session with an applicant for a merchant account: 
 receiving information from the applicant completing an application for the merchant account including business contact information, business premises information, business sales data, business owner information, and information relating to funding for the charges associated with administering the merchant account;    displaying a menu of point of sale terminal options, displaying a view control item in associated with each option, receiving a user command selecting a particular view control item, and displaying an image depicting the point of sale terminal associated with the selected view control item;    receiving information from the applicant selecting a point of sale terminal for use in connection with the merchant account including:    determining a credit risk score the application;    based on the credit risk score, determining terms and conditions applicable to the applicant if accepted including a fee schedule for the merchant account;    displaying the determined terms and conditions to the applicant relating to the administration of the merchant account;    receiving an indication of acceptance of the terms and conditions from the applicant;    generating identification information associated with the merchant account and the point of sale terminal;    configuring an account file for administration of the merchant account with the identification information; and    electronically issuing a visitation order requesting a physical visit to the premises of the applicant to verify that the applicant is conducting a type of business stated in the application.    
     
     
         18 . The method of  claim 17 , further comprising the steps of, either during or subsequent to the on line session: 
 programming the point of sale terminal with the identification information; and shipping the point of sale terminal to the applicant.    
     
     
         19 . The method of  claim 17 , further comprising the steps of, either during or subsequent to the on line session: 
 receiving a telephone directory number associated with a point of sale terminal already in possession of the applicant;    placing a telephone call to the telephone directory number associated with the point of sale terminal already in possession of the applicant; and    reprogramming the point of sale terminal already in possession of the applicant with the identification information during the telephone call.    
     
     
         20 . (canceled)  
     
     
         21 . (canceled)  
     
     
         22 . A method for configuring a point of sale terminal for use in connection with a merchant account, comprising the steps of, during an on line session with an applicant for a merchant account: 
 receiving a business type designation from the applicant;    determining a business risk category associated with the business type designation;    based on the business risk category associated with the business type designation, determining risk adjustment measures comprising a reserve requirement and a risk adjusted fee schedule for services related to administration of the merchant account;    displaying terms and conditions relating to the risk adjustment measures;    receiving an indication of acceptance of the terms and conditions from the applicant;    generating identification information associated with the merchant account and the point of sale terminal, the identification information comprising a merchant ID (MID) and a terminal ID (TID) associated with a selected point-of-sale terminal;    configuring an account file for administration of the merchant account with the identification information and the risk adjustment measures; and    configuring the selected point-of-sale terminal with the identification information.    
     
     
         23 . The method of  claim 22 , further comprising the steps of, either during or subsequent to the on line session: 
 receiving information from the applicant selecting a point-of-sale terminal for use in connection with the merchant account; and    configuring the point-of-sale terminal with the identification information.    
     
     
         24 . (canceled)  
     
     
         25 . (canceled)  
     
     
         26 - 44 . (canceled)  
     
     
         45 . The method of  claim 1 , wherein the information from the applicant selecting a point-of-sale terminal for use in connection with the merchant account comprises selecting from a new terminal for the applicant or an existing terminal already in possession of the applicant.  
     
     
         46 - 55 . (canceled)