Methods and Systems for Managing Transaction Card Accounts

Abstract

Methods and systems for managing transaction card accounts in which cardholders are permitted to incur transaction charge balances on existing transaction card accounts and substituting the existing transaction card for each of at least a portion of the plurality of cardholders with a different transaction card product upon an occurrence of one of termination of a private label or co-branded agreement and a predetermined level of inactivity on the transaction card account which has significant additional features and benefits absent from the existing transaction card product.

1 - 15 . (canceled) 
     
     
         16 . A method for managing transaction card accounts, comprising:
 accumulating, using a first processor, charge balances for a plurality of existing transaction card accounts;   identifying, using a second processor, an occurrence of a termination of a private label or co-branded agreement related to at least a first portion of said existing transaction card accounts or a predetermined level of inactivity on at least a second portion of said existing transaction card accounts;   substituting, using a third processor, said identified first portion of the existing transaction card accounts with a different transaction card account usable in a greater number of transaction types and with a greater number of merchants than the transaction card accounts related said private label or co-branded agreement upon identifying the occurrence of the termination of the private label or co-branded agreement; and   substituting, using the third processor, said identified second portion of the existing transaction card accounts with a different transaction card account having a non-industry standard payment hierarchy in which payments are applied to balances accruing interest at non-promotional annual percentage rates of interest before balances accruing interest at a promotional annual percentage rate of interest that is less than the non-promotional annual percentage rates.   
     
     
         17 . The method of  claim 16 , wherein substituting said identified first portion of the existing transaction card accounts with the different transaction card account further comprises substituting the identified existing first portion of the transaction card accounts with the different transaction card account upon identifying the occurrence of the termination of the private label or co-brand agreement by a card issuer or a third party. 
     
     
         18 . The method of  claim 16 , wherein substituting said identified first portion of the existing transaction card accounts with the different transaction card account further comprises substituting the identified first portion of the existing transaction card accounts with a different transaction card account which provides a first predetermined promotional annual percentage rate of interest for any purchase over a first predetermined sum for a first pre-determined period of time. 
     
     
         19 . The method of  claim 18 , wherein substituting said identified first portion of the existing transaction card accounts with a different transaction card account further comprises substituting the identified first portion of the existing transaction card accounts with a different transaction card account which provides a second predetermined promotional annual percentage rate of interest for any purchase over a second pre-determined sum that is greater than the first predetermined sum for a second predetermined period of time that is greater than the first predetermined period of time. 
     
     
         20 . The method of  claim 19 , wherein the first and second predetermined promotional annual percentage rates are less than a predetermined non-promotional annual percentage rate. 
     
     
         21 . The method of  claim 20 , wherein the first and second predetermined promotional annual percentage rates are zero percent. 
     
     
         22 . The method of  claim 16 , wherein substituting said identified second portion of the existing transaction card accounts with the different transaction card account further comprises substituting the identified second portion of the existing transaction card accounts with a different transaction card account which provides a first predetermined promotional annual percentage rate of interest for any purchase over a first predetermined sum for a first pre-determined period of time. 
     
     
         23 . The method of  claim 22 , wherein substituting said identified second portion of the existing transaction card accounts with the different transaction card account further comprises substituting the identified second portion of the existing transaction card accounts with a different transaction card account which provides a second predetermined promotional annual percentage rate of interest for any purchase over a second pre-determined sum that is greater than the first predetermined sum for a second predetermined period of time that is greater than the first predetermined period of time. 
     
     
         24 . The method of  claim 23 , wherein the first and second predetermined promotional annual percentage rates are less than a predetermined non-promotional annual percentage rate. 
     
     
         25 . The method of  claim 24 , wherein the first and second predetermined promotional annual percentage rates are zero percent. 
     
     
         26 . The method of  claim 16 , wherein substituting said identified first portion of the existing transaction card accounts with the different transaction card account further comprises substituting the identified first portion of the existing transaction card accounts with a different transaction card account having a non-industry standard payment hierarchy in which payments are applied to balances accruing interest at non-promotional annual percentage rates of interest before balances accruing interest at a promotional annual percentage rate of interest that is less than the non-promotional annual percentage rate. 
     
     
         27 . The method of  claim 16 , wherein substituting said identified second portion of the existing transaction card accounts with the different transaction card account further comprises selecting a pool of cardholders of the identified second portion of the existing transaction card accounts based at least in part on an application of predefined credit risk parameters to the identified accounts. 
     
     
         28 . The method of  claim 27 , wherein substituting said identified second portion of the existing transaction card accounts with the different transaction card account further comprises providing at least some cardholders in the selected pool of cardholders an opportunity to reject a proposal to substitute the cardholder's existing transaction card account with the different transaction card account. 
     
     
         29 . The method of  claim 28 , wherein substituting said identified second portion of the existing transaction card accounts with the different transaction card account further comprises substituting the identified second portion of the existing transaction card accounts with a different transaction card account for each cardholder in the selected pool of cardholders who fails to reject the proposal to substitute. 
     
     
         30 . The method of  claim 16 , wherein substituting said identified second portion of the existing transaction card accounts with the different transaction card account further comprises further comprises substituting the identified second portion of the existing transaction card accounts with a different transaction card account having a predetermined promotional annual percentage rate of interest for any purchase over a predetermined sum for a pre-determined period of time. 
     
     
         31 . A system for managing transaction card accounts, comprising:
 a first processor coupled to memory, the first processor being programmed for accumulating charge balances for a plurality of existing transaction card accounts;   a second processor coupled to memory, the second processor being programmed for identifying an occurrence of a termination of a private label or co-branded agreement related to at least a first portion of said existing transaction card accounts or a predetermined level of inactivity on at least a second portion of said existing transaction card accounts; and   a third processor coupled to memory, the third processor being programmed for:   substituting said identified first portion of the existing transaction card accounts with a different transaction card account usable in a greater number of transaction types and with a greater number of merchants than the transaction card accounts related said private label or co-branded agreement upon identifying the occurrence of the termination of the private label or co-branded agreement; and   substituting said identified second portion of the existing transaction card accounts with a different transaction card account having a non-industry standard payment hierarchy in which payments are applied to balances accruing interest at non-promotional annual percentage rates of interest before balances accruing interest at a promotional annual percentage rate of interest that is less than the non-promotional annual percentage rates.