System and Method for Linked Account Having Sweep Feature

Abstract

A linked account instrument is used to access funds in an existing demand deposit account held at a financial institution. Merchant or other transactions are first processed against a demand deposit account via an electronic authorization network. If the demand deposit account does not have sufficient funds, the transactions may be processed as a credit charge against an designated credit account. The demand deposit account may subsequently be swept at predetermined times in search of funds to defray the overdraft. If adequate funds are present, they will be withdrawn from the demand deposit account, and the credit account will be cleared. Otherwise, the instrument holder's daily purchasing abilities may be temporarily suspended until the credit account is settled. The processing of overdraft amounts may be on a FIFO, smallest-first or other basis.

1 - 23 . (canceled) 
     
     
         24 . A method for accessing funds in at least one cash account, the method comprising the steps of:
 a) interfacing to an authorization server to authorize individual transactions initiated through use of a linked account instrument against a predetermined cumulative limit on the at least one cash account; and   b) performing sweeps of said at least one cash account at predetermined times to determine whether charges incurred through use of the linked account card can be satisfied by funds in said at least one cash account, or charged against at least one designated backing credit account, wherein performing sweeps includes:
 implementing the authorization server to communicate through a first interface to determine whether the cash account has adequate funds for settling the transaction initiated through use of the linked account instrument; and 
 implementing the authorization server to communicate through a second interface to at least one credit account used to back said at least one cash account in the event of insufficient funds in said at least one cash account to cover the charges incurred through the user of the linked account instrument. 
   
     
     
         25 . The method of  claim 24 , wherein said at least one cash account comprises at least one demand deposit account. 
     
     
         26 . The method of  claim 25 , wherein said at least one demand deposit account comprises a plurality of demand deposit accounts. 
     
     
         27 . The method of  claim 24 ,
 further comprising holding said at least one cash account at any financial institution.   
     
     
         28 . The method of  claim 24 , wherein said at least one credit account comprises a plurality of credit accounts. 
     
     
         29 . The method of  claim 24 , further comprising
 holding said at least one credit account at any financial institution.   
     
     
         30 . The method of  claim 24 , further comprising
 providing an associated credit line for said at least one credit account that is at least equal to the predetermined cumulative limit.   
     
     
         31 . The method of  claim 24 , wherein the authorization server comprises at least one of an account information database, an account balance database, and a transaction history database. 
     
     
         32 . The method of  claim 24 , further comprising
 generating individual automated clearing house debits for each transaction initiated with the linked account instrument, and authorized by the authorization server.   
     
     
         33 . The method of  claim 32 , further comprising
 processing the automated clearing house debits against said at least one cash account via an automated clearing house.   
     
     
         34 . The method of  claim 33 , further comprising
 processing the automated clearing debits against said at least one cash account in the order in which they were generated.   
     
     
         35 . The method of  claim 33 , further comprising
 processing each automated clearing house debit against said at least one cash account based on the relative size of its amount.   
     
     
         36 . The method of  claim 35 , further comprising
 processing the smallest debit amounts against said at least one cash account first, leaving larger debits that cannot be satisfied by said at least one cash account to be processed against said at least one credit account.   
     
     
         37 . The method of  claim 35 , further comprising
 processing the largest debit amounts against said at least one cash account first, leaving smaller debits that cannot be satisfied by said at least one cash account to be processed against said at least one credit account.   
     
     
         38 . The method of  claim 33 , further comprising
 processing an entire debit amount against said at least one credit account in the event that there are funds in said at least one cash account that can only cover a percentage of the debit amount.   
     
     
         39 . The method of  claim 33 , further comprising
 processing a first percentage of the debit amount against said at least one cash account and a second percentage of the debit amount is processed against said at least one credit account in the event that there are funds in said at least one cash account that cannot satisfy the entire debit amount.   
     
     
         40 . The method of  claim 24 , wherein the predetermined cumulative limit is a daily limit. 
     
     
         41 . The method of  claim 40 , further comprising
 ceasing to authorize additional transactions attempted with the linked account instrument once the predetermined cumulative limit has been reached.   
     
     
         42 . The method of  claim 41 , further comprising
 ceasing to authorize transactions attempted with the linked account instrument if a first sweep of said at least one cash account finds insufficient funds to satisfy previous charges incurred through use of the linked account instrument.   
     
     
         43 . The method of  claim 42 , further comprising
 clearing said at least one credit account if a subsequent sweep of said at least one cash account finds adequate funds to satisfy those funds temporarily covered by said at least one credit account.   
     
     
         44 . The method of  claim 43 , further comprising
 refreshing the predetermined cumulative limit; and authorizing transactions after said at least one credit account has been cleared.   
     
     
         45 . The method of  claim 44 , further comprising
 charging a user of the linked account instrument a fee for use of said at least one credit account.   
     
     
         46 . The method of  claim 42 , further comprising
 continuing to cease authorization of transactions attempted with the linked account instrument if a predetermined number of subsequent sweeps of said at least one cash account fail to find sufficient funds to satisfy the charges incurred through use of the linked account instrument.   
     
     
         47 . The method of  claim 41 , further comprising
 continuing to authorize linked account instrument transactions up to the predetermined cumulative limit against available credit on said at least one credit account, even if a first sweep of said at least one cash account finds insufficient funds to satisfy previous charges.