This patent application is assigned to
The following quote was obtained by the news editors from the background information supplied by the inventors: "The current invention relates generally to apparatus, systems and methods for financing purchases. More particularly, the apparatus, systems and methods relate to financing a purchase and paying for the purchase periodically after the purchase. Specifically, the apparatus, systems and methods provide for financing a purchase and paying for the purchase with installments each time a financial transaction is initiated with the purchased item.
"Credit is used to finance a variety of purchases. However, creditors may often be hesitant to extend someone credit if they are not highly sure they will be repaid. Also, purchasing on credit requires that the person receiving the credit make periodic payments. This requires them to set up bookkeeping to ensure that they write a monthly check to repay their credit or set up some other accounting method of repaying their credit on a periodic basis. What is needed is a better way of paying off credit."
In addition to the background information obtained for this patent application, VerticalNews journalists also obtained the inventor's summary information for this patent application: "The preferred embodiment of the invention includes a system for payment of an item that was purchased using credit. A system includes financial transaction detection logic and payment logic. The financial transaction detection logic detects that a financial transaction is being initiated at the purchased item. For example, the logic can be implanted in a fare payment device in a bus that was purchased with credit. The transaction logic detects each time a fare is paid to ride the bus. The repayment logic then repays a portion of the credit used to purchase the purchased item (bus) when the financial transaction (fare payment) occurs. Alternatively, the financial transaction detection logic can be inside an electronic handheld device purchased on credit. The financial transaction detection logic detects when the device is used to make a purchase. Alternatively, it could detect each time the handheld device is connected to a network. Each of those times, the payment logic can calculate a repayment amount and to pay it at that time or to accumulate repayments for payment at a later time. A wide variety of purchased items can be repaid this way until they are fully paid off. When they are paid off, the automatic payments also end. This automated repayment of credit ensures creditors and lenders that they will periodically be repaid virtually automatically allowing them to more freely extend credit.
"Another configuration of the preferred embodiment is a method of financing a purchase of a purchased item and repaying the borrowed funds for the purchased item at a later time. The method begins by financing or purchasing a purchased item on credit. Next, a financial transaction that is being initiated at the purchased item is detected. As discussed in more detail below, the transaction may be a person paying a fare at bus that was purchased with credit or the transaction can be connecting to a network with a handheld device that was purchased with credit or the purchasing of something else using the handheld device. A portion of the purchased item to be repaid is calculated, upon the financial transaction detection logic detecting that a financial transaction is being conducted at the purchased item. A percentage of the financial transaction can be used to determine the partial repayment amount of the purchase item.
"The calculated repayment portion of the purchased item is then repaid to the entity that financed the purchase of the purchased item. The repaying can include the crediting a financial account with a payment and this can be done automatically over a network that can be at least partly a wireless network. The method can transmit a message indicating a portion of the purchased item has been repaid. The message can be transmitted to a creditor, financial institution or someone else interested in monitoring the continued payment of the purchased item. The method can also keep a running tabulation amount that is a total amount that has been repaid on the purchased item. When this tabulation amount is the same as the purchase credit or financing value used to purchase the purchased item it has been repaid. The method will then discontinue repaying a portion of the purchased item when the purchased item has been repaid.
"Other configurations of the method can make payments when credit is extended from two or more entities to purchase the purchased item. In these cases, the repaying a portion of the purchased item at the time of transaction at the purchased item can include repaying a portion of the purchased item to each of the financing entities. Alternatively, the method can alternate payments to one or more of the financing entities in a round-robin fashion after each financial transaction at the purchased item. The method can also generate a receipt that a payment has been made and or it can send a message to a display associated with individual(s) or entity(s) interested in monitoring the continued payment of the purchased item.
BRIEF DESCRIPTION OF SEVERAL VIEWS OF THE DRAWINGS
"One or more preferred embodiments that illustrate the best mode(s) are set forth in the drawings and in the following description. The appended claims particularly and distinctly point out and set forth the invention.
"The accompanying drawings, which are incorporated in and constitute a part of the specification, illustrate various example methods, and other example embodiments of various aspects of the invention. It will be appreciated that the illustrated element boundaries (e.g., boxes, groups of boxes, or other shapes) in the figures represent one example of the boundaries. One of ordinary skill in the art will appreciate that in some examples one element may be designed as multiple elements or that multiple elements may be designed as one element. In some examples, an element shown as an internal component of another element may be implemented as an external component and vice versa. Furthermore, elements may not be drawn to scale.
"FIG. 1 illustrates a preferred embodiment of system that pays off the credit of a purchased item.
"FIG. 2 illustrates an embodiment of a method for financing and paying for an item later.
"Similar numbers refer to similar parts throughout the drawings."
URL and more information on this patent application, see: Chandaria, Kapoor. Apparatus for Financing Mobile Equipment. Filed
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