Importance

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Abstract

An automated system and method which monitors the cash flow of the merchant account and maintains a minimum balance for each merchant account based upon allowable delays. The automated system/method includes a point of sale device and data files for transactional activity. The point of sale device resides at the merchant's premises and is used for commercial transactions between a credit card holder and a merchant. The data files are comprised of the net transactional activity between the credit card holder and the merchant. The system further includes a merchant credit card transaction processor for processing data files at the merchant premises and a merchant database. The system further includes a transaction processor in communication with the merchant credit card transaction processor, the merchant database and a plurality of card issuers. The transaction processor facilitates the flow of credit card transaction data by withholding a fraction of the net transactional amount based upon the transactional parameters to maintain a minimum merchant account balance. Also provided is a method for monitoring the cash flow of a merchant account and for maintaining a minimum balance for each merchant account. The method includes gathering at least one transaction performed by a merchant; adding up the amounts of the at least one transaction to determine a net amount for daily merchant account activity; allocating a fraction of the net amount to a merchant reserve account for future funding; and disbursing the net amount minus the fraction allocated to the reserve account to the merchant.

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First Claim