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NextCard Awarded Patent Covering Multiple On-Line Offers of Credit and
Real-Time Balance Transfers
SAN FRANCISCO, Dec 13, 2001 (BUSINESS WIRE) -- NextCard, Inc. (Nasdaq:NXCD)
today announced that, on November 27, 2001, the U.S. Patent and Trademark Office
(PTO) issued NextCard's first U.S. patent, No. 6,324,524. The patent, entitled
"Method and Apparatus For An Account Level Offer of Credit and Real Time Balance
Transfer," relates to the core functionality of NextCard's proprietary online
credit underwriting and approval system.
NextCard's technology enables it to offer consumers several credit card pricing
options when they apply online. The most attractive pricing option involves a
balance transfer from the consumer's other credit cards. The ability to attract
balances at the time of application is a core competitive feature of the
NextCard system. Credit card balances are a key driver of portfolio revenue.
The patent includes 12 claims, each of which relate to NextCard's "method and
apparatus for customizing multiple offers of credit based on applicant data."
The applicant data may be obtained from credit bureau reports and may include
balances held in other credit accounts possessed by the applicant. NextCard's
now-patented system allows a credit card issuer to use credit bureau data, in
real time, for the purpose of presenting offers based on balance transfers from
the applicant. The system includes a procedure for generating multiple offers to
an applicant based on credit bureau data, including FICO(R) score, applicant
income and existing balances held in other credit accounts. The system permits
multiple offers based on credit report data, each of which contains variants of
such terms as interest rate, annual fee, credit limit and balance transfer
amount, and includes a procedure for allowing the applicant (once an offer is
accepted) to select the account(s) and balance amounts the applicant would like
transferred, and confirming that the balance transfer(s) have been performed.
To retrieve the patent online, go to patft.uspto.gov
and enter the number, "6,324,524" in the query box.
Additionally, NextCard calls investors' attention to the following information
about the timing of NextCard's Capital Restoration Plan initially mentioned in
its October 31, 2001 press release. As indicated in the Company's Form 8-K,
filed on November 27, 2001, the Office of the Comptroller of the Currency (OCC)
delivered to NextCard a Prompt Corrective Action (PCA) directive. The PCA
requires NextBank to provide to the OCC an acceptable Capital Restoration Plan
within 45 days of November 15, 2001. The Form 8-K is available at
www.nextcard.com in the "Investor Relations" section.
About NextCard
NextCard, Inc. (www.nextcard.com) is a leading issuer of credit cards on the
Internet. Launched in 1997, the Company was the first to offer instant online
credit card approval, a choice of customized credit card offers, and exceptional
online customer service. NextCard is a direct marketing expert on the Internet,
operates a network of more than 90,000 online affiliates, and has exclusive card
relationships with leading online brands, including Amazon.com and MyPoints.com.
NextCard was named the No. 1 Internet credit card by Gomez. According to the
2001 Brittain Associates "Credit Cards on the Net" study, NextCard leads the
online credit card market with a 26 percent share. NextCard, Inc. issues credit
cards through NextBank N.A., a wholly owned subsidiary. |
