PRE-PAID CARD SYSTEM FOR PURCHASING PRODUCTS OR SERVICES

• US 20010042784A1
• Filed: 03/02/1999
• Published: 11/22/2001
• Est. Priority Date: 03/02/1999
• Status: Active Grant

• Current Assignee: Netvisions Incorporated
• Original Assignee: Netvisions Incorporated
• Inventors: DOOMERNIK, JOHN PETER, FITE, DEBRA LYNN
• Granted Patent: US 6,467,684 B2
• Time in Patent Office: Days
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered

Abstract

A pre-paid card system is provided for paying for purchases over an electronic or computer network, such as the Internet. The system includes a plurality of cards each having a unique identity number associated therewith. The cards have different purchasing values. The cards are for one-time use only with no declining balance. A purchase is made by providing the card identification number to a merchant who is registered with the system, whereupon the validity of the card is verified by a host database before the purchase is completed.

Claims

1. A pre-paid card system for purchasing products or services, comprising:

a plurality of cards, each card having a unique identity number associated therewith and a readable memory on the card containing the identity number, the cards further having different purchasing values, for one-time use only;

a host computer provided with a database for storing the identity numbers of the cards and their associated one-time purchasing values and including an indicator corresponding with each identity number which can be switched from an inactive state, in which its associated card is not available for use in payment for goods or services, to an activated state in which its associated card is available for use in the payment of goods or services;

at least one activation terminal provided with a means for reading the identity number of a card from the memory on the card;

means for connecting the terminal to the host computer to transfer the identity number which has been read from the card to the host computer;

means for comparing the identity number transferred from the activation terminal with the identity numbers in the database of the host computer for matching the transferred identity number with an identity number in the database and switching the corresponding record from said inactive to said activated state if a matching identity number with a corresponding indicator in the inactive state is found;

at least one merchant computer associated with a merchant offering a product or service for sale, said merchant computer being provided with a database containing details of said product or service for sale, including the price of the product or service;

means for receiving input from a purchaser identifying the product or service or said merchant being purchased and identifying the identity number of a card for use in payment of the purchase;

means for transferring the identity number identified by said purchaser to the host computer;

and

means for comparing the identity number identified by the purchaser with the identity numbers in the database of the host computer for matching the identity number identified by the purchaser with an identity number in the database to validate the purchase if a matching identity number with a corresponding indicator in the activated state is found which is associated with a card having a purchasing value which is at least equal to the price of the product or service being purchased and disqualifying the associated card for payment of a further purchase, irrespective of whether the purchasing value of the card is equal to or larger than the purchase price.

2. The system according to

claim 1

, wherein the readable memory on the card comprises a magnetic strip and said means for reading the identity number of a card comprises a card reader.

3. The system according to

claim 1

, wherein the host computer, said at least one terminal and said at least one merchant computer are connected together in a network.

4. The system according to

claim 3

, wherein the network comprises the Internet.

5. The system according to

claim 1

, wherein each card is further provided with its associated identity number in a visually recognizable form thereon, concealed by a user removable strip.

6. The system according to

claim 1

, further comprising means for modifying the identity number of a card by the addition of a user-specified security number thereto.

7. The system according to

claim 1

, wherein each card has its one-time purchasing value displayed thereon.

8. A card for use in the system according to

claim 1

.

9. A system for purchasing products or services, comprising:

a host computer having means for generating a plurality of unique identity numbers associated with different purchasing values, for one-time use only, the host computer further being provided with a database for storing the computer generated identity numbers and their associated one-time purchasing values;

at least one merchant computer associated with a merchant offering a product or service for sale, said merchant computer being provided with a database containing details of said product or service for sale, including the price of the product or service;

means for receiving input from a purchaser identifying the product or service of said merchant being purchased and identifying one of said computer generated identity numbers for use in payment of the purchase;

means for transferring the identity number identified by said purchaser to the host computer;

and

means for comparing the identity number identified by the purchaser with the identity numbers in the database of the host computer for matching the identity number identified by the purchaser with an identity number in the database to validate the purchase if a matching identity number is found which is associated with a purchasing value which is at least equal to the price of the product or service being purchased and disqualifying the identity number for payment of a further purchase, irrespective of whether the purchasing value of the identity number is equal to or larger than the purchase price.

10. The system according to

claim 9

, wherein the host computer and said at least one merchant computer are connected together in a network.