Sponsor funded stored value card

• US 20030033246A1
• Filed: 10/11/2002
• Published: 02/13/2003
• Est. Priority Date: 02/09/2000
• Status: Abandoned Application

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Slater, Kim Michele
• Application Number:
  US10/268,763
• Publication Number:
  US 20030033246A1
• Time in Patent Office: Days
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• 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 method and system for issuing a sponsor funded stored value card. A sponsor company funds an account associated with the stored value card. The stored value card is issued to a cardholder, who can withdraw funds from the account, but cannot deposit additional funds in the account. A sponsor funded stored value card may reduce expenses and difficulties associated with written checks.

Claims

1. A method for issuing a stored value card affiliated with a predetermined credit network, a governmental sponsor, and an issuer, wherein the credit network, the issuer, and the governmental sponsor each have separate identification indicia, the method comprising:

creating one account associated with the stored value card, wherein the governmental sponsor funds the account and the account is independent and unassociated with any other account; and

issuing the stored value card to a cardholder, wherein;

a) the issued stored value card is marked with the cardholder'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia, and the governmental sponsor identification indicia; and

b) the issued stored value card is accepted wherever cards associated with the predetermined credit network are accepted.

2. The method according to claim 1, wherein the issued stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

3. The method according to claim 1, wherein the cardholder activates the stored value card.

4. The method according to claim 2, wherein the stored value card is active for a predetermined period of time.

5. The method according to claim 1, wherein the governmental sponsor funds the account on a periodic basis.

6. The method according to claim 1, further comprising the steps of:

recording transactions associated with the stored value card; and

providing access to the recorded transactions to at least one of the cardholder and the governmental sponsor.

7. The method according to claim 1, further comprising the step of notifying the issuer that the cardholder has received the stored value card.

8. The method according to claim 7, further comprising the step of the issuer notifying the governmental sponsor that the stored value card has been received by the cardholder.

9. The method according to claim 1, further comprising the step of designating merchants where the stored value card may be used.

10. A system for issuing a stored value card affiliated with a predetermined credit network, an educational institution and an issuer, wherein the credit network, and the issuer, and the governmental sponsor each have separate identification indicia, the system comprising:

means for creating one account associated with the stored value card, wherein the governmental sponsor funds the account and the account is independent and unassociated with any other account; and

means for issuing the stored value card to a cardholder, wherein;

a) the cardholder is unable to fund the account;

b) the issued stored value card is marked with the cardholder'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia and the organization sponsor identification indicia; and

c) the issued stored value card is accepted wherever cards associated with the predetermined credit network are accepted.

11. The system according to claim 10, wherein the issued stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

12. The system according to claim 10, wherein the cardholder activates the stored value card.

13. The system according to claim 12, wherein the stored value card is active for a predetermined period of time.

14. The system according to claim 10, wherein the governmental sponsor funds the account on a periodic basis.

15. The system according to claim 10, further comprising:

means for recording account activity. and

means for providing access to the account records to at least one of the cardholder and the governmental sponsor.

16. The system according to claim 10, further comprising means for notifying the issuer that the cardholder has received the stored value card.

17. The system according to claim 16, further comprising means for the issuer to notify the governmental sponsor that the stored value card has been received by the cardholder.

18. The system according to claim 10, further comprising means for designating merchants where the stored value card may be used.

19. A method for issuing a stored value card affiliated with a predetermined credit network, an educational institution sponsor, and an issuer network, wherein the credit network, the issuer, and the educational institution sponsor each have separate identification indicia, the method comprising:

creating one account associated with the stored value card, wherein the educational institution sponsor funds the account, and the account is independent and unassociated with any other account; and

issuing the stored value card to students of the educational institution sponsor, wherein;

a) the issued stored value card is marked with the student'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia, and the educational institution sponsor identification indicia; and

b) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted.

20. The method according to claim 19, wherein the issued stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

21. The method according to claim 19, further comprising the step of receiving a designation of merchants where the stored value card may be used to make purchases.

22. The method according to claim 21, wherein the designated merchant provides one of educational goods and educational services.

23. The method according to claim 19, wherein the student activates the stored value card.

24. The method according to claim 19, wherein the educational institution sponsor funds the stored value card at least once a semester.

25. The method according to claim 19, further comprising the step of notifying the issuer that the student has received the stored value card.

26. A system for issuing a stored value card affiliated with a predetermined credit network, an educational institution sponsor, and an issuer network, wherein the credit network, the issuer, and the educational institution sponsor each have separate identification indicia, the method comprising:

means for creating one account associated with the stored value card, wherein the educational institution sponsor funds the account, and the account is independent and unassociated with any other account; and

means for issuing the stored value card to students of the educational institution sponsor, wherein;

a) the issued stored value card is marked with the student'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia, and the educational institution sponsor identification indicia; and

b) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted.

27. The system according to claim 26, wherein the issued stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

28. The system according to claim 26, further comprising means for receiving a designation of merchants where the stored value card may be used to make purchases.

29. The system according to claim 28, wherein the designated merchant provides one of educational goods and educational services.

30. The system according to claim 26, wherein the student activates the stored value card.

31. The system according to claim 26, wherein the educational institution sponsor funds the stored value card at least once a semester.

32. The system according to claim 26, further comprising means for notifying the issuer that the student has received the stored value card.

33. A method for issuing a stored value card affiliated with a predetermined credit network, an educational institution, and an issuer, the method comprising:

creating one account associated with the stored value card, wherein the educational institution funds the account with tuition reimbursement funds, and the account is independent and unassociated with any other account; and

issuing the stored value card to a student, wherein;

a) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

d) the student activates the stored value card.

34. The method according to claim 33, further comprising the step of receiving notification that the sponsor has received the stored value card.

35. The method according to claim 33, further comprising the step of receiving a designation of merchants where the stored value card may be used to make purchases.

36. The method according to claim 35, wherein the designated merchant provides one of educational goods and educational services.

37. The method according to claim 33, wherein the educational institution funds the stored value card at least once a semester.

38. The method according to claim 33, further comprising the steps of:

receiving a request from the student to convert the stored value card into a credit card;

determining whether the student meets predetermined credit criteria to convert the stored value card into a credit card;

converting the stored value account into a credit card account; and

converting the stored value card into a credit card.

39. The method according to claim 38, where the balance of the stored value card account is transferred to the credit card account.

40. A system for issuing a stored value card affiliated with a predetermined credit network, an educational institution and an issuer, the system comprising:

means for creating one account associated with the stored value card, wherein the educational institution funds the account with tuition reimbursement funds, and the account is independent and unassociated with any other account; and

means for issuing the stored value card to a student, wherein;

a) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

b) the employee activates the stored value card;

41. The system according to claim 40, further comprising means for receiving notification that the student has received the stored value card.

42. The system according to claim 40, further comprising means for receiving a designation of merchants where the stored value card may be used to make purchases.

43. The system according to claim 42, wherein the designated merchant provides one of educational goods and educational services.

44. The system according to claim 40, wherein the educational institution funds the stored value card at least once a semester.

45. The system according to claim 40, further comprising:

means for receiving a request from the student to convert the stored value card into a credit card;

means for determining whether the student meets predetermined credit criteria to convert the stored value card into a credit card;

means for converting the stored value account into a credit card account; and

means for converting the stored value card into a credit card.

46. The system according to claim 45, where the balance of the stored value card account is transferred to the credit card account.