Sponsor funded stored value card

• US 20030055782A1
• Filed: 10/31/2002
• Published: 03/20/2003
• Est. Priority Date: 02/09/2000
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: Bank One Corporation (JP Morgan Chase & Co)
• Inventors: Slater, Kim Michele
• Granted Patent: US 7,165,049 B2
• 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 sponsor, and an issuer network, wherein the credit network, the issuer, and the sponsor each have separate identification indicia, the method comprising:

creating an independent account associated with the stored value card, wherein the sponsor funds the account; and

issuing the stored value card to the cardholder, wherein;

a) the cardholder is unable to fund the account;

b) the 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 sponsor identification indicia; and

c) the stored value card is accepted wherever the predetermined credit network is accepted.

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

3. The method according to claim 1, wherein the sponsor funds the account period basis.

4. The method according to claim 1, wherein the sponsor funds the card more than once.

5. The method according to claim 1, wherein the sponsor receives records regarding account transactions.

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

7. The method according to claim 6, further comprising the step of the issuer notifying the sponsor that the stored value card has been received by the cardholder.

8. The method according to claim 1, wherein the issuer and the sponsor are the same entity.

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

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

a) the designated merchants are related to the business of the sponsor; and

b) the designated merchants accept cards associated with the credit network.

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

means for creating an independent account associated with the stored value card, wherein the sponsor funds the account; and

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

a) the cardholder is unable to fund the account;

b) the 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 sponsor identification indicia; and

c) the stored value card is accepted wherever the credit network is accepted.

12. The system according to claim 11, wherein the cardholder activates the stored value card.

13. The system according to claim 11, wherein the sponsor funds the account on a regular period basis.

14. The system according to claim 11, wherein the sponsor funds the card more than once.

15. The system according to claim 11, further comprising means for recording account activity.

16. The system according to claim 11, 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 sponsor that the stored value card has been received by the cardholder.

18. The system according to claim 11, wherein the issuer and the sponsor are the same entity.

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

20. The system according to claim 11, further comprising means for designating merchants where the stored value card may be used, wherein:

a) the designated merchants are related to the business of the sponsor; and

b) the designated merchants accept cards associated with the credit network.