System and method for converting a stored value card to a credit card

• US 20040050928A1
• Filed: 09/12/2002
• Published: 03/18/2004
• Est. Priority Date: 09/12/2002
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Bishop, Fred, Armes, David, Neemann, Trey
• Granted Patent: US 6,805,287 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/0833 Card having specific functional components

Abstract

A method and system for converting a first transaction account device to a second transaction account device wherein a card number associated with, or defined as, a first transaction account (e.g., stored value account) is re-associated with, or re-defined as, a second transaction account (e.g., credit card account).

Claims

1. A method for facilitating the transfer of the association of a card number from a first transaction account to a second transaction account, comprising the steps of:

establishing said second transaction account;

receiving said card number associated with said first transaction account; and

,

associating said card number to a second transaction account.

2. The method of claim 1, wherein said first transaction account is one of the following:

a stored value account, a charge card account, a debit account or a credit card account.

3. The method of claim 2, wherein said second transaction account is one of the following:

a stored value account, a charge card account, a debit account or a credit card account.

4. The method of claim 1, further comprising the steps of:

providing a customer interface configured to allow a customer to request an account conversion;

prompting said customer to input information, said input information including said card number;

receiving said input information;

recognizing said first transaction account as being associated with said card number; and

changing account profile information in an account database to associate said card number with said second transaction account.

5. The method of claim 1, wherein said card number corresponds to a proxy account number, wherein said proxy account number within a proxy system is configured to associate said proxy account number to one or more transaction accounts.

6. The method of claim 5, wherein said card number comprises unchangeable indicia permanently associating said card number with a proxy account.

7. The method of claim 6, wherein said indicia is a bank identification number (BIN).

8. The method of claim 7, further comprising the steps of:

facilitating, during a customer-merchant transaction, a merchant authorization process after said conversion, wherein said authorization process comprises the steps of;

providing an authorization system;

recognizing said BIN number of said card number as the BIN of a proxy account;

forwarding to a proxy account system;

identifying said second transaction account associated with said card number;

determining if said second transaction account is authorized for a transaction; and

returning authorization result to said merchant;

facilitating a merchant settlement process after said conversion, wherein said settlement process comprises the steps of;

receiving a settlement request from said merchant;

recognizing said BIN of said card number is the BIN of said proxy account;

forwarding to said proxy account system;

recognizing said proxy account as associated with said second transaction account;

charging amount of transaction against said second transaction account; and

adjusting said second transaction account balance by amount of said transaction.

9. The method of claim 8, wherein said second transaction account is a credit card account.

10. A method of converting an existing stored value account number to a new account number, comprising the steps of:

providing a conversion interface;

receiving a conversion request from said customer;

presenting to a customer an account application form, wherein said customer is prompted to provide said existing stored value account number;

communicating a completed account application to a new accounts system;

determining if said customer qualifies for a new account;

issuing a new account to said customer; and

associating said new account with said existing stored value account number.

11. The method of claim 10, further comprising the steps of closing said stored value account.

12. The method of claim 10, wherein said conversion interface facilitates online communication between said customer and said host.

13. The method of claim 12, said step for providing an online conversion interface further comprising the steps of:

providing a registration web page; and

prompting said customer to complete an online application form.

14. The method of claim 10, further comprising the steps of:

determining if said stored value account number has an outstanding value at the time of the conversion request;

removing, if said stored value account has an outstanding value, said value from said stored value account; and

crediting said value to said new account.

15. The method of claim 10, wherein said existing stored value account number is a proxy account number.

16. The method of claim 10, further comprising the step of updating authorization systems and accounts receivable systems to reflect said new account information.

17. The method of claim 16, further comprising the steps of:

instructing a proxy account system to associate said new account with said proxy number; and

associating said proxy number with said new account.

18. A system for converting a first transaction account device to a second transaction account device comprising:

a user interface system configured to communicate with said user to accept a request from said user to convert a card number associated with said first transaction account to a card number associated with a second transaction account;

a new accounts system configured to generate a second transaction account; and

a modifiable computer data structure configured to associate a card number with a plurality of transaction account types.

19. The system of claim 18, further comprising a proxy account system configured to facilitate the re-association of said card number from said first transaction account to said second transaction account.

20. The system of claim 19, wherein said first transaction account is a stored value account and said second transaction account is a credit card account.