Debit purchasing of stored value card for use by and/or delivery to others

• US 20050092828A1
• Filed: 11/15/2004
• Published: 05/05/2005
• Est. Priority Date: 06/22/1998
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: Bank One Delaware National Association (JP Morgan Chase & Co)
• Inventors: Norwine, Jeffery A., Deporte, Rebecca, Phillips, Gregory Joseph, Joines, Penny B.
• Granted Patent: US 7,174,314 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/355 Personalisation of cards for use
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07G 1/0036 Checkout procedures

Abstract

A method of issuing a purchase card is provided. The method includes the steps of presenting a purchaser with the opportunity to buy the purchase card, determining whether the purchaser has sufficient funds to pay for the purchase card, creating a purchase card account for a recipient designated by the purchaser, and issuing the purchase card. The purchase card may also be issued in connection with another credit card, for example as a rebate for purchases on the credit card. The purchase card may also be converted to a credit card.

Claims

1. A method for conducting a transaction using a stored value card comprising:

creating a transaction request comprising a transaction amount and an identifier associated with a stored value card purchased by a purchaser for a recipient, wherein the transaction request is a request for a transaction with a merchant;

transmitting the transaction request from the merchant to a central processor coupled to a database that stores a balance of the stored value card;

determining whether to approve the transaction based on whether the transaction amount exceeds the balance;

transmitting a transaction response to the merchant, wherein the transaction response approves or disapproves the transaction; and

whenever the transaction is approved, reducing the balance stored in the database by the transaction amount.

2. The method of claim 1, further comprising:

obtaining stored value card account information and stored value card authentication information from at least one of the purchaser and the recipient.

3. The method of claim 1, wherein the transaction request and the transaction response are transmitted via the Internet.

4. The method of claim 1, wherein the balance is stored in a stored value card account, and wherein the stored value card account further stores a stored value card number.

5. The method of claim 1, wherein the stored value card authentication information comprises at least one selected from the group consisting of a recipient name, recipient address, and recipient communication identifier.

6. A method for distributing a stored value card comprising:

receiving a payment of funds from a customer, wherein the payment is for the purchase of a stored value card by the customer;

receiving authentication information associated with the stored value card;

creating a stored value card account comprising;

a) a balance based on a payment of funds;

b) the stored value card authentication information; and

c) stored value card account information;

passing stored value card account creation information from a stored value card account vending entity to a central processor;

storing the balance, the stored value card authentication information and the stored value card account information in a database;

providing the stored value card to the customer; and

activating the stored value card.

7. The method of claim 6, wherein the customer purchases and uses the card.

8. The method of claim 6, wherein the customer purchases the card and designates a recipient to use the card, wherein the recipient is different from the customer.

9. A system for conducting a transaction using a stored value card comprising:

a merchant unit configured to create and transmit a transaction request comprising a transaction amount and an identifier associated with a stored value card purchased by a purchaser for a recipient;

a central processor configured to perform the following functions;

determine whether to approve the transaction;

determine whether the transaction amount exceeds a balance for the stored value card stored in the database;

create and transmit a transaction response; and

whenever the transaction is approved, reduce the balance in the database by the transaction amount and pass transaction confirmation information to the merchant; and

a communication link between the merchant unit and the central processor for transmitting the transaction request and the transaction response.

10. A system for distributing a stored value card comprising:

an input device configured to receive a request to create a stored value card account associated with a stored value card, wherein the request is associated with a request to purchase a stored value card by a purchaser for a recipient, wherein the stored value card account comprises;

a) a balance based on a payment of funds,

b) stored value card authentication information, and

c) stored value card account information;

a central processor configured to create an account for the stored value card and store the balance, the stored value card authentication information, and the stored value card account information in a database, wherein the central processor is further configured to create and transmit an activation response; and

a communication link between the input device and the central processor configured to pass the request.

11. A system for conducting a transaction using a stored value card comprising:

means for creating a transaction request comprising a transaction amount and an identifier associated with a stored value card purchased by a purchaser for a recipient, wherein the transaction request is a request for a transaction with a merchant;

means for transmitting the transaction request from the merchant to a central processor coupled to a database that stores a balance of the stored value card;

means for determining whether to approve the transaction based on whether the transaction amount exceeds the balance;

means for transmitting a transaction response to the merchant, wherein the transaction response approves or disapproves the transaction; and

means for reducing the balance stored in the database by the transaction amount whenever the transaction is approved.

12. The system of claim 11, further comprising:

obtaining stored value card account information and stored value card authentication information from at least one of the purchaser and the recipient.

13. The system of claim 11, wherein the transaction request and the transaction response are transmitted via the Internet.

14. The system of claim 11, wherein the balance is stored in a stored value card account, and wherein the stored value card account further stores a stored value card number.

15. The system of claim 11, wherein the stored value card authentication information comprises at least one selected from the group consisting of a recipient name, recipient address, and recipient communication identifier.

16. A system for distributing a stored value card comprising:

receiving a payment of funds from a customer, wherein the payment is for the purchase of a stored value card by the customer;

receiving authentication information associated with the stored value card;

creating a stored value card account comprising;

a) a balance based on a payment of funds;

b) the stored value card authentication information; and

c) stored value card account information;

passing stored value card account creation information from a stored value card account vending entity to a central processor;

storing the balance, the stored value card authentication information and the stored value card account information in a database;

providing the stored value card to the customer; and

activating the stored value card.

17. The system of claim 16, wherein the customer purchases and uses the card.

18. The system of claim 16, wherein the customer purchases the card and designates a recipient to use the card, wherein the recipient is different from the customer.

19. A method for conducting a transaction using a stored value card comprising:

receiving from a merchant terminal a transaction request comprising a transaction amount and an identifier associated with a stored value card purchased by a purchaser for a recipient;

determining whether to approve the transaction;

determining whether the transaction amount exceeds a balance for the stored value card stored in the database;

transmitting a transaction response via a communication link between the merchant unit and the central processor; and

whenever the transaction is approved, reducing the balance in the database by the transaction amount; and

passing transaction confirmation information to the merchant.

20. A method for distributing a stored value card comprising:

receiving a request to create a stored value card account associated with a stored value card, wherein the request is associated with a request to purchase a stored value card by a purchaser for a recipient, wherein the stored value card account comprises;

a) a balance based on a payment of funds,

b) stored value card authentication information, and

c) stored value card account information;

creating an account for the stored value card and store the balance, the stored value card authentication information, and the stored value card account information in a database, wherein the central processor is further configured to create and transmit an activation response; and

receiving the request at the central processor via a communication link between the input device and the central processor.

21. A method for conducting a transaction using a stored value card comprising:

creating a transaction request comprising a transaction amount and an identifier associated with a stored value card purchased by a purchaser for a recipient, wherein the transaction request is a request for a transaction with a merchant;

transmitting the transaction request from the merchant to a central processor coupled to a database that stores a balance of the stored value card, wherein the balance is stored in a stored value card account, and wherein the stored value card account further stores a stored value card number;

determining whether to approve the transaction based on whether the transaction amount exceeds the balance;

transmitting a transaction response to the merchant, wherein the transaction response approves or disapproves the transaction; and

whenever the transaction is approved, reducing the balance stored in the database by the transaction amount; and

obtaining stored value card account information and stored value card authentication information from at least one of the purchaser and the recipient.

22. (canceled)

23. (canceled)

24. (canceled)

25. (canceled)

26. (canceled)

27. (canceled)

28. (canceled)

29. (canceled)

30. (canceled)

31. (canceled)

32. (canceled)

33. (canceled)

34. (canceled)

35. (canceled)

36. (canceled)

37. (canceled)

38. (canceled)

39. (canceled)

40. (canceled)