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

• US 20050097044A1
• 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 7,171,388 B2
• Time in Patent Office: Days
• US Class Current: 705/41
• 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 computer-implemented method for an issuer to issue a credit card, comprising:

creating in a database a stored value card account, wherein the stored value card account comprises information of;

a) an account number of a stored value card; and

b) a purchase value of the stored value card;

issuing the stored value card to a cardholder, wherein the stored value card is marked with at least one of an indicia of a predetermined transaction network affiliated with the stored value card and an indicia of an issuer; and

converting the stored value card into a credit card.

2. The method of claim 1, wherein the stored value card is accepted for purchases anywhere the predetermined transaction network is accepted for purchases.

3. The method of claim 1, wherein the credit card is accepted for purchases anywhere the predetermined transaction network is accepted for purchases

4. The method of claim 1, wherein the credit card is usable on a predetermined credit network which is not the same as the predetermined transaction network of the stored value card.

5. The method of claim 1, further comprising receiving a request to convert the stored value card into a credit card, wherein the act of converting the stored value card into a credit card comprises:

creating on a computer database a credit card account; and

determining with a computer processor whether the cardholder meets predetermined credit criteria required for converting the stored value card into a credit card.

6. The method of claim 1, further comprising:

transferring a remaining balance of the stored value card account to a credit card account associated with the credit card.

7. The method of claim 1, further comprising:

generating periodic account activity statements associated with the credit card account.

8. The method of claim 1, further comprising:

purchasing the stored value card by a purchaser for the cardholder, wherein the cardholder is designated by the purchaser.

9. The method of claim 8, wherein the purchaser and the cardholder are different entities.

10. The method of claim 8, wherein the purchaser and the cardholder are the same entity.

11. The method of claim 8, wherein the purchaser may provide information that controls where the card may and may not be used.

12. The method of claim 8, wherein funds may be added to the stored value card account by at least one of the purchaser and the cardholder.

13. The method of claim 1, further comprising:

requesting personal information from the cardholder, wherein the personal information comprises at least one selected from the list comprising a name, an address, a credit card number, and cardholder age information.

14. The method of claim 13, further comprising:

receiving at least a portion of the personal information of the cardholder based on the act of requesting; and

activating at least one of the stored value card account and the credit card account based on the received personal information.

15. The method of claim 1, wherein the stored value card is funded by a rebate from another card payment instrument.

16. The method of claim 1, wherein the stored value account may be accessed to monitor activity of the stored value card account.

17. The method of claim 1, wherein the stored value card account is not tied to another account.

18. The method of claim 1, wherein the transaction network and the issuer each have separate identification indicia.

19. The method of claim 1, wherein the stored value card is active for a predetermined period of time.

20. The method of claim 1, further comprising:

receiving notification from the cardholder that the stored value card has been received, wherein said notification occurs separate from the cardholder'"'"'s use of the card to execute a stored value card transaction;

verifying the identity of the cardholder; and

activating the stored value card based on the verification.

21. The method of claim 1, wherein the stored value card account further comprises information of:

the cardholder'"'"'s name.

22. The method of claim 1, wherein the stored value card is further marked with the cardholder'"'"'s name at the time of issuance.

23. The method of claim 1, further comprising:

assigning a credit limit to the credit card account.

24. A computer-implemented system for an issuer to issue a credit card, comprising:

means for creating in a database a stored value card account, wherein the stored value card account comprises information of;

a) an account number of a stored value card; and

b) a purchase value of the stored value card;

means for issuing the stored value card to a cardholder, wherein the stored value card is marked with at least one of an indicia of a predetermined transaction network affiliated with the stored value card and an indicia of an issuer; and

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

25. The system of claim 24, wherein the stored value card is accepted for purchases anywhere the predetermined transaction network is accepted for purchases.

26. The system of claim 24, wherein the credit card is accepted for purchases anywhere the predetermined transaction network is accepted for purchases

27. The system of claim 24, wherein the credit card is usable on a predetermined credit network which is not the same as the predetermined transaction network of the stored value card.

28. The system of claim 24, further comprising receiving a request to convert the stored value card into a credit card, wherein the act of converting the stored value card into a credit card comprises:

means for creating on a computer database a credit card account; and

means for determining with a computer processor whether the cardholder meets predetermined credit criteria required for converting the stored value card into a credit card.

29. The system of claim 24, further comprising:

means for transferring a remaining balance of the stored value card account to a credit card account associated with the credit card.

30. The system of claim 24, further comprising:

means for generating periodic account activity statements associated with the credit card account.

31. The system of claim 24, further comprising:

means for purchasing the stored value card by a purchaser for the cardholder, wherein the cardholder is designated by the purchaser.

32. The system of claim 31, wherein the purchaser and the cardholder are different entities.

33. The system of claim 31, wherein the purchaser and the cardholder are the same entity.

34. The system of claim 31, wherein the purchaser may provide information that controls where the card may and may not be used.

35. The system of claim 31, wherein funds may be added to the stored value card account by at least one of the purchaser and the cardholder.

36. The system of claim 24, further comprising:

means for requesting personal information from the cardholder, wherein the personal information comprises at least one selected from the list comprising a name, an address, a credit card number, and cardholder age information.

37. The system of claim 36, further comprising:

means for receiving at least a portion of the personal information of the cardholder based on the act of requesting; and

means for activating at least one of the stored value card account and the credit card account based on the received personal information.

38. The system of claim 24, wherein the stored value card is funded by a rebate from another card payment instrument.

39. The system of claim 24, wherein the stored value account may be accessed to monitor activity of the stored value card account.

40. The system of claim 24, wherein the stored value card account is not tied to another account.

41. The system of claim 24, wherein the transaction network and the issuer each have separate identification indicia.

42. The system of claim 24, wherein the stored value card is active for a predetermined period of time.

43. The system of claim 24, further comprising:

means for receiving notification from the cardholder that the stored value card has been received, wherein said notification occurs separate from the cardholder'"'"'s use of the card to execute a stored value card transaction;

means for verifying the identity of the cardholder; and

means for activating the stored value card based on the verification.

44. The system of claim 24, wherein the stored value card account further comprises information of:

the cardholder'"'"'s name.

45. The system of claim 24, wherein the stored value card is further marked with the cardholder'"'"'s name at the time of issuance.

46. The system of claim 24, further comprising:

means for assigning a credit limit to the credit card account.

47. A computer-implemented system for an issuer to distribute a credit card, comprising:

a processor configured to establish and manage an independent stored value card account associated with a stored value card, wherein the stored value card may be converted to a credit card based on a request of the cardholder if the cardholder meets predetermined credit criteria, and wherein the stored value card account comprises information of;

a) the recipient'"'"'s name;

b) a stored value card account number; and

c) a stored value card value;

a device configured to mark the stored value card with the cardholder'"'"'s name and the account number, wherein the stored value card is usable for purchases at merchants affiliated with the transaction network; and

a data storage system for receiving a determination of whether the cardholder meets predetermined credit criteria so that the stored value card may be converted into a credit card.

48. A computer-implemented method for an issuer to issue a credit card, comprising:

creating in a database a stored value card account, wherein the stored value card account comprises information of;

a) an account number of a stored value card; and

b) a purchase value of the stored value card;

issuing the stored value card to a cardholder, wherein the stored value card is marked with at least one of an indicia of a predetermined transaction network affiliated with the stored value card and an indicia of an issuer;

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

converting the stored value card into a credit card, wherein the stored value card is accepted for purchases anywhere the predetermined transaction network is accepted for purchases, wherein the act of converting the stored value card into a credit card comprises;

creating on a computer database a credit card account; and

determining with a computer processor whether the cardholder meets predetermined credit criteria required for converting the stored value card into a credit card;

transferring a remaining balance of the stored value card account to a credit card account associated with the credit card;

assigning a credit limit to the credit card account; and

generating periodic account activity statements associated with the credit card account.

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