System and method for accounting for activation of stored value cards

• US 20060249570A1
• Filed: 05/04/2005
• Published: 11/09/2006
• Est. Priority Date: 05/04/2005
• Status: Active Grant

• Current Assignee: Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Seifert, Dean A., Sayor, Thomas, Baumgart, Mark
• Granted Patent: US 8,083,133 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 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence

Abstract

Stored value cards, such as gift cards, from different card issuers are displayed for sale and activation at retail locations. A distribution database system maintains records of cards sold at the retail locations. The system accounts to each retailer for commissions owed for cards sold by that retailer, and accounts to each card issuer for its cards that are sold at each retail location.

Claims

1. A system for activating stored value cards from a plurality of card issuers, the system comprising:

a POS device at retailer locations where at each location the stored value cards from a plurality of different card issuers may be activated, the POS device for receiving identifying data from each stored value card to be activated by the retailer;

a database for receiving the identifying data and creating an activation record for each activated card, wherein the identifying data includes a product code, and wherein each product code is associated with a card type ID stored in the database, and wherein for each card type ID there is both associated distributor fee data and associated retailer commission data; and

a processing system associated with the database and using the activation record to calculate any amounts owed to at least one of the retailer, distributor and card issuer for cards activated at the retailer locations.

4. The system of claim 1, wherein the activation record is incremented for each activated card according to card type, in order to reflect the number of cards activated corresponding to each card type.

5. The system of claim 1, wherein the processing system calculates amounts owned to both the retailer and to the card issuer.

6. The system of claim 1, wherein the activation of cards comprises one of:

purchasing a card with an initial, predetermined value;

purchasing a card and initially loading a value on the card that is selected by a customer at the retailer location; and

loading additional value on the card that has been previously purchased.

7. The system of claim 1, wherein the stored value card is selected from a group consisting of a gift card, a debit card, a prepaid credit card and a prepaid telephone card.

8. The system of claim 1, wherein the stored value card is a gift card, and wherein the product code is associated with data in the database that identifies an issuing gift card merchant, a commission rate used for paying retailers, a distribution fee paid to a distributor that distributes the gift card to the retailer locations, and a value associated with the gift card.

9. The system of claim 8, wherein the database stores the commission rate, the distribution fee, and the face value of the gift card, and wherein the processing system uses the stored commission rate, distribution fee and the stored face value in order to aggregate and make periodic payments to issuing gift card merchant and to retailers.

10. The system of claim 8, wherein the product code is a UPC code appearing on a card carrier, and wherein the database includes a table relating the UPC code on the card carrier to a card type ID.

11. The system of claim 10, wherein the database includes a table relating the card type ID to the issuing gift card merchant, the commission rate used for paying retailers, the distribution fee paid to the distributor that distributes the gift card to the retailer locations, and the face value of the gift card.

12. The system of claim 11, further comprising a second database for maintaining an account associated with each activated stored value card, wherein transactions conducted with each card are posted to the associated account, wherein the identifying data read from each card further includes an account ID identifying the associated account in the second database, with the account ID received at the first database as part of the identifying data and provided to the second database in order to activate the associated account.

2-3. -3. (canceled)

13. A method for activating stored value cards from a plurality of different card issuers that are displayed at a single retailer location, the system comprising:

providing a POS device at the retailer location, the POS terminal for receiving identifying data from each stored value card when activated by the retailer;

providing the identifying data to a database in order to create an activation record in the database for activated cards;

wherein an account is associated with each activated stored value card;

wherein the identifying data includes both an account ID identifying the associated account and a separate product code, wherein the product code is associated with a card type ID stored in the database, and wherein for each card type ID there is both associated distributor fee data and associated retailer commission data; and

processing the activation record to calculate any amounts owed to at least one of the retailer, distributor and card issuer for cards activated at the retailer location, based on the distributor fee data and the retailer commission data.

16. The method of claim 13, wherein the stored value card is selected from a group consisting of a gift card, a debit card, a prepaid credit card, and a prepaid telephone card.

17. The method of claim 13, wherein the stored value card is a gift card, and wherein the product code is further associated with data that identifies an issuing gift card merchant, a commission rate used for paying retailers, a distribution fee paid to a distributor that distributes the gift card to the retailer locations, and a value associated with the gift card.

18. The method of claim 13, wherein the stored value card is purchased by a customer at the retail location, and wherein the method further comprises:

after purchase of the stored value card at the retail location, subsequently providing activation data to the card issuer in order to complete activation of the card.

19. The method of claim 18, wherein the stored value card is a prepaid mobile telephone card and wherein the activation data provided to the card issuer is the telephone number of the customer purchasing the card.

20. The method of claim 19, wherein the step of subsequently providing activation data to the card issuer comprises using a telephone to access an interactive voice response system operated on behalf of the card issuer to provide the activating data.

21. The method of claim 19, wherein the step of subsequently providing activation data to the card issuer comprises accessing a website operated on behalf of the card issuer to provide the activating data.

22. The method of claim 13, further comprising:

issuing a receipt at the POS device, the receipt including account information to be used in conjunction with the stored value card.

23. The method of claim 22, wherein the account information to be used in conjunction with the stored value card is a personal identification number (PIN).

24. The method of claim 22, wherein the account information to be used in conjunction with the stored value card is an account number associated with the stored value card the account ID.

14-15. -15. (canceled)

25. A method for distributing and activating stored value cards at retail locations, where the stored value cards are from a plurality of card issuers, the method comprising:

assembling groups of stored value cards, each group including stored value cards from different card issuers, each card having stored information including account data that identifies an account associated with the card and product code data that identifies the card issuer, distributor fee data, and retailer commission data associated with the card;

distributing the groups of stored value cards to the retail locations;

reading the account data and product code data on a card when the card is to be activated at one of the retail locations;

providing an account database for maintaining an account associated with each stored value card;

activating the account associated with each card by providing the account data read from such card to the account database;

providing a distribution database for maintaining card activation records;

creating an activation record in the distribution database for each card activated, so that a tally of stored value cards from each card issuer that have been activated at the retail locations may be maintained and accounted for; and

processing the activation record in order to calculate amounts owed to each retailer, distributor and card issuer for cards activated, based on the distributor fee data and the retailer commission data.

26. (canceled)

27. A system for activating and accounting for the activation of stored value cards, where the stored value cards are each issued by an issuing merchant, and where a plurality of stored value cards from different issuing merchants are displayed for activation at each of a plurality of retailer locations, the system comprising:

a plurality of POS devices at the retailer locations and linked to a retailer network, where at least one of the POS devices collects data for activating a displayed card, the activating data identifying an account associated with a displayed card and identifying a card type associated with the displayed card, and wherein the activating data is provided to the retailer network;

a distribution database system linked to the retailer network for receiving the activating data, and for accounting to the issuing merchant that issued the activated card and accounting to the retailer that activated such card; and

a financial network linked to the distribution database system, to the retailer network and to the issuing merchants, for transferring payment data between the distribution database system and the retailer network and between the distribution database system and the issuing merchants.