Method for prepaid debit card with overdraft capabilities

• US 20070100745A1
• Filed: 06/26/2006
• Published: 05/03/2007
• Est. Priority Date: 06/24/2005
• Status: Active Grant

• Current Assignee: CNG Financial Corporation
• Original Assignee: CNG Financial Corporation
• Inventors: Keiser, Bradley, Dean, Roger
• Granted Patent: US 8,234,215 B2
• Time in Patent Office: Days
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Disclosed is a method for implementing a prepaid debit card with overdraft capabilities. The system utilizes a real-time overdraft privilege risk analysis scoring module to calculate scores based on several criteria. The customer accounts are established within an aggregated general ledger account and are monitored and managed by a core processor. The overdraft privilege risk analysis scoring module operates in real time per card, per transaction.

Claims

1. A method for overdraft protection associated with a prepaid debit card to be utilized by a core processor, the method comprising the steps of:

a) establishing a prepaid debit card account for a customer;

b) receiving a request for funds from a transaction initiated by the customer;

c) comparing the amount of the transaction to the funds available;

d) utilizing an overdraft privilege risk analysis scoring module, in real-time, to analyze the request for overdraft funds based on a series of criteria;

e) authorizing overdraft transactions at certain amounts; and

,

f) withdrawing the overdraft privilege amount and any associated fees from the customer'"'"'s account when additional funds are available in the customer'"'"'s account.

2. The method according to claim 1, wherein the customer account is established via a traditional paper application or an electronic application.

3. The method according to claim 1, wherein the customer account is established within an aggregated general ledger account.

4. The method according to claim 1, wherein the customer accounts are managed by either a traditional or a non-traditional issuer.

5. The method according to claim 1, wherein the overdraft privilege module further includes the steps of:

a) determining whether a customer participates in recurring ACH activity;

b) determining whether the customer has made more than one ACH deposit;

c) determining whether the customer is eligible to receive the maximum amount of overdraft privilege;

d) determining when the customer last used overdraft privilege; and

e) determining whether to offer line-of-credit opportunity to customers.

6. The method according to claim 5, wherein the deposits correspond to a recurring ACH deposit.

7. The method according to claim 5, wherein the deposits correspond to single fund deposits by the customer at retail loading stations.

8. The method as set forth in claim 5, wherein the computing equipment utilizes real-time computed scores from the overdraft privilege risk analysis scoring module to approve the overdraft protection request.

9. The method as set forth in claim 5, wherein computing equipment utilizes computed scores from the overdraft privilege risk analysis scoring module to present a line-of-credit opportunity.

10. The method according to claim 5, wherein the overdraft privilege risk analysis scoring model calculates scores based on average number of value loads, average value of loads, average number of overdraft fees, average value of total overdraft fees, average days account is overdrawn, and account aging.

11. The method according to claim 10, wherein the overdraft privilege risk analysis scoring model determines the overdraft privilege limit by utilizing stored thresholds and customer measures.

12. The method according to claim 10, further including the step of utilizing computing equipment to automatically conduct the overdraft privilege risk analysis scoring module such that no direct, real-time human involvement is required to make overdraft privilege decisions.

13. A method for overdraft protection associated with a prepaid debit card to be utilized by a core processor, the method comprising the steps of:

a) establishing a prepaid debit card account for a customer;

b) managing individual customer account information that corresponds to usage of the customer account;

c) receiving a request for funds through an electronic communication system due to a transaction initiated by the customer;

d) utilizing a overdraft privilege risk analysis scoring module, in real-time, to analyze the request for overdraft funds based on a series of criteria;

e) utilizing computed scores from the overdraft privilege risk analysis scoring module to approve the overdraft protection request; and

f) withdrawing the overdraft privilege amount and any associated fees from the customer'"'"'s account once additional funds are available in the customer'"'"'s account.

14. The method according to claim 13, wherein the customer account is established via a traditional paper application or an electronic application.

15. The method according to claim 13, wherein the customer account is established within an aggregated general ledger account.

16. The method according to claim 13, wherein the customer accounts are managed by an agent of the issuer.