Method and System for Distribution of Unactivated Bank Account Cards

• US 20070299756A1
• Filed: 08/08/2007
• Published: 12/27/2007
• Est. Priority Date: 09/23/2003
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: Chase Manhattan International Incorporated (JP Morgan Chase & Co)
• Inventors: Cohen, David, Clifton, David, Ilijasic, Dean, Clearly, Michael, Rodgers, Kristine
• Granted Patent: US 8,468,072 B2
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/354 Card activation or deactivation
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• 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

The invention comprises a method for distributing dead bank cards to customers who have not solicited a bank card or submitted an application. The dead bank card is a bank card (e.g., ATM card, debit card, check card, and the like) which contains all necessary information to be used, including a pre-assigned bank account number, and which only requires activation/approval by the prospective new bank account customer. In one embodiment, the dead bank card is distributed in connection with live credit cards issued to applicants for credit card accounts. Once operative, the bank card and the credit card may be linked together through a rebate/rewards program.

Claims

1-40. -40. (canceled)

41. A method for distributing debit cards, the method comprising:

issuing, by a sponsoring bank, a debit card to a cardholder, the debit card being associated with a demand deposit account (DDA) held at a linked bank that is different from the sponsoring bank;

receiving, by the sponsoring bank, an authorization request for a card transaction initiated with the debit card, the authorization request being routed via a payment network;

approving the card transaction; and

settling at least a portion of the approved card transaction with funds from the associated demand deposit account held at the linked bank.

42. The method according to claim 41, wherein the associated demand deposit account is a pre-existing checking account or savings account held by the cardholder at the linked bank.

43. The method according to claim 41, wherein, at time of issuance, the debit card is already associated with the demand deposit account.

44. The method according to claim 41, wherein the debit card is associated with the demand deposit account subsequent to the issuance of the debit card.

45. The method according to claim 41, wherein the debit card is associated with a rewards program, and wherein usage of the debit card accrues rewards or rebates for the cardholder.

46. The method according to claim 45, wherein the rewards program is also associated with a credit card issued to the cardholder, and wherein usage of the credit card also accrues rewards or rebates for the cardholder.

47. The method according to claim 45, wherein the rewards program is co-branded with a merchant partner of the sponsoring bank and provides one or more incentives for the cardholder to transact with the merchant partner using the debit card.

48. The method according to claim 47, wherein the co-branded rewards program provides more rewards or rebates to the cardholder for using the debit card in transactions with the merchant partner than with other merchants.

49. The method according to claim 47, wherein the rewards or rebates earned in the co-branded rewards program can only be applied to transactions with the merchant partner.

50. The method according to claim 41, wherein the payment network is a credit payment network.

51. The method according to claim 41, wherein the payment network is a debit payment network.

52. The method according to claim 41, further comprising:

transferring funds from the associated demand deposit account via one or more automated clearing house (ACH) transactions.

53. The method according to claim 41, wherein the card transaction is approved in substantial real-time and the settlement of the approved card transaction occurs at a later time.

54. The method according to claim 41, wherein both the approval of the card transaction and the settlement of the approved card transaction occur in substantial real-time.

55. The method according to claim 41, wherein at least a portion of the funds are transferred from the associated demand deposit account prior to the card transaction to form a stock of funds held by the sponsoring bank.

56. The method according to claim 55, further comprising:

replenishing the stock of funds by transferring additional funds from the associated demand deposit account.

57. The method according to claim 41, further comprising:

associating the debit card with a second demand deposit account.

58. The method according to claim 41, wherein the debit card bears a MasterCard®

, a VISA®

logo, a DISCOVER®

logo, or an AMERICAN EXPRESS®

logo.

59. The method according to claim 41, wherein the debit card is branded with an indicia of the sponsoring bank.

60. The method according to claim 41, wherein the debit card is co-branded with an indicia of a merchant partner of the sponsoring bank.

61. The method according to claim 41, wherein, at time of issuance, the debit card comprises embossed information and magnetic stripe information.

62. A system for distributing debit cards, the system comprising:

means for issuing, by a sponsoring bank, a debit card to a cardholder, the debit card being associated with a demand deposit account (DDA) held at a linked bank that is different from the sponsoring bank;

means for receiving, by the sponsoring bank, an authorization request for a card transaction initiated with the debit card;

means for approving the card transaction; and

means for settling at least a portion of the approved card transaction with funds from the associated demand deposit account held at the linked bank.

63. A method for distributing bank cards, the method comprising:

issuing, by a sponsoring bank, a universal bank card to a cardholder, wherein, at time of issuance, the universal bank card is not associated with any bank account at the sponsoring bank; and

causing the cardholder to activate the universal bank card by associating the universal bank card with a bank account held at a linked bank that is different from the sponsoring bank, wherein approved transactions initiated with the universal bank card are funded by the associated bank account.

64. A computerized method for distributing bank cards, the method comprising:

issuing, by a first bank, a universal bank card to a cardholder, wherein, at time of issuance, the universal bank card is not actively associated with any bank account; and

causing the cardholder to activate the universal bank card by associating the universal bank card with at least one bank account selected from a group consisting of;

one or more accounts held at the first bank, and

one or more accounts held at a second bank that is different from the first bank;

receiving an authorization request for a card transaction initiated with the universal bank card, the authorization request being routed via a payment network;

approving the card transaction; and

settling at least a portion of the approved card transaction with funds from the at least one bank account that has been associated with the universal bank card.

65. The method according to claim 64, wherein the one or more accounts held at the first bank comprise a bank account pre-built for the cardholder.

66. The method according to claim 64, wherein the one or more accounts held at the first bank comprise a pre-existing bank account that the cardholder held at the first bank prior to the issuance of the universal bank card.

67. The method according to claim 64, wherein the one or more accounts held at the first bank comprise a new bank account that the cardholder opens at the first bank subsequent to the issuance of the universal bank card.

68. The method according to claim 64, wherein the one or more accounts held at the second bank comprise a pre-existing bank account that the cardholder held at the second bank prior to the issuance of the universal bank card.

69. The method according to claim 64, wherein the one or more accounts held at the second bank comprise a new bank account that the cardholder opens at the second bank subsequent to the issuance of the universal bank card.

70. The method according to claim 64, wherein the universal bank card is associated with a rewards program, and wherein usage of the universal bank card accrues rewards or rebates for the cardholder.

71. The method according to claim 64, wherein the universal bank card is associated with a single bank account at any given time.

72. The method according to claim 64, wherein the universal bank card is simultaneously associated with multiple bank accounts.

73. A computerized method for distributing bank cards, the method comprising:

issuing, by a first bank, a bank card to a cardholder, the bank card being associated with a first bank account held at the first bank;

causing the cardholder to associate the bank card with a second bank account held at a second bank that is different from the first bank;

approving a card transaction initiated with the bank card; and

settling at least a portion of the approved card transaction with funds from the second bank account.

74. The method according to claim 73, wherein the bank card is selected from a group consisting of:

debit card, check card, ATM card, and stored value card.

75. The method according to claim 73, wherein the bank card is associated with a rewards program, and wherein usage of the bank card accrues rewards or rebates for the cardholder.