System, Program Product, And Associated Methods To Autodraw For Micro-Credit Attached To A Prepaid Card

• US 20090254443A1
• Filed: 04/02/2009
• Published: 10/08/2009
• Est. Priority Date: 12/21/2007
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Sorbe, Trent, Ahlers, Rebecca, Crowe, Andrew B., Galit, Scott H.
• Granted Patent: US 8,069,085 B2
• Time in Patent Office: Days
• US Class Current: 705/17
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• 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 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• 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
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A prepaid card processor receives data for a line of credit for a prepaid card from a lending institution computer. The prepaid card processor makes available draws to the line of credit line on behalf of the lending institution computer in an authorization stream for a proposed purchase using the prepaid card as payment. When the line of credit is accessed, the processor loads the prepaid card with an additional value equal to one or more preselected loan increments so that the prepaid card then has a new amount totaling a previous amount plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or equals the value of a proposed purchase. Then the processor notifies the lending institution so that the line of credit balances on the lending institution computer and the prepaid card processor are kept in sync.

Claims

1. A system for accessing a line of credit with a prepaid card, the system comprising:

a first computer defining a prepaid card processor, having memory, being associated with the electronic communications network, in communication with a second computer associated with a lending institution defining a lending institution computer, and being positioned to facilitate a line of credit associated with a prepaid card; and

a computer program product associated with the prepaid card processor, stored on a tangible computer memory media, and operable on a computer, the computer program product comprising a set of instructions that, when executed by the computer, cause the computer to perform the operations of;

receiving data for a prequalified line of credit for a prepaid card from a lending institution computer by a prepaid card processor, the prequalified line of credit data including one or more of the following;

a prequalification status responsive to consumer underwriting data and predetermined qualification parameters, a total loan value, a preselected loan increment, a preselected loan advance fee associated with each preselected loan increment, and a line of credit balance available,

making available draws to the line of credit line on behalf of the lending institution computer in an authorization stream for a proposed purchase of one or more items using the prepaid card as payment when an amount of value of the proposed purchase of the one or more items is greater than an amount of value on the prepaid card, proposed purchase data being received by prepaid card processor through the electronic communications network from a card reader device associated with a point of sale terminal,

loading the prepaid card with an additional value equal to one or more preselected loan increments so that the prepaid card then has a new amount totaling a previous amount of value on the prepaid card plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or, alternatively, equals the value of a proposed purchase to thereby convert line of credit data into a value associated with the prepaid card to thereby fund the proposed purchase, and

notifying the lending institution computer of the loading of the prepaid card so that the line of credit balances on the lending institution computer and the prepaid card processor are kept in sync.

2. A system of claim 1, wherein the operations further include:

receiving data by the prepaid card processor from a card reader device associated with a point of sale terminal responsive to the card reader device reading data from the prepaid card and modifying the data to include point-of-sale data to communicate with the prepaid card processor; and

3. A system of claim 1, wherein the operations further include:

displaying an account activity statement, including a purchase, on a display device to thereby provide a visual representation of a value associated with the prepaid card being exchanged for goods.

4. A system of claim 1, wherein the operation of making available draws to the line of credit line on behalf of the lending institution computer in an authorization stream for a proposed purchase of one or more items using the prepaid card as payment includes making available only a part of the preauthorized total loan value available, responsive to a consumer determination, so that the consumer retains maximum control.

5. A system of claim 1, wherein loan repayment occurs from direct deposit funds prior to or relatively instantaneously with the direct deposit funds being made available in the consumer'"'"'s account.

6. A system of claim 1, wherein the amount of value of the proposed purchase of the one or more items includes adjustments for one or more of the following:

coupons, discounts, instant rebates, and sales tax;

wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations; and

wherein the line of credit is bank product so that the line of credit complies with federal Regulation Z.

7. A system of claim 1, wherein the operation of receiving data for a line of credit for a prepaid card from a lending institution computer by a prepaid card processor further includes receiving a lending institution computer adjustment to the total loan value responsive to consumer performance data.

8. A computer program product, stored on a tangible computer memory media, operable on a computer, the computer program product comprising a set of instructions that, when executed by the computer, cause the computer to perform the operations of:

receiving, by a first computer defining a prepaid card processor, data for a prequalified line of credit for a prepaid card from a second computer associated with a lending institution defining a lending institution computer, the data including one or more of the following;

a prequalification status responsive to consumer underwriting data and predetermined qualification parameters, a total loan value, a preselected loan increment, a preselected loan advance fee associated with each preselected loan increment, and a line of credit balance available;

making available draws to the line of credit line on behalf of the lending institution computer in an authorization stream for a proposed purchase of one or more items using the prepaid card as payment when an amount of value of the proposed purchase of the one or more items is greater than an amount of value on the prepaid card, proposed purchase data being received by prepaid card processor through the electronic communications network from a card reader device associated with a point of sale terminal;

loading the prepaid card with an additional value equal to one or more preselected loan increments so that the prepaid card then has a new amount totaling a previous amount of value on the prepaid card plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or, alternatively, equals the value of a proposed purchase to thereby convert line of credit data into a value associated with the prepaid card to thereby fund the proposed purchase; and

notifying the lending institution computer of the loading of the prepaid card so that the line of credit balances on the lending institution computer and the prepaid card processor are kept in sync.

9. A computer program product of claim 8, wherein the operations further include:

receiving data by the prepaid card processor from a card reader device associated with a point of sale terminal responsive to the card reader device reading data from the prepaid card and modifying the data to include point-of-sale data to communicate with the prepaid card processor.

10. A computer program product of claim 8, wherein the operations further include:

displaying an account activity statement, including a purchase, on a display device to thereby provide a visual representation of a value associated with the prepaid card being exchanged for goods.

11. A computer program product of claim 8, wherein the operation of making available draws to the line of credit line on behalf of the lending institution computer in an authorization stream for a proposed purchase of one or more items using the prepaid card as payment includes making available only a part of the preauthorized total loan value available, responsive to a consumer determination, so that the consumer retains maximum control.

12. A computer program product of claim 8, wherein loan repayment occurs from direct deposit funds prior to or relatively instantaneously with the direct deposit funds being made available in the consumer'"'"'s account.

13. A computer program product of claim 8, wherein the amount of value of the proposed purchase of the one or more items includes adjustments for one or more of the following:

coupons, discounts, instant rebates, and sales tax;

wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations; and

wherein the line of credit is bank product so that the line of credit complies with federal Regulation Z.

14. A computer program product of claim 8, wherein the operation of receiving data for a line of credit for a prepaid card from a lending institution computer by a prepaid card processor further includes receiving a lending institution computer adjustment to the total loan value responsive to consumer performance data.

20. A computer program product of claim 8, wherein the operation of receiving data for a line of credit for a prepaid card from a lending institution computer by a prepaid card processor further includes receiving a lending institution computer adjustment to the total loan value responsive to consumer performance data.

15. A computer-implemented method for accessing a line of credit with a prepaid card, the computer-implemented method comprising:

receiving, by a first computer defining a prepaid card processor, data for a prequalified line of credit for a prepaid card from a second computer associated with a lending institution defining a lending institution computer, the data including one or more of the following;

a prequalification status responsive to consumer underwriting data and predetermined qualification parameters, a total loan value, a preselected loan increment, a preselected loan advance fee associated with each preselected loan increment, and a line of credit balance available;

making available draws to the line of credit line on behalf of the lending institution computer by the prepaid card processor in an authorization stream for a proposed purchase of one or more items using the prepaid card as payment when an amount of value of the proposed purchase of the one or more items is greater than an amount of value on the prepaid card, proposed purchase data being received by prepaid card processor through the electronic communications network from a card reader device associated with a point of sale terminal;

loading the prepaid card with an additional value equal to one or more preselected loan increments by the prepaid card processor so that the prepaid card then has a new amount totaling a previous amount of value on the prepaid card plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or, alternatively, equals the value of a proposed purchase to thereby convert line of credit data into a value associated with the prepaid card to thereby fund the proposed purchase; and

notifying the lending institution computer by the prepaid card processor of the loading of the prepaid card so that the line of credit balances on the lending institution computer and the prepaid card processor are kept in sync.

16. A computer-implemented method of claim 15, further comprising:

receiving data by the prepaid card processor from a card reader device associated with a point of sale terminal responsive to the card reader device reading data from the prepaid card and modifying the data to include point-of-sale data to communicate with the prepaid card processor.

17. A computer-implemented method of claim 15, further comprising:

displaying an account activity statement, including a purchase, on a display device to thereby provide a visual representation of a value associated with the prepaid card being exchanged for goods.

18. A computer-implemented method of claim 15, wherein the step of making available draws to the line of credit line on behalf of the lending institution computer by the prepaid card processor in an authorization stream for a proposed purchase of one or more items using the prepaid card as payment includes making available only a part of the preauthorized total loan value available, responsive to a consumer determination, so that the consumer retains maximum control.

19. A computer-implemented method of claim 15, wherein loan repayment occurs from direct deposit funds prior to or relatively instantaneously with the direct deposit funds being made available in the consumer'"'"'s account.