METHODS AND SYSTEMS FOR PROCESSING, ACCOUNTING, AND ADMINISTRATION OF STORED VALUE CARDS

• US 20110029396A1
• Filed: 08/09/2010
• Published: 02/03/2011
• Est. Priority Date: 01/30/2002
• Status: Active Grant

• Current Assignee: Card Compliant, LLC
• Original Assignee: Store Financial Services LLC (EML Payments Ltd.)
• Inventors: Sobek, Michael F.
• Granted Patent: US 7,912,784 B2
• Time in Patent Office: Days
• US Class Current: 705/17
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network 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 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Methods are described for accounting, administration and processing of transactions utilizing a stored value card utilizing an EFT service gateway and providing balances for the cards across a plurality of point of sale devices. One method includes receiving a message generated by the point of sale system of a merchant and parsing the message into data elements. The method also includes routing the message through a switch controller to an account holder database based on an institution ID and a branch ID, accessing an account within the database utilizing the account key, and determining if an account holder'"'"'s monetary balance in the account is greater than or equal to the transaction amount. A message is formatted and one of an authorization approval or a denial based upon the determination is transmitted within the message.

Claims

1-23. -23. (canceled)

24. A method for processing stored value card transactions, the stored value cards associated with an account holder database, said method comprising:

receiving, from a point of sale system, a transaction message requesting an authorization or denial for an individual transaction associated with the account holder database;

accessing data associated with a particular account within the account holder database based on an account identifier within the transaction message;

determining if a monetary account balance in the particular account dictates approval or denial of the transaction based upon a transaction type and a transaction amount within the transaction message;

calculating a remaining monetary account balance in the particular account based upon approval or denial of the transaction;

creating an authorization response message based on the approval or denial determination, for transmission to the point of sale system, the authorization response message including at least a unique alpha numeric string representing the remaining monetary account balance for the particular account, the unique alphanumeric string within an authorization identification response field of the authorization response message, the content of the alpha numeric string based on data within a separate ISO-8583 data field, and a response code indicative of the approval or denial of the transaction; and

transmitting the authorization response message to the point of sale system to cause at least one of a display of the unique alpha numeric string at the point of sale system and a printing of the unique alphanumeric string on a receipt generated by the point of sale system.

25. The method according to claim 24 wherein receiving a transaction message comprises receiving a transaction message that is ISO-8583 compatible.

26. The method according to claim 24 wherein the transaction type includes at least one of a deposit, a withdrawal, a transfer, and an account balance inquiry.

27. The method according to claim 24 wherein determining if a monetary account balance in the particular account dictates approval or denial of the transaction comprises:

treating the transaction type as a split tender transaction when the monetary account balance for the particular account is determined to be less than the transaction amount within the transaction message; and

selecting a response code indicating an approval of the authorization request for the amount of the monetary account balance.

28. The method according to claim 24 wherein determining if a monetary account balance in the particular account dictates approval or denial of the transaction comprises:

treating the transaction type as an account balance inquiry when the monetary account balance for the particular account is determined to be less than the transaction amount within the transaction message; and

selecting a response code indicating a denial of the authorization request.

29. The method according to claim 28 further comprising at least one of causing a reason for denial of the transaction to be displayed by the point of sale system and causing a reason for denial of the transaction to be printed on a receipt by the point of sale system.

30. The method according to claim 24 wherein determining if a monetary account balance in the particular account dictates approval or denial of the transaction comprises treating the transaction type as an account balance inquiry when the transaction amount is equal to a predetermined value.

31. The method according to claim 24 wherein receiving a transaction message comprises receiving the transaction message via a bank card payment network.

32. The method according to claim 24 wherein transmitting the authorization response message to the point of sale system comprises transmitting the authorization response message via a bank card payment network.

33. The method according to claim 24 wherein:

determining if a monetary account balance in the particular account dictates approval or denial of the transaction comprises treating the transaction type as a balance inquiry when the monetary account balance for the particular account is determined to be less than one dollar and less than the transaction amount, and selecting a response code indicating a denial of the authorization request; and

wherein;

creating an authorization response message comprises creating a unique alphanumeric string representing the monetary account balance of the particular account to include characters indicative of the monetary account balance being in cents inserted into the alphanumeric string following the characters indicative of the monetary account balance.

34. The method according to claim 24 wherein for a transaction amount, when approved, results in a remaining account balance of less than one dollar in the particular account, said method comprises:

selecting a response code indicating an approval of the authorization request; and

wherein;

creating an authorization response message comprises creating a unique alphanumeric string representing the monetary account balance of the particular account to include characters indicative of the monetary account balance being in cents inserted into the alphanumeric string following the characters indicative of the monetary account balance.

35. The method according to claim 24 wherein:

determining if a monetary account balance in the particular account dictates approval or denial of the transaction comprises treating the transaction type as a balance inquiry when the monetary account balance for the particular account is determined to be zero and less than the transaction amount, and selecting a response code indicating a denial of the authorization request; and

wherein;

creating an authorization response message comprises creating a unique alphanumeric string representing the zero account balance of the particular account to include specific characters inserted into the alphanumeric string indicative of the zero account balance.

36. The method according to claim 24 further comprising charging one or more account maintenance fees against the particular account associated with a stored value card.

37. The method according to claim 36 wherein charging one or more account maintenance fees comprises charging one or more account maintenance fees according to state compliance policies relating to the charging of account maintenance fees.

38. The method according to claim 24 wherein accessing data associated with a particular account within the account holder database comprises verifying that a merchant identifier within the transaction message exists within a merchant database associated with the stored value card.

39. The method according to claim 38 further comprising:

declining the individual transaction when the merchant identifier is not included in the merchant database; and

generating a fraudulent transaction report.

40. The method according to claim 24 wherein calculating a remaining monetary account balance in the particular account comprises calculating an automatic hold amount to be added to a transaction amount.

41. The method according to claim 24 wherein, for a transaction amount that is negative, calculating a remaining monetary account balance in the particular account comprises adding the transaction amount to monetary account balance in the particular account.

42. The method according to claim 24 further comprising:

grouping merchants in a merchant database according to one or more of merchant affiliation and shopping center affiliation, each merchant identified by a merchant identifier;

accessing data associated with a particular merchant within the merchant database based on a merchant identifier within the transaction message; and

determining if the affiliations associated with the particular merchant dictate approval or denial of the transaction.

43. The method according to claim 24 further comprising providing reports including one or more of a summary of the daily stored value card transactions, end of day card activation transactions, daily redemptions and transactions completed at individual merchant locations, and a merchant redemption summary by property.

44. The method according to claim 24 further comprising balancing deposits relating to collected stored value card funds against outstanding balances of new and historically funded stored value cards.

45. The method according to claim 24 further comprising ensuring that requests for payments approved and included in authorization response message match the funds requested by debit and credit card processors for payment to merchants.

46. The method according to claim 24 wherein accessing data associated with a particular account within the account holder database comprises routing the transaction message from a gateway through a switch controller to access the account holder database, the routing based on one or more of a bank identification number, an institution identifier, and a branch identifier within the transaction message.

47. A switching controller programmed to

receive, from a gateway into an ISO 8583 electronic funds transfer service, a transaction message originating from a point of sale system, the transaction message requesting an authorization or denial of an individual transaction associated with an account holder database;

parse the transaction message into a series of data elements including at least a transaction amount, a transaction type, a merchant identifier, and an account identifier;

access data relating to an account within the account holder database utilizing the account identifier;

determine if a monetary account balance in the account dictates approval or denial of the transaction based upon the transaction type and the transaction amount within the transaction message;

calculate and store within the database a remaining monetary account balance in the account based upon an approval or a denial of the transaction;

create an authorization response message based on the calculation, for transmission to the point of sale system via the gateway, the authorization response message including at least a unique alpha numeric string representing the remaining monetary account balance for the account and an approval or denial of the transation, the unique alphanumeric string within an authorization identification response field of the authorization response message, the content of the alpha numeric string based on data within a separate ISO-8583 data field.

48. The switching controller of claim 47 wherein the transactions are received based on at least one of a bank identification number, an institution identifier, and a branch identifier associated with said switching controller, the at least one of a bank identification number, an institution identifier, and a branch identifier within the transaction message.