Data processing method of configuring and monitoring a satellite spending card linked to a host credit card

• US 5,864,830 A
• Filed: 02/13/1997
• Issued: 01/26/1999
• Est. Priority Date: 02/13/1997
• Status: Expired due to Term

• Current Assignee: Spendingmoney LLC
• Original Assignee: David Armetta, David Tempest
• Inventors: Armetta, David, Tempest, David
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): Jeanty, Romain
• Application Number:
  US08/799,543
• Time in Patent Office: 712 Days
• Field of Search: 705/39, 705/40, 705/41, 705/43, 705/44, 235/380, 379/144
• US Class Current: 705/41
• CPC Class Codes: G06Q 20/04 Payment circuits
• 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 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/3437 the counter having non-monetary units, e.g. trips
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 20/405 Establishing or using transaction specific rules
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A data-processing method by which one or more prepaid satellite spending cards are configured and linked to a cardholder'"'"'s host credit card or card account such that a predetermined available spending capacity of each satellite card is selectively determined by the cardholder of the host credit card, is deducted from the available balance of the host card or card account and limits the total spending capacity of the satellite card. The main cardholder may also remotely selectively increase the available spending capacity of the one or more satellite cards by deducting the desired additional spending capacity of each satellite card from the available balance of the host credit card as a purchase against the host card account.

Claims

1. A data processing method of configuring a satellite spending card linked to a host credit card and issued by an issuer, the host credit card being held by a host cardholder and having an available balance defined in an associated host account data processing record of a data processing device, a predetermined spending capacity of the satellite card being selectively determined by the host cardholder, comprising the steps of:

(a) entering, into a data processing device, configuration data comprising an identifier of a satellite cardholder of a satellite card and a host cardholder-determined spending capacity of the satellite card;

(b) subtracting, in the data processing device, the entered spending capacity of the satellite card from the available balance of the host credit card;

(c) storing, in a satellite account record in the data processing device, the configuration data entered in said step (a);

(d) linking, in the data processing device, the satellite account record to the host account record to facilitate future transfers of funds from the host account record to the satellite account record;

(e) defining a satellite account number associated with the satellite account for use in financial transactions carried out with the satellite card and limited in total amount to the satellite card spending capacity;

(f) issuing the satellite card having means for storing on the satellite card the satellite account number so that each purchase made with the satellite card by the satellite cardholder is debited from the satellite card spending capacity, and means on the card for displaying at least a portion of the configuration data sufficient to identify the satellite cardholder so that only the satellite cardholder identified on the satellite card can use the satellite card for financial transactions in a total amount limited by the satellite card spending capacity; and

(g) tendering the satellite card to the satellite cardholder for use by satellite cardholder in carrying out financial transactions with the satellite card and limited in total amount to the satellite card spending capacity.

2. The data processing method of claim 1, further comprising the steps of:

(h) before said step (a), tendering to the host cardholder an offer to provide the satellite card to a satellite cardholder; and

(i) following acceptance by the host cardholder of the tendered offer, performing said step (a).

3. The data processing method of claim 1, wherein the configuration data comprises a name of the satellite cardholder.

4. The data processing method of claim 3, wherein said step (n)(1) comprises one of contacting the issuer via telephone, contacting the issuer via mail, and contacting the issuer over an Internet connection.

5. The data processing method of claim 1, further comprising the step of:

(j) following said step (b) and before said step (c), determining, in the data processing device, whether the host card available balance is sufficient to accommodate the host cardholder-determined spending capacity of the satellite card, and, when the host card available balance is not sufficient;

(1) informing the host cardholder that the available balance is insufficient,

(2) determining whether a new host cardholder-determined satellite card spending capacity is to be entered,

(3) entering, into the data processing device, a new satellite card spending capacity and repeating said step (b) when a new satellite card spending capacity is entered.

6. The data processing method of claim 1, further comprising the steps of

(k) after said step (f), and before said step (g), causing the satellite card to be inactive such that the satellite card may not be used in any financial transaction;

(l) after said step (g), awaiting confirmation from the satellite cardholder that the inactive satellite card has been received; and

(m) activating the satellite card after receipt of the confirmation awaited in said step (l).

7. The data processing method of claim 1, further comprising the step of:

(n) adding an additional predefined amount to the satellite card spending capacity by the host cardholder, by;

(1) contacting by the host cardholder the issuer of the host credit card to authorize addition of a host cardholder-determined additional amount of spending capacity to the satellite card;

(2) entering, into the data processing device, the additional amount;

(3) subtracting, in the data processing device, the additional amount from the host credit card available balance; and

(4) adding the additional amount to the satellite card spending capacity.

8. The data processing method of claim 1, further comprising the step of:

(o) recording in the data processing device each financial transaction made by the satellite cardholder using the satellite card in the satellite account record and identifying a time period during which the transaction was made.

9. The data processing method of claim 8, wherein each said financial transaction comprises one of a purchase amount and a credit amount, further comprising the step of:

(p) adjusting the satellite card spending capacity by;

(1) subtracting each purchase amount from the satellite card spending capacity, and

(2) adding each credit amount to the satellite card spending capacity.

10. The data processing method of claim 8, further comprising the steps of:

(q) generating in the data processing device a periodic satellite account statement showing financial transactions made in a previous period using the satellite card; and

(r) forwarding the generated periodic satellite account statement to at least one of the host cardholder and the satellite cardholder.