Pre-paid card system for purchasing products or services

• US 6,467,684 B2
• Filed: 03/02/1999
• Issued: 10/22/2002
• Est. Priority Date: 03/02/1999
• Status: Expired due to Fees

• Current Assignee: Netvisions Incorporated
• Original Assignee: Netvisions Incorporated
• Inventors: Fite, Debra Lynn, Doomernik, John Peter
• Primary Examiner(s): Lee, Diane I.
• Application Number:
  US09/260,046
• Publication Number:
  US 20010042784A1
• Time in Patent Office: 1,330 Days
• Field of Search: 235/379, 235/380, 235/381, 235/382, 235/385, 235/449, 902/4, 902/5, 902/27, 902/24, 705/14, 705/16, 705/18, 705/21, 705/22, 705/39, 705/44
• US Class Current: 235/379
• 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 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered

Abstract

A pre-paid card system is provided for paying for purchases over an electronic or computer network, such as the Internet. The system includes a plurality of cards each having a unique identity number associated therewith. The cards have different purchasing values. The cards are for one-time use only with no declining balance. A purchase is made by providing the card identification number to a merchant who is registered with the system, whereupon the validity of the card is verified by a host database before the purchase is completed.

Claims

1. A pre-paid card system for purchasing products or services, comprising:

a plurality of cards, each card having a unique identity number associated therewith, the cards being in an activated state and further having different purchasing values, for one-time use only;

a host computer provided with a database for storing the identity numbers of the cards and their associated one-time purchasing values and including an indicator corresponding with each identity number which indicator can be switched between an activated state in which the card associated with the status is available for use in the payment of goods or services and an inactive state, in which the card associated with the status is not available for use in payment for goods or services;

at least one merchant computer associated with a merchant offering a product or service for sale, said merchant computer being provided with a database containing details of said product or service for sale, including the price of the product or service;

means for receiving input from a purchaser identifying the product or service of said merchant being purchased and identifying the identity number of a card for use in payment of the purchase;

means for transferring the identity number identified by said purchaser to the host computer; and

means for comparing the identity number identified by the purchaser with the identity numbers in the database of the host computer for matching the identity number identified by the purchaser with an identity number in the database of the host computer to validate the purchase if a matching identity number with a corresponding indicator in the activated state is found and the identity number which is associated with said card having a purchasing value that is at least equal or larger than the price of the product or service being purchased, and subsequently disqualifying the identity number for payment of a further purchase, irrespective of whether the purchasing value of the identity number is equal to or larger than the purchase price, by switching said indicator to an inactive state.

2. The system according to claim 1, wherein each card is further provided with its associated identity number in a visually recognizable form thereon, concealed by a user removable strip.

3. The system according to claim 1, further comprising means for modifying the identity number of a card by the addition of a user-specified security number thereto.

4. The system according to claim 1, wherein each card has its one-time purchasing value displayed thereon.

5. The system according to claim 1, further comprising a readable memory on the card containing the identity number.

6. The system according to claim 5, wherein the readable memory on the card comprises a magnetic strip and said means for reading the identity number of a card comprises a card reader.

7. The system according to claim 5, wherein the host computer, said at least one terminal and said at least one merchant computer are connected together in a network.

8. The system according to claim 7, wherein the network comprises the Internet.

9. The system according to claim 5, wherein the indicator corresponding with the identity number of each card is initially in the inactive state and further comprising:

at least one activation terminal provided with a means for reading the identity number of a card from the memory on the card;

means for connecting the terminal to the host computer to transfer the identity number which has been read from the card to the host computer; and

means for comparing the identity number transferred from the activation terminal with the identity numbers in the database of the host computer for matching the transferred identity number with an identity number in the database and switching the corresponding indicator from said inactive to said activated state if a matching identity number with a corresponding indicator in the inactive state is found.

10. A system for purchasing products or services, comprising:

a host computer having means for generating a plurality of unique identity numbers being in an activated state and associated with different purchasing values, for one-time use only, the host computer further being provided with a database for storing the computer generated identity numbers and their associated one-time purchasing values;

at least one merchant computer associated with a merchant offering a product or service for sale, said merchant computer being provided with a database containing details of said product or service for sale, including the price of the product or service;

means for receiving input from a purchaser identifying the product or service of said merchant being purchased and identifying one of said computer generated identity numbers for use in payment of the purchase;

means for transferring the identity number identified by said purchaser to the host computer; and

means for comparing the identity number identified by the purchaser with the identity numbers in the database of the host computer for matching the identity number identified by the purchaser with an identity number in the database of the host computer to validate the purchase if a matching identity number is found and the identity number is associated with a purchasing value that is at least equal to or larger than the price of the product or service being purchased and subsequently disqualifying the identity number for payment of a further purchase, irrespective of whether the purchasing value of the identity number is equal to or larger than the purchase price, by switching said indicator to an inactive state.

11. The system according to claim 10, wherein the host computer and said at least one merchant computer are connected together in a network.