System and method for using a prepaid card

• US 6,473,500 B1
• Filed: 10/28/1998
• Issued: 10/29/2002
• Est. Priority Date: 10/28/1998
• Status: Expired due to Term

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Hunter, Burnett D., Wiggins, Janice, McKenzie, Kevin, Risafi, Nicole N., Stangle, Brian
• Primary Examiner(s): NGUYEN, DUC MINH
• Application Number:
  US09/181,377
• Time in Patent Office: 1,462 Days
• Field of Search: 379/112, 379/114.01, 379/115, 379/116, 379/144.04, 379/145, 379/114-5-1, 235/2, 235/375, 235/379-380, 902/27
• US Class Current: 379/144.01
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3433 the counter having monetary units
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/355 Personalisation of cards for use
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G07F 17/0028 Use of a wired telephone or public communication device charging and metering the use of the telecommunication network H04M17/02
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: H04M 15/00 Arrangements for metering, time-control or time indication ; Metering, charging or billing arrangements for voice wireline or wireless communications, e.g. VoIP
• CPC Class Codes: H04M 15/51 for resellers, retailers or service providers
• CPC Class Codes: H04M 17/00 Prepayment of wireline communication systems, wireless communication systems or telephone systems using a coded card to authorise calls from a telephone set H04M1/675
• CPC Class Codes: H04M 17/02 Coin-freed or check-freed systems , e.g. mobile- or card-operated phones, public telephones or booths
• CPC Class Codes: H04M 17/106 using commercial credit or debit cards
• CPC Class Codes: H04M 2017/14 using commercial credit/debit cards, e.g. VISA, AMEX
• CPC Class Codes: H04M 2215/54 Resellers-retail or service providers billing, e.g. agreements with telephone service operator, activation, charging/recharging of accounts

Abstract

A system for using a prepaid card permits a card user to purchase a card, issued by an issuer such as a bank, through an agent at a retail establishment via a terminal, select a PIN, have the card activated at the point of purchase, use the card to purchase goods and services, and reload the card for future use. The system uses a communications network for issuance, activation, and accounting, and activation is accomplished on a real-time basis, either one account at a time or in a batch mode. The card can be used to purchase a wide range of goods and services including telephone services. The card can also be used to make cash withdrawals at an ATM or a point-of-sale terminal.

Claims

1. A method for using a prepaid card having associated card identification data, comprising the following steps:

issuing said card without a security code;

purchasing said card by a purchaser, in any denomination having cash value, said purchasing step being performed during a card purchase transaction, said card purchase transaction being performed after said issuing step;

selecting by said purchaser a personal identification number during said card purchase transaction, wherein said personal identification number is to be used with said card to verify an authorized user of said card when subsequently conducting a card transaction; and

activating said card after said selecting step by transmitting over a communications network to a card processing center said personal identification number, said card identification data, and data indicative of said cash value,

wherein said personal identification number, said card identification data, and said cash value data are stored in a card account accessible by said card processing center,

and wherein said card is available for use after said activating step is performed.

2. The method according to claim 1, further comprising, after said activating step, establishing, upon said transmission, said card account at said card processing center, said account being uniquely associated with the issuance of said card.

3. The method according to claim 2, further comprising the step of adding cash value to said card account by tendering an amount of cash value and incrementing said cash value data by said cash value amount.

4. The method according to claim 2, further comprising the step of removing cash value from said card account by decrementing said cash value data by an amount of cash value and tendering said cash value amount to said authorized card user.

5. The method according to claim 2, wherein said card transaction is selected from the group consisting of adding cash value to said card account, purchasing a good or a service, and withdrawing cash.

6. The method according to claim 5, wherein said step of purchasing a good or service comprises purchasing telephone services.

7. The method according to claim 5, wherein said step of purchasing a good or service comprises decrementing said cash value data by the cost of said good or service.

8. The method according to claim 5, wherein said withdrawing step comprises decrementing said cash value data by the amount withdrawn.

9. The method according to claim 5, wherein said step of purchasing a good or service comprises the following steps:

presenting to an agent said card and an item having a purchase price;

transmitting to said card processing center said card identification data, a second personal identification number, and data indicative of said purchase price; and

verifying that said second personal identification number equals said personal identification number.

10. The method according to claim 9, further comprising the step of verifying that said cash value is greater than or equal to said purchase price.

11. The method according to claim 10, further comprising the step of decrementing said cash value data by the amount of said purchase price data.

12. The method according to claim 11, further comprising the step of transmitting an approval to said agent.

13. The method according to claim 12, wherein said agent comprises a card-accepting device.

14. The method according to claim 9, wherein said transmitting step comprises transmitting over said communications network.

15. The method according to claim 12, wherein said approval transmitting step comprises transmitting over said communications network.

16. The method according to claim 5, wherein said withdrawing step comprises the following steps:

presenting to an agent said card and an amount to be withdrawn;

transmitting to said card processing center said card identification data, a second personal identification number, and data indicative of said withdrawal amount;

verifying that said second personal identification number equals said personal identification number; and

verifying that said cash value is greater than or equal to said withdrawal amount.

17. The method according to claim 16, further comprising the following steps:

decrementing said cash value data by said withdrawal amount data;

authorizing said agent to transfer to said authorized card user an amount of cash equal to said withdrawal amount; and

transferring to said authorized card user an amount of cash equal to said withdrawal amount.

18. The method according to claim 17, wherein said agent comprises a card-accepting device.

19. The method according to claim 16, wherein said transmitting step comprises transmitting over said communications network.

20. The method according to claim 1, further comprising the step of altering said stored personal identification number.

21. The method according to claim 1, wherein said card is inactive before said activating step is performed.

22. The method according to claim 1, wherein said cash value data corresponds to an amount of payment tendered to an agent.

23. The method according to claim 22, wherein said agent comprises a card-accepting device.

24. The method according to claim 1, wherein said activating step is performed by an employer and said cash value data is indicative of an employee'"'"'s net pay.

25. The method according to claim 1, wherein said activating step is performed by a gift donor and said cash value data is indicative of a gift amount.

26. The method according to claim 1, wherein said activating step is performed by a product promoter and said cash value data is indicative of a promotion amount.

27. The method according to claim 1, wherein said activating step is performed by a money transferor and said cash value data is indicative of an amount to be transferred to a money transferee.

28. The method according to claim 1, wherein said activating step is performed by an employer and said cash value data is indicative of an amount to be used to purchase relocation expenses.

29. The method according to claim 1, wherein said communications network is the Internet.

30. A method for activating a prepaid card having associated card identification data, said card being issued without a security code, said method comprising the following steps:

assigning to said card, after purchase of said card by a purchaser, a personal identification number to be used with said card identification data, said purchase of said card being performed during a card purchase transaction, and said personal identification number being selected by said purchaser during said card purchase transaction; and

after said personal identification number is selected by said purchaser, transmitting to a card processing center over a communications network said card identification data, said personal identification number, and data indicative of cash value, wherein said card processing center activates said card, establishes a unique card account, and stores said card identification data, said personal identification number, and said cash value data to subsequently verify an authorized user of said card when said authorized card user conducts a card transaction.

31. The method according to claim 30, further comprising the step of activating more than one card in a batch format.

32. The method according to claim 31, further comprising the step of distributing each said card to a user of said card.

33. The method according to claim 32, further comprising the step of adding an amount of cash value to said card account, wherein said card processing center increments said cash value data by said cash value amount.

34. The method according to claim 33, further comprising the step of periodically adding cash value to said card account.

35. The method according to claim 30, further comprising the step of altering said stored personal identification number.

36. The method according to claim 30, further comprising the following steps:

accessing a telephone services provider; and

transmitting said card identification data and said personal identification number to said telephone services provider.

37. The method according to claim 30, wherein said communications network is the Internet.

38. A system for using a prepaid card having associated card identification data, said system comprising:

an issuer that issues said card without a security code;

a terminal which reads said card identification data from said card and, after selection, by a card purchaser, of a personal identification number, transmits over a communications network said card identification data, said personal identification number, and data indicative of cash value, wherein said card purchaser purchases said card during a card purchase transaction, and said selection of said personal identification number is performed during said card purchase transaction; and

a card processing center in communication with said terminal over said communications network to receive said card identification data, said personal identification number, and said cash value data, said card processing center activating said card after said selection of said personal identification number, establishing a unique card account, and storing in said card account said card identification data, said personal identification number, and said cash value data, enabling the verification of the validity of said card identification data using said personal identification number when an authorized card user subsequently attempts to conduct a card transaction.

39. The system according to claim 38, wherein said issuer comprises a bank.

40. The system according to claim 38, wherein more than one card is activated in a batch format.

41. The system according to claim 40, wherein each said card is distributed to a user of said card.

42. The system according to claim 38, wherein an amount of cash value is added to said card account by incrementing said cash value data by said cash value amount.

43. The system according to claim 42, wherein cash value is periodically added to said card account.

44. The system according to claim 38, wherein said authorized card user alters said stored personal identification number.

45. The system according to claim 38, wherein said card transaction comprises purchasing telephone services.

46. The system according to claim 38, wherein said terminal facilitates the purchase of goods and services and said cash value data comprises a purchase price.

47. The system according to claim 38, wherein said communications network is the Internet.

48. A method for activating a prepaid card having associated card identification data, said card being issued without a security code, said method comprising the following steps:

after selection of a personal identification number, receiving over a communications network said card identification data, said personal identification number, and data indicative of cash value, wherein said card is purchased during a cad purchase transaction, and said selection of said personal identification number is performed during said card purchase transaction;

activating said card upon receipt of said card identification data, said personal identification number, and said cash value data;

establishing a unique card account; and

storing said card identification data, said personal identification number, and said cash value data to enable verification of an authorized user of said card when said authorized card user subsequently conducts a card transaction.

49. The method according to claim 48, further comprising the step of activating more than one card in a batch format.

50. The method according to claim 49, further comprising the step of distributing each said card to a user of said card.

51. The method according to claim 48, further comprising the step of storing said cash value data in said card account.

52. The method according to claim 51, further comprising the step of adding an amount of cash value to said card account by incrementing said cash value data by said cash value amount.

53. The method according to claim 52, further comprising the step of periodically adding cash value to said card account.

54. The method according to claim 48, further comprising the step of altering said stored personal identification number.

55. The method according to claim 48, wherein said communications network is the Internet.

56. A method for processing a prepaid card having associated card identification data, said card being issued without a security code, said method comprising the following steps:

after selection of a personal identification number, receiving over a communications network said card identification data, said personal identification number, and data indicative of cash value, wherein said card is purchased during a card purchase transaction, and said selection of said personal identification number is performed during said card purchase transaction;

activating said card upon receipt of said card identification data, said personal identification number, and said cash value data;

establishing a unique card account;

storing said card identification data, said personal identification number, and said cash value data to enable verification of an authorized user of said card when said authorized card user subsequently conducts a card transaction;

presenting to an agent said card and an item having a purchase price;

receiving said card identification data, a second personal identification number, and data indicative of said purchase price; and

verifying that said second personal identification number equals said personal identification number.

57. The method according to claim 56, further comprising the step of verifying that said cash value is greater than or equal to said purchase price.

58. The method according to claim 57, further comprising the step of decrementing said cash value data by the amount of said purchase price data.

59. The method according to claim 58, further comprising the step of transmitting an approval to said agent.

60. The method according to claim 59, wherein said agent comprises a card-accepting device.

61. The method according to claim 56, wherein said second receiving step comprises receiving over said communications network.

62. The method according to claim 59, wherein said transmitting step comprises transmitting over said communications network.

63. The method according to claim 56, wherein said communications network is the Internet.

64. A method for providing a transaction system, comprising the steps of:

issuing a card which is devoid of a functioning personal identification number;

purchasing, by a card purchaser, the card during a card purchase transaction, the card purchase transaction being performed after the issuing step, wherein the card has an initial cash value at a first time which is no earlier than a time at which the purchasing step is started;

selecting, by the card purchaser, personal identification data, the personal identification data being for verifying an identity of an authorized user of the card, wherein the selecting step is performed during the card purchase transaction; and

activating the card by transmitting activation data to a processing center, wherein the activation data include the personal identification data, wherein the activating step is performed after the selecting step, and wherein the personal identification data are stored in a storage device which is accessible by the processing center.

65. A method for activating a card, comprising the steps of:

assigning to a card, no earlier than a starting time of a card purchase transaction, personal identification data, the personal identification data being for verifying an identity of an authorized user of the card, wherein the card is purchased by a purchaser during the card purchase transaction, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the starting time, and wherein the personal identification data are selected by the purchaser during the card purchase transaction; and

transmitting the personal identification data to a processing center, wherein the processing center stores the personal identification data.

66. A card transaction system, comprising:

a terminal which transmits personal identification data selected at a selection time by a purchaser of a card, the selection time being during a card purchase transaction during which the card is purchased by the purchaser, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the selection time, and wherein the personal identification data are transmitted no earlier than a starting time of the card purchase transaction; and

a processing center in communication with the terminal and configured to perform the steps of;

receiving the personal identification data from the terminal,

activating the card upon receipt of the personal identification data,

storing the personal identification data, and

using the personal identification data to enable verification of validity of a use of the card for a card transaction.

67. A method for activating a card, comprising the steps of:

receiving personal identification data selected at a selection time by a purchaser of a card, the selection time being during a card purchase transaction during which the card is purchased by the purchaser, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the selection time, and wherein the personal identification data are received at a receipt time which is no earlier than a starting time of the card purchase transaction;

activating the card at a time no earlier than the receipt time; and

storing the personal identification data to thereby enable verification of an authorized user of the card.

68. A method for processing a card, comprising the steps of:

receiving first personal identification data selected at a selection time by a purchaser of a card, the selection time being during a card purchase transaction during which the card is purchased by the purchaser, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the selection time;

activating the card at a time which is no earlier than a starting time of the step of receiving the first personal identification data;

storing the first personal identification data to thereby enable verification of an authorized user of the card;

receiving, by an agent, the card and an item having a purchase price;

receiving second personal identification data;

receiving data indicative of the purchase price; and

verifying that the second personal identification data correspond to the first personal identification data.

69. In a method for using a prepaid card, the improvement comprising:

issuing a card which is devoid of a functioning personal identification number; and

after the issuing step, performing a card purchase transaction comprising the steps of;

selecting, by a card purchaser, a set of personal identification data, the set of personal identification data being for verifying validity of a use of the card for a transaction which is subsequent to the card purchase transaction, and

purchasing the card by the card purchaser.

70. In a method for activating a prepaid card, the improvement comprising assigning to the card, no earlier than a starting time of a card purchase transaction, personal identification data, the personal identification data being for verifying an identity of an authorized user of the card, wherein a purchaser purchases the card during the card purchase transaction, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the starting time, and wherein the personal identification data are selected by the purchaser during the card purchase transaction.

71. In a system for using a prepaid card, the improvement comprising a terminal which transmits personal identification data selected at a selection time by a purchaser of the card, the selection time being during a card purchase transaction during which the card is purchased by the purchaser, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the selection time, wherein the personal identification data are transmitted no earlier than a starting time of the card purchase transaction, and wherein the personal identification data are for verifying validity of a use of the card for a card transaction.

72. In a method for activating a prepaid card, the improvement comprising receiving personal identification data selected at a selection time by a purchaser of the card, the selection time being during a card purchase transaction during which the card is purchased by the purchaser, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the selection time, wherein the personal identification data are received at a receipt time which is no earlier than a starting time of the card purchase transaction, and wherein the personal identification data are for verifying an identity of an authorized user of the card.

73. In a method for processing a prepaid card, the improvement comprising the steps of:

receiving first personal identification data selected at a selection time by a purchaser of the card, the selection time being during a card purchase transaction during which the card is purchased by the purchaser, wherein the card is devoid of a functioning personal identification number after a card issuance time which is earlier than the selection time;

activating the card at a time which is no earlier than a starting time of the step of receiving the first personal identification data;

storing the first personal identification data to thereby enable verification of an authorized user of the card;

receiving, by an agent, the card and an item having a purchase price;

receiving second personal identification data;

receiving data indicative of the purchase price; and

verifying that the second personal identification data corresponds to the first personal identification data.