Sponsor funded stored value card

• US 6,615,190 B1
• Filed: 02/09/2000
• Issued: 09/02/2003
• Est. Priority Date: 02/09/2000
• Status: Expired due to Term

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: Bank One Delaware National Association (JP Morgan Chase & Co)
• Inventors: Slater, Kim Michele
• Primary Examiner(s): Millin, Vincent
• Assistant Examiner(s): Kyle, Charles R.
• Application Number:
  US09/500,690
• Time in Patent Office: 1,301 Days
• Field of Search: 705/41, 705/39, 705/40
• 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 20/20 Point-of-sale [POS] network systems
• 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 method and system for issuing a sponsor funded stored value card. A sponsor company funds an account associated with the stored value card. The stored value card is issued to a cardholder, who can withdraw funds from the account, but cannot deposit additional funds in the account. A sponsor funded stored value card may reduce expenses and difficulties associated with written checks.

Claims

1. A method for issuing a stored value card affiliated with a predetermined credit network, an organization sponsor, and an issuer, wherein the credit network, the issuer, and the organization sponsor each have separate identification indicia, the method comprising:

creating one account associated with the stored value card, wherein the organization sponsor funds the account and the account is independent and unassociated with any other account; and

issuing the stored value card to a cardholder, wherein;

a) the cardholder is unable to fund the account;

b) the stored value card is marked with the cardholder'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia, and the organization sponsor identification indicia;

c) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

d) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

2. The method according to claim 1, wherein the cardholder activates the stored value card.

3. The method according to claim 2, wherein the stored value card is active for a predetermined period of time.

4. The method according to claim 1, wherein the sponsor funds the account on a periodic basis.

5. The method according to claim 1, wherein the organization sponsor funds the card more than once.

6. The method according to claim 1, wherein the organization sponsor receives records regarding account transactions.

7. The method according to claim 1, further comprising the step of notifying the issuer that the cardholder has received the stored value card.

8. The method according to claim 7, further comprising the step of the issuer notifying the organizational sponsor that the stored value card has been received by the cardholder.

9. The method according to claim 1, wherein the issuer and the organization sponsor are the same entity.

10. The method according to claim 1, further comprising the step of designating merchants where the stored value card may be used, wherein:

a) the designated merchants are related to the business of the organization sponsor; and

b) the designated merchants accept cards associated with the credit network.

21. The method according to claim 1, wherein the organization sponsor is a business.

11. A system for issuing a stored value card affiliated with a predetermined credit network, an organization sponsor and an issuer, wherein the credit network, and the issuer, and the sponsor each have separate identification indicia, the system comprising:

means for creating one account associated with the stored value card, wherein the organization sponsor funds the account and the account is independent and unassociated with any other account; and

means for issuing the stored value card to a cardholder, wherein;

a) the cardholder is unable to fund the account;

b) the stored value card is marked with the cardholder'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia and the organization sponsor identification indicia;

c) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

d) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

12. The system according to claim 11, wherein the cardholder activates the stored value card.

13. The system according to claim 12, wherein the stored value card is active for a predetermined period of time.

14. The system according to claim 11, wherein the sponsor funds the account on a periodic basis.

15. The system according to claim 11, wherein the organization sponsor funds the card more than once.

16. The system according to claim 11, further comprising means for recording account activity.

17. The system according to claim 11, further comprising means for notifying the issuer that the cardholder has received the stored value card.

18. The system according to claim 17, further comprising means for the issuer to notify the organization sponsor that the stored value card has been received by the cardholder.

19. The system according to claim 11, wherein the issuer and the organization sponsor are the same entity.

20. The system according to claim 11, further comprising means for designating merchants where the stored value card may be used, wherein:

a) the designated merchants are related to the business of the organization sponsor; and

b) the designated merchants accept cards associated with the credit network.

22. The system according to claim 11, wherein the organization sponsor is a business.

23. A method for issuing a stored value card affiliated with a predetermined credit network, an organization sponsor, and an issuer network, wherein the credit network, the issuer, and the organization sponsor each have separate identification indicia, the method comprising:

creating one account associated with the stored value card, wherein the organization sponsor funds the account and receives records regarding account transactions, and the account is independent and unassociated with any other account;

issuing the stored value card to an employee of the organization sponsor, wherein;

a) the employee is unable to fund the account;

b) the stored value card is marked with the employee'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia, and the organization sponsor identification indicia;

c) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

d) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network; and

receiving a designation of merchants where the stored value card may be used to make purchases in the course of the organization sponsor'"'"'s purpose, wherein;

a) the designated merchants are related to the purpose of the organization sponsor; and

b) the designated merchants accept cards associated with the predetermined credit network.

24. The method according to claim 23, wherein the employee activates the stored value card.

25. The method according to claim 23, wherein the organization sponsor funds the card more than once.

26. The method according to claim 23, further comprising the step of notifying the issuer that the employee has received the stored value card.

27. The method according to claim 24, wherein the stored value card is active for a predetermined period of time.

28. The method according to claim 23, wherein the organization sponsor is a business.

29. A system for issuing a stored value card affiliated with a predetermined credit network, an organization sponsor and an issuer, wherein the credit network, and the issuer, and the organization sponsor each have separate identification indicia, the system comprising:

means for creating one account associated with the stored value card, wherein the organization sponsor funds the account and receives records regarding account transactions, and the account is independent and unassociated with any other account;

means for issuing the stored value card to a an employee of the business sponsor, wherein;

a) the employee is unable to fund the account;

b) the stored value card is marked with the cardholder'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia and the organization sponsor identification indicia;

c) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

d) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network;

means for recording account activity; and

means for designating merchants where the stored value card may be used to make purchases in the course of the organization sponsor'"'"'s business, wherein;

a) the designated merchants are related to the purpose of the organization sponsor; and

b) the designated merchants accept cards associated with the predetermined credit network.

30. The system according to claim 29, wherein the employee activates the stored value card.

31. The system according to claim 29, wherein the organization sponsor funds the card more than once.

32. The system according to claim 29, further comprising means for notifying the issuer that the employee has received the stored value card.

33. The system according to claim 29, wherein the stored value card is active for a predetermined period of time.

34. The system according to claim 29, wherein the organization sponsor is a business.

35. A method for issuing a stored value card affiliated with a predetermined credit network, an employer, and an issuer, wherein the credit network, the issuer, and the employer each have separate identification indicia, the method comprising:

creating one account associated with the stored value card, wherein the employer funds the account on a periodic basis corresponding to the employer'"'"'s payroll cycle, and the account is independent and unassociated with any other account; and

issuing the stored value card to an employee, wherein;

a) the employee is unable to fund the account;

b) the employer is unable to access transactions associated with the stored value card;

c) the stored value card is marked with the employee'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia, and the employer'"'"'s identification indicia;

d) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

e) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

36. The method according to claim 35, wherein the employee activates the stored value card.

37. The method according to claim 36, wherein the stored value card is active for as long as the employee remains employed by the employer.

38. The method according to claim 35, further comprising the step of notifying the issuer that the employee has received the stored value card.

39. The method according to claim 38, further comprising the step of the issuer notifying the employer that the stored value card has been received by the employee.

40. The method according to claim 35, wherein the issuer and the employer are the same entity.

41. The system according to claim 37, wherein the issuer and the sponsor are the same entity.

42. The system according to claim 37, wherein the stored value card is active for a predetermined period of time.

43. A system for issuing a stored value card affiliated with a predetermined credit network, an employer and an issuer, wherein the credit network, and the issuer, and the employer each have separate identification indicia, the system comprising:

means for creating one account associated with the stored value card, wherein the employer funds the account on a periodic basis corresponding to the employer'"'"'s payroll cycle, and the account is independent and unassociated with any other account; and

means for issuing the stored value card to an employee, wherein;

a) the employee is unable to fund the account;

b) the employer is unable to access transactions associated with the stored value card;

c) the stored value card is marked with the employee'"'"'s name and at least one of the credit network identification indicia, the issuer identification indicia and the employer'"'"'s identification indicia;

d) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted; and

e) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

44. The system according to claim 43, wherein the cardholder activates the stored value card.

45. The system according to claim 43, further comprising means for notifying the issuer that the cardholder has received the stored value card.

46. The system according to claim 45, further comprising means for the issuer to notify the sponsor that the stored value card has been received by the cardholder.

47. A method for issuing a stored value card affiliated with a predetermined credit network, an employer, and an issuer, the method comprising:

creating one account associated with the stored value card, wherein the employer funds the account on a periodic basis, and the account is independent and unassociated with any other account; and

issuing the stored value card to an employee, wherein;

a) the employee is unable to fund the account;

b) the employer is unable to access transactions associated with the stored value card;

c) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted;

d) the employee activates the stored value card; and

e) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

48. The method according to claim 47, further comprising the step of notifying the issuer that the employee has received the stored value card.

49. The method according to claim 48, further comprising the step of the issuer notifying the employer that the stored value card has been received by the employee.

50. A system for issuing a stored value card affiliated with a predetermined credit network, an employer and an issuer, the system comprising:

means for creating one account associated with the stored value card, wherein the employer funds the account on a periodic basis, and the account is independent and unassociated with any other account; and

means for issuing the stored value card to an employee, wherein;

a) the employee is unable to fund the account;

b) the employer is unable to access transactions associated with the stored value card;

c) the stored value card is accepted wherever cards associated with the predetermined credit network are accepted;

d) the employee activates the stored value card; and

e) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined credit network.

51. The system according to claim 50, further comprising means for notifying the issuer that the employee has received the stored value card.

52. The system according to claim 51, further comprising means for the issuer to notify the employer that the stored value card has been received by the employee.