Systems, methods, and devices for selling transaction instruments

• US 7,243,839 B2
• Filed: 01/14/2005
• Issued: 07/17/2007
• Est. Priority Date: 03/12/2004
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC), General Counsel's Office
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Keiser, Steven J., Page, Clyde, Miller, Sven, Martinez, Paula S., Imada, Jon Steven, Feldman, Gennye, Beck, Randall G.
• Primary Examiner(s): St.Cyr, Daniel
• Application Number:
  US10/905,663
• Publication Number:
  US 20050199705A1
• Time in Patent Office: 914 Days
• Field of Search: 235/380, 235/375, 235/379, 235/381, 235/382, 235/385, 235/487, 235/492, 235/493
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

The present invention generally relates to a system and method for distributing an open transaction instrument. The system includes the steps of: accessibly offering for sale, in a retail environment, the open transaction instrument; selling a selected open transaction instrument; and enabling the use of the open transaction instrument. The transaction instrument may be, for example, an open pre-paid card. Furthermore, accessibly offering the open pre-paid card for sale, in one exemplary embodiment, is performed by hanging the pre-paid card on a rack. The distribution of the open transaction instrument may also comprise the step of sending a message, in substantially real time, causing the pre-paid open transaction instrument to be funded but not activated. Also, in accordance with further exemplary embodiments of the present invention, an issuer system is suitably configured to leverage existing infrastructure for inventory and related processes.

Claims

1. A method for distributing an open transaction instrument, in a retail environment, comprising the steps of:

offering the open transaction instrument to a consumer, wherein the open transaction instrument is directly accessible by the consumer, wherein the open transaction instrument is configured to be generally accepted by merchants that are not directly affiliated with each other, and wherein the open transaction instrument does not require use of a personal identification number (PIN), wherein the open transaction instrument is associated with a transaction account, and wherein the open transaction instrument comprises a pre-paid card that is accepted at a plurality of merchants that are not directly affiliated with each other;

allowing the consumer to obtain the open transaction instrument;

facilitating the funding of the open transaction instrument;

visibly displaying a serialized number on the open transaction instrument; and

associating a randomized card number with the pre-paid card.

2. The method of claim 1, further comprising packaging the pre-paid card, wherein the packaging step conceals the randomized card number and displays the serialized number printed on the prepaid card.

3. A method of distributing a transaction instrument comprising the steps of:

receiving sales confirmation data associated with said transaction instrument;

causing a transaction account associated with said transaction instrument to have a monetary amount that will be available when said transaction instrument is activated;

associating a serialized number with said transaction instrument and associating a randomized card number with said transaction instrument; and

,

activating said transaction account at a time subsequent to the time when said transaction account is caused to have said monetary amount.

4. The method of claim 3, wherein said transaction instrument comprises a pre-paid open transaction instrument.

5. The method of claim 3, wherein said transaction instrument comprises a pre-paid open transaction instrument, wherein said method further comprises the step of activating said pre-paid open transaction instrument, and wherein said activating step further comprises the step of using an automated activation system.

6. The method of claim 3 further comprising the steps of visibly displaying said serialized number on said transaction instrument.

7. The method of claim 3, wherein said transaction instrument comprises a pre-paid open card.

8. The method of claim 3, wherein said transaction instrument comprises a pre-paid open card, wherein said card is packaged, and wherein said packaging conceals said randomized card number and displays said serialized number printed on said pre-paid open card.

9. The method of claim 3 further comprising the steps of:

utilizing a pre-existing inventory and financial settlement system to process said transaction instrument, wherein said transaction instrument comprises a pre-paid open card, wherein said card is packaged, and wherein said packaging conceals said randomized card number and displays said serialized number.

10. A method for facilitating distribution of an open transaction instrument through a distributor, the method comprising the steps of:

issuing an open transaction instrument to the distributor;

receiving information from the distributor, wherein said information is related to the distribution of the open transaction instrument, and facilitates the funding of a transaction account, associated with the open transaction instrument, upon distribution;

activating the distributed transaction instrument after distribution via an interactive voice response system, wherein the transaction instrument is an open pre-paid card, and wherein the distributor is a merchant, the method further comprising the stops of;

associating a first number with the open pre-paid card, wherein the first number is suitably configured to conform to a Travelers Check infrastructure, wherein the first number comprises, at least in part, a serial number, wherein the open pre-paid card is one of a plurality of open pre-paid cards, and wherein the plurality of cards are consigned to the merchant in groups with each card identified respectively by the serial number; and

associating a second number with the card, wherein said second number is a randomized account number.

11. A system for facilitating distribution of an open transaction instrument through a distributor comprising:

an open transaction instrument issuing system configured to issue said open transaction instrument to a distributor, wherein said open transaction instrument issuing system is configured to receive a Fund/Init signal and, based on said Fund/Init signal, to cause a transaction account associated with said open transaction instrument to have a monetary amount that will be available when said transaction instrument is activated, wherein the open transaction instrument is configured to be generally accepted by merchants that are not directly affiliated with each other, and wherein the open transaction instrument does not require use of a personal identification number (PIN); and

a distributor system configured to distribute said open transaction instrument and to communicate with said open transaction instrument issuing system, wherein said communication facilitates causing said transaction account to have said monetary amount, wherein said open transaction instrument is associated with a first number and a second number, and wherein said first number comprises, at least in part, a serialized number.

12. The system of claim 11, wherein said open transaction instrument is associated with a first number and a second number, and wherein said first number comprises a serial number, wherein said distributor system is a merchant system that is configured to communicate information related to said distribution of said transaction instrument to said transaction instrument issuing system;

and wherein said information is configured for processing via a pre-existing inventory and financial settlement processing infrastructure which operates using serial number logic.

13. The system of claim 11, wherein said open transaction instrument is an open pre-paid card and wherein a monetary amount is associated with said open pre-paid card no earlier than the sale of said open pre-paid card by the distributor.

14. A method for facilitating distribution of an open transaction instrument through a distributor, the method comprising the steps of:

issuing an open transaction instrument to the distributor; and

receiving information from the distributor, wherein said information is related to the distribution of the open transaction instrument, and facilitates the funding of a transaction account, associated with the open transaction instrument, upon distribution;

wherein the receiving information step comprises receiving information related to the distribution of a first retail sale package containing a first transaction instrument, wherein the first retail sale package is associated with a second retail sate package containing a second transaction instrument, wherein the first retail sale package and the second retail sale package comprise a distribution group, and wherein the information identifies a location of a sale of the first retail sale package; and

wherein the method further comprises associating the location of the sale of the first retail sale package with the second retail sale package to facilitate determining the location of the second retail sale package in an inventory system.