System and processes for dispensing value to cardholder in response to an authorization over an electric data network

• US 7,707,048 B1
• Filed: 02/10/2001
• Issued: 04/27/2010
• Est. Priority Date: 02/10/2000
• Status: Active Grant

• Current Assignee: Fidelity Information Services, LLC (Fidelity National Information Services Incorporated)
• Original Assignee: Efunds Corporation (Fidelity National Information Services Incorporated)
• Inventors: Kohl, Donald
• Primary Examiner(s): Frenel; Vanel
• Application Number:
  US09/780,890
• Time in Patent Office: 3,363 Days
• Field of Search: 705/4, 705/26, 705/34, 235/380, 235/379
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/04 Billing or invoicing
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

An insurance payment distribution system is disclosed for distributing data representative of money from a central station to selected individuals to be used at selected locations. The system includes a plurality of distribution payment cards and a remote card processing unit. The distribution payment cards are useable at the selected locations. Each payment card is capable of receiving information representative of a certain amount of money, and is capable of receiving information representative of permitted locations at which the each card may be used. The remote card processing unit is in communication with a computer network including a central computer system. The remote card processing unit is for modifying the information receivable on the cards responsive to information received via the computer network.

Claims

1. A method for distributing insurance payments using claim cards using a system which includes a remote card processing unit in communication with a computer network and a central computer, each claim card having a claim card account associated therewith, the method comprising:

transferring funds to a claim card account in settlement of a claim of an insured party using the central computer via the computer network,

defining one or more permitted locations of use of a claim card associated with the claim card account,

distributing the claim card to the insured party,

receiving a request from the remote card processing unit via the computer network for authorization for an attempted purchase by the insured party using the claim card,

using the central computer, determining whether an amount of the attempted purchase is less than or equal to an available balance of the claim card account,

using the central computer, determining whether the attempted purchase is at a permitted location defined for the claim card account,

using the central computer, authorizing the attempted purchase if the amount of the attempted purchase is less than or equal to the available balance of the claim card account and the attempted purchase is at a permitted location, and

transferring funds from the claim card account via the computer network to pay for an authorized purchase.

2. The method of claim 1, further including computing an updated available balance for the claim card account using the central computer after an authorized purchase.

3. The method of claim 1, wherein the one or more permitted locations are stores that are categorized by the type of merchandise that they sell.

4. The method of claim 1, wherein the one or more permitted locations are merchants identified by name.

5. The method of claim 1, further including determining using the central computer whether a merchant category code at which the attempted purchase occurs is valid.

6. The method of claim 1, further including determining using the central computer whether a card verification value associated with the claim card is valid.

7. The method of claim 1, further including determining using the central computer whether a PIN input by the insured party is valid.

8. The method of claim 1, wherein the claim card is capable of receiving and storing information representative of an amount of money.

9. The method of claim 8, wherein the claim card is capable of receiving and storing information representative of permitted locations at which the claim card may be used.

10. The method of claim 1, further including declining the attempted purchase via the computer network if not at a permitted location.

11. A method for distributing insurance payments using claim cards using a system which includes a remote card processing unit in communication with a computer network and a central computer, each claim card having a claim card account associated therewith, the method comprising:

transferring funds to a claim card account in settlement of a claim using the central computer via the computer network, wherein the funds are distributed among a plurality of purses included in the claim card account such that each purse has a corresponding balance,

distributing a claim card associated with the claim card account to a corresponding insured party,

receiving a request from the remote card processing unit via the computer network for authorization for an attempted purchase by the insured party using the claim card,

using the central computer, determining whether one or more purses are available to fund the attempted purchase, including determining whether an amount of the attempted purchase is less than or equal to the balance of an available purse or the combined balance of more than one available purse,

using the central computer, determining whether an available purse has a permitted location use restriction, and if so, determining whether the attempted purchase passes the permitted location use restriction,

using the central computer, authorizing the purchase if one or more purses are available to fund the attempted purchase and the attempted purchase passes the permitted location use restriction, and

transferring funds from the claim card account via the computer network to pay for an authorized purchase.

12. The method of claim 11 further including calculating an updated balance for any affected purse after an authorized purchase using the central computer.

13. The method of claim 11, wherein a permitted location use restriction includes limiting the usage of funds to one or more predetermined merchants.

14. The method of claim 13, wherein the one or more predetermined merchants are defined by a merchant category code.

15. The method of claim 13, wherein the one or more predetermined merchants are defined by a merchant number.

16. The method of claim 11, wherein a permitted location use restriction includes limits on cash and ATM usage.

17. The method of claim 11, further including validation edits of the authorization request using the central computer.

18. The method of claim 11, wherein a validation edit includes verification of a PIN number input by the insured party.

19. A method for using stored value cards, using a system which includes a remote card processing unit in communication with a computer network and a central computer, each stored value card having a stored value card account associated therewith, the method comprising:

transferring funds to a stored value card account using the central computer via the computer network, wherein the funds are distributed among a plurality of purses included in the stored value card account such that each purse has a corresponding balance,

distributing a stored value card associated with the stored value card account to a user,

receiving a request from the remote card processing unit via the computer network for authorization for any attempted purchase by the user using the stored value card,

using the central computer, determining whether one or more purses are available to fund the attempted purchase, including determining whether an amount of the attempted purchase is less than or equal to the balance of an available purse or the combined balance of more than one available purse,

using the central computer, determining whether an available purse has a permitted location use restriction, and if so, determining whether the attempted purchase passes the permitted location use restriction,

using the central computer, authorizing the purchase if one or more purses are available to fund the attempted purchase and the attempted purchase passes the permitted location use restriction, and

transferring funds from the stored value card account via the computer network to pay for an authorized purchase.

20. The method of claim 19, wherein a permitted location use restriction include limiting the usage of funds to one or more predetermined merchants.