Methods and systems for processing, accounting, and administration of stored value cards

• US 7,797,233 B2
• Filed: 08/27/2004
• Issued: 09/14/2010
• Est. Priority Date: 01/30/2002
• Status: Active Grant

• Current Assignee: Card Compliant, LLC
• Original Assignee: Store Financial Services LLC (EML Payments Ltd.)
• Inventors: Sobek, Michael F.
• Primary Examiner(s): Colbert; Ella
• Assistant Examiner(s): OJIAKU, CHIKAODINAKA
• Application Number:
  US10/927,684
• Publication Number:
  US 20050080728A1
• Time in Patent Office: 2,209 Days
• Field of Search: 705/39, 713/153, 709/246
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

Methods are described for accounting, administration and processing of transactions utilizing a stored value card utilizing an EFT service gateway and providing balances for the cards across a plurality of point of sale devices. One method includes receiving a message generated by the point of sale system of a merchant and parsing the message into data elements. The method also includes routing the message through a switch controller to an account holder database based on an institution ID and a branch ID, accessing an account within the database utilizing the account key, and determining if an account holder'"'"'s monetary balance in the account is greater than or equal to the transaction amount. A message is formatted and one of an authorization approval or a denial based upon the determination is transmitted within the message.

Claims

1. A system for stored value card transactions, said system comprising:

a gateway into a bank card payments network that includes an ISO 8583 electronic funds transfer service; and

an account holder database including at least a bank identification number, an institution ID, and a branch ID, said system further configured to;

receive, at said gateway, a transaction message requesting an authorization or denial and remaining account balance data, on an individual transaction associated with said account holder database originally generated by a point of sale system of a retail merchant;

parse the transaction message into a series of data elements representing at least a transaction amount, a transaction type, a merchant ID, a bank identification number, an institution ID, a branch ID, and an account identifier;

route the message from said gateway through a switch controller to access said account holder database, the message routed based on one or more of the bank identification number, the institution ID and the branch ID;

access an account within the database utilizing the account identifier;

determine if an account holder'"'"'s monetary account balance in the accessed account dictates approval or denial of the transaction based upon the transaction type and the transaction amount within the parsed message and calculation of the remaining monetary account balance in the accessed account if the transaction is approved;

create an authorization response message based on the determination, for transmission to the point of sale system via said gateway, the authorization response message including at least a unique alpha numeric string representing the monetary account balance for the accessed account, the unique alphanumeric string within an authorization identification response field of the authorization response message, the content of the alpha numeric string based on data within a separate ISO-8583 data field, and an approval or denial of the transaction; and

transmit the authorization response message to the point of sale system for at least one of display of the unique alpha numeric string at the point of sale system and printing of the unique alphanumeric string on a receipt generated by the point of sale system as the point of sale system is currently configured.

2. The system according to claim 1 wherein the transaction messages are ISO-8583 compatible.

3. The system according to claim 1 wherein the transaction type comprises at least one of a deposit, a withdrawal, a transfer, and an account balance inquiry.

4. The system according to claim 1, said system further configured to:

treat the transaction type as an account balance inquiry when the account holders'"'"' monetary account balance is determined to be less than a point of sale transaction amount;

select a response code for declining the authorization request;

create a unique alpha-numeric string representing the monetary account balance of the accessed account or a text message describing the reason for declining the transaction;

format the message to include the unique alphanumeric string or the text message;

transmit the message, including the authorization denial response code, to the gateway where it is routed to the originating merchant point of sale device; and

display the unique alphanumeric string or text message, representing the current account balance or reason for decline at the point of sale and on a receipt generated by the point of sale system.

5. The system according to claim 1 further configured to:

treat the transaction type as an account balance inquiry when a point of sale transaction amount is equal to a predetermined value;

format the message to include the unique alphanumeric string;

transmit the message, including the authorization approval response code to the gateway where it is routed to the originating merchant point of sale device; and

display of the unique alphanumeric string representing the current account balance at the point of sale and on a receipt generated by the point of sale system.

6. The system according to claim 1, said system further configured to transmit the messages to the originating merchant point of sale device via the bank card payment network.

7. The system according to claim 1 further configured to:

treat the transaction type as a balance inquiry when the account holders'"'"' monetary account balance is less than one dollar, and is determined to be less than the point of sale transaction amount;

select a response code for decline of the authorization request and create a unique alphanumeric string representing the monetary account balance of the accessed account to include the characters “

CENT”

inserted into the alphanumeric string following the characters indicative of the remaining account balance; and

format the message to include the unique alphanumeric string;

transmit the message, including the authorization decline response code to the gateway where it is routed to the originating merchant point of sale device; and

display of the unique alphanumeric string representing the current account balance at the point of sale and on a receipt generated by the point of sale system.

8. The system according to claim 1 further configured to:

treat the transaction type as a balance inquiry when the account holders'"'"' monetary account balance is zero, and is determined to be less than the point of sale transaction amount;

select a response code for decline of the authorization request and create a unique alphanumeric string representing the monetary account balance of the accessed account to include the characters “

1 EMPTY”

inserted into the alphanumeric string; and

format the message to include the unique alphanumeric string;

transmit the message, including the authorization decline response code to the gateway where it is routed to the originating merchant point of sale device; and

display of the unique alphanumeric string representing the current account balance at the point of sale and on a receipt generated by the point of sale system.

9. The system according to claim 1 further configured to charge one or more account maintenance fees against an outstanding account balance of a stored value card.

10. The system according to claim 9 wherein to charge the account maintenance fees, said system is configured with state compliance policies relating to the charging of account maintenance fees.

11. The system according to claim 1 configured to validate that the merchant ID exists within a merchant database assigned to a stored value card.

12. The system according to claim 11 configured to:

decline an attempted transaction when the merchant ID is not included in the merchant database; and

generate a fraudulent transaction report.

13. The system according to claim 1 configured to calculate an automatic hold amount to be added to a transaction amount received from a merchant.

14. The system according to claim 13 further configured to reduce the transaction amount requested for authorization by the calculated hold amount.

15. The system according to claim 1, wherein for a transaction amount that is negative, said system is configured to add a credit to the stored value card.

16. The system according to claim 1 wherein said system is configured to group merchant IDs in a merchant database according to one or more of merchant affiliation and shopping center affiliation, said system configured to accept the stored value card for transactions based on the groupings within the merchant database.

17. The system according to claim 1 wherein said system is configured to provide account balance information to a user utilizing one or more of a public telephone network, a wireless telephone network, and the Internet.

18. The system according to claim 1 wherein at least one of the data elements includes data relating to a language selection by a user, the transaction data being configured in the selected language.

19. The system according to claim 1 further configured to provide reports including one or more of a summary of the daily stored value card transactions, end of day card activation transactions, daily redemptions and transactions completed at individual merchant locations, and a merchant redemption summary by property.

20. The system according to claim 1 further configured to balance deposits relating to collected stored value card funds against outstanding balances of new and historically funded stored value cards.

21. The system according to claim 20 configured to ensure that the requests for payments authorized and approved match the funds requested by debit and credit card processors to pay the participating merchants.