System, program product, and associated methods to autodraw for micro-credit attached to a prepaid card

• US 8,069,085 B2
• Filed: 04/02/2009
• Issued: 11/29/2011
• Est. Priority Date: 12/21/2007
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Sorbe, Trent, Ahlers, Rebecca, Crowe, Andrew B., Galit, Scott H.
• Primary Examiner(s): Gart; Matthew
• Assistant Examiner(s): Goyea; Olusegun
• Application Number:
  US12/417,211
• Publication Number:
  US 20090254443A1
• Time in Patent Office: 971 Days
• Field of Search: 705/38, 705/64, 705/30, 705/35, 705/2, 705/44, 705/17, 705/37, 705/40, 705/16, 705/26.81
• US Class Current: 705/17
• 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 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• 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 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0236 Incentive or reward received by requiring registration or ID from user
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A prepaid card processor receives data for a line of credit for a prepaid card from a lending institution computer. The prepaid card processor makes available draws to the line of credit line on behalf of the lending institution computer in an authorization stream for a proposed purchase using the prepaid card as payment. When the line of credit is accessed, the processor loads the prepaid card with an additional value equal to one or more preselected loan increments so that the prepaid card then has a new amount totaling a previous amount plus the amount of value of the one or more preselected loan increments and so that the new amount exceeds or equals the value of a proposed purchase. Then the processor notifies the lending institution so that the line of credit balances on the lending institution computer and the prepaid card processor are kept in sync.

Claims

1. A system to allow a prepaid card user to access a line of credit coupled to a prepaid card account when using a prepaid card, the system comprising:

a first computer associated with a plurality of prepaid card accounts defining a prepaid card processor, the prepaid card processor configured to control access to the plurality of prepaid card accounts and communicate with a second computer associated with a lending institution defining a lending institution computer through an electronic communications network; and

non-transitory computer memory encoded with computer program operable on the prepaid card processor, computer program comprising;

a first computer program to facilitate extending a line of credit coupled to at least one of the plurality of prepaid card accounts defining an incremental line of credit interface module, the incremental line of credit interface module comprising the instructions of;

associating a line of credit identifier with at least one of the plurality of prepaid card accounts responsive to receiving line of credit data from the lending institution computer to thereby couple the at least one of the plurality of prepaid card accounts to a line of credit adapted to be drawn in at least one of a plurality of separate predetermined loan increments and established by the lending institution computer, the line of credit data including the following;

a value of one of the plurality of separate predetermined loan increments, a predetermined loan advance fee, and a total credit limit,

a second computer program to allow one or more draws to the line of credit coupled to at least one of the plurality of prepaid card accounts in one or more of the plurality of separate predetermined loan increments when using a prepaid card, the second computer program defining an incremental line of credit dispensing module and comprising the instructions of;

processing, by the prepaid card processor, transaction data associated with a proposed purchase to thereby determine when a prepaid card associated with the at least one of the plurality of the prepaid card accounts is being used as payment for the proposed purchase and when a value of the proposed purchase is greater than a value associated with the at least one of the plurality of the prepaid card accounts,

determining, by the prepaid card processor responsive to the value of the proposed purchase being greater than the value associated with the at least one of the plurality of the prepaid card accounts, a number of separate predetermined loan increments to be added to the value associated with at least one of the plurality of the prepaid card accounts so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments plus the value associated with the at least one of the plurality of prepaid card accounts exceeds the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments,

loading, by the prepaid card processor, the at least one of the plurality of the prepaid card accounts with at least one of the plurality of separate predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define loaded predetermined increments when the loaded predetermined increments and a total value of the predetermined loan advance fee corresponding thereto collectively do not exceed a line of credit balance available, the total value of the predetermined loan advance fee being equal to the predetermined loan advance fee multiplied by the number of separate predetermined loan increments and being less than a value of the loaded predetermined increments,

approving, by the prepaid card processor, the proposed purchase,

deducting, by the prepaid card processor, the value of the proposed purchase from the value associated with the at least one of the plurality of the prepaid card accounts, the difference between the value of the proposed purchase and the value associated with the prepaid card account being no greater than the value of one of the plurality of separate predetermined loan increments, each of the plurality of separate predetermined loan increments being equal in value, and

notifying, by the prepaid card processor, the lending institution computer of the loaded predetermined increments to the at least one of the plurality of prepaid card accounts.

2. A system as defined in claim 1, computer program further comprising a third computer program to repay the loaded predetermined increments defining an incremental line of credit repayment module, the incremental line of credit repayment module comprising the instructions of:

repaying, by the prepaid card processor, at least a first portion of a line of credit balance responsive to one or more automatic deposits being available to the prepaid card processor for a benefit of a prepaid card user and prior to being made available to the prepaid card user, the difference between the line of credit balance minus the first portion of the line of credit balance repaid being define as an unpaid balance, and

deducting, by the prepaid card processor, from the value associated with the at least one of the plurality of the prepaid card accounts a second portion of the line of credit balance responsive to the unpaid balance remaining outstanding for a predetermined amount of time.

3. A system as defined in claim 1, wherein the incremental line of credit dispensing module further comprising:

updating line of credit data stored on the prepaid card processer, including the line of credit balance available, the loaded predetermined increments, and the total value of the predetermined loan advance fee, and

synchronizing the line of credit data stored on the prepaid processor computer and a line of credit data stored on the lending institution computer.

4. A system as defined in claim 1, wherein the line of credit data further includes a preauthorized individual loan limit, and wherein the loading the at least one of the plurality of prepaid accounts is responsive to the predetermined loan increments not exceeding the preauthorized individual loan limit, and wherein the transaction data is received from a card reader device associated with a point of sale terminal.

5. A system as defined in claim 2, wherein the first portion of the line of credit balance repaid includes at least the total value of the predetermined loan advance fee.

6. A system as defined in claim 1, wherein the difference between the value of the purchase and the value associated with the prepaid card account being no greater than the value of one of the plurality of separate predetermined loan increments and being loaded to the at least one of the plurality of the prepaid card accounts without generating additional fees other than the total value of the predetermined loan advance fee for at least a predetermined amount of time, and wherein the value of the purchase includes adjustments for one or more of the following:

coupons, discounts, instant rebates, and sales tax, wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations, and wherein the line of credit is bank product so that the line of credit complies with federal Regulation Z.

7. A system as defined in claim 1, wherein the prepaid card processor is further configured to communicate with a plurality of payroll processors associated with a plurality of employers, the plurality of payroll processors configured to deposit a plurality of automatic deposits to the plurality of prepaid card accounts, and wherein the value of the at least one of the plurality of prepaid card accounts prior to loading the loaded predetermined increments include at least a portion of at least one of the plurality of automatic deposits from at least one of the plurality of payroll processors.

8. A system as defined in claim 1, wherein the lending institution computer is further configured to communicate with a plurality of depository institutions computers associated with a plurality of depository institutions, the plurality of depository institutions computers configured to deposit a plurality of automatic deposits to the plurality of prepaid card accounts associated with the lending institution, and wherein the value of the at least one of the plurality of prepaid card accounts prior to loading the loaded predetermined increments include at least a portion of at least one of the plurality of automatic deposits from at least one of the plurality deposit institution computers.

9. Non-transitory computer memory encoded with computer program to allow a prepaid card user to access a line of credit coupled to a prepaid card account when using a prepaid card, computer program operable on a computer configured to control access to a plurality of prepaid card accounts defining a prepaid card processor and to communicate with a second computer associated with a lending institution defining a lending institution computer, computer program comprising:

a first computer program to facilitate extending the line of credit coupled to at least one of the plurality of prepaid card accounts defining an incremental line of credit interface module, the incremental line of credit interface module comprising the instructions of;

associating a line of credit identifier with at least one of the plurality of prepaid card accounts responsive to receiving line of credit data from the lending institution computer to thereby couple the at least one of the plurality of prepaid card accounts to a line of credit adapted to be drawn in at least one of a plurality of separate predetermined loan increments and established by the lending institution computer, the line of credit data including the following;

a value of one of the plurality of separate predetermined loan increments, a predetermined loan advance fee, and a total credit limit,

a second computer program to allow one or more draws to the line of credit coupled to at least one of the plurality of prepaid card accounts in one or more of the plurality of separate predetermined loan increments when using a prepaid card, the second computer program defining an incremental line of credit dispensing module and comprising the instructions of;

processing, by the prepaid card processor, transaction data associated with a proposed purchase to thereby determine when a prepaid card associated with the at least one of the plurality of the prepaid card accounts is being used as payment for the proposed purchase and when a value of the proposed purchase is greater than a value associated with the at least one of the plurality of the prepaid card accounts,

determining, by the prepaid card processor responsive to the value of the proposed purchase being greater than the value associated with the at least one of the plurality of the prepaid card accounts, a number of separate predetermined loan increments to be added to the value associated with at least one of the plurality of the prepaid card accounts so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments plus the value associated with the at least one of the plurality of prepaid card accounts exceeds the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments,

loading, by the prepaid card processor, the at least one of the plurality of the prepaid card accounts with at least one of the plurality of separate predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define loaded predetermined increments when the loaded predetermined increments and a total value of the predetermined loan advance fee corresponding thereto collectively do not exceed a line of credit balance available, the total value of the predetermined loan advance fee being equal to the predetermined loan advance fee multiplied by the number of separate predetermined loan increments and being less than a value of the loaded predetermined increments,

approving, by the prepaid card processor, the proposed purchase,

deducting, by the prepaid card processor, the value of the proposed purchase from the value associated with the at least one of the plurality of the prepaid card accounts, the difference between the value of the proposed purchase and the value associated with the prepaid card account being no greater than the value of one of the plurality of separate predetermined loan increments, each of the plurality of separate predetermined loan increments being equal in value, and

notifying, by the prepaid card processor, the lending institution computer of the loaded predetermined increments to the at least one of the plurality of prepaid card accounts.

10. Non-transitory computer memory as defined in claim 9, computer program further comprising a third computer program to repay the loaded predetermined increments defining an incremental line of credit repayment module, the incremental line of credit repayment module comprising the instructions of:

repaying, by the prepaid card processor, at least a first portion of a line of credit balance responsive to one or more automatic deposits being available to the prepaid card processor for a benefit of a prepaid card user and prior to being made available to the prepaid card user, the difference between the line of credit balance minus the first portion of the line of credit balance repaid being define as an unpaid balance, and

deducting, by the prepaid card processor, from the value associated with the at least one of the plurality of the prepaid card accounts a second portion of the line of credit balance responsive to the unpaid balance remaining outstanding for a predetermined amount of time.

11. Non-transitory computer memory as defined in claim 9, wherein the incremental line of credit dispensing module further comprising:

updating line of credit data stored on the prepaid card processer, including the line of credit balance available, the loaded predetermined increments, and the total value of the predetermined loan advance fee, and

synchronizing the line of credit data stored on the prepaid processor computer and a line of credit data stored on the lending institution computer responsive to notifying the lending institution computer of the loaded predetermined increments.

12. Non-transitory computer memory as defined in claim 9, wherein the line of credit data further includes a preauthorized individual loan limit, and wherein the loading the at least one of the plurality of prepaid accounts is responsive to the predetermined loan increments not exceeding the preauthorized individual loan limit, and wherein the transaction data is received from a card reader device associated with a point of sale terminal.

13. Non-transitory computer memory as defined in claim 10, wherein the first portion of the line of credit balance repaid includes at least the total value of the predetermined loan advance fee.

14. Non-transitory computer memory as defined in claim 9, wherein the lending institution computer is further configured to communicate with a plurality of depository institutions computers associated with a plurality of depository institutions, the plurality of depository institutions computers configured to deposit a plurality of automatic deposits to the plurality of prepaid card accounts associated with the lending institution,

wherein the value of the at least one of the plurality of prepaid card accounts prior to loading the loaded predetermined increments include at least a portion of at least one of the plurality of automatic deposits from at least one of the plurality deposit institution computers,

wherein the difference between the value of the purchase and the value associated with the prepaid card account being no greater than the value of one of the plurality of separate predetermined loan increments and being loaded to the at least one of the plurality of the prepaid card accounts without generating additional fees other than the total value of the predetermined loan advance fee for at least a predetermined amount of time, and

wherein the value of the purchase includes adjustments for one or more of the following:

coupons, discounts, instant rebates, and sales tax, wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations, and wherein the line of credit is bank product so that the line of credit complies with federal Regulation Z.

15. A computer-implemented method to allow a prepaid card user to access a line of credit coupled to a prepaid card account when using a prepaid card, the computer-implemented method comprising:

associating, by a computer configured to control access to a plurality of prepaid card accounts to thereby define a prepaid card processor, a line of credit identifier with at least one of the plurality of prepaid card accounts responsive to receiving line of credit data to thereby couple the at least one of the plurality of prepaid card accounts to a line of credit adapted to be drawn in at least one of a plurality of separate predetermined loan increments, the line of credit being established by a second computer associated with lending institution defining a lending institution computer, the line of credit data including the following;

a value of one of the plurality of separate predetermined loan increments, a predetermined loan advance fee, and a total credit limit,

processing, by the prepaid card processor, transaction data associated with a proposed purchase to thereby determine when a prepaid card associated with the at least one of the plurality of the prepaid card accounts is being used as payment for the proposed purchase and when a value of the proposed purchase is greater than a value associated with the at least one of the plurality of the prepaid card accounts,

determining, by the prepaid card processor responsive to the value of the proposed purchase being greater than the value associated with the at least one of the plurality of the prepaid card accounts, a number of separate predetermined loan increments to be added to the value associated with at least one of the plurality of the prepaid card accounts so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments plus the value associated with the at least one of the plurality of prepaid card accounts exceeds the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments,

loading, by the prepaid card processor, the at least one of the plurality of the prepaid card accounts with at least one of the plurality of separate predetermined loan increments that corresponds with the number of separate predetermined loan increments to thereby define loaded predetermined increments when the loaded predetermined increments and a total value of the predetermined loan advance fee corresponding thereto collectively do not exceed a line of credit balance available, the total value of the predetermined loan advance fee being equal to the predetermined loan advance fee multiplied by the number of separate predetermined loan increments and being less than a value of the loaded predetermined increments

approving, by the prepaid card processor, the proposed purchase, and

deducting, by the prepaid card processor, the value of the proposed purchase from the value associated with the at least one of the plurality of the prepaid card accounts, the difference between the value of the proposed purchase and the value associated with the prepaid card account being no greater than the value of one of the plurality of separate predetermined loan increments, each of the plurality of separate predetermined loan increments being equal in value.

16. A computer-implemented method as defined in claim 15, wherein computer-implemented method further comprising:

repaying, by the prepaid card processor, at least a first portion of the new value of the line of credit balance responsive to at least one of the plurality of automatic deposits being available to the lending institution computer and prior to being made available to the prepaid card user, the difference between the new value of the line of credit balance minus the first portion of the new value of line of credit balance repaid being define as an unpaid balance, and

deducting, by the prepaid card processor, from the value associated with the at least one of the plurality of the prepaid card accounts a second portion of the line of credit balance responsive to the unpaid balance remaining outstanding for a predetermined amount of time.

17. A computer-implemented method as defined in claim 16, wherein the first portion of the new value of line of credit balance repaid includes at least the total value of the predetermined loan advance fee, and wherein the transaction data is received from a card reader device associated with a point of sale terminal.

18. A computer-implemented method as defined in claim 15, the method comprising:

updating line of credit data stored on the prepaid card processor, including the line of credit balance available, the loaded predetermined increments, and the total value of the predetermined loan advance fee, and

synchronizing the line of credit data stored on the prepaid processor computer and a line of credit data stored on the lending institution computer.

19. A computer-implemented method as defined in claim 15, wherein the line of credit data further includes a preauthorized individual loan limit, and wherein the loading the at least one of the plurality of prepaid accounts is responsive to the predetermined loan increments not exceeding the preauthorized individual loan limit.

20. A computer-implemented method as defined in claim 15, wherein the prepaid card processor is further configured to communicate with a plurality of depository institutions computers associated with a plurality of depository institutions, the plurality of depository institutions computers configured to deposit a plurality of automatic deposits to the plurality of prepaid card accounts associated with the lending institution, and wherein the value of the proposed purchase includes adjustments for one or more of the following:

coupons, discounts, instant rebates, and sales tax, and wherein the lending institution is a federally-chartered bank subject to federal banking laws and regulations and not subject to state banking laws and regulations, and wherein the line of credit is bank product so that the line of credit complies with federal Regulation Z.