System and method for issuing negotiable instruments by licensed money transmitter from direct deposits
First Claim
1. In a payment system of a licensed money transmitter computer system operative to maintain data, records indicative of an amount of funds associated with an individual, the licensed money transmitter computer system maintaining a network of agent terminals at various locations for disbursing funds to authorized recipients, an improvement for issuing a negotiable instrument corresponding to a predetermined direct deposit of funds on behalf of the individual, comprising:
- a transaction account maintained by the licensed money transmitter computer system, the transaction account being unauthorized to accept direct deposits of funds which are prevented by regulatory restrictions, wherein the funds in the transaction account are disbursable by said agent terminals, and wherein the transaction account is operable to be linked to an account maintained at a regulated financial institution and associated with the licensed money transmitter computer system, the licensed money transmitter computer system operable to receive direct deposits of funds on behalf of individuals not maintaining accounts at the financial institution;
the licensed money transmitter computer system being responsive to (a) a request for issuance of a negotiable instrument of a predetermined amount and (b) the electronic notification of the direct deposit of funds swept into the transaction account, for issuing a prepaid cash card in an amount equal to or less than the amount of the direct deposit, the prepaid cash card bearing identifying information associated with the individual and a personal identifying number (PIN), for use in making financial transactions from the transaction account based on the direct deposit of funds to the financial institution,whereby an individual bearing the prepaid cash card may obtain funds and/or instruct that payments be made of the directly deposited funds by presentation of the prepaid cash card to an agent associated with the licensed money transmitter computer system, wherein anonymous transactions involving the transaction account may be effected upon presentation by the individual of the prepaid cash card and the PIN to an agent associated with the licensed money transmitter computer system; and
upon enrollment of the individual as a customer of the licensed money transmitter computer system, the prepaid cash card is converted into a regular cash card and enabled for use in connection with subsequent deposits of funds to the transaction account and further transactions.
6 Assignments
0 Petitions
Accused Products
Abstract
Systems and methods for issuing negotiable instruments by a non-bank entity such as a Licensed Money Transmitter, from direct deposits to a regulated financial institution. A customer arranges for direct deposit of funds to a regulated financial institution, such as a bank, that can receive direct deposits. When a direct deposit of funds into an account associated with the customer at the regulated financial institution is detected, the funds are swept into a second, transaction account maintained by the Licensed Money Transmitter. The customer requests issuance of a negotiable instrument from the Licensed Money Transmitter for withdrawing funds or directing that payments be made. The Licensed Money Transmitter, which maintains a network of agent terminals at various locations for disbursing funds to authorized recipients, is responsive to the request for a negotiable instrument for issuing a prepaid negotiable instrument or making payments for the benefit of the customer.
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Citations
2 Claims
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1. In a payment system of a licensed money transmitter computer system operative to maintain data, records indicative of an amount of funds associated with an individual, the licensed money transmitter computer system maintaining a network of agent terminals at various locations for disbursing funds to authorized recipients, an improvement for issuing a negotiable instrument corresponding to a predetermined direct deposit of funds on behalf of the individual, comprising:
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a transaction account maintained by the licensed money transmitter computer system, the transaction account being unauthorized to accept direct deposits of funds which are prevented by regulatory restrictions, wherein the funds in the transaction account are disbursable by said agent terminals, and wherein the transaction account is operable to be linked to an account maintained at a regulated financial institution and associated with the licensed money transmitter computer system, the licensed money transmitter computer system operable to receive direct deposits of funds on behalf of individuals not maintaining accounts at the financial institution; the licensed money transmitter computer system being responsive to (a) a request for issuance of a negotiable instrument of a predetermined amount and (b) the electronic notification of the direct deposit of funds swept into the transaction account, for issuing a prepaid cash card in an amount equal to or less than the amount of the direct deposit, the prepaid cash card bearing identifying information associated with the individual and a personal identifying number (PIN), for use in making financial transactions from the transaction account based on the direct deposit of funds to the financial institution, whereby an individual bearing the prepaid cash card may obtain funds and/or instruct that payments be made of the directly deposited funds by presentation of the prepaid cash card to an agent associated with the licensed money transmitter computer system, wherein anonymous transactions involving the transaction account may be effected upon presentation by the individual of the prepaid cash card and the PIN to an agent associated with the licensed money transmitter computer system; and upon enrollment of the individual as a customer of the licensed money transmitter computer system, the prepaid cash card is converted into a regular cash card and enabled for use in connection with subsequent deposits of funds to the transaction account and further transactions.
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2. A computer-controlled negotiable instrument payment system for negotiable instrument transactions conducted by a particular individual based on the direct deposit of funds at a regulated financial institution at which the particular individual does not maintain an account, comprising:
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a computer system operated by a licensed money transmitter computer system that maintains a network of agent terminals; a data communications interface associated with the computer system for data communications with a transaction system of the financial institution; an account sweep control module run by the computer system responsive to a notification received via the data communications interface from the financial institution indicating the direct deposit of funds in a predetermined deposit amount into an account at the financial institution for; communicating a debit posting message indicating the predetermined deposit amount to the financial institution transaction system, and crediting the predetermined deposit amount to a transaction account maintained by the licensed money transmitter computer system for the benefit of the individual associated with the deposit; and a transaction control module run by the computer system and operative, in response to a request from a requesting source for issuance of a cash card in a predetermined amount for a particular individual to use in transactions associated with the transaction account, for; determining whether the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount; in response to a determination that the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount, communicating an authorization for issuance of the cash card in the requested predetermined amount to an agent terminal; and in response to the receipt from the agent terminal of a notification indicating the issuance of the cash card in the requested predetermined amount, posting a debit of the requested predetermined amount; wherein the cash card is an anonymous cash card bearing an account number and a personal identifying number (PIN), and wherein anonymous transactions involving the transaction account may be effected upon presentation by the individual of the cash card and the PIN to an agent associated with the licensed money transmitter computer system; and wherein the anonymous cash card is converted into a regular cash card and enabled for use in connection with subsequent deposits of funds to the transaction account and further transactions upon enrollment of the individual as a customer of the licensed money transmitter computer system.
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Specification