Prepaid negative balance fee processing and fee diversion

• US 8,146,806 B2
• Filed: 06/04/2007
• Issued: 04/03/2012
• Est. Priority Date: 06/04/2007
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Monk, Justin T.
• Primary Examiner(s): TRAIL, ALLYSON NEEL
• Application Number:
  US11/757,914
• Publication Number:
  US 20080298569A1
• Time in Patent Office: 1,765 Days
• Field of Search: 235/380, 235/379, 705/35, 705/38, 705/39, 705/43
• 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 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: H04M 15/85 characterised by the type of condition triggering a notification
• CPC Class Codes: H04M 15/851 Determined tariff
• CPC Class Codes: H04M 15/852 Low balance or limit reached
• CPC Class Codes: H04M 17/00 Prepayment of wireline communication systems, wireless communication systems or telephone systems using a coded card to authorise calls from a telephone set H04M1/675
• CPC Class Codes: H04M 17/02 Coin-freed or check-freed systems , e.g. mobile- or card-operated phones, public telephones or booths
• CPC Class Codes: H04M 17/103 using SIMs (USIMs) or calling cards
• CPC Class Codes: H04M 17/106 using commercial credit or debit cards
• CPC Class Codes: H04M 2017/12 using calling, telephone credit/debit cards
• CPC Class Codes: H04M 2017/14 using commercial credit/debit cards, e.g. VISA, AMEX
• CPC Class Codes: H04M 2215/815 Notification when a specific condition, service or event is met
• CPC Class Codes: H04M 2215/8158 Low balance or limit reached

Abstract

Systems and methods are provided for a prepaid credit card processing system wherein components or entities such as the acquirer, issuer, or prepaid card processing network can dynamically determine, at the time of the transaction, whether a credit card transaction will be allowed—even where the fee associated with the transaction would cause the balance to fall below zero.

Claims

1. An apparatus for negative balance processing of a prepaid card, comprising:

a database for storing data related to a prepaid card account, and

a processing engine for determining that sufficient funds are available in the account for a transaction amount associated with a transaction but that sufficient funds are not available in the account for the transaction amount plus an associated fee, and selectively determining whether the transaction is allowed, disallowed, allowed with a partial fee or allowed with a fee diverted, the processing engine in communications with the database.

2. The apparatus of claim 1, wherein the database associates at least one fee criteria with cardholder account data.

3. The apparatus of claim 1, wherein the processing engine is configured to divert the fee to one or more accounts associated with the prepaid card account.

4. The apparatus of claim 1, wherein the processing engine is configured to dynamically adjust the fee based on an amount by which there are insufficient funds in the account for the transaction amount plus the fee.

5. A method for processing a prepaid card, comprising:

receiving transaction data from a transaction event associated with the prepaid card;

determining, using a processor operatively connected with a memory, that sufficient funds are available in a prepaid card account for a transaction amount associated with the transaction event but that sufficient funds are not available in the account for the transaction amount plus a fee associated with the transaction event; and

performing further processing based on the determination.

6. The method of claim 5, further comprising:

accessing card holder data related to the prepaid card from a database, the data comprising at least a card balance.

7. The method of claim 6, wherein the card holder balance triggers application of a fee criteria for negative balance processing.

8. A method of claim 5, wherein the transaction data comprises one or more of a transaction type, a card holder name, a card identification, a card identification that identifies a fee criteria associated with the card, a merchant name and a merchant identifier.

9. A method of claim 5, further comprising:

diverting the fee to one or more accounts associated with the prepaid card account.

10. A method of claim 5, further comprising:

dynamically adjusting the fee based on an amount by which there are insufficient funds in the account for the transaction amount plus the fee.

11. A method of claim 10, further comprising:

generating a report for lost/gained revenue based on the dynamic adjustment.