System, non-transitory memory with computer program, and associated methods for micro-credit to prepaid cards

• US 8,190,480 B1
• Filed: 01/12/2012
• Issued: 05/29/2012
• Est. Priority Date: 04/04/2008
• Status: Active Grant

• Current Assignee: Pathward National Association
• Original Assignee: MetaBank (Meta Financial Group Incorporated)
• Inventors: Ahlers, Rebecca, Crowe, Andrew B., Galit, Scott H., Sorbe, Trent
• Primary Examiner(s): Gart, Matthew
• Assistant Examiner(s): Goyea, Olusegun
• Application Number:
  US13/349,423
• Publication Number:
  US 20120116960A1
• Time in Patent Office: 138 Days
• Field of Search: 705/16, 705/17, 705/38, 705/40, 705/37, 705/35
• 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 20/20 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 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 lending institution computer establishes a line of credit coupled to a prepaid card account and makes available draws to the line of credit line in an authorization stream for a proposed purchase using the prepaid card account as payment. When the line of credit is accessed, the prepaid card account is loaded with an additional value of one or more predetermined loan increments so that the prepaid card account 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. Next, a new value for a line of credit balance available is determined, accounting for value loaded onto the prepaid card account and a predetermined loan advance fee for each loan increment loaded onto the prepaid card account.

Claims

1. A financial institution computer to allow one or more draws to a line of credit coupled to one or more of a plurality of prepaid card accounts, the financial institution computer comprising:

one or more processors;

one or more input/output units;

non-transitory memory encoded with computer program operable by the one or more processors so that during operations thereof, a financial institution computer operates to perform the following steps;

establishing a line of credit coupled to one or more of a plurality of prepaid card accounts in a first process, the line of credit having a total credit limit and to be drawn in one or more of a plurality of separate predetermined loan increments each being equal in value and less than the total credit limit;

determining a number of separate predetermined loan increments to be drawn from the line of credit in a second process so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments plus a value associated with the one or more of the plurality of prepaid card accounts exceeds a value of a proposed purchase by less than the value of one of the plurality of separate predetermined loan increments; and

releasing draws from the line of credit in the determined number of separate predetermined loan increments in a third process to thereby define drawn predetermined increments when the drawn predetermined increments and a total value of a 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 a predetermined loan advance fee multiplied by the number of separate predetermined loan increments.

2. A financial institution computer as defined in claim 1, the financial institution computer further being operable to perform the following step:

determining, by the financial institution computer, a new value of the line of credit balance available in a fourth process, the new value being a previous value of the line of credit balance available minus the drawn predetermined increments and minus the total value of the predetermined loan advance fee.

3. A financial institution computer as defined in claim 1, the financial institution computer further operable to perform the following step:

determining, by the financial institution computer, a new value of a line of credit balance in a fourth process, the new value being a previous value of the line of credit balance plus the drawn predetermined increments plus the total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being less than the drawn predetermined increments.

4. A financial institution computer as defined in claim 2, wherein the line of credit is configured to have a preauthorized individual loan limit, and wherein the releasing of the draws from the line of credit is responsive to the drawn predetermined increments not exceeding the preauthorized individual loan limit.

5. A financial institution computer as defined in claim 4, the financial institution computer further operable to perform the following step:

repaying, by the financial institution computer, at least a first portion of the new value of the line of credit balance associated with the drawn predetermined increments in a fifth process responsive to receiving one or more automatic deposits or a portion thereof for a benefit of a prepaid card user associated with the one or more of the plurality of prepaid card accounts, and

wherein the determining a number of separate predetermined increments being responsive to receipt of data indicating that the value of the proposed purchase associated with one or more of the plurality of prepaid card accounts is greater than a value associated with the one or more one of the plurality of the prepaid card accounts.

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

7. A financial institution computer as defined in claim 5, wherein the data is received from a prepaid card processor associated with the one or more of the plurality of prepaid card accounts, the prepaid card processor being adapted to process a plurality of transactions associated with the one or more of the plurality of prepaid accounts, and wherein draws from the line of credit are released to the prepaid card processor.

8. Non-transitory memory encoded with computer program comprising a set of instructions operable by a financial institution computer, the financial institution computer operable to perform the following steps:

establishing a line of credit coupled to one or more of a plurality of prepaid card accounts in a first process, the line of credit having a total credit limit and to be drawn in one or more of a plurality of separate predetermined loan increments each being equal value and less than the total credit limit;

determining a number of separate predetermined loan increments to be drawn from the line of credit in a second process so that the number of separate predetermined loan increments multiplied by the value of one of the plurality of separate predetermined loan increments plus a value associated with the one or more of the plurality of prepaid card accounts exceeds a value of a proposed purchase by less than the value of one of the plurality of separate predetermined loan increments; and

releasing draws from the line of credit in the determined number of separate predetermined loan increments in a third process to thereby define drawn predetermined increments when the drawn predetermined increments and a total value of a 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 a predetermined loan advance fee multiplied by the number of separate predetermined loan increments.

9. Non-transitory memory as defined in claim 8, the financial institution computer further being operable to perform the following step:

determining, by the financial institution computer, a new value of the line of credit balance available in a fourth process, the new value being a previous value of the line of credit balance available minus the drawn predetermined increments and minus the total value of the predetermined loan advance.

10. Non-transitory memory as defined in claim 8, the financial institution computer further being operable to perform the following step:

determining, by the financial institution computer, a new value of a line of credit balance in a fourth process, the new value being a previous value of the line of credit balance plus the drawn predetermined increments plus the total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being less than the drawn predetermined increments.

11. Non-transitory memory as defined in claim 8, wherein the line of credit is configured to have a preauthorized individual loan limit, and wherein the releasing of the draws from the line of credit is responsive to the drawn predetermined increments not exceeding the preauthorized individual loan limit.

12. Non-transitory memory as defined in claim 11, the financial institution computer further operable to perform the following step:

repaying, by the financial institution computer, at least a first portion of the new value of the line of credit balance associated with the drawn predetermined increments in a fifth process responsive to receiving one or more automatic deposits or a portion thereof for a benefit of a prepaid card user associated with the one or more of the plurality of prepaid card accounts; and

wherein the second process of determining the number of separate predetermined loan increments is responsive to receipt of data by the financial institution computer indicating that the value of the proposed purchase associated with one or more of the plurality of prepaid card accounts is greater than the value associated with the one or more one of the plurality of the prepaid card accounts.

13. Non-transitory memory as defined in claim 12, 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 memory as defined in claim 12, wherein the data is received from a prepaid card processor associated with the one or more of the plurality of prepaid card accounts, the prepaid card processor adapted to process a plurality of transactions associated with the one or more of the plurality of prepaid accounts;

and wherein draws from the line of credit are released to the prepaid card processor.

15. A computer-implemented method to allow draws from a line of credit in or more of a plurality of separate predetermined loan increments, the computer-implemented method comprising the steps of:

establishing, by a computer associated with a financial institution to define a financial institution computer, a line of credit coupled to one or more of a plurality of prepaid card accounts, the line of credit having a total credit limit and to be drawn in one or more of a plurality of separate predetermined loan increments each being equal value and less than the total credit limit;

determining a number of separate predetermined loan increments to be drawn from the line of credit 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 one or more of the plurality of prepaid card accounts exceeds a value of a proposed purchase by less than the value of one of the plurality of separate predetermined loan increments; and

releasing draws by the financial institution computer from the line of credit in the determined number of separate predetermined loan increments to thereby define drawn predetermined increments when the drawn predetermined increments and a total value of a 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 a predetermined loan advance fee multiplied by the number of separate predetermined loan increments.

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

determining, by the financial institution computer, a new value of the line of credit balance available, the new value being a previous value of the line of credit balance available minus the drawn predetermined increments and minus the total value of the predetermined loan advance.

17. A computer-implemented method as defined in claim 15, further comprising the step of:

determining, by the financial institution computer, a new value of a line of credit balance, the new value being a previous value of the line of credit balance plus the drawn predetermined increments plus the total value of the predetermined loan advance fee, the total value of the predetermined loan advance fee being less than the drawn predetermined increments.

18. A computer-implemented method as defined in claim 15, wherein the line of credit is configured to have a preauthorized individual loan limit, and wherein the releasing of the draws from the line of credit is responsive to the drawn predetermined increments not exceeding the preauthorized individual loan limit.

19. A computer-implemented method as defined in claim 15, further comprising the step of:

repaying, by the financial institution computer, at least a first portion of the new value of the line of credit balance associated with the drawn predetermined increments responsive to receiving one or more automatic deposits or a portion thereof for a benefit of a prepaid card user associated with the one or more of the plurality of prepaid card accounts; and

wherein determining the number of separate predetermined loan increments is responsive to receipt of data by the financial institution computer indicating that the value of the proposed purchase associated with one or more of the plurality of prepaid card accounts is greater than the value associated with the one or more one of the plurality of the prepaid card accounts.

20. A computer-implemented method as defined in claim 19, wherein the data is received from a prepaid card processor associated with the one or more of the plurality of prepaid card accounts, the prepaid card processor adapted to process a plurality of transactions associated with the one or more of the plurality of prepaid accounts;

and wherein draws from the line of credit are released to the prepaid card processor.