Method and system for handling returned prepaid payment cards

• US 8,290,832 B2
• Filed: 06/04/2007
• Issued: 10/16/2012
• 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): AN, IG TAI
• Application Number:
  US11/757,983
• Publication Number:
  US 20080301011A1
• Time in Patent Office: 1,961 Days
• Field of Search: 705/30, 705/28, 705/406, 705/410
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/407 Cancellation of a transaction
• CPC Class Codes: G06Q 30/00 Commerce
• CPC Class Codes: G07F 7/06 by returnable containers , i.e. reverse vending systems in which a user is rewarded for returning a container that serves as a token of value, e.g. bottles

Abstract

A method and system for handling returned prepaid device in a payment system. In one embodiment, upon receipt of a returned prepaid device corresponding to a consumer'"'"'s account, a method indicates in the consumer'"'"'s account that an address of the consumer is invalid; and determines whether the device should be stored in order to possibly re-send the device to the consumer if a new valid consumer address is received, or to destroy the device and refund the purchaser.

Claims

1. A method for handling a returned prepaid device, comprising:

receiving at a bank, a payment card company, or a payment card processor, a returned prepaid device;

indicating, by a computer associated with the bank, the payment card company, or the payment card processor, in the consumer'"'"'s account that an address of a cardholder who is an intended recipient of the returned prepaid device is invalid;

determining by the computer associated with the bank, the payment card company, or the payment card processor, whether to store or destroy the received returned prepaid device based on an option chosen by the consumer at a purchase time of the returned prepaid device;

upon a determination to store the returned prepaid device, storing the returned prepaid device; and

upon a determination that the returned prepaid device is stored less than a predetermined number of days, obtaining an updated address from the consumer and resending the returned prepaid device to the updated address; and

upon a determination to destroy the returned prepaid device, closing the consumer'"'"'s account and crediting funds to an original load source.

2. The method of claim 1, wherein determining whether to store or destroy the returned prepaid device is based on a plurality of predetermined configuration parameters.

3. The method of claim 1, further comprising activating a field in a display indicating that the address of the cardholder is invalid.

4. The method of claim 1, further comprising alerting a consumer service representative that the address of the cardholder is invalid.

5. The method of claim 1, further comprising:

receiving an updated address from the consumer; and

indicating in the consumer'"'"'s account that the updated address of the cardholder is valid.

6. The method of claim 1, wherein the cardholder is the consumer and the returned prepaid device is a payment card.

14. The method of claim 1 wherein the bank, payment card company or payment card processor is an entity that sent the returned prepaid card to the cardholder.

15. The method of claim 1 wherein the prepaid device is a phone, key fob, personal digital assistant, pager, smart media, or transponder.

16. The method of claim 5 wherein indicating in the consumer'"'"'s account that the updated address of the cardholder is valid includes using a status indicator.

17. The method of claim 1, upon a determination to store the prepaid device, further comprising:

indicating in the consumer'"'"'s account that the prepaid device is being stored.

18. The method of claim 1, upon a determination to destroy the returned prepaid device, further comprising:

indicating in the consumer'"'"'s account that the prepaid device is to be destroyed.

19. The method of claim 5 further comprising sending the returned prepaid device to the updated address.

20. The method of claim 19 further comprising indicating in the consumer'"'"'s account that the prepaid device has been sent.

21. The method of claim 1 wherein upon determination that the returned prepaid device is stored more than a predetermined number of days, indicating in the consumer'"'"'s account that the prepaid device is to be destroyed.

22. The method of claim 1 wherein the returned prepaid device is returned to the bank, payment card company, or payment card processor, from a postal service.

7. An article of manufacture comprising:

a computer useable medium having a computer readable program code embodied therein, the computer readable program code adapted to be executed to implement a method comprising;

indicating in a consumer'"'"'s account that an address of a cardholder who is an intended recipient of a returned prepaid device is invalid upon receipt of the returned prepaid device by a bank, a payment card company, or a payment card processor that sent the returned prepaid device corresponding to the consumer'"'"'s account; and

determining whether to store or destroy the returned prepaid device by the bank, the payment card company, or the payment card processor based on an option chosen by the consumer at a purchase time of the returned prepaid device;

upon a determination to store the returned prepaid device, storing the returned prepaid device;

upon a determination that the returned prepaid device is stored less than a predetermined number of days, obtaining an updated address from the consumer and resending the returned prepaid device to the updated address; and

upon a determination to destroy the returned prepaid device, closing the consumer'"'"'s account, and

crediting funds to an original load source address.

8. The article of manufacture of claim 7, further comprising activating a field in a display indicating that the address of the cardholder is invalid.

9. The article of manufacture of claim 7, further comprising alerting a consumer service representative that the address of the cardholder is invalid.

10. The article of manufacture of claim 7, further comprising:

receiving an updated address from the consumer; and

indicating in the consumer'"'"'s account that the updated address of the cardholder is valid.

11. The article of manufacture of claim 7, wherein the cardholder is the consumer and the returned prepaid device is a payment card.

23. The article of manufacture of claim 7, wherein determining whether to store or destroy the returned prepaid device is based on a plurality of predetermined configuration parameters.

12. A computer comprising:

a processor; and

a computer readable medium coupled to the processor, wherein the computer readable medium comprise code executable by the processor, the computer readable medium comprising;

code for indicating in an account of a consumer associated with a returned prepaid device that an address of a cardholder who is an intended recipient of the returned prepaid device is invalid, wherein the indication is made upon receipt of the returned prepaid device by a bank, a payment card company, or a payment card processor that sent the returned prepaid device; and

code for determining whether to store or destroy the returned prepaid device by the bank, the payment card company, or the payment card processor based on an option chosen by the consumer at a purchase time of the returned prepaid device,

code for upon a determination of the option chosen by the consumer at a purchase time of the returned prepaid device that the returned prepaid device is store the returned prepaid device, storing the returned prepaid device;

code for upon a determination of the option chosen by the consumer at a purchase time of the returned prepaid device that the returned prepaid device is stored less than a predetermined number of days, obtaining an updated address from the consumer and resending the returned prepaid device to the updated address; and

code for upon a determination of the option chosen by the consumer at a purchase time of the returned prepaid device that the returned prepaid device is to destroy the returned prepaid device, closing the consumer'"'"'s account and crediting funds to an original load source.

13. A method of processing a returned prepaid device, comprising:

receiving at a bank, a payment card company, or a payment card processor, a returned prepaid device, placing an indicator of an returned/undeliverable status, by a computer associated with the bank, the payment card company, or the payment card processor, in a consumer'"'"'s account, wherein the returned/undeliverable status indicates that a mailing address of a cardholder is invalid; and

determining, by the computer associated with the bank, the payment card company, or the payment card processor, whether to store or destroy the returned prepaid card based on an option selected by the consumer at a purchase time of the returned prepaid device, wherein the option was selected from a plurality of options;

upon a determination of the option chosen by the consumer at a purchase time of the returned prepaid device that the returned prepaid device is store the returned prepaid device, storing the returned prepaid device;

upon a determination of the option chosen by the consumer at a purchase time of the returned prepaid device that the returned prepaid device is stored less than a predetermined number of days, obtaining an updated address from the consumer and resending the returned prepaid device to the updated address; and

upon a determination of the option chosen by the consumer at a purchase time of the returned prepaid device that the returned prepaid device is to destroy the returned prepaid device, closing the consumer'"'"'s account and crediting funds to an original load source.

24. The method of claim 13, wherein the plurality of options comprises:

an option of destroying the returned prepaid device and refunding a balance on the returned prepaid device to an original load source; and

an option of storing the returned prepaid card for a specified number of days, destroying the returned prepaid card upon expiration of the specified number of days, and refunding the balance on the returned prepaid device to the original load source upon expiration of the specified number of days.