Method, apparatus, and computer program product for topping up prepaid payment cards for offline use

• US 8,341,084 B2
• Filed: 06/08/2009
• Issued: 12/25/2012
• Est. Priority Date: 06/08/2009
• Status: Active Grant

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Cowen, Michael J.
• Primary Examiner(s): NIQUETTE, ROBERT R
• Application Number:
  US12/480,060
• Publication Number:
  US 20100312617A1
• Time in Patent Office: 1,296 Days
• Field of Search: None
• US Class Current: 705/41
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• 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

Abstract

A card holder carries out an initial top-up of a balance of a pre-paid payment card. The prepaid payment card is configured for use in an infrastructure in accordance with a payment specification requiring different behavior for normal transactions in the infrastructure versus that required for topping-up of the balance. Contemporaneously with the initial top-up, the card holder registers risk mitigation information in association with the pre-paid payment card. Subsequent to the initial top-up, an indicator is written to the pre-paid payment card during a transaction with the pre-paid payment card outside the infrastructure. The indicator identifies the pre-paid payment card as having the risk mitigation information associated therewith. During subsequent presentation of the pre-paid payment card to the infrastructure, the pre-paid payment card is treated as a token backed up by the risk mitigation information, based on presence of the indicator on the pre-paid payment card.

Claims

1. A method for enhancing the functionality of a pre-paid payment card configured for use in an infrastructure in accordance with a payment specification requiring different procedures for normal transactions using said pre-paid payment card in the infrastructure versus that required for topping-up of a balance associated with said prep-paid payment card, comprising the steps of:

registering risk mitigation information in association with said pre-paid payment card contemporaneously with an initial top-up of the pre-paid payment card;

subsequent to said initial top-up and registration of the risk mitigation information, conducting an online transaction with said pre-paid payment card outside said infrastructure;

downloading an indicator to an electronic memory of the pre-paid payment card while conducting the online transaction, the indicator identifying the pre-paid card as having said risk mitigation information associated therewith;

presenting said pre-paid payment card to a reader within said infrastructure, and

conducting an offline transaction based upon detection by the reader of the indicator in the electronic memory of the pre-paid payment card.

2. The method of claim 1, wherein:

said infrastructure comprises normal access terminals of a transit system, said normal access terminals including contactless readers;

further including conducting a contacted transaction to effect the initial top-up,

presenting the pre-paid payment card to one of the contactless readers, and

gaining access to the transit system based upon detection of the indicator by the reader.

3. The method of claim 2, wherein said risk mitigation information comprises personal contact information.

4. The method of claim 2, wherein said risk mitigation information comprises a backup funding source.

5. The method of claim 4, wherein said backup funding source comprises one of a credit card account and a debit card account accessible via a payment processing network.

6. The method of claim 1, wherein said initial top-up is carried out using a card-not-present transaction for said one of a credit card account and a debit card account.

7. The method of claim 2, wherein said offline transaction includes gaining access to the transit system without deducting funds directly from said pre-paid payment card.

8. The method of claim 7, further including the step of effectuating back-office payment by debiting a central balance associated with said pre-paid payment card.

9. The method of claim 7, wherein said risk mitigation information comprises a backup funding source and further including effectuating back-office payment by accessing said backup funding source.

10. The method of claim 8, wherein said step of effectuating said back-office payment is conducted upon expiration of a predetermined period.

11. The method of claim 7, further comprising effecting payment from a backup funding source upon expiration of a predetermined period.

12. The method of claim 7, wherein said offline transaction includes offline decisioning based on presence of said indicator, with one of:

no further checking; and

reduced checking, as compared to checking carried out for cards not having said indicator.

13. The method of claim 12, wherein said gaining of said access comprises opening a fare gate.

14. The method of claim 10, wherein said predetermined period comprises a predetermined number of transactions.

15. The method of claim 14, wherein said predetermined number of transactions is one.

16. The method of claim 14, wherein said predetermined number of transactions is greater than one.

17. The method of claim 10, wherein said predetermined period comprises a predetermined aggregation time period.

18. The method of claim 2, wherein said indicator is under control of an issuer of said pre-paid payment card, wherein the step of downloading the indicator further comprises downloading content of a transmission from the issuer over a payment network.

19. The method of claim 18, wherein, in said step of downloading the indicator is effected at a pre-existing retail point of sale terminal outside of said transit system.

20. The method of claim 2, further comprising the additional step of:

providing a system, wherein said system comprises distinct software modules, each of said distinct software modules being embodied on at least one tangible computer-readable recordable storage medium, and wherein said distinct software modules comprise a payment platform module, an issuer module, and an infrastructure terminal module;

wherein;

said step of registering said risk mitigation information contemporaneously with the initial top-up is carried out by said payment platform module executing upon said at least one infrastructure server;

said step of downloading said indicator to said pre-paid payment card during said transaction outside said infrastructure is carried out by said issuer module executing on an issuer host; and

said step of conducting the offline transaction is carried out by said infrastructure terminal module executing on at least one infrastructure terminal.

21. An apparatus comprising:

means for effecting an initial top-up of a balance of a pre-paid payment card, said prepaid payment card being configured for use in an infrastructure in accordance with a payment specification requiring different procedures for normal transactions in said infrastructure versus that required for topping-up of said balance;

means for, contemporaneously with said initial top-up, effecting registration of risk mitigation information in association with said pre-paid payment card;

means for, subsequent to said initial top-up, writing an indicator to said pre-paid payment card during an online transaction with said pre-paid payment card outside said infrastructure, said indicator identifying said pre-paid payment card as having said risk mitigation information associated therewith; and

means for, during subsequent presentation of said pre-paid payment card to said infrastructure, processing said pre-paid payment card offline as a token backed up by said risk mitigation information, based on presence of said indicator on said pre-paid payment card.

22. An apparatus comprising:

a memory; and

at least one processor, coupled to said memory, and operative to;

effect an initial top-up of a balance of a pre-paid payment card, said prepaid payment card being configured for use in an infrastructure in accordance with a payment specification requiring different procedures for normal transactions in said infrastructure versus that required for topping-up of said balance;

contemporaneously with said initial top-up, effect registration of risk mitigation information in association with said pre-paid payment card;

subsequent to said initial top-up, write an indicator to said pre-paid payment card during an online transaction with said pre-paid payment card outside said infrastructure, said indicator identifying said pre-paid payment card as having said risk mitigation information associated therewith; and

during subsequent presentation of said pre-paid payment card to said infrastructure, process said pre-paid payment card as a token backed up by said risk mitigation information, based on presence of said indicator on said pre-paid payment card.

23. The apparatus of claim 22, wherein said at least one processor comprises a first processor, a second processor, and a third processor, further comprising:

distinct software modules, each of said distinct software modules being embodied on at least one tangible computer-readable recordable storage medium, and wherein said distinct software modules comprise a payment platform module, an issuer module, and an infrastructure terminal module;

wherein;

said first processor is operative to effect said initial top-up of said balance of said pre-paid payment card by executing said payment platform module;

said first processor is operative to effect registration of said risk mitigation information by executing said payment platform module;

said second processor is operative to write said indicator to said pre-paid payment card during said online transaction outside said infrastructure by executing said issuer module; and

said third processor is operative to process said prepaid payment card offline as a token by executing said infrastructure terminal module.

24. A computer program product comprising at least one tangible computer readable recordable storage medium including computer usable program code, said computer program product including:

computer usable program code for enabling a card holder to carry out an initial top-up of a balance of a pre-paid payment card, said prepaid payment card being configured for use in an infrastructure in accordance with a payment specification requiring different procedures for normal transactions in said infrastructure versus that required for topping-up of said balance;

computer usable program code for, contemporaneously with said initial top-up, enabling said card holder to register risk mitigation information in association with said pre-paid payment card;

computer usable program code for, subsequent to said initial top-up, writing an indicator to said pre-paid payment card during an online transaction with said pre-paid payment card outside said infrastructure, said indicator identifying said pre-paid payment card as having said risk mitigation information associated therewith; and

computer usable program code for, during subsequent presentation of said pre-paid payment card to said infrastructure, processing said pre-paid payment card as a token backed up by said risk mitigation information, based on presence of said indicator on said pre-paid payment card.

25. The computer program product of claim 24, wherein said computer program product comprises distinct software modules, each of said distinct software modules being embodied on said at least one tangible computer-readable recordable storage medium, and wherein said distinct software modules comprise a payment platform module, an issuer module, and an infrastructure terminal module;

wherein;

said payment platform module comprises;

said computer usable program code for, contemporaneously with said initial top-up, enabling said card holder to register said risk mitigation information in association with said pre-paid payment card;

said payment platform module being configured to execute upon an infrastructure server;

said issuer module comprises said computer usable program code for, subsequent to said initial top-up, writing said indicator to said pre-paid payment card during said online transaction with said pre-paid payment card outside said infrastructure, said issuer module being configured to execute upon an issuer host; and

said infrastructure terminal module comprises said computer usable program code for, during subsequent presentation of said pre-paid payment card to said infrastructure, processing said pre-paid payment card as said token backed up by said risk mitigation information, based on said presence of said indicator on said pre-paid payment card, said infrastructure terminal module being configured to execute on at least one infrastructure terminal.

26. A system comprising:

an infrastructure comprising one or more first terminals including contactless readers;

a pre-paid payment card configured for use in the infrastructure in accordance with a payment specification requiring different procedures for normal transactions using the pre-paid payment card versus that required for topping-up of a card balance;

a central server storing the card balance;

a payment platform configured for registration of risk mitigation information relating to the holder of the pre-paid payment card;

a second terminal outside the infrastructure configured to facilitate online contact transactions with the pre-paid payment card;

an issuer host server configured to communicate with the second terminal and the payment platform, the issuer host server being further configured to initiate writing an indicator reflecting registration of the risk mitigation information at the payment platform to the pre-paid payment card during a transaction with the second terminal;

the one or more first terminals being configured to read the pre-paid payment card, process the pre-paid payment card as a token if it includes the indicator, and to make an offline decision to allow a transaction with the pre-paid payment card based at least in part on the presence of the indicator.

27. The system of claim 26, wherein the pre-paid payment card is EMV compliant, the payment specification requires a contact transaction for top-up and contactless normal transactions, and wherein the payment platform is further configured to process card-not-present top-up of the card balance in the central server contemporaneously with registration of risk mitigation information.

28. The system of claim 27, wherein the risk mitigation information comprises a backup account accessible via a payment network.

29. The system of claim 26, wherein the one or more first terminals are configured to process the pre-paid payment card as a token by:

refraining from deducting funds directly from the pre-paid payment card upon making the offline decision to allow the transaction;

recording details of use of said pre-paid payment card, including use of said pre-paid payment card during the transaction, for a predetermined period, and

effectuating back-office payment via said backup account for said predetermined period.

30. A method for enhancing the functionality of a pre-paid payment card configured for use in an infrastructure in accordance with a payment specification requiring a contactless procedure for normal transactions at a terminal within the infrastructure and an online contact transaction for top-up of the pre-paid payment card, comprising:

topping up a balance stored on a central server associated with the pre-paid payment card during an online contact transaction;

contemporaneously with topping up the balance of the pre-paid payment card, registering a backup payment account in association with the pre-paid payment card;

conducting a contact transaction outside the infrastructure following the registration of the backup payment account during which an indicator transmitted by an issuer host is downloaded onto an electronic memory within the pre-paid payment card,

conducting a contactless transaction in the infrastructure using the pre-paid payment card following downloading of the indicator onto the electronic memory of the pre-paid payment card, causing details of the transaction to be recorded within the infrastructure without effecting immediate payment for the contactless transaction and offline allowance of the contactless transaction based at least in part on the presence of the indicator.

31. The method of claim 30, wherein the pre-paid payment card is an EMV compliant card.

32. The method of claim 30, further including the step of effecting payment from the backup account following a predetermined period after the contactless transaction.

33. The method of claim 30, further including the step of accepting funds into the central server during the online top-up transaction.

34. The method of claim 30, further including the step of opening a fare gate responsive to said offline allowance.