System, program product, and associated methods to autodraw for micro-credit attached to prepaid card

• US 8,452,662 B2
• Filed: 09/15/2011
• Issued: 05/28/2013
• 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): Goyea, Olusegun
• Application Number:
  US13/233,465
• Publication Number:
  US 20120005094A1
• Time in Patent Office: 621 Days
• Field of Search: 705/16, 705/17, 705/35, 705/38, 705/39, 705/40
• 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 prepaid card processor receives data for a line of credit for a prepaid card from a lending institution computer. The prepaid card processor makes available draws to the line of credit line on behalf of the lending institution computer in an authorization stream for a proposed purchase using the prepaid card as payment. When the line of credit is accessed, the processor loads the prepaid card with an additional value equal to one or more preselected loan increments so that the prepaid card 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. Then the processor notifies the lending institution so that the line of credit balances on the lending institution computer and the prepaid card processor are kept in sync.

Claims

1. A prepaid card processor associated with a plurality of prepaid accounts, the prepaid card processor comprising:

one or more central processing units (CPU) configured to process a plurality of transactions associated with the plurality of prepaid card accounts;

one or more input/output units to communicate with one or more remote computers; and

non-transitory computer memory encoded with computer program operable by the one or more CPU so that during operations thereof, the prepaid card processor is configured to perform the following steps;

determining, responsive to a value of a proposed purchase associated with one or more of the plurality of prepaid card accounts being greater than a value associated with the one or more of the plurality of the prepaid card accounts, a number of separate predetermined loan increments to be drawn from a line of credit coupled to the one or more of the plurality of prepaid card accounts, the number of separate predetermined loan increments multiplied by a value of one of the plurality of separate predetermined loan increments plus the value associated with one or more of the plurality of prepaid card accounts exceeding the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments;

loading the one or more of the plurality of prepaid card accounts with draws from the line of credit in the number of separate predetermined loan increments to thereby define loaded predetermined increments responsive to receiving the draws from the line of credit; and

deducting the value of the proposed purchase from the value associated with the one or more of the plurality of the prepaid card accounts, the difference between the value of the proposed purchase and the value associated with the one or more of the plurality of prepaid card accounts being no greater than the value of one of the plurality of separate predetermined loan increments, each of the plurality of separate predetermined loan increments being equal in value.

2. A prepaid card processor as defined in claim 1, the prepaid card processor further configured to perform the step of:

deducting at least a first portion of a line of credit balance from one or more automatic deposits to thereby repay at least a portion of the line of credit balance associated with the loaded predetermined increments responsive to receiving the one or more automatic deposits.

3. A prepaid card processor as defined in claim 2, wherein one or more of the one or more remote computers are computers associated with one or more lending institutions associated with the line of credit to define one or more lending institution computers;

and wherein the prepaid card processor further configured to perform the steps of;

transmitting via a communication network at least a second portion of the first portion of the line of credit balance deducted from the one or more automatic deposits to the one or more lending institution computers so that the one or more lending institution computers is adapted to reduce the line of credit balance associated with the loaded predetermined increments; and

synchronizing line of credit data stored on the non-transitory memory of the prepaid card processor with line of credit data stored with the one or more lending institution computers.

4. A prepaid card processor as defined in claim 3, wherein the second portion of the one or more automatic deposits transmitted to the one or more lending institution computers is the first portion deducted from the one or more automatic deposits minus a fee for the prepaid card processor.

5. A prepaid card processor as defined in claim 1, wherein line of credit data further includes a preauthorized individual loan limit, and wherein loading of the one or more of the plurality of prepaid accounts is responsive to the predetermined loan increments not exceeding the preauthorized individual loan limit.

6. A prepaid card processor as defined in claim 1, wherein a total value of a predetermined loan advance fee being equal to a predetermined loan advance fee multiplied by the number of separate predetermined loan increments;

and wherein the total value of the predetermined loan advance fee being less than the value of one of the loaded predetermined increments.

7. A prepaid card processor as defined in claim 2, wherein the deduction is made prior to the one or more automatic deposit being available for use in the one or more of the plurality of prepaid card accounts.

8. Non-transitory computer memory encoded with computer program executable by a prepaid card processor, the computer program comprising instructions that, when executed by the prepaid card processor causes the prepaid card processor to perform the operations of:

determining, responsive to a value of a proposed purchase being greater that a value associated with one or more of a plurality of prepaid card accounts, a number of separate predetermined loan increments to be drawn from a line of credit coupled to the one or more of the plurality of prepaid card accounts, the number of separate predetermined loan increments multiplied by a value of one of the plurality of separate predetermined loan increments plus the value associated with one or more of the plurality of prepaid card accounts exceeding the value of the proposed purchase by less than the value of one of the plurality of separate predetermined loan increments;

loading the one or more of the plurality of the prepaid card accounts with draws from the line of credit in the number of separate predetermined loan increments to thereby define loaded predetermined increments responsive to receiving the draws from the line of credit; and

deducting the value of the proposed purchase from the value associated with the one or more of the plurality of the prepaid card accounts, the difference between the value of the proposed purchase and the value associated with the one or more of the plurality of prepaid card accounts being no greater than the value of one of the plurality of separate predetermined loan increments, each of the plurality of separate predetermined loan increments being equal in value.

9. Non-transitory memory as defined in claim 8, wherein the computer program further comprising instructions that, when executed by the prepaid card processor causes the prepaid card processor to perform the operation of:

deducting at least a first portion of a line of credit balance from one or more automatic deposits to thereby repay at least a portion of the line of credit balance associated with the loaded predetermined increments responsive to receiving the one or more automatic deposits.

10. Non-transitory memory as defined in claim 9, wherein the computer program further comprising instructions that, when executed by the prepaid card processor causes the prepaid card processor to perform the operation of:

communicating with one or more remote computers associated with one or more lending institutions associated with the line of credit to define one or more lending institution computers;

transmitting via a communication network at least a second portion of the first portion of the line of credit balance deducted from the one or more automatic deposits to the one or more lending institution computers so that the one or more lending institution computers is adapted to reduce the line of credit balance associated with the loaded predetermined increments; and

synchronizing line of credit data stored on a non-transitory memory of the prepaid card processor with line of credit data stored with the one or more lending institution computers.

11. Non-transitory memory as defined in claim 10, wherein the second portion of the one or more automatic deposits transmitted to the one or more lending institution computers is the first portion deducted from the one or more automatic deposits minus a fee for the prepaid card processor.

12. Non-transitory memory as defined in claim 10, wherein the line of credit data further includes a preauthorized individual loan limit, and wherein loading of the one or more of the plurality of prepaid accounts is responsive to the predetermined loan increments not exceeding the preauthorized individual loan limit.

13. Non-transitory memory as defined in claim 8, wherein a total value of a predetermined loan advance fee being equal to a predetermined loan advance fee multiplied by the number of separate predetermined loan increments;

and wherein the total value of the predetermined loan advance fee being less than the value of one of the loaded predetermined increments.

14. Non-transitory memory as defined in claim 9, wherein the deduction is made prior to the one or more automatic deposit being available for use in the one or more of the plurality of prepaid card accounts.

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

determining, by a prepaid card processor configured to process a plurality of transactions associated with a plurality of prepaid card accounts, a number of separate predetermined loan increments to be drawn from a line of credit coupled to one or more of the plurality of prepaid card accounts, the number of separate predetermined loan increments multiplied by a value of one of the plurality of separate predetermined loan increments plus a value associated with one or more of the plurality of prepaid card accounts exceeding a value of a proposed purchase by less than the value of one of the plurality of separate predetermined loan increments, the determination being responsive to the value of the proposed purchase being greater than the value associated with the one or more of the plurality of the prepaid card accounts;

loading, by the prepaid card processor, the one or more of the plurality of the prepaid card accounts with draws from the line of credit in the number of separate predetermined loan increments to thereby define loaded predetermined increments responsive to receiving the draws from the line of credit; and

deducting, by the prepaid card processor, the value of the proposed purchase from the value associated with the one or more of the plurality of the prepaid card accounts, the difference between the value of the proposed purchase and the value associated with the one or more of the plurality of prepaid card accounts being no greater than the value of one of the plurality of separate predetermined loan increments, each of the plurality of separate predetermined loan increments being equal in value.

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

communicating, via a communication network, the number of separate predetermined loan increments determined by the prepaid card processor to a lending institution computer associated with the line of credit to thereby request draws from the line of credit.

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

deducting, by the prepaid card processor, at least a first portion of a line of credit balance from one or more automatic deposits to thereby repay at least a portion of the line of credit balance associated with the loaded predetermined increments responsive to receiving the one or more automatic deposits.

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

deducting a second portion from the first portion of the line of credit balance deducted from the one or more automatic deposits, the second portion being equal to the first portion deducted from the one or more automatic deposits minus a fee for the prepaid card processor.

19. A computer-implemented method as defined in claim 15, wherein the line of credit includes a preauthorized individual loan limit, and wherein loading of the one or more of the plurality of prepaid accounts is responsive to the predetermined loan increments not exceeding the preauthorized individual loan limit.

20. A computer-implemented method as defined in claim 15, wherein a total value of a predetermined loan advance fee being equal to a predetermined loan advance fee multiplied by the number of separate predetermined loan increments;

and wherein the total value of the predetermined loan advance fee being less than the value of one of the loaded predetermined increments.