Credit and prepaid financial card

• US 8,600,871 B1
• Filed: 03/14/2008
• Issued: 12/03/2013
• Est. Priority Date: 03/14/2008
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Tavares, Felicia Ann, Armstrong, Stephen Daniel
• Primary Examiner(s): Chang, Edward
• Application Number:
  US12/048,398
• Time in Patent Office: 2,090 Days
• Field of Search: 705/38, 705/40, 705/35
• US Class Current: 705/38
• 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 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A financial card is issued to a user that is set to behave like a prepaid card as the card can only have a positive balance, and funds may be added to this balance to be spent. At any time, the user may change the financial card to behave like a credit card, thereby allowing spending on credit. Alternatively, the financial card may be issued as a credit card and may be changed to a prepaid card. The financial card has a single account number, regardless of whether it is set to behave like a prepaid card or a credit card, and regardless of whether it is switched from one operating mode to another.

Claims

1. A financial card management method, comprising:

issuing a financial card to a cardholder by a financial services institution, the financial card being operable in either a prepaid mode or a credit mode, wherein the financial card, the prepaid mode, and the credit mode are each associated with a same single account;

receiving input, from a user at a website of the financial services institution,

wherein the input includes;

a revocable selection of one of either the prepaid mode or the credit mode for future transactions made using the financial card, and

a restriction on types of purchases which may be made using the credit mode,

wherein the selection of the one of either the prepaid mode or the credit mode precludes use of the other of the prepaid mode or the credit mode until another selection is received at the computing device;

authorizing a transaction in the selected mode, wherein the transaction is made by the cardholder using the financial card;

receiving funds for the account at the computing device; and

applying the funds to the account, using the computing device, in accordance with a rule.

2. The method of claim 1, wherein applying the funds to the account in accordance with the rule comprises applying the funds to a prepaid balance associated with the prepaid mode.

3. The method of claim 1, wherein applying the funds to the account in accordance with the rule comprises applying the funds to a debt associated with the credit mode.

4. The method of claim 1, wherein the user is not the cardholder.

5. The method of claim 1, wherein the cardholder is not authorized to provide the input.

6. The method of claim 1, wherein the input further includes information identifying a gift giver and receiving the funds for the account comprises receiving funds from an account of the gift giver.

7. A non-transitory computer-readable medium comprising computer-executable instructions for financial card management, said computer-executable instructions comprising instructions that, when executed by one or more processors, direct the one or more processors to:

issue a financial card to a cardholder, the financial card being operable in either a prepaid mode or a credit mode, wherein the financial card, the prepaid mode, and the credit mode are each associated with a same single account;

receive input, at a website from a user,

wherein the input includes;

a revocable selection of one of either the prepaid mode or the credit mode for future transactions using the financial card, and

a restriction on types of purchases which may be made using the credit mode,

wherein the selection of the one of either the prepaid mode or the credit mode precludes use of the other of the prepaid mode or the credit mode until another selection is received;

authorize a transaction in the selected mode, wherein the transaction is made by the cardholder using the financial card;

receive funds for the account; and

apply the funds to the account in accordance with a rule.

8. The non-transitory computer-readable medium of claim 7, where applying the funds to the account in accordance with the rule comprises applying the funds to a prepaid balance associated with the prepaid mode.

9. The non-transitory computer-readable medium of claim 7, where applying the funds to the account in accordance with the rule comprises applying the funds to a debt associated with the credit mode.

10. The non-transitory computer-readable medium of claim 7, where the user is not the cardholder.

11. The non-transitory computer-readable medium of claim 7, wherein the input further includes a restriction on types of purchases which may be made using the prepaid mode.

12. The non-transitory computer-readable medium of claim 7, wherein the input further includes information identifying a gift giver and receiving the funds for the account comprises receiving funds from an account of the gift giver.

13. A financial card management system, comprising:

one or more computers;

at least one subsystem of the one or more computers that issues a financial card to a cardholder, the financial card being operable in either a prepaid mode or a credit mode, wherein the financial card, the prepaid mode, and the credit mode are each associated with a same single account;

at least one subsystem of the one or more computers that receives input, at a website from a user,

wherein the input includes;

a revocable selection of one of either the prepaid mode or the credit mode for future transactions using the financial card, and

a restriction on types of purchases which may be made using the financial card;

wherein the selection of the one of either the prepaid mode or the credit mode precludes use of the other of the prepaid mode or the credit mode until another selection is received;

at least one subsystem of the one or more computers that authorizes a transaction made by the cardholder in the selected mode;

at least one subsystem of the one or more computers that receives funds for the account; and

at least one subsystem of the one or more computers that applies the funds to the account in accordance with a rule.

14. The system of claim 13, wherein applying the funds to the account in accordance with the rule comprises applying the funds to a prepaid balance associated with the prepaid mode.

15. The system of claim 13, wherein applying the funds to the account in accordance with the rule comprises applying the funds to a debt associated with the credit mode.

16. The system of claim 13, wherein the user is not the cardholder.

17. The system of claim 13, wherein the input further includes a restriction on types of merchants authorized to accept the financial card.

18. The system of claim 13, wherein the input further includes information identifying a gift giver and receiving the funds for the account comprises receiving funds from an account of the gift giver.