System, computer readable medium, and method for authorizing purchase using on-demand prepaid card

• US 9,830,582 B1
• Filed: 08/18/2008
• Issued: 11/28/2017
• Est. Priority Date: 08/18/2007
• Status: Active Grant

• Current Assignee: Expensify Incorporated
• Original Assignee: Expensify Incorporated
• Inventors: Barrett, David M.
• Primary Examiner(s): Obaid, Fateh M
• Application Number:
  US12/193,590
• Time in Patent Office: 3,389 Days
• Field of Search: None
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/4037 Remote solvency checks

Abstract

A system, computer readable medium, and method of receiving a primary authorization request at a first authorization switch using a prepaid card that lacks adequate funds in the prepaid account to cover the requested purchase amount, and initiating a secondary authorization request using a funding account identifier associated with a funding account that does contain adequate funds to cover the requested purchase amount.

Claims

1. A method for conducting financial network electronic transactions, the method including one or more steps that are performed by one or more processors over a network, the method comprising:

(a) associating a prepaid account with a first entity, wherein information related to the prepaid account is stored on a database accessible via the network;

(b) linking a prepaid card to the prepaid account of the first entity and making the prepaid card available for use by the first entity in connection with a plurality of rules specified by a second entity, wherein the plurality of rules are stored on the database accessible via the network and include a first set of rules that specify a merchant and a particular geographic location where the prepaid card can be used;

(c) responsive to a notification of a transaction from the first entity, processing a primary authorization request when the prepaid card of the first entity is used at a merchant terminal of the merchant in accordance with the plurality of rules specified by the second entity, including loading a funds for the transaction into the prepaid account of the prepaid card when the transaction is in accordance with the plurality of rules;

(d) initiating two or more secondary authorization requests to automatically divide the funds for the transaction among multiple funding accounts in accordance with a second set of rules of the plurality of rules.

2. The method according to claim 1, wherein at least (c) and (d) are performed over an “

open loop”

network comprising at least one of VisaNet, MasterCard, Discover, Automated Clearing House, or American Express.

3. The method according to claim 1, wherein at least (c) and (d) are performed over a “

closed loop”

network tied to an individual merchant, or coalition of merchants.

5. The method of claim 1, wherein the plurality of rules specified by the second entity include a rule to limit transactions based on an amount of a given transaction.

6. The method of claim 1, wherein (d) includes using multiple funding accounts of the second entity to fund the prepaid account of the first entity.

4. A system, comprising:

one or more processors; and

a memory operatively coupled to the one or more processors, the memory for storing instructions, which when executed by the one or more processors over a network, cause the one or more processors to;

associate a prepaid account with a first entity, wherein information related to the prepaid account is stored on a database accessible via the network;

link a prepaid card to the prepaid account of the first entity and make the prepaid card available for use by the first entity in connection with a plurality of rules specified by a second entity, wherein the plurality of rules are stored on the database accessible via the network and include a first set of rules that specify a merchant and a particular geographic location where the prepaid card can be used;

responsive to a notification of a transaction from the first entity, process a primary authorization request when the prepaid card of the first entity is used at a merchant terminal of the merchant for the transaction in accordance with the plurality of rules specified by the second entity;

wherein processing the primary authorization request includes loading the prepaid account of the prepaid card with funds for the transaction;

initiate two or more secondary authorization requests to automatically divide the funds for the transaction among multiple funding accounts in accordance with a second set of rules of the plurality of rules.

7. The system of claim 4, wherein the plurality of rules specified by the second entity include a rule to limit transactions based on an amount of a given transaction.

8. The system of claim 4, wherein the one or more processors initiate at least one of the secondary authorization requests by obtaining funds from multiple funding accounts of the second entity to fund the prepaid account of the first entity.