SYSTEMS, METHODS, AND DEVICES FOR SELLING TRANSACTION INSTRUMENTS

• US 20050199705A1
• Filed: 01/14/2005
• Published: 09/15/2005
• Est. Priority Date: 03/12/2004
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC), General Counsel's Office
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Imada, Jon Steven, Feldman, Gennye, Heitz, Rachel Riley, Martinez, Paula S, Miller, Sven, Page, Clyde, Beck, Randy
• Granted Patent: US 7,243,839 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• 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 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

The present invention generally relates to a system and method for distributing an open transaction instrument. The system includes the steps of: accessibly offering for sale, in a retail environment, the open transaction instrument; selling a selected open transaction instrument; and enabling the use of the open transaction instrument. The transaction instrument may be, for example, an open pre-paid card. Furthermore, accessibly offering the open pre-paid card for sale, in one exemplary embodiment, is performed by hanging the pre-paid card on a rack. The distribution of the open transaction instrument may also comprise the step of sending a message, in substantially real time, causing the pre-paid open transaction instrument to be funded but not activated. Also, in accordance with further exemplary embodiments of the present invention, an issuer system is suitably configured to leverage existing infrastructure for inventory and related processes.

Claims

1. A method for distributing an open transaction instrument, in a retail environment, comprising the steps of:

offering the open transaction instrument to a consumer, wherein the open transaction instrument is directly accessible by a consumer;

allowing a customer to obtain the open transaction instrument; and

facilitating the funding of said open transaction instrument.

2. The method of claim 1, wherein said open transaction instrument is associated with a transaction account.

3. The method of claim 1, wherein said open transaction instrument is associated with a transaction account and wherein said offering step further comprises at least one of hanging the open transaction instrument on a rack, and placing the open transaction instrument on a shelf.

4. The method of claim 1, further comprising the step of selling the open transaction instrument, wherein the open transaction instrument is associated with an open pre-paid card.

5. The method of claim 1, further comprising the step of selling the open transaction instrument, wherein the open transaction instrument is associated with an open pre-paid card, and wherein said open pre-paid card is funded during said selling step, and is activated after said selling step.

6. The method of claim 1, further comprising the step of selling the open transaction instrument, wherein the open transaction instrument is associated with an open pre-paid card, and wherein a transaction account associated with said open pre-paid card is funded during said selling step and is activated after said selling step, and wherein said enabling step further comprises the step of using an automated activation system to activate said transaction account.

7. The method of claim 1, wherein said open transaction instrument is associated with a transaction account, and wherein said open transaction instrument comprises an open pre-paid card that is accepted at a plurality of merchants that are not directly affiliated with each other.

8. The method of claim 1, wherein said open transaction instrument is associated with a transaction account, and wherein said open transaction instrument comprises a pre-paid card that is accepted at a plurality of merchants that are not directly affiliated with each other, and said method further comprising the steps of associating a serialized number with said open transaction instrument and associating a randomized card number with said pre-paid card.

9. The method of claim 8, further comprising packaging said pre-paid card, wherein said packaging conceals said randomized card number and displays said serialized number.

10. A method of distributing a transaction instrument comprising the steps of:

receiving sales confirmation data associated with the transaction instrument;

causing a transaction account associated with the transaction instrument to be funded but not activated; and

,

activating said transaction account at a time subsequent to said receiving step.

11. The method of claim 10, wherein said transaction instrument comprises a pre-paid open transaction instrument.

12. The method of claim 10, wherein said transaction instrument comprises a pre-paid open transaction instrument, wherein said method further comprises the step of activating said pre-paid open transaction instrument, and wherein said activating step further comprises the step of using an automated activation system.

13. The method of claim 10 further comprising the steps of associating a serialized number with said transaction instrument and associating a randomized card number with said open transaction instrument.

14. The method of claim 10 further comprising the steps of associating a serialized number with said transaction instrument and associating a randomized card number with said open transaction instrument, wherein said transaction instrument comprises a pre-paid open card.

15. The method of claim 10 further comprising the steps of associating a serialized number with said transaction instrument and associating a randomized card number with said open transaction instrument, wherein said transaction instrument comprises a pre-paid open card, wherein said card is packaged, and wherein said packaging conceals said randomized card number and displays said serialized number.

16. The method of claim 10 further comprising the steps of:

associating a serialized number with said transaction instrument and associating a randomized card number with said transaction instrument, wherein said transaction instrument comprises a pre-paid open card, wherein said card is packaged, and wherein said packaging conceals said randomized card number and displays said serialized number; and

utilizing a pre-existing inventory and financial settlement system to process said transaction instrument.

17. A method for facilitating distribution of an open transaction instrument through a distributor, the method comprising the steps of:

issuing an open transaction instrument to the distributor; and

receiving information from the distributor, wherein said information is related to the distribution of the open transaction instrument, and facilitates the funding of a transaction account, associated with the open transaction instrument, upon distribution.

18. The method of claim 17, further comprising the step of activating said distributed transaction account after distribution via an automated activation system.

19. The method of claim 17, further comprising the step of activating said distributed transaction account after distribution via an interactive voice response system, wherein said transaction instrument is an open pre-paid card, and wherein said distributor is a merchant.

20. The method of claim 17, further comprising the step of activating said distributed transaction instrument after distribution via an interactive voice response system, wherein said transaction instrument is an open pre-paid card, and wherein said distributor is a merchant, said method further comprising the steps of:

associating a first number with said open pre-paid card, wherein said first number is suitably configured to conform to a Travelers Cheque infrastructure, wherein said first number comprises, at least in part, a serial number, wherein said open pre-paid card is one of a plurality of cards, and wherein said plurality of cards are consigned to said merchant in groups with each card identified respectively by said serial number; and

associating a second number with said card, wherein said second number is a randomized account number.

21. The method of claim 17, further comprising the steps of receiving, at an issuer system, batch information, associated with the distribution of said open transaction instrument, and processing said batch information via a pre-established pre-paid card infrastructure.

34. The method of claim 17, wherein said receiving information step comprises receiving information related to said distribution of a first retail sale package containing a first transaction instrument, wherein said retail sale package is associated with a second retail sale package containing a second transaction instrument, wherein said first and second retail sale packages comprise a distribution group, and wherein said information identifies a location of a sale of said first retail sale package;

and wherein said method further comprises associating said location of said sale of said first retail sale package with said second retail sale package to facilitate determining said location of said second retail sale package in an inventory system.

22. A system for facilitating distribution of an open transaction instrument through a distributor comprising:

an open transaction instrument issuing system configured to issue the open transaction instrument to a distributor, wherein the open transaction instrument issuing system is configured to receive a Fund/Init signal and to fund a transaction account associated with the open transaction instrument;

a distributor system configured distribute the open transaction instrument and to communicate with said open transaction instrument issuing system, wherein said communication facilitates the funding of said transaction account.

23. The system of claim 22, wherein said issuing system further comprises an automated activation system, wherein said transaction account is activated via said automated activation system after the funding of said transaction account.

24. The system of claim 22 wherein said open transaction instrument is a pre-paid card, and wherein said distributor is a merchant.

25. The system of claim 22, wherein said open transaction instrument is associated with a first number and a second number, and wherein said first number comprises, at least in part, a serialized number.

26. The system of claim 22, wherein said open transaction instrument is associated with a first number and a second number, and wherein said first number comprises a serial number, wherein said distributor system is a merchant system that is configured to communicate information related to the distribution of the transaction instrument to said transaction instrument issuing system;

and wherein said information is configured for processing via a pre-existing inventory and financial settlement processing infrastructure which operates using serial number logic.

27. The system of claim 22, wherein said transaction instrument is an open pre-paid card and wherein said pre-paid card is funded no earlier than the sale of said open pre-paid card by the distributor.

28. A method of distributing a transaction instrument comprising the steps of:

receiving sales confirmation data associated with the transaction instrument through a first medium;

causing a transaction account associated with the transaction instrument to be funded but not activated;

receiving a request to activate said transaction account through a second communication medium; and

,

activating said transaction account at a time subsequent to causing said transaction account to be funded.

29. The method claim 28, wherein said first medium comprises a point of sale card authorization medium.

30. The method claim 28, wherein said second medium comprises an automated activation medium.

31. The method claim 28, wherein said first medium comprises a point of sale card authorization medium, and wherein said second medium comprises an interactive voice response medium.

32. The method claim 28, wherein said first medium comprises a point of sale card authorization medium, wherein said second medium comprises an interactive voice response medium, and wherein the transaction instrument is an open pre-paid card.

33. The method claim 28, wherein said first medium comprises a point of sale card authorization medium, wherein said second medium comprises an interactive voice response medium, wherein the transaction instrument is an open pre-paid card, and wherein receiving said sales confirmation data facilitates activation of said open pre-paid card through said interactive voice response medium immediately after the transaction instrument is distributed.

35. A method for facilitating the distribution of an open transaction instrument, in a retail environment, comprising the steps of:

receiving sales confirmation data, wherein said sales confirmation data is associated with the distribution of said open transaction instrument to a consumer, wherein the open transaction instrument is directly accessible by said consumer;

sending an authorization facilitating distribution of said open transaction instrument; and

funding said open transaction instrument at the time of distribution to said consumer.