System and method for converting a stored value card to a credit card

• US 6,805,287 B2
• Filed: 09/12/2002
• Issued: 10/19/2004
• Est. Priority Date: 09/12/2002
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Armes, David, Neemann, Trey, Bishop, Fred
• Primary Examiner(s): Lee, Michael G.
• Assistant Examiner(s): Kim, Ahshik
• Application Number:
  US10/242,584
• Publication Number:
  US 20040050928A1
• Time in Patent Office: 768 Days
• Field of Search: 235/375, 235/379, 235/380, 235/383, 705/41, 705/44, 705/35, 705/68, 705/70, 705/75
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/0833 Card having specific functional components

Abstract

A method and system for converting a first transaction account device to a second transaction account device wherein a card number associated with, or defined as, a first transaction account (e.g., stored value account) is re-associated with, or re-defined as, a second transaction account (e.g., credit card account).

Claims

1. A method for facilitating the re-association of a card number from a first transaction account to a second transaction account, comprising the steps of:

providing said second transaction account;

receiving said card number associated with said first transaction account;

associating said card number with said second transaction account;

wherein said card number is a proxy account number, wherein said proxy account number within a proxy system is configured to associate said proxy account number to more than one transaction account, and wherein said proxy account number is authorized to be used for multiple transactions.

2. The method of claim 1, wherein said card number comprises unchangeable indicia permanently associating said card number with a proxy account number.

3. The method of claim 2, wherein said indicia is a bank identification number (BIN).

4. A method for facilitating the re-association of a card number from a first transaction account to a second transaction account, comprising the steps of:

providing said second transaction account;

receiving said card number associated with said first transaction account;

associating said card number with said second transaction account;

wherein said card number corresponds to a proxy account number, and said proxy account number within a proxy system is configured to associate said proxy account number to one or more transaction accounts;

wherein said card number comprises unchangeable indicia permanently associating said card number with a proxy account;

facilitating, during a customer-merchant transaction, a merchant authorization process after said conversion, wherein said authorization process comprises the steps of;

providing an authorization system;

recognizing said indicia of said card number as the indicia of a proxy account;

forwarding to a proxy account system;

identifying said second transaction account associated with said card number;

determining if said second transaction account is authorized for a transaction; and

returning authorization result to said merchant;

facilitating a merchant settlement process after said conversion, wherein said settlement process comprises the steps of;

receiving a settlement request from said merchant;

recognizing said indicia of said card number is the indicia of said proxy account;

forwarding to said proxy account system;

recognizing said proxy account as associated with said second transaction account;

charging amount of transaction against said second transaction account; and

adjusting said second transaction account balance by amount of said transaction.

5. The method of claim 4, wherein said second transaction account is a credit card account.

6. A method of re-associating an existing stored value account number, that is associated with a stored value account, to a new account, comprising the steps of:

providing a conversion interface;

receiving a conversion request from a customer;

presenting to said customer an account application form, wherein said customer is prompted to provide said existing stored value account number;

communicating a completed account application to a new accounts system;

determining if said customer qualifies for a new account;

issuing said new account to said customer; and

associating said new account with said existing stored value account number, wherein said existing stored value account number is authorized for multiple purchases, and wherein said associating step further comprises the steps of;

forwarding said existing stored value account number to a proxy account system; and

using said proxy account system to recognize said existing stored value account number account as associated with said new account.

7. The method of claim 6, further comprising the steps of closing said stored value account.

8. The method of claim 6, wherein said conversion interface facilitates online communication between said customer and said host.

9. The method of claim 8, said step for providing an online conversion interface further comprising the steps of:

providing a registration web page; and

prompting said customer to complete an online application form.

10. The method of claim 6, further comprising the steps of:

determining if said stored value account has an outstanding value at the time of the conversion request;

removing, if said stored value account has an outstanding value, said value from said stored value account; and

crediting said value to said new account.

11. The method of claim 6, further comprising the step of updating authorization systems and accounts receivable systems to reflect said new account information.

12. A system for converting a first transaction account to a second transaction account comprising:

a user interface system configured to communicate with said user to accept a request from said user to convert a card number associated with said first transaction account to a card number associated with a second transaction account;

a new accounts system configured to generate a second transaction account;

a modifiable computer data structure configured to associate a card number with a plurality of transaction account types; and

a proxy account system configured to facilitate the re-association of said card number from said first transaction account to said second transaction account.

13. The system of claim 12, wherein said first transaction account is a stored value account and said second transaction account is a credit card account, wherein said card number is the account number of said stored value account, and wherein said card number is a proxy number for said credit card account.

14. A method for facilitating the re-association of a transaction instrument number from a first transaction account to a second transaction account, comprising the steps of:

issuing a transaction instrument, wherein said transaction instrument is associated with a first number, wherein said first number is a proxy account number, and wherein said proxy account number is associated with the first transaction account;

providing the second transaction account;

receiving said proxy account number associated with the first transaction account;

disassociating said proxy account number from the first transaction account; and

associating said proxy account number with the second transaction account.

15. A method for issuing transaction accounts comprising the steps of:

issuing a first transaction account number, wherein said first transaction account number is associated with a proxy number;

providing a second transaction account;

receiving said first transaction account number associated with said first transaction account, wherein said first transaction account number is usable in successive transactions;

using said proxy number to associate, during authorization and settlement phases, said first transaction account number with said second transaction account number.

18. The method of claim 15, wherein said first transaction account number is permanently associated with a first transaction instrument comprising a physical device configured for facilitating financial transactions.

16. A method for issuing a credit card transaction account comprising the steps of:

issuing a stored value transaction card, wherein said stored value transaction card is a physical object having a first transaction account number associated therewith, wherein said first transaction account number is associated with a proxy number, and wherein said proxy number is associated with a stored value transaction account;

providing a credit card transaction account having a second transaction account number different from said first transaction account number;

changing said proxy number association from said stored value transaction account to said credit card transaction account;

receiving said first transaction account number; and

using said proxy number to associate said first transaction account number with said second transaction account number.

17. The method of claim 16, wherein using said proxy number further comprises forwarding said first transaction account number to a proxy account system and forwarding said second account number from said proxy account system to a credit card account system.