Prepaid card payment system and method for electronic commerce

• US 6,805,289 B2
• Filed: 05/23/2002
• Issued: 10/19/2004
• Est. Priority Date: 05/23/2002
• Status: Expired due to Fees

• Current Assignee: Eduardo Noriega, Jose Almenara
• Original Assignee: Eduardo Noriega, Jose Almenara
• Inventors: Almenara, Jose, Noriega, Eduardo
• Primary Examiner(s): Hess, Daniel A.
• Application Number:
  US10/153,575
• Publication Number:
  US 20030218062A1
• Time in Patent Office: 880 Days
• Field of Search: 235/380, 235/379, 705/67, 705/44, 705/52, 705/72
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/3674 involving authentication
• 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 20/4012 Verifying personal identification numbers [PIN]
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered

Abstract

A prepaid card system enabling access to payment-based websites comprising one or more prepaid cards bearing a stored value and authentication codes; one or more cardholder computers communicating via the Internet with merchant websites; a “middleman” server communicating via an intranet with merchants, prepaid card issuers and said merchants'"'"' banks; one or more searchable databases hosted on the middleman'"'"'s server storing merchant registration information, card issuer information; one or more software applications to interpret the data sent by the middleman server for the identification and online deduction of the amount of value used in a transaction from a prepaid card; one or more software applications for reception and transmission of cardholder card data; and one or more software applications for transaction accounting and payment processing between merchants, card issuers, middleman and merchants'"'"' banks. A prepaid card payment method for electronic commerce is also disclosed and claimed.

Claims

1. A prepaid card payment system for electronic commerce, comprising:

one or more prepaid cards bearing a predetermined stored value and authentication codes;

one or more cardholder computers communicating via the Internet with e-commerce merchant websites;

an intermediary or “

middleman”

secure host server communicating via an intranet with e-commerce merchants, prepaid card issuers and said e-commerce merchant'"'"'s banks providing a single point of contact for e-commerce merchants to process e-commerce transactions involving prepaid cards issued by multiple card issuers which collects payment in e-commerce transactions as authorized payee from said prepaid card issuers and then makes payment to an e-commerce merchant bank account designated by the merchant involved in said e-commerce transaction;

one or more searchable databases hosted on said middleman secure host server storing participating e-commerce merchant registration information and card issuer information;

one or more software applications hosted at the host computer of said prepaid card issuer to interpret the data sent by said middleman secure host server for the identification and online deduction of the amount of value used in the particular transaction from said prepaid card;

one or more software applications hosted at said e-commerce merchant'"'"'s web server for reception and transmission of said cardholder data; and

one or more software applications hosted at said middleman secure host server for transaction accounting and e-commerce merchant payment processing between said e-commerce merchant, said card issuer, said middleman secure host server and said e-commerce merchant'"'"'s bank.

2. The prepaid card payment system of claim 1 wherein said prepaid cards additionally have associated with them user age restrictions for use of said cards in electronic commerce transactions involving adults-only goods or services, such that said prepaid cards are only issuable to adults, and said one or more searchable databases also store prepaid card user age restriction information.

3. The prepaid payment system of claim 1, wherein said prepaid cards'"'"' authentication codes are in the form of an alphanumeric character sequence.

4. The prepaid card payment system of claim 1, wherein said middleman secure host server is also a prepaid card issuer and said one or more searchable databases also store prepaid value, authorization code and balance information.

5. The prepaid card system of claim 1, wherein said one or more software applications hosted at said middleman secure host server further comprise one or more currency conversion software applications for performing e-commerce transactions involving multiple currencies.

6. A prepaid card method for electronic commerce, comprising the following steps:

purchasing a prepaid card bearing a predetermined stored value and authentication codes;

sending a transaction payment request accompanied by said prepaid card'"'"'s authentication codes to an e-commerce merchant'"'"'s web server;

transmitting said transaction request and said prepaid card'"'"'s authentication codes from said e-commerce merchant'"'"'s web server to a middleman secure host server for verification of said prepaid card'"'"'s authorization and available value;

transmitting said transaction payment request to the issuer of said prepaid card for approval or rejection;

approving or rejecting said transaction payment request;

transmitting notification of approval or rejection from said prepaid card issuer to said middleman secure host server;

processing approved transaction payments from said prepaid card issuer to said middleman secure host server as authorized payee;

processing said approved transaction payments from said middleman secure host server to said e-commerce merchant'"'"'s bank account.

7. The method of claim 6, wherein said prepaid card has associated with it user age restrictions signifying whether or not said prepaid card can be used in electronic commerce transactions involving adults-only goods and services, and further comprising the step of verifying when said prepaid card is presented for payment, whether said card is authorized for use based on said user age restrictions.

8. The method of claim 6, wherein said prepaid cards'"'"' authentication codes are in the form of an alphanumeric character sequence.

9. The method of claim 6, further comprising the step of deducting a commission agreed upon between said card issuer and said middleman secure host server when processing said transaction approved payment from said prepaid card issuer to said middleman secure host server.

10. The method of claim 6, further comprising the step of deducting a commission agreed upon between said middleman secure host server and said e-commerce merchant when processing said transaction payment from said middleman secure host server to said e-commerce merchant'"'"'s bank account.

11. A method for electronic commerce merchants to accept payment from customers in the form of a prepaid card bearing a predetermined value and authentication codes, comprising the following steps:

registering via the Internet with a middleman secure host server that has an intranet established with one or more prepaid card issuers to process payment requests from and payments to e-commerce merchants using said prepaid card issuers'"'"' prepaid cards;

receiving an e-commerce transaction payment request from a customer using a prepaid card issued by a card issuer with which said middleman secure host server has established said intranet said payment request including the stored value amount and authentication code information borne on said prepaid card;

transmitting said e-commerce transaction payment request and prepaid card information to said middleman secure host server;

transmitting said e-commerce transaction payment request and prepaid card information from said middleman secure host server to said prepaid card'"'"'s issuer for verification and approval or rejection;

approving or rejecting said e-commerce transaction payment request;

transmitting notification of approval or rejection of said e-commerce transaction payment request from said prepaid card issuer to said middleman;

processing approved e-commerce transaction payments from said prepaid card issuer to said middleman secure host server; and

processing said approved e-commerce transaction payments from said middleman secure host server to said e-commerce merchant'"'"'s bank account.

12. The method of claim 11, wherein said e-commerce transaction payment request and prepaid card information also includes prepaid card user age restriction information signifying whether or not said prepaid card can be used for payment in electronic commerce transactions involving adults-only goods or services, and further comprising the step of verifying, when said prepaid card is presented for payment, whether said card is authorized for use in said transaction based on said user age restrictions.

13. The method of claim 11, further comprising the step of deducting a commission agreed upon between said card issuer and said middleman secure host server when processing said e-commerce transaction payment from said prepaid card issuer to said middleman secure host server.

14. The method of claim 11, further comprising the step of deducting a commission agreed upon between said middleman and said e-commerce merchant when processing said e-commerce transaction payment from said middleman secure host server to said e-commerce merchant'"'"'s bank account.