Method of using prepaid cash card for making purchases on the world wide web

• US 7,082,416 B2
• Filed: 12/11/2001
• Issued: 07/25/2006
• Est. Priority Date: 04/06/2001
• Status: Active Grant

• Current Assignee: Karyn Elaine Anderson
• Original Assignee: Karyn Elaine Anderson
• Inventors: Anderson, Karyn Elaine
• Primary Examiner(s): Rosen, Nicholas D.
• Application Number:
  US10/021,620
• Publication Number:
  US 20020147662A1
• Time in Patent Office: 1,687 Days
• Field of Search: 705/64, 705/72, 705/74, 705/77, 705/78, 235/380
• US Class Current: 705/74
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/0855 involving a third party
• 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 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/383 Anonymous user system
• 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: 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 method for making on-line purchases includes purchasing a card having a unique identification code and a predetermined cash balance and activating an associated account. Goods or services offered by a seller through a web-site are selected and the identification code provided to the seller who transmits it for verification. If the identification code is associated with the valid and active account and if there is sufficient cash balance in the account, an approval code is sent to the seller, and the purchase price of the selective goods or services is debited from the cash balance of the account. If the identification code is determined invalid, or there is insufficient cash balance, a denial code is transmitted to the seller. As there are low cash balances and no personally identifying or sensitive information associated with the cards, there is little risk in use over the Internet.

Claims

1. A method for making purchase transactions over the world wide web, comprising the steps of:

purchasing a card having a unique identification code and a predetermined cash balance;

activating an account associated with the card by providing only the identification code and not any personally identifying information to a card service system;

selecting one or more goods or services offered by a seller through a web-site;

providing the identification code of the card to the seller who then transmits the identification code to the card service system for verification, wherein the verification by the card service system includes the steps of determining if the identification code is associated with a valid and active account by searching a database of activated accounts, and if there is sufficient cash balance in the account to purchase the selected goods or services; and

transmitting an approval code to the seller if the identification code is valid and a sufficient cash balance is available in the associated account to purchase the selected goods or services, or transmitting a denial code to the seller if the identification code is determined invalid or there is insufficient cash balance in the associated account to purchase the selected goods or services; and

debiting the purchase price of the selected goods or services from the cash balance of the account when an approval code is transmitted.

2. The method of claim 1, including the step of removing an obstruction covering the identification code after purchasing the card.

3. The method of claim 2, including the step of removing a peel-away strip covering the identification code.

4. The method of claim 1, wherein the activating step includes calling the card service system by telephone and providing the identification code.

5. The method of claim 4, wherein the activating step includes inputting the identification code via keystrokes of a keypad of the telephone when prompted by an automated system.

6. The method of claim 4, wherein the activating step includes an automated system having voice recognition software and the identification code is provided by voice.

7. The method of claim 1, wherein the activating step includes entering the identification code into a designated field of a card service system web-site.

8. The method of claim 1, including the step of crediting the seller with the value of the purchase price at the selected goods or services when debiting the cash balance of the card account.

9. The method at claim 1, including the step of a cardholder determining current card account cash balance by contacting the card service system.

10. The method of claim 9, including the step of transferring a minimal cash balance from one card account of a cardholder to another card account of the cardholder by contacting the card service system.

11. A method for making purchase transactions over the world wide web, comprising the steps of;

purchasing a card having a unique identification code and a predetermined cash balance;

removing an obstruction covering the identification code after purchasing the card;

activating an account associated with the card by calling the card service system by telephone and providing only the identification code and not any personally identifying information;

selecting one or more goods or services offered by a seller through a web-site;

providing the identification code of the card to the seller by entering the identification code into a designated field of the web-site, who then transmits the identification code to the card service system for verification;

determining if the identification code is associated with a valid and active account and if there is a sufficient cash balance in the account to purchase the selected goods or services; and

transmitting an approval code to the seller if the identification code is valid and a sufficient cash balance is available, and crediting the seller with the value of the purchase price of the selected goods or services and debiting the purchase price of the selected goods or services from the cash balance of the account, or transmitting a denial code if the identification code is invalid or there is insufficient cash balance in the associated account to purchase the selected goods or services.

12. The method of claim 11, including the step of removing a peel-away strip covering the identification code.

13. The method of claim 11, wherein the activating step includes inputting the identification code via keystrokes of a keypad of the telephone when prompted by an automated system.

14. The method of claim 11, wherein the activating step includes an automated system having voice recognition software and the identification code is provided by voice.

15. The method of claim 11, wherein the determining step includes searching a database of activated accounts.

16. The method of claim 11, including the step of a cardholder determining current card account cash balance by contacting the card service system.

17. The method of claim 16, including the step of transferring a minimal cash balance from one card account of a cardholder to another card account of the cardholder by contacting the card service system.

18. A method for making purchase transactions over the world wide web, comprising the steps of:

purchasing a card having a unique identification code and a predetermined cash balance;

removing an obstruction covering the identification code after purchasing the card;

activating an account associated with the card by entering only the identification code into a designated field of a card service system web-site without any personally identifying information;

selecting one or more goods or services offered by a seller through a web-site;

providing the identification code of the card to the seller by entering the identification code into a designated field of the seller'"'"'s web-site, who then transmits the identification code to the card service system for verification;

determining if the identification code is associated with a valid and active account and if there is a sufficient cash balance in the account to purchase the selected goods or services;

transmitting an approval code to the seller if the identification code is valid and a sufficient cash balance is available, and crediting the seller the value of the value of the purchase price of the selected goods or services and debiting the purchase price of the selected goods or services from the cash balance of the account, or transmitting a denial code if the identification code is invalid or there is insufficient cash balance in the associated account to purchase the selected goods or services;

a cardholder determining current card account cash balance by contacting the card service system; and

transferring a minimal cash balance from one card account of the cardholder to another card account of the cardholder by contacting the card service system.

19. The method of claim 18, including the step of removing a peel-away strip covering the identification code.

20. The method of claim 18, wherein the determining step includes searching a database of activated accounts.