Debit purchasing of stored value card for use by and/or deliveries to others

• US 7,174,315 B2
• Filed: 11/15/2004
• Issued: 02/06/2007
• Est. Priority Date: 06/22/1998
• Status: Expired due to Term

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Phillips, Gregory Joseph, Deporte, Rebecca, Norwine, Jeffrey, Joines, Penny
• Primary Examiner(s): Diaz, Susanna M.
• Application Number:
  US10/987,079
• Publication Number:
  US 20050092829A1
• Time in Patent Office: 813 Days
• Field of Search: 705/1, 705/14, 705/26, 705/41
• US Class Current: 705/41
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/355 Personalisation of cards for use
• 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 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0215 Including financial accounts
• CPC Class Codes: G06Q 30/0234 Rebates after completed purchase
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0609 Buyer or seller confidence or verification
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07G 1/0036 Checkout procedures

Abstract

A method of issuing a purchase card is provided. The method includes the steps of presenting a purchaser with the opportunity to buy the purchase card, determining whether the purchaser has sufficient funds to pay for the purchase card, creating a purchase card account for a recipient designated by the purchaser, and issuing the purchase card. The purchase card may also be issued in connection with another credit card, for example as a rebate for purchases on the credit card. The purchase card may also be converted to a credit card.

Claims

1. A computer-implemented method for issuing a stored value card associated with a predetermined transaction network, an issuer, and a sponsoring entity, the method comprising:

creating one independent and separate account associated with the stored value card, wherein a sponsoring entity funds the account with an initial value;

activating the independent and separate account;

issuing the stored value card to a cardholder, wherein;

a) before issuance, the stored value card is marked with the cardholder'"'"'s name and at least one of a transaction network identification indicia associated with the transaction network and an issuer identification indicia associated with the issuer;

b) the stored value card is accepted wherever cards associated with the predetermined transaction network are accepted; and

c) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined transaction network; and

reloading the stored value card upon receiving a reload request from the cardholder or the sponsoring entity;

notifying the issuer that the cardholder has received the stored value card.

2. The method according to claim 1, wherein the cardholder activates the stored value card.

3. The method according to claim 2, wherein the stored value card is active for a predetermined period of time.

4. The method according to claim 1, wherein the sponsoring entity funds the account more than once.

5. The method according to claim 1, wherein the sponsoring entity receives records regarding account transactions.

6. The method according to claim 1, further comprising the step of the issuer notifying the sponsoring entity that the stored value card has been received by the cardholder.

7. The method according to claim 1, further comprising:

receiving a designation of merchants where the stored value card may be used to make purchases, wherein the designated merchants accept cards associated with the predetermined transaction network.

8. The method of claim 7, wherein the designation is received from an entity that provides funds to the stored value card account.

9. The method of claim 7, wherein the designation is received from the sponsoring entity.

10. The method according to claim 1, wherein the predetermined transaction network is a credit network.

11. The method according to claim 1, wherein the sponsoring entity receives records regarding account transactions.

12. The method according to claim 1, wherein the cardholder is a recipient designated by the sponsoring entity.

13. The method according to claim 1, wherein the sponsoring entity is an individual human purchaser.

14. The method according to claim 1, wherein the transaction network and the issuer each have separate identification indicia.

15. The method according to claim 1, wherein the stored value card is marked with an indicia of the sponsoring entity.

16. A computer-implemented method for issuing an account identifier storage device associated with a predetermined transaction network, an issuer, and a sponsoring entity, the method comprising:

creating one independent and separate account associated with an account identifier storage device, wherein the account identifier storage device stores account identifier information, and wherein a sponsoring entity funds the account with an initial value;

activating the independent and separate account;

issuing the account identifier storage device to an accountholder, wherein;

a) before issuance, the account identifier storage device is marked with the accountholder'"'"'s name and at least one of a transaction network identification indicia associated with the transaction network and an issuer identification indicia associated with the issuer;

b) the account identifier storage device is accepted wherever devices associated with the predetermined transaction network are accepted; and

c) the account identifier storage device uses a one-way only transfer of identification information from the account identifier storage device to the predetermined transaction network; and

reloading the account identifier storage device upon receiving a reload request from the accountholder or the sponsoring entity;

notifying the issuer that the accountholder has received the account identifier storage device.

17. A computer-implemented system for issuing a stored value card associated with a predetermined transaction network, an issuer, and a sponsoring entity, the system comprising:

a processor for creating one independent and separate account associated with the stored value card, wherein a sponsoring entity funds the account with an initial value;

a processor for activating the independent and separate account;

a processor for issuing the stored value card to a cardholder, wherein;

a) before issuance, the stored value card is marked with the cardholder'"'"'s name and at least one of a transaction network identification indicia associated with the transaction network and an issuer identification indicia associated with the issuer;

b) the stored value card is accepted wherever cards associated with the predetermined transaction network are accepted; and

c) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined transaction network; and

a processor for reloading the stored value card upon receiving a reload request from the cardholder or the sponsoring entity;

a processor for notifying the issuer that the cardholder has received the stored value card.

18. The system according to claim 17, wherein the cardholder activates the stored value card.

19. The system according to claim 18, wherein the stored value card is active for a predetermined period of time.

20. The system according to claim 17, wherein the sponsoring entity funds the account more than once.

21. The system according to claim 17, wherein the sponsoring entity receives records regarding account transactions.

22. The system according to claim 17, further comprising:

a processor for notifying the sponsoring entity that the stored value card has been received by the cardholder.

23. The system according to claim 17, further comprising:

a processor for receiving a designation of merchants where the stored value card may be used to make purchases, wherein the designated merchants accept cards associated with the predetermined transaction network.

24. The system according to claim 17, wherein the predetermined transaction network is a credit network.

25. The system according to claim 17, wherein the sponsoring entity receives records regarding account transactions.

26. The system according to claim 17, wherein the cardholder is a recipient designated by the sponsoring entity.

27. The system according to claim 17, wherein the sponsoring entity is an individual human purchaser.

28. The system according to claim 17, wherein the transaction network and the issuer each have separate identification indicia.

29. The system according to claim 17, wherein the stored value card is marked with an indicia of the sponsoring entity.

30. A computer-implemented system for issuing an account identifier storage device associated with a predetermined transaction network, an issuer, and a sponsoring entity, the system comprising:

a processor for creating one independent and separate account associated with an account identifier storage device, wherein the account identifier storage device stores account identifier information, and wherein a sponsoring entity funds the account and the account is independent from any other account;

a processor for activating the independent and separate account;

a processor for issuing the account identifier storage device to an accountholder, wherein;

a) before issuance, the account identifier storage device is marked with the accountholder'"'"'s name and at least one of a transaction network identification indicia associated with the transaction network and an issuer identification indicia associated with the issuer;

b) the account identifier storage device is accepted wherever devices associated with the predetermined transaction network are accepted; and

c) the account identifier storage device uses a one-way only transfer of identification information from the account identifier storage device to the predetermined transaction network; and

a processor for reloading the account identifier storage device upon receiving a reload request from the accountholder or the sponsoring entity;

a processor for notifying the issuer that the accountholder has received the account identifier storage device.

31. A computer-implemented system for issuing a stored value card associated with a predetermined transaction network, an issuer, and a sponsoring entity, the system comprising:

a computer storage system for storing information about an independent and separate account associated with a stored value card, wherein a sponsoring entity funds the account with an initial value;

a processor for activating the independent and separate account;

an output device for passing the stored value card to a cardholder, wherein;

a) before issuance, the stored value card is marked with the cardholder'"'"'s name and at least one of a transaction network identification indicia associated with the transaction network and an issuer identification indicia associated with the issuer;

b) the stored value card is accepted wherever cards associated with the predetermined transaction network are accepted; and

c) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined transaction network; and

a processor for reloading the stored value card upon receiving a reload request from the cardholder or the sponsoring entity;

a processor for notifying the issuer that the cardholder has received the stored value card.

32. A computer-implemented method for issuing a stored value card associated with a predetermined transaction network, an issuer, and a sponsoring entity, the method comprising:

creating one independent and separate account associated with the stored value card, wherein a sponsoring entity funds the account and the account is independent from any other account;

activating the independent and separate account;

issuing the stored value card to a cardholder by an issuer, wherein;

a) before issuance, the stored value card is marked with the cardholder'"'"'s name and at least one of a transaction network identification indicia associated with the transaction network and an issuer identification indicia associated with the issuer;

b) the stored value card is accepted wherever cards associated with the predetermined transaction network are accepted; and

c) the stored value card uses a one-way only transfer of identification information from the stored value card to the predetermined transaction network;

receiving notification by the issuer that the cardholder has received the stored value card;

notifying the sponsoring entity that the stored value card has been received by the cardholder;

passing account transaction records to the sponsoring entity; and

reloading the stored value card upon receiving a reload request from the cardholder or the sponsoring entity.