Stored value cards and methods for their issuance

• US 7,418,398 B2
• Filed: 05/10/2006
• Issued: 08/26/2008
• Est. Priority Date: 10/03/2001
• Status: Expired due to Fees

• Current Assignee: First Data Corporation (Fiserv Incorporated), Western Union
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Pridgeon, Peter A., James, Kevin A., Cox, David L., Teixeria, Ryan G.
• Primary Examiner(s): ELISCA, PIERRE E
• Application Number:
  US11/433,144
• Publication Number:
  US 20060206436A1
• Time in Patent Office: 839 Days
• Field of Search: 705/1, 705/39, 705/64, 705/67, 705/71, 705/74
• US Class Current: 705/1.1
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/3437 the counter having non-monetary units, e.g. trips
• CPC Class Codes: G06Q 20/351 Virtual cards
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3829 involving key management
• CPC Class Codes: G06Q 20/383 Anonymous user system
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices

Abstract

A method for issuing both a virtual card and a physical card to a cardholder comprises issuing a virtual card to a cardholder, with the virtual card comprising an identifier and an associated database record of a stored value. A physical card is also issued to the cardholder. The physical card includes an identifier that is different from the virtual card identifier, and the physical card is in an inactive state until the physical card is activated by linking of the physical card identifier to the database record of the stored value.

Claims

1. A method for issuing both a non-physical virtual card and a physical card to a cardholder, wherein both the virtual card and the physical card is usable for conducting transactions against a funded value, the method comprising:

receiving at a processing system a request to receive both a physical card and a virtual card, along with a funded value that is associated with both the physical card and the virtual card;

using the processing system to first electronically issue a virtual card to a cardholder, the virtual card comprising an identifier and an associated database record of a stored value, wherein the virtual card is active upon issuance; and

receiving at the processing system a request to debit the funded value by a redemption amount from an electronic purchase over a network;

debiting the funded value by the redemption amount;

sending a physical card to the cardholder, wherein the physical card includes a card body and an identifier that is different from the virtual card identifier, and wherein the physical card is in an inactive state until the physical card is activated by linking of the physical card identifier to the database record of the stored value, and wherein the funded value of the physical card is the funded value less the redemption amount.

2. A method as in claim 1, further comprising transmitting from the processing system to a physical card issuing system information used to issue the physical card to the cardholder, whereby once activated, the physical card shares attributes, including any unused funded value, with the virtual card.

3. A method as in claim 1, further comprising performing at least one validation check prior to linking to the record of the stored value.

4. A method as in claim 3, wherein the virtual card further comprises a first personal identification number (PIN) that is stored in the database, wherein the physical card further comprises a second personal identification number (PIN) that is stored in the database, and wherein a validation check comprises comparing the physical card PIN and the virtual card PIN with corresponding PINs provided by the cardholder.

5. A method as in claim 4, wherein the validation check comprises querying the database to determine if the virtual card is both valid and active.

6. A method as in claim 4, wherein the validation check further comprises querying the database to determine if the physical card is in the inactive state.

7. A method as in claim 1, wherein the linking step comprises providing two pointers in the database to the record of the stored value, and wherein the two pointers comprise the virtual card identifier and the physical card identifier.

8. A method for issuing both a non-physical virtual card and a physical card that are each usable for conducting transactions against the account of a cardholder, the method comprising:

receiving at a processing system a request to receive both a physical card and a virtual card, along with a funded value that is associated with both the physical card and the virtual card;

issuing a virtual card to a cardholder, the virtual card comprising an identifier and an associated database record of a stored value, wherein the virtual card is in an active state upon issuance;

receiving at a processing system a request to debit the funded value by a redemption amount from an electronic purchase over a network;

debiting the funded value by the redemption amount;

issuing a physical card to the cardholder, wherein the physical card is issued after the virtual card is issued and includes a card body and a physical card identifier, and wherein the physical card is in an inactive state;

receiving a request to activate the physical card, wherein the request includes the physical card identifier; and

in response to the request, linking the physical card identifier to the database record of the stored value, with the stored value being previously debited by the redemption amount.

9. A method as in claim 8, wherein the physical card identifier is different from the virtual card identifier, and wherein the linking step comprises providing two pointers in the database to the record of the stored value, and wherein the two pointers comprise the virtual card identifier and the physical card identifier, whereby the virtual card is usable for transactions made by the cardholder prior to receipt and activation of the physical card, and whereby once activated, the physical card shares attributes, including any unused funded value, with the virtual card.

10. A method as in claim 9, further comprising performing a validation check prior to linking to the record of the stored value.

11. A method as in claim 10, wherein virtual card further comprises a personal identification number (PIN) that is stored in the database, wherein the physical card further comprises a personal identification number (PIN) that is stored in the database, wherein the request includes physical card and virtual card PINs, and wherein the validation check comprises comparing the physical card PIN and the virtual card PIN with the received PINs.

12. A method as in claim 10, wherein the validation check comprises querying the database to determine if the virtual card is both valid and active.

13. A method as in claim 10, wherein the validation check further comprises querying the database to determine if the physical card is both valid and in the inactive state.

14. A computerized system for linking a non-physical virtual card with a physical card for the same cardholder, the system comprising:

a physical card comprising a card body having an identifier;

a processing system; and

a database having a record of a stored value, a virtual card identifier that is associated with the stored value record, and the physical card identifier;

wherein the physical card is in an inactive state while the virtual card is in an active state;

wherein the processing system is configured to receive a request to debit the stored value record by a redemption amount based on a purchase made over an electronic network using the virtual card identifier; and

wherein the processing system is configured to link the physical card identifier to the stored value record after receipt of the physical card by a cardholder and to allow access to the stored value record using either card identifier once linked, thereby activating the physical card, with the stored value record being equal to the stored value less the redemption amount.

15. A system as in claim 14, wherein the virtual card identifier comprises a first pointer to the stored value record, wherein the processing system is configured to transmit to a physical card issuing system information used by the physical card issuing system to produce and issue the physical card upon receipt of a request to receive both the physical card and a virtual card that comprises the virtual card identifier, wherein the processing system is further configured to link the physical card identifier to the stored value record after receipt of the physical card by the cardholder and upon a request by the cardholder to activate the physical card, and wherein the request includes the physical card identifier, the physical card identifier comprising a second pointer to the stored value record, whereby the virtual card is usable for transactions made by the cardholder prior to receipt and activation of the physical card, and whereby once activated, the physical card shares attributes, including any stored value record, with the virtual card.

16. A system as in claim 15, wherein the processing system is further configured to perform a validation check prior to the linking.

17. A system as in claim 16, wherein database further includes a record of a virtual card personal identification number (PIN), wherein the physical card further comprises a personal identification number (PIN) that is stored in the database, and wherein the validation check comprises comparing the physical card PIN and the virtual card PIN in the database with corresponding PINs provided by the cardholder.

18. A system as in claim 16, wherein the validation check comprises querying the database with the processing system to determine if the virtual card is both valid and active.

19. A system as in claim 16, wherein the validation check further comprises querying the database with the processing system to determine if the physical card is in the inactive state.