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

• US 7,805,368 B2
• Filed: 05/31/2007
• Issued: 09/28/2010
• Est. Priority Date: 06/22/1998
• Status: Expired due to Fees

• 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, Norwine, Jeffrey, Deporte, Rebecca, Joines, Penny
• Primary Examiner(s): MEINECKE DIAZ, SUSANNA M
• Application Number:
  US11/755,810
• Publication Number:
  US 20070226141A1
• Time in Patent Office: 1,216 Days
• Field of Search: 705/38, 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 method for transferring cash from a sender to a receiver, the method comprising:

publishing an offer for a purchase card over a computer network;

receiving, by at least one computer processor, a request from the sender for the purchase card, wherein the sender is an individual;

creating, by at least one computer processor, an independent and separate account associated with the purchase card, which is associated with a predetermined transaction network;

providing the purchase card to the receiver, the receiver obtaining the purchase card in an unactivated state, wherein;

a) before the purchase card is provided, the purchase card is marked with a cardholder'"'"'s name, an identification number, and indicia identifying the predetermined transaction network;

b) the purchase card is accepted for payment wherever cards associated with the predetermined transaction network are accepted; and

c) the purchase card has an encodable portion for recording a variable amount of value;

receiving a contact over the computer network, from the receiver for activation of the purchase card;

receiving, from the receiver, security information;

activating, by at least one computer processor, the purchase card over the computer network;

crediting the purchase card with funds provided by the sender as an initial value by transferring the funds associated with the initial value into the independent and separate account and storing the funds in the independent and separate account, wherein the purchase card is usable by the receiver for transactions; and

loading, subsequent to the funding of the initial value, the purchase card upon receiving a load request from the receiver or the sender.

2. The method of claim 1 wherein the encodable portion comprises a magnetic strip.

3. The method of claim 1 wherein the agent is a third party processor.

4. The method of claim 1 wherein the agent is an activation center.

5. The method of claim 1 wherein the purchase card is activated by the agent in response to the receiver contacting the agent by telephone and providing the security information.

6. The method of claim 1 wherein the purchase card is activated by the agent in response to the receiver contacting the agent through a network and providing the security information.

7. The method of claim 1 wherein the contact from the receiver is received through the Internet.

8. The method of claim 1 wherein the sender provides funds for the purchase card:

from a bank account, the funds credited to the purchase card being debited from the bank account;

the method further including updating the sender with transaction information related to the funds credited.

9. The method of claim 1, wherein the purchased card is purchased as a gift for the receiver.

10. The method of claim 1, wherein the request is received via the Internet.

11. The method of claim 1, wherein the offer is published on a web site on the Internet.

12. The method of claim 1, wherein the sender and the receiver are the same individual.

13. A method for transferring cash from a sender to a receiver, the method comprising:

publishing an offer for a purchase card over a computer network;

receiving, by at least one computer processor, over the computer network, a request from the sender for the purchase card, wherein the sender is an individual;

creating, by at least one computer processor, an independent and separate account associated with the purchase card, which is associated with a predetermined transaction network;

providing the purchase card to the receiver, the receiver obtaining the purchase card in an unactivated state, wherein;

a) before the purchase card is provided, the purchase card is marked with a cardholder'"'"'s name, an identification number, and indicia identifying a sponsoring entity;

b) the purchase card is accepted for payment wherever cards associated with the predetermined transaction network are accepted; and

c) the purchase card has an encodable portion for recording a variable amount of value;

receiving a contact, from the receiver, to an agent for activation of the purchase card;

receiving from the receiver by the agent security information;

activating of the purchase card by the agent;

notifying the sender that the purchase card has been received;

receiving funds provided as an initial value by the sender; and

crediting the purchase card with the funds by transferring the funds associated with the initial value into the independent and separate account and storing the funds in the independent and separate account; and

loading, by at least one computer processor, subsequent to the funding of the initial value, the purchase card upon receiving a load request from the receiver or the sender.

14. The method of claim 13 wherein the encodable portion comprises a magnetic strip.

15. The method of claim 13 wherein the agent is a third party processor.

16. The method of claim 13 wherein the agent is an activation center.

17. The method of claim 13 wherein the purchase card is activated by the agent in response to the receiver contacting the agent by telephone and providing the security information.

18. The method of claim 13 wherein the purchase card is activated by the agent in response to the receiver contacting the agent through a computer network and providing the security information.

19. The method of claim 13 wherein the purchase card is activated by the agent in response to the receiver contacting the agent through the Internet and providing the security information.

20. The method of claim 13 wherein the sender provides funds for the purchase card from a bank account, the funds credited to the purchase card being debited from the bank account;

the method further including updating the sender with transaction information related to the funds credited.