System and method for accepting closed loop cards and codes at a merchant point of sale

• US 8,820,634 B2
• Filed: 02/09/2010
• Issued: 09/02/2014
• Est. Priority Date: 02/09/2009
• Status: Active Grant

• Current Assignee: GiftCodes.com, LLC
• Original Assignee: GiftCodes.com, LLC
• Inventors: Wolfe, Jason, Romanelli, Mark, Akut, Sanjay, Kelly, Mike, Kelly, Mary Jane
• Primary Examiner(s): Le, Thien M
• Assistant Examiner(s): TAYLOR, APRIL ALICIA
• Application Number:
  US12/702,610
• Publication Number:
  US 20100205050A1
• Time in Patent Office: 1,666 Days
• Field of Search: 235/375, 235379-381, 235/383, 705/14, 705/14.1, 705/14.11, 705/14.37
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/34 using cards, e.g. integrated circuit [IC] cards or magnetic cards
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0208 Trade or exchange of goods or services in exchange for incentives or rewards
• CPC Class Codes: G06Q 30/0213 Consumer transaction fees

Abstract

Disclosed herein are systems, methods, and computer-readable storage media for redeeming a closed loop card/code funded with an amount of money. The system receives from a merchant point of sale an indication of use of a closed loop card/code not issued by the merchant and presented by a consumer, queries and receives a confirmation of an amount of money in an account associated with the closed loop card/code, presents the consumer with an offer to buy the closed loop card/code at a discount price, and upon accepting the offer, closes out the closed loop card/code and pays the discount price to the consumer. Paying the discount price can include applying the discount price to a purchase by the consumer at the merchant. The merchant can provide cash back to the consumer for excess value of the discount price over the consumer'"'"'s purchase. Merchants can apply more than the discount price.

Claims

1. A method of redeeming a closed loop card funded with an amount of money, the method comprising:

receiving, via a processor, from a point of sale of a merchant, an indication of use by a first consumer of the closed loop card not issued by the merchant;

receiving, via the processor, a confirmation of the amount of money in an account associated with the closed loop card;

presenting, via the processor, the first consumer with an offer to buy the closed loop card at a discount price;

upon the first consumer accepting the offer, and via the processor, verifying collection, at the point of sale, of the closed loop card, closing out the account associated with the closed loop card, and paying the discount price to the first consumer as a gift code, wherein the gift code is independent of a physical gift instrument; and

offering a new closed loop card having a new account to a second consumer.

2. The method of claim 1, wherein paying the discount price comprises applying the discount price to a purchase by the first consumer at the point of sale.

3. The method of claim 2, wherein the merchant provides cash back to the first consumer for the excess value of the discount price over the purchase by the first consumer at the point of sale.

4. The method of claim 1, wherein the merchant applies more than the offered discount price to the purchase.

5. The method of claim 1, wherein paying the discount price comprises applying the discount price to a merchant specific card of the first consumer.

6. The method of claim 1, wherein the method further comprises receiving the confirmation of the amount of money from a multi-process secure gateway.

7. The method of claim 1, wherein the closed loop card is a closed loop code not associated with a physical card.

8. The method of claim 1, wherein the gift code is one of a closed loop code and an open loop code.

9. A method of redeeming a closed loop card funded with an amount of money, the method comprising:

receiving, via a processor, an indication of use of a closed loop card not issued by a merchant and presented by a first consumer at a point of sale of the merchant;

receiving, via the processor, a confirmation of the amount of money in an account associated with the closed loop card;

receiving, via the processor, an indication that the first consumer has accepted an offer to sell the closed loon card;

based on the received indication, and via the processor, closing out the closed loop card and paying a second amount of money to the merchant as a gift code, wherein the gift code is independent of a physical gift instrument; and

offering a new closed loop card having a new account to a second consumer.

10. The method of claim 9, wherein the merchant applies a discount to a purchase by the first consumer.

11. The method of claim 10, wherein the merchant provides cash back to the first consumer for excess value over the second amount paid to the merchant.

12. The method of claim 9, wherein the merchant applies a discount greater than the second amount.

13. The method of claim 9, wherein paying the second amount comprises applying the discount price to a merchant specific card of the first consumer.

14. The method of claim 9, wherein the method queries and receives a confirmation from one or more closed loop card processors.

15. The method of claim 9, wherein the gift code is one of a closed loop code and an open loop code.

16. A system for redeeming a closed loop card funded with an amount of money, the system comprising:

a processor; and

a computer-readable medium storing instructions which, when executed by the processor, cause the processor to perform operations comprising;

receiving an indication of use of the closed loop card not issued by a merchant and presented by a first consumer at a point of sale of the merchant;

querying and receiving a confirmation of the amount of money in an account associated with the closed loop card;

receiving an indication that the first consumer has accepted an offer to sell the closed loop card;

based on the received indication, verifying collection at the point of sale of the closed loop card, closing out the account associated with the closed loop card, and paying a second amount of money to the merchant as a gift code, wherein the gift code is independent of a physical gift instrument; and

offering a new closed loop card having a new account to a second consumer.

17. The system of claim 16, wherein the merchant applies a discount to a purchase by the first consumer.

18. The system of claim 17, wherein the merchant provides cash back to the first consumer for excess value over the second amount paid to the merchant.

19. The system of claim 16, wherein the merchant applies a discount greater than the second amount.

20. The system of claim 16, wherein the instructions, when executed by the processor, further perform operations comprising:

applying the discount price to a merchant specific card of the first consumer.

21. The system of claim 16, wherein the instructions, when executed by the processor, further perform operations comprising:

querying one or more closed loop card processors.

22. The system of claim 16, wherein the gift code is one of a closed loop code and an open loop code.

23. A system for redeeming a closed loop card funded with an amount of money, the system comprising:

a processor; and

a computer-readable medium storing instructions which, when executed by the processor, cause the processor to perform operations comprising;

receiving from a merchant an indication of use of the closed loop card not issued by the merchant and presented by a first consumer at a point of sale of the merchant;

querying and receiving a confirmation of the amount of money in an account associated with the closed loop card;

receiving an indication from the merchant that the first consumer has accepted an offer to sell the closed loop card;

based on the received indication, verifying collection at the point of sale of the closed loop card, closing out the account associated with the closed loop card, and paying a second amount of money to the merchant as a gift code, wherein the gift code is independent of a physical gift instrument; and

offering a new closed loop card having a new account to a second consumer.

24. The system of claim 23, wherein the gift code is one of a closed loop code and an open loop code.

25. A method comprising:

receiving, via a processor, from a point of sale of a merchant an indication of use of a first code not issued by the merchant and presented by a first consumer, wherein the first code is electronic and independent of a physical gift instrument;

receiving, via the processor, a confirmation of an amount of money in an account associated with the first code;

presenting, via the processor, the first consumer with an offer to buy the first code at a discount price; and

upon the consumer accepting the offer and via the processor;

closing out the account associated with the first code;

paying the discount price to the first consumer as a second code, wherein the second code is electronic and independent of a physical gift instrument; and

offering a new gift code having a new account to a second consumer.

26. The method of claim 25, wherein each of the first code and the second code are one of an open loop code and a closed loop code.

27. The method of claim 25, wherein the second code is associated with the merchant.