GB2377071A

GB2377071A - Issuing an added value card

Info

Publication number: GB2377071A
Application number: GB0223163A
Authority: GB
Inventors: Gregory Phillips; Rebecca Deporte; Jeffrey Norwine; Penny Joines
Original assignee: First USA Bank NA
Current assignee: Chase Bank USA NA
Priority date: 1998-06-22
Filing date: 1999-01-25
Publication date: 2002-12-31
Anticipated expiration: 2019-01-25
Also published as: GB0223161D0; GB2377314B; GB2376787A; GB2376787B; GB2377071B; GB2377314A; GB0223160D0; GB0223163D0

Abstract

A method of issuing an added value or purchase card 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 added value card is of time limited use and preferably further funds cannot be added to the account once set-up. The account contains the recipients name, account number and amount and the card preferably has the recipients name, account number and logo of the issuer and/or associated credit network thereon. The card is activated once received by the recipient e.g. by phone and the purchaser can be informed that it is in use.

Description

-A 2377071

DEBIT PURCHASING OF STORED VALUE CARD FOR USE BY AND/OR

DELIVERY TO OTHERS

Field of the Invention

This invention relates to a system for purchasing or transferring of stored value or debit purchasing cards, which can be pre-aIranged to be given as a gin to a designated recipient. 5 Backg. ound of the Invention . On many occasions, consumers, other bank customers, credit card holders, and other persons find it is desirable to arrange for another person, perhaps a relative, to have access to a specified sum of money. For example, a parent relight want to arrange for a - -

. child to have access to money when the child is taking a trip or going away to colleges - lo One may also find it desirable to-mail a Oft. to another person who is geographically . distant. In these and other cases, it is often undesirable to give away or send cash. If lost . , or stolen, cash is practically unrecoverable. Traveler's checks are also undesirable as they must be purchased at a bank and are not acceptable for many types of purchases. Gin certificates are also undesirable because they require the recipient to purchase from the merchant that issued the gift certificate. These and other drawbacks exist to the aforementioned alternatives.

Summary ofthe Invention

An object of the invention is to overcome these and other drawbacks in existing purchase schemes.

\ Another object of the invention is to provide a method for issuing a purchase card comprising: presenting a purchaser with the opportunity to buy the purchase card, dete miriing whether the purchaser has sufficient fiends to pay for the purchase card, creating a purchase card account for a recipient designated by the purchaser; and issuing s the purchase card.

A further object of the invention is to provide a purchase card where the recipient activates the purchase card.

A further object of the invention is to provide a purchase card where the purchase card account contains a monetary amount determined by the purchaser of the purchase I o card.

A further object of the invention is to provide a purchase card where money can be added to the balance of an issued purchase card account.

.. - A further object of the invention is to provide a purchase card where the purchase - card is activated when the issuer of the purchase card is notified that the recipient has 15 received the purchase card.

A further object of the invention is to provide a purchase card where the issuer of the purchase card notifies the purchaser Mat - e recipient has received the purchase card.

A further object of He invention is to provide a purchase card where the purchaser may designate with which merchants the purchase card may be used.

20 A further object of the invention is to provide a purchase card where the purchase card is activated for a predetermined period of time.

Another object is to provide a method for issuing a purchase card as a rebate award composing: issuing a credit card to a cardholder, said credit card being associated with a sponsor. calculating a rebate amount based upon cardholder purchases made with said credit card, issuing a purchase card to a cardholder or to a recipient designated by 5 said cardholder, said purchase card having a purchase value determined by said rebate amount. A further object of the invention is to provide a purchase card where the recipient of the purchase card activates the card. -

A further object of the invention is to provide a purchase card where Me recipient lo activates the purchase card by notifying the issuer that the recipient has received the purchase card.

.. A fisher object of the inventior is to provide a purchase card where the purchase - card is activated for a predetermined period of time -- A further object of We invention is to provide a purchase card where the rebate is 15 calculated based on all purchases made with We credit card.

A further object ofthe invention is to provide a purchase card where the rebate is calculated based on purchase Tom the sponsor made with the credit card.

A further object of the invention is to provide a purchase card where the sponsor notifies the issuer of the amount of rebate due a credit card holder, and the issuer creates a 20 purchase card in that amount.

A fiercer object of the invention is to provide a purchase card where the rebate is based on the monetary value of the purchases.

Another object of the present invention is to provide a method for converting a purchase card into a credit card comprising: creating a purchase card account for a recipient designated by the purchaser; issuing the purchase card; receiving a request from the recipient to convert the purchase card into a credit card; deterrnming whether the 5 recipient meets predetermined credit criteria to convert the purchase card into a credit card; creating a credit card account; and converting the purchase card into a credit card.

A further object of the invention is to provide a purchase card where the balance of the purchase card account is transferred to the credit card account.

A further object of the invention is to provide a purchase card where the credit lo cards is immediately activated upon being converted -from a purchase card Other objects and advantages exist for the present invention.

Brief Description of the Drawinos

Figure I shows a flow diagram for a portion of the purchase card system.: -! Figure 2 shows a flow diagram for another portion ofthe purchase card system:: 5 Detailed Description of the Preferred Embodiments - -

One embodiment ofthe purchase card system is shown in Fig. 1. In this embodiment the purchase card process begins with an offer to purchase a gift card at step 100. The offer may be in any suitable form that would notify prospective purchasers 105 of the availability of the purchase card. For example, a written solicitation may be mailed 20 or otherwise distributed to potential purchasers 105. Me offer may also be in the form of oral notification, for example, a telephone call to prospective purchasers 105.

Altemahvely, the offer may be published over a computer networl, for example, on an

Interpret Web site. Other forms of offering the sale of a purchase carfare also possible.

one embodiment of the invention, offers are made to prospective purchasers who already have a financial relationship with the offeror. Other potential purchasers may also be offered the opportunity to obtain a purchase card.

5 The offer may be accepted by a purchaser 105 by notifying a customer service center 110. The acceptance may be in any form acceptable to the customer service center 1 10. For example, the purchaser may mail, fax, or otherwise transmit a written acceptance, telephone an acceptance, or electronically transmit, for example, via Web Site, an acceptance by computer or other suitable device. At step 120, the customer 10 service center 110 receives pe.rtinent.information to identi the purchaser 105 and the purchaser's desired spending limit for the purchase card. For example' the customer service center rnay.identify the purchaser 10 by name,: address credit card account ..... number, social security number, other unique identifiers or a combination of identifiers. - - -

At step 130, the customer service center 120 is checked to verify that the caller or s purchaser was included in the solicitations for this program. If the caller or purchaser was not originally solicited, customer service 120 determines whether to extend an offer in step 135.

If the caller or purchaser was solicited 130, certain purchaser 105 information may be accessed at 140. If, for example, the purchaser unlashes to pay for the purchase card 20 win a credit card, the purchaser's credit card account information may be accessed. For example, Me purchaser's available credit limit may be accessed at 145 to verify that sufficient credit is available to cover the spending amount of the purchase card. If the

\ available credit is insufficient, the purchaser 105 may be so informed at loo. The purchaser 103 may be given the opportunity to modify the purchase card spending amount, at 155, in order to ensure that the purchase amount does not exceed the available credit s The process may terrn nate at 160 if, for example, the purchaser 105 does not wish to modify the purchase amount.

After.it has been determined that the purchaser's available credit is sufficient, a transaction may be posted to the purchaser's credit card for the amount of the purchase at 170. In another embodunent of the present invention, a purchaser may use a check, cash, -. 1 o or other financial methods to obtain a purchase. card. -Regardless of the purchasing -. method, the issuer of the purchase card must determine- whether the purchaser has: sufficient fimds to.purchase the card. - -. - - a When the purchase card is paid for by credit or bank account-the purchaser's account balance is updated at 175 to reflect Me purchase. We account balance lo - information, as well as information identifying the purchaser 105 and the recipient, may be stored in a retrievable and accessible fashion. For example, the innovation may be stored in computer database 180. After the purchaser 105 has paid (or authorized payment) for the purchase card, and it is posted to a credit card account, the acceptance process is complete and the acceptance process terminates at 160.

do An account for We purchase card is created at 190. This may be performed by a third party processor that establishes and manages purchase card accounts. for example, at 200. Creation of the purchase card account may comprise various actions, such as,

- recording the recipients 215 name, address and phone number, imprinting a card with an account number, a recipient name and an expiration date, encoding the card to record the purchase value stored thereon, and other actions, such as, for example, preparing account fulfillment documents (e. g. card carrier activation, etc.).

5 When the purchase card account is complete, the card is delivered. In one embodiment of the invention, card may be affiliated with a particular network, such a credit network, or debit network. For example, a card may be affiliated with the VISAS) network. -The delivery may be to the purchaser 105 or to the recipient 215, as shown at 210. The place of deliver may be arranged during the.initial purchase of the card or -' o other suitable time before delivery.. -..:.. -.-.

:.. Information regarding an account is sent to.account file 290, where an account can be monitored. In one embodunent, account file 220 allows monitoring of the current ... balance of an account, any activity n.the account, including debits and credits,. -..

transaction updates;. and the- like. Other information about an accounts such-as purchase IS dispute resolutions,-the history provided by the customer, and account-status, may also be monitored. Before the purchase card can be used to make purchases, it must be activated as shown in Fig. 2 at 230. Activation may be accomplished in any suitable manner. For example, the recipient 215 of the card may place a telephone call to an activation center 20 240. Activation center 240 may act as a telemarketing vendor by verifying information about the recipient (i.e. name, address, telephone number, etc.) before the purchase card is activated. The activation center 240 may then transmit the data about the recipient to

Data Service 200 to activate the purchase card for use. Activation center 240 may also modify information about a recipient, such as, for example, a change of address Other homes of activation, such as by computer network may also be used During activation certain verifications may be made at 250 to ensure that the intended recipient 215 is the person attempting to activate the purchase card. These security checks 250 may entail questions about personal infonnation (e g, name, address, telephone number, etc.) or may utilize other well known methods of authenticating the recipient 215. If the person attempting to activate the purchase card does not pass the - secunty check 230, the purchase card will be dented activation at 255 and the activation -

0 process may terminate at 260. If the person attempting to activate the purchase card - - -

passes the security check 250, they may be prompted at 252 for more information. The information may be used for subsequent security checks, should they be required, or to verify or complete Me purchase card account information. - i i - i-

After activation the purchase card is ready for use. In some embodiments of the 15 inVentiorl- e activation process will end at this point. 1herecipie-nt 915 may now use the purchase card to make purchases where ever, for exernple, VISAS) cards are accepted.

Each time a purchase is made use the card, the amount of the purchase will be debited Rom the card's available balance. The purchase card will continue to operate as long as a positive balance remains on the card. Some embodiments of the purchase card may have No the capacity to have additional purchase value added to them after they have been activated.

If the recipient of a purchase card is someone other than the purchaser, the issuer of the card may notify the purchaser regarding venous aspects of the card. For example, in one embcdunent of the invention, the issuer could notify the purchaser that the purchase card has been received and activated by the intended recipient An iSSUer may s also notify a purchaser where the purchase card is being used, or what products are being purchased with the purchase card.

Some embodiments of the purchase card will include an expiration date. After the expiration date has passed the purchase card will be deactivated and cease to operate. En -, another embodunent of the present invention, a recipient or a purchaser of a purchase I - to card may add to the balance ofthe purchase card account. This may take place in a manner substantially snmilar to the original purchasing of the purchase card; For - example, a recipient of a purchase card may request that an amount be posted to the recipient's credit card and that the same amount then be-credited to the recipient's -

purchase card account. Other methods of adding to the balance of a purchase card 5 account may also be used.., r; i,:,:. -..

Another embodunent of the invention allows the recipient 215 to convert the purchase card into a credit card. Conversion may be accomplished in the following manner. The recipient 215 calls the activation center 240 to activate the purchase card and the security check 250 may be performed in the usual manner. ARer passing Me 20 security check, the age of the recipient 215 is determined at 270. If the recipient 215 is an adult (e.g. over the age of 18) an offer to convert the purchase card into a credit card may be extended at 271. At step 275 the recipient 215 may decline the offer to convert, in

which case the process may terminate at 280 If the recipient 915 elects to convert the purchase card to a credit card the activation center 240 may capture additional data 285 from recipient 21S, in order to complete a credit card application At step 290 the credit card application data is forwarded to a credit decisioning of Lice 300. I he credit 5 decisioning office 300 may make inquiries to a credit bureau 305, for example, obtaining a credit report on the recipient 215. At 310 the decision is rendered whether to approve the credit card application. If the application for a credit card is declined at 31S, the recipient 215 may be notified at 3- 0. Notification may be in any suitable form, for example, a lever explaining Me declined application may be mailed at 320 to -the recipient 0 215. Other forms of notification may also be used to notifier recipient 215 of the declined application. --; Even though the credit card application is declined at 31 0, the purchase card is activated for use At 33O, the account-setUngs -al-l-owing a card-to be used at merchants are - - - sent to the data service 200 and the card will be activated as a purchase card account.

5 Formation pertaining to the purchase card account is stored in a retrievable and - -I accessible manner. For example, the purchase card account information may be stored in a computer 3a2.

If We decision at 310 is to accept Me application for a credit card, the recipient 215 may be notified at 340. Again, notification may be in any suitable Bonn, for example, 20 a letter or other suitable notification. Regardless ofthe decision whether to convert the purchase card into a credit card, Me purchase card is activated at the end of Me activation call If Me purchase card is not already active, it may be activated at 345 At 350 the Am.

-\ purchase card is converted to a credit card. The credit card will function in a manner usual for such credit instruments. For example, a credit limit may be assigned, periodic account activity statements may be generated arid finance charges may be applied to any

outstanding balance. In one embodiment, any remaining balance from the purchase card 5 account may be transferred and applied to the credit card account. At 355 an update is sent to a retrievable data storage system, for example, computer 360. The update 355 sends credit card application decisions into a database.

In another embodiment of the purchase card, a financial institution (e.g., a Barth) issues a credit card to a. cardholder. The card may be a cobranded card issued in 0 cooperation win a sponsor this embodiment, the sponsor offers a rebate to the cardholder based upon the dollar value amount of purchases made with Me co-branded credit card. The rebate may apply. to all purchases made or just to purchases made from the sensor. The rebate may be.calculated in a manner specified by the terms of the. ; -.

.. cardholder agreement or other disclosures to the cardholder. En one embodiment of the.,

Prevention, disclosure about the rebate is ?ro. rided to the cardholder in a separate form:--

included whit the car&older agreement. For example, the sponsor may offer a flat percentage rebate for purchases made. In one embodiment of the invention, the card issuer calculates the rebate due the cardholder based on the balance paid.

In another embodiment, the sponsor notifies the financial institution of the amount 20 of rebate to be awarded to the cardholder. The financial institution will then issue a purchase card for the amount of the rebate. The purchase card may be used for purchases in the above described manner, for example, everywhere VISAS is accepted, or the

purchase card may be used for purchases solely with the sponsor or other designated entities. Other embodiments and uses of the invention will be apparent to those skilled in the art from consideration ofthe specification and practice ofthe invention disclosed

S herein. The specification and examples should be considered exemplary only. The scope

of the invention is only limited by Me claims appended hereto.

.! . ... ,......

Claims

) Claims

1. A computer implemented method for issuing a stored value card affiliated with a predetermined credit network and an issuer, wherein the credit network and the issuer each have separate identification indicia, the method comprising: presenting an individual purchaser with an opportunity to buy the stored value card; determining with a computer processor whether the individual purchaser has sufficient funds to pay for the stored value card; creating in a computer database an independent stored value- card account for a recipient - designated by the individual purchaser, the independent stored value card account only accessible by the recipient such that the individual purchaser is unable to add funds to the independent account beyond the initial issue amount, wherein the independent stored value card . account comprises information about: a) the recipient's name; b) a stored value card account number; and c) a stored value card purchase amount; issuing the stored value card, wherein the stored value card is marked with the designated recipient's name and at least one of the credit network identification indicia and the issuer identification indicia, and wherein the stored value card is accepted for purchases anywhere the predetermined credit network is accepted for purchases; receiving notification from the recipient that the stored value card has been received; and activating the stored value cared, where the stored value card is active for a predetermined period of time.

2. The computer implemented method according to claim 1, where the independent stored value card account contains a monetary amount detennined by the individual purchaser.

3. The computer implemented method according to claim 1, where money can be added to an issued stored value card account by the recipient.

4. The computer implemented method according to claim 1, further comprising the step of notifying the individual purchaser that the stored value card has been received by the recipient.

5. The computer implemented method according to claim 1, where the stored value card is activeforapredeterminedperiodoftime. ...

6. The computer implemented system for an issuer to issue a stored value card affiliated with a predetermined credit network wherein the credit network has identification indicia, the system comprising: means for presenting an individual purchaser with the opportunity to buy the stored value . card; means for determining whether the individual purchaser has sufficient funds to pay for - the stored value card; means for creating a stored value card account for a recipient designated by the individual purchaser wherein the stored value card account comprises information about: a) the recipient's name b) a stored value card account number; and c) a stored value card purchase amount; try

means for issuing the stored value card, wherein the stored value card is accepted anywhere credit cards affiliated with the predetermined credit network are accepted and wherein the stored value card is marked with the credit network indicia; means for receiving notification from the recipient that the stored value card has been received; and means for activating the stored value card, where activation of the stored value card comprises activating the stored value card for a predetermined period of time.

7. The computer implemented system according to claim 6, where the stored value card account contains a monetary amount determined by the individual purchaser.

8. The computer implemented system according to claim 6, where means for activating the stored value card further comprises means for the issuer of the stored value card to notify the individual purchaser that the stored value card has been received by-the recipient.

9. The computer implemented system according to claim 6, where the stored value card is Slither marked with the name of the designated recipient.

10. A computer implemented method for an issuer to issue a stored value card as a rebate award, wherein the stored value card is affiliated with a predetermined credit network and the issuer and where the credit network and the issuer each have separate identification indicia, the method comprising: issuing a credit card to a cardholder, said credit card being associated with a sponsor; calculating on a computer processor a rebate amount based upon cardholder purchases made with said credit card; 1<

\\ creating in a computer database an independent stored value card account for a recipient designated by the cardholder, the stored value card having a purchase value determined by said rebate amount and the independent stored value card account only accessible by the recipient such that the issuer is unable to add fiends to the account beyond the initial issue amount, wherein the independent stored value card account comprises information about: a) the recipient's name b) a stored value card account number; and c) a stored value card deposit amount; issuing the stored value card, wherein the stored value card is marked with the designated recipient's name and at least one of the credit network identification indicia and the issuer identification indicia, and wherein the stored value card is-accepted for purchases anywhere the predetermined credit network is accepted for purchases; receiving notification *om the recipient that the stored value card has been received; and activating the stored value card, where activation of the stored value card comprises activating the stored value card for a predetermined period of time.

1 1. The computer implemented method according to claim 10, where the step of receiving notification from the recipient activates the stored value card.

12. The computer implemented method according to claim 10, where the rebate is calculated based on all purchases made with the credit card.

13. The computer implemented method according to claim 10, where the rebate is calculated based on purchases made with the credit card from the sponsor.

(W

14. The computer implemented method according to claim 10, where the rebate is calculated based on the monetary amount of the purchases.

15. The computer implemented method according to claim 10, where the sponsor notifies the issuer of the amount of said rebate, and said issuer creates said stored value card

16. A computer implemented system for an issuer to issue a stored value card as a rebate award, wherein the stored value card is affiliated with a predetermined credit network and the issuer and where the credit network and the issuer each have separate identification indicia, the . system comprising: . .. means for issuing a credit card to a cardholder, said credit card being associated with a sponsor; means for calculating a rebate amount based upon cardholder purchases made with said credit card; means for creating an independent stored value card account for a recipient designated by the cardholder, the stored value card having a purchase value determined by said rebate amount, the independent stored value account such that the issuer is unable to add funds to the account beyond the initial issue amount, and wherein the independent stored value card account comprises information about: a) the recipient's name; b) a stored value card account number; and c) a stored value card deposit amount; means for issuing the stored value card, wherein the stored value card is marked with the designated recipient's name and at least one of the credit network identification indicia and the

issuer identification indicia and wherein the stored value card is accepted for purchases anywhere the predetermined credit network is accepted for purchases; means for receiving notification from the recipient that the stored value card has been received; and means for activating the stored value card, where activation of the stored value card comprises activating the stored value card for a predetermined period of time.

17. The computer implemented system according to claim 16, where the rebate is calculated based on all purchases made with the credit card.

18. The computer implemented system according to claim 16, where the rebate is calculated based on purchases made with the credit card from the sponsor.

19. The computer implemented system according to claim 16, where the rebate is calculated based on the monetary amount of the purchases.

20. The computer implemented system according to claim 16, further comprising: means for the sponsor to notify the issuer of the amount of the rebate; and means for the issuer to create the stored value card.

1% 47004.000035 WASHINGTON 308583vl