WO2001015101A1 - Electronic funds disbursement system and method - Google Patents

Electronic funds disbursement system and method Download PDF

Info

Publication number
WO2001015101A1
WO2001015101A1 PCT/US2000/020145 US0020145W WO0115101A1 WO 2001015101 A1 WO2001015101 A1 WO 2001015101A1 US 0020145 W US0020145 W US 0020145W WO 0115101 A1 WO0115101 A1 WO 0115101A1
Authority
WO
WIPO (PCT)
Prior art keywords
account
card
distribution
electronic funds
data
Prior art date
Application number
PCT/US2000/020145
Other languages
French (fr)
Other versions
WO2001015101B1 (en
Inventor
Donald F. Jemella
Elizabeth Cranmer
Robert M. Stache
Original Assignee
Jp Morgan Chase Bank
Priority date (The priority date is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the date listed.)
Filing date
Publication date
Application filed by Jp Morgan Chase Bank filed Critical Jp Morgan Chase Bank
Priority to AU62352/00A priority Critical patent/AU6235200A/en
Publication of WO2001015101A1 publication Critical patent/WO2001015101A1/en
Publication of WO2001015101B1 publication Critical patent/WO2001015101B1/en

Links

Classifications

    • G—PHYSICS
    • G07—CHECKING-DEVICES
    • G07F—COIN-FREED OR LIKE APPARATUS
    • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
    • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
    • G07F7/10—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means together with a coded signal, e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
    • G07F7/1008—Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q40/00—Finance; Insurance; Tax strategies; Processing of corporate or income taxes
    • G06Q40/02—Banking, e.g. interest calculation or account maintenance
    • G—PHYSICS
    • G07—CHECKING-DEVICES
    • G07F—COIN-FREED OR LIKE APPARATUS
    • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
    • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
    • G07F7/10—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means together with a coded signal, e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
    • G07F7/1025—Identification of user by a PIN code

Definitions

  • the present invention relates to a system and method for
  • card refers to a portable device, similar
  • ATM Electronic cash disbursement card systems, which utilize
  • Account holder indicative data typically includes a identification (ABA) number and account number, possibly including one
  • the customer provides account holder indicative of
  • PIN Personal Identification Number
  • POS point of sale terminal
  • the present invention provides a system and method for
  • the account types include a payroll type and a disbursement type.
  • the customizable account attributes include an account type, an account
  • an electronic circuit According to one aspect of the present invention, an electronic circuit
  • the account configuration data includes the designation of one of a plurality of account types and the designation of one or more
  • a distribution processor receives the plurality of account types.
  • the account has parameters
  • a network interface couples the distribution processor to a communication
  • the network interface transmits account option data and funding
  • account data to at least one user computer, and receives account
  • a storage unit configured to store configuration data from the at least one user computer.
  • the account option data has a plurality of
  • a central processing unit executes programmatic software
  • the account configuration data defines
  • configuration data includes the designation of one of a plurality of account
  • An account is created having parameters corresponding to the
  • Fig. 1 is a diagram of a hardware arrangement of the system of the
  • Fig. 2 is a diagram of an alternative hardware arrangement of the system of the present invention.
  • Fig. 3 is a block diagram of the function elements 3f the distribution
  • Fig. 4 is a flow chart showing the operation of the electronic funds
  • Fig. 5 is a flow chart showing the process of establishing a card
  • Fig. 6 is a flow chart of the card account funding processes.
  • references to physical cards include any
  • Fig. 1 a card-based electronic funds
  • funds distribution system 2 preferably comprises one or more user
  • computers 4 communicating with distribution processor 6 via a
  • Communication network 8 can be any
  • Electronic funds distribution system 2 also comprises a customer
  • Distribution processor 6 customer
  • account system 10 and host system 12 are preferably maintained and
  • LAN local area network
  • wide area networking
  • User computers 4 can also communicate with distribution processor
  • Link 14 is typically a serial link
  • Link 14 can be a point-to-
  • account system 10 and host system 12 are typically main frame computing devices, they are not limited to main frames. It is contemplated that
  • customer account system 10 and host system 12 can be any type of distribution system 6, customer account system 10 and host system 12.
  • System 2 also comprises manufacturing system 16
  • Manufacturing system 16 is preferably a card manufacturing
  • system 2 can
  • distribution processor 6 uses
  • manufacturing system 16 receives data from distribution processor 6 via
  • distribution processor 6 communicates with communication network 8 via
  • Authentication processor 18 includes a
  • Authentication processor 18 maintains a database (not shown) which is
  • authentication processor 18 as an authorized user of system 2 before
  • 18 can be any size computing device which can accommodate the quantity
  • computer 4 is typically associated with the customer, for example, as an
  • the card is presented and whose account is funded by the customer.
  • service provider refers to the owner and/or operator of the
  • distribution processor 6 preferably includes a central processing unit (CPU) 20 used to execute software code in order to control
  • RAM access memory
  • network interface 26 to transmit
  • Distribution processor 6 also resides in system 12 and authentication processor 18. Distribution processor 6 also resides in system 12 and authentication processor 18.
  • a storage device 28 such as a hard disk drive, floppy disk drive,
  • Input devices 30 include mice,
  • keyboards keyboards, trackballs, pens and other devices suitable for entering data into
  • distribution processor 6 The various components of distribution processor 6 need not be
  • storage device 28 may be located at a site which is
  • Distribution processor 6 receives, processes, distributes and transmits data
  • system 12 in order to create and maintain card accounts by presenting card account types and predetermined account attributes corresponding to these
  • processor 6 from customer account system 10 and/or host system 12 and
  • the structural elements of user computer 4 are the same a those for
  • components may be adjusted to make user computer 4 suitable for a user.
  • user computers 4 may be INTEL Pentium-based
  • processor 18 are also comprised of the same structural elements as
  • authentication processor 18 may be an INTEL Pentium-based
  • customer account system 10 may be a main frame computer maintaining hundreds of thousands of funding accounts. Also,
  • host system 12 and authentication processor 18 can run the same or
  • WINDOWS different operating systems, including but not limited to, WINDOWS,
  • a significant aspect of the preferred embodiment of system 2 is that
  • processor 6 using communication software such as a standard Internet web
  • references to this specification are cited herein, references to this specification.
  • certain applets such as JAVA applets
  • the web browser interface on user computer 4 can, therefore, be customized by a JAVA applet sent from distribution
  • processor 6 to user computer 4. This allows upgrades and enhancements to
  • HTML hypertext markup language
  • System 2 allows a user to quickly and easily establish and maintain
  • system 2 provides a
  • card accounts can be established to create cards.
  • card accounts can be established to create cards.
  • card accounts can be established by the
  • Cards and card accounts can be co-branded and affiliated with, for
  • a retail institution or a credit card company to allow the holder to
  • card accounts can also be associated with one or more of these uses. For example,
  • a payroll card issued by an employer can also be periodically
  • distribution processor 6 customer account 10 and/or host system 12.
  • distribution processor 6 maintains an electronic site
  • System 2 provides four main functions, namely, establishing (creating)
  • the user is authenticated, preferably based on a user ID and
  • step 36 maintain an account (step 38) or administer an account
  • step 40 In the case where a user wishes to fund a newly created or
  • distribution processor 6 executes card account
  • step 42 When the user wishes to maintain an account,
  • distribution processor 6 allows the user to select and then executes one or
  • step 46 In the case of step 42, step 44 and step 46, user
  • Step 42, step 44 and step 46 are described in detail below.
  • distribution processor 6 retrieves card type data and account attribute data corresponding to the card types from storage device 28 and transmits this
  • attribute data provided to user computer 4 are preferably arranged such that
  • Card account types can include any of the above-described types,
  • a payroll type card account is an account
  • a disbursement type account is any account into which the customer's
  • a credit card debit card type for example, a credit card debit card type, an insurance proceeds type and a
  • card account types can be associated with more than one use, for example,
  • the payroll type card can also act as an insurance proceeds card type, loan
  • CPU 20 reads the account attribute data from
  • HTTP transfer protocol
  • screen is preferably arranged as a pull-down or check box screen which
  • the predetermined account attributes which may be associated with
  • one or more card account types include, but is not limited to, an account
  • one or more attributes may not be
  • customer may be a retail customer who never wants their gift cards
  • system 2 can be arranged to
  • the account type attribute determines the nature and duration of the
  • Options for account type include, but are not limited to, a
  • the account For example, in the case of a payroll account card, the account
  • a retail establishment funding a gift card may
  • a pre-funded account is an account with a positive monetary balance
  • a gift card is an example of a pre-funded
  • a zero-balance account is an account which has a zero balance
  • the account is funded as money is withdrawn and the account goes
  • system 2 can be easily
  • the account structure attribute dictates the manner in which the card
  • Options for the account structure attribute include a normal option and a
  • a disbursement type card account is typically a sub-account
  • the funding methodology account attribute allows the customer to
  • methodology options include automated clearing house, on-line banking,
  • Automated clearing house funding refers to fund transfers
  • the service provider's on-line banking platform can be used to
  • Electronic funds transfer refers to those domestic wires or
  • Electronic lock box funded accounts are those accounts which are funded
  • an Internet-based card-less funding account is of the electronic lock box
  • the card issue type attribute allows the customer to select whether
  • the physically issued card is a permanent or temporary card.
  • the customer can additionally select whether a
  • Options allow the customer to indicate that the card issue type is a
  • option designates that the temporary card is being treated as a permanent
  • distribution processor 6 to identify the card and associate it with the proper
  • the account configuration method attribute defines whether the
  • configuration method attribute include on-line and off-line. On-line will
  • the off-line option indicates that account creation, funding, maintenance
  • the check writing indicator attribute allows a customer to designate
  • writing indicator is a binary indicator corresponding to one of either
  • distribution processor 6 submits
  • PIN generation method attribute allows a customer to choose the
  • PIN identification code
  • option preferably causes distribution processor 6 to generate the PIN
  • the PIN can also be generated by
  • customer account system 10 host system 12 or manufacturing system 16
  • manufacturing system 16 is a card manufacturing system.
  • PIN selection or PIN changes can also be initiated by the card holder
  • PIN refers to a numeric code, typically a
  • a PIN is usually assigned by the institution issuing the card, and is
  • a PIN can also be chosen by the
  • PIC polypeptide
  • indicator attribute has a binary option by which the user can indicate that
  • the card and PIN mailing addresses are the same or that they are different.
  • processor 6 with the addresses for both the physical card as well as the PIN
  • This address data is part of the indicative data.
  • the statement option attribute allows the customer to choose among
  • processor 6 or another system such as customer account system 10 or host
  • option is preferably defined by a user during the account administration
  • Sub-account statements can be generated for specific card types.
  • HTML code generated and transmitted to user computer 4
  • the display or depresses a particular predefined key, to cause user terminal
  • configuration data can be stored in the storage device of user computer 4 for off-line or batch transmission to distribution processor 6 either via
  • communication network 8 link 14 or by electronic media.
  • predetermined account attributes includes an indication of the particular
  • the user may designate a
  • account structure is normal and which is funded by electronic funds
  • the card issue type may be designated as a permanent card
  • the user may also designate this payroll account
  • distribution processor 6 confirms receipt of the
  • Distribution processor 6 validates the received configuration data to ensure
  • step 54 If the data is invalid, the user is notified of such and
  • the card holder accounts are created (step 56).
  • account data Once the card holder account has been created, account data
  • step 58 preferably to user computer 4 via communication network 8 (step 58).
  • transmitted data can be in the form of a screen display, but is preferably an
  • created account data transmitted to the customer preferably
  • validation step 54 can
  • step 56 The account creation processes in step 56 are explained in detail
  • Fig. 5 is a flow chart detailing the steps necessary
  • Distribution processor 6 executes the tasks necessary to establish
  • account holder records (step 48). Establishing account holder records
  • customer account system 10 and host system 12.
  • customer account system 12 For example, customer account
  • system 10 is preferably used as the customer service interface to customers
  • the card holder or the company can be transferred from distribution
  • processor 6 can be arranged to act as the focal point for account holder
  • processor 6 establishes a database record in storage device 28 which
  • distribution processor 6 evaluates the check writing indicator attribute to
  • step 52 determine whether printed checks are necessary. If printed
  • distribution processor 6 generates and transmits an
  • step 54 In the
  • distribution processor 6 assigns a card number, for example, a
  • manufacturing system 16 is a card manufacturing system
  • manufacturing system 16 can produce the card and mail it to the designated
  • processor 6 for incorporation into the card holder's account record in
  • system 2 can be arranged such that distribution processor 6
  • renewable account can be incrementally funded by selecting the fund
  • Fig. 6 is a flow chart of the card account funding processes of the
  • the list is preferably based on the customer upon whose behalf
  • the user is working, and based on the user's authorization level.
  • the user can manually enter the card account number, or search
  • step 60 be implemented as part of step 60.
  • the user is also prompted to enter
  • the funding amount for each card account can be determined automatically, for
  • distribution processor 6 calculates the
  • step 62 and transmits the required funding account balance
  • balance represents the minimum balance required to fund the card accounts
  • These accounts include the newly created accounts
  • funding account balance can be met are retrieved from storage device 28 or
  • the account system 10 is the repository for the funding accounts.
  • account balance transmitted to user computer 4 corresponds to the amount
  • User computer 4 preferably displays the funding accounts and
  • funding account balances in a format which allows a user to select the
  • card accounts can be funded in a number of methods which include, but are not limited to, clearing house credit, funds transfer, electronic card swipe,
  • funding refers to encoding the funding amount on the card via magnetic
  • the user evaluates the potential funding accounts presented on user
  • step 66 to fund the selected, for example created, card accounts.
  • User computer 4 transmits the selected accounts and funding
  • Distribution processor 6 (step 68).
  • card accounts can be funded directly
  • IP A Internet payment account
  • funding entity for example a consumer for whom the account holder has
  • funding entity can obtain the account holders bank identification and
  • the funding entity obtains this information electronically from the service where it contacted
  • the consumer can obtain the necessary
  • the card holder account to electronically purchase goods and services via a
  • a user selecting the account maintenance function in step 38 is
  • Maintenance functions include requesting a
  • processor 6 transmits an electronic form, preferably an HTML form, to
  • created card account is preferably prompted to enter the created card
  • Reports preferably include an electronic report of the total accounts
  • distribution processor 6 transmits a number
  • the selected distribution processor administration process causes
  • distribution processor 6 to execute an appropriate administrative function.
  • Distribution processor administrative functions include administering company security account data, administering
  • card account starter kit comprises a card and account number, possibly
  • the starter kit can be used for permanent or
  • company account security data allows a user to create and/or modify new
  • processor 6 creates the new user account, and/or transmits this data to
  • authentication processor 18 to create a user account on that device.
  • the administering company account profile data function allows a
  • account data function causes distribution processor 6 to transmit
  • the present invention advantageously provides a system which is capable of accepting card account creation data in a multitude of forms via
  • the present invention allows to control the communication channels.
  • system 2 does not require
  • present invention can use existing technology such as magnetic stripe
  • attributes of each card type are determined by the customer during the transaction
  • the present invention allows customers to easily fund accounts
  • the distribution processor i.e., the service provider.

Abstract

A system and method for electronically disbursing funds is provided in which no paper documentation need be completed or analyzed by the account holder, system provider or owner of the funding account. The system and method allows a user to create and maintain accounts in which there is at least one user computer and a distribution processor. The user computer generates account configuration data for at least one account. For each account, the account configuration data includes the designation of one of a plurality of account types and the designation of one or more predetermined account attributes corresponding to the designated one of the plurality of account types. The distribution processor receives the generated account configuration data from the user computer and causes an account to be created in which the account has parameters corresponding to the received account configuration data.

Description

ELECTRONIC FUNDS DISBURSEMENT SYSTEM AND METHOD
BACKGROUND OF THE INVENTION
The present invention relates to a system and method for
establishing and maintaining card-based accounts by electronically
disbursing funds over a communication network, and more particularly, to
a system and method which provides an automated paperless process for
establishing and maintaining a payroll card or other type of card-based
account defined by one or more user selected predetermined attributes such
as account type, account structure, funding methodology, type of issued
card, maintenance method, etc.
As used herein, the term "card" refers to a portable device, similar
in size to a debit or credit card, which is used to access a financial account
using existing access technologies such as an Automated Teller Machine
(ATM). Electronic cash disbursement card systems, which utilize
electronic transmission of customer indicative data and remote account
opening/maintenance, have been developed. In these systems, customers
provide account holder indicative data which comprises customer
information sufficient to establish an account holder record and provide a
card for cash funding. Account holder indicative data typically includes a identification (ABA) number and account number, possibly including one
or more of the following:
Social Security Number;
Customer Name;
Address;
City & State;
Zip Code;
Phone Number;
Date of Birth; and
Mother's Maiden Name.
In addition, customers generally are required to provide an
account holder signature before the card can be activated and funded for
usage.
Cash disbursement card account opening processes and systems
have also been developed which require that paper account application
documents be forwarded to a financial institution or other entity by mail,
facsimile or other means. The customer provides account holder indicative
data inclusive of the account holder signature and forwards the application
documents to the financial institution for processing and activation. The
institution subsequently processes the application and provides the
customer with the card and Personal Identification Number (PIN) or other
means of activation. Cash disbursement card web sites are currently under development
and available on the Internet. These systems typically require the customer
to provide the same account indicative data, and generally involve a
fulfillment process in which the entity forwards a paper-based application
or signature card to the applicant to complete and sign, and/or involves the
receipt of the application by the entity and some form of manual data entry
of the information prior to account opening and card issuance.
The attributes defining the card holder account and features thereof
are typically fixed within the system. For example, a known card-based
funding system which is dedicated to servicing gift cards might not allow
the replenishment of funds and typically has a fixed funding and activation
method, i.e., funded at a point of sale terminal ("POS") by the customer
and activated by cashier via the POS terminal. In other words, the known
systems do not allow financial institution or companies providing the card
accounts the flexibility of offering from a single system multiple types of
cards each having different attributes. These systems are designed to
support a single type of card, i.e., gift card, bank account automated teller
machine card, etc. These systems also do not support multiple card types
on a single platform. Further, these systems do not support a fully
automated, paperless process for the opening, servicing, and maintenance
of card-based electronic funds distribution accounts. SUMMARY OF THE INVENTION
The present invention provides a system and method for
electronically disbursing funds in which no paper documentation need be
completed or analyzed by the account holder, system provider or owner of
the funding account. In addition, a multitude of different types of accounts
can be created, each having a customizable set of associated attributes.
The account types include a payroll type and a disbursement type.
The customizable account attributes include an account type, an account
structure,
a funding methodology, a card issue type, an account configuration
method, an account balance and transaction reporting method, a check
writing indicator (the check writing indicator corresponds to one of issuing
checks for the account or not issuing checks for the account), a PIN secret
code generation method, a same card and PIN mailing address indicator
(the same card and PIN mailing address indicator correspond to one of
using the same mailing address for a physical card corresponding to the
account and a PIN and using a different mailing address for the physical
card and the PIN) and a statement option.
According to one aspect of the present invention, an electronic
funds distribution system is provided in which there is at least one user
computer generating account configuration data for at least one account.
For each account, the account configuration data includes the designation of one of a plurality of account types and the designation of one or more
predetermined account attributes corresponding to the designated one of
the plurality of account types. A distribution processor receives the
generated account configuration data from the at least one user computer
and causes an account to be created. The account has parameters
corresponding to the received account configuration data.
According to another aspect of the invention, a distribution
processor for an electronic funds distribution system in provided in which
a network interface couples the distribution processor to a communication
network, the network interface transmits account option data and funding
account data to at least one user computer, and receives account
configuration data from the at least one user computer. A storage unit
stores account option data, the account option data has a plurality of
account types and a list of account attributes corresponding to each of the
account types. A central processing unit executes programmatic software
which:
retrieves the account option data from the storage unit;
causes the network interface to transmit the account option data to
the at least one user computer; and
establishes at least one holder account in accordance with the
received account configuration data, the account configuration data defines
a type and selected account attributes for each of the at least one holder account.
As still another aspect of the present invention an electronic funds
distribution method is provided in which account configuration data is
generated for at least one account. For each account the account
configuration data includes the designation of one of a plurality of account
types and the designation of one or more predetermined account attributes
corresponding to the designated one of the plurality of account types. The
generated account configuration data is received from at least one user
computer. An account is created having parameters corresponding to the
received account configuration data.
Other features and advantages of the present invention will become
apparent from the following description of the invention which refers to
the accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
For the purpose of illustrating the invention, there are shown in the
drawings several forms which are presently preferred, it being understood,
however, that the invention is not limited to the precise arrangements and
instrumentalities shown.
Fig. 1 is a diagram of a hardware arrangement of the system of the
present invention;
Fig. 2 is a diagram of an alternative hardware arrangement of the system of the present invention;
Fig. 3 is a block diagram of the function elements 3f the distribution
processor;
Fig. 4 is a flow chart showing the operation of the electronic funds
distribution system;
Fig. 5 is a flow chart showing the process of establishing a card
holder account and card and check order generation; and
Fig. 6 is a flow chart of the card account funding processes.
DETAILED DESCRIPTION OF EMBODIMENTS OF THE
INVENTION
It should be noted that, although the system and method of the
present invention are described with respect to a physical card and card-
based accounts, the invention is not limited to this implementation. It is
contemplated that any method or technology by which an account holder
can be positively identified can be implemented for use with the present
invention. For example, retinal scanning/identification and identification
through fingerprint scanning can be used in lieu of a physical card. As
such, it should be understood that references to physical cards include any
method and technology suitable for positive identification.
Referring now to the drawings wherein like numerals indicate like elements, there is shown in Fig. 1 a card-based electronic funds
distribution system constructed in accordance with the principles of the
present invention and designated generally as 2. Card-based electronic
funds distribution system 2 preferably comprises one or more user
computers 4 communicating with distribution processor 6 via a
communication network 8. Communication network 8 can be any
communication network, whether private or public, but is preferably the
Internet. Electronic funds distribution system 2 also comprises a customer
account system 10 and a host system 12 communicating with each other
and with distribution processor 6. Distribution processor 6, customer
account system 10 and host system 12 are preferably maintained and
operated by a single provider of electronic funds distribution system 2, and
can communicate by any known data communication method, including
but not limited to local area network (LAN) and wide area networking
(WAN) technologies.
User computers 4 can also communicate with distribution processor
6 via host system 12 using link 14. Link 14 is typically a serial link
connecting user computer 4 to host system 12. Link 14 can be a point-to-
point serial link or a network-based link such as a frame relay or IBM
system network architecture link.
It should be noted that although distribution processor 6, customer
account system 10 and host system 12 are typically main frame computing devices, they are not limited to main frames. It is contemplated that
distribution system 6, customer account system 10 and host system 12 can
execute on smaller computing platforms, such as mini-computers and
micro-computers. System 2 also comprises manufacturing system 16
which communicates with distribution processor 6 via communication
network 8. Manufacturing system 16 is preferably a card manufacturing
system or a check manufacturing system. Of course, system 2 can
comprise multiple manufacturing systems 16 to include one or more card
manufacturing systems or one or more check manufacturing systems.
As a card manufacturing system, distribution processor 6 uses
communication network 8 to transmit the data necessary for manufacturing
system 16 to prepare a card. As a check manufacturing system,
manufacturing system 16 receives data from distribution processor 6 via
communication network 8, enabling manufacturing system 16 to print and
mail checks associated with card holders' financial accounts. Detailed
functionality for manufacturing system 16 is described below.
An alternative hardware connectivity arrangement for system 2 of
the present invention is shown in Fig. 2. In the alternative arrangement,
distribution processor 6 communicates with communication network 8 via
authentication processor 18. Authentication processor 18 includes a
database which is used to authenticate users of user computers 4 who seek
access to distribution processor 6 and its associated functions. Authentication processor 18 maintains a database (not shown) which is
comprised of tables associating users with their passwords and access
levels. In other words, user of user computer 4 must first be authenticated
by authentication processor 18 as an authorized user of system 2 before
access to distribution processor 6 is permitted. Authentication processor
18 can be any size computing device which can accommodate the quantity
of users expected of system 2 which executes any suitable authentication
processor software.
References to "customer" herein refer to the user of entity entering
the card account creation and maintenance data from whose funding
accounts the established card accounts will be funded. A user of user
computer 4 is typically associated with the customer, for example, as an
employee or other representative. As such, references to "customer" and
"user" should be considered interchangeable herein. References to
"account holder" or "card account holder" refer to the individual to whom
the card is presented and whose account is funded by the customer.
References to "service provider" refer to the owner and/or operator of the
various hardware components of system 2, other than user computers 4.
Referring to Figs. 1 and 2, the software for facilitating
communication between user computers 4 and distribution processor 6
resides primarily on distribution processor 6. As shown in Fig. 3, the
functional elements of distribution processor 6 preferably include a central processing unit (CPU) 20 used to execute software code in order to control
the operation of the processor, read-only memory (ROM) 22, random
access memory (RAM) 24, at least one network interface 26 to transmit
and receive data to and from other computing devices across
communication network 8 and/or to customer account system 10, host
system 12 and authentication processor 18. Distribution processor 6 also
includes a storage device 28 such as a hard disk drive, floppy disk drive,
tape drive or CD-ROM for storing program code, database and application
data, and one or more input devices 30. Input devices 30 include mice,
keyboards, trackballs, pens and other devices suitable for entering data into
a computer or selecting portions of the display on a monitor (not shown).
The various components of distribution processor 6 need not be
physically contained within the same chassis or even be located in a single
location. For example, storage device 28 may be located at a site which is
remote from the remaining elements of distribution processor 6, and may
even be connected to CPU 20 across communication network 8 via
network interface 26.
As discussed in detail below, the interaction of a user with system 2
occurs primarily between user computer 4 and distribution processor 6.
Distribution processor 6 receives, processes, distributes and transmits data
to and from user computer 4 and customer account system 10 and host
system 12 in order to create and maintain card accounts by presenting card account types and predetermined account attributes corresponding to these
card account types to user computer 4. A user of user computer 4 selects
the card type and attributes desired for one or more card accounts and
transmits that data to distribution processor 6 as card account configuration
data. Options for funding the card accounts, including the available
balances for the funding company's accounts, are gathered by distribution
processor 6 from customer account system 10 and/or host system 12 and
presented to a user on user computer 4.
The structural elements of user computer 4 are the same a those for
distribution processor 6, except that the capabilities of the various
components ma be adjusted to make user computer 4 suitable for a user.
By way of example, user computers 4 may be INTEL Pentium-based
personal computers but are not limited to such computers. User computers
4 may have less storage capacity than distribution processor 6, but may
have a larger display and a more sophisticated array of input devices 32.
Customer account system 10, host system 12 and authentication
processor 18 are also comprised of the same structural elements as
distribution processor 6, with the capacities and performance
characteristics of these devices being adjusted to accommodate the desired
performance characteristics of their implementation within system 2. In
other words, authentication processor 18 may be an INTEL Pentium-based
processor, while customer account system 10 may be a main frame computer maintaining hundreds of thousands of funding accounts. Also,
user computers 4, distribution processor 6, customer account system 10,
host system 12 and authentication processor 18 can run the same or
different operating systems, including but not limited to, WINDOWS,
UNIX, MAC-OS, or an IBM main frame operating system.
A significant aspect of the preferred embodiment of system 2 is that
it does not require that user computers 4 be capable of any functions other
than communicating with distribution processor 6 across communication
network 8 and displaying the data from, and sending data to, distribution
processor 6 using communication software such as a standard Internet web
browser. Instead, all software and data specific to the operation of the
electronic funds distribution system 2 are stored in distribution processor 6,
or gathered by distribution processor 6, itself. As used herein, references
to displaying data on user computers 4 refer the process of communicating
data to the user computer across communication network 8, and processing
the data such that the data can be viewed on the user computer's screen
using an Internet web browser or the like.
In this preferred embodiment, certain applets such as JAVA applets
are stored on distribution processor 6 and sent to user computer 4 for
execution by the web browser software. In this manner, components of
system 6 which require execution on user computer 4 are stored on
distribution processor 6. The web browser interface on user computer 4 can, therefore, be customized by a JAVA applet sent from distribution
processor 6 to user computer 4. This allows upgrades and enhancements to
system software components to be easily distributed and obviates the need
to have a technician travel to the location of user computer 4 for software
upgrades.
The nature of the invention is such that one skilled in the art of
writing computer executable code (software) will be able to implement the
desired functions using one or a combination of popular programming
languages such as C++, JAVA, hypertext markup language (HTML) and
other known database manipulation languages.
System 2 allows a user to quickly and easily establish and maintain
a card account for an account holder without the need for the account
holder or funding entity (such as the company issuing the card) to submit
or execute any paper documents. In other words, system 2 provides a
completely paperless environment for establishing a multitude of different
types of card accounts. For example, card accounts can be established to
provide an employee with a payroll card, bonus card or petty cash (per
diem) card instead of a check. These cards are funded from one or more of
the employer's accounts by a representative of the employer via user
computer 4. Similarly, card accounts can be established by the
government for entitlement programs and disaster relief, by insurance
companies to pay insurance claims, by financial institutions to provide consumer loan proceeds or student loans, and by retail establishments to
encourage store-based loyalty and retail gift cards (analogous to gift
certificates).
Cards and card accounts can be co-branded and affiliated with, for
example, a retail institution or a credit card company, to allow the holder to
use the funded account as they would any debit or credit card. Cards and
card accounts can also be associated with one or more of these uses. For
example, a payroll card issued by an employer can also be periodically
funded to provide petty cash reimbursement and bonus incentives, or
funded by a bank to add consumer loan proceeds to the account. In other
words, any combination of uses can be supported by system 2 via the
appropriate databases on distribution processor 6 and funding accounts in
distribution processor 6, customer account 10 and/or host system 12.
Preferably, distribution processor 6 maintains an electronic site,
such as an Internet web site, which is accessible via communication
network 8, and is maintained by distribution system 6 as a shared operating
system environment.
The operation of system 2 is explained with reference to Fig. 4.
System 2 provides four main functions, namely, establishing (creating)
one or more card-based accounts, funding new or existing accounts,
maintaining card accounts and administering company accounts on
distribution processor 6, each of which is described below in detail. A customer seeking to perform any of these four main functions
establishes a communication session with distribution processor 6 via
communication network 8 or link 14. Prior to actually accessing these
functions, the user is authenticated, preferably based on a user ID and
password, by distribution processor 6 or authentication processor 18 (step
32). The user is then presented with a display screen which allows a user
to select one of the four main functions.
In the case where a user does not want to create a new account (step
34), a determination is made as to whether the user wishes to fund an
account (step 36), maintain an account (step 38) or administer an account
(step 40). In the case where a user wishes to fund a newly created or
existing card account, distribution processor 6 executes card account
funding processes (step 42). When the user wishes to maintain an account,
distribution processor 6 allows the user to select and then executes one or
more card account maintenance processes (step 44). In the case where the
user wishes to administer a company account, distribution processor 6
allows the user to select and execute one or more account administration
processes (step 46). In the case of step 42, step 44 and step 46, user
computer 4 is presented with appropriate screens to effect the desired
functions. Step 42, step 44 and step 46 are described in detail below.
In the case where a user selects the create new account function,
distribution processor 6 retrieves card type data and account attribute data corresponding to the card types from storage device 28 and transmits this
configuration option data to user computer 4. The card type and account
attribute data provided to user computer 4 are preferably arranged such that
only those card types and account attributes which are approved for
selection, for example, based on a user's authentication level or preexisting
arrangement between the company and the provider of system 2, are made
available to the user.
Card account types can include any of the above-described types,
but are preferably grouped to include a payroll type card account and
disbursement type card account. A payroll type card account is an account
arranged to provide employment compensation to the card account holder.
A disbursement type account is any account into which the customer's
funds are to be made available to the account holder, i.e., disbursed to the
card holder via bonus cards, gift cards, government entitlement cards,
insurance proceeds, etc..
Each of the payroll type and disbursement type card account types
can be associated with any of the specific above-described types, for
example, a credit card debit card type, an insurance proceeds type and a
loan proceeds card type. Of course, the payroll type and disbursement type
card account types can be associated with more than one use, for example,
the payroll type card can also act as an insurance proceeds card type, loan
proceeds card type, a debit card type, etc. Account attribute data is associated with each card type, and allows
each card account type to be customized in accordance with these account
attributes. As part of step 48, CPU 20 reads the account attribute data from
storage device 28 and transmits this data, preferably as a part of a hypertext
transfer protocol ("HTTP") data stream, to user computer 4. The display
screen is preferably arranged as a pull-down or check box screen which
allows a user to select card account types such that the attributes available
for each card type are then easily displayed and customized.
The predetermined account attributes which may be associated with
one or more card account types include, but is not limited to, an account
type, an account structure, a funding methodology, a card issue type, an
account configuration method, an account balance and transaction
reporting method, a check writing indicator, an ATM personal
identification number (PIN) code generation method, a same card and
mailing address indicator and a statement option attribute.
Depending on the card type, one or more attributes may not be
necessary or may not be selected. For example, it may be desired to
configure system 2 such that a user selecting a gift card account type will
not be presented with a check writing indicator attribute, because the
customer may be a retail customer who never wants their gift cards
associated with any checks. In other words, system 2 can be arranged to
allow a subset of available card types and a subset of account attributes to be made available to users associated with that customer.
The account type attribute determines the nature and duration of the
card account. Options for account type include, but are not limited to, a
permanent, i.e., renewable account, a one time, i.e., limited life account, a
pre-funded account and a zero-balance account. A renewable account
refers to an account which can be funded repeatedly, such as a payroll
account. For example, in the case of a payroll account card, the account
associated with the payroll card type will be periodically funded from the
employer's account at each pay period interval. As such, the card holder's
account will not expire and will remain active in system 2 until such time
as it is deleted by the customer. The limited life account, on the other
hand, establishes a time period after which the account is deleted or
inactivated. For example, a retail establishment funding a gift card may
wish to allow only a certain period of time in which the holder can use the
card. A pre-funded account is an account with a positive monetary balance
available in the account for withdrawal. Each debit decreases the balance
in the pre-funded account. A gift card is an example of a pre-funded
account. A zero-balance account is an account which has a zero balance
accompanied by periodic, for example daily, monthly, etc., spending
limits. The account is funded as money is withdrawn and the account goes
into a negative position, for example each night or once a month. It
should be noted that with each attribute, the list of options includes those discussed, but is not limited to only those discussed herein. Those of
ordinary skill in the art will recognize that additional options may be
suitable for the described account attributes. Also, system 2 can be easily
arranged to support card types and card attributes in addition to those listed
herein by establishing the appropriate records in the database in storage
device 28.
The account structure attribute dictates the manner in which the card
account balance and transaction details are reported to the customer.
Options for the account structure attribute include a normal option and a
master/sub-account option. Normal refers to a singly funded and tracked
account. In contrast, in a master/sub-account structure, the master account
is the funding account owned by the customer and the sub-accounts are
those accounts established for individual cardholder account use. For
example, a disbursement type card account is typically a sub-account
associated with a master funding account.
The funding methodology account attribute allows the customer to
select the method by which the card account is funded. Funding
methodology options include automated clearing house, on-line banking,
electronic funds transfer, electronic lock box and automated next day
settlement. Automated clearing house funding refers to fund transfers
which are typically made to an established set of clearing house standards,
for example a checking account. For on-line banking, in the case where master and sub-accounts are owned by the service provider and not a third
party, the service provider's on-line banking platform can be used to
facilitate on-line funds transfer between the master account and the sub-
accounts. Electronic funds transfer refers to those domestic wires or
international cables which utilize an established interbank payment system.
Electronic lock box funded accounts are those accounts which are funded
through another electronic and preferably card-less account. For example,
an Internet-based card-less funding account is of the electronic lock box
type. An automated next day settlement account is funded as an account
which has a zero balance and has established draw-down limits. When the
account enters a negative position, the funding system automatically
triggers a funding process to bring the account back to a zero balance.
The card issue type attribute allows the customer to select whether
the physically issued card is a permanent or temporary card. In the case
where the card is temporary, the customer can additionally select whether a
permanent card is to be prepared and issued to the card account holder.
Options allow the customer to indicate that the card issue type is a
permanent card, a temporary card or a permanent-temporary card.
Designating a card as a permanent card informs the system that no
additional card is to be prepared. Indicating that the card is a temporary
card with a permanent card to follow notifies the system that the card given
to the card holder is a temporary, i.e., starter card, and that distribution processor 6 should execute the functions necessary to cause a permanent
card to be manufactured and sent to the account card holder. Finally, the
permanent-temporary card option indicates to the system that a temporary
card was issued to the card account holder but that no permanent card
should be manufactured. In other words, the permanent-temporary card
option designates that the temporary card is being treated as a permanent
card.
It should be noted that the card account configuration data
preferably include an identification number when the card issue type
attribute is a temporary card. When the card issue type is temporary, the
user is prompted to enter the identification number of the temporary card.
This is the case because a customer is typically provided with one or more
temporary cards which can be issued and accounts funded quickly.
Providing the identification number of the temporary card allows
distribution processor 6 to identify the card and associate it with the proper
card account. Of course, a permanent card can be provided to the company
for distribution to the account holder. In this case, the user must also input
the permanent card number to the appropriate spot of the user computer 4
for display.
The account configuration method attribute defines whether the
customer will be able to submit and receive card-based electronic funds
opening and maintenance data via communication network 8, i.e., via the Internet, or whether the account opening and maintenance data will be
received using off-line data transmissions. Options for the account
configuration method attribute include on-line and off-line. On-line will
allow access to the card holder account for establishment and maintenance,
funding, maintenance and administration via communication network 8.
The off-line option indicates that account creation, funding, maintenance
and administration will occur either via a physical electronic media such as
a CD-ROM, floppy disk, tape, etc. or via host system 12. In other words,
designating an account configuration method off-line prevents users from
establishing or accessing a card holder account via communication
network 8, i.e., all authentication attempts will be denied.
The account balance and transaction reporting method attribute
allows a customer to choose the manner in which the account balance and
transaction details are reported to them. Options include reporting at the
card holder level, the corporate account level or both.
The check writing indicator attribute allows a customer to designate
whether checks will be issued on a card holder account. Thus, the check
writing indicator is a binary indicator corresponding to one of either
issuing checks for a card account or not issuing checks for a card account.
In the case where checks are to be issued, distribution processor 6 submits
the relevant data, such as account number, card holder name and address,
check starting number and the number of checks to be issued to manufacturing system 16 via communication network 8 or via any other
known transmission method.
PIN generation method attribute allows a customer to choose the
manner in which PIN secret codes are generated and managed. Options
include a system generated PIN, suppress PIN and remote personal
identification code (PIC) selection. Selecting the system generated PIN
option preferably causes distribution processor 6 to generate the PIN
associated with the card account. The PIN can also be generated by
customer account system 10, host system 12 or manufacturing system 16,
where manufacturing system 16 is a card manufacturing system. The
suppress PIN option indicates that the card account has no associated PIN,
i.e., any individual in possession of the card has access to the card account.
PIN selection or PIN changes can also be initiated by the card holder,
preferably by voice response unit, communication network 8, automated
teller machine, etc.
As used herein, the term "PIN" refers to a numeric code, typically a
four or more digit numeric code, derived from known mathematical
algorithms or created based on a random number generator. As discussed
above, a PIN is usually assigned by the institution issuing the card, and is
specific to that particular card. Of course, a PIN can also be chosen by the
card holder. The term "PIC", as used herein, refers to an alphanumeric
code chosen by the cardholder (although a PIC can also be computer genεrated). In general, the PIC and PIN can be used interchangeably.
The same card and PIN mailing address indicator attribute allows
the user to indicate to distribution processor 6 whether the mailing address
for the physical card the mailing address to which the PIN will be mailed
are the same or different. As such, the same card and PIN mailing address
indicator attribute has a binary option by which the user can indicate that
the card and PIN mailing addresses are the same or that they are different.
In the case where they are different, the user must provide distribution
processor 6 with the addresses for both the physical card as well as the PIN
information sheet. This address data is part of the indicative data.
The statement option attribute allows the customer to choose among
different statement rendering frequencies, i.e., cycles, such as monthly,
quarterly, etc., or to elect that no statement be prepared. The statement
option refers to the transactional statement generated by distribution
processor 6, or another system such as customer account system 10 or host
system 12, and mailed to the card holder of the card account. Options
available to the customer for the statement option attribute include normal
frequency, alternate frequency, or that no statement be rendered. In the
case of normal frequency option, selecting this option indicates to
distribution processor 6 that a statement should be prepared at the default
frequency as determined by the customer and stored in storage device 28.
Selecting the alternate frequency option allows the customer to select a different frequency cycle than the typical default. The normal frequency
option is preferably defined by a user during the account administration
process (step 46).
Sub-account statements can be generated for specific card types.
For example, where a card account is established for petty cash
disbursements, the company may wish to have employees receive
statements or view transaction history on-line to reconcile expenses. It is
also contemplated that the cardholder will have access to card account
information, such as remaining balance and transaction history, on-line,
such as communication network 8, via voice response unit, automated
teller machine, etc.
In addition to selecting a card type and account attributes, the user
also supplies account holder indicative data. Preferably, the display screen
is arranged to accept the account holder indicative data based on the
HTML code generated and transmitted to user computer 4 from
distribution processor 6. Once the card account type and the
predetermined account attributes corresponding to the designated card
account type have been selected, the user selects an appropriate portion of
the display, or depresses a particular predefined key, to cause user terminal
4 to generate card account configuration data and transmit this data to
distribution processor 6 (step 50). In the alternative, the account
configuration data can be stored in the storage device of user computer 4 for off-line or batch transmission to distribution processor 6 either via
communication network 8, link 14 or by electronic media.
The account configuration data generated by user computer 4
includes the designated card account type and the designation of one or
more predetermined account attributes corresponding to the designated
card account type. The data corresponding to the designated
predetermined account attributes includes an indication of the particular
options selected for that attribute. For example, the user may designate a
card account type as a payroll type, as a permanent account type, whose
account structure is normal and which is funded by electronic funds
transfer. The card issue type may be designated as a permanent card
opened and maintained on-line via communication network 8 whose
account balance and transaction reporting method will occur at the
corporate account level. The user may also designate this payroll account
as one in which checks should be issued, a system generated PIN
established, and mailed with the card to the card holder's home address,
and in which the card holder account statement is generated at the normal
default frequency. Of course, many combinations and permutations of
account attribute designations are possible.
Once the indicative and account configuration data are received by
distribution processor 6, distribution processor 6 confirms receipt of the
data by transmitting an appropriate message to user terminal 4 (step 52). Distribution processor 6 validates the received configuration data to ensure
that all fields are properly completed and that no invalid options were
selected (step 54). If the data is invalid, the user is notified of such and
must reenter or correct the error. When the data validation is successful,
the card holder accounts are created (step 56). The account creation
processes of step 56 are described in detail below.
Once the card holder account has been created, account data
corresponding to the created account is transmitted to the customer,
preferably to user computer 4 via communication network 8 (step 58). The
transmitted data can be in the form of a screen display, but is preferably an
electronic file in the same format in which the account configuration data
and indicative data were received by distribution processor 6 For
example, created account data transmitted to the customer preferably
include the account holder name and social security number, the account
number and ABA (American Banking Association bank identification)
number for each account holder. In the alternative, validation step 54 can
be combined with created account transmission step 58 so that any items
rejected during the validation process will be provided to the customer for
correction during the created account transmission process. This
alternative method facilitates batch processing of multiple accounts which
are either entered by the browser interface on user computer 4 or by the
off-line batch process. The account creation processes in step 56 are explained in detail
with reference to Fig. 5. Fig. 5 is a flow chart detailing the steps necessary
to establish a card holder account and generate the orders necessary to
produce permanent cards and printed checks.
Distribution processor 6 executes the tasks necessary to establish
account holder records (step 48). Establishing account holder records
entails establishing and initializing appropriate cardholder account
database records on distribution processor 6, and optionally, on customer
account system 10 and host system 12. For example, customer account
system 10 is preferably used as the customer service interface to customers
such that an account holder record established in customer account system
10 includes the customer account holder's name, address, other means of
identifying the customer, card holder account number, card type, etc. In
other words, data necessary for a customer service representative to assist
the card holder or the company can be transferred from distribution
processor 6 to customer account system 10. Of course, distribution
processor 6 can be arranged to act as the focal point for account holder
records such that no account information is transmitted during the account
establishment process to customer account system 10 or host system 12.
During the account holder record establishment step, distribution
processor 6 establishes a database record in storage device 28 which
includes the configuration data and indicative data transmitted by user computer 4.
Where production of a card is not necessary, as for example where a
permanent card was directly issued by the company to an account holder,
distribution processor 6 evaluates the check writing indicator attribute to
determine whether printed checks are necessary (step 52). If printed
checks are required, distribution processor 6 generates and transmits an
order to manufacturing system 16 to produce the checks (step 54). In the
case where manufacturing system 16 is producing checks, that system can
be owned/operated by the provider of distribution processor 6 or by an
external vendor.
In the case where the production of a permanent card is necessary
(step 50), distribution processor 6 assigns a card number, for example, a
sequential identification number, and establishes a PIN in accordance with
the PIN generation method attribute (step 56). Distribution processor 6
then transmits this information to manufacturing system 16 (in this case
manufacturing system 16 is a card manufacturing system) so that
manufacturing system 16 can produce the card and mail it to the designated
mailing address (step 58).
It should be noted that the actual card number assignment can also
be made by manufacturing system 16, and transmitted to distribution
processor 6 for incorporation into the card holder's account record in
storage unit device 28. In the case where it is necessary to mail a PIN, whether to the same mailing address as the card or a different mailing
address, system 2 can be arranged such that distribution processor 6
produces and causes the document with the PIN number to be mailed,
while manufacturing system 16 prepares and mails the account card.
Once a card holder account is created, that account must be funded
to give monetary value to the card. In addition, an existing account with an
account type which lends itself to periodic funding, for example, a
renewable account, can be incrementally funded by selecting the fund
account option on display terminal 4. Account funding processes of step
42 are explained with reference to Fig. 6.
Fig. 6 is a flow chart of the card account funding processes of the
present invention. Upon selecting the fund account function option on user
computer 4, the user is presented with a list of card accounts which can be
funded. The list is preferably based on the customer upon whose behalf
the user is working, and based on the user's authorization level.
Optionally, the user can manually enter the card account number, or search
the database in storage device 28 to select the card account or accounts to
fund (step 60). It is contemplated that any display arrangement which
allows a user to view and select those accounts which are to be funded can
be implemented as part of step 60.
As part of the selection process, the user is also prompted to enter
the amount of funding to be applied to the card. In the alternative, the funding amount for each card account can be determined automatically, for
example, as is the case for a payroll account or a pre-funded gift card with
a predetermined starting balance.
Once the card accounts to be funded have been selected and their
funding amounts determined, distribution processor 6 calculates the
required funding account balance (step 62) and transmits the required
funding account balance to user computer 4. The required funding account
balance represents the minimum balance required to fund the card accounts
selected for funding. These accounts include the newly created accounts
and the existing accounts selected for incremental funding.
Balances from the funding accounts from which the required
funding account balance can be met are retrieved from storage device 28 or
transferred to distribution processor 6 from customer account system 10 or
host system 12, and transmitted to user computer 4. Preferably, customer
account system 10 is the repository for the funding accounts. The funding
account balance transmitted to user computer 4 corresponds to the amount
of available funds from which the created (selected) card accounts can be
funded. User computer 4 preferably displays the funding accounts and
funding account balances in a format which allows a user to select the
funding account or accounts, and enter the amount of card account funding
to be taken from the respective funding account. It is contemplated that
card accounts can be funded in a number of methods which include, but are not limited to, clearing house credit, funds transfer, electronic card swipe,
pre-funded card, and master/sub-account funding. Electronic card swipe
funding refers to encoding the funding amount on the card via magnetic
stripe encoding technologies. Methods for magnetic stripe encoding are
known in the art. Card accounts created by a customer need not be funded
using the same funding method, but rather, can use a combination of
funding methods.
The user evaluates the potential funding accounts presented on user
computer 4 and selects those accounts and enters the amounts from which
to fund the selected, for example created, card accounts (step 66).
User computer 4 transmits the selected accounts and funding
amounts to distribution processor 6 (step 68). Distribution processor 6
credits the card accounts and the funding amounts, and debits the funding
accounts in the amount selected by the user. At this point, the selected
card accounts are funded.
As an alternative embodiment, card accounts can be funded directly
from an Internet payment account (IP A). In an IP A environment, the
funding entity, for example a consumer for whom the account holder has
performed a service, sold goods or from whom a gift is to be received, uses
their web browser to initiate a funding transaction. For example, the
funding entity can obtain the account holders bank identification and
account number in a variety of ways. In one method, the funding entity obtains this information electronically from the service where it contacted
the individual. Alternatively, the consumer can obtain the necessary
destination bank information through offline methods such as the
traditional paper classified advertisement or through an electronic mail
message which has been "pushed" to the funding entity by the account
holder.
Methods for funding a card holder account, and for using funds in
the card holder account to electronically purchase goods and services via a
network such as the Internet are described in more detail in Provisional
U.S. Patent No. 60/163,828, entitled Method for Using Automated Teller
Machine Switch Settlement for Processing Transactions, by Deni O'Leary
et al., filed November 5, 1999, the contents of which are incorporated
herein by reference.
A user selecting the account maintenance function in step 38 is
presented with a number of account maintenance function options on the
display of user computer 4. Maintenance functions include requesting a
replacement card, requesting a PIN for a created card account, selecting a
personal identification number for a created card account, updating
personal information, i.e., indicative information, for a card holder,
deleting a card account, selecting a PIC and requesting a report. The
selection of any of these maintenance options causes user computer 4 to
generate created card account maintenance data and to transmit this data to distribution processor 6.
Upon selecting the desired maintenance option, distribution
processor 6 transmits an electronic form, preferably an HTML form, to
user computer 4 in accordance with the desired maintenance function.
This form is completed by the user and electronically transmitted back to
distribution processor 6. For example, a user requesting deletion of a
created card account is preferably prompted to enter the created card
account number and optionally a reason for deleting the account.
Reports preferably include an electronic report of the total accounts
opened by a customer, reports detailing balance and transactional data for
the customer by card holder and card holder's account number, and reports
for the card holder comprising balance and transaction history.
In the case where a user selects the function for administering the
customer's accounts (step 40), distribution processor 6 transmits a number
of different distribution processor administration functions to user
computer 4 from which a user can select the desired administration
function (step 46).
The selected distribution processor administration process causes
distribution processor 6 to execute an appropriate administrative function.
The data transmitted by user computer 4 to distribution processor 6
corresponding to the selected administrative function is comprised of
administrative data. Distribution processor administrative functions include administering company security account data, administering
company account profile data, causing master/sub-account data to be
displayed on user computer 4 and ordering a card account starter kit. The
card account starter kit comprises a card and account number, possibly
with a pre-assigned PIN. The starter kit can be used for permanent or
temporary cards, and facilitates distribution of gift cards, emergency
replacement cards, etc.
The distribution processor administration function of administering
company account security data allows a user to create and/or modify new
user accounts and passwords. Upon receiving this data, distribution
processor 6 creates the new user account, and/or transmits this data to
authentication processor 18 to create a user account on that device. As
discussed above, different users within a company can have different user
levels and different privileges, each of which can be modified via the
administering company account security data function.
The administering company account profile data function allows a
user to enter and/or modify corporate information, such as contact names,
addresses, funding account numbers, etc. The displaying master/sub-
account data function causes distribution processor 6 to transmit
master/sub-account data to user computer 4 for presentation to the
requesting user.
The present invention advantageously provides a system which is capable of accepting card account creation data in a multitude of forms via
different communication channels. The present invention allows
customers to electronically submit all account holder information on-line
without the need to complete any paper. Thus, system 2 does not require
human intervention in the form of data entry, mailing account fulfillment
literature or documents or other forms. The cards used in the system of the
present invention can use existing technology such as magnetic stripe
recognition, smart card or embedded computer chip technology, credit or
debit card characteristics, with the added benefit that the functionality and
attributes of each card type are determined by the customer during the
automated card account establishment process.
The present invention allows customers to easily fund accounts,
maintain those accounts and administer their relationship with the
distribution processor, i.e., the service provider.
In addition, because the present invention advantageously
interoperates with existing ATM, point of sale, credit card and private
networks and technologies, these networks and technologies can be
leveraged in extend their usefulness and protect the investments made
therein.
Although the present invention has been described in relation to
particular embodiments thereof, many other variations and modifications
and other uses will become apparent to those skilled in the art. It is preferred, therefore, that the present invention be limited not by the
specific disclosure herein, but only by the appended claims.

Claims

WHAT IS CLAIMED IS:
1. An electronic funds distribution system, comprising:
at least one user computer, said at least one user computer
generating account configuration data for at least one account, for each
account said account configuration data includes the designation of one of
a plurality of account types and the designation of one or more
predetermined account attributes corresponding to said designated one of
said plurality of account types;
a distribution processor, said distribution processor receiving said
generated account configuration data from said at least one user computer
and causing an account to be created, said account having parameters
corresponding to said received account configuration data.
2. The electronic funds distribution system according to Claim
1 , wherein said account configuration data includes an identification
number for one of a permanent and a temporary card.
3. The electronic funds distribution system according to Claim
1 , wherein said account creation includes transmitting at least a part of said
account configuration data to a card manufacturing system.
4. The electronic funds distribution system according to Claim 1 , wherein said account creation includes transmitting at least a part of said
account configuration data to a check manufacturing system
5. The electronic funds distribution system according to Claim
1 , wherein said distribution processor calculates a required funding account
balance and transmits said required funding account balance to said at least
one user computer, said required funding account balance corresponding to
a minimum balance required to fund said created accounts.
6. The electronic funds distribution system according to Claim
5, wherein said distribution processor transmits at least one funding
account balance to said at least one user computer, said at least one funding
account balance corresponding to an amount of available funds from which
said required funding account balance can be met.
7. The electronic funds distribution system according to Claim
6, wherein a customer uses said at least one user computer to select at least
one funding account and an amount of funding to apply to said required
funding account balance to fund said created accounts, said at least one
user computer transmitting data corresponding to said selected account and
said amount of funding to said distribution processor.
8. The electronic funds distribution system according to Claim
1 , wherein said distribution processor transmits configuration options to
said user computer, said configuration options including a list of said
account types and a list of said plurality of attributes corresponding to each
of said account types.
9. The electronic funds distribution system according to Claim
1 , wherein said account configuration data is received by said distribution
processor via a communication network.
10. The electronic funds distribution system according to Claim
1 , wherein said account configuration data is received by said distribution
processor on an electronic media.
1 1. The electronic funds distribution system according to Claim
I , wherein said plurality of account types includes a payroll type and a
disbursement type.
12. The electronic funds distribution system according to Claim
I I , wherein said payroll type and said disbursement type are each
comprised of at least one of a credit card debit type, an insurance proceeds
type and a loan proceeds type.
13. The electronic funds distribution system according to Claim
11 , wherein at least one of said plurality of account types is a co-branded
card.
14. The electronic funds distribution system according to Claim
1 , wherein said predetermined account attributes include:
an account type;
an account structure;
a funding methodology;
a card issue type;
an account configuration method;
an account balance and transaction reporting method;
a check writing indicator, said check writing indicator
corresponding to one of issuing checks for said account or not issuing
checks for said account;
a PIN secret code generation method;
a same card and PIN mailing address indicator, said same card and
PIN mailing address indicator corresponding to one of using the same
mailing address for a physical card corresponding to said account and a
PIN, and using a different mailing address for said physical card and said
PIN; and
a statement option.
15. The electronic funds distribution system according to Claim
14, wherein said account type is selected from the group consisting of a
renewable account, a limited-life account, a pre-funded account and a zero
balance account.
16. The electronic funds distribution system according to Claim
14, wherein said account structure is selected from the group consisting of
a normal account and a master & sub-account.
17. The electronic funds distribution system according to Claim
14, wherein said funding methodology is selected from the group
consisting of automated clearing house, on-line banking, funds transfer,
electronic lock box and automated next day settlement.
18. The electronic funds distribution system according to Claim
14, wherein said card issue type is selected from the group consisting of a
permanent card, a temporary card and a permanent-temporary card.
19. The electronic funds distribution system according to Claim
14, wherein said account configuration method is selected from the group
consisting of on-line and off-line.
20. The electronic funds distribution system according to Claim
1 , wherein said distribution processor validates said received data prior to
creating said account.
21. The electronic funds distribution system according to Claim
7, further comprising a customer account system coupled to said
distribution processor, said customer account system comprising said
funding accounts.
22. The electronic funds distribution system according to Claim
1 , further comprising a host system, said host system being coupled to said
distribution processor, wherein said user computer is coupled to said host
system and interacts with said distribution processor via said host system.
23. The electronic funds distribution system according to Claim
1 , wherein said distribution processor is arranged to receive created
account maintenance data.
24. The electronic funds distribution system according to Claim
23, wherein said created account maintenance data includes data
corresponding to at least one of:
requesting a replacement card; selecting a personal identification number for said created account;
updating personal information for a holder of said created account;
deleting said created account;
selecting a PIC; and
requesting a report.
25. The electronic funds distribution system according to Claim
1 , wherein said distribution processor is arranged to receive administration
data corresponding to distribution processor administrative functions.
26. The electronic funds distribution system according to Claim
25, wherein said distribution processor administration functions include at
least one of:
administering company account security data;
administering company account profile data;
displaying master and sub-account data; and
ordering a card account starter kit.
27. The electronic funds distribution system according to Claim
1 , further comprising an authentication processor coupled between said
distribution processor and said at least one user computer, said
communication network application processor authenticating a user of said at least one user
computer.
28. The electronic funds distribution system according to Claim
1 , wherein said account is a card account and said account configuration
data is card account configuration data.
29. A distribution processor for an electronic funds distribution
system, comprising:
a network interface, said network interface coupling said
distribution processor to a communication network, said network interface
transmitting account option data and funding account data to at least one
user computer and receiving account configuration data from said at least
one user computer;
a storage unit, said storage unit storing account option data, said
account option data having a plurality of account types and a list of
account attributes corresponding to each of said account types; and
a central processing unit, said central processing unit executing
programmatic software which:
retrieves said account option data from said storage unit;
causes said network interface to transmit said account option
data to said at least one user computer; and establishes at least one holder account in accordance with
said received account configuration data, said account configuration data
defining a type and selected account attributes for each of said at least one
holder account.
30. The distribution processor according to Claim 29, wherein
said distribution processor receives account configuration data from said
user computer through said communication network.
31. The distribution processor according to Claim 29, wherein
said distribution processor receives account configuration data from an
electronic media.
32. The distribution processor according to Claim 29, wherein
said distribution processor transmits at least a part of said account
configuration data to a card manufacturing system.
33. The distribution processor according to Claim 29, wherein
said distribution processor transmits at least a part of said account
configuration data to a check manufacturing system.
34. The distribution processor according to Claim 29, wherein said distribution processor calculates a required funding account balance
and transmits said required funding account balance to said at least one
user computer, said required funding account balance corresponding to a
minimum balance required to fund said established accounts.
35. The distribution processor according to Claim 34, wherein
said distribution processor transmits at least one funding account balance
to said at least one user computer, said at least one funding account balance
corresponding to an amount of available funds from which said required
funding account balance can be met.
36. The distribution processor according to Claim 35, wherein
said network interface receives designation data corresponding to a
selection of at least one funding account and an amount of funding to apply
to said required funding account balance to fund said established accounts
from said at least one user computer.
37. The distribution processor according to Claim 29, wherein
said plurality of account types includes a payroll type and a disbursement
type.
38. The distribution processor according to Claim 37, wherein at least one of said plurality of types is a co-branded card.
39. The distribution processor according to Claim 29, wherein
said account attributes include:
an account type;
an account structure;
a funding methodology;
a card issue type;
an account configuration method;
an account balance and transaction reporting method;
a check writing indicator, said check writing indicator
corresponding to one of issuing checks for said account or not issuing
checks for said account;
a PIN secret code generation method;
a same card and PIN mailing address indicator, said same card and
PIN mailing address indicator corresponding to one of using the same
mailing address for a physical card corresponding to said account and a
PIN, and using a different mailing address for said physical card and said
PIN; and
a statement option.
40. The distribution processor according to Claim 29, wherein said distribution processor validates said received data prior to establishing
said account.
41. The distribution processor according to Claim 29, wherein
said network interface receives established account maintenance data.
42. The distribution processor according to Claim 41, wherein
said established account maintenance data includes data corresponding to
at least one of:
requesting a replacement card;
selecting a personal identification number for said created account;
updating personal information for a holder of said created account;
deleting said created account;
selecting a PIC; and
requesting a report.
43. The distribution processor according to Claim 29, wherein
said network interface received administration data corresponding to
distribution processor administrative functions.
44. The distribution processor according to Claim 43, wherein
said distribution processor administration functions include at least one of: administering company account security data;
administering company account profile data;
displaying master and sub-account data; and
ordering a card account starter kit.
45. The distribution processor according to Claim 29, wherein
the holder account is a card account and said account configuration data is
card account configuration data.
46. An electronic funds distribution method, comprising the
steps of:
generating account configuration data for at least one account, for
each account said account configuration data includes the designation of
one of a plurality of account types and the designation of one or more
predetermined account attributes corresponding to said designated one of
said plurality of account types;
receiving said generated account configuration data from at least
one user computer; and
creating an account, said account having parameters corresponding
to said received account configuration data.
47. The electronic funds distribution method according to Claim 46, wherein said account creation step comprises transmitting at least a part
of said account configuration data to a card manufacturing system.
48. The electronic funds distribution method according to Claim
46, wherein said account creation step comprises transmitting at least a part
of said account configuration data to a check manufacturing system
49. The electronic funds distribution method according to Claim
46, further comprising the steps of:
calculating a required funding account balance; and
transmitting said required funding account balance to said at least
one user computer, said required funding account balance corresponding to
a minimum balance required to fund said created accounts.
50. The electronic funds distribution method according to Claim
49, further comprising the step of transmitting at least one funding account
balance to said at least one user computer, said at least one funding account
balance corresponding to an amount of available funds from which said
required funding account balance can be met.
51. The electronic funds distribution method according to Claim
50, further comprising the steps of: selecting at least one funding account and an amount of funding to
apply to said minimum balance to fund said created accounts; and
transmitting data corresponding to said selected account and said
amount of funding to a distribution processor.
52. The electronic funds distribution method according to Claim
46, further comprising the step of transmitting configuration options to said
user computer, said configuration options including a list of said account
types and a list of said plurality of attributes corresponding to each of said
account types.
53. The electronic funds distribution method according to Claim
46, wherein said account configuration data is received via a
communication network.
54. The electronic funds distribution method according to Claim
46, wherein said account configuration data is received on an electronic
media.
55. The electronic funds distribution method according to Claim
46, wherein said plurality of account types includes a payroll type and a
disbursement type.
56. The electronic funds distribution method according to Claim
55, wherein said payroll type and said disbursement type are each
comprised of at
least one of a credit card debit type, an insurance proceeds type and a loan
proceeds type.
57. The electronic funds distribution method according to Claim
55, wherein at least one of said plurality of account types is a co-branded
card.
58. The electronic funds distribution method according to Claim
46, wherein said predetermined account attributes include:
an account type;
an account structure;
a funding methodology;
a card issue type;
an account configuration method;
an account balance and transaction reporting method;
a check writing indicator, said check writing indicator
corresponding to one of issuing checks for said account or not issuing
checks for said account;
a PIN secret code generation method; a same card and PIN mailing address indicator, said same card and
PIN mailing address indicator corresponding to one of using the same
mailing address for a physical card corresponding to said account and a
PIN, and using a different mailing address for said physical card and said
PIN; and
a statement option.
59. The electronic funds distribution method according to Claim
58, wherein said account type is selected from the group consisting of a
renewable account, a limited-life account, a pre-funded account and a zero
balance account.
60. The electronic funds distribution method according to Claim
58, wherein said account structure is selected from the group consisting of
a normal account and a master & sub-account.
61. The electronic funds distribution method according to Claim
58, wherein said funding methodology is selected from the group
consisting of automated clearing house, on-line banking, funds transfer,
electronic lock box and automated next day settlement.
62. The electronic funds distribution method according to Claim 58, wherein said card issue type is selected from the group consisting of a
permanent card, a temporary card and a permanent-temporary card.
63. The electronic funds distribution method according to Claim
58, wherein said account configuration method is selected from the group
consisting of on-line and off-line.
64. The electronic funds distribution method according to Claim
46, further comprising the step of validating said received data prior to
executing said account creation step.
65. The electronic funds distribution method according to Claim
46, further comprising the step of receiving created account maintenance
data.
66. The electronic funds distribution method according to Claim
65, wherein said created account maintenance data includes data
corresponding to at least one of:
requesting a replacement card;
selecting a personal identification number for said created account;
updating personal information for a holder of said created account;
deleting said created account; selecting a PIC; and
requesting a report.
67. The electronic funds distribution method according to Claim
46, further comprising the step of receiving administration data
corresponding to distribution processor administrative functions.
68. The electronic funds distribution method according to Claim
67, wherein said distribution processor administration functions include at
least one o
administering company account security data;
administering company account profile data;
displaying master and sub-account data; and
ordering a card account starter kit.
69. The electronic funds distribution method according to Claim
46, wherein said account is a card account and said account configuration
data is card account configuration data.
PCT/US2000/020145 1999-08-24 2000-07-24 Electronic funds disbursement system and method WO2001015101A1 (en)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU62352/00A AU6235200A (en) 1999-08-24 2000-07-24 Electronic funds disbursement system and method

Applications Claiming Priority (4)

Application Number Priority Date Filing Date Title
US15043499P 1999-08-24 1999-08-24
US60/150,434 1999-08-24
US45728199A 1999-12-08 1999-12-08
US09/457,281 1999-12-08

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Citations (3)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5866889A (en) * 1995-06-07 1999-02-02 Citibank, N.A. Integrated full service consumer banking system and system and method for opening an account
WO1999009470A1 (en) * 1997-08-13 1999-02-25 Citicorp Development Center, Inc. Personal banking machine
WO1999015985A1 (en) * 1997-09-23 1999-04-01 Fredric Edelman Computer assisted and/or implemented process and architecture for administering an investment and/or retirement program

Patent Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US5866889A (en) * 1995-06-07 1999-02-02 Citibank, N.A. Integrated full service consumer banking system and system and method for opening an account
WO1999009470A1 (en) * 1997-08-13 1999-02-25 Citicorp Development Center, Inc. Personal banking machine
WO1999015985A1 (en) * 1997-09-23 1999-04-01 Fredric Edelman Computer assisted and/or implemented process and architecture for administering an investment and/or retirement program
US6064986A (en) * 1997-09-23 2000-05-16 Edelman Financial Services, Inc. Computer assisted and/or implemented process and architecture for customer account creation, maintenance and administration for an investment and/or retirement program

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WO2001015101B1 (en) 2001-06-28

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