System and method for activating or changing the status of an account associated with a prepaid card

Abstract

A system and method for activating and funding prepaid cards at the point of sale by making innovative use of existing point-of-sale devices and existing credit/debit card acceptance networks and processes. The invention obviates the need to implement new/different technology at point-of-sale terminals that are widely used at retail outlets. This invention makes use of the existing credit and charge card systems and processes, including industry standard message formats, to settle funds and fees between the seller and the issuer of the prepaid card, thus further reducing the expense and time-to-market for product distribution.

1 . A method comprising:
 inferring, by a charge authorization computer, that a request to apply a credit is a request to create a new first stored value account, wherein a stored value account identifier does not correspond to any stored value account identifier that is presently maintained by the charge authorization computer, and wherein a processing type code is associated with a request to apply the credit to the stored value account associated with the stored value account identifier;   creating, by the charge authorization computer, the new first stored value account;   designating, by the charge authorization computer, the new first stored value account as corresponding to the stored value card;   crediting, by the charge authorization computer, an amount to the new first stored value account;   receiving, by the charge authorization computer and from a user of the new first stored value account, information associated with the user of the new first stored value account; and   activating, by the charge authorization computer, the new first stored value account in response to receiving the information associated with the user of the new first stored value account.   
     
     
         2 . The method of  claim 1 , wherein a first ISO/IEC compliant message comprises the processing type code in the range 20-2Z, wherein the processing type code and the range are defined by ISO/IEC 8583. 
     
     
         3 . The method of  claim 1 , wherein a POS terminal transmits a first ISO/IEC compliant message in response to a merchant selecting a funding, credit, return or void function of the POS terminal. 
     
     
         4 . The method of  claim 1 , further comprising determining, by the charge authorization computer, that the first stored value account requires a second authorization step. 
     
     
         5 . The method of  claim 1 , further comprising maintaining, by the charge authorization computer, an account with each merchant to track credits and debits to a plurality of transaction accounts. 
     
     
         6 . The method of  claim 1 , wherein the new first stored value account is associated with a form factor that follows the CR80 standard, wherein the form factor is at least one of a first stored value card and a second stored value card. 
     
     
         7 . The method of  claim 1 , wherein the new first stored value account is associated with a key fob. 
     
     
         8 . The method of  claim 1 , further comprising receiving, at the charge authorization computer, a first ISO/IEC compliant message from a point-of-service (POS) terminal, wherein the POS terminal includes POS hardware and POS software, wherein the POS hardware and the POS software have not been modified to accommodate processing transactions to at least one of activate stored value accounts or load stored value accounts, wherein stored valued accounts are associated with stored value cards. 
     
     
         9 . The method of  claim 1 , wherein a seller is provided with a plurality of stored value cards, and a customer conducting a transaction with the seller acquires a stored value card from the seller. 
     
     
         10 . The method of  claim 1 , further comprising parsing, by the charge authorization computer, a first ISO/IEC 8583 compliant message to create a first parsed transaction request comprising the stored value account identifier associated with a stored value card, a first transaction amount, and the processing type code. 
     
     
         11 . The method of  claim 1 , wherein the information associated with the user of the new first stored value account cannot be transmitted to the charge authorization computer by way of the POS terminal. 
     
     
         12 . The method of  claim 1 , further comprising updating, by the charge authorization computer, the status of the stored value card from inactive to pending active. 
     
     
         13 . The method of  claim 1 , further comprising:
 receiving, by the charge authorization computer, a first ISO/IEC compliant message from a point-of-service (POS) terminal, wherein the POS terminal includes POS hardware and POS software, wherein the POS hardware and the POS software have not been modified to accommodate processing transactions to at least one of activate stored value accounts or load stored value accounts, wherein stored valued accounts are associated with stored value cards.   determining, by the charge authorization computer, a first account limit associated with the first stored value account, the account limit at least partially based on the first transaction amount;   authorizing, by the charge authorization computer, merchants to receive additional funds from an end-user in order to increase the first account limit, wherein the merchants indicate the amount of the increase by transmitting a second ISO/IEC 8583 compliant message in a format selected from the group of ISO/IEC 8583 standard message formats consisting of: funding, credit, return and void formats;   receiving, by the charge authorization computer, a third ISO/IEC 8583 standard message from the POS terminal;   parsing, by the charge authorization computer, third ISO/IEC 8583 compliant message to create a second parsed transaction request, comprising second account identifier, a second transaction amount, and a second processing type code;   determining, by the charge authorization computer, that the second processing type code is associated with a request to apply a credit to a second transaction account associated with the second account identifier;   determining, by the charge authorization computer and based upon the second account identifier, that the second transaction account associated with the second ISO/IEC compliant message is an account associated with a second stored value card;   in response to the determining that the second transaction account is the second stored value account, inferring, by the charge authorization computer, that the request to apply a credit is a request to reload the second stored value account; and   increasing, by the charge authorization computer, a second account limit associated with the second stored value account by an amount at least partially determined by the second transaction amount.   
     
     
         14 . A system comprising:
 a processor for authorizing a charge,   a tangible, non-transitory memory configured to communicate with the processor,   the tangible, non-transitory memory having instructions stored thereon that, in response to execution by the processor, cause the processor to perform operations comprising:
 inferring, by the processor, that a request to apply a credit is a request to create a new first stored value account, wherein a stored value account identifier does not correspond to any stored value account identifier that is presently maintained by the charge authorization computer, and wherein a processing type code is associated with a request to apply the credit to the stored value account associated with the stored value account identifier; 
 creating, by the processor, the new first stored value account; 
 designating, by the charge authorization computer, the new first stored value account as corresponding to the stored value card; 
 crediting, by the processor, an amount to the new first stored value account; 
 receiving, by the processor and from a user of the new first stored value account, information associated with the user of the new first stored value account; and 
 activating, by the processor, the new first stored value account in response to receiving the information associated with the user of the new first stored value account. 
   
     
     
         15 . The system of  claim 14 , further comprising receiving, by the processor, a first ISO/IEC compliant message from a point-of-service (POS) terminal, wherein the POS terminal includes POS hardware and POS software, wherein the POS hardware and the POS software have not been modified to accommodate processing transactions to at least one of activate stored value accounts or load stored value accounts, wherein stored valued accounts are associated with stored value cards. 
     
     
         16 . The system of  claim 14 , further comprising parsing, by the processor, a first ISO/IEC 8583 compliant message to create a first parsed transaction request comprising the stored value account identifier associated with a stored value card, a first transaction amount, and the processing type code. 
     
     
         17 . The system of  claim 14 , wherein the information associated with the user of the new first stored value account cannot be transmitted to the charge authorization computer by way of the POS terminal. 
     
     
         18 . The system of  claim 14 , further comprising updating, by the processor, the status of the stored value card from inactive to pending active. 
     
     
         19 . The system of  claim 14 , further comprising:
 receiving, by the processor, a first ISO/IEC compliant message from a point-of-service (POS) terminal, wherein the POS terminal includes POS hardware and POS software, wherein the POS hardware and the POS software have not been modified to accommodate processing transactions to at least one of activate stored value accounts or load stored value accounts, wherein stored valued accounts are associated with stored value cards.   determining, by the processor, a first account limit associated with the first stored value account, the account limit at least partially based on the first transaction amount;   authorizing, by the processor, merchants to receive additional funds from an end-user in order to increase the first account limit, wherein the merchants indicate the amount of the increase by transmitting a second ISO/IEC 8583 compliant message in a format selected from the group of ISO/IEC 8583 standard message formats consisting of: funding, credit, return and void formats;   receiving, by the processor, a third ISO/IEC 8583 standard message from the POS terminal;   parsing, by the processor, third ISO/IEC 8583 compliant message to create a second parsed transaction request, comprising second account identifier, a second transaction amount, and a second processing type code;   determining, by the processor, that the second processing type code is associated with a request to apply a credit to a second transaction account associated with the second account identifier;   determining, by the processor and based upon the second account identifier, that the second transaction account associated with the second ISO/IEC compliant message is an account associated with a second stored value card;   in response to the determining that the second transaction account is the second stored value account, inferring, by the processor, that the request to apply a credit is a request to reload the second stored value account; and   increasing, by the processor, a second account limit associated with the second stored value account by an amount at least partially determined by the second transaction amount.   
     
     
         20 . A non-transitory, tangible computer readable storage medium having instructions stored thereon that, in response to execution by a charge authorization computer, causes the charge authorization computer to perform operations comprising:
 inferring, by the charge authorization computer, that a request to apply a credit is a request to create a new first stored value account, wherein a stored value account identifier does not correspond to any stored value account identifier that is presently maintained by the charge authorization computer, and wherein a processing type code is associated with a request to apply the credit to the stored value account associated with the stored value account identifier;   creating, by the charge authorization computer, the new first stored value account;   designating, by the charge authorization computer, the new first stored value account as corresponding to the stored value card;   crediting, by the charge authorization computer, an amount to the new first stored value account;   receiving, by the charge authorization computer and from a user of the new first stored value account, information associated with the user of the new first stored value account; and   activating, by the charge authorization computer, the new first stored value account in response to receiving the information associated with the user of the new first stored value account.