Remittance system with improved service for unbanked individuals

Abstract

A service provider computer receives a request for a transfer of a remittance amount from a sender's payment card account to a recipient without an account. The service provider computer transmits a transaction authorization request and a hold on the sender's payment card account for the remittance amount via a payment card system to the sender's financial institution (FI), receives transaction request approval, and establishes a transaction data record. The service provider computer then transmits the transaction identification code to the sender, receives a transaction identification code and a transaction data record validity request from a receiving FI, provides the transaction data record, and receives the transaction identification code and a newly issued recipient payment card account number from the receiving FI. The service provider computer then initiates a payment transaction in a payment card system to route the remittance amount from the sender's payment card account to the recipient's newly issued payment card account.

What is claimed is: 
     
         1 . A method comprising:
 receiving, at a service provider computer, a request for a transfer of a remittance amount from a sender having a payment card account issued by a sender's financial institution (FI) to a recipient without a payment card account;   transmitting, by the service provider computer via a payment card system to the sender's FI, a transaction authorization request and a hold on the sender's payment card account in an amount to cover the remittance amount;   receiving, by the service provider computer via the payment card system, an approval of the transaction authorization request by the sender's FI;   establishing, by the service provider computer, a transaction data record identified by a unique transaction identification code and comprising the remittance amount, the date of the request, the sender's name, the sender's payment card account number and the recipient's name;   transmitting, by the service provider computer to the sender, the transaction identification code;   receiving, by the service provider computer from a receiving financial institution (FI), the transaction identification code and a transaction data record validity request;   providing, by the service provider computer to the receiving FI, the transaction data record;   receiving, by the service provider computer from the receiving FI, the transaction identification code and a recipient payment card account number of a payment card account newly issued to the recipient; and   initiating, by the service provider computer in a payment card system, a payment transaction to route the remittance amount from the sender's payment card account to the recipient's newly issued payment card account.   
     
     
         2 . The method of  claim 1 , wherein transmitting the transaction identification code further comprises transmitting an identity of at least one receiving FI in the recipient's area to the sender. 
     
     
         3 . The method of  claim 1 , further comprising:
 transferring the remittance amount from the sender's payment card account to a settlement account at the sender's FI; and   transferring the remittance amount from the settlement account to the recipient's newly issued payment card account.   
     
     
         4 . The method of  claim 1 , further comprising updating, by the service provider computer, a user profile associated with the sender with recipient account information comprising at least the recipient's name and the recipient payment card account number. 
     
     
         5 . The method of  claim 1 , further comprising transmitting, by the service provider computer to the sender's FI, recipient account information comprising at least the recipient's name and the recipient payment card account number for updating of a user profile associated with the sender. 
     
     
         6 . The method of  claim 1 , wherein the hold is valid for a predetermined time period, and wherein the remittance transaction is canceled when the recipient fails to claim the remittance amount before the predetermined time period expires. 
     
     
         7 . The method of  claim 6 , further comprising, when the remittance transaction is canceled due to expiration of the predetermined time period, extending, by the service provider computer, the predetermined time period in response to a request by the sender. 
     
     
         8 . The method of  claim 1 , wherein the remittance amount is charged to the sender's payment card account only upon consummation of the transfer. 
     
     
         9 . The method of  claim 1 , wherein the sender's FI is in a first country and the recipient's FI is in a second country different from the first country. 
     
     
         10 . An apparatus, comprising:
 a processor;   a communication device operably connected to the processor; and   a non-transitory storage device operably connected to the processor, the storage device storing instructions configured to cause the processor to:
 receive a request for a transfer of a remittance amount from a sender having a payment card account issued by a sender's financial institution (FI) to a recipient without a payment card account; 
 transmit, via a payment card system to the sender's FI, a transaction authorization request and a hold on the sender's payment card account in an amount to cover the remittance amount; 
 receive an approval of the transaction authorization request by the sender's FI; 
 establish a transaction data record identified by a unique transaction identification code and comprising the remittance amount, the date of the request, the sender's name, the sender's payment card account number and the recipient's name; 
 transmit the transaction identification code to the sender; 
 receive the transaction identification code and a transaction data record validity request from a receiving financial institution (FI); 
 provide the transaction data record to the receiving FI; 
 receive the transaction identification code and a recipient payment card account number of a payment card account newly issued to the recipient from the receiving FI; and 
 initiate a payment transaction in a payment card system to route the remittance amount from the sender's payment card account to the recipient's newly issued payment card account. 
   
     
     
         11 . The apparatus of  claim 10 , wherein the instructions stored in the storage device for transmitting the transaction identification code further comprises instructions configured to cause the processor to transmit an identity of at least one receiving FI in the recipient's area to the sender. 
     
     
         12 . The apparatus of  claim 10 , wherein the instructions stored in the storage device further comprise instructions configured to cause the processor to:
 transfer the remittance amount from the sender's payment card account to a settlement account at the sender's FI; and   transfer the remittance amount from the settlement account to the recipient's newly issued payment card account.   
     
     
         13 . The apparatus of  claim 10 , wherein the instructions stored in the storage device further comprise instructions configured to cause the processor to update a user profile associated with the sender with recipient account information comprising at least the recipient's name and the recipient payment card account number. 
     
     
         14 . The apparatus of  claim 10 , wherein the instructions stored in the storage device further comprise instructions configured to cause the processor to transmit recipient account information to the sender's FI, the account information comprising at least the recipient's name and the recipient payment card account number for updating of a user profile associated with the sender. 
     
     
         15 . The apparatus of  claim 10 , wherein the instructions for transmitting a hold on the sender's payment card account in an amount to cover the remittance amount further comprises instructions configured to cause the processor to enforce a predetermined time period for the hold causing cancellation of the remittance transaction when the recipient fails to claim the remittance amount before the predetermined time period expires. 
     
     
         16 . The apparatus of  claim 15 , further comprising instructions stored in the storage device configured to cause the processor to:
 notify the sender that the remittance transaction was cancelled due to expiration of the predetermined time period; and   extend the predetermined time period in response to a request by the sender.   
     
     
         17 . The apparatus of  claim 10 , wherein the instructions stored in the storage device further comprise instructions configured to cause the processor to charge the remittance amount to the sender's payment card account only upon consummation of the transfer.