US20120215659A1

US20120215659A1 - Systems and Methods Relating to Bank Transactions, Prepaid Access, Payment Based Promotions, and Payment Networks

Info

Publication number: US20120215659A1
Application number: US13/400,033
Authority: US
Inventors: Steven Nargizian
Original assignee: Individual
Current assignee: Individual
Priority date: 2011-02-17
Filing date: 2012-02-17
Publication date: 2012-08-23
Also published as: US20140236816A1; US8719136B2; EP2676231A1; AU2012219253A1; US8577768B2; US20130024258A1; WO2012112968A1; US20140067653A1; EP2676231A4; CA2827320A1; US20130024327A1

Abstract

A payment network (for example, an open-loop payment network or a closed-loop payment network) is provided and includes systems and methods of payment utilizing bank transactions (e.g., credit based transactions and debit based transactions) and prepaid access. Systems and/or methods are also provided relating to payment based promotions. Additionally, a platform is provided where users can secure terms of use associated with prepaid access, without having to purchase the prepaid access. Further, users can secure custom terms in connection with qualifying bank transactions conducted in the future.

Description

RELATED APPLICATIONS

This application claims the benefit of U.S. Provisional Application Ser. No. 61/443,945, filed on Feb. 17, 2011, and U.S. Provisional Application Ser. No. 61/513,482, filed on Jul. 29, 2011, the entire disclosures of which are expressly incorporated by reference.

BACKGROUND OF THE INVENTION

1. Field of the Invention
The present invention comprises systems and methods relating to electronic payments. More specifically, the present invention is comprised of systems and methods relating to bank transactions, prepaid access, payment based promotions and payment networks.
1. Related Art
Businesses have accepted various methods of payment for generations. For example, merchants provided “store credit” to customers who returned product, using a paper voucher; these were given in lieu of a cash refund, and could be used to purchase other product. Paper gift certificates were popularized in the mid-1930s by big department stores. Payment networks have provided credit or charge cards since the 1950's, and later, debit cards. “Closed-System” gift cards descended from the paper gift certificate in the 1990's. Gift cards fall under the classification of “prepaid access.”

REFERENCE GUIDE

User: The word “user” (as used herein) refers to persons or entities purchasing or possessing prepaid access or options.
Terms: The word “terms” (as used herein) may also encompass “conditions” (i “terms and/or conditions”).
Goods and/or Services (Products): The terms “goods and/or services” and “products” have the same meaning and are used interchangeably herein.
and/or: The term “and/or” is used herein to indicate that one or more of the stated cases may occur. For example, the sentence “He will have cake, pie, and/or brownies” indicates that although the person may have any of the three listed desserts, the choices are not exclusive; the person may have one, two, or all three of the choices.

SUMMARY OF THE INVENTION

The present invention relates to a payment network (for example, an open-loop payment network or a closed-loop payment network) and includes systems and methods of payment utilizing bank transactions (e.g., credit based transactions and debit based transactions) and prepaid access. Systems and/or methods are also provided relating to payment based promotions. Additionally, a platform is provided where users can secure terms associated with prepaid access, without having to purchase the prepaid access. Further, users can secure custom terms in connection with qualifying bank transactions conducted in the future.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing features of the invention will be apparent from the following Detailed Description of the Invention, taken in connection with the accompanying FIGS. in which:

FIG. 1A is a sample web-page illustrating how a merchant can affiliate itself with the system;

FIG. 1B is a sample webpage illustrating how a merchant can engage in a payment based promotion;

FIGS. 1C and 1D are sample webpages illustrating how a user can affiliate itself with the system;

FIG. 1E is a diagram depicting an example of an embodiment of the system having to do with prepaid access;

FIG. 1F is a sample webpage illustrating how a user can search for a particular merchant, brand, or product of interest;

FIG. 1G is a sample webpage illustrating how a user can view redemption locations, propose prepaid access affiliated with a merchant, and provide contact information of a person they would like to gift it to;

FIG. 1H is a sample webpage illustrating how a user can purchase the proposed prepaid access;

FIG. 1I is a sample e-mail transmission from a system provider to a gift recipient;

FIG. 1J is a sample e-mail transmission from a system provider to a gift recipient (not recognized by the system);

FIG. 1K is a sample webpage illustrating how prepaid access can be organized and accounted for;

FIG. 1L is a sample webpage illustrating how a user can obtain money for prepaid access.

FIG. 2A is a sample web-page illustrating how a vendor can affiliate itself with the system;

FIG. 2B is a sample webpage illustrating how a vendor can engage in a payment based promotion;

FIG. 2C is a sample webpage illustrating how a user can search for a particular merchant, brand, or product of interest;

FIG. 2D is a sample webpage illustrating how a user can propose terms of future bank transactions that meet certain criteria;

FIG. 2E is a diagram depicting an example of an embodiment of the system having to do with future bank transactions;

FIG. 2F is a sample webpage illustrating how a user can pay to lock-in the proposed terms;

FIG. 3A is a sample web-page illustrating how a merchant can provide a payment based promotion;

FIG. 3B is a sample web-page illustrating how a vendor can provide a payment based promotion;

FIG. 3C is a sample web-page illustrating how a parts supplier can provide a payment based promotion;

FIG. 3D is a diagram showing an example of another embodiment of the system wherein multiple promotions are combined and a token is utilized;

FIG. 3E is a sample web-page illustrating user customization of an offer;

FIG. 3F is a sample web-page illustrating the organization and accounting of prepaid access tokens;

FIG. 4A is a diagram showing an example of another embodiment wherein the invention is implemented within an open-loop payment system;

FIG. 4B is a diagram showing authorization processing of a bank affiliated transaction;

FIG. 5 is a diagram showing sample components which can be used to implement the present invention; and

FIG. 6 is a diagram showing sample components of a processing server (depicted in FIG. 5) in greater detail.

DETAILED DESCRIPTION OF THE INVENTION

The present invention can be used in conjunction with a payment network (for example, an open-loop payment network or a closed-loop payment network). Embodiments of the present invention include systems and methods of payment utilizing bank transactions (e.g., credit based transactions and debit based transactions) and prepaid access.
Embodiments of the present invention also encompass systems and/or methods pertaining to payment based promotions. Embodiments of the present invention include a platform where users can secure terms of use associated with prepaid access, without having to purchase the prepaid access. The term “prepaid access” as used herein may refer to proposed (or potential) prepaid access, or existing prepaid access in which terms of use are established. Embodiments of the present invention also include a platform where users can secure custom terms in connection with qualifying bank transactions conducted in the future.
The present invention can provide savings over and above other savings. For example, a coupon offered outside the system may not be combinable with other offers; however, costs associated with the payments provided utilizing the present invention may amount to less than the value provided by the payment. The present invention can be implemented business to business and/or business to consumer.
A person or entity could use the system in various capacities as various parties. For example, a bakery can utilize the system as a merchant, in connection with a purchase of bread (from the bakery). The bakery could use the system as a promoter; where, for example, prepaid access (redeemable at a supermarket) is exclusive to the bakery's brand. Alternatively, the bakery could utilize the system as a user, in connection with a purchase of flower from a mill (the merchant).
Parties referenced herein (e.g., a “merchant,” etc.), are referenced per their role in a particular transaction. In the examples depicted and described herein, there may be method steps, processes, choices and/or features which can also be provided in connection with other examples or embodiments, as would be understood by one having ordinary skill in the art. Furthermore, multiple method steps may be combined in a single block of a diagram. Moreover, while many of the figures show method steps which are numbered in order, it should be pointed out that the order in which they are performed may not be the only order in which they can be effectively provided.
For illustrative purposes, such examples may include numerical and/or monetary amounts; this is not intended to limit the spirit or scope of the invention. Furthermore, in the embodiments described herein, there are numerous variations and/or modifications that can be made without departing from the spirit and scope of the invention, as would be understood by one having ordinary skill in the art. Moreover, multiple variations can be made regarding what different parties do, may be obligated to do, and/or are authorized to do, without departing from the spirit and scope of the present invention.
As will be discussed, a system provider can include a processing server, web server, software, and hardware, etc. for facilitating the systems and methods provided herein (e.g., as described in connection with FIGS. 5 and 6). Furthermore, references to parties (e.g., a promoter) herein, may include reference to the party's computer system. Examples of embodiments of the present invention are discussed in detail below. Moreover, the present invention can be implemented as an open-loop payment network, a closed loop payment network, combinations of the same, etc.
FIGS. 1A-1L show a method and system relating to prepaid access involving a merchant/promoter 12, a user 16 and a system provider 14. With reference to FIG. 1E (and the reference numbers therein), FIG. 1A is a sample webpage provided to a promoter (e.g., merchant/promoter 12, a retail coffee chain), by the system provider 14. Using the webpage, information identifying the merchant/promoter 12 (e.g., an employer identification number [EIN] or a log-in password) can be communicated via an electronic network such as the Internet to the system provider 14 where it can be stored on a server.
Described in FIG. 1B and block 20 of FIG. 1E is a sample webpage that may require log-in information (e.g., a password) to access. Here, the merchant/promoter 12 is provided with a platform where promotion data such as a promotion period (an optional timeframe of a promotion) and a promotion percentage (which can be based upon various factors) can be entered and transmitted to the system provider 14. Per this example, the monetary amount derived from the promotion percentage is based upon the value provided in connection with redemptions of affiliated prepaid access (sold during the promotion period). In embodiments of the invention promotion amounts could be calculated in other ways, e.g., based on the initial value or issued value of prepaid access, in which case the payments for the prepaid access can be transferred to another party, (e.g., a merchant), before redemption.
FIGS. 1C and 1D are sample web pages which could be used to transmit pertinent information from the user 16 to the system provider 14 such as the user's social security number or possible methods of payment. Such information can be stored on the system provider's server and incorporated on computer readable media, such as on a payment apparatus, e.g., a payment card, smartphone, etc.
FIG. 1E is sample diagram of an embodiment of the present invention, generally indicated by 10. Depicted in block 22, a user 16 has logged-in and is provided with the ability to purchase and transfer prepaid access to another user 18. A sample webpage that could be used for these purposes is shown in FIG. 1G. Here, the amount of prepaid access desired, notification the prepaid access shall be gifted, contact information of the gift recipient, etc., is communicated to the system provider 14.
The system provider's processing engine can calculate a cost for the proposed prepaid access, as well as any associated service fees, based on the data received from the merchant/promoter 12, the user 16 and data configured by the system provider 14 (collectively the “processing data”). As per this example, the merchant/promoter 12 promises to pay (amounts equal to) 10% of the redemptions affiliated with the promotion. Related service fees can also be calculated using the processing data. As per the example, a $3.33 service fee is calculated. Upon processing, the resulting information can be transmitted to the user 16 via the Internet, as illustrated in FIG. 1H.
Also depicted in FIG. 1H and block 22 of FIG. 1E, the user 16 can purchase the proposed prepaid access for $90. Upon the purchase (as per this example), data including a serial number, time of purchase, initial redemption value, etc., can be transmitted from the system provider 14 to promoters (e.g., merchant/promoter 12). As per FIG. 1I and block 24 of FIG. 1E, an e-mail is sent to the gift recipient (e.g., user 18), indicating the prepaid access has been applied and is available for use. If the gift recipient is not affiliated with the system, an e-mail requesting the recipient to join can be sent (e.g., as depicted in FIG. 1J). It could be a requirement that a gift recipient register in order to use the gifted prepaid access. Thus the present invention includes a system and method for acquiring users.
Depicted in block 26 of FIG. 1E, the prepaid access can be redeemed in connection with a purchase (or multiple purchases) by the user 18 (utilizing a payment apparatus) from the merchant/promoter 12. In this example, the merchant/promoter 12 is the only merchant with which the prepaid access can be redeemed. Accordingly, a particular merchant or particular merchants can be associated with pre-paid access to the exclusion of other merchants within a payment network. Upon the redemption, transaction data, including the value redeemed (e.g., $62.04), data identifying the merchant (e.g., the merchant EN), user information, serial number, time and location of the redemption, etc., can be transmitted to the system provider 14 from the merchant/promoter 12, e.g. the merchant's point of sale system “POS,” and further transmitted to other parties (e.g., the merchant/promoter's authorized person in charge of promotions). The system provider 14 can be preauthorized to initiate a $6.20 ACH payment (for the promotion) from the merchant/promoter 12 (to the system provider 14). Finally, as per block 28, a $62.04 settlement is provided to the merchant/promoter 12, leaving user 18 with a $37.96 unused prepaid access balance. Per FIG. 1K, activity related to prepaid access can be organized and accounted for. Also, a cash value can be provided for issued prepaid access (per FIG. 1L), at the user's discretion.
Embodiments of the present invention can also provide options. An option can be used to secure offers having to do with the purchase of proposed prepaid access. In such an embodiment, payments can be made to secure offers and optional second payments can be made for the prepaid access. Moreover, such offers can extend for a stated time period or indefinitely. This could be implemented variously, for example, the first payment can be made to purchase an option, or as a service fee.
Standardized identifiers such as Global Trade Identification Numbers (GTIN) can be used to affiliate/link payment based promotions with prepaid access, as well as identify/process the redemptions of such. The same can be used to identify/process bank transactions that qualify for (or meet the requirements of) payment based promotions. As is common, code reading devices (e.g., laser scanners) and computer readable media (e.g., bar codes) can be utilized in connection with such identifiers.
Embodiments of the present invention can be used to secure offers relating to bank transactions (conducted in the future) that meet the criteria of (or qualify for) payment based promotions. Traditionally, banks bill cardholders on a dollar for dollar basis in connection with bank transactions. For example, if a cardholder were to purchase $100 worth of product from a merchant using a bank issued credit card, the card holder's credit line would diminish by $100, and the card holder would be liable to pay back the $100 to the issuing bank. However, using the system, a user may only be liable (to a credit issuing bank) for $94 in connection with a $100 credit based transaction. In such an embodiment, an initial payment is made to secure custom terms (optionally; for a stated period of time), and subsequent payments can be made (by the same party or a different party) in connection with the value provided by qualifying (or associated) bank transactions (if any). Furthermore, initial payments can be provided to (or divided among) various parties (e.g., a system provider, a promoter, a different promoter, etc.) or combinations of the same.
The following represents an example of an embodiment of the system wherein the system provider also comprises a bank (i.e., a closed-loop payment network). With reference to FIG. 2E (and the reference numbers therein), FIG. 2A is a sample webpage where promoter 48 (e.g., a watch manufacturer) can affiliate itself with the present invention. Here, a platform is provided where a promoter 48 can enter requested information for identification purposes (e.g., the promoter's GTIN company prefix) and transmit the same to a system provider/bank 44 (for storing, future access, processing, etc.).
FIG. 2B is a sample webpage provided by the system provider/bank 44 that can be used for payment based promotions (also described in block 50 of FIG. 2E). Here, a platform is provided where the promoter 48 can enter a desired promotion period (e.g., Jan. 10^ththrough Jan. 25^th) and choose a promotion percentage (e.g., the monetary amount of which could be based on the value provided in connection with bank transactions that may be conducted in the future and that fall within parameters of the promotion). This information can be transmitted to the system provider/bank 44 (as shown in FIG. 2B).
FIG. 2C shows a sample web page that can be used to locate products, brands, and merchants affiliated with the system. FIG. 2D is a sample webpage in which a user has located a particular brand of interest and is presented with a platform where he or she can form an agreement with the system provider/bank 44 regarding custom terms that govern qualifying bank transactions conducted in the future. Here, the user 46 proposes a brand and a maximum value of an option and transmits the same to the system provider/bank 44. As per this example, the system provider/bank 44 can calculate a price for the option based on data received from the promoter 48 and user 46, and can transmit the same to the user 46 (as per FIG. 2F) via an electronic network.
FIG. 2E is a diagram illustrating an example of an embodiment of the present invention generally indicated at 40. Described in blocks 52 and 56 of FIG. 2E and further depicted in FIG. 2F, an online platform is provided where the user 46 can purchase an option (e.g. for $100) relating to custom terms that govern qualifying bank transactions conducted in the future (e.g., bank transactions involving a particular brand). Upon doing so, the user's account can be updated to show possession of the option (not shown). As per block 54 of FIG. 2E, notification detailing the purchase of the option (including, for example, the price paid and an option serial number), as well as the terms of use affiliated with the option (such as the maximum value that can be provided in connection with exercising of the option, e.g. $5,000, etc.), can be transmitted to the promoter 48 along with a payment, e.g. $50 (in consideration of an extended promotion period/offer). In embodiments, such options can be partially exercised (multiple times) until the maximum underlying value associated with the exercising of the option is attained or the option has expired. Per this example, the user 46 has established a checking account with the system provider/bank 44 and as per block 58, the option is automatically exercised in conjunction with a qualifying debit based transaction (e.g., initiated by the merchant 42). A qualified debit based transaction could be, for example, one in which the associated transaction data matches data affiliated with a payment based promotion (e.g., the data being a GTIN company prefix).
Described in block 60 of FIG. 2E, transaction data (e.g., including the product GTIN) can be transmitted from the merchant 42 to the system provider/bank 44. Described in block 62, the system provider/bank 44 is pre-authorized by user 46 to debit $4,700 from a checking account (held with system provider/bank 44). As per blocks 64 and 66, the transaction data (e.g., including the option serial number) can be forwarded to the promoter 48 and the system provider/bank 44 can initiate a $300 ACH payment (also as previously authorized) for the promotion. Finally, as per block 68, settlement (e.g., $5,000) is provided to the merchant 42. This example or embodiment can also apply to credit based transactions, as would be understood by one possessing ordinary skill in the art.
The systems described herein include a platform where terms related to payments to merchants for credit redemptions, can be specified by the merchants. For example, a platform can be provided where a merchant can determine the monetary amount it will be paid for prepaid access redemptions versus the monetary value of the redemption (“the payment/redemption rate”). Or as provided by this example, exact amounts can be specified for token redemptions. As is commonly done, tokens (a form of prepaid access) can be utilized to purchase specific products regardless of the product's price.
FIGS. 3A, 3B, and 3C are sample web-pages illustrating an embodiment of the present invention where payment based promotions can be combined, providing greater savings to users. With reference to FIG. 3D (and the reference numbers therein), FIG. 3A depicts a sample web-page where a merchant/promoter 72 (e.g., an electronics chain) enters an amount (e.g., $960) for which its willing to redeem particular tokens (e.g., tokens for products affiliated with a specific GTIN). In boxes 82A, 82B, and 82C, platforms are provided for a merchant, a first promoter, and a second promoter to provide promotions. As per this example, a first promoter 78 (a computer company) can communicate with a second promoter 80 (a computer component manufacturer) regarding a potential contribution to a promotion. As depicted in FIG. 3B, a platform can be provided where first promoter 78 can authorize, for example, $120 ACH transfers to a system provider 74 for every redeemed token (e.g., affiliated with a GTIN) purchased during a particular promotion. As depicted in FIG. 3C, a platform can be provided where the second promoter 80 can authorize, for example, $25 ACH transfers to the system provider 74 for every redeemed token affiliated with the same GTIN (e.g., the product of which contains the manufacturer's component) purchased during a particular promotion period.
Embodiments of the present invention can be implemented where offers to buy prepaid access (or options) can be communicated from a user 76 to a system provider 74. As described in block 84 of FIG. 3D, user 76 submits a $875 offer to the system provider 74 to purchase a token (affiliated with the GTIN). The system provider 74 can search its database to identify merchants who will redeem the token for the least amount of money. As provided by this example, the system provider 74 determines the $960 entry by merchant 72 to be the lowest. The system provider 74 can further search to see if any other payment based promotions are currently affiliated with the GTIN, and concludes the aforementioned promotions of first promoter 78 and second promoter 80 qualify.
Upon processing data received in connection with FIGS. 3A, 3B, and 3C (the funds it can take in versus the funds it would have to pay), as well as pre-programmed parameters (provided by the system provider 74) having to do with what threshold shall constitute acceptance, notice indicating an acceptance or rejection can be communicated to the user 76 and as per block 86 the offer is accepted, and the token is purchased. As shown in FIG. 3F, the system provider 74 can apply the token to the user's account.
Data related to the token and its purchase (including a token serial number) can be transmitted to the first promoter 78, the second promoter 80, and the merchant/promoter 72. The system provider 74 is previously authorized by user 76 to initiate an $875 ACH payment for the token from its bank account.
As described by block 88, utilizing a mobile phone as a payment apparatus, the token is redeemed in connection with a purchase (of the affiliated product) from merchant 72. As indicated by block 90, transaction data associated with the token redemption can be transmitted to the system provider 74 from the merchant POS. As designated by block 92, the system provider 74 can transmit data (e.g., validating the redemption and charges associated with the promotion) to the first promoter 78, the second promoter 80, and merchant 72 (e.g., a marketing executive). And, as previously authorized, $120 and $25 ACH payments can be respectively initiated by the system provider 74.
Finally, as indicated by block 94, the system provider 74 sends $960 to the merchant 72, as payment for the token redemption. It is of note that the token was purchased for $875.
FIG. 4A is a sample diagram illustrating an embodiment generally indicated at 100 implemented in conjunction with an open-loop payment network. In this implementation a system provider 104 and a partner bank 110 have entered an agreement with respect to the customization of terms associated with bank transactions conducted in the future. As referenced by block 112, a user 102 and the partner bank 110 have entered an agreement in which the partner bank 110 provides the user 102 with a line of credit that can be used in connection with the open-loop payment network. As indicated by block 113, a promoter 106 is provided with a platform to enact a payment based promotion. Here the promoter 106, has chosen a promotion percentage (e.g., 6%) in connection with options purchased before a specified date that are affiliated with the promoter's brand.
As discussed in connection with previous examples and indicated by block 114, a platform can be provided in which a user 102 and system provider 104 can agree upon custom terms associated with bank transactions conducted in the future. Having purchased an option providing rights to the custom terms, a user 102 presents a payment apparatus at block 116 to a merchant 108 in connection with a $5,000 purchase from the merchant 108. An authorization request can be sent from the merchant 108 to the system provider 104 (per block 118A) along with data detailing the transaction (e.g., a product GTIN and data identifying the user 102). Having received the transaction data, the system can be programmed to look for transaction data that qualifies for payment based promotions, and as per this example, has found data corresponding with the promotion provided by promoter 106. As per block 118B, the system provider can be authorized to subtract what will be the promotion amount from the authorization request amount. As provided by block 118C and 118D both requests are approved.
As described in block 120, upon receiving confirmation that the purchase was consummated, the system provider 104 can send billing and/or settlement instructions to the partner bank 110, as well as funds (e.g., $300) necessary to make the merchant whole. As provided by block 124 the partner bank 110 can send a billing statement to the user 102 for repayment, interest, etc., and as per block 128 the user 102 can oblige.
An example of the processing of bank affiliated transactions is shown in FIG. 4B. At the point of sale 108, information is obtained about the goods or services being purchased. This information can include GUN information (level 3 data). This information can be obtained by a laser scanner device reading a bar code associated with the goods or services. Information can also be obtained about the user making the purchase from swiping the user's card, receiving information from the user's smart phone or otherwise. The merchant forwards this information electronically over an electronic network to the system provider to seek authorization for the transaction.
Upon receiving a request for authorization, the system provider can conduct a search at 132 for vendor promotions (or correlating transaction data). The system provider applies any promotions and subtracts an amount from authorization. At decision point 134, a determination is made about whether the search is complete. If not, another search is conducted at 132. When searching is complete, a merchant promotion search is conducted at 136 for any promotions and subtracts an amount from authorization. At decision point 138 a determination is made about whether the search is complete. If not, another search is conducted at 136. If the search is complete, at 140 a $4,700 authorization request is sent to a bank 110. The bank also receives data captured at the point of sale from the merchant. Upon receiving the data and authorization request the bank sends approval to the system provider. At 142, the system provider sends $300 and settlement instructions to the bank. At 144 the bank generates and submits $5,000 ACH payment instructions over an ACH network 131 to the merchant's depository (RDFI).
A diagram showing sample components that can be utilized to implement embodiments of the present invention is shown in FIG. 5 and generally identified at 240. The components depicted in FIG. 5 and discussed herein are not intended to limit the spirit or scope of the present invention. As shown, a network 268 includes a first communication link between a merchant computer system 260 and the system provider computer system 250, and a second communication link between the system provider computer system 250 and a user computer system 266. As such, the system provider, merchant, user, etc., can communicate over an electronic network. Such communication could encompass the sending and receiving of data, prepaid access and funds from party to party. Other communication links between the system provider computer system 250, a vendor computer system 274, a user computer system 286, a facilitator computer system 288, or another party's computer system 280 can be similarly utilized, via the network 268.
Examples of a network 268 could include: the Internet, an intranet, a wide area network (WAN), a local area network (LAN), etc. The computer systems 260, 266, 274, 280, 286, and 288, for example, could each be any suitable computer system having the ability to communicate via the network 268 (e.g., having Internet connectivity), which may for example, be similar to the system provider computer system 250, or a personal computer, a laptop computer, a tablet computer, a smartphone, etc. The servers 252 and 254 could include single or multiple processors (or a single processor having multiple processor cores), and could include any suitable operating system and associated system software, such as the UNIX operating system, Linux, Microsoft Windows, etc. Furthermore, the functions performed by the servers 252 and 254 could be provided by a single computer system, or by multiple networked computer systems (e.g., “cloud” or “grid” computing).
As depicted in FIG. 5, a system provider computer system 250 could include a processing server 252, which could provide much of the functionality and processing described throughout the specification. A web server 254 can host a website that could be utilized as previously described, and a firewall 256 that can provide security for the servers 252 and 254. It shall be understood that the method steps associated with the present invention could be performed, at least in part, via computer-executable instructions stored on computer-readable media.
Card readers and/or code reading scanning devices 262, etc., could also be utilized and data interpreted and collected by such devices could be similarly communicated via the network 268 as would be understood by on skilled in the art. Other electronic means for conveying information such as, but not limited to wireless digital transmissions, electronic cards (e-card), e-mail, text messaging (SMS), etc., could also be utilized.
FIG. 6 is a diagram showing components of the processing provider 252 depicted in FIG. 5, in greater detail. The server 252 could include a storage device 300, a network interface 304, a communications bus 306, a central processing unit (e.g., incorporating a single or multiple-core microprocessor) 308, a random access memory (RAM) 310, etc. The storage device 300 could comprise any suitable computer-readable storage medium such as disk, non-volatile memory (e.g., EPROM, EEPROM, a flash memory, etc.). Much of the functionality provided by the present invention could be provided by a processing software engine 302, which could be embodied as computer-readable program code stored on the storage device 300 and executed by the CPU 308 using any suitable, high or low level computing language, such as Java, C, C++, C#, .NET, etc. The network interface 304 could include an Ethernet network interface device, a wireless network interface device, or any other suitable device which permits the system provider computer system 250 to communicate via a network 268.
Embodiments of the present invention can be viewed (or implemented) as an exchange (e.g., where prepaid access is traded for money). Additionally, embodiments of the present invention can be implemented where prepaid access is purchased on a dollar for dollar basis (the cost equals the value provided) and additional value can be provided at a reduced rate or no additional cost.
Embodiments of the present invention include methods and systems where users can affiliate the intrinsic terms of prepaid access or terms related to qualifying bank transactions conducted in the future. Embodiments of the present invention also provide a means where funds used to purchase prepaid access (including expired prepaid access) can be disbursed to various and/or multiple parties (e.g., refunded to a user). Furthermore, embodiments of the present invention include a secondary market, wherein prepaid access or options can be sold (e.g., from user to user).
Furthermore, particular functions (e.g., functions related to the buying and selling of prepaid access) can be licensed, while other functionality (e.g., related to the exercising of options or the accounting and/or organizing of prepaid access) is not.
The present invention can provide one or more of the following;

- a platform where an agreement with a user can be formed regarding custom terms that govern bank transactions conducted in the future.
- prepaid access affiliated with a particular merchant, or particular merchants within a payment system or network, such that the particular merchant or particular merchants can redeem the prepaid access, while other merchants within the same payment network can not.
- prepaid access that's exclusively redeemable in connection with purchases of a brand, particular products or a particular product.
- user customization of all the intrinsic terms of proposed prepaid access.
- user customization of multiple intrinsic terms of proposed prepaid access.
- user customization of a single intrinsic term of proposed prepaid access.
- prepaid access exclusive to particular users; providing security, enabling account management and other benefits (e.g., refunds).
- a single payment apparatus (e.g., a payment card) that can be used to redeem prepaid access and initiate bank transactions.
- proposed prepaid access; in which the cost can be agreed upon prior to its issuance.
- the electronic transmission of prepaid access.
- the electronic transmission of prepaid access from user to user.
- prepaid access affiliated with vendors.
- prepaid access issued by vendors.
- prepaid access offered by vendors.
- users with the ability to specify the initial redemption value of prepaid access.
- the organizing and accounting of prepaid access.
- settlement to merchants after prepaid access redemptions.
- a means of lowering the cost of prepaid access relative to face value prior to issuance.
- a means of lowering costs associated with bank transactions.
- a means of lowering the cost of credit provided by banks.
- a system and method for combining payment based promotions.
- Systems and methods where multiple parties (e.g., a merchant and a vendor) can jointly participate in or contribute to a payment based promotion.
- anonymity to promoters participating in payment based promotions.
- a means of providing users with savings associated with bank transactions, without discounting products.

payment based promotions in which parties can promote all their products or groups of specific products.
Having thus described the present invention in detail, it is to be understood that the foregoing description is not intended to limit the spirit or scope thereof. Many of the embodiments of the present invention described herein are merely exemplary, and a person skilled in the art may make many variations and modifications without departing from the spirit and scope of the invention.

Claims

1. A method of providing prepaid access comprising:

entering a first agreement with a merchant relating to prepaid access redemptions;

communicating over an electronic network with a user regarding custom terms associated with prepaid access;

selling the prepaid access to the user over an electronic network;

providing the user with the prepaid access;

receiving transaction data associated with a redemption attempt request from the merchant; and

approving the request based on the transaction data, the first agreement, and the custom terms.

2. The method of claim 1 wherein entering the first agreement includes receiving information from the merchant and electronically storing the information.

3. The method of claim 1 wherein communicating with a user includes receiving information from the user and electronically storing the information.

4. The method of claim 1 wherein the step of selling the prepaid access is conducted with a first user and the step of providing the prepaid access to a user comprises providing the prepaid access to a second user.

5. The method of claim 1 further comprising designating particular merchants or a particular merchant within a payment system or network with which the prepaid access is exclusively redeemable, to the exclusion of the other merchants within the payment system or network.

6. The method of claim 1 further comprising designating a specified product or specified products with which the prepaid access is exclusively redeemable.

7. The method of claim 5 further comprising designating a specified product or specified products to the exclusion of other products with which the prepaid access is exclusively redeemable.

8. A method of providing customized terms associated with bank transactions comprising:

entering a first agreement with a merchant regarding bank transactions;

entering a second agreement with a promoter over an electronic network regarding a payment based promotion;

communicating with a user over an electronic network regarding an option for custom terms that govern bank transactions conducted in the future;

processing data received from the user and provided in connection with the second agreement to create an offer with respect to selling the option;

communicating the offer to the user over an electronic network;

receiving a purchase request for the option over an electronic network;

communicating data to the user over an electronic network explaining the option is active;

receiving transaction data in connection with a bank transaction over an electronic network from the merchant;

processing data, including the transaction data received, to determine whether an option should be exercised;

exercising the option;

transmitting a transaction approval to the merchant; and

providing the custom terms to the user.

9. The method of claim 8 wherein the step of receiving transaction data comprises receiving level 3 data.

10. The method of claim 9, wherein the level 3 data comprises data identifying a product.

11. The method of claim 8 wherein the step of communicating with a user includes receiving an offer from a user to purchase an option.

12. The method of claim 8 further comprising providing a redemption apparatus to the user.

13. The method of claim 11 wherein the redemption apparatus is configured for use exclusively by a single user.

14. The method of claim 8 wherein the step of providing custom terms is performed by a third party bank.

15. The method of claim 14 further comprising entering into an agreement with a third party bank to provide the custom terms to the user.

16. The method of claim 8 further comprising customizing terms related to future bank transactions based on data received from a promoter and a user.

17. A payment system using bank transactions comprising:

a provider computer system hosting an electronic platform configured to:

a) communicate with a merchant computer system over an electronic network about bank transaction redemptions; and

b) communicate with a user computer system over an electronic network regarding custom terms that govern future bank transactions;

a customization engine in the provider computer system for creating a custom terms of future bank transactions based on the communications with the merchant and user computer systems; and

means for electronically receiving payments in the provider computer system.

18. A payment system for providing custom bank transactions comprising:

a provider computer system;

a first communication link over an electronic network between the provider computer system and a merchant computer system for communications about bank transaction redemptions;

a second communication link over an electronic network between the provider computer system and a user computer system for communications about custom terms of a future bank transactions;

processor means in the provider computer system for creating custom terms of a future bank transaction;

a bank; and

a third communication link over an electronic network between the provider computer system and the bank for communications about bank transactions.