WO2001091070A2

WO2001091070A2 - Printed pre-paid card system and method

Info

Publication number: WO2001091070A2
Application number: PCT/US2001/014787
Authority: WO
Inventors: John Marshall; Luis Arias
Original assignee: Hypercom Corporation; Blackstone, Inc.
Priority date: 2000-05-24
Filing date: 2001-05-08
Publication date: 2001-11-29
Also published as: WO2001091070A3; MXPA02000841A; CA2380248A1; CA2380248C; AU6126501A

Abstract

A system for generating cards having purchasing limit amounts comprises a host computer configured to generate card numbers and having a database for storing the card numbers, a plurality of card forms, and a first remote terminal configured to receive a request to purchase a card and to transmit information to and receive information from the host computer. The first remote terminal comprises a first printer for generating from the card forms cards having purchase limit amounts, wherein the first printer prints the card numbers on the card forms.

Description

PRINTED PRE-PALD CARD SYSTEM AND METHOD

TECHNICAL FIELD

The present invention relates generally to a pre-paid card system and method and, more particularly, to a pre-paid card system and method comprising pre-paid cards that are generated and activated at a remote terminal.

BACKGROUND OF THE INVENTION Pre-paid stored value cards and telephone calling cards are well known in the art. By utilizing such cards, an individual may purchase goods or services, such as long distance telephone services, without using cash or currency. The cards are usually the size of standard credit cards and can be easily carried in a user's wallet. Such cards appeal to a variety of users, including those that have no local bank affiliations, such as tourists, and those that have no bank affiliations at all. In prior art distribution systems for these cards, a predetermined number of cards are created, generally from plastic. A host computer has stored within a database a number of predefined account numbers. A card number is embossed or printed on each card or stored in a magnetic stripe or computer chip on the card. The card number may be the account number associated with the card or may be another identification number which corresponds to an account number. The cards are shipped to retailers, ATM machines, vending machines or the like which are in communication with the host computer via a telephone or computer network. The cards are shipped unactivated to reduce the risk of fraud should the cards become lost or stolen during shipping.

When a customer purchases a card from a retailer, the sales agent or the customer uses local software, for example at a point-of-sale ("POS") terminal, to remotely transmit the card number of a card to the host computer. If the card does not have a predenominated dollar amount associated with it, the amount to be loaded onto the card is transmitted with the card number. The host computer interrogates the database to determine if the card number corresponds to an account number stored in the database and to determine if the card has been reported lost or stolen. If the card has not been reported lost or stolen and the account is otherwise available for use, the host computer transmits back to the POS terminal a message authorizing activation of the card. The database then stores in a record associated with the account number the currency balance available for use by the cardholder. Once activated, the holder can use the card to purchase goods or services at remote terminals. The card number is inputted by the cardholder or retail sales agent into a POS terminal, telephone keypad, or the like. The card number and, in some circumstances, the desired amount of purchase are then transmitted to the host computer. The account record corresponding to the card is located in the host database. If the currency balance corresponding to the card is less than the desired amount of purchase, a message denying the transaction is transmitted back to the POS terminal. If the currency balance amount is greater than the desired amount of purchase, a message is transmitted back to the POS terminal authorizing the transaction. The amount ofthe transaction is then deducted from the currency balance amount and the resulting new balance is stored as the new currency balance amount of the host computer.

For alternative systems and methods relating to pre-paid card systems, see U.S. Reissue Patent No. 36,365, to Levine et al., "Method and Apparatus for Distributing Currency;" U.S. Patent No. 5,903,830 to Joao et al., "Transaction Security Apparatus and Method;" and U.S. Patent No. 5,577,109 to Stimson et al., "Pre-Paid Card System and Method," all incorporated herein by reference.

Unfortunately, along with conveniences, presently known prepaid cards provide a number of disadvantages. Because the cards must be of a size convenient enough for a user to carry in a wallet or pocket, the cards are relatively small. Consequently, they do not provide much space for other information such as use restrictions, branding information and other marketing and promotional information.

In addition, because the cards are shipped to a distribution point with a card number already printed or embossed on the card, the opportunity for fraud is great. A thief may be able to copy card numbers from the cards during shipping or storage by a retailer and use the card numbers once the cards have been activated.

Moreover, the unused plastic cards must be stored by retailers until distributed to customers. The cards therefore consume valuable retail space and must be stored by the retailer in a secure location to prevent theft. Further, when eventually disposed of, the non- biodegradable cards take up valuable landfill space. There is thus a need for an improved stored value and calling card system that overcomes these and other problems associated with the prior art. SUMMARY OF INVENTION The present invention relates to a pre-paid card system and method comprising pre-paid cards that are generated and activated at a remote terminal. In accordance with a preferred embodiment ofthe present invention, a remote terminal (e.g. a POS terminal) is connected via a communications link to a host computer having a database. The remote terminal comprises a first printer for printing transaction receipts and a second printer for printing pre-paid cards. The pre-paid cards may be either predenominated or non-predenominated. In the illustrated embodiment, card stock may be employed which resembles a credit card, either because the card stock resembles a credit card in size and shape, or because the card stock is designed to be folded into the size and shape of a credit card.

Alternatively, the system of the present invention may be configured to print prepaid cards onto the same paper used to print POS receipts in the ordinary coarse. In this embodiment, receipt paper may be employed which is generally the same size as a credit card, or may be of any desired shape, size, and flexibility. To purchase a pre-paid card, a customer or sales agent inputs a request to purchase a pre-paid card at the remote terminal. If the card is not predenominated, a desired initial purchasing limit is also supplied. The request and the desired purchasing amount are then transmitted over a communications network to the host computer which generates a card number, and associates the card number with the desired purchasing limit amount. The card number and associated desired purchasing limit are then stored in the database.

The card number is then transmitted to the remote terminal where the card number is printed on a card form in the second printer. The customer pays for the resulting pre-paid card by providing cash or another currency alternative in an amount to cover the purchasing limit amount and any transactional costs. A customer may then use the pre-paid card to purchase goods or services using the aforementioned POS terminal, a telephone keypad, or any other POS terminal or device configured to access the host computer. For example, the customer or a sales agent may input the card number along with a request for a purchase transaction into any device capable of interfacing with the host computer. The card number and purchase transaction amount are then transmitted to the host computer. The host computer locates in the database the account number corresponding to the card number and the purchasing limit amount associated with the account. If the purchase transaction amount is less than or equal to the purchasing limit amount, the host computer may transmit a message to the POS terminal (or other device) at which the card is being used to authorize the transaction. The host computer then deducts the purchase transaction amount from the purchasing limit amount and stores the resultant in the database as the new purchasing limit amount. If the purchase transaction amount is greater than the purchasing limit amount, the host computer may transmit a message denying the transaction. Alternatively, the host computer may transmit a message to the cardholder or sales agent, for example via the POS terminal or other device with which the card is being used, indicating the difference between the purchase transaction amount and the purchasing limit amount, thereby providing the customer an opportunity to make up. the difference with cash or another currency alternative, such as a credit card.

In accordance with a further aspect ofthe invention, the card forms comprise card stock or other flexible material upon which a card number can be printed. The card forms may be pre-printed with information relating to the card issuer, use restrictions, or marketing and promotional information. Alternatively, the card forms may be blank and such information may be printed on the card forms at purchase.

In accordance with one aspect of the present invention, a merchant or other vendor of goods or services may utilize the prepaid card system of the present invention with very low incremental costs. For example, if the merchant already has access to a POS terminal configured for communication with a host computer, the merchant need only to acquire access to card stock and a printer for printing onto the card stock. In the preferred embodiment, the merchant may use a first printer for printing POS receipts in the ordinary course, and a second printer for printing the prepaid cards of the present invention. Both printers may be linked to the same POS terminal or to different POS terminals.

In an alternative embodiment, a retailer with an infrequent need to print prepaid cards may utilize a single printer for printing POS receipts and prepaid cards.

These and other aspects, features and advantages of the present invention will be better understood by studying the detailed description in conjunction with drawings and the accompanying claims.

BRIEF DESCRIPTION OF THE DRAWINGS

A detailed description of embodiments of the invention will be made with reference to the accompanying drawings, wherein like numerals designate corresponding parts in the several figures, and wherein:

Fig. 1 is a diagram illustrating the pre-paid card system according to the present invention;

Fig. 2 is a diagram of a card form ofthe present invention; and Fig. 3 is a diagram of a pre-paid card ofthe present invention.

DETAILED DESCRIPTION

The following description is of exemplary embodiments only, and is not intended to limit the scope, applicability or configuration of the invention in any way. Rather, the following description provides a convenient illustration for implementing a preferred embodiment of the invention. Various changes to the described embodiments may be made in the function and arrangement ofthe elements described without departing from the scope ofthe invention as set forth in the appended claims. Figure 1 is a diagram illustrating the generation and activation of the pre-paid cards of the present invention. A POS terminal 10 is connected via a communications link 20 to a host computer 30 which comprises a database 40. The POS terminal 10 may be a standard POS terminal located at a retail establishment or merchant such as a Model No. T7E available from Hypercom, Inc. of Phoenix, Arizona. Alternatively, terminal 10 may be an ATM machine or a vending machine. In the context of the present invention, a standard "POS terminal" refers to an electronic module having a keypad (typically alphanumeric), and an interface for a credit card, debit card, charge card, or the like. POS terminals may comprise stand alone, table top modules or may be integrated into a larger piece of equipment (e.g. an ATM machine, gas pump, or the like). Many existing POS terminals include a track for swiping (e.g. sliding) a credit card along a magnetic stripe reader; other POS terminals include a smart card reader, either in lieu of or in addition to a magnetic stripe reader. POS terminals also typically include a speed dialing feature for dialing a particular host computer when a credit or other card is read by the terminal. In addition, a POS terminal typically includes a printer which is either linked to or integrated with the terminal. POS terminals may also include a screen display for displaying messages, such as "dialing," "authorized," or "approved."

POS terminal 10 comprises or is otherwise connected to a first printer 60, for example a printer Model No. P8 available from Hypercom, Inc. of Phoenix, Arizona. Alternatively, an integrated POS/printer terminal may be employed, such as the POS Model No. T7P or ICE 5500, also available from Hypercom, Inc. In any case, the printer used to print pre-paid cards in accordance with the present invention may be dedicated to printing prepaid cards, or it may be configured to print both prepaid cards and POS receipts. First printer 60 is suitably configured to print the pre-paid cards ofthe present invention. First printer 60 comprises storage cavity 70 for storing card forms 100 from which the pre-paid cards of the present invention may be generated. Alternatively, first printer 60 may print cards one at a time as such cards are fed into first printer 60 by the operator. POS terminal 10 may also comprise a second printer 50 which is configured to print standard receipts for purchase transactions.

Figure 2 is a diagram of a card form 100. In the illustrated embodiment, card form 100 is the same height H of a standard credit card. Length L of card form 100 is twice the length of a standard credit card. Card form 100 is configured with a seam 110, for example a prefolded, creased, or perforated seam, located in the middle of card form 100 to facilitate folding of card form 100. When folded along the perforated seam 110, card form 100 is the same size as a standard credit card and can be easily stored in a wallet.

When folded along perforated seam 110, card form 100 has four faces upon which information can be printed. Prior to shipment to a retailer for distribution, card form 100 may be printed with marketing and/or promotional information, use restriction information, instructions for using the card, or other general information relating to the card issuer, such as name and address. Alternatively, card forms 100 can be left blank.

When a pre-paid card according to the present invention is purchased, a customer or sales agent can access POS terminal 10 and indicate at POS terminal 10 that a pre-paid card is desired. POS terminal 10 transmits the request via communications link 20 to host computer 30. If the card is not pre-denominated, the desired value amount of the card may be inputted and transmitted to host computer 30 with the purchase request. Host computer 30 generates a card number which is recorded in database 40 along with the value of the pre-paid card. Host computer 30 then transmits back to POS terminal 10 the card number and the authorized initial value amount ofthe card.

Upon receipt of the card number and value amount of the pre-paid card, POS terminal 10 prints the card number and initial value amount of the card onto card form 100. POS terminal 10 may also print additional information on card form 100. For example, if any face of card form 100 is blank, POS terminal 10 may print branding or cobranding information, card issuer information, use restrictions and marketing and promotional information on that face. The customer may then pay the sales agent an amount to cover the value of the pre-paid card along with any transaction fees. The customer may then use the card to purchase goods or services. Figure 3 is a diagram of the front A and back B of a pre-paid card 150 according to the present invention. The card number 160 and initial value amount 170 of the pre-paid card may be printed on one face of front A of pre-paid card 150, along with card issuer information 180, such as name and address. Use restrictions 190 and instructions for lost or stolen cards 200 may be printed on the other face of front A of pre-paid card 150. The faces of back B of pre- paid card 150 may be printed with branding information, marketing and promotional information or any other information desired by the card issuer. Variable services may support categories of stored value cards or phone cards, such as a "Pepe" phonecard for calls to Mexico, a "Pierre" phonecard for calls to France, and a "Diana" phonecard for calls to the United Kingdom. As each of these cards may use different carriers or issuers to provide the services, each card may carry different terms and conditions.

When a customer desires to purchase goods or services, the customer or sales agent inputs card number 160 into a POS terminal along with the amount of the desired purchase. Card number 160 and the requested amount of purchase are then transmitted via communications link 20 to host computer 30. Host computer interrogates database 40 to determine if card number 160 is stored therein and to determine if the card associated with card number 160 has been reported as lost or stolen. If host computer 30 determines that card number 160 is stored in database 40 and is appropriate for use by the customer, host computer 30 then interrogates the database to determine if the value amount associated with the card number is greater than or equal to the desired purchase amount. If the value amount is less than the desired purchase amount, host computer 30 transmits a message via communications link 20 to POS terminal 10 denying the purchase request. Alternatively, host computer 30 may transmit a message to POS terminal 10 indicating the difference between the desired purchase amount and the value amount to permit the customer to pay for the difference with cash or another currency alternative, such as a credit card.

If the value amount associated with the card number is greater than or equal to the desired purchase amount, the host computer deducts the purchase amount from the value amount and stores the new value amount of the card in the database. Host computer 30 then transmits to POS terminal a message authorizing the purchase. Thus, a pre-paid card system according to various aspects of the present invention tends to provide a convenient method for the purchase of goods and services, in addition to a convenient method for distributing marketing and promotional information. The pre-paid card system includes numerous other features and advantages that are not specifically identified herein. While the present invention has been described with reference to specific preferred embodiments thereof, it will be understood by those skilled in the art that various changes may be made without departing from the true spirit and scope of the invention. In addition, modifications may be made to adapt the invention to a given situation without departing from the essential teaching.

Claims

1. A system for generating cards having purchasing limit amounts comprising: a host computer configured to generate card numbers and comprising a database for storing said card numbers; a plurality of card forms; and a first remote terminal configured to receive a request to purchase a card and to transmit information to and receive information from said host computer and having: a first printer for generating from said card forms cards having purchase limit amounts, wherein said first printer prints said card numbers on said card forms.

2. The system of claim 1 wherein said card forms comprise card stock.

3. The system of claim 1 wherein said first remote terminal is configured to receive from said host computer a card number during any initial transaction.

4. The system of claim 3 wherein said host computer is configured to receive an initial purchase limit amount from said first remote terminal and to associate said initial purchase limit amount with said card number.

5. The system of claim 1 further comprising a second remote terminal configured to receive said card number, to transmit said card number to said host computer and to receive a message from said host computer authorizing or denying a purchase transaction.

6. The system of claim 1 wherein said card forms are pre-printed with marketing information.

7. The system of claim 2 wherein said card forms are perforated to permit folding of said card forms.

8. The system of claim 1 wherein said card number comprises an account number.

9. The system of claim 1 wherein said first remote terminal further comprises a second printer for generating transaction receipts.

10. A method for generating pre-paid cards having purchasing limit amounts, said method comprising: generating a plurality of card forms; receiving at a first remote termmal a request for a pre-paid card; generating a card number; associating said card number with a purchasing limit amount and storing said card number and said purchasing hmit amount in a database; generating at said first remote terminal a pre-paid card by printing said card number on one of said plurality of card forms; receiving from a second remote terminal a request for a purchase transaction, a card number, and purchase transaction amount; comparing said purchase transaction amount to said purchasing limit amount in said database; and transmitting to said second remote terminal a message authorizing said request for a purchase transaction if said purchase transaction amount is not greater than said purchasing limit amount.

11. The method of claim 10 further comprising the step of: transmitting to said second remote terminal a message denying said request for a purchase transaction if said purchase transaction amount is greater than said purchasing hmit amount.

12. The method of claim 10 further comprising the step of: transmitting to said second remote terminal a message indicating the difference between the purchase transaction amount and said purchasing hmit amount if said transaction amount is greater than said purchasing limit amount.

13. The method of claim 10 further comprising the step of: pre-printing said card forms with marketing information.

14. The method of claim 10 further comprising the step of: printing said card forms with marketing information at a time prior to said step of receiving at a first remote terminal a request for a pre-paid card.