Note: Descriptions are shown in the official language in which they were submitted.
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PRINTED PRE-PAID 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 1NVENTION
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
cumber 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.
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Once activated, the holder ca.n 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 of the 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 ."
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.
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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. Tn accordance
with a preferred
embodiment of the 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
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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 of the 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.
BRTEF 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 of the present invention; and
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Fig. 3 is a diagram of a pre-paid card of the 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 of the elements described without departing from
the scope of the
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 of the 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
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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 Ieft blank.
When a pre-paid card according to the present invention is purchased, a
customer or
IS 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 of the 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 Iost 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-
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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.
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