U.S. patent application number 11/393557 was filed with the patent office on 2006-08-03 for system and method for managing and processing stored-value cards and bill payment therefrom.
This patent application is currently assigned to Payment Data System, Inc.. Invention is credited to Louis A. Hoch.
Application Number | 20060169766 11/393557 |
Document ID | / |
Family ID | 34864115 |
Filed Date | 2006-08-03 |
United States Patent
Application |
20060169766 |
Kind Code |
A1 |
Hoch; Louis A. |
August 3, 2006 |
System and method for managing and processing stored-value cards
and bill payment therefrom
Abstract
A system and method for managing and processing stored-value
debit, check card, signature debit, PIN based card or automatic
teller machine (ATM) cards and bill payment from a variety of
access points. Enrollment occurs between a card issuer and a card
holder resulting in issuance of the card. When using the card, the
cardholder will input the card into an input device. Cardholder
information is routed to an initial network and then to the
ATM/debit network. The information is then sent to the issuer. The
issuer verifies the transaction to the input device and prompts the
cardholder with options. For bill payment, the cardholder is
provided a list of billers. The cardholder selects the appropriate
biller and inputs all necessary information. A transaction is
created to debit the cardholder's electronic account and credit the
biller's account. This information is then routed to biller and
confirmation is provided by the input device.
Inventors: |
Hoch; Louis A.; (San
Antonio, CA) |
Correspondence
Address: |
Michelle L. Evans;Gunn & Lee, P.C.
Suite 1500
700 N. St. Mary's Street
San Antonio
CA
78205
US
|
Assignee: |
Payment Data System, Inc.
|
Family ID: |
34864115 |
Appl. No.: |
11/393557 |
Filed: |
March 30, 2006 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
11065389 |
Feb 24, 2005 |
7021530 |
|
|
11393557 |
Mar 30, 2006 |
|
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|
60547696 |
Feb 25, 2004 |
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Current U.S.
Class: |
235/379 ;
235/380; 705/44 |
Current CPC
Class: |
G06Q 20/04 20130101;
G06Q 20/40 20130101; G06Q 20/102 20130101 |
Class at
Publication: |
235/379 ;
235/380; 705/044 |
International
Class: |
G07F 19/00 20060101
G07F019/00; G06K 5/00 20060101 G06K005/00; G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment comprising the steps of: establishing
a fund source through a card issuer; issuing a card with
identifying information to a cardholder; inputting said identifying
information from said card into an input device; transmitting said
information to said card issuer for verification; providing a bill
payment option regarding said fund source; selecting said bill
payment option; inputting data consistent with said selected bill
payment option; transmitting said data to said card issuer;
processing said data consistent with said selected bill payment
option; providing an output to a biller consistent with said
processed data.
2. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 1 further comprising the step
of providing an out put to said card holder consistent with said
processed data.
3. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 2 wherein said transmitting
steps occur by way of a standard telephone or internet network.
4. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 3 wherein said transmitting
steps occur by way of an ATM/debit network.
5. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 4 further comprising routing
said output to said biller by way of an electronic bill pay
network.
6. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 4 further comprising the step
of routing said output to said biller by way of a private bill pay
network.
7. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 5 wherein said input device
is a swipe device.
8. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 5 wherein said input device
is a non-swipe device.
9. The method for managing and processing stored-value debit, check
card, signature debit, PIN based card or automatic teller machine
(ATM) cards for bill payment of claim 5 wherein said input device
is a personal computer.
10. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 5 wherein said input
device is a kiosk.
11. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 5 wherein said input
device is a wireless device.
12. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 5 wherein said input
device is a telephone line based device.
13. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 5 wherein said input
device is an automatic teller machine.
14. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 6 wherein said input
device is a swipe device.
15. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 6 wherein said input
device is a non-swipe device.
16. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 6 wherein said input
device is a personal computer.
17. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 6 wherein said input
device is a kiosk.
18. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 6 wherein said input
device is a wireless device.
19. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 6 wherein said input
device is a telephone line based device.
20. The method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards for bill payment of claim 6 wherein said input
device is an automatic teller machine.
Description
[0001] This application claims priority of U.S. Provisional
Application Serial No. 60/547,696 filed Feb. 25, 2004 and U.S.
Utility Patent Application Ser. No. 11/065,389 filed Feb. 24,
2005.
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] The present invention relates to a system and method for
managing and processing stored-value debit, check card, signature
debit, PIN based card or automatic teller machine (ATM) cards and
bill payment from a variety of access points using this system and
method. This invention is targeted to both the banked and un-banked
community of consumers.
[0004] 2. Background Information
[0005] There are approximately forty million un-banked consumers in
the United States plus millions more banked consumers. These
un-banked and similarly many banked consumers are individuals that
have chosen not to use the traditional bank facilities, such as
checking and savings accounts, for a variety of personal reasons
ranging from legal documentation requirements to credit problems to
aversion of paying fees for these services. Generally when one of
these consumers receives his or her salary, he or she typically
proceeds to a check cashing retail outlet to cash the check. In
such a situation, the consumer pays a check cashing fee and
receives the balance in cash. From this cash, all disbursements for
living expenses and bills are made.
[0006] By choosing not to use banking services, the un-banked
consumer limits his or her options for bill payment. Many un-banked
consumers desire a method whereby they can exercise their right to
not use a traditional banking facility, but maintain the
convenience of such a service. There is a current need for
technology to eliminate the lost time and inconvenience to these
consumers. The present invention solves this problem. The present
invention relates to a system and method for managing and
processing stored-value debit, check card, signature debit, PIN
based card or ATM cards and bill payment using this system and
method along with these cards from a variety of access points, such
as an Interactive Voice Response (IVR) system, counter payment at a
retail location by a terminal or Internet, a kiosk, or ATM.
[0007] Stored-value cards are known in the art and can be issued
without the formal opening of a bank account. The card can be a
debit card that is usable at ATMs as well as retail point of sale
purchases using a personal identification number (PIN) or
signature. The card can also be an ATM card that is usable to
withdraw cash from automatic teller machines worldwide.
SUMMARY OF THE INVENTION
[0008] It is a primary object of the present invention to provide a
system and method for managing and processing stored-value debit,
check card, signature debit, PIN based card or automatic teller
machine (ATM) cards and bill payment from a variety of access
points using the present system and method. Initially, an
enrollment process occurs between a card issuer and a card holder
either directly or indirectly, by way of a merchant or employer.
The enrollment process may include the card holder providing bill
payment account detail information for each biller the consumer
wishes to forward bill payments to. At the end of the enrollment
process, a stored-value card is issued to the cardholder. The
stored-value card may have identifying information thereon,
including, but not limited to, an identification number. In
addition, the stored-value card may have a magnetic strip thereon
encoded with identifying information. The name of the card issuer
may also be indicated on the card.
[0009] When using the card, the cardholder will input information
by way of the stored-value card into an input device. The
cardholder information is then routed to a standard telephone
network or to the internet. Once connected to the standard
telephone network or internet, the cardholder information is routed
to the ATM/debit network. The ATM/debit network then sends the
information to the issuer. The issuer verifies the transaction and
routes this information back to the input device. Once the
cardholder is verified, the cardholder is then provided a number of
options. These options include, but are not limited to, withdrawal,
transfer, payment of bills and the like.
[0010] If bill payment is chosen, the cardholder is presented with
a list of billers that he or she has identified during the initial
enrollment process. The cardholder selects the biller for the bill
he or she wishes to pay. The cardholder enters the amount due and
may or may not enter the payment date. A transaction is created to
deduct the amount due from the cardholder's electronic account and
creates a credit to the biller's account. This information is then
routed through to either a public bill pay network or a private
bill pay network. The bill pay network will then forward this
information to the indicated biller. Once the information is
transmitted to biller, the input device presents cardholder with a
confirmation once the transaction is complete. The process is
repeated until all bills are paid.
BRIEF DESCRIPTION OF THE DRAWINGS
[0011] FIG. 1a is a schematic diagram of the enrollment phase of
the present invention.
[0012] FIG. 1b is a schematic diagram of the enrollment phase of
the present invention between a card issuer and an employer or
merchant.
[0013] FIG. 2 is schematic diagram of the preferred embodiment of
the present invention.
[0014] FIG. 3 is a schematic diagram of the preferred embodiment of
the present invention utilizing a counter device with a swipe
terminal or a non-swipe terminal or a personal computer with
internet access as the card information input device.
[0015] FIG. 4 is a schematic diagram of the preferred embodiment of
the present invention utilizing an automatic teller machine as the
card information input device.
[0016] FIG. 5 is a schematic diagram of the preferred embodiment of
the present invention utilizing an interactive voice response
device as the input device.
[0017] FIG. 6 is a schematic diagram of the preferred embodiment of
the present invention utilizing a kiosk as the card information
input device.
[0018] FIG. 7 is a schematic diagram of the preferred embodiment of
the present invention utilizing an internet enabled wireless device
as the card information input device.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
[0019] FIG. 1 is a schematic diagram of the enrollment phase of the
present invention. The enrollment phase 100 involves the issuer 102
and the prospective card holder 104. During this enrollment phase
100, the issuer 102 provides enrollment forms to the prospective
card holder 104. At this time a list of eligible billers 106 (See
FIG. 2) that can be paid locally or nationally through the network
or by check is provided to the prospective card holder 104. In
addition, the issuer 102 provides security information, including
but not limited to, a security PIN code, to the prospective card
holder 104. The prospective card holder 104 selects the billers 106
(See FIG. 2) that he or she will pay electronically through the
present system. If the cardholder 104 has a biller 106 that is not
in the system, an option is given to add that biller 106. Once the
new biller 106 is added, a unique number is established for that
biller 106 and added to the biller database. At the end of the
enrollment phase 100, the prospective card holder 104 is issued an
activated stored-value card with bill payment capability.
[0020] Consumers can become cardholders 104 through a variety of
means. One means is through an employer program. In such a program,
an employer decides to deploy a payroll card program and
establishes an employee enrollment program. The issuer 102 through
prior agreement with an employer (See FIG. 1b) provides each
enrolling employee a stored-value card and establishes criteria for
security information, such as PINs, passwords, and other
identifying information. The employer may also present during
enrollment a list of billers 106 in their local area as well as
typically national billers 106. On a payday, a cardholder 104
receives from their employer the credit amount of their payroll
check in an electronic account. This credit amount adds to any
existing balance already in the account. The account is then
considered "funded". The cardholder 104 now has funds for which he
or she can use to pay bills or withdraw funds.
[0021] In a second scenario, a card issuer enters into an agreement
with a merchant (See FIG. 1b). The merchant offers for sale
cardholder packages which can be purchased by a consumer at a
retail location. The cardholder packages either (1) include
enrollment information that a consumer can send to issuers 102 in
return for a stored-value card or (2) instantly provide a
stored-value card to the consumer. The consumer may load the
stored-value card with a dollar value at a participating merchant
or by other means, such as by Automated Clearing House (ACH) or
wire transfer.
[0022] FIG. 2 is schematic diagram of the preferred embodiment of
the present invention. The cardholder 104 will utilize the present
invention by inputting information by way of a stored-value card
into an input device. The input device may be a counter device with
a swipe terminal or a non-swipe terminal or a personal computer
with internet access as the card information input device as
illustrated in FIG. 3. In addition, the input device may be an
automatic teller machine as indicated in FIG. 4. The input device
may also be an interactive voice response device as illustrated in
FIG. 5. Still, the input device may be a kiosk as shown in FIG. 6.
And further, the input device may be an internet enabled wireless
device as indicated in FIG. 7.
[0023] In FIG. 3 a schematic diagram of the preferred embodiment of
the present invention utilizing a counter device with a swipe
terminal or a non-swipe terminal or a personal computer with
internet access as the card information input device is shown. In
order to pay a bill at this stage, the cardholder 104 visits a
participating outlet (retail center, convenience store, and the
like) that has an ATM device capable of reading a stored-value
card, presenting billers to be paid, and processing the resulting
debits for the bills that are paid. To begin the transaction, the
cardholder 104 inserts the card into a counter device with a swipe
terminal at stage 112 (or a nonswipe terminal or personal computer
with internet access). The counter device at stage 112 may be
equipped with recognition software to recognize whether the card is
from the present merchant or issued by another merchant. Generally,
this recognition would be of the account number on the face of the
card. If the card is not from the present merchant, a fee may be
charged for access. The cardholder 104 is then prompted to enter a
security code and/or other identifier(s). The cardholder 104
information is then routed through stage 124 to a standard
telephone network 114 or through stage 126 to the internet 116.
Once connected to the standard telephone network 114 or internet
116, the cardholder 104 information is routed to the ATM/debit
network 118. The ATM/debit network 118 then sends the information
to issuer 102. The issuer 102 verifies the transaction and routes
this information back to stage 112. Once the cardholder 104 is
verified at stage 112, the cardholder 104 is then provided a number
of options. These options include, but are not limited to,
withdrawal, transfer, payment of bills and the like.
[0024] If bill payment is chosen, the cardholder 104 is presented
with a list of billers 106 that he or she has identified during the
initial enrollment process (See FIG. 1a). The cardholder 104
selects the biller 106 for the bill he or she wishes to pay. The
cardholder 104 enters the amount due and may or may not enter the
payment date. A transaction is created to deduct the amount due
from the cardholder's 104 electronic account and creates a credit
to the biller's 106 account. This information is then routed
through stage 132 to either an electronic bill pay network at 120
or a private bill pay network at 122. The bill pay network 120 or
122 will then forward this information to the indicated biller 106
at either stage 134 electronically or a paper check will be
generated at stage 136 and forwarded by mail. Once the information
is transmitted to biller 106, the counter device at stage 112
presents cardholder 104 with a confirmation receipt indicating that
the transaction is complete. The process is repeated until all
bills are paid.
[0025] FIG. 4 is a schematic diagram of the preferred embodiment of
the present invention utilizing an automatic teller machine as the
card information input device. The cardholder 104 visits an ATM
device at stage 138 capable of reading a stored-value card,
presenting billers to be paid, and processing the resulting debits
for the bills that are paid. To begin the transaction, the
cardholder 104 inserts the card into the ATM machine at stage 138.
The ATM at stage 138 may be equipped with recognition software to
recognize whether the card is from the present location or issued
by another location. Generally, this recognition would be of the
account number on the face of the card. If the card is not from the
present location, a fee may be charged for access. The cardholder
104 is then prompted to enter a security code and/or other
identifier(s). The cardholder 104 information is then routed
through stage 140 to the ATM/debit network 118. The ATM/debit
network 118 then sends the information to issuer 102. The issuer
102 verifies the transaction and routes this information back to
stage 138. Once the cardholder 104 is verified at stage 138, the
cardholder 104 is then provided a number of options. These options
include, but are not limited to, withdrawal, transfer, payment of
bills and the like.
[0026] If bill payment is chosen, the cardholder 104 is presented
with a list of billers 106 that he or she has identified during the
initial enrollment process (See FIG. 1a). The cardholder 104
selects the biller 106 for the bill he or she wishes to pay. The
cardholder 104 enters the amount due and may or may not enter the
payment date. A transaction is created to deduct the amount due
from the cardholder's 104 electronic account and creates a credit
to the biller's 106 account. This information is then routed
through stage 132 to either an electronic bill pay network at 120
or a private bill pay network at 122. The bill pay network 120 or
122 will then forward this information to the indicated biller 106
at either stage 134 electronically or a paper check will be
generated at stage 136 and forwarded by mail. Once the information
is transmitted to biller 106, the ATM at stage 138 will present
cardholder 104 with a confirmation receipt once the transaction is
complete. The process is repeated until all bills are paid.
[0027] In FIG. 5 a schematic diagram of the preferred embodiment of
the present invention utilizing an interactive voice response
device as the input device is shown. To begin the transaction, the
cardholder 104 dials a predetermined telephone number on a
telephone line based device at stage 142. The telephone call is
then routed through 144 to an interactive voice response (IVR)
device at stage 146. The cardholder 104 is then prompted to enter
the number of the card, a security code and/or other identifier(s)
on the telephone keypad. Once entered, the cardholder 104
information is then routed through stage 148 to an ATM/debit
network 118. The ATM/debit network 118 then sends the information
to issuer 102. The issuer 102 verifies the transaction and routes
this information back to stage 142. Once the cardholder 104 is
verified at stage 142, the cardholder 104 is then provided a number
of options. These options include, but are not limited to,
withdrawal, transfer, payment of bills and the like, such options
to be selected on the keypad of the telephone line based
device.
[0028] If bill payment is chosen, the cardholder 104 is presented
with a list of billers 106 that he or she has identified during the
initial enrollment process (See FIG. 1a). The cardholder 104
selects the biller 106 for the bill he or she wishes to pay. The
cardholder 104 enters the amount due and may or may not enter the
payment date. A transaction is created to deduct the amount due
from the cardholder's 104 electronic account and creates a credit
to the biller's 106 account. This information is then routed
through stage 132 to either an electronic bill pay network at 120
or a private bill pay network at 122. The bill pay network 120 or
122 will then forward this information to the indicated biller 106
at either stage 134 electronically or a paper check will be
generated at stage 136 and forwarded by mail. Once the information
is transmitted to biller 106, the telephone line based device at
142 returns to cardholder 104 a confirmation number once the
transaction is complete. The process is repeated until all bills
are paid.
[0029] FIG. 6 is a schematic diagram of the preferred embodiment of
the present invention utilizing a kiosk as the card information
input device. The cardholder 104 visits a location housing a kiosk
input device capable of reading a stored-value card, presenting
billers to be paid, and processing the resulting debits for the
bills that are paid. To begin the transaction, the cardholder 104
inserts the card into a kiosk at stage 150. The cardholder 104 is
then prompted to enter a security code and/or other identifier(s).
The cardholder 104 information is then routed through stage 152 to
the internet 116. Once connected to the internet 116, the
cardholder 104 information is routed to the ATM/debit network 118.
The ATM/debit network 118 then sends the information to issuer 102.
The issuer 102 verifies the transaction and routes this information
back to stage 150. Once the cardholder 104 is verified at stage
150, the cardholder 104 is then provided a number of options. These
options include, but are not limited to, transfer, payment of bills
and the like, such options selected at the kiosk.
[0030] If bill payment is chosen, the cardholder 104 is presented
with a list of billers 106 that he or she has identified during the
initial enrollment process (See FIG. 1a). The cardholder 104
selects the biller 106 for the bill he or she wishes to pay. The
cardholder 104 enters the amount due and may or may not enter the
payment date. A transaction is created to deduct the amount due
from the cardholder's 104 electronic account and creates a credit
to the biller's 106 account. This information is then routed
through stage 132 to either an electronic bill pay network at 120
or a private bill pay network at 122. The bill pay network 120 or
122 will then forward this information to the indicated biller 106
at either stage 134 electronically or a paper check will be
generated at stage 136 and forwarded by mail. Once the information
is transmitted to biller 106, the kiosk at stage 150 presents
cardholder 104 with a confirmation receipt once the transaction is
complete. The process is repeated until all bills are paid.
[0031] In FIG. 7 a schematic diagram of the preferred embodiment of
the present invention utilizing an internet enabled wireless device
as the card information input device is shown. To begin the
transaction, the cardholder 104 inputs his or her card information
over a wireless device at stage 154 by way of the device keypad.
The cardholder 104 is then prompted to enter a security code and/or
other identifier(s). The cardholder 104 information is then routed
through stage 156 to the internet 116. Once connected to the
internet 116, the cardholder 104 information is routed via path 128
to the ATM/debit network 118. The ATM/debit network 118 then sends
the information to issuer 102. The issuer 102 verifies the
transaction and routes this information back to stage 154. Once the
cardholder 104 is verified at stage 154, the cardholder 104 is then
provided a number of options. These options include, but are not
limited to, withdrawal, transfer, payment of bills and the like,
such options to be selected on the keypad of the internet enabled
wireless device.
[0032] If bill payment is chosen, the cardholder 104 is presented
with a list of billers 106 that he or she has identified during the
initial enrollment process (See FIG. 1a). The cardholder 104
selects the biller 106 for the bill he or she wishes to pay. The
cardholder 104 enters the amount due and may or may not enter the
payment date. A transaction is created to deduct the amount due
from the cardholder's 104 electronic account and creates a credit
to the biller's 106 account. This information is then routed
through stage 132 to either an electronic bill pay network at 120
or a private bill pay network at 122. The bill pay network 120 or
122 will then forward this information to the indicated biller 106
at either stage 134 electronically or a paper check will be
generated at stage 136 and forwarded by mail. Once the information
is transmitted to biller 106, the counter device at stage 154
presents cardholder 104 with a confirmation number once the
transaction is complete. The process is repeated until all bills
are paid.
[0033] Although the invention has been described with reference to
specific embodiments, this description is not meant to be construed
in a limited sense. Various modifications of the disclosed
embodiments, as well as alternative embodiments of the inventions
will become apparent to persons skilled in the art upon the
reference to the description of the invention. It is, therefore,
contemplated that the appended claims will cover such modifications
that fall within the scope of the invention.
* * * * *