U.S. patent application number 13/012499 was filed with the patent office on 2011-05-26 for system and method for facilitating a subsidiary card account.
This patent application is currently assigned to American Express Travel Related Services Company. Invention is credited to Marc Benkert, Chris Hobbs, Kazuhiko Okamoto, Grace Park, Tomer Rubinshtein.
Application Number | 20110125645 13/012499 |
Document ID | / |
Family ID | 33539417 |
Filed Date | 2011-05-26 |
United States Patent
Application |
20110125645 |
Kind Code |
A1 |
Benkert; Marc ; et
al. |
May 26, 2011 |
SYSTEM AND METHOD FOR FACILITATING A SUBSIDIARY CARD ACCOUNT
Abstract
The present invention provides a system and method for providing
a flexible limit subsidiary account that may be issued by a Foreign
Financial Institution. In particular, the present provides a system
and method for allowing a parent to provide funds to a subsidiary
and to control the spending of subsidiary or spending capacity. The
card account may be issued at the request of the parent who may
retain the ability to define, modify, and/or terminate the spending
and/or debt accumulation limits for the subsidiary card account as
well as other features as described in the attached disclosure. The
system may be configured to provide the ability for parent to
eliminate risks associated with fluctuations in currency exchange
rates by committing to fixed automatic long-term charges at a fixed
foreign exchange rate for a fixed term.
Inventors: |
Benkert; Marc; (Phoenix,
AZ) ; Hobbs; Chris; (Singapore, SG) ; Okamoto;
Kazuhiko; (Tokyo, JP) ; Park; Grace; (Great
Falls, VA) ; Rubinshtein; Tomer; (Tel Aviv,
IL) |
Assignee: |
American Express Travel Related
Services Company,
New York
NY
|
Family ID: |
33539417 |
Appl. No.: |
13/012499 |
Filed: |
January 24, 2011 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10600483 |
Jun 19, 2003 |
7899742 |
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13012499 |
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10155332 |
May 23, 2002 |
7401049 |
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10600483 |
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10128949 |
Apr 23, 2002 |
6796497 |
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10600483 |
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60294107 |
May 29, 2001 |
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Current U.S.
Class: |
705/44 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 20/108 20130101; G06Q 20/40 20130101; G06Q 20/04 20130101;
G06Q 40/00 20130101; G06Q 20/105 20130101 |
Class at
Publication: |
705/44 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A method comprising: allocating, by a computer based system for
administering a subsidiary account, a first credit line to the
subsidiary account, wherein the first credit line is at least a
portion of an available credit line of a parent account, and
wherein the first credit line is provided by a first account
issuer; authorizing, by the computer based system, a second credit
line associated with the subsidiary account and provided by a
second account issuer, wherein the second account issuer is
situated in a second country that is different from a first country
associated with the first account issuer; defining, by the computer
based system, a subsidiary account spending capacity based on the
first credit line, and the second credit line; and authorizing, by
the computer based system, a purchase with a subsidiary account,
wherein purchases using the subsidiary account are limited by the
subsidiary account spending capacity.
2. The method of claim 1, wherein the parent account is established
by the first account issuer and the subsidiary account is at least
partially maintained by the second account issuer.
3. The method of claim 1, further comprising determining, by the
computer based system, an exchange rate corresponding to a currency
of the first country and a currency of the second country distinct
from the first country.
4. The method of claim 1, further comprising determining, by the
computer based system, an effective time period associated with an
exchange rate.
5. The method of claim 1, further comprising determining, by the
computer based system, an effective time period associated with an
exchange rate, wherein, during the effective time period, purchases
made using the subsidiary account in the currency of the second
country are converted into the currency of the first country
according to the exchange rate.
6. The method of claim 1, further comprising accommodating, by the
computer based system, an emergency transaction in accordance with
predefined criteria by allowing the subsidiary account to exceed
the subsidiary account's defined spending capacity.
7. The method of claim 1, further comprising modifying, by the
computer based system, the subsidiary account spending capacity in
response to a request from a system associated with the parent
account.
8. The method of claim 1, further comprising modifying, by the
computer based system, the available credit line of the parent
account based on a modification of the subsidiary account spending
capacity.
9. The method of claim 1, further comprising tracking, by the
computer based system, spending incurred using the subsidiary
account.
10. The method of claim 1, further comprising limiting, by the
computer based system, total spending incurred using the subsidiary
account.
11. The method of claim 1, further comprising limiting, by the
computer based system, spending incurred using the subsidiary
account for at least one of a specific class of goods or services,
a specific class of merchants, or a specific merchant.
12. The method of claim 1, further comprising enforcing, by the
computer based system, specific restrictions against the subsidiary
account, wherein the specific restrictions condition uses of the
parent account.
13. The method of claim 1, further comprising generating, by the
computer based system, a statement for the subsidiary account.
14. The method of claim 1, further comprising generating, by the
computer based system, a statement for the parent account.
15. The method of claim 1, further comprising terminating, by the
computer based system, the subsidiary account in response to a
request from a system associated with the parent account.
16. The method of claim 1, wherein the subsidiary account is
configured to carry-over spending capacity from one cycle to the
next.
17. The method of claim 1, wherein the subsidiary account is
configured to prevent carry-over of spending capacity from one
cycle to the next.
18. The method of claim 1, further comprising reducing, by the
computer based system, the available credit line of the parent
account by a first amount for the purchase.
19. A tangible non-transitory computer-readable storage medium
having computer-executable instructions stored thereon that, if
executed by a computer based system for administering a subsidiary
account, cause the computer based system to perform operations
comprising: allocating, by the computer based system, a first
credit line to the subsidiary account, wherein the first credit
line is at least a portion of an available credit line of a parent
account, and wherein the first credit line is provided by a first
account issuer; authorizing, by the computer based system, a second
credit line associated with the subsidiary account and provided by
a second account issuer, wherein the second account issuer is
situated in a second country that is different from a first country
associated with the first account issuer; defining, by the computer
based system, a subsidiary account spending capacity based on the
first credit line, and the second credit line; and authorizing, by
the computer based system, a purchase with a subsidiary account,
wherein purchases using the subsidiary account are limited by the
subsidiary account spending capacity.
20. A system comprising: a tangible, non-transitory memory
communicating with a processor for administering a subsidiary
account, the tangible, non-transitory memory having instructions
stored thereon that, in response to execution by the processor,
cause the processor to perform operations comprising: allocating,
by the processor, wherein the first credit line is at least a
portion of an available credit line of a parent account, and
wherein the first credit line is provided by a first account
issuer; authorizing, by the processor, a second credit line
associated with the subsidiary account and provided by a second
account issuer, wherein the second account issuer is situated in a
second country that is different from a first country associated
with the first account issuer; defining, by the processor, a
subsidiary account spending capacity based on the first credit
line, and the second credit line; and authorizing, by the
processor, a purchase with a subsidiary account, wherein purchases
using the subsidiary account are limited by the subsidiary account
spending capacity.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This patent application is a continuation of, claiming
priority to and the benefit of, U.S. Ser. No. 10/600,483 filed Jun.
19, 2003 and entitled "SYSTEM AND METHOD FOR FACILITATING A
SUBSIDIARY CARD ACCOUNT." The '483 patent application is a
continuation-in-part of U.S. Pat. No. 7,401,049 issued on Jul. 15,
2008 (aka U.S. Ser. No. 10/155,332 filed May, 23, 2002 and entitled
"SYSTEM AND METHOD FOR A PREPAID CARD ISSUED BY A FOREIGN FINANCIAL
INSTITUTION"), which claims priority to, and the benefit of, the
U.S. provisional patent application Ser. No. 60/294,107 filed on
May 29, 2001. The '483 patent application is also a
continuation-in-part of U.S. Pat. No. 6,796,497 issued on Sep. 28,
2004 (aka U.S. Ser. No. 10/128,949, filed Apr. 23, 2002 and
entitled "SYSTEM AND METHOD FOR FACILITATING A SUBSIDIARY CARD
ACCOUNT"). All of which are hereby incorporated by reference.
FIELD OF INVENTION
[0002] The present invention relates generally to systems for
facilitating transactions, and more specifically to systems for
facilitating financial services at the request of a first party for
the use of a second party such that the first party may define,
modify, and/or terminate the spending capacity accorded the second
party.
BACKGROUND OF INVENTION
[0003] Many financial institutions are providing plastic
stored-value cards (e.g. debit cards, telephone calling cards,
loyalty cards, etc.) that can be used in lieu of cash. To enable a
stored value card to supply spending capacity, a user transfers an
amount of value to the issuing institution, which stores or credits
a corresponding amount of value to the user's account, allowing the
value to be spent by the card user, thereby providing spending
capacity to the card user. The value may be transferred to the
issuing institution in a variety of ways such as on-line transfers
from bank accounts or credit cards. The stored value cards then can
be used to pay for items in stores or on-line, and to withdraw cash
at automated teller machines (ATMs). The stored value cards appear
to function like credit cards, but they often extend little or no
credit to the user, so the cards do not substantially enable users
to finance their transactions.
[0004] Some people or entities may be unable, or may not desire, to
acquire traditional credit cards (e.g., teenagers, college
students, employees, financially insecure or dependent consumers,
or others lacking sufficient credit history, permanent income, or
age). These parties, however, often desire the alternative of
stored value cards for the convenience and prestige they provide.
Those who are responsible for such consumers (e.g., parents,
guardians, employers, and the like) often desire stored value cards
because they provide a convenient mechanism for disbursing
financial support to their employees and/or dependents. For
example, stored value cards often enable parents to add value to
the cards on-line, remote from a dependant who may be away at
college, traveling abroad, or residing with a different guardian.
Similarly, companies may desire to use stored value cards to enable
employees to make expenditures for travel, supplies, or other
business related expenses or may even use such financial vehicles
for payment of wages, salary, or bonuses. To many parents, stored
value cards also provide a useful teaching aid through which
dependants may practice skills such as budgeting, saving,
disciplined spending and/or management of credit.
[0005] In addition to controlling and/or monitoring the spending
habits of subsidiaries (i.e., students, dependents, employees),
parents often desire to provide security for their children to
prepare for contingencies that may arise such as a need for
emergency medical care. At the same time, however, those parents
may not wish that their children have general access to funds for
non-emergencies. Unfortunately, however, many existing credit cards
do not provide a convenient mechanism for permitting a user access
to a limited set of goods or services or providers of same while
limiting their access to other goods or services.
[0006] Stored value cards also provide parents the ability to track
and control the spending and/or accumulation of debt by their
dependants. For example, some stored value cards provide parents
with access to on-line databases that allow review of information
about how much and where their dependents spent the value stored on
their cards. Dependants also often appreciate the tracking
capability because it provides a convenient record not readily
available with purely cash transactions.
[0007] Some cards are available that enable parents to prevent the
cards from being used by the dependent to purchase goods and/or
services from specific merchants or classes of merchants (e.g.,
those who sell pornography, tobacco and alcohol, or other forbidden
goods or services). For example, American Express' Cobalt card
enables the blocking of purchases from on-line retailers that sell
pornography, tobacco and alcohol. Similarly, U.S. Pat. No.
6,173,269 discloses a method and apparatus for executing electronic
commercial transactions with minors where such transactions are
limited only to those vendors that have been approved by the
minor's parents. Moreover, M2Card highlights "questionable"
transactions on account summaries. Other stored value cards, such
as "Visa Buxx," provide convenience features such as the ability to
accept and accumulate gifts in the form of value to be spent at
particular merchants. For purchases above the amount of the gift,
additional value may be deducted from the stored value card. Other
examples of currently available stored value cards include
MasterCard Electronic Card (India, Malaysia), MasterCard Generation
X (Brazil), Visa (Brazil), Novacash (Argentina), and AAA Everyday
Funds. Unfortunately, stored value cards often require payment of
funds prior to or contemporaneously with addition of value to the
cards. Thus, once the funds have been credited to the dependant's
account, the cards provide parents with only limited control over
the spending capacity and debt accumulation by the dependant.
[0008] Other attempts to satisfy the above-described needs without
requiring prepayment and storage of value on the cards of the
dependants involve the issuance of subsidiary cards that are linked
to, and are able to access, the credit lines of the master
accounts. For example, U.S. Pat. No. 4,837,422 describes a
multi-user card system in which a card combination that is issued
to a single cardholder can be re-programmed by the cardholder for
use by a sub-user to a desired extent with regard to value and
time. Similarly, U.S. Pat. No. 5,864,830 discloses a data
processing method of configuring and monitoring a satellite
spending card linked to a host credit card such that a
predetermined available spending capacity of each satellite card is
selectively determined by the holder of the parent card. Moreover,
U.S. Pat. No. 5,294,472 describes a credit card spending
authorization control system in which allowing a parent to control
the use of an ancillary credit or debit card, which is issued to a
subsidiary. Further, U.S. Pat. No. 5,953,710 shows a subsidiary's
credit or debit card system that includes a subsidiary's credit
card account linked to a parent's credit or debit card account. The
systems disclosed in the foregoing patents have typically
experienced limited success because parents may not wish to provide
their dependents with access to the parents' credit line. Moreover,
a sufficient mechanism does not exist that would enable a parent to
provide credit to a subsidiary, such as a child, while retaining
the ability to control the spending capacity and debt accumulation
by the subsidiary.
[0009] While it may be advantageous to control and/or monitor the
spending capacity of a subsidiary party, it has also been
recognized that accepting responsibility for the spending of a
subsidiary can entail various disadvantages. For example, where a
subsidiary is traveling abroad (e.g., the subsidiary would like to
consume spending capacity in a country other than that where the
parent resides or other than where the parent card's institution is
located), fluctuations in currency exchange rates may cause
conventionally defined spending capacities to be inadequate to
satisfy the needs of the subsidiary. This may occur, for example,
where the spending capacity is defined in terms of U.S. dollars,
where the value of a U.S. dollar falls with respect to a Japanese
yen, and where the subsidiary resides in Japan. On the other hand,
a parent may similarly wish to avoid situations where a subsidiary
enjoys a windfall as a result of an advantageous shift in currency
exchange rates. To avoid such difficulties, the user may often
monitor the exchange rates to compensate for fluctuations.
Depending on whether the parent undertakes to perform such
monitoring, either the parent or a subsidiary usually assumes the
risks associated changes in currency exchange rates.
[0010] It also may be desirable to modify the spending capacity
associated with a subsidiary card to accommodate changing
conditions associated with specific events, economic conditions, or
simply the passage of time. For example, it may be desirable to
periodically modify spending capacity to accommodate the occurrence
of periodic expenses such as tuition or rent, while still
restricting a subsidiary from depleting spending capacity before it
is needed (e.g., during summer vacation, before tuition becomes
due). It may also be desirable to adjust spending capacity or other
spending restrictions based on, for example, the age of the
subsidiary or the subsidiary's passage of the age of majority or
another predefined milestone. Similarly, it may be desirable to
adjust spending capacity with the conclusion of a school term and
the beginning of summer break or to accommodate a planned trip such
as a summer trip to Europe. In the employment context, it may be
desirable to adjust spending capacity in situations where, for
example, the subsidiary passes an anniversary date or otherwise
becomes entitled to a salary adjustment or a bonus, where a
corporate administrator has adjusted allowable per diem expenses or
wishes to implement a planned adjustment to account for inflation,
or the like. It may also be desirable to be able to effect such
changes automatically, without requiring intervention each time
conditions change.
[0011] In recent years, economic globalization has led to an
increased number of international business travelers. Yet, as
mentioned above, financing international travel in today's
environment may give rise to certain difficulties. Business and
pleasure travelers often remain in a country of a different origin
and/or monetary base than from where the business traveler
originated. In some cases, the business traveler may desire to
remain in the foreign country for an extended period of time in
order to complete his intended business. At any given time, a
corporate organization may be managing the funding and other
financial arrangements for a large number of employees traveling
abroad. The financial needs of those employees may not always be
easy to accurately anticipate and/or administer.
[0012] The difficult financial needs include, for example,
subsisting in a foreign country for any extended period of time
typically involves a business traveler paying for living or
business expenses as they arise. In that regard, an employer may
provide the business traveler with different systems and methods
for paying for the expenses. For example, the business traveler may
be given cash which can be issued in the currency of the traveler's
country of origin (e.g. local currency) or in the currency of the
country of the traveler's intended destination (e.g. foreign
currency). However, carrying cash has several disadvantages. For
example, the cash typically is converted to the currency of the
country of intended travel using international currency conversion
rates. Further, the traveler typically keeps track of expenses
incurred during his business trip for reimbursement and accounting
purposes. Further still, cash is often irreplaceable if lost or
stolen, leaving the business traveler without sufficient funds to
sustain his trip.
[0013] In spite of the disadvantages of carrying cash, some
business travelers may still prefer to carry a negotiable paper
currency such as traveler's checks. In general, paper traveler's
checks are issued in the currency of the country in which the
traveler's checks are intended to be used. In addition, the
traveler's checks typically are given a unique serial number for
tracking the checks in the event the checks are lost or stolen.
Further, the traveler's checks often are countersigned by the
holder before it may be negotiated. Traveler's checks may be
desirable as compared to conventional cash because of the signature
authorization required and because of the ability to be
re-compensated the face value of the traveler's checks if the
checks are lost or stolen. The traveler may recoup her losses by
reporting to the traveler's check issuing institution the serial
numbers of the lost or stolen checks. Unfortunately, since the
traveler's check issuing institution must verify that the checks
were not used, or were subject to unauthorized use, such
reimbursement is typically not immediate. Thus, the traveler is
often placed at a financial disadvantage until such time as the
verification is completed and the traveler is reimbursed the amount
of the lost checks.
[0014] Another method for providing the business traveler with
needed funds includes issuing the traveler a transaction card
enabling the business traveler to electronically interface with a
financial institution. For this purpose, a variety of cards exist.
For example, a traditional credit card is a card which typically
contains a magnetic stripe encoded with an account number which may
be read at special terminals at a merchant's location. The merchant
terminal may read the account information and may transmit the
account information and the amount of the intended transaction to
the credit card issuing institution. The credit card issuing
institution may check credit available for the account against the
requested transaction to determine if the requested transaction is
within the transaction account credit limit (e.g., available
credit). Where the requested transaction does not exceed the
available credit, the issuing institution may extend the credit
needed to complete the desired transaction. Although the credit
cards may be readily replaced if lost or stolen, using the credit
card to complete a transaction has clear drawbacks. In particular,
the user of the credit card is often charged interest on the credit
extended, which means that the traveler may end up paying more than
the original amount needed to complete the desired transaction.
[0015] Another type of transaction card which may be used by a
business traveler is a debit card. Typically, a debit card is not
used to extend credit, but rather to debit or withdraw cash from an
account for immediate payment to a merchant. The debit card
typically corresponds to a checking account (or savings account)
established by the holder of the debit card. The checking account
is usually established at a financial institution located in the
country of intended use. The checking account and the financial
institution are usually only recognized in the country in which the
financial institution is located. Thus, the debit card is typically
not useful for completing transactions in countries other than
where the checking account is located. This is especially important
since the financial institution to which the checking account is
linked may not be recognized in the country where the transaction
is to be completed.
[0016] Still another type of transaction card which may be used by
a business traveler to access funds is the automated teller machine
(ATM) card. Similar to a debit card, the ATM card is typically
linked to a checking (or savings) account maintained at a
particular financial institution. As used herein in the context of
financial accounts, the terms "maintain" and "maintaining" refer to
any act or combination of acts of or relating to establishing,
authorizing, enabling, coordinating, funding, debiting, crediting,
accessing, tracking, accounting, reporting, modifying, or otherwise
facilitating and/or administering one or more such financial
accounts and/or transactions involving such accounts. The ATM card
may allow the ATM cardholder to remotely access funds stored in the
checking or savings account by presenting the card to an ATM which
is connected to an ATM interchange to which the financial
institution subscribes. Like a debit card, the financial
institution should be recognized by the ATM network. Thus, ATM
cards may be less useful to a foreign business traveler who
attempts to retrieve funds in a country other than where the
checking or savings account is established. The financial
institution is often not recognized in the country where the
transaction is to be completed.
[0017] Still another method for providing the business traveler
with funds includes providing the business traveler with a
"prepaid" transaction card which is linked to a prepaid account.
The prepaid account may be established at a financial institution
located in the country in which the card is to be used. The prepaid
method includes the prepaid cardholder depositing into the prepaid
account a predetermined amount of funds. Subsequent to delivery of
the goods or services, the amount of the transaction for goods and
services is charged against the amount available in the prepaid
account. However, similar to the debit cards, the prepaid card is
typically geographically limited in that the card may not be used
in a country which does not recognize the financial institution
where the prepaid account is established. Consequently, since it is
often imperative that the business traveler be provided access to
sufficient funds for payment of these expenses, a system and method
is needed which will allow the business traveler to access the
needed funds, whether or not the traveler's attempt to access the
funds in his country of origin or the foreign country in which he
is traveling.
[0018] Accordingly, it would be advantageous to have a system and
method for providing a flexible limit subsidiary card that does not
require the prepayment and/or storage of value prior to use to
facilitate transactions. It would also be advantageous to have a
financial vehicle that would enable a parent (e.g., employer) to
provide value to be spent by a subsidiary (e.g., employee), while
providing control over the spending capacity and/or debt
accumulation by the subsidiary, and it would be advantageous if the
parent would be able to do so remotely from the subsidiary, and
even if the parent's financial institution is located remotely from
that of the subsidiary. It would further be advantageous if such
control included the ability to limit total spending or to prevent
or limit spending for specific classes of goods and/or services or
to limit or prevent spending at specific classes of merchants or
service providers or to limit or prevent spending at specifically
identified merchants or service providers. It would also be
advantageous to have a system and method for providing a flexible
limit subsidiary card that would provide additional features such
as replacement in the event the card is lost or stolen, wherein
such a feature is are not typically available with cash. It would
also be advantageous to have a system and method for providing a
flexible limit subsidiary card that would provide the user with
freedom and independence to use the received funds to facilitate
on-line and off-line transactions as well as withdrawals of money
from ATMs. It would also be advantageous to have a system and
method whereby a parent could provide security for emergency
situations such as medical care while limiting access to credit in
other situations. Finally, it would be advantageous for such a card
to enable carry-over of a credit balance.
SUMMARY OF THE INVENTION
[0019] The present invention addresses many of the shortcomings of
the prior art by providing a flexible limit subsidiary card account
that may be issued by a foreign financial institution and that may
be used internationally. In particular, the invention is directed
toward a system and method that allows a parent to provide funds to
a subsidiary and to at least partially control the subsidiary's
spending capacity. In a first aspect, a system for administering a
subsidiary card account includes a parent and an administrator. The
parent, which is associated with an established credit instrument,
e.g., a parent account, is configured to communicate a request for
a second account to be established and associated with a
subsidiary. The administrator is configured to receive the request
from the parent and to facilitate the establishment and issuance of
a subsidiary account. The administrator is also configured to
facilitate determination and adjustment of appropriate spending
power for the parent account and spending capacity for the
subsidiary account in accordance with a predetermined set of rules.
An exemplary set of rules may include an allocation of risk between
the administrator and the parent whereby the spending power of the
parent account is reduced by an amount that is less than the credit
line established for the related subsidiary card account, in
accordance with an allocation of risk to the administrator. In
addition, an exemplary administrator is further configured to
receive and facilitate execution of a request from the parent to
define, modify, and/or terminate the spending and/or debt
accumulation limits, i.e., capacities, for the subsidiary card
account.
[0020] In another aspect of the invention, various methods are
provided for facilitating the administration of one or more
subsidiary accounts. In an exemplary embodiment, a method comprises
the steps of receiving a request from a parent to establish a
subsidiary account, wherein the parent identifies one or more
financial account associated with the parent and established by a
first institution (i.e., parent account); establishing a subsidiary
account at least partially maintained by a second institution and
having a defined spending capacity; and reducing the spending power
of the parent account by an amount less than the subsidiary
spending capacity. The subsidiary account may be fully maintained
by the second institution, which may be situated in a location
remote from the first institution, e.g., in a country that is
different from the country of the first financial institution. The
subsidiary account may be configured for effecting payment to a
merchant located within the country of the parent account, remotely
from the parent account, or alternatively, in a country other than
that of the parent account.
BRIEF DESCRIPTION OF EXEMPLARY DRAWINGS
[0021] The above-mentioned objects and features of the present
invention can be more clearly understood from the following
detailed description considered in conjunction with the following
drawings, in which like numerals represent like elements and in
which:
[0022] FIG. 1 is a schematic block diagram of a prepaid card issuer
system in accordance with an exemplary embodiment of the present
invention;
[0023] FIG. 2 is a flowchart illustrating a system and method for
ensuring completion of a transaction request using a prepaid card
issued by a foreign financial institution in accordance with an
exemplary embodiment of the present invention.
[0024] FIG. 3 illustrates the interactions of an exemplary system
configured to administer a flexible limit subsidiary card
account;
[0025] FIG. 4 illustrates an exemplary administrator configured to
administer a flexible limit subsidiary card account; and
[0026] FIG. 5 illustrates an exemplary process for administering a
flexible limit subsidiary card account.
DETAILED DESCRIPTION OF EXEMPLARY EMBODIMENTS
[0027] The present invention is a payment and funding vehicle that
is configured to allow a parent and an administrator to provide
funds in the form of a credit line (i.e., spending capacity) to a
subsidiary. The system thereby facilitates control over the
subsidiary's spending capacity and/or debt accumulation. In
accordance with one aspect of the invention, a system for
administering a subsidiary card account includes a parent and an
administrator. The parent, which is responsible for a related
credit instrument, e.g., a parent account, is configured to
communicate a request to the administrator requesting that a credit
card account be issued to a subsidiary. The administrator is
configured to receive the request from the parent and to facilitate
the establishment and administration of the subsidiary card account
so that it may be used by the subsidiary to facilitate
transactions. The administrator is also configured to facilitate
determination and adjustment of appropriate spending power for the
parent account and spending capacity for the subsidiary card
account in accordance with a predetermined set of rules. An
exemplary set of rules may require an allocation of risk between
the administrator and the parent whereby the spending power of the
parent account is reduced by an amount that is less than the credit
line, i.e., spending capacity, established for the related
subsidiary card account, in accordance with, and reflecting, an
allocation of risk to the administrator. In addition, an exemplary
administrator is further configured to receive, and facilitate
execution of, a request from the parent to define, modify, and/or
terminate the spending capacity and/or debt accumulation limits for
the subsidiary card account.
[0028] In accordance with a further aspect of the present
invention, a method of administering a subsidiary card account at
the request of a parent is also provided. In accordance with the
invention, a parent communicates a request to an administrator to
issue a subsidiary card account to a subsidiary. The administrator
receives the request and approves or denies it based on a
predetermined set of rules. If the request is approved, the
administrator establishes the spending capacity of the subsidiary
card account, modifies the spending power of the parent account,
and allocates the difference to the administrator as additional
risk. The administrator dispatches the subsidiary card, or other
tangible indicia of the subsidiary card account, to the subsidiary
who may then use the subsidiary card account to facilitate
transactions. The administrator additionally facilitates
performance of various administrative functions that enable the
subsidiary card account to function as a credit vehicle with a
degree of control afforded to the parent to define, modify, and/or
terminate the spending capacity and/or debt accumulation limits for
the subsidiary card account.
[0029] As used herein, the term "parent" refers to one or more
parties possessing one or more existing credit vehicles, such as
credit card accounts, or any other payment or transaction device
and desiring to establish, and at least partially accept
responsibility for, one or more credit line or other financial
commitment system to be used by at least one other party. It should
be noted that a parent may be a guardian, company, entity,
software, hardware or any other party which provides credit or
payment for a subsidiary. Also, as used herein, the term
"subsidiary" refers to one or more recipient of a credit or other
payment line established at the request of a parent. It should be
noted that a subsidiary may be any person, entity, software,
hardware or other party capable of receiving and using a credit
line provided by a parent and may be a dependant child, an
employee, entity, software, hardware or any other party capable of
receiving a credit line or any other payment arrangement.
[0030] In accordance with the present invention, an account held by
a subsidiary (e.g., a subsidiary card account) facilitates
transactions by allowing the subsidiary to access credit. It should
be noted that the subsidiary card account may be substantially a
credit vehicle. As such, it may not require substantial
pre-payment, neither by a parent nor a subsidiary. Moreover, a
parent or subsidiary card account may include an account code
associated with a physical card or simply an account code without a
physical card.
[0031] It should be noted that, as used herein, the term
"administrator" refers to all types of credit issuing institutions,
such as banks, credit card companies, card sponsoring companies, or
third party issuers under contract with financial institutions. It
should also be noted that other participants may be involved in
some phases of transactions related to facilitation of transactions
involving the accounts, such as one or more intermediary settlement
institution, but these participants are not shown.
[0032] An "account number," as used herein, includes any device,
code, or other identifier and/or indicia suitably configured to
allow a consumer to interact or communicate with the system, such
as, for example, an authorization/access code, a personal
identification number (PIN), an Internet code, other identification
code, and/or the like which may optionally located on a rewards or
incentives card, charge card, credit card, debit card, prepaid
card, telephone card, smart card, magnetic stripe card, bar code
card, and/or the like. Such an account number may be distributed
and stored in any form of plastic, electronic, magnetic, and/or
optical device capable of transmitting or downloading data from
itself to a second device. A subsidiary or parent account number
may be, for example, a sixteen-digit credit issuer's identifier
such as a credit card number, although each credit provider has its
own numbering system, such as the fifteen-digit numbering system
used by American Express.
[0033] In an exemplary embodiment, a subsidiary card may bear the
name of the subsidiary, and an account number corresponding to the
account of the parent. In another exemplary embodiment, a
subsidiary card may be issued in non-embossed form, with a name and
account number, which may be configured to uniquely identify the
subsidiary, being printed on the card. In accordance with this
embodiment, non-embossed cards may be much more difficult to use
for off-line, POS transactions because the old off-line machines
create ROCs from the impression left by the embossed letters. The
cards may, however, be used for on-line transactions. By
encouraging more transactions to be on-line, an issuer may be
better able to track transactions in real-time, and therefore
prevent a subsidiary card holder from exceeding the limit to which
the parent has agreed.
[0034] A participating party's credit card numbers may be
configured to comply with a standardized format such as a
sixteen-digit format using four spaced sets of numbers (e.g., as
represented by the number "0000 0000 0000 0000"). In an exemplary
embodiment, the first five to seven digits may be reserved for
processing purposes and identify the issuing bank, card type and
etc. In this example, the last sixteenth digit may be used as a sum
check for the sixteen-digit number. The intermediary eight-to-ten
digits may be used to uniquely identify the consumer.
[0035] Although described in terms of a card account, the invention
may represent a complete payment service encompassing all involved
processes from authentication of the participants to authorization
of the transaction to settlement of the payment. The flexible limit
subsidiary card account may be established as virtual account, but
can also be offered and distributed as a plastic card to be managed
and/or supported by an issuer, and can further be branded for and
distributed by a third party. It should be noted that the flexible
limit subsidiary card account may be used to facilitate online
transactions as well as transactions conducted at storefronts using
plastic that has been distributed for the flexible limit subsidiary
card account.
[0036] In an exemplary embodiment, the present invention provides
system and method for a foreign financial institution to issue a
subsidiary card for use domestically. As used herein, "domestic"
and "foreign" are relative terms. "Domestic" refers to the country
of intended or requested transaction, and "foreign" refers to the
country where the financial account is located and where the
country is different from the domestic country. However, the terms
may be used interchangeably in the various embodiments. In
particular, a method and system is disclosed which provides for a
subsidiary card which may be used domestically, and which is issued
by a foreign financial institution. In this context, the foreign
financial institution may be one located in a country other than
where the subsidiary (i.e., the holder of the subsidiary card)
initiates a transaction request. The transaction request may be a
purchase request, request for cash back, a request for a balance
inquiry, request for transaction or subsidiary card usage history,
or any such transaction request permitting the subsidiary to check
account activity or to access the funds stored in a subsidiary
transaction account.
[0037] The subsidiary card account in accordance with an exemplary
embodiment of the invention may be opened by a parent, such as the
subsidiary's guardian, employer or benefactor, etc. In some
instances, the sponsor (i.e., parent) and the card holder (i.e.,
subsidiary) may be the same entity. The parent may open the account
under any business as usual as is standard as determined by the
financial institution. The financial institution may request that
the parent deposit a fixed monetary amount (e.g., monetary value)
into an account uniquely corresponding to the specific subsidiary
card account. The amount deposited in the account may be deposited
periodically or at any given time. The amount may be deposited in
the currency of the country in which the financial institution is
located or in any other currency which may be accepted by the
financial institution. In addition, the amount deposited in the
account may serve as a spending capacity for the subsidiary card.
In particular, the subsidiary may be prevented from incurring
expenses exceeding the total monetary value stored in the
corresponding subsidiary card account. In some instances, the
parent may be permitted to make provisions for payment of fees or
expenditures incurred where the subsidiary exceeds the amount
stored in the subsidiary card account. Such provisions may be
specific to the business practices of the financial
institution.
[0038] Once the subsidiary card account is opened, the financial
institution may store in a financial database account identifying
information corresponding to the subsidiary card account. The
account information may be any information permitting the financial
institution to correlate the subsidiary card to the subsidiary card
account. For example, the account information may include the name
of the subsidiary, the account number corresponding to the
subsidiary card account, the monetary value stored in the
subsidiary card account, the expiration date of the subsidiary
card, the name of the parent, etc. The database containing the
account information may be managed by a financial institution
server. The financial institution server may be configured to
receive transaction requests from a merchant POS device or ATM,
authorize the transaction request, and provide payment of funds for
the completion of the transaction, etc. Authorization of the
transaction request may include locating the file corresponding to
the subsidiary card account number provided by the merchant (e.g.
matching the subsidiary card account number with the correlative
subsidiary account), verifying that the funds are available for
completing the transaction, and transmitting the necessary funds
for the transaction's completion. In one exemplary embodiment the
financial institution may send the necessary funds in batch
transmissions. That is, the financial institution may group (e.g.,
batch) the necessary funds in accordance with a receiving
institution (e.g., merchant) identified in the transaction request,
or series of transaction requests. The funds may be organized in a
batch file. Once batched, the batch file may be periodically
provided to the receiving institution. In some instances,
authorizing the transaction may include locating the account file
corresponding to the subsidiary card and transmitting a card usage
history and/or account balance. In this context, the account
balance may include a reporting of the monetary value remaining in
the account, as well as, the total of expenditures to date.
[0039] The subsidiary card may include system and method for
storing a readable subsidiary card identifier. The subsidiary card
identifier may be any account code readable by a merchant POS
device or ATM, where the account code corresponds to the subsidiary
card account maintained by the financial institution server. The
card identifier information may be stored on the subsidiary card
using any technology capable of physically encoding the account
information on the subsidiary card. Suitable technologies include
magnetic stripe technology, bar coding technology, smart card
technology, radio frequency ID, infrared blue tooth or the like. An
example of such technology is disclosed in U.S. Pat. No. Re 36,365
issued Nov. 2, 1999 to Levine et al.
[0040] The account number assigned to the subsidiary account and
encoded on the subsidiary card is preferably recognizable by the
merchant POS or ATM systems. Such recognition involves recognizing
that the account number has been issued by a financial institution
authorized to conduct business on the merchant POS or ATM payment
network. The financial institution may be recognized as authorized
by use of a code or signature readable by the POS or ATM.
[0041] For example, where the subsidiary card issuing institution
is located outside the United States, the issuing institution may
be issued a code authorizing the issuing institution to transact
business over, and be recognizable by, United States based payment
networks. These special authorizing codes may be included in the
subsidiary card account number. For example, in one exemplary
embodiment, the account number may include a bank identification
number (BIN) approved by the American Banking Association and a
code which may direct the merchant system to the appropriate
financial institution for transaction request approval. Since the
foreign financial institution is issued a BIN which is recognized
domestically, domestic merchant POS and ATM systems may recognize
the foreign financial institution as appropriate for conducting
transactions over the United States based payment network. That is,
unlike conventional cards, such as debit cards and ATM cards, the
present invention provides that the foreign subsidiary includes a
system for completing a financial transaction domestically, even
though the correlative subsidiary account is issued by a financial
institution located in a foreign country.
[0042] Once the merchant determines that the account number
includes a payment network authorizing code, the merchant (or ATM)
may process the subsidiary's transaction request. That is, the
merchant may seek to determine whether the subsidiary's requested
transaction is authorized. The merchant may send the transaction
request corresponding to the subsidiary's desired transaction to
the foreign financial institution. The transaction request may
include an account identifier corresponding to the subsidiary's
transaction account at the financial institution. The financial
institution may seek to verify whether the account identifier
corresponds to an authorized subsidiary account. Verification may
include comparing the account identifier with authorized subsidiary
account identifications stored in a financial institution database
and maintained by a financial institution server. In this context
the account identifier may be the account transaction number, a
correlative account number, financial institution BIN, personal
identification number or the like or any combination thereof. Where
the financial institution server successfully matches the account
identifier to an authorized subsidiary account, the financial
institution may be deemed to have verified that the account
identifier may be used to conduct business on the financial
institution system. The financial institution server may then seek
to determine whether sufficient funds exist in the subsidiary
account to complete the desired transaction. That is, the monetary
value stored in the subsidiary account on the financial institution
database may be compared to the amount of the requested
transaction. If the value of the requested transaction is less than
or equal to the amount stored in the subsidiary account, the
financial institution may authorize the transaction. The financial
institution may then send notification to the merchant that the
transaction is authorized.
[0043] Upon receiving notification that the transaction is
authorized, the merchant system may seek to have the transaction
satisfied. The merchant system may send a file containing a record
of the transaction to the foreign financial institution, whereby
funds sufficient to account for the transaction may be
electronically transmitted directly to the merchant. Alternatively,
the merchant may send the settlement file to an "acquirer." In this
context, an acquirer is an entity which receives the settlement
file including the account identifying indicia (i.e., account
number) and summary of changes, and forwards the settlement file to
the foreign financial institution for satisfaction. The acquirer
may individually send the settlement file to the foreign
institution, or may organize (e.g., batch) all settlement files
corresponding to a particular account or foreign financial
institution prior to sending the batch files to a foreign
institution for satisfaction of the transactions. Where the acquire
batches the settlement files, the batched settlement files may be
sent to the foreign financial institution as one batch file
containing several transactional requests. The foreign financial
institution may receive the batch requests and satisfy each
individual settlement file or transaction request accordingly. In
another exemplary embodiment where multiple settlement files
correspond to one merchant the foreign financial institution may
batch the funds necessary to satisfy the settlement files and
forward the merchant batch to the merchant. Alternatively the
financial institution may send the batch files to the acquirer,
which may in turn forward the batch files to the appropriate
merchant.
[0044] In some instances, the subsidiary card may not be authorized
because the subsidiary account identifier may not be matched to any
file stored on the financial institution database. Where no match
is made between the account identifier provided by the subsidiary
and the subsidiary account identifiers stored on the financial
institution database, the subsidiary account number provided to the
financial institution will be deemed unauthorized and/or invalid.
The financial institution server may then return a message to the
merchant point of sale device or ATM notifying merchant, the
subsidiary, or the ATM that the requested transaction has been
denied processing.
[0045] As noted, once the account number is verified by the
financial institution, the financial institution server may seek to
determine whether the subsidiary's requested transaction may be
completed. In one instance the financial institution server may
compare the monetary amount of the requested transaction with the
monetary amount stored in the subsidiary card account located on
the financial institution database. If the requested transaction
amount exceeds the amount stored in the subsidiary card account,
the subsidiary's requested transaction may be denied.
[0046] In addition, a denial message may also be sent where the
subsidiary attempts to use a subsidiary card which is expired. That
is, a sponsor or financial institution may predetermine the length
of time during which the subsidiary card may be used. The length of
time may be noted by an expiration date, after which the subsidiary
card may not be used. Where the expiration date approaches, the
financial institution may contact the sponsor and notify the
sponsor that the subsidiary card will expire. The financial
institution may contact the sponsor via any communication network
for sending and receiving electronic communications. Alternatively,
the financial institution may contact the sponsor via traditional
mail methods.
[0047] However, it should be noted that the subsidiary card account
is re-loadable or restorable. That is, where the value stored in
account is depleted or nearly depleted, the financial institution
may permit the sponsor to restore the value to any suitable
monetary level. The financial institution may notify the sponsor
that the value stored in the account is depleted using any suitable
communication network for sending and receiving electronic
communications, as described above. Alternatively, the financial
institution may notify the sponsor that the account is depleted
using translation postal network (e.g., notification letter).
[0048] In some instances, the financial institution may request
additional verification of the subsidiary's identity. For example,
where the merchant POS device or ATM requires the subsidiary to
enter a unique security code corresponding to the unique subsidiary
card account stored on the financial institution database, the
financial institution may seek to authenticate the provided
security code (e.g. personal identification number (PIN), biometric
fingerprinting, electronic signature, or the like). The financial
institution may receive the security code and the compare the
security code to security codes stored on the financial institution
database and which correlates to the subsidiary card account
number. If a match is made, the requested transaction may be
permitted to proceed. Contrarily, if a match is not made, the
transaction request may be denied and the subsidiary transaction
terminated.
[0049] The operation of the invention may be understood more fully
with reference to FIG. 1. FIG. 1 illustrates an exemplary system
100 in accordance with an exemplary embodiment of the present
invention. System 100 includes an online infrastructure that may be
used to authorize a transaction request received from a merchant.
With reference to FIG. 1 exemplary card provider system 100 may
include a number of customer interface systems 102, a merchant
system 120, and foreign financial institution system 130, which may
be configured to intercommunicate via a network 106. The system 100
may additionally include an acquire 126 configured to receive
settlement requests from merchant system 120 and provide the
settlement requests to the foreign financial institution system 130
via network 106. System 100 may further include a parent system
104, which may be configured to communicate with foreign financial
institution system 130 to open a subsidiary account, replenish
subsidiary account funds, or receive account activity reports from
foreign financial system 130.
[0050] Customer interface 102 may include any conventional
combination of hardware and software components configured to allow
a subsidiary to communicate over network 106. For example, customer
interface 102 might include a standard personal computer (PC)
comprising a CPU, monitor, storage, keyboard, mouse, and
communication hardware appropriate for the given data link 103
(e.g., V.90 modem, network card, cable modem, etc.). In alternate
embodiments, customer interface system 102 may be a personal data
assistant (PDA) capable of manipulating images and communicating
with merchant system 120. Customer interface system 102 typically
may typically include an operating system (e.g., Windows
95/98/2000, Linux, Solaris, MacOS, and/or the like) as well as
various conventional support software modules and drivers typically
associated with computers. Customer interface system 102 may also
include application software configured to communicate via merchant
system 120 over network 106 with financial institution system 130.
For example, one such application software may include a world wide
web (WWW) browser or any other communication software. In an
exemplary embodiment, customer interface system 102 includes a
conventional Internet browser application that operates in
accordance with HTML and HTTP protocols such as Netscape Navigator
(available from the Netscape Corporation of Mountain View, Calif.)
or Microsoft Internet Explorer (available from the Microsoft
Corporation of Redmond, Wash.).
[0051] Merchant system 120 may include a network of point of sale
devices 122, configured to communicate with customer interface 102
for receiving the subsidiary card account identifying information.
As noted, the present invention is described with respect to a
point of sale device to simplify the understanding of the operation
of the invention. In this context, the point of sale device 122 may
be any device suitable for receiving the subsidiary card account
number and transmitting the card account number to a merchant
computer 124 for processing.
[0052] Merchant system 110 may further include a merchant server
112 configured to communicate with financial institution system 130
via a network 106. The merchant server 112 and the financial
institution server 114 may be configured to send and/or receive
information (e.g., subsidiary identity, subsidiary account number,
expiration date, transaction purchase history, etc.) related to a
transaction request (e.g. log on request, request for access,
purchase request, request for pre-approval application, etc.). In
an exemplary embodiment, the transaction request information
provided by the merchant may include a code identifying the nature
of the transaction. The code may include information identifying
the transaction as a purchase request, inquiry (e.g., balance,
transaction history) and/or the like.
[0053] The merchant server 112 may be configured to receive the
transaction request and/or transaction initiating indicia from the
customer interface 102 and seek validation of the information
provided from the issuing financial institution 130. In particular,
the merchant server 112 may send a validation or authorization
request to the issuing financial institution server 114. The
financial institution server 114 may validate the information by
matching the information contained in the transaction request to
data files stored on a financial institution database 116. Once the
information is validated, a corresponding transaction authorized
signal may be forwarded to the merchant server 112, for use in
determining whether to complete the transaction requested by
customer interface 102.
[0054] Merchant server 112 and financial institution server 114 may
be any conventional servers (e.g. transaction account server) known
in the art, including system and method for receiving transaction
requests (e.g., balance, transaction history, or purchases request,
etc.) via the network 106, processing such transaction requests and
sending validation (e.g., sending confirmation or denial) of the
transaction requests to customer interface 102. Customer interface
102 may be suitably coupled to the merchant system 120 via data
lines 103. Merchant system 120 may be suitably coupled to the
foreign institution system 130, via network 106 via data links 105
and 107. In addition, where the system 100 further includes a
parent system 104 configured to transmit a request to open a
subsidiary card account and to receive an accounting (e.g. account
activity, depletion of funds, account expiration), such parent
system 104 may be connected to foreign financial institution system
130 via data link 109 or via network 106 and data links 115 and
107.
[0055] Merchant server 112 and issuing institution server 114 may
comprise any number of hardware, software, and networking
components suitable to provide an user interface to a network 106.
In addition, servers 112 and 114 may be configured to manage
databases, such as for example database 116. In one embodiment,
server 112 and server 114 may include Sun Ultra SPARC Enterprise
250 and 450 servers which may be used in conjunction with a Sun
Solaris 7 or Linux operating system, Apache web server software,
and an Oracle 8 or MySQL database system. Of course, particular
hardware and software components used in servers 112 and 114 will
vary widely from embodiment to embodiment. Furthermore, servers 112
and 114 may represent a "cluster" or group of separate computer
systems providing the functionalities described herein.
[0056] A variety of conventional communications media and protocols
may be used for data links 103, 105, 107, 109, 111, 113 and 115.
Such links might include, for example, a connection to an Internet
Service Provider (ISP) over a local loop as is typically used in
connection with standard modem communication, cable modem, Dish
networks, ISDN, Digital Subscriber Line (DSL), or various wireless
communication methods. In addition, customer interface system 102
and merchant system 120, might each independently and separately,
or collectively, reside within a local area network (LAN) which
interfaces to network 106 via a leased line (T1, D3, etc.). Such
communication methods are well known in the art, and are covered in
a variety of standard texts. See, e.g., GILBERT HELD, UNDERSTANDING
DATA COMMUNICATIONS (1996), hereby incorporated by reference.
[0057] In an exemplary system 100, foreign financial institution
database 116 may include a plurality of distinct locations for
maintaining individual subsidiary, subsidiary account, account
security, or parent information. Such information may include
subsidiary information, such as subsidiary identity, account
number, account balance, amount available, subsidiary PIN, purchase
history, etc. (collectively "customer profile"). For example, in
one embodiment, a distinct location may include the customer
profile of a single subsidiary. The database 116 may be a
graphical, hierarchical, relational, object-oriented or other
database, and may be maintained on a local drive of server 114 or
on a separate computer coupled to server 114 via a local area or
other network (not shown). In one embodiment, the database may be a
collection of ASCII or other text files stored on a local drive of
server 114. Subsidiary account information may be suitably
retrieved from the database 116 and provided to customer interface
102 or to merchant system 120, upon request via a server
application, as described more fully below.
[0058] As noted, within database 116 there may be stored a
plurality of individual distinct data locations corresponding to
the customer profile for each subsidiary. In one embodiment,
database 116 may be managed by the financial institution server 114
which may be maintained on a subsidiary card issuer (e.g., foreign
financial institution) system 130 with which the subsidiary has an
established subsidiary account. The subsidiary account may be
associated with any suitable service such as a banking service
capable of use for commercial transaction purposes. For example,
the subsidiary account may be associated with checking, savings,
interest bearing accounts or the like. Further, the subsidiary
account may additionally allow the merchant system 120 to recover
payment for transactions made by an individual subsidiary.
[0059] The operation of the present invention may be more fully
understood with reference to FIG. 2 and continued reference to FIG.
1. FIG. 2 depicts a flowchart of an exemplary subsidiary card
system 200 in accordance with the present invention. As shown,
system 200 may begin with the foreign financial institution system
130 being assigned a domestic payment network authorization code
(i.e., a BIN). To aid in increased understanding of the invention,
the flowchart in FIG. 2 and the system in FIG. 1 is described with
respect to a foreign financial institution located outside the
United States and with respect to domestic transactions taking
place in the United States. Thus, foreign financial institution
system 130 is described as being assigned a BIN approved by the
American Banking Association (step 202) or any similar authorizing
protocol operating in the United States. The BIN is such that it
may be recognized and accepted by any network configured to accept
BINs domestically, and for which network the financial institution
may be registered. In this context, the BIN may be used to identify
the foreign financial institution system 130, even though the
financial institution may be located abroad (e.g., not
domestically).
[0060] In one exemplary embodiment, the foreign financial
institution system 130 is such that it may be configured to
establish a subsidiary account for use in satisfying financial
transaction requests. The establishment of the subsidiary account
may be accomplished by any means as determined by the foreign
financial institution. As noted, the foreign financial institution
system 130 may include an establishment program for facilitating
the subsidiary account establishment. In some instances, it may be
necessary for the financial institution to institute an
establishment program prior to beginning the subsidiary account
process. In some cases, however, the financial institution system
130 may have an establishment program already in place.
[0061] The foreign financial system 130 may include a database 116,
wherein distinct database locations may be reserved for storing the
subsidiary account information (e.g., account number, monies
available, transaction history, expiration date, parent identifier,
etc.) and/or customer profile (e.g., subsidiary account holder
name, address, PIN, etc.). The distinct database locations may
correspond to distinct subsidiary accounts such that the subsidiary
account information is correlated to the customer profile.
[0062] The foreign financial system 130 may further include a
foreign financial institution server 114 configured to manage
database 116. The server 114 may be such that it may enable the
financial system 130 to receive transaction authorization requests,
and validate such request, as is described more fully below.
[0063] Once the financial institution system 130 has been provided
a BIN (step 202) and suitably establishes a system and method for
providing a subsidiary account, a parent 104 may open a subsidiary
account with the financial institution system 130 (step 204). The
parent 104 may open the subsidiary account using any means as
determined by the financial institution system 130. In one
embodiment, the parent 104 may open a subsidiary account by
submitting an application for a subsidiary account including the
subsidiary account subsidiary name and account expiration date, and
providing funds to the subsidiary account for establishing the
spending capacity associated with the account. The funds may be
provided in the currency of the country in which the foreign
financial institution system 130 is located or any currency
acceptable to the system 130. The funds may be provided
electronically over data link 109, via check, money order or in any
manner as determined by the foreign financial institution system
130.
[0064] Upon opening the account, the sponsor 104 may provide a
subsidiary card to a subsidiary using the card in a country
different from the subsidiary's country of origination. The
subsidiary may travel to the foreign country and attempt to
complete a financial transaction, such as, financial transaction
for goods or services. To complete the transaction, the subsidiary
may present the subsidiary card account information to a merchant
point of sale (POS) device 122 via a customer interface 102 (step
206). The subsidiary account information may be presented in the
form of an imprinted or embossed card wherein the subsidiary
account number is encoded on the card in a magnetic strip, barcode
or the like. The subsidiary may present the subsidiary account
information to the POS device 112 along with a transaction request.
The POS device 122 may further transmit the subsidiary card account
information and transaction request to a merchant computer system
124 including a merchant server 112 (step 208).
[0065] In one embodiment, the account information may include a
unique routing code which may be used to direct the merchant server
112 to the appropriate financial institution system 130. In one
example, the unique routing code may be a BIN or may be coupled
with a BIN. Merchant server 112 may be configured to receive the
account information and the transaction request, and provide the
account information and transaction request to a foreign financial
institution system 130 for authorization (step 210). The merchant
server 112 may identify the appropriate financial institution
system 130 for receipt of the account and transaction request
information by the assigned BIN and institution's unique routing
code.
[0066] Authorization of the transaction may take place in several
steps. For example, the foreign financial institution system 130
may include a server 114 configured to received the account
information and match the account information to its corresponding
data location on foreign financial institution system database 116
(step 212). In an exemplary matching method, the account
information may be compared to the distinct account locations on
database 116 to determine if the subsidiary account information may
be found in the database 116. A match is made if corresponding
account information is found on the financial institution database
116. If a match is made, the foreign financial system server 130
may indicate that the account number is valid. However, the foreign
financial system server 130, or alternatively, the merchant system
120, may require additional verification of the subsidiary card
authenticity. For example, the subsidiary may be required to
provide a PIN number, biometric fingerprint, electronic signature,
or the like, as a form of identity verification. The identity
verification may be received by the financial institution system
130, via network 106, merchant system 120 and customer interface
102. The foreign financial institution server 114 may seek to match
the provided identity verification to the identity verification
information stored in the correlative customer profile area on
database 116. Where a match is made, the transaction authorization
process may continue. Where the account information and/or
associated identity verification information are not found on
database 116, the financial institution server 114 may provide the
merchant system 120 with a transaction denied message (step 214)
and the transaction request may be terminated (step 216).
[0067] Even where the account information and associated PIN are
matched on the database 116, the system 130 may further determine
whether the transaction is authorized for completion. In
particular, the foreign financial system 130 may determine whether
the subsidiary account has sufficient funds for completing the
transaction (step 230), or whether subsidiary account card is
expired (step 218). That is, the system 130 may seek to determine
if the funds are available in the subsidiary account to complete
the transaction, or if date of the transaction request falls after
the date on which the subsidiary account is to expire. As noted,
the expiration date may be a date determined by the sponsor 104 or
by the foreign financial institution system 130. Where the
transaction date falls after the expiration date of the subsidiary
account, the transaction request may be denied (step 214) and the
transaction request may be terminated (step 216). Similarly, where
the monetary amount of the requested transaction exceeds the funds
available in the subsidiary account, the transaction request may be
denied (step 214) and the transaction request may be terminated
(step 216). It should be noted, that in verifying whether
sufficient funds exist, financial institution server 114 may first
convert the monetary amount noted in the transaction request to the
correlative amount in the domestic currency. The conversion may be
made using available international currency conversion rates.
[0068] In the event that the financial institution server 114
matches the subsidiary account information to correlative matching
account information on database 116, verifies that the subsidiary
account is not expired, and that the transaction request does not
exceed the stored monetary value, the transaction may be authorized
(step 220). Upon authorization, the financial system server 114 may
provide the merchant system 120 with a transaction authorized
message via any suitable communications network, permitting the
transaction request for goods or services to proceed. The merchant
system 120 may then seek to have the transaction request satisfied.
In this context, the transaction request may be satisfied where the
merchant system provides a request for payment of goods and
services which is responded to by the financial institution system
130 with a transfer of funds for payment of the goods and services
provided.
[0069] In seeking settlement of the transaction request, the
merchant system 120 may directly request payment from the financial
institution system 130, or the merchant system may provide a
settlement request to an acquirer 126 (step 222). The acquirer 126
may be any entity configured to receive settlement request from a
merchant system 120 and provide the settlement request to the
foreign financial institution 130 (step 224). In one embodiment,
the acquirer 126 may send the settlement request individually to
the financial institution system 130. In another embodiment, the
acquirer 126 may provide a multitude of settlement requests to the
financial institution system 130, where the settlement requests are
organized in a batch. The settlement request may be organized in
accordance with any indicia to identifying the foreign financial
institution for receiving the batch. For example, the batch may be
organized by the BIN of the financial institution system 130, by
the subsidiary card account number, by the transaction date, or the
like.
[0070] Upon receiving the settlement requests, the financial
institution system server 114 may process the request for payment
to merchant system 120. The financial institution system server 114
may match the transaction requests to the appropriate distinct data
location on database 116 corresponding to a particular subsidiary
account. Funds necessary for satisfaction of the transaction
request may be retrieved from the subsidiary account by server 114
(step 226) and provided to the merchant system 120 (step 228).
While the funds stored in the financial account may be provided in
the currency of the country in which the financial system 130 is
located, the funds transferred to the merchant system 120 may be
converted to the currency of the country in which the merchant
system 120 is located. The funds may be converted by foreign
financial institution system 130 or by an acquirer 126 prior to
forwarding the funds to merchant system 120. For example, in one
exemplary embodiment the foreign financial institution 130 may
provide the funds to an acquirer 126 via a network 106. The
acquirer 126 may receive the funds in the currency of the country
wherein the foreign financial institution system 130 is located and
may convert the funds into the currency of the country wherein
merchant system 120 is located. That is, the funds may be permitted
to undergo a currency conversion, wherein the funds are converted
to the a second currency based on the existing currency exchange
rate. If incorrect currency exchange rates are used, thereby
creating a deficit to the merchant, the deficit may be charged
against (e.g., deducted from) the subsidiary account. If the
deficit charged against the subsidiary account creates an
insufficient funds situation, the loss may be born by the financial
institution system 130. Similarly, where the incorrect exchange
rate creates a surplus (e.g., by causing the system 130 to forward
more money than required, the surplus may be returned to the system
130 and added to the subsidiary account balance. In one exemplary
embodiment, the funds may be provided electronically. An exemplary
method for providing funds electronically is disclosed in U.S. Pat.
No. 6,304,860 issued Oct. 16, 2001 to Martin, Jr. et al., which is
incorporated herein by reference.
[0071] In some cases, the funds stored in the subsidiary account
may become depleted due to the submitted settlement request. In
this instance, the foreign financial institution may notify the
parent system 104 and the subsidiary of the subsidiary account's
depleted status. Such notification may be provided to the sponsor
system 104 and subsidiary electronically, in accordance with
established methods for sending electronic communications.
Alternatively, the notice may be provided to the sponsor system 104
and the subsidiary via traditional postal methods (e.g.,
notification letter). Upon notification of the account's depleted
status, the sponsor may be permitted to provide additional funds to
the subsidiary account (e.g., reload the account) for future usage
by the subsidiary account subsidiary.
[0072] As noted, the subsidiary card account includes a expiration
date determined by the parent 104 or the foreign financial
institution, after which the subsidiary account may not be valid
for completing transaction requests. Foreign financial institution
system 130 may be configured to provide notice of an impending
expiration date to the sponsor 104 and/or the subsidiary. The
expiration date notice may be provided electronically, or via
traditional postal methods. Upon receipt of the expiration notice,
the sponsor 104 may be permitted to determine if new expiration
date should be associated with the account. Where a new expiration
date is chosen, the subsidiary account may be authorized for usage
until the termination of the new expiration date. Contrarily, where
the sponsor 104 elects not to establish a new expiration date, the
funds remaining in the subsidiary account may be returned to the
sponsor 104. The funds may be returned electronically, or via
traditional postal methods, and may be returned in the currency of
the country in which the financial institution system 130, the
sponsor 104 or the subsidiary is located. It should be noted that
the parent 104 may wish to close the account prior to the
expiration date. In such a case, the sponsor 104 notifies the
server 114 of its intent to close. Upon closing the subsidiary
account, the server 114 may forward any remaining funds to the
sponsor 104. Alternatively, the funds may be returned to the
subsidiary. The decision on who receives the funds upon closing the
subsidiary account may be made by the sponsor 104 or the foreign
financial institution system 130 when opening the subsidiary
account.
[0073] The transaction request provided by merchant server 112 to
financial institution 130 may include a request for a reporting of
subsidiary account activity (e.g., balance, record of transaction
request, record of transaction request satisfied, etc.). In this
instance, financial institution server 114 may be provided the
transaction request directly, or via an acquirer (step 224). To
honor the transaction reporting request, the financial server 114
may seek to match the subsidiary account number to one of the
distinct database locations storing subsidiary account information.
In particular, the server 114 may determine whether the account
number may be matched on the database 116, retrieve the
corresponding matching information stored on the database 116 and
provide the requested information to the customer interface 102 via
the network 106 and merchant system 120.
[0074] In the foregoing specification, the invention has been
described with reference to specific embodiments. However, it will
be appreciated that various modifications and changes can be made
without departing from the scope of the present invention as set
forth in the claims below. For example, various processing steps
may be combined or eliminated as required, such as for example,
permitting the foreign financial institution server 114 to
establish a subsidiary account prior to receiving a BIN, or
providing a transaction settlement request directly to the foreign
financial institution 114, without the use of an acquirer 126.
Further, various system elements described herein may be
eliminated, and various steps may be performed by one or more of
the elements described herein, such as for example, permitting the
subsidiary to communicate directly with a merchant system 120
independently of a POS device 122. In addition, other suitable
elements may be substituted for the elements described herein, or
inserted between the connecting lines of the embodiments set forth,
without departing from the scope of this invention. Further still,
the specification and figures are to be regarded in an illustrative
manner, rather than a restrictive one. As such, any modifications
resulting in a system which is suitable for practicing the
invention, are intended to be included within the scope of the
invention. Accordingly, the scope of the invention should be
determined by the appended claims and their legal equivalents,
rather than by the examples given above. For example, the steps
recited in any of the method or process claims may be executed in
any order and are not limited to the order presented in the claims
(e.g., validating available funds prior to verifying the subsidiary
card expiration date, etc.).
[0075] FIG. 3 illustrates the interactions of an exemplary system
configured to administer a flexible limit subsidiary card account.
In accordance with an exemplary embodiment, the system 300
facilitates interaction between a parent 310, a subsidiary 350 and
a merchant 370 through an administrator 330. Parent 310 is
responsible for a parent account 315, and is configured to
communicate a request 312 to administrator 330 requesting that a
subsidiary card account 332 be established for subsidiary 350.
Administrator 330 is configured to receive request 312 from parent
310 and to facilitate the establishment and administration of a
subsidiary card account 332 so that it may be used by subsidiary
350 to facilitate transactions.
[0076] In an exemplary embodiment, the system of the present
invention enables parent 310 to provide one or more subsidiary
account 332, each being related to the parent account 315. In other
words, subsidiary card account 332 may comprise one or more
accounts that may each be linked to the parent account 315. It
should also be noted that parent account 315 may represent one or
more accounts sharing responsibility for subsidiary card account
332. Similarly, subsidiary 350 may comprise a corresponding number
of subsidiaries, each being the beneficiary of one or more
subsidiary card account 332. Accordingly, the system of the present
invention may enable a corporation to provide for many employees
and similarly may enable a guardian to provide for many
dependents.
[0077] In an exemplary embodiment, the flexible limit subsidiary
card account system 300 is implemented as computer software modules
loaded onto the computer of parent 310, the computer of
administrator 330, the computer of subsidiary 350, and/or the
computer of a merchant 370. In an exemplary embodiment, the
computer of parent 310, the computer of subsidiary 350, and the
computer of merchant 370 do not require any additional software
(beyond what is required to accomplish traditional on-line
transactions) to participate in the online transactions supported
by the flexible limit subsidiary card account system 300. The
additional facilitating software is implemented on the computer of
administrator 330.
[0078] The system 300 may include a host server or other computing
systems including a processor for processing digital data, a memory
coupled to said processor for storing digital data, an input
digitizer coupled to the processor for inputting digital data, an
application program stored in said memory and accessible by said
processor for directing processing of digital data by said
processor, a display coupled to the processor and memory for
displaying information derived from digital data processed by said
processor and a plurality of databases, said databases including
data regarding the parent account 315, subsidiary 350 data,
merchant 370 data, financial institution data and/or like data that
could be used in association with the present invention. As those
skilled in the art will appreciate, the computer of parent 310 and
subsidiary computer will typically include an operating system
(e.g., Windows NT, 95/98/2000, Linux, Solaris, etc.) as well as
various conventional support software and drivers typically
associated with computers. The invention, however, could also be
used in conjunction with any type of personal computer, network
computer, workstation, minicomputer, mainframe, or the like running
any operating system such as any version of Windows, Windows NT,
Windows2000, Windows 98, Windows 95, MacOS, OS/2, BeOS, Linux,
UNIX, Solaris or the like. Moreover, although the invention may be
implemented with TCP/IP communications protocols, it will be
readily understood that the invention could also be implemented
using IPX, Appletalk, IP-6, NetBIOS, OSI or any number of existing
or future protocols. The system contemplates the use, sale or
distribution of any goods, services or information over any network
having similar functionality described herein. Computers can be in
a home or business environment with access to a network. In an
exemplary embodiment, access is through the Internet through a
commercially-available web-browser software package.
[0079] Database may be any type of database, such as relational,
hierarchical, object-oriented, and/or the like. Common database
products that may be used to implement the databases include DB2 by
IBM (White Plains, N.Y.), any of the database products available
from Oracle Corporation (Redwood Shores, Calif.), Microsoft Access
by Microsoft Corporation (Redmond, Wash.), or any other database
product. Database may be organized in any suitable manner,
including as data tables or lookup tables. Association of certain
data may be accomplished through any data association technique
known and practiced in the art. For example, the association may be
accomplished either manually or automatically. Automatic
association techniques may include, for example, a database search,
a database merge, GREP, AGREP, SQL, and/or the like. The
association step may be accomplished by a database merge function,
for example, using a "key field" in each of the manufacturer and
retailer data tables. A "key field" partitions the database
according to the high-level class of objects defined by the key
field. For example, a certain class may be designated as a key
field in both the first data table and the second data table, and
the two data tables may then be merged on the basis of the class
data in the key field. In this embodiment, the data corresponding
to the key field in each of the merged data tables is preferably
the same. However, data tables having similar, though not
identical, data in the key fields may also be merged by using
AGREP, for example.
[0080] Communication between the parties and the system of the
present invention is accomplished through any suitable
communication means, such as, for example, a telephone network,
Intranet, Internet, point of interaction device (point of sale
device, personal digital assistant, cellular phone, kiosk, etc.),
online communications, off-line communications, wireless
communications, and/or the like. One skilled in the art will also
appreciate that, for security reasons, any databases, systems, or
components of the present invention may consist of any combination
of databases or components at a single location or at multiple
locations, wherein each database or system includes any of various
suitable security features, such as firewalls, access codes,
encryption, de-encryption, compression, decompression, and/or the
like.
[0081] To simplify the description of the invention herein, various
embodiments of the invention is may be described as pertaining to a
system facilitating communication between a domestic merchant
system (or ATM) and a foreign financial institution card issuer
using a computer network. It should be appreciated that the
computing units may be connected with each other via a data
communication network. The network may be a public network and
assumed to be insecure and open to eavesdroppers. For example, the
network may be embodied as the internet. In this context, the
computers may or may not be connected to the internet at all times.
For instance, the computer of the parent 310 and/or the computer of
subsidiary 350 may employ a modem to occasionally connect to the
internet, whereas administrator 330 or bank computing center might
maintain a permanent connection to the internet. Specific
information related to the protocols, standards, and application
software utilized in connection with the Internet may not be
discussed herein. For further information regarding such details,
see, for example, Dilip Naik, Internet Standards and Protocols
(1998); Java 2 Complete, various authors, (Sybex 1999); Deborah Ray
and Eric Ray, Mastering HTML 4.0 (1997). Loshin, TCP/IP Clearly
Explained (1997). All of these texts are hereby incorporated by
reference.
[0082] As a further example, the computer of parent 310, the
computer of subsidiary 350, the computer of administrator 330, and
the computer of merchant 370 may all be interconnected via a
network, referred to as a transaction network. The transaction
network represents existing proprietary networks that presently
accommodate on-line transactions for credit cards, debit cards, and
other types of financial/banking cards. The payment network is a
closed network that is assumed to be secure from eavesdroppers.
Examples of the payment network include the American Express.RTM.,
VisaNet.RTM. and the Veriphone.RTM. network.
[0083] One skilled in the art will appreciate that the network may
include any system for exchanging data or transacting business,
such as the Internet, an intranet, an extranet, WAN, LAN, satellite
communications, and/or the like. It is noted that the network may
be implemented as other types of networks, such as an interactive
television (ITV) network. The users may interact with the system
via any input device such as a keyboard, mouse, kiosk, personal
digital assistant, handheld computer (e.g., Palm Pilot.RTM.),
cellular phone and/or the like.
[0084] The systems may be suitably coupled to network via data
links. A variety of conventional communications media and protocols
may be used for data links. Such as, for example, a connection to
an Internet Service Provider (ISP) over the local loop as is
typically used in connection with standard modem communication,
cable modem, Dish networks, ISDN, Digital Subscriber Line (DSL), or
various wireless communication methods. Merchant 370 system might
also reside within a local area network (LAN) which interfaces to
network via a leased line (T1, D3, etc.). Such communication
methods are well known in the art, and are covered in a variety of
standard texts. See, e.g., Gilbert Held, Understanding Data
Communications (1996), hereby incorporated by reference.
[0085] In on-line implementations of the instant invention, each
participant is equipped with a computing system. Parent 310 may be
equipped with a computing unit in the form of a personal computer,
although other types of computing units may be used including
laptops, notebooks, hand held computers, set-top boxes, and the
like. Administrator 330 may be equipped with a computing unit such
as a computer-server, although other implementations are possible.
Subsidiary 350 and merchant 370 each may be implemented as a
computer, which may be a main frame computer or which may be
implemented in other forms, such as mini-computers, PC servers, a
network set of computers, and the like.
[0086] The computer may provide a suitable website or other
Internet-based graphical user interface which is accessible by
users. In one embodiment, the Internet Information Server,
Microsoft Transaction Server, and Microsoft SQL Server, are used in
conjunction with the Microsoft operating system, Microsoft NT web
server software, a Microsoft SQL database system, and a Microsoft
Commerce Server. Additionally, components such as Access Sequel
Server, Oracle, MySQL, Intervase, etc., may be used to provide an
ADO-compliant database management system. The term "webpage" as it
is used herein is not meant to limit the type of documents and
applications that might be used to interact with the user. For
example, a typical website might include, in addition to standard
HTML documents, various forms, Java applets, Javascript, active
server pages (ASP), common gateway interface scripts (CGI),
extensible markup language (XML), dynamic HTML, cascading style
sheets (CSS), helper applications, plug-ins, and the like.
[0087] In an exemplary embodiment, the system of the present
invention facilitates administration of a subsidiary card account
332 so that it may function with many of the features and
characteristics of traditional credit cards. For example,
subsidiary card account 332 may be configured to be used at an ATM
or at a point of sale and can also be configured to provide
security and protection through traditional insurance features.
Moreover, subsidiary card account 332 may be configured to satisfy
most if not all standard credit card requirements such as embossing
of the identifying information (e.g., name, account number,
expiration date, signature, and the like) of parent 310 and
subsidiary 350.
[0088] In addition, the flexible limit subsidiary card account
system can accommodate the requirements of the underlying dependent
financial instruments. If there are usage restrictions or
limitations in place for the parent account 315, those same
controls (if known) may be enforced by flexible limit subsidiary
card account 332. For example, if subsidiary card account 332 is to
be restricted to use at only restricted merchants 370, then the
system will disable subsidiary card account 332 from being used at
any non-approved merchant 370.
[0089] Similarly, a subsidiary card account may be configured to
accommodate emergency conditions such as an emergency needs for
medical care, pharmaceuticals, transportation, or the like.
Accordingly, subsidiary card account may be configured to bear an
extended spending capacity available for use at specific merchants
(e.g., a specified hospital, pharmacy, or travel agent) or
specified classes of merchants (e.g., medical service providers,
pharmacies, or travel agencies in general). Optionally, a
subsidiary card may be configured to accommodate anticipated
expenditures that may occur only periodically, such as tuition or
rent payments. In accordance with this embodiment, spending
capacity may be reserved to accommodate payment for the anticipated
expenditures even if spending capacity for other expenditures
(e.g., entertainment) may have been exhausted.
[0090] The limitations or restrictions may be communicated to a
host via any network, email, webpage, voice response unit or
customer service line via customer service representatives. The
limitations or restrictions may also be transmitted, directly or
indirectly, to the host via one or more of a telephone, a
touch-tone telephone, a two-way pager, a reply pager, a home
computer, a personal computer, a personal communication device, a
personal communication services device, a digital communications
device, a television, an interactive television, a digital
television, a personal digital assistant, a display telephone, a
video telephone, a watch, a cellular telephone, a wireless
telephone, a mobile telephone, a display cellular telephone, and a
facsimile machine.
[0091] The limits or restrictions may include, for example, charge
amount per charge, charge amount per day, charge amount during any
time period, charge amount at a particular merchant, charge amount
at a particular chain of merchants, charge amount at a type of
industry, increasing or decreasing charge amount limits over time,
limit on number of transactions during any time period and/or any
combination thereof. The limitations may also include, for example,
any one or more of type of authorized transaction, one of a good
and a service authorized, authorized one of vendor, store, and
service provider, transaction amount limitation, daily spending
limit, authorized geographical area of usage, authorized time of
usage, authorized individual, transaction limit for one of a
savings account, a checking account, a bank account, and an
automated teller machine account, authorized individual for
transacting on a savings account, a checking account, a bank
account, and an automated teller machine account, proof of identity
required for transaction, one of bank and financial institution
authorized for the transaction, a limitation of a fee charge on an
account, automated teller machine account access code, authorized
transaction location, authorized telephone number, authorized
telephone calling time, authorized telephone calling area,
authorized telephone calling destination, authorized number of
telephone calls, authorized incoming telephone call, authorized
telephone call duration, and authorized telephone call one of cost
and transaction amount.
[0092] With further reference to FIG. 3, administrator 330 is
configured to facilitate determination and adjustment of
appropriate spending powers for the parent account 315 and
subsidiary card account 332 in accordance with a predetermined set
of rules. An exemplary set of rules configured to accommodate the
provision of a credit line to a subsidiary 350 may require an
allocation of risk between administrator 330 and parent 310 whereby
the spending power of the parent account 315 is reduced by an
amount that is less than the spending capacity or credit line
established for related subsidiary card account 332, in accordance
with, and reflecting, an allocation of risk accepted by
administrator 330. Similarly, the system 300 may include a similar
set of rules and be configured to accommodate a reduction in an
existing spending capacity that previously had been provided to a
subsidiary 350. For example, the spending power of the parent
account 315 may be increased by an amount that is less than the
reduction in the spending capacity for the related subsidiary card
account 332.
[0093] It should also be noted, however, that specific embodiments
of the invention may be configured to accommodate local customs
and/or practices or to accord with applicable legal requirements.
The details of how the spending capacity of the parent card is
consumed as the spending capacity of each subsidiary card is
increased and/or consumed will depend, of course, on regulatory and
practical considerations applicable wherever and however the cards
are used and their functions facilitated. In addition, the
administrator may be configured to allocate payment liability to
lie entirely with the holder of the parent card so as to eliminate
the risk of uncollectability associated with subsidiary cards in
situation such as where the subsidiary card is held by a minor or
otherwise not legally responsible party. The details of how the
responsibility and or liability for spending capacity consumed by
the subsidiary card may be determined to satisfy various regulatory
and/or practical considerations applicable wherever and however the
cards are used and their functions facilitated. For example, it may
be desirable to avoid legal collectibility risk associated with
debts held by minors and to avoid any regulatory issues in
countries that restrict the issuance of credit cards to minors.
[0094] As discussed herein, an administrator 330 may issue a
subsidiary card account 332 that bears its own spending capacity,
i.e., a subsidiary spending capacity, and that is linked to a
parent account 315. As described herein, the system of the present
invention enables parent 310 to define and change the spending
capacities (e.g., credit limits or other mechanisms for approving
or denying an individual transaction) for each subsidiary card
account 332 or to cancel one or more subsidiary card account 332
altogether. To accommodate the access of subsidiary card account
332 to the subsidiary spending capacity, the original spending
power of a parent account 315 is reduced to a modified parent
spending power. The difference between the original parent spending
power and the modified parent spending power, however, may be less
than the subsidiary spending capacity in cases where some of the
risk associated with subsidiary card account 332 is assumed by
administrator 330. In other words, the sum of the modified parent
spending power and the subsidiary spending capacity may be greater
than the original parent spending power, the difference being equal
to the risk assumed by administrator 330. For example, an original
spending power of a parent account 315 set at $9500 may be reduced
to $9000 when an administrator 330 issues a subsidiary card account
332 linked to the parent account 315, but the subsidiary card
account 332 will have a spending capacity of $1000. In this case,
the original spending power of the parent account 315 is decreased
by $500 while administrator 330 assumes $500 of risk. Thus, the
total spending power for the parent account 315 and the subsidiary
card account 332 increases from $9500 to $10000.
[0095] It should be noted that the invention contemplates that
there may be one or more parent card representing the parent and
associated with which there may also be one or more subsidiary
card. It should also be noted that each subsidiary card may have
associated with it one or more monthly spending limit, whereby a
spending limit associated with first subsidiary card may be
different from a spending limit associated with a second subsidiary
card even though both subsidiary card accounts are associated with
the same parent.
[0096] In an exemplary embodiment, a spending capacity may be
prescribed in terms of one or more currency (e.g., an amount in
U.S. dollars, an amount in Japanese yen) and may also be prescribed
as a minimum or maximum of amounts described in terms of two or
more currencies. For example, in an exemplary embodiment, a
spending capacity is described as an amount in Japanese yen so long
as that amount is greater than an amount in U.S. dollars. In
another exemplary embodiment, a spending capacity is described as
an amount in Japanese yen so long as that amount does not exceed an
amount in U.S. dollars.
[0097] In an exemplary embodiment, a spending capacity may be
variable and may be determined according to one or more factors.
Exemplary factors may include, one or more currency exchange rates,
an age of a subsidiary card holder, a standard cost of living
indicator (e.g., consumer price index), the current date, the
length of time elapsed from a predetermined date, or the like. In
accordance with this embodiment, a spending capacity may be
determined, and subsequently re-determined, so as to provide a
fixed spending capacity (e.g., $500 per month) in terms of a first
currency (e.g., U.S. dollars) for a first period of time (e.g.,
until the subsidiary card holder's 18th birthday) and then modified
so as to provide a revised spending capacity (e.g., 100,000 per
month) in terms of a second currency (e.g., Japanese yen) for a
second period of time (e.g., three months). Accordingly, a
subsidiary card may be preconfigured to accommodate the spending of
a subsidiary as the subsidiaries spending needs change (e.g., as a
minor dependent, as a dependent or employee traveling abroad, as a
college student, as an heir).
[0098] In addition, where anticipated future expenditures (e.g.,
tuition) are defined in terms of a first currency (e.g., British
pounds) a spending capacity of a subsidiary card may be provided so
as to accommodate the anticipated expenditures even though the
parent card from which the spending capacity is acquired may be
depleted in terms of a second currency (e.g., U.S. dollars). Put
another way, the system may optionally be configured to provide the
ability for parent to eliminate risks associated with fluctuations
in currency exchange rates by committing to fixed automatic
long-term charges at a fixed foreign exchange rate for a fixed
term. In addition, the system and method of the instant invention
may provide the ability to fix the currency exchange rate so as to
eliminate, from the perspective of the holder of the parent card,
any risk associated with fluctuations in currency exchange rates
while, for example, a subsidiary is consuming spending capacity in
a currency that is different from the currency used by the holder
of the parent card to provide the spending capacity to the
subsidiary. For example, the system and method of the instant
invention may accommodate a child studying in the U.S. for first
time period of 12 months while the parent may budget with the
knowledge that in each of the next 12 months, in order to provide
$1000 for his child, his card will be billed a fixed amount each
month (e.g., where the exchange rate is fixed at a negotiated 120
yen/$, the parent card in Japan may be debited exactly Yen 120,000
each month. Accordingly, the risk that the exchange rate will
fluctuate (e.g., rise) may be transferred to the issuer.
[0099] In an exemplary embodiment, a spending capacity of parent
card account may be periodically decreased by a predetermined
amount while the spending capacity of the subsidiary card account
is increased by a substantially equivalent amount, such that the
subsidiary card account functions substantially as a pre-paid card
account. Alternatively, the spending capacity of parent card
account may be periodically decreased by an amount substantially
equivalent to the spending capacity consumed by the subsidiary card
account, such that the subsidiary card account functions as a
credit card linked to the parent card account.
[0100] With further reference to FIG. 3, an exemplary administrator
330 may be configured to establish more than one subsidiary card
account 332 at the request of parent 310, and each subsidiary card
account 332 may bear a different credit line than either the parent
account 315 or any other subsidiary card account 332. In addition,
an exemplary administrator may receive, and facilitate execution
of, a request from parent 310 to define, modify, and/or terminate
the spending capacity and/or debt accumulation limit for subsidiary
card account 332 (e.g., $500.00 spending capacity for a first
subsidiary card account 332, $800.00 spending capacity for a second
subsidiary card account 332, and $250.00 spending capacity for a
third subsidiary card account 332) and/or modified by parent
310.
[0101] In accordance with an exemplary embodiment, the system may
also be configured to prevent carry-over of credit from one month
to the next. In accordance with this embodiment, transactions
facilitated by subsidiary card account 332 are permitted until a
pre-set spending capacity has been consumed. For example, in an
exemplary embodiment, administrator 330 tracks the transactions
facilitated by the subsidiary card account 332 to maintain a
current account status. Whenever authorization for a particular
transaction is requested of the administrator 330, the
administrator 330 compares the status that would exist if the
transaction were authorized and completed against the permissible
status based upon a predetermined set of criteria (e.g., credit
line, spending capacity, payment status, creditworthiness). Thus,
when the transactions facilitated by a subsidiary card account 332
have reached the spending capacity, or would cause the spending
capacity to be exceeded within the predetermined time period, or
otherwise violate the predetermined set of criteria, no more
charges will be authorized. In accordance with this embodiment, at
each cycle cut, available credit is re-set to the pre-defined
spending capacity. Thus, in accordance with this embodiment, unused
spending capacity from one cycle cannot be used during the
following cycle. In the event that the card is configured to
accommodate emergency transactions as described herein, however,
emergency transactions may be permitted without consuming spending
capacity.
[0102] Alternatively, the system may be configured to permit
carry-over and accumulation of spending capacity from one month to
the next. In this embodiment, at the beginning of each cycle cut,
additional spending capacity may be added to subsidiary card
account 332. In accordance with this embodiment, unused spending
capacity from one cycle can be used in subsequent cycles and may be
accumulated. In the event that carry over capacity is permitted,
the carry over risk is allocated between the parent 310 and the
administrator 330 in accordance with a predetermined set of
criteria as described above. In accordance with this embodiment,
interest may be credited for unused spending capacity.
[0103] With respect to applications and account settling,
administrator 330 may require both parent 310 and prospective
subsidiary 350 to apply for the subsidiary card account 332.
Administrator 330 may require information regarding parent 310 to
assess qualification for the subsidiary card account 332 (credit
history, salary, etc.). Administrator 330 may also require
information regarding subsidiary 350 to qualify for a minimum age
requirement, to provide information to be embossed on the card, and
to provide identification information (e.g., social security
number, mother's maiden name, etc.). In addition, administrator 330
may define a maximum pre-set spending capacity, limit, or budget
based upon an assessment of the parent's 310 creditworthiness, and
subject to a predetermined maximum amount.
[0104] It should be noted that the system 300 may at times require
acquisition or verification of the identity of parent 310 or
subsidiary 350. Administrator 330 may accomplish the process of
obtaining and/or verifying the identity of parent 310 or subsidiary
350 through a variety of means that are known in the art including,
but not limited to, use of private databases, credit bureau
databases, transmission of biometric data, transmission of
"hand-shake" data (i.e., smart card signature, challenge/response,
etc) and/or the like. Examples of online authentication are
disclosed in U.S. Ser. No. 09/952,490 "Microchip-Enabled Online
Transaction System", filed Sep. 12, 2001, with inventors Anant
Nambiar and Geoffrey Stern, which is hereby incorporated by
reference. Thus, the authentication information is collected for
the purpose of establishing the subsidiary card account 332 and
defining its ownership. It should be noted that, although the
instant invention may be embodied as a microchip enabled device, it
may also be configured as a virtual and not a physical (e.g.,
plastic) account, which may not accommodate a microchip.
[0105] In accordance with the present invention, an exemplary
system is configured to facilitate communication between parent
310, a subsidiary 350, and an administrator 330 regarding the
status (e.g., transactions, accrued interest, balances, available
credit, payments, billings, etc.) of subsidiary account 332 and a
parent account 315. In accordance with an exemplary embodiment,
administrator 330 may communicate statements or transaction reports
to both parent 310 and subsidiary 350. Accordingly, subsidiary 350
may monitor transactions and dispute charges if necessary. In
addition, administrator 330 may enable parent 310 to monitor the
amount of spending capacity consumed by subsidiary 350. As
discussed herein, the levels of detail provided in such statements
334 may be configured by parent 310, subsidiary 350, or both. For
example, in an exemplary embodiment, parent 310 could switch off or
on the receipt of the spending details of the various subsidiary
accounts. This may be useful, for example, in a case where a parent
has two subsidiary accounts, one for each of two children, e.g.,
one for a junior high school son, for whom this card is a financial
management learning tool, and another for a 24 year old daughter,
studying as a graduate student in the United States. In such a
case, the parent may want the ability to review the younger boy's
spending, but may want to forgo that level of detail for the
daughter, since the purpose of the card in her case is simply to
provide access to funds, rather than to monitor spending.
[0106] Further, whenever parent 310 has modified the spending
capacity of subsidiary card account 332, administrator 330 may be
configured to notify subsidiary 350 through subsidiary statement
336. Based upon the parent statement 334, parent 310 may remit
payment 314 to administrator 330, or a designee of administrator
330.
[0107] Accordingly, an exemplary administrator 330 is configured to
generate a parent account statement 334 for the parent account 315.
In addition, administrator 330 is configured to dispatch additional
statements 336 for each subsidiary card account 332 to each
designated subsidiary 350. The subsidiary account statements 336
may be dispatched to individual designated addresses such as the
separate addresses of the individual subsidiaries 350. Moreover,
administrator 330 is configured to charge, i.e., adjust, the parent
account 315 spending power based on the spending capacity advanced
to and consumed by each of the subsidiaries 350. In an exemplary
embodiment, the statement 334 provided to parent 310 regarding the
activity of each subsidiary 350 is limited to the aggregate sum
owed. Alternatively, the statements 334 may include additional
information regarding the activities of each subsidiary 350 may be
provided depending upon the wishes of parent 310 and/or each
subsidiary 350. Administrator 330 may provide various levels of
control to parent 310 and/or various levels of independence and
privacy to subsidiary 350 through this mechanism. Finally,
administrator 330 is configured to manage and track the balances of
each parent account 315 and each subsidiary card account 332 in
accordance with the activities transacted using each account (e.g.,
purchases, cash advances, interest accrued, payments made, credit
limits modified, spending capacities, etc.).
[0108] FIG. 4 illustrates an exemplary administrator 330 configured
to administer a flexible limit subsidiary card account 332. In
accordance with this embodiment, administrator 330 is configured to
facilitate communication between parent 310, a subsidiary 350, and
a merchant 370 regarding the status (e.g., transactions, accrued
interest, balances, available credit, payments, billings, etc.) of
subsidiary account 332 and a parent account 315. In accordance with
this embodiment, administrator 330 comprises an account
administrator 430, a transaction administrator 440, a settler 450,
and a statement generator 460.
[0109] In an exemplary embodiment, account administrator 430 is
configured to receive a request from parent 310 and to facilitate
the establishment, issuance and administration of one or more
subsidiary card account 332 so that it may be used by the
subsidiary 350 to facilitate transactions. In addition, account
administrator 430 is configured to facilitate determination and
adjustment of appropriate spending powers for the parent account
315 and the subsidiary card account 332 in accordance with a
predetermined set of rules. Accordingly, account administrator 430
is configured to receive and facilitate execution of a request from
a parent 310 to define, modify, and/or terminate the spending
and/or debt accumulation limits for the subsidiary card account 332
and to charge, i.e., adjust, the parent account 315 spending power
based on the credit advanced to and consumed by each of the
subsidiaries 350. Further, account administrator 430 is configured
to manage and track the balances of each parent account 315 and
each subsidiary card account 332 in accordance with the activities
transacted using each account (e.g., purchases, cash advances,
interest accrued, payments made, credit limits modified, spending
capacities, etc.). In the event parent 310 fails to remit payment
as promised, account administrator 430 is configured to place a
hold on subsidiary card account 332.
[0110] In an exemplary embodiment, transaction administrator 440 is
configured to facilitate transactions until a pre-set spending
capacity has been consumed. Accordingly, transaction administrator
440 is configured to limit total spending. In addition, transaction
administrator 440 may be configured to limit spending for specific
classes of goods and/or services, to limit spending at specific
classes of merchants or service providers, or to limit spending at
specifically identified merchants or service providers. Moreover,
where specific restrictions exist to condition the use of the
parent account 315, the transaction administrator may be configured
to enforce those restrictions against any associated subsidiary
card account 332. Finally, transaction administrator 440 may be
configured to accommodate emergency transactions in accordance with
predefined criteria, e.g., specific medical service providers or
pharmacies.
[0111] In an exemplary embodiment, settler 450 is configured to
provide a settling payment to merchant 370. In addition, settler
450 is configured to arbitrate disputed transactions associated
with subsidiary card account 332 directly with subsidiary 350 and
merchant 370.
[0112] In an exemplary embodiment, statement generator 460 is
configured to generate a parent account statement 334 for the
parent account 315 and to dispatch additional statements 336 for
each subsidiary card account 332 to each designated subsidiary
350.
[0113] It should be noted that the system of the instant invention
may also incorporate features to facilitate additional security
benefits. While these features may take many forms that may be
appreciated by one of ordinary skill in the art, an exemplary
system includes a card replacer that may be activated to replace a
parent card or a subsidiary card. In addition, a customer service
engine may be configured to receive a message from a parent or a
subsidiary through any means known in the art, such as a telephone
call or an e-mail message or another message transmitted, for
example, through the interne. Customer service engine may also be
configured to verify the identity of the message sender, e.g., a
parent or a subsidiary, to verify the authority of the message
sender to request a service, i.e., emergency card replacement, and
to determine the appropriate responsive action, such as requesting
that the card replacer send the requester a replacement card. As a
result, additional security benefits are realized by the
consumer.
[0114] FIG. 5 illustrates an exemplary process for administering a
flexible limit subsidiary card account 332. In accordance with this
embodiment, a parent 310 submits a request 312, via facsimile,
telephone, internet or any other means known in the art, for a
subsidiary card account 332 to an agent, delegate, or affiliate of
the administrator (step 510). The request 312 may include
information sufficient to identify and verify the identity of the
parent 310 and the subsidiary 350 (e.g., name, address, social
security number, mother's maiden name, telephone number). The
request 312 may also include information necessary to configure a
subsidiary card account 332 such as desired spending capacity,
credit line, restricted merchants 370 or classes of merchants,
emergency enabled merchants or classes of merchants for whom the
spending capacity may be extended or waived, and whether carry-over
is enabled. In response, administrator 330 may approve or refuse
the request based upon a predetermined set of criteria such as
credit worthiness or payment history of the parent 310 (step 512).
If administrator 330 approves the request 312, administrator 330
establishes subsidiary card account 332 and a subsidiary spending
capacity (step 514). The subsidiary card account 332 and the parent
account 315 are linked in that the parent account 315 remains
responsible for transactions facilitated by the subsidiary card
account 332 and in that the parent 310 may access account and
transaction information related to the subsidiary card account 332.
To accommodate the provision of credit to subsidiary 350,
administrator 330 decreases the spending power of the parent
account 315 in accordance with a predetermined set of rules, for
example, by an amount less than the amount of credit provided to
subsidiary 350 (step 516). Accordingly, administrator 330 accepts
some risk for the extension of credit to subsidiary 350. In the
event of non-payment for transactions facilitated by the subsidiary
card account, a hold may be placed upon both the parent account 315
and the subsidiary card account 332. Ultimately, the parent 310 is
responsible for all transactions facilitated by the subsidiary card
account. Finally, administrator 330 dispatches tangible indicia of
subsidiary card account 332, such as a plastic card, to subsidiary
350 (step 520).
[0115] If approved, the system issues a card to subsidiary 350 as
well as a PIN number or other system and method for verifying the
identity of, i.e., authenticating, the user at, for example, an
ATM. Upon receipt of the card, before use, the system may require
the card member to activate subsidiary card account 332 (e.g., sign
the card and/or place a telephone call to a predetermined number).
Once subsidiary card account 332 has been activated, subsidiary 350
may use the card account 332 throughout the cycle period to
facilitate on-line and off-line transactions at permissible
merchants 370 or to conduct withdrawals of cash at ATMs until the
pre-set spending capacity has been reached.
[0116] Upon establishment of the subsidiary card account 332,
subsidiary 350 may use the subsidiary card account 332 to
facilitate purchases of goods and/or services 372 or may access
ATMs for cash (step 530) using known in the art systems and
methods. After subsidiary 350 uses the subsidiary card account 332,
administrator 330 provides a settling payment 338 to merchant 370
using any appropriate settlement procedures known in the art (step
532). In addition, administrator 330 prepares and issues a
statement to parent 310 reflecting the activity of subsidiary 350
using the subsidiary card account 332 (step 534). In an exemplary
embodiment, a typical statement generator and printer are utilized
to produce a consolidated statement containing account and
transaction data for both the parent account 315 and the subsidiary
card account 332. Finally, administrator 330 prepares and issues a
statement to subsidiary 350 reflecting the activity on the
subsidiary card account 332 for that cycle (step 536).
[0117] In the beginning of cycle, the parent account 315 is debited
with the monthly budget allocated to the subsidiary card account
332, and the subsidiary card account 332 is credited with a
corresponding value. Card account 332 usage is then permitted
during the cycle up to the spending capacity to facilitate
subsidiary transactions such as spending at a merchant 370 or a
withdrawal of cash at an ATM.
[0118] At the end of the cycle, the issuer provides a statement to
parent 310. The statement includes the spending capacity (a.k.a.
budget) that was allocated to subsidiary 350 at the beginning of
the cycle. Changes to the spending capacity are accomplished where,
first, parent 310 desired to effect a change, second, communicates
a request to the issuer (e.g., via telephone or on-line), third,
the issuer approves the request, and fourth, implements the
change.
[0119] At cycle cut, the system provides a billing statement
reflecting the charges made by subsidiary 350 to parent 310, either
in a consolidated form with the statement for the parent account
315 or as a stand alone statement. Also, the system updates the
spending capacity in accordance with the agreement with parent 310
(e.g., reflecting carry-over designations, charges made, payments
made, interest accrued, adjustments to the spending capacity, and
the like).
[0120] Once one or more subsidiary card account 332 has been
established, the charges for each subsidiary card account 332 may
be billed, for example, on a periodic (e.g., monthly) basis to, for
example, the parent account 315 or a company's account or a
predetermined bank account for direct payment. Parent 310 may pay
the charges on the subsidiary card account 332 on a periodic (e.g.,
monthly) basis through any available funding vehicle (e.g., credit
card, debit card, bank account, cash) or any combination
thereof.
[0121] The system may also be configured to allow parent 310 to
modify the spending capacities of the subsidiary card account 332
or to cancel subsidiary card account 332 altogether. In the event
that parent 310 wishes to modify the spending capacity of
subsidiary card account 332, parent 310 may communicate a request
to administrator 330 via facsimile, internet, telephone or other
method known in the art (step 540). Once administrator 330 has
received the request, administrator 330 may then modify the
spending capacity of subsidiary card account 332 in accordance with
a predetermined allocation of risk (step 542), and may notify
subsidiary 350 of the modification (step 544) by facsimile,
telephone, internet, e-mail, courier, standard mail or other means
known in the art.
[0122] In addition, the system is configured to enable parent 310
to modify the pre-set spending capacity upon the request of parent
310. In situations where parent 310 would like to change spending
capacities, or cancel card account 332, parent 310 communicates the
request to the administrator via telephone call to a predefined
telephone number or via on-line request. In response, administrator
330 approves the request and accomplishes the modification.
[0123] In accordance with an exemplary embodiment, the system
facilitates the application and card account 332 establishment
process. The system also tracks card account 332 usage and
payments, and tracks the outstanding balance relative to the
pre-set spending capacity. In accordance with this embodiment, the
application and card account 332 establishment process begins when
parent 310 and a potential subsidiary apply for a card account 332
by transmitting application information to an administrator. The
application information may include information identifying parent
310 (e.g., personal details regarding parent 310, account number of
parent account 315), information identifying subsidiary 350 (e.g.,
personal details regarding subsidiary 350), information defining
the desired characteristics of the subsidiary card account 332
(e.g., desired spending capacity, allowable carry-over from cycle
to cycle, limited or forbidden merchants 370, and the like), and
acceptance of terms (e.g., agreement of responsibility).
[0124] In the event that parent 310 elects to cancel the parent
account 315, administrator 330 will also cancel any subsidiary
account 332 linked to the cancelled account, unless parent 310
provides another form of security for the subsidiary account 332.
If the subsidiary account 332 has a positive balance at the time it
is cancelled, administrator 330 will refund the positive balance to
parent 310. Administrator 330 is also configured to accommodate
disputed transactions associated with subsidiary card account 332
directly with subsidiary 350. In the event parent 310 fails to
remit payment to administrator 330 as promised, administrator 330
is configured to place a hold on account 332.
[0125] The present invention may be described herein in terms of
functional block components, screen shots, optional selections and
various processing steps. It should be appreciated that such
functional blocks may be realized by any number of hardware and/or
software components configured to perform the specified functions.
For example, the present invention may employ various integrated
circuit components, e.g., memory elements, processing elements,
logic elements, look-up tables, and the like, which may carry out a
variety of functions under the control of one or more
microprocessors or other control devices. Similarly, the software
elements of the present invention may be implemented with any
programming or scripting language such as C, C++, Java, COBOL,
assembler, PERL, extensible markup language (XML), with the various
algorithms being implemented with any combination of data
structures, objects, processes, routines or other programming
elements. Further, it should be noted that the present invention
may employ any number of conventional techniques for data
transmission, signaling, data processing, network control, and the
like. Still further, the invention could be used to detect or
prevent security issues with a client-side scripting language, such
as JavaScript, VBScript or the like. For a basic introduction of
cryptography, please review a text written by Bruce Schneier, which
is entitled "Applied Cryptography: Protocols, Algorithms, And
Source Code In C," published by John Wiley & Sons (second
edition, 1996), which is hereby incorporated by reference.
[0126] Other systems that may be integrated with, or layered on,
the present invention include, for example, other loyalty systems,
transaction systems, electronic commerce systems and digital wallet
systems such as, for example, the Shop AMEX.TM. system as disclosed
in Ser. No. 60/230,190 filed Sep. 5, 2000; the MR as Currency.TM.
and Loyalty Rewards Systems disclosed in Ser. No. 09/834,478 filed
on Apr. 13, 2001; a Digital Wallet System disclosed in U.S. Ser.
No. 09/652,899 filed Aug. 31, 2000; a Stored Value Card as
disclosed in Ser. No. 09/241,188 filed on Feb. 1, 1999; a System
for Facilitating Transactions Using Secondary Transaction Numbers
disclosed in Ser. No. 09/800,461 filed on Mar. 7, 2001; Methods and
Apparatus for Conducting Electronic Transactions disclosed in Ser.
No. 60/232,040 filed Sep. 12, 2000, all of which are hereby
incorporated by reference. Other examples of online reward or
incentive systems are disclosed in U.S. Pat. No. 5,774,870, issued
on Jun. 30, 1998, and U.S. Pat. No. 6,009,412, issued on Dec. 29,
1999, both of which are hereby incorporated by reference.
Additional information relating to smart card and smart card reader
payment technology is disclosed in Ser. No. 60/232,040, filed on
Sep. 12, 2000, and U.S. Pat. Nos. 5,742,845; 5,898,838 and
5,905,908, owned by Datascape; which are hereby incorporated by
reference. Moreover, additional information related to online
privacy and anonymity systems may be found at www.PRIVADA.COM,
which is hereby incorporated by reference.
[0127] It should be appreciated that the particular implementations
shown and described herein are illustrative of the invention and
its best mode and are not intended to otherwise limit the scope of
the present invention in any way. Indeed, for the sake of brevity,
conventional data networking, application development and other
functional aspects of the systems (and components of the individual
operating components of the systems) may not be described in detail
herein. Furthermore, the connecting lines shown in the various
figures contained herein are intended to represent exemplary
functional relationships and/or physical couplings between the
various elements. It should be noted that many alternative or
additional functional relationships or physical connections may be
present in a practical electronic transaction system.
[0128] As will be appreciated by one of ordinary skill in the art,
the present invention may be embodied as a method, a data
processing system, a device for data processing, an integrated
circuit, and/or a computer program product. Accordingly, the
present invention may take the form of an entirely software
embodiment, an entirely hardware embodiment, or an embodiment
combining aspects of both software and hardware. Furthermore, the
present invention may take the form of a computer program product
on a computer-readable storage medium having computer-readable
program code means embodied in the storage medium. Any suitable
computer-readable storage medium may be utilized, including hard
disks, CD-ROM, optical storage devices, magnetic storage devices,
and/or the like.
[0129] The present invention is described herein with reference to
screen shots, block diagrams and flowchart illustrations of
methods, apparatus (e.g., systems), and computer program products
according to various aspects of the invention. It will be
understood that each functional block of the block diagrams and the
flowchart illustrations, and combinations of functional blocks in
the block diagrams and flowchart illustrations, respectively, can
be implemented by computer program instructions. These computer
program instructions may be loaded onto a general purpose computer,
special purpose computer, or other programmable data processing
apparatus to produce a machine, such that the instructions which
execute on the computer or other programmable data processing
apparatus create system and method for implementing the functions
specified in the flowchart block or blocks.
[0130] These computer program instructions may also be stored in a
computer-readable memory that can direct a computer or other
programmable data processing apparatus to function in a particular
manner, such that the instructions stored in the computer-readable
memory produce an article of manufacture including instruction
means which implement the function specified in the flowchart block
or blocks. The computer program instructions may also be loaded
onto a computer or other programmable data processing apparatus to
cause a series of operational steps to be performed on the computer
or other programmable apparatus to produce a computer-implemented
process such that the instructions which execute on the computer or
other programmable apparatus provide steps for implementing the
functions specified in the flowchart block or blocks.
[0131] Accordingly, functional blocks of the block diagrams and
flowchart illustrations support combinations of system and method
for performing the specified functions, combinations of steps for
performing the specified functions, and program instruction for
performing the specified functions. It will also be understood that
each functional block of the block diagrams and flowchart
illustrations, and combinations of functional blocks in the block
diagrams and flowchart illustrations, can be implemented by either
special purpose hardware-based computer systems which perform the
specified functions or steps, or suitable combinations of special
purpose hardware and computer instructions.
[0132] In the foregoing specification, the invention has been
described with reference to specific embodiments. However, it will
be appreciated that various modifications and changes can be made
without departing from the scope of the present invention. The
specification and figures are to be regarded in an illustrative
manner, rather than a restrictive one, and all such modifications
are intended to be included within the scope of present invention.
Accordingly, the scope of the invention should be determined by the
appended claims and their legal equivalents, rather than by the
examples given above. For example, the steps recited in any of the
method or process claims may be executed in any order and are not
limited to the order presented in the claims.
[0133] Benefits, other advantages, and solutions to problems have
been described above with regard to specific embodiments. However,
the benefits, advantages, solutions to problems, and any element(s)
that may cause any benefit, advantage, or solution to occur or
become more pronounced are not to be construed as critical,
required, or essential features or elements of any or all the
claims. As used herein, the terms "comprises", "comprising", or any
other variation thereof, are intended to cover a non-exclusive
inclusion, such that a process, method, article, or apparatus that
comprises a list of elements does not include only those elements
but may include other elements not expressly listed or inherent to
such process, method, article, or apparatus. Further, no element
described herein is required for the practice of the invention
unless expressly described as "essential" or "critical."
* * * * *
References