U.S. patent application number 13/349423 was filed with the patent office on 2012-05-10 for system, non-transitory memory with computer program, and associated methods for micro-credit to prepaid cards.
This patent application is currently assigned to Metabank. Invention is credited to Rebecca Ahlers, Andrew B. Crowe, Scott H. Galit, Trent Sorbe.
Application Number | 20120116960 13/349423 |
Document ID | / |
Family ID | 41135951 |
Filed Date | 2012-05-10 |
United States Patent
Application |
20120116960 |
Kind Code |
A1 |
Ahlers; Rebecca ; et
al. |
May 10, 2012 |
SYSTEM, NON-TRANSITORY MEMORY WITH COMPUTER PROGRAM, AND ASSOCIATED
METHODS FOR MICRO-CREDIT TO PREPAID CARDS
Abstract
A lending institution computer establishes a line of credit
coupled to a prepaid card account and makes available draws to the
line of credit line in an authorization stream for a proposed
purchase using the prepaid card account as payment. When the line
of credit is accessed, the prepaid card account is loaded with an
additional value of one or more predetermined loan increments so
that the prepaid card account then has a new amount totaling a
previous amount plus the amount of value of the one or more
preselected loan increments and so that the new amount exceeds or
equals the value of a proposed purchase. Next, a new value for a
line of credit balance available is determined, accounting for
value loaded onto the prepaid card account and a predetermined loan
advance fee for each loan increment loaded onto the prepaid card
account.
Inventors: |
Ahlers; Rebecca;
(Cincinnati, OH) ; Crowe; Andrew B.; (Omaha,
NE) ; Galit; Scott H.; (New York, NY) ; Sorbe;
Trent; (Brookings, SD) |
Assignee: |
Metabank
Sioux Falls
SD
|
Family ID: |
41135951 |
Appl. No.: |
13/349423 |
Filed: |
January 12, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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13233268 |
Sep 15, 2011 |
8103549 |
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13349423 |
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12417199 |
Apr 2, 2009 |
8065187 |
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13233268 |
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61042612 |
Apr 4, 2008 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 40/04 20130101;
G06Q 20/20 20130101; G06Q 20/204 20130101; G06Q 40/025 20130101;
G06Q 20/105 20130101; G06Q 40/02 20130101; G06Q 20/10 20130101;
G06Q 40/00 20130101; G06Q 20/102 20130101 |
Class at
Publication: |
705/39 |
International
Class: |
G06Q 40/02 20120101
G06Q040/02 |
Claims
1. A financial institution computer to allow one or more draws to a
line of credit coupled to one or more of a plurality of prepaid
card accounts, the financial institution computer comprising: one
or more processors; one or more input/output units; non-transitory
memory encoded with computer program operable by the one or more
processors so that during operations thereof, a financial
institution computer operates to perform the following steps:
establishing a line of credit coupled to one or more of a plurality
of prepaid card accounts in a first process, the line of credit
having a total credit limit and to be drawn in one or more of a
plurality of separate predetermined loan increments each being
equal in value and less than the total credit limit; determining a
number of separate predetermined loan increments to be drawn from
the line of credit in a second process so that the number of
separate predetermined loan increments multiplied by the value of
one of the plurality of separate predetermined loan increments plus
a value associated with the one or more of the plurality of prepaid
card accounts exceeds a value of a proposed purchase by less than
the value of one of the plurality of separate predetermined loan
increments; and releasing draws from the line of credit in the
determined number of separate predetermined loan increments in a
third process to thereby define drawn predetermined increments when
the drawn predetermined increments and a total value of a
predetermined loan advance fee corresponding thereto collectively
do not exceed a line of credit balance available, the total value
of the predetermined loan advance fee being equal to a
predetermined loan advance fee multiplied by the number of separate
predetermined loan increments.
2. A financial institution computer as defined in claim 1, the
financial institution computer further being operable to perform
the following step: determining, by the financial institution
computer, a new value of the line of credit balance available in a
fourth process, the new value being a previous value of the line of
credit balance available minus the drawn predetermined increments
and minus the total value of the predetermined loan advance
fee.
3. A financial institution computer as defined in claim 1, the
financial institution computer further operable to perform the
following step: determining, by the financial institution computer,
a new value of a line of credit balance in a fourth process, the
new value being a previous value of the line of credit balance plus
the drawn predetermined increments plus the total value of the
predetermined loan advance fee, the total value of the
predetermined loan advance fee being less than the drawn
predetermined increments.
4. A financial institution computer as defined in claim 2, wherein
the line of credit is configured to have a preauthorized individual
loan limit, and wherein the releasing of the draws from the line of
credit is responsive to the drawn predetermined increments not
exceeding the preauthorized individual loan limit.
5. A financial institution computer as defined in claim 4, the
financial institution computer further operable to perform the
following step: repaying, by the financial institution computer, at
least a first portion of the new value of the line of credit
balance associated with the drawn predetermined increments in a
fifth process responsive to receiving one or more automatic
deposits or a portion thereof for a benefit of a prepaid card user
associated with the one or more of the plurality of prepaid card
accounts, and wherein the determining a number of separate
predetermined increments being responsive to receipt of data
indicating that the value of the proposed purchase associated with
one or more of the plurality of prepaid card accounts is greater
than a value associated with the one or more one of the plurality
of the prepaid card accounts.
6. A financial institution computer as defined in claim 5, wherein
the first portion of the line of credit balance repaid includes at
least the total value of the predetermined loan advance fee.
7. A financial institution computer as defined in claim 1, wherein
the data is received from a prepaid card processor associated with
the one or more of the plurality of prepaid card accounts, the
prepaid card processor being adapted to process a plurality of
transactions associated with the one or more of the plurality of
prepaid accounts, and wherein draws from the line of credit are
released to the prepaid card processor.
8. Non-transitory memory encoded with computer program comprising a
set of instructions operable by a financial institution computer,
the financial institution computer operable to perform the
following steps: establishing a line of credit coupled to one or
more of a plurality of prepaid card accounts in a first process,
the line of credit having a total credit limit and to be drawn in
one or more of a plurality of separate predetermined loan
increments each being equal value and less than the total credit
limit; determining a number of separate predetermined loan
increments to be drawn from the line of credit in a second process
so that the number of separate predetermined loan increments
multiplied by the value of one of the plurality of separate
predetermined loan increments plus a value associated with the one
or more of the plurality of prepaid card accounts exceeds a value
of a proposed purchase by less than the value of one of the
plurality of separate predetermined loan increments; and releasing
draws from the line of credit in the determined number of separate
predetermined loan increments in a third process to thereby define
drawn predetermined increments when the drawn predetermined
increments and a total value of a predetermined loan advance fee
corresponding thereto collectively do not exceed a line of credit
balance available, the total value of the predetermined loan
advance fee being equal to a predetermined loan advance fee
multiplied by the number of separate predetermined loan
increments.
9. Non-transitory memory as defined in claim 8, the financial
institution computer further being operable to perform the
following step: determining, by the financial institution computer,
a new value of the line of credit balance available in a fourth
process, the new value being a previous value of the line of credit
balance available minus the drawn predetermined increments and
minus the total value of the predetermined loan advance.
10. Non-transitory memory as defined in claim 8, the financial
institution computer further being operable to perform the
following step: determining, by the financial institution computer,
a new value of a line of credit balance in a fourth process, the
new value being a previous value of the line of credit balance plus
the drawn predetermined increments plus the total value of the
predetermined loan advance fee, the total value of the
predetermined loan advance fee being less than the drawn
predetermined increments.
11. Non-transitory memory as defined in claim 8, wherein the line
of credit is configured to have a preauthorized individual loan
limit, and wherein the releasing of the draws from the line of
credit is responsive to the drawn predetermined increments not
exceeding the preauthorized individual loan limit.
12. Non-transitory memory as defined in claim 11, the financial
institution computer further operable to perform the following
step: repaying, by the financial institution computer, at least a
first portion of the new value of the line of credit balance
associated with the drawn predetermined increments in a fifth
process responsive to receiving one or more automatic deposits or a
portion thereof for a benefit of a prepaid card user associated
with the one or more of the plurality of prepaid card accounts; and
wherein the second process of determining the number of separate
predetermined loan increments is responsive to receipt of data by
the financial institution computer indicating that the value of the
proposed purchase associated with one or more of the plurality of
prepaid card accounts is greater than the value associated with the
one or more one of the plurality of the prepaid card accounts.
13. Non-transitory memory as defined in claim 12, wherein the first
portion of the line of credit balance repaid includes at least the
total value of the predetermined loan advance fee.
14. Non-transitory memory as defined in claim 12, wherein the data
is received from a prepaid card processor associated with the one
or more of the plurality of prepaid card accounts, the prepaid card
processor adapted to process a plurality of transactions associated
with the one or more of the plurality of prepaid accounts; and
wherein draws from the line of credit are released to the prepaid
card processor.
15. A computer-implemented method to allow draws from a line of
credit in or more of a plurality of separate predetermined loan
increments, the computer-implemented method comprising the steps
of: establishing, by a computer associated with a financial
institution to define a financial institution computer, a line of
credit coupled to one or more of a plurality of prepaid card
accounts, the line of credit having a total credit limit and to be
drawn in one or more of a plurality of separate predetermined loan
increments each being equal value and less than the total credit
limit; determining a number of separate predetermined loan
increments to be drawn from the line of credit so that the number
of separate predetermined loan increments multiplied by the value
of one of the plurality of separate predetermined loan increments
plus the value associated with the one or more of the plurality of
prepaid card accounts exceeds a value of a proposed purchase by
less than the value of one of the plurality of separate
predetermined loan increments; and releasing draws by the financial
institution computer from the line of credit in the determined
number of separate predetermined loan increments to thereby define
drawn predetermined increments when the drawn predetermined
increments and a total value of a predetermined loan advance fee
corresponding thereto collectively do not exceed a line of credit
balance available, the total value of the predetermined loan
advance fee being equal to a predetermined loan advance fee
multiplied by the number of separate predetermined loan
increments.
16. A computer-implemented method as defined in claim 15, further
comprising the step of: determining, by the financial institution
computer, a new value of the line of credit balance available, the
new value being a previous value of the line of credit balance
available minus the drawn predetermined increments and minus the
total value of the predetermined loan advance.
17. A computer-implemented method as defined in claim 15, further
comprising the step of determining, by the financial institution
computer, a new value of a line of credit balance, the new value
being a previous value of the line of credit balance plus the drawn
predetermined increments plus the total value of the predetermined
loan advance fee, the total value of the predetermined loan advance
fee being less than the drawn predetermined increments.
18. A computer-implemented method as defined in claim 15, wherein
the line of credit is configured to have a preauthorized individual
loan limit, and wherein the releasing of the draws from the line of
credit is responsive to the drawn predetermined increments not
exceeding the preauthorized individual loan limit.
19. A computer-implemented method as defined in claim 15, further
comprising the step of: repaying, by the financial institution
computer, at least a first portion of the new value of the line of
credit balance associated with the drawn predetermined increments
responsive to receiving one or more automatic deposits or a portion
thereof for a benefit of a prepaid card user associated with the
one or more of the plurality of prepaid card accounts; and wherein
determining the number of separate predetermined loan increments is
responsive to receipt of data by the financial institution computer
indicating that the value of the proposed purchase associated with
one or more of the plurality of prepaid card accounts is greater
than the value associated with the one or more one of the plurality
of the prepaid card accounts.
20. A computer-implemented method as defined in claim 15, wherein
the data is received from a prepaid card processor associated with
the one or more of the plurality of prepaid card accounts, the
prepaid card processor adapted to process a plurality of
transactions associated with the one or more of the plurality of
prepaid accounts; and wherein draws from the line of credit are
released to the prepaid card processor.
Description
RELATED APPLICATIONS
[0001] This application is a continuation of and claims priority
and the benefit to U.S. patent application Ser. No. 13/233,268, by
Ahlers et al., titled "System, Program Product, and Associated
Methods to Autodraw for Micro-Credit Attached to a Prepaid Card"
filed on Sep. 15, 2011, which claims priority to and the benefit of
U.S. patent application Ser. No. 12/417,199, by Ahlers et al.,
titled "System, Program Product, and Associated Methods to Autodraw
for Micro-Credit Attached to a Prepaid Card" filed on Apr. 2, 2009,
which claims priority to and the benefit to U.S. Provisional Patent
Application Ser. No. 61/042,612, by Ahlers et al., titled "System,
Program Product, and Associated Methods to Autodraw for
Micro-Credit Attached to a Prepaid Card" filed on Apr. 4, 2008, all
of which are incorporated herein by reference in their entireties.
This application also relates to: U.S. Provisional Patent
Application Ser. No. 61/016,213, by Sorbe et at, titled "Transfer
Account Systems, Computer Program Products, and Associated Methods"
filed on Dec. 21, 2007; U.S. Provisional Patent Application Ser.
No. 61/052,454, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Methods to Prioritize Payments from
Preselected Bank Account" filed May 12, 2008; U.S. Provisional
Patent Application Ser. No. 61/029,975, by Sorbe et at, titled
"Methods To Advance Loan Proceeds On Prepaid Cards, Associated
Systems and Computer Program Products" filed on Feb. 20, 2008; U.S.
Provisional Patent Application Ser. No. 61/042,624, by Crowe et
al., titled "System, Program Product, and Method to Authorize Draw
for Retailer Optimization" filed on Apr. 4, 2008; U.S. Provisional
Patent Application Ser. No. 61/032,750, by Alders et al., titled
"Methods, Program Product, and System for Micro-Loan Management"
filed on Feb. 29, 2008; U.S. Provisional Patent Application Ser.
No. 61/060,559, by Galit et al., titled "Methods, Program Product,
and System to Enhance Banking Terms Over Time" filed on Jun. 11,
2008; U.S. Provisional Patent Application Ser. No. 61/082,863, by
Ahlers et al., titled "System, Program Product, and Method For
Debit Card and Checking Account Autodraw" filed on Jul. 23, 2008;
U.S. Provisional Patent Application Ser. No. 61/053,056, by Galit
et al., titled "System, Program Product, and Method For Loading a
Loan On a Pre-Paid Card" filed on May 14, 2008, all of which are
each incorporated herein by reference in their entireties. This
application also relates to: U.S. patent application Ser. No.
12/338,365, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on Dec. 18, 2008; U.S. patent application Ser. No.
12/338,402, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-implemented
Methods" filed on Dec. 18, 2008; U.S. patent application Ser. No.
12/338,440, by Sorbe et al, titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on Dec. 18, 2008; U.S. patent application Ser. No.
12/338,584, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Computer-Implemented Methods to
Prioritize Payments from Preselected Bank Account" filed Dec. 18,
2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,
titled "Transfer Account Systems, Computer Program Products, and
Computer-Implemented Methods to Prioritize Payments from
Preselected Bank Account" filed Dec. 18, 2008; U.S. patent
application Ser. No. 12/389,749, by Sorbe et al., titled "Methods
to Advance Loan Proceeds on Prepaid Cards, Associated Systems and
Computer Program Products" filed on Feb. 20, 2009; PCT/US09/34692,
by Sorbe et al., titled "Methods to Advance Loan Proceeds on
Prepaid Cards, Associated Systems and Computer Program Products"
filed on Feb. 20, 2009; U.S. patent application Ser. No.
12/417,211, by Ahlers et al., titled "System, Program Product, and
Associated Methods to Autodraw for Micro-Credit Attached to a
Prepaid Card" filed on Apr. 2, 2009; U.S. patent application Ser.
No. 12/417,182, by Crowe et al., titled "System, Program Product,
and Method to Autodraw for Retailer Optimization" tiled on Apr. 2,
2009; U.S. patent application Ser. No. 12/338,684, by Ahlers et
al., titled "Computer-Implemented Methods, Program Product, and
System for Micro-Loan Management" tiled on Dec. 18, 2008;
PCT/US08/87660 by Ahlers et al., titled "Computer-Implemented
Methods, Program Product, and System for Micro-Loan Management"
filed on Dec. 19, 2008; U.S. patent application Ser. No.
12/338,712, by Galit et al., titled "Computer-Implemented Methods,
Program Product, and System to Enhance Banking Terms Over Time"
filed on Dec. 18, 2008; PCT/US08/87689 by Galit et al., titled
"Computer-Implemented Methods, Program Product, and System to
Enhance Banking Terms Over Time" filed on Dec. 19, 2008; U.S.
patent application Ser. No. 12/417,162, by Ahlers et al,, titled
"System, Program Product, and Method For Debit Card and Checking
Account Autodraw" filed on Apr. 2, 2009, all of which are each
incorporated herein by reference in their entireties.
BACKGROUND
[0002] 1. Field of invention
[0003] The present invention relates generally to the financial
service and card product industries, and, more particularly, to
systems, computer program products, and associated methods of
providing an automatic credit line draw in preselected increments
for a prepaid card.
[0004] 2. Background
[0005] Millions of prepaid cards are issued each year in the United
States. It is known that many consumers rely primarily on cash and
a prepaid card account for their personal finances; these consumers
often do not have a traditional checking, savings, or other bank
deposit account, and they usually do not write checks. These
consumers typically do not have a credit card.
[0006] It is also known to use a prepaid card as payment for a
proposed purchase at a merchant. The consumer proposes a purchase
and submits the prepaid card to the merchant so that the merchant
can request authorization from a prepaid card processor associated
with the prepaid card. That is, the merchant checks that funds are
available in the account associated with the prepaid card to cover
the amount of the proposed purchase. This authorization process
also provides an opportunity for security services, such as, for
example, determining if the prepaid card has been reported as
stolen. If there are insufficient funds available in the account
associated with the prepaid card to cover the amount of the
proposed purchase, the authorization request is denied by the
prepaid card processor, and the proposed purchase is rejected by
the merchant. Embarrassed and disappointed, many rejected consumers
quickly give up and leave the merchant's premises so that even if a
loan or credit were readily available with minimal effort, such as,
for example, by placing a short phone call to the prepaid card
processor or to a lender, the proposed purchase is abandoned.
[0007] It is known that consumers can receive a loan without having
a bank account and that proceeds from a loan can be credited to or
posted to a prepaid card. Loans, including, e.g., payday loans,
payday advances, and other short-term cash advances, however,
involve hassles of applying for and obtaining the loan prior to the
consumer having access to the funds. In addition, inherent in
requesting a loan is determining the amount of the loan. If the
loan amount is too small, the consumer may need to obtain an
additional loan, with additional fees; if the loan amount is too
large, the consumer will needlessly pay extra interest.
SUMMARY OF INVENTION
[0008] In view of the foregoing, Applicant has recognized one or
more sources of many of these problems and provides enhanced
embodiments of methods, e.g., computerized methods, of advancing
one or more preselected loan increments to a prepaid card, and
associated systems and computer program products. According to
embodiments of the present invention, a lending institution
prequalifies a consumer for a line of credit for a prepaid card
responsive to consumer underwriting data and predetermined
qualification parameters, makes available draws to the line of
credit line in an authorization stream for a proposed purchase
using the prepaid card as payment, and loads a prepaid card in
preselected loan increments so that the prepaid card then has a new
amount that exceeds or equals the value of a proposed purchase.
Next, for example, a new value for the line of credit balance
available is determined, accounting for value loaded onto the
prepaid card and a preselected loan advance fee for each loan
increment loaded onto the prepaid card.
[0009] Embodiments of the present invention provide, for example, a
computer-implemented. method of advancing one or more preselected
loan increments to a prepaid card. The computer-implemented method
includes initiating consumer engagement of predetermined prepaid
card approval and authorizing advancing of one or more preselected
loan increments by the consumer upon approval by a lending
institution up to a preauthorized total loan value. The
preauthorized total loan value represents a maximum amount of value
available to the consumer from the lending institution via a line
of credit associated with the prepaid card as understood by those
skilled in the art. The computer-implemented method also includes
using the predetermined prepaid card to propose a purchase of one
or more items, determining an amount of value of proposed purchase
(including, for example, coupons, discounts, instant rebates, sales
tax, or a combination thereof as understood by those skilled in the
art), determining an amount of value on the predetermined prepaid
card, and determining difference in amount of value of proposed
purchase and the amount of value on the predetermined prepaid card.
The computer-implemented method includes loading the predetermined
prepaid card with an additional value equal to one or more
preselected loan increments so that the prepaid card then has a new
amount totaling the amount previously on the prepaid card plus the
one or more preselected loan increments and on that the new amount
exceeds or, alternatively, equals the value of the proposed
purchase. The computer-implemented method also includes determining
a predetermined loan advance fee for each increment of the one or
more increments from the preauthorized total loan value.
[0010] According to other embodiments of the present invention, the
consumer initiating engagement of approval can include, for
example, the consumer opting in to a program with the lending
institution using a written correspondence from the consumer, a
consumer selection on a website, a telephone conversation with an
interactive voice response unit, a telephone conversation with a
customer service representative, a mobile phone, or a combination
thereof as understood by those skilled in the art. That is,
embodiments of the present invention provide numerous flexible and
convenient ways to initiate consumer engagement of predetermined
prepaid card approval. A line of credit amount, for example, can be
established based on direct deposit and preselected underwriting
formula, as understood by those skilled in the art, that use the
amount of direct deposits, among other factors, to determine the
size of the credit line available.
[0011] In addition, embodiments of the present invention provide,
for example, a computer-implemented method of accessing a line of
credit with a prepaid card. The computer-implemented method
includes a lending institution prequalifying a consumer for a line
of credit for a prepaid card responsive to consumer underwriting
data and predetermined qualification parameters to thereby convert
consumer underwriting data into line of credit data. The
computer-implemented method further includes making available draws
to the line of credit line in an authorization stream for a
proposed purchase using the prepaid card as payment. The line of
credit has a total loan value, a preselected loan increment, a
preselected loan advance fee associated with each preselected loan
increment, and a line of credit balance available. The
computer-implemented method also includes loading the prepaid card
with an additional value equal to one or more preselected loan
increments so that the prepaid card then has a new amount totaling
a previous amount of value on the prepaid card plus the amount of
value of the one or more preselected loan increments and so that
the new amount exceeds or, alternatively, equals the value of a
proposed purchase. The computer-implemented method further includes
determining a new value for the line of credit balance available.
The new value is a previous value for the line of credit balance
available minus the value loaded onto the prepaid card and minus
fees, as each of the one or more preselected loan increments loaded
onto the prepaid card generates a preselected loan advance fee.
[0012] By prequalifying the consumer for the line of credit
responsive to consumer underwriting data and predetermined
qualification parameters and making draws to the line of credit
available in the authorization stream for a purchase using the
prepaid card as payment, embodiments of the present invention
advantageously allow a consumer to avoid the planning and hassle
associated with determining the amount of a loan prior to proposing
a purchase. Previously, a consumer would have to determine the
amount of the loan necessary to fund the proposed purchase, then
secure the loan, and only then propose the purchase at a merchant
using the prepaid card. If the information necessary to determine
the amount of the loan exists only at the merchant, multiple trips
to the merchant may be required. Under the embodiments of the
present invention, however, multiple trips are not required as the
amount of the loan is determined, up to the total loan value, in
the authorization stream for a proposed purchase using the prepaid
card as payment, resulting in fewer rejections of proposed
purchases, less embarrassment for consumers, and reduced cost due
to fewer abandoned sales as understood by those skilled in the art.
Advantageously, under the embodiments of the present invention, the
consumer only pays for what is actually drawn.
[0013] By loading the prepaid card in preselected loan increments,
embodiments of the present invention advantageously can guarantee a
fee structure that is proportional to the amount of credit
accessed. By comparison, an overdraft fee charge by a bank for
"bounced" check is often larger than the overdraft amount. Instead,
the fee structure according to embodiments of the present invention
more closely resembles an automated teller machine (ATM) fee from a
consumer's point of view as understood by those skilled in the art.
In addition, the use of preselected loan increments can often
result in value remaining on the prepaid card, allowing for small
transactions without generating additional loan fees. For example,
after of a load of a preselected loan increment of $50 and
subsequent purchase transaction, the balance on the prepaid card
ranges from $0.00 to $49.99.
[0014] Embodiments of the present invention provide, for example, a
system of advancing one or more preselected loan increments to a
prepaid card. The system includes a lending institution computer
positioned to manage a line of credit associated with a prepaid
card, i.e., to control access to funds from a line of credit
associated with a prepaid card; a plurality of merchant computers
positioned to determine an amount of value of a proposed purchase
of one or more items; a plurality of point-of-sale terminals, each
in communication with a merchant computer; and a third computer
associated with a customer prepaid card account defining a prepaid
card processor. The prepaid card processor is in communication with
the lending institution computer and the plurality of acquiring
processors of the point-of-sale terminal through an electronic
communications network. The prepaid card processor is positioned to
process an authorization request for a proposed purchase of one or
more items from an acquiring processor of the point-of-sale
terminal. The system further includes a computer program product
associated with the lending institution computer as discussed
herein.
[0015] Embodiments of the present invention provide, for example, a
computer program product associated with the lending institution
computer, stored on a tangible computer memory media, and operable
on a computer, the computer program product comprising a set of
instructions that, when executed by the computer, cause the
computer to perform various operations. The operations include
prequalifying a consumer for a line of credit for a prepaid card by
the lending institution responsive to consumer underwriting data
and predetermined qualification parameters to thereby convert
consumer underwriting data into line of credit data. The operations
further include making available draws to the line of credit line
in an authorization stream for a proposed purchase of one or more
items using the prepaid card as payment. The proposed purchase data
can be, for example, received by the lending institution computer
through the electronic communications network from a card reader
device associated with a point of sale terminal. The operations
further include loading the prepaid card with an additional value
equal to one or more preselected loan increments so that the
prepaid card then has a new amount totaling a previous amount of
value on the prepaid card plus the amount of value of the one or
more preselected loan increments and so that the new amount exceeds
or, alternatively, equals the value of a proposed purchase to
thereby convert line of credit data into a value associated with
the prepaid card to thereby fund the proposed purchase. The
operations also include determining a new value for the line of
credit balance available, in which the new value is a previous
value for the line of credit balance available minus a value equal
to the one or more preselected loan increments loaded onto the
prepaid card and minus a value equal to one or more preselected
loan advance fees associated with each of the one or more
preselected loan increments loaded onto the prepaid card.
[0016] Additional embodiments of the present invention include a
computer program product stored on a tangible computer memory
media, operable on a computer, and associated with a prepaid card
processor.
[0017] According to another embodiment of the present invention,
the financial institution can be a federally-chartered bank subject
to federal banking laws and regulations and not subject to state
banking laws and regulations. Also, the line of credit program can
be bank product so that the line of credit program complies with
federal Regulation Z.
[0018] In addition, embodiments of the present invention include
systems, program products, and associated methods of advancing one
or more preselected loan increments to a prepaid card and accessing
a line of credit with a prepaid card as will be understood by those
skilled in the art.
BRIEF DESCRIPTION OF DRAWINGS
[0019] So that the manner in which the features and benefits of the
invention, as well as others which will become apparent, may be
understood in more detail, a more particular description of the
invention briefly summarized above may be had by reference to the
embodiments thereof which are illustrated in the appended drawings,
which form a part of this specification. It is also to be noted,
however, that the drawings illustrate only various embodiments of
the invention and are therefore not to be considered limiting of
the invention's scope as it may include other effective embodiments
as well.
[0020] FIG. 1 is a schematic flow diagram of a method of advancing
one or more preselected loan increments to a prepaid card according
to an embodiment of the present invention;
[0021] FIG. 2 is a schematic flow diagram of a method of accessing
a line of credit with a prepaid card according to another
embodiment of the present invention;
[0022] FIG. 3 is a schematic block diagram of a system of advancing
one or more preselected loan increments to a prepaid card according
to an embodiment of the present invention;
[0023] FIG. 4 is a partial schematic diagram of a computer program
product according to an embodiment of the present invention;
[0024] FIG. 5 is a partial schematic diagram of another computer
program product according to another embodiment of the present
invention;
[0025] FIG. 6 is a schematic diagram of loan set up flow according
to embodiments of the present invention;
[0026] FIG. 7 is a schematic front elevational view of an
embodiment of an access interface of a program product and system
in the form of a graphical user interface of a display of a
computer according to an embodiment of the present invention;
[0027] FIG. 8 is a schematic diagram of a payroll processor system
according to an embodiment of the present invention;
[0028] FIG. 9 is a schematic diagram of a program product according
to an embodiment of the present invention;
[0029] FIGS. 10A and 10B are respective front and back plan views
of a prepaid card according to an embodiment of the present
invention;
[0030] FIG. 11 is a front plan view of a display screen of a
computer displaying an excerpt of an account activity statement
according to an embodiment of the present invention; and
[0031] FIG. 12 is a schematic flow diagram of a method of accessing
a line of credit with a prepaid card according to another
embodiment of the present invention,
DETAILED DESCRIPTION
[0032] The present invention will now be described more fully
hereinafter with reference to the accompanying drawings, which
illustrate embodiments of the invention. This invention may,
however, be embodied in many different forms and should not be
construed as limited to the illustrated embodiments set forth
herein; rather, these embodiments are provided so that this
disclosure will be thorough and complete, and will fully convey the
scope of the invention to those skilled in the art. Like numbers
refer to like elements throughout.
[0033] As illustrated in FIG. 1, embodiments of the present
invention include a method, e.g., a computerized method, of
advancing one or more preselected loan increments to a prepaid
card. The method includes initiating consumer engagement of
predetermined prepaid card approval 103. The method further
includes authorizing advancing of one or more preselected loan
increments by the consumer upon approval by a lending institution
up to a preauthorized total loan value 105. The preauthorized total
loan value represents a maximum amount of value available to the
consumer from the lending institution via a line of credit
associated with the prepaid card as understood by those skilled in
the art. The method also includes using the predetermined prepaid
card to propose a purchase of one or more items 107. The method
further includes determining amount of value of proposed purchase
of the one or more items 109. According to other embodiments of the
present invention, determining amount of value of proposed purchase
of the one or more items can include, for example, coupons,
discounts, instant rebates, sales tax, or a combination thereof as
understood by those skilled in the art. The method also includes
determining amount of value on the predetermined prepaid card 111
and determining difference in amount of value of proposed purchase
of the one or more items and the amount of value on the
predetermined prepaid card upon proposed purchase 113. The method
includes loading the predetermined prepaid card with an additional
value equal to one or more preselected loan increments so that the
prepaid card then has a new amount totaling the amount previously
on the prepaid card plus the one or more preselected loan
increments and so that the new amount exceeds or, alternatively,
equals the value of the proposed purchase 115. The method also
includes determining a predetermined loan advance fee for each
increment of the one or more increments from the preauthorized
total loan value 117.
[0034] According to other embodiments of the present invention, the
consumer initiating engagement of approval can include, for
example, the consumer opting in to a program with the lending
institution using a written correspondence from the consumer, a
consumer selection on a website, a telephone conversation with an
interactive voice response unit (IVRU), a telephone conversation
with a customer service representative, a mobile phone, or a
combination thereof as understood by those skilled in the art. That
is, embodiments of the present invention provide numerous flexible
and convenient ways to initiate consumer engagement of
predetermined prepaid card approval. When launched as an accessible
website, for example, the website can provide various software
based program product segments, as will be understood by those
skilled in the art, from which bank products are accessible or
downloadable. The website preferably includes secure site pages or
portions, as understood by those skilled in the art, as financial
and personal data on or for customers may be provided by a
customer. As described herein, the website in an exemplary
embodiment includes prepaid card management capabilities as
understood by those skilled in the art to enhance qualification of
customers and tracking of customer usage data or history. By
including this feature, embodiments of other program products,
methods, and systems can be enhanced and provided.
[0035] In an embodiment of the present invention involving
prequalifying a consumer for a line of credit from a bank or other
lending institution, the lending institution can require or define,
for example, the following initial qualification parameters for a
customer: (1) customer should be a prepaid card customer; (2)
customer should provide employment and wage verification through a
direct deposit history; (3) customer should authorize bank
initiated withdrawals from their prepaid card; and (4) customer
should have a history of at least one electronic deposit. In
addition, the following on-going criteria, for example, should be
me: (1) customer's card account should be in good standing, not
overdrawn, cancelled, or in default of the customer agreement; and
(2) customer should continue to initiate electronic deposits to the
card. The bank or lending institution, for example, can elect to
make the account ineligible for a line of credit if an electronic
deposit ceases. The bank can have a dedicated program manager
qualify, approve, or authorize a customer or can use program
product stored in memory to make sure the criteria or parameters
are satisfied or meet certain thresholds as selected by the bank or
lending institution.
[0036] For example, as illustrated in FIG. 6, a customer C can go
on-line through a computer or IVRU 22 in a system 20 to register at
a website using a program product according to embodiments of the
present invention and launched from a server, e.g., at a loan
processor, underwriting organization, bank, lending institution,
other financial institution, payroll processing company, or other
entity which can provide the line of credit product, among others,
as will be understood by those skilled in the art. The form or
qualification parameters can be consistent with one or more
underwriting organizations or institutions or set/defined by the
bank or lending institution.
[0037] As understood by those skilled in the art, a loan,
micro-loan, repayment, line of credit, or other type of payment
processor, such as provided by First Data. Corporation, Total
Systems Services, Inc., Fidelity National Information, Inc., or as
custom developed by a bank, a financial institution, or other
organization, operates to provide a customer interface on a line of
credit or micro-loan request (see, e.g., access interface 700 of
FIG. 7 in the form of a computer display having a graphical user
interface) and determines and decides whether a potential or
existing customer qualifies for a line of credit product. First
Data Corporation, formerly First Data Resources, is a transaction
processing company, including prepaid cards, and is headquartered
in Greenwood Village, Colo., as understood by those skilled in the
art. With headquarters located in Columbus, Ga., Total System
Services, Inc. provides electronic payment services to financial
institutions and companies, including consumer-finance, credit,
debit, healthcare, loyalty, prepaid, chip and mobile payments, as
understood by those skilled in the art. Headquartered in
Jacksonville, Fla., Fidelity National Information, Inc. provides
core processing for financial institutions, including card issuer,
transaction processing, and outsourcing services to financial
institutions and retailers, as understood by those skilled in the
art. The line of credit or loan processor 319, for example, can be
outsourced by a bank if desired, and numerous different loan
processors or entities that handle this function can be used as
well (see, e.g., FIG. 3 with computer server 319 handling the
payment processor and interface access roles for customer lines of
credit 321, for example). If the customer qualifies, the
credentials can be passed to a bank computer 307 or other financial
institution computer, and then a flag, code, notation, or other
identifier can be associated with a customer's profile in a
database 308 so that when the customer desires to access the line
of credit, e.g., through a customer purchase transaction using the
prepaid card, the process acknowledges the identifier to then allow
incremental micro-loans on the line of credit to be granted as
described herein. Notably, often a loan or other type of payment
processor is card processor specific, and in this instance, a
dedicated card processor (see, e.g., prepaid card processor 315 in
FIG. 3, and this processor likewise can be associated with
computers and have a customer prepaid card account 317 associated
with or processed thereby as understood by those skilled in the
art) can be used, but also as shown in FIG. 6 and described further
in U.S. Provisional Patent Application Ser. No. 61/029,975 titled
"Methods To Advance Loan Proceeds on Prepaid Cards, Associated
Systems and Computer Program Products" filed on Feb. 20, 2008 and
incorporated herein by reference methods can be used as well to
handle card interface to a variety of card processors, including,
e.g., Metavante Corporation ("Metavante") of Milwaukee, Wis., as
understood by those skilled in the art.
[0038] The customer transaction using a prepaid card, for example,
can then cause the request for the loan advance through the line of
credit processor 30 or other payment processor. The credit
processor 30 then posts notification of the micro-loan request
through an application program interface (API) to post the loan
advance in real time through an API Router 32 as understood by
those skilled in the art. The API Router 32 passes the request
through a security firewall 35 which passes the request through the
API to a card processor 42 and particular processor API 44, such
as, Metavante. The request data can be compared to flat files 46,
60, 70, e.g., data files that have no structural relationship as
understood by those skilled in the art, or flat files database so
that the bank or institution reconciles the loan transaction with
the customer's line of credit or other account 62. Some card
processors, for example, provide additional processor interfaces or
allow development of additional processor interfaces, as understood
by those skilled in the art, (see, e.g., API to Program Manager
52). Program manager operations, for example, can be provided by
various financial solution/program management companies, such as
AccountNow of San Ramon, Calif., as understood by those skilled in
the art. A program manager 54, a card processor API 56, and a card
processor 58 can be used by the credit processor or other payment
processor for a customer transaction as understood by those skilled
in the art.
[0039] The following example illustrates an embodiment of the
present invention. See also FIG. 11. A consumer initiates
engagement through a phone call with a customer service
representative and receives approval by the lending institution for
a line of credit for a prepaid card with preselected loan
increments of $20 with a $2.50 fee per increment. The consumer
proposes to purchase items with a value of $42, hut only has a
prepaid card balance of $21. The consumer, however, also has $60
available on the line of credit, with an outstanding balance of $0.
When the consumer proposes the purchase, the amount of value of the
proposed purchase is determined to be $42 (as this example assumes
no coupons, discounts, instant rebates, or sales tax for
illustrative purposes). The amount of value on the prepaid card is
determined to be $21. Then the difference is determined to be $21.
Next, two (2) preselected increments of $20 each, for a total value
of $40, are loaded onto the prepaid card so that the prepaid card
then has a new amount, in this example $61, totaling the amount
previously on the prepaid card ($21) plus the one or more
preselected loan increments (2.times.$20=$40) and so that the new
amount exceeds or, alternatively, equals the value of the proposed
purchase ($61.gtoreq.$42). The purchase is transacted, and the
prepaid card balance after the purchase is $19 ($61-$42=$19). The
loan fee is determined to be $5 (2.times.$2.50=$5). The line of
credit balance outstanding is now $45, which is calculated as a
previous balance ($0) plus the value of the preselected increments
loaded onto the prepaid card ($40) and the value of the loan fee
($5). Therefore, there remains $15 available on the line of credit
($60-2.times.$20-2.times.$2.50=$15).
[0040] In other embodiments of the present invention, the lending
institution can make available only a part of the preauthorized
total loan value available for loading onto the prepaid card,
responsive to a consumer determination, so that the consumer
retains maximum control. For example, the consumer determines to
make available only $75 of the preauthorized total loan value, of
say $200. The amount of value of the proposed purchase is
determined to be $98; the amount of value on the prepaid card is
determined to be $20; and the difference is determined to be $78.
Because the difference is greater than the amount available for
loading onto the prepaid card, authorization for the proposed
purchase is denied, and the proposed purchase is rejected.
[0041] As understood by those skilled in the art, by loading the
prepaid card only in preselected loan increments, embodiments of
the present invention advantageously can guarantee a fee structure
that is proportional to the amount of credit accessed. By
comparison, an overdraft fee charge by a bank for "bounced" check
is often by larger than the overdraft amount. Instead, the fee
structure according to embodiments of the present invention more
closely resembles an automated teller machine (ATM) fee. In
addition, the use of preselected loan increments can often result
in value remaining on the prepaid card, allowing for small
transactions without generating additional loan fees, For example,
after of a load of a preselected loan increment of $50 and
subsequent purchase transaction, the balance on the prepaid card
ranges from $0.00 to $49.99.
[0042] According to another embodiment of the present invention,
the financial institution can be a federally-chartered bank subject
to federal, banking laws and regulations and not subject to state
banking laws and regulations. Therefore, the federally-chartered
financial institution enjoys rate preemption; that is, state
licensing requirements, as well as regulations in many states that
limit lending interest rates, are preempted and do not apply to the
federally-chartered financial institution. As understood by those
skilled in the art, a federally-chartered financial institution can
operate in every state with a consistent implementation nationally
rather than a state-by-state approach, can provide consumers with
Regulation Z protection, and can charge any loan or interest rate
for the gap filling loans or immediate financing loans without
regard to state law.
[0043] According to another embodiment of the present invention,
the lending institution can adjust the preauthorized total loan
value and repayment terms based on the performance of the consumer.
That is, a consumer with good repayment history can typically earn
access to a larger line of credit.
[0044] As illustrated in FIG. 2, embodiments of the present
invention include a computer-implemented method of accessing a line
of credit with a prepaid card. The computer-implemented method
includes prequalifying a consumer for a line of credit for a
prepaid card by a lending institution 203 responsive to consumer
underwriting data and predetermined qualification parameters to
thereby convert consumer underwriting data into line of credit
data. The line of credit has a total loan value, a preselected loan
increment, a preselected loan advance fee associated with each
preselected loan increment, and a line of credit balance available.
The computer-implemented method also includes making available
draws to the line of credit line in an authorization stream for a
proposed purchase of one or more items using the prepaid card as
payment when an amount of value of the proposed purchase of the one
or more items is greater than an amount of value on the prepaid
card 205. The proposed purchase data can be, for example, received
by the lending institution computer through the electronic
communications network from a card reader device associated with a
point of sale terminal. The computer-implemented method further
includes loading the prepaid card with an additional value equal to
one or more preselected loan increments so that the prepaid card
then has a new amount totaling a previous amount of value on the
prepaid card plus the amount of value of the one or more
preselected loan increments and so that the new amount exceeds or,
alternatively, equals the value of a proposed purchase 207 to
thereby convert line of credit data into a value associated with
the prepaid card to thereby fund the proposed purchase. The
computer-implemented method also includes determining a new value
for the line of credit balance available, the new value being a
previous value for the line of credit balance available minus a
value equal to the one or more preselected loan increments loaded
onto the prepaid card and minus a value equal to one or more
preselected loan advance fees associated with each of the one or
more preselected loan increments loaded onto the prepaid card
209.
[0045] As understood by those skilled in the art, by prequalifying
the consumer for the line of credit and making draws to the line of
credit available in the authorization stream for a purchase using
the prepaid card as payment, embodiments of the present invention
advantageously allow a consumer to avoid the planning and hassle
associated with determining the amount of a loan prior to proposing
a purchase. Previously, a consumer would have to determine the
amount of the loan necessary to fund the proposed purchase, then
secure the loan, and only then propose the purchase at a merchant
using the prepaid card. If the information necessary to determine
the amount of the loan exists only at the merchant, multiple trips
to the merchant may he required. Under the embodiments of the
present invention, however, multiple trips are not required as the
amount of the loan is determined, up to the total loan value, in
the authorization stream for a proposed purchase using the prepaid
card as payment, resulting in fewer rejections of proposed
purchases, less embarrassment for consumers, and reduced cost due
to fewer abandoned sales as understood by those skilled in the art.
Advantageously, under the embodiments of the present invention, the
consumer only pays for what is actually drawn.
[0046] As illustrated in FIG. 3, embodiments of the present
invention include a system of advancing one or more preselected
loan increments to a prepaid card. The system 300 includes a first
computer associated with a lending institution defining a lending
institution computer 307, The lending institution computer 307 can
include, for example, input-output I/O devices 306A; one or more
processors 306B; memory 306C, such as, computer readable media; and
a display 306D. The memory 306C of the lending institution computer
307 can include a computer program product 400 as described herein
and can include, for example, one or more databases containing
account data files 308. The lending institution computer 307 is
positioned to manage a line of credit associated with a prepaid
card, i.e., to control access to funds from a line of credit
associated with a prepaid card. The system 300 also includes a
plurality of second computers associated with a plurality of
merchants 311 defining a merchant computer 313. Each merchant
computer 311 can include, for example, input-output I/0 devices
314A; one or more processors 314B; and memory 314C, such as,
computer readable media. Each merchant computer 313 is positioned
to determine an amount of value of a proposed purchase of one or
more items. The system 300 further includes a plurality of
point-of-sale terminals 312 associated with the plurality of
merchants 311. Each point-of-sale terminal 312 has a processor
defining an acquiring processor and is in communication with a
merchant computer 313. Prepaid card data can be read by swiping the
card through a slot 310C past a reading head of a point-of-sale
terminal 312. The point-of-sale terminal 312 can also include a
display 310A and input/output (I/O) devices 310B, e.g., a keypad.
The system 300 can also include a third computer associated with a
customer prepaid card account 317 defining a prepaid card processor
315. The prepaid card processor 315 is in communication with the
lending institution computer 307 and the plurality of acquiring
processors of the point-of-sale terminal 312 through an electronic
communications network 309. The prepaid card processor 315 is
positioned to process an authorization request for a proposed
purchase of one or more items from an acquiring processor of the
point-of-sale terminal 312. The system 300 can also include a
plurality of customer computers 303. Each customer computer 303 can
include, for example, input-output I/O devices 304A; one or more
processors 304B; memory 304C, such as, computer readable media; and
a display 304D. The memory 304C of the customer computer 303 can
include an Internet browser 304E, a computer application used for
accessing sites or information on a network, as understood by those
skilled in the art. The system 300 further includes a computer
program product associated with the lending institution computer
307, stored on a tangible computer memory media, and operable on a
computer, the computer program product comprising a set of
instructions that, when executed by the computer, cause the
computer to perform various operations as discussed herein.
[0047] As illustrated in FIG. 4, embodiments of the present
invention include a computer program product 400 associated with
the lending institution computer 402, stored on a tangible computer
memory media 401, and operable on a computer, the computer program
product 400 comprising a set of instructions 403 that, when
executed by the computer, cause the computer to perform various
operations. The operations include prequalifying a consumer for a
line of credit for a prepaid card by the lending institution 405
responsive to consumer underwriting data and predetermined
qualification parameters to thereby convert consumer underwriting
data into line of credit data. The line of credit has a total loan
value, a preselected loan increment, a preselected loan advance fee
associated with each preselected loan increment, and a line of
credit balance available. The operations also include making
available draws to the line of credit line in an authorization
stream for a proposed purchase of one or more items using the
prepaid card as payment when an amount of value of the proposed
purchase of the one or more items is greater than an amount of
value on the prepaid card 407. The proposed purchase data can be,
for example, received by the lending institution computer through
the electronic communications network from a card reader device
associated with a point of sale terminal. The operations further
include loading the prepaid card with an additional value equal to
one or more preselected loan increments so that the prepaid card
then has a new amount totaling a previous amount of value on the
prepaid card plus the amount of value of the one or more
preselected loan increments and so that the new amount exceeds or,
alternatively, equals the value of a proposed purchase 409 to
thereby convert line of credit data into a value associated with
the prepaid card to thereby fund the proposed purchase. The
operations also include determining a new value for the line of
credit balance available, in which the new value is a previous
value for the line of credit balance available minus a value equal
to the one or more preselected loan increments loaded onto the
prepaid card and minus a value equal to one or more preselected
loan advance fees associated with each of the one or more
preselected loan increments loaded onto the prepaid card 411.
[0048] As illustrated in FIG. 5, embodiments of the present
invention include a computer program product 500 stored on a
tangible computer memory media. 501, operable on a computer, and
associated with a prepaid card processor 502, the computer program
product 500 comprising a set of instructions 503 that, when
executed by the computer, cause the computer to perform various
operations. The operations include receiving information, e.g.,
data, for a line of credit for a prepaid card from a lending
institution computer by a prepaid card processor 505. The
information, e.g., data, can include a prequalification status
responsive to consumer underwriting data and predetermined
qualification parameters, a total loan value, a preselected loan
increment, a preselected loan advance fee associated with each
preselected loan increment, a line of credit balance available, and
a combination thereof. The operations also include making available
draws to the line of credit line on behalf of the lending
institution computer in an authorization stream for a proposed
purchase of one or more items using the prepaid card as payment
when an amount of value of the proposed purchase of the one or more
items is greater than an amount of value on the prepaid card 507.
The proposed purchase data can be, for example, received by prepaid
card processor through the electronic communications network from a
card reader device associated with a point of sale terminal. The
operations further include loading the prepaid card with an
additional value equal to one or more preselected loan increments
so that the prepaid card then has a new amount totaling a previous
amount of value on the prepaid card plus the amount of value of the
one or more preselected loan increments and so that the new amount
exceeds or, alternatively, equals the value of a proposed purchase
509 to thereby convert line of credit data into a value associated
with the prepaid card to thereby fund the proposed purchase. The
operations also include notifying the lending institution of the
loading of the prepaid card so that the line of credit balances on
the lending institution computer and the prepaid card processor are
kept in sync 511.
[0049] According to embodiments of the present invention, the
prepaid card processor can communicate with the lending institution
computer in real-time, near real-time, in a batch process, daily,
or periodically, as understood by those skilled in the art, to
assess if a line of credit is available and if a draw is available,
or to update line of credit balances.
[0050] Other embodiments of the present invention, for example, can
include a stand-in account at the prepaid card processor associated
with the line-of-credit or the lending institution to facilitate
loading the prepaid card as will be understood by those skilled in
the art. A stand-in account allows a consumer to have transactions
approved even when the primary authorization system is technically
unavailable. This is achieved by one processor using data and
instructions provided to it by the authorizing processor to "stand
in" and approve or decline transactions on the authorizing
processor's behalf if the authorizing processor system is
unavailable for real-time processing.
[0051] In other embodiments of the present invention, rather than
loading the prepaid card in preselected loan increments with each
increment associated with a preselected loan advance fee, the
prepaid card can be loaded through a draw for an exact amount of
purchase at a defined rate. In such embodiment, a standard consumer
draw on the line of credit could be in $20 increments, but when an
auto-draw is initiated by a purchase at a point of sale or an
automated teller machine (ATM) withdrawal, the exact amount of
funds needed to be borrowed will be advanced. As a result, for
example, the fee amount assessed for a $20 draw might be $2.50,
while if the amount borrowed on an auto-draw is only $10 the fee
would be assessed ratably and would be $1.25 for the borrowing.
[0052] Embodiments of the present invention can, for example,
include repayment of at least portions of the line of credit
responsive to a subsequent direct deposit received for customer's
benefit by the bank so that the repayment of the at least portions
of the line of credit is deducted from the subsequent direct
deposit. That is, loans made under a line of credit can be repaid
out of the proceeds of a direct deposit. Recurring direct deposits
include, for example, employer payroll funds, federal or state
government electronic benefits payments, annuities, dividends,
interest payments, lottery winnings, royalty payments, and other
streams of payments as understood by one skilled in the art.
[0053] Embodiments of systems, program products, and methods of the
present invention can include, for example, for substantially all
programs if desired, features such as any repayment of draws on the
line of credit can be automatically collected from the next
electronic deposit regardless of payment source. As payments are
received, fees also can be paid first then the payment applied to
the oldest outstanding draw amount. When payments are received,
total available line limit is restored by the payment amount. If
funds from the electronic deposit are not sufficient to cover the
outstanding balance, a partial repayment can be made in the full
amount of the electronic deposit resulting in an unpaid balance on
the line. Repayment of the remaining unpaid balance can be taken
from subsequent electronic deposits until the line has been paid in
full. Other cash equivalent repayment options also can be accepted
and processed by a line of credit processor as understood by those
skilled in the art.
[0054] It will also be understood by those skilled in the art that
embodiments of the line of credit product or program product, for
example, can be associated with a payroll processing company that
processes direct deposits (see, e.g., FIG. 8). Embodiments of the
program product and methods can be added to product or service
offerings by the payroll processing company 810 so that it can be
offered to their customers independent of bank by taking money or
funds out at the source 810, e.g., as the payroll file is prepared
820 and before the direct deposit is even originated, or loaded
onto a prepaid card, for example. These embodiments can also allow
the processing company 810 to have more direct information on
employment history. A payroll processing company 810 can also use a
loan processing system 840, loan processor, or other payment
processor either within their facilities or as an outsourcing
entity to allow the provision of enrolling and providing customer
payroll information 824 and for tracking and reconciling repayment
or updated customer payroll information with repayments pulled 844.
The payroll can be sent, loaded or processed by a payroll processor
830 for ACH transmittal, check generation, or card
loading/providing, for example (see, e.g., FIG. 8). These
embodiments of associated methods, for example, can include
providing a prepaid card to an employee who gets direct deposit to
a demand deposit accounts (DDA) whereby the consumer borrow funds
from the service/product and has those funds direct deposited onto
the card. instantly and repaid by pulling funds from the direct
deposit file prior to sending to the other bank account to repay
the amount withdrawn. An example of and more details on how
repayment can be accomplished is illustrated in U.S. Provisional
Patent Application Ser. No. 61/016,213 titled "Transfer Account
Systems, Computer Program Products, and Associated Methods" filed
on Dec. 21, 2007 which is incorporated herein by reference in its
entirety,
[0055] Additionally, along these lines, any repayment of a line
supersedes repayment of a negative balance on a card due to force
posts or settlement transactions that cause the card to go
negative. Any monies remaining after a payment is received can be
credited to the prepaid card. account. If payment takes the card
balance to $0, any transactions attempted with the card can be
declined. Those transactions can be subject to any related decline
fees. Repayment of a draw, for example, should not be taken from
the principal balance on a card. That is, if a card balance is
positive prior to a draw, only when the next electronic deposit is
initiated to the card will repayment be triggered. If a draw is not
paid within the preselected time period, preferably days, e.g., 35
day timeframe, any amount owed can be taken from the principal
balance on a card.
[0056] Embodiments of the present invention provide, for example, a
program product 900 associated with a bank or other financial or
lending institution implemented in modules or components, as
illustrated in FIG. 9. An underwriting analyzer and interface
component 901 of a bank program product 900 can receive
underwriting information, e.g., data, and make the determination
whether to offer a line of credit or other product to the customer
as understood by those skilled in the art. That is, an underwriting
analyzer and interface component 901 can respond to a consumer
initiated engagement and can determine whether to prequalify the
consumer for a line of credit. Underwriting data can include
whether a customer is an existing prepaid card customer 911; a
direct deposit history 912; a withdrawal authorization or approval,
from an enrollment in a line of credit program; a history of at
least one electronic deposit 914; an account being in good
standing, not overdrawn, cancelled, or in default 915; continued
direct deposit 916; and other data as understood by those skilled
in the art. In addition, a loan advance and fee manager module 903
deals with determining whether to advance funds 921, providing
loans in predetermined increments 922, calculating available credit
923, managing repayments 924, and other associated tasks as
understood by those skilled in the art, Other architectures and
organizations will be understood by those skilled in the art to be
included within the embodiments of the present invention. Program
products can be implemented in a variety of software and
programming languages, including without limitation hypertext
markup language ("HTML"), Java, C, C-F XML, and others as
understood by those skilled in the art.
[0057] As illustrated in FIGS. 10A, 10B, and 3, embodiments of the
present invention can include, for example, a prepaid card 950 and
a point-of-sale terminal device 312, e.g., a card reader. As
understood by those skilled in the art, a prepaid card can have
indicia 952, e.g., logos, slogans, source identifiers, of a
sponsoring bank and of a prepaid card processor; a serial number
954; and expiration date 956. The structures of various types of
specific cards, e.g., magnetic stripe 958, type of material, are
well known to those skilled in the art and can be used with
embodiments of the present invention. Typically, a card 950 is
formed from plastic and has a magnetic stripe 958 affixed to the
plastic through an application of heat. Those skilled in the art
will understand that other embodiments besides a magnetic stripe
can include radio frequency identification devices (RFID), smart
chips, bar codes, and other similar devices. Embodiments of the
present invention can include forming cards or receiving cards
already formed. The magnetic stripe card 950 can store information,
or data, e.g., account information, by modifying the magnetism of
particles on the magnetic stripe 958 on the card. The information
can be read by swiping the card through a slot 310C past a reading
head of a card reader device 312, e.g., point-of-sale hardware. The
point-of-sale terminal 312 can include a display 310A and
input/output (I/O) devices 310B, e.g., a keypad. Typically, there
are two tracks of information on a magnetic card 950 used for
financial transactions, known as tracks 1 and 2. In addition, a
third track, known as track 3, can be available for magnetic stripe
cards. Tracks 11 and 3, if available, are typically recorded at 210
bits per inch, while track 2 typically has a recording density of
75 bits per inch. Track 2, as typically encoded, was developed by
the American Bankers Association (ABA) provides for 37 numeric data
characters, including up to 19 digits for a primary account number
(including a Bank Identification Number as understood by those
skilled in the art), an expiration date, a service code, and
discretionary verification data, such as, a Personal Identification
Number, or PIN. The information, e.g., data, on the card can be
used, for example, to facilitate a transaction. For example, when
the prepaid card 950 is swiped through a slot 310C, the data on the
magnetic stripe 958 is read and processed by the point-of-sale
terminal 312, converting data stored in the magnetic particles on
the card into data associated with readers 312 and a lending
institution computer 307. The point-of-sate terminal 312 can then
communicate through an electronic communications network 309 to,
for example, a prepaid card processor 315 or a lending institution
computer 307. The point-of-sale terminal 312, e.g., card reader,
communicates the account information, e.g., data, as read from the
card, as well as other data, such as, an amount of a proposed
transaction for approval from the merchant computer 313. The other
data, for example, can be entered by merchant personnel (e.g., an
amount of the transaction), the consumer (e.g., a PIN, or security
code), or bank personnel (e.g., a security approval). The prepaid
card processor 315 or a lending institution computer 307 can then
utilize the account information and other data to authorize or
reject a purchase by, for example, determining whether a proposed
purchase by the consumer is less than an amount of funds remaining
on the card. Moreover, optional security measures, including, for
example, a mismatch between a PIN supplied by the consumer and a
PIN stored on the card or in a database, can result in the
rejection of a proposed transaction. The prepaid card processor 315
or lending institution computer 307 then perform certain functions,
including responding to the authorization request so that a
point-of-sale displays an indication of approval or rejection,
resulting in a visual depiction to a merchant of the approval or
rejection of the proposed transaction. Also, prepaid card processor
315 can, for example, write data to a database to record a purchase
or other transaction (including advancing a loan from the line of
credit), to debit available funds from an account associated with
the prepaid card 950, and to credit directly or indirectly a
merchant for a purchase. In addition to purchase authorization,
embodiments of the present invention also can include customer
inquiries into recent transactions or a balance inquiry, i.e., an
amount of remaining value associated with the prepaid card.
[0058] As illustrated in FIG. 11, embodiments of the present
invention include, for example, providing data associated with a
prepaid card account as a visual representation of account
activity. For example, a customer computer 303, through an Internet
Browser 304E, (see FIG. 3) can display on a display 304D an account
activity statement 712 for a customer-specific account 713, or set
of accounts, with each transaction including, for example, a date
714A, a description 714B, a amount credited to the account 714C, an
amount debited from the account 714D, a resulting card balance
714E, a line of credit amount available 714F, and a line of credit
outstanding balance 714G, or other such data as understood by those
skilled in the art. For example, the visual representation can
include a card balance inquiry 715A. For example, the visual
representation can include loading the prepaid card with an
additional value equal to one or more preselected loan increments
so that the prepaid card then has a new amount totaling a previous
amount of value on the prepaid card plus the amount of value of the
one or more preselected loan increments and so that the new amount
exceeds or, alternatively, equals the value of a proposed purchase
715B. For example, the visual representation can include a purchase
of goods 715C, wherein data associated with a prepaid card
representing an amount of value on the prepaid card is modified in
an exchange for products, including goods or services. In addition,
the visual representation can include a direct deposit 715D and
also a loan repayment from direct deposit funds relatively
instantaneously (or prior to) with the direct deposit funds being
made available in the consumer's account 715E. In other
embodiments, loading the prepaid card 715B and an associated
purchase of goods 715C can be represented as a single transaction;
likewise, the direct deposit 715D and an associated loan repayment
715E can be represented as a single transaction. In addition, the
visual representation can include an increase in a total loan value
715F, i.e., an amount available from the line of credit, responsive
to consumer performance data.
[0059] As illustrated in FIG. 12, embodiments of the present
invention include a computer-implemented method of accessing a line
of credit with a prepaid card. The computer-implemented method
includes receiving data for a line of credit for a prepaid card
from a lending institution computer by a prepaid card processor
253. The data can include, for example, a prequalification status
responsive to consumer underwriting data and predetermined
qualification parameters, a total loan value, a preselected loan
increment, a preselected loan advance fee associated with each
preselected loan increment, and a line of credit balance available.
The computer-implemented method also includes making available
draws to the line of credit line on behalf of the lending
institution computer in an authorization stream for a proposed
purchase of one or more items using the prepaid card as payment
when an amount of value of the proposed purchase of the one or more
items is greater than an amount of value on the prepaid card 255.
The proposed purchase data can, for example, be received by the
lending institution computer or the payroll processor through the
electronic communications network and can originate from a card
reader device associated with a point of sale terminal. The
computer-implemented method further includes loading the prepaid
card with an additional value equal to one or more preselected loan
increments so that the prepaid card then has a new amount totaling
a previous amount of value on the prepaid card plus the amount of
value of the one or more preselected loan increments and so that
the new amount exceeds or, alternatively, equals the value of a
proposed purchase 257 to thereby convert line of credit data into a
value associated with the prepaid card to thereby fund the proposed
purchase. The computer-implemented method also includes notifying
the lending institution of the loading of the prepaid card so that
the line of credit balances on the lending institution computer and
the prepaid card processor are kept in sync 259.
[0060] A person having ordinary skill in the art will recognize
that various types of memory are readable by a computer such as
described herein, e.g., lending institution, prepaid processor, or
other computers with embodiments of the present invention. Examples
of computer readable media include but are not limited to:
nonvolatile, hard-coded type media such as read only memories
(ROMs), CD-ROMs, and DVD-ROMs, or erasable, electrically
programmable read only memories (EEPROMs), recordable type media
such as floppy disks, hard disk drives, CD-R/RWs, DVD-RAMs,
DVD-R/RWs, DVD+R/RWs, flash drives, memory sticks, and other newer
types of memories, and transmission type media such as digital and
analog communication links. For example, such media can include
operating instructions, as well as instructions related to the
system and the method steps described above and can operate on a
computer. It will be understood by those skilled in the art that
such media can be at other locations instead of or in addition to
the lending institution computer to store program products, e.g.,
including software, thereon.
[0061] Many modifications and other embodiments of the invention
will come to the mind of one skilled in the art having the benefit
of the teachings presented in the foregoing descriptions and the
associated drawings. Therefore, it is to be understood that the
invention is not to be limited to the illustrated embodiments
disclosed, and that modifications and other embodiments are
intended to be included within the scope of the appended
claims.
[0062] This application is a continuation of and claims priority
and the benefit to U.S. patent application Ser. No. 13/233,268, by
Ahlers et al., titled "System, Program Product, and Associated
Methods to Autodraw for Micro-Credit Attached to a Prepaid Card"
filed on Sep. 15, 2011, which claims priority to and the benefit of
U.S. patent application Ser. No. 12/417,199, by Ahlers et al.,
titled "System, Program Product, and Associated Methods to Autodraw
for Micro-Credit Attached to a Prepaid Card" filed on Apr. 2, 2009,
which claims priority to and the benefit to U.S. Provisional Patent
Application Ser. No. 61/042,612, by Alders et al., titled "System,
Program Product, and Associated Methods to Autodraw for
Micro-Credit Attached to a Prepaid Card" filed on Apr. 4, 2008, all
of which are incorporated herein by reference in their entireties.
This application also relates to: U.S. Provisional Patent
Application Ser. No. 61/016,213, by Sorbe et al., titled "Transfer
Account Systems, Computer Program Products, and Associated Methods"
filed on Dec. 21, 2007; U.S. Provisional Patent Application Ser.
No. 61/052,454, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Methods to Prioritize Payments from
Preselected Bank Account" tiled May 12, 2008; U.S. Provisional
Patent Application Ser. No. 61/029,975, by Sorbe et al, titled
"Methods To Advance Loan Proceeds On Prepaid Cards, Associated
Systems and Computer Program Products" filed on Feb. 20, 2008; U.S.
Provisional Patent Application Ser. No. 61/042,624, by Crowe et
al., titled "System, Program Product, and Method to Authorize Draw
for Retailer Optimization" filed on Apr. 4, 2008; U.S. Provisional
Patent Application Ser. No. 61/032,750, by Ahlers et al., titled
"Methods, Program Product, and System for Micro-Loan Management"
filed on Feb. 29, 2008; U.S. Provisional Patent Application Ser.
No. 61/060,559, by Gain et al., titled "Methods, Program Product,
and System to Enhance Banking Terms Over Time" filed on Jun. 11,
2008; U.S. Provisional Patent Application Ser. No. 61/082,863, by
Milers et al., titled "System, Program Product, and Method For
Debit Card and Checking Account Autodraw" filed on Jul. 23, 2008;
U.S. Provisional Patent Application Ser. No. 61/053,056, by Gain et
al., titled "System, Program Product, and Method For Loading Loan
On a Pre-Paid Card" filed on May 114, 2008, all of which are each
incorporated herein by reference in their entireties. This
application also relates to: U.S. patent application Ser. No.
12/338,365, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on Dec. 18, 2008; U.S. patent application Ser. No.
12/338,402, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on Dec. 18, 2008; U.S. patent application Ser. No.
12/338,440, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Associated Computer-Implemented
Methods" filed on Dec. 18, 2008; U.S. patent application Ser. No.
12/338,584, by Sorbe et al., titled "Transfer Account Systems,
Computer Program Products, and Computer-Implemented Methods to
Prioritize Payments from Preselected Bank Account" filed Dec. 18,
2008; U.S. patent application Ser. No. 12/338,645, by Sorbe et al.,
titled "Transfer Account Systems, Computer Program Products, and
Computer-Implemented Methods to Prioritize Payments from
Preselected Bank Account" filed Dec. 18, 2008; U.S. patent
application Ser. No. 12/389,749, by Sorbe et al., titled "Methods
to Advance Loan Proceeds on Prepaid Cards, Associated Systems and
Computer Program Products" filed on Feb. 20, 2009; PCT/US09/34692,
by Sorbe et al., titled "Methods to Advance Loan Proceeds on
Prepaid Cards, Associated Systems and Computer Program Products"
filed on Feb. 20, 2009; U.S. patent application Ser. No.
12/417,211, by Alders et al., titled "System, Program Product, and
Associated Methods to Autodraw for Micro-Credit Attached to a
Prepaid Card" filed on Apr. 2, 2009; U.S. patent application Ser.
No. 12/417,182, by Crowe et al., titled "System, Program Product,
and Method to Autodraw for Retailer Optimization" filed on Apr. 2,
2009; U.S. patent application Ser. No. 12/338,684, by Ahlers et at,
titled "Computer-Implemented Methods, Program Product, and System
for Micro-Loan Management" filed on Dec. 18, 2008; PCT/US08/87660
by Ahlers et al., titled "Computer-Implemented Methods, Program
Product, and System for Micro-Loan Management" filed on Dec. 19,
2008; U.S. patent application Ser. No. 12/338,712, by Galit et al.,
titled "Computer-Implemented Methods, Program Product, and System
to Enhance Banking Terms Over Time" filed on Dec. 18, 2008;
PCT/US08/87689 by Galit et al., titled "Computer-implemented
Methods, Program Product, and System to Enhance Banking Terms Over
Time" filed on Dec. 19, 2008; U.S. patent application Ser. No.
12/417,162, by Ahlers et al., titled "System, Program Product, and
Method For Debit Card and Checking Account Autodraw" filed on Apr.
2, 2009, all of which are each incorporated herein by reference in
their entireties.
* * * * *