U.S. patent application number 13/553179 was filed with the patent office on 2012-11-08 for check-cashing/loan system using a variable amount electronic funds card.
Invention is credited to James Randall Beckers.
Application Number | 20120284182 13/553179 |
Document ID | / |
Family ID | 40408975 |
Filed Date | 2012-11-08 |
United States Patent
Application |
20120284182 |
Kind Code |
A1 |
Beckers; James Randall |
November 8, 2012 |
CHECK-CASHING/LOAN SYSTEM USING A VARIABLE AMOUNT ELECTRONIC FUNDS
CARD
Abstract
A rechargeable and disposable electronic funds (cash card)
issued by a non-financial facility, such as a check cashing
facility, a payday loan facility or a short term loan facility, is
disclosed where the card substitutes for the cash and is labeled in
the name of a bank type financial institution with which the
non-financial facility has a relationship. The card can be charged
with a variable amount on money. When used at a store for a
purchase it can act like a debit card but need not have a name of
the holder associated with (or embossed on) it like a gift card, so
the user can remain anonymous. The card can be upgraded to a
rechargeable or debit/credit card. The card can draw on an account
or sub account of the check cashing service or of the bank.
Inventors: |
Beckers; James Randall;
(Rockville, MD) |
Family ID: |
40408975 |
Appl. No.: |
13/553179 |
Filed: |
July 19, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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12195818 |
Aug 21, 2008 |
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13553179 |
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60968136 |
Aug 27, 2007 |
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Current U.S.
Class: |
705/41 |
Current CPC
Class: |
G06Q 40/02 20130101;
G07F 7/122 20130101; G06Q 20/363 20130101; G06Q 20/105 20130101;
G06Q 20/18 20130101 |
Class at
Publication: |
705/41 |
International
Class: |
G06Q 20/34 20120101
G06Q020/34 |
Claims
1. A process, comprising: performing a financial transaction of a
variable amount of money with an individual at a non-financial
institution where the financial transaction is one of cashing a
check; requesting permission to issue from a financial institution
and issuing, at the non-financial institution, a variable amount
electronic funds card of the financial institution including the
variable amount; and transferring the variable amount from a
facility account of the non-financial institution to the financial
institution.
2. A process as recited in claim 1, wherein the financial
transaction is one of making a short-term loan and making a payday
loan.
3. A process as recited in claim 1, wherein the card where the
electronic funds card comprises a non-rechargeable and disposable,
anonymous cash card where the variable amount credited to the card
is adjusted responsive to a transaction fee charge and a reserve
amount having a reserve time period.
4. A process as recited in claim 1, further comprising allowing
upgrading, by a processor, the non-rechargeable and disposable cash
card to a rechargeable cash card, upgrading the rechargeable cash
card to a debit card, upgrading the debit card to a debit card with
a savings component, and upgrading the debit card with the savings
component to a debit and credit card with a savings component
responsive to a transaction history of the individual.
5. A process as recited in claim 1, further comprising transferring
a transaction amount from the financial institution to a third
party with whom the individual conducts a third party financial
transaction by presenting the card for the third party transaction
to the third party and debiting the variable amount of the card by
transaction amount.
6. A process as recited in claim 1, further comprising allowing the
individual to add another variable amount to the card via another
financial transaction at the non-financial institution where the
financial transaction is one of cashing a check, making a
short-term loan and making a payday loan when the card is
rechargeable.
7. A process, comprising: performing a financial transaction of a
variable amount of money with an individual at a non-financial
facility; and issuing, at the non-financial institution, a variable
amount electronic funds card of a financial institution including
the variable amount.
8. A process as recited in claim 7, wherein the financial
transaction is one of cashing a check, making a short-term loan and
making a payday loan.
9. A process as recited in claim 7, wherein the electronic funds
card comprises one of a non-rechargeable/disposable, anonymous cash
card, a rechargeable cash card, a debit card, a debit card with a
savings component, a debit/credit card with a savings component and
having the amount credited thereto.
10. A process as recited in claim 9, wherein the
non-rechargeable/disposable cash card can be upgraded to the
rechargeable cash card, which can be upgraded to the debit card,
which can be upgraded to the debit card with a savings component
and which can be upgraded to the debit/credit card with a savings
component.
11. A process as recited in claim 7, further comprising
transferring the amount from a facility account to the financial
institution.
12. A process as recited in claim 11, transferring an amount from
the financial institution to a third party with whom the individual
conducts a financial transaction by presenting the card for the
transaction to the third party.
13. A process, comprising: performing a financial transaction of a
variable amount of money with an individual at a non-financial
facility where the financial transaction is cashing a check; and
issuing, at the non-financial institution, a variable amount
electronic funds card of a financial institution including the
variable amount.
14. A process as recited in claim 13, wherein the electronic funds
card comprises a non-rechargeable/disposable, anonymous cash
card.
15. A process as recited in claim 13, wherein the card can be
upgraded to a debit/credit card with a savings component.
Description
CROSS-REFERENCE TO RELATED APPLICATION(S)
[0001] This application is a continuation of U.S. patent
application Ser. No. 12/195,818, filed Aug. 21, 2008, now allowed,
which is related to and based on U.S. provisional application
entitled A Check-Cashing/Loan System Using A Variable Amount
Electronic Funds Card having Ser. No. 60/968,136, by Beckers, filed
Aug. 27, 2007, all of which are incorporated herein by
reference.
BACKGROUND
[0002] 1. Field
[0003] The embodiments discussed herein are directed to electronic
transaction cards.
[0004] 2. Description of the Related Art
[0005] Check cashing services are a type of transaction that can be
improved.
SUMMARY
[0006] It is an aspect of the embodiments discussed herein to
provide improved check cashing services.
[0007] The above aspects can be attained by a system that includes
the components and processes as described in the embodiments
herein.
[0008] These together with other aspects and advantages which will
be subsequently apparent, reside in the details of construction and
operation as more fully hereinafter described and claimed,
reference being had to the accompanying drawings forming a part
hereof, wherein like numerals refer to like parts throughout.
BRIEF DESCRIPTION OF THE DRAWINGS
[0009] FIG. 1 illustrates a check cashing and payday loan system
using a variable amount electronic funds card issued by a financial
institution, such as a bank.
[0010] FIG. 2 illustrates a process performed at a check
cashing/loan facility.
[0011] FIG. 3 illustrates a financial institution (or bank)
process.
[0012] FIG. 4 illustrates another process of the financial
institution.
[0013] FIG. 5 depicts a database or data structure of the
facility.
[0014] FIG. 6 depicts a graphical user interface or display of the
facility.
[0015] FIG. 7 illustrates a sample transaction.
DETAILED DESCRIPTION OF THE EMBODIMENTS
[0016] Check cashing services usually cash a "pay check" for a
person who does not have a checking account (possibly an illegal
immigrant or a person who is too "poor" for a bank to seek as a
customer) and the service charges a fee that is relative to the
size of the check, the payer "reliability", etc. to account for the
risk to the service in providing or handing over cash and the pay
check later bouncing. Payday loan companies or services provide
short term loans to individuals secured by the individual writing a
check for the loan amount, a service charge and interest to the
company that is dated (and thus cashable) on the date that the
individual gets paid whether by paycheck or electronic deposit.
Short-term loan companies make short-term loans that are due within
a short period of time, such as a month, and the loan typically
includes a service charge and interest for the loan period.
[0017] The embodiments discussed herein comprise a rechargeable and
disposable cash card issued by a check cashing service or loan
service where the card can substitute for the cash and is labeled
in the name of a bank type financial institution, such as Citibank
or Bank of America. The card can be "charged" with a variable
amount on money dependent on the size of the check, any reserve,
etc. or the size of the loan. The service can have a secure link to
the bank and an agreement with the bank to be able to issue such
cards with the bank name on them and establish these types of cash
card "accounts".
[0018] When used at a store for a purchase in front of the card
holder's "friends" the card could look a lot like a credit/debit
card is being used, raising the "prestige" of the user. In action,
it can be similar to a debit card but need not have a name of the
holder associated with (or embossed on) it like a gift card, so the
user could remain "anonymous" (no social security number required),
sometimes an important feature to the underground economy. The
name, etc. can be added later as the card is upgraded.
[0019] The card can draw on an account or sub account of the check
cashing service or of the bank, allowing the check cashing
service/bank to "use" the money until debited (free use of the
money). If the check "bounces" (for example, for insufficient
funds), the check cashing service could "retrieve" any money
remaining in the sub account, which reduces the risk somewhat. When
used for payday loans, the loan amounts could be registered with
the bank via an account identifier allowing the service to
"collateralize" the loans with the bank and receive more funds for
such services in the form of a loan on the receivables.
[0020] The card could be recharged when the user "cashes" another
check at the check cashing service (or bank) rather than expire
when empty like a gift card. If not recharged after a period of
time, the card would expire and could be discarded. When the card
is "empty" (and not an upgraded version as discussed below) it
could also be discarded and expires. The users name, address, etc.
could be added to the card (re-embossed or a substitute card issued
by the check cashing service or the bank) at any time so that it
would no longer be anonymous.
[0021] If the user is a frequent customer or builds up to a
"reliable customer", (and, as appropriate, the card is no longer
anonymous) the card could change or be upgraded over time into a
cash/debit/credit card. In such a situation, say after cashing 10
checks for $500, the card could have a credit limit of say $50
added to it. Maybe after 20 recharges, the limit would go to $100,
etc. The reliable use of the card could result in the bank
ultimately issuing or converting it to a "real" credit card with a
debit card feature. It could also have a savings account feature
that would automatically deposit a percentage of a recharge amount
into a savings account automatically each time it is recharged, if
activated by the user.
[0022] The cash that can be provided by the check cash, payday loan
and loan companies discussed above can be subject to theft. The
embodiments discuss herein reduce the risk of theft.
[0023] In a typical situation, a check holder or user 22 (see FIG.
1) comes in to a check cashing facility 24 (or payday loan
service), cashes a check 26 (or obtains a loan) and leaves with an
amount of cash that is the amount of the check (or loan) less a
service fee (and interest if a payday loan). In the embodiments
discussed herein, instead the user could leave with an electronic
card 28 "containing" the "variable" amount of cash the user would
have normally received from the facility 24. The card 28 can be a
"one time use" cash card issued on behalf of a financial
institution 30, such as a bank, associated with the check cashing
facility 24 where the user is anonymous and with the user taking
the risk of the loss of the card 28 and where the card "expires"
and is no longer usable when the card balance reaches zero. The
card 28 can be (or can be upgraded into) a "rechargeable" cash card
issued on behalf of the financial institution 20, such as the bank,
associated with the check cashing facility 24 where the user 22 is
anonymous and with the user 22 taking the risk of the loss of the
card and where the card can have additional money/funds added to it
when the user 22 "cashes" another check at the check cashing
facility 24. The card 28 can be (or upgraded into) a debit card
issued on behalf of the financial institution 30, such as the bank,
(or facility 24) with which the check cashing facility 24 has a
relationship where the user 22 is not anonymous and where if the
card 28 becomes lost or stolen, the user 22 can be reimbursed for
any losses and where additional funds can be deposited into the
card account at the check cashing facility 24 or the financial
institution 30. The card 28 can also be (or be converted into) a
combined debit/credit card where again the user 22 is identified,
losses are protected and some "overdraft" is allowed based on a
credit limit established for the user 22. The card 28 can also be
or convert into a credit card if the user establishes a formal
banking account relationship with the financial institution 30 (or
facility 24) and still be used for depositing funds into the
account of the user 22 at the financial institution 30 (or facility
24).
[0024] In the situation discussed above, the facility 24, when
presented with the first check 26 to be cashed by user 22 or with
the payday loan request, has the facility operator 31 determine an
amount that the user 22 will receive after the check cashing fee,
loan fee and/or interest, etc. is considered. If the user 22
desires to have an electronic cash or funds card 28, the facility
operator 31 using a graphical user interface (GUI) (see FIG. 6) of
a check cashing facility computer 32 completes a card request form
indicating a type of card, and amount of money to be provided on
the card, and as needed, depending on the type of card, the users
identity, address, social security number, etc. The computer 32 can
be a typical desktop type machine. As an example, the user may
present a $100 check and the amount to be provided on the card may
be $90 ($100 less a $10 fee) or the user may present a $200 check
and the amount to be provided on the card may be $185 (200-15 fee).
Or the user may present a check stub from a previous paycheck where
the stub indicates a paycheck amount of $500, the amount placed on
the card could be $470, taking into account a fee of $25 and
interest of $5. That is, the amount placed on the card is variable.
In addition, depending on the rules of the facility 24, the card
may have a "hold back amount" or reserve amount of money that the
user 22 does not have access to for a few days after the card is
activated, so that the check can clear. For example, if the amount
to be placed on the card 28 is $300, there may be a hold back of
10% or $30 in this example, for a period of 3 days. During the
three days if the user 22 attempted to purchase more than $270 of
merchandise, an insufficient funds message would be provided to the
user 22. The computer 32 can store this information in a database
34 (see FIG. 5) of the facility 24.
[0025] The facility computer 32 can then send a card request
transaction 35 over a secure channel of a communication network 36,
such as the Internet, to a financial institution computer 38, such
as to a bank over a channel such as a home banking or ATM channel.
The computer 38 can be a server type machine or a network of
machines. The card request transaction indicates the type of card
requested, the amount of money, etc. The transaction is stored in a
database 40.
[0026] The financial institution computer 38 can debit a check/loan
facility account in the database 40 of the institution 38 for the
amount, create an account for the card of the type requested,
including an amount of funds credited to the card, a card
identifier number (account number), user identity information,
check cashing facility identification information, security
information, etc. and (if approved as needed) transmit an
authorization transaction 41 to the facility computer 32.
[0027] The computer 32 can store the authorization transaction 41
and the information thereof, such as the card number, amount of
money authorized, identity, etc., in the facility database 34. This
authorization transaction 41 authorizes the facility computer 32 at
the check cashing company or payday loan company, to produce an
electronic card via a card machine 42. The computer 32 can create
any needed card record to be stored in database 34 that includes
the amount of money "on" the card, the type of card, as needed a
card ID, user identity, etc. and can send the record to the card
machine 42 with a command to produce the card. As needed by the
type of card, the card machine 42 can produce an electronic card 28
with any needed embossing of card number and user name,
encoding/encrypting of a card electronic/magnetic stripe or smart
card chip with card number, amount, financial system routing number
of the institution computer, and security information, such as a
password, etc.
[0028] A card reader 44 can then scan the card 28 and the
information on the card can be displayed on the facility computer
32 to allow the operator 31 to confirm that the card 28 is the type
requested and includes the requested amount of money, and other
information needed for the type of card. When the produced card 28
is verified, the cashing facility computer 32 can send an issue
confirmation transaction 46 to the financial institution 38
confirming that the card 28 has been issued. The institution
computer 38 can then activate the card 28 and update database 40
accordingly. The user 22 can immediately (in a few seconds) access
the funds "on" or credited to the card 28 via an ATM 48, make a
purchase at a retail facility, such as a grocery store, using a
card reader 50, online, etc.
[0029] Once the card 28 has been provided to the user 22, the user
22 can then use the card 28 for a purchase via card readers 50 at
retail facilities, such as a grocery or clothing store, can obtain
cash via an automated teller machine 48 (ATM) and via electronic
purchase using a computer 52, such as purchase from a web store
like as Amazon. In each of these situations, a conventional
electronic debit type transaction is sent to the financial
institution 38 using the routing number, card number, etc. over a
financial network 54 and the amount of money on the card and stored
in the database 40 of the institution is debited and a credit is
issued to the financial institution associated with the purchase
transferring the purchase amount from the user 22 to the seller.
Each time a debit occurs, the check cashing facility computer 32
can be optionally informed so that the database 34 of the facility
22 can be updated.
[0030] When the card is empty or when another check is to be cashed
or loan obtained, the user can return to the facility 22 to cash a
second check, etc. and obtain another/second or recharged card as
desired. If the original card 28 is a rechargeable type card (or a
debit, debit/credit card, loan type), the user 22 can chose to add
the amount (less fees, etc.) of the second check or loan to the
card. To do this, the card 28 (rechargeable or non-rechargeable)
can be scanned by the card reader 44 and the information of the
card 28, is displayed on the display of the facility computer 32.
In obtaining this information, the computer 32 can send a status
request transaction 54 to the financial institution computer 38
using the card identifier and the institution computer 38 can
return the card status information obtained from the database 40
and such can be stored in database 34. The facility computer 32 can
also obtain status information from the facility database 34. This
information can include the card number, the amount currently on
the card (which can be an amount owed if the card 28 has a credit
capability), an amount history of funds amounts placed on the card
28, a number of times the card 28 has been recharged, user name and
address, etc. Using the status information, a form GUI can be
displayed on the facility computer 32 that allows the card to be
recharged, the form is completed by the operator 31 with the amount
to be placed on the card and an update transaction 56 is
transmitted to the computer 38 and database 34 can be updated. The
computer 38 can update the database 40 with the added amount of
funds credited to the user (and debited from the facility account),
send an authorization transaction to the computer 32 where it can
be stored, the card can be updated by the card machine, verified,
etc.
[0031] If the user has cashed checks or obtained loans for
non-rechargeable cards a number of times or the card 28 has been
recharged a number of times greater than a threshold number
indicating that the user is a "reliable" customer for the type of
the current card as set by the facility 24 or financial institution
34 using a scoring model, such as a credit scoring model, the
facility computer 32 can display a prompt to the operator 31 to ask
the user 22 if the user 22 would like to upgrade the card type from
non-rechargeable to rechargeable, or from rechargeable to debit, or
from debit to debit/credit, etc. depending on the type of the
current card. If the user agrees to an upgrade, the display GUI can
be updated with the needed information, such as the change to the
card type, status, name address, etc. as needed for the upgraded
card. The information, including the amount to be added to the card
can be sent in an upgrade update transaction to the financial
institution, the computer 38 can change the type of card, etc. in
the institution database 40, the institution computer 38 can send
an authorization transaction to computer 32, the facility database
34 can be updated and the card machine can update the current card
or produce a new card as needed. For example, if the card is
recharged the magnetic stripe or smart chip of the current card can
be updated with the new balance and if the card is an upgraded
card, such as from cash to debit, the card machine 42 can produce a
new card with an appropriate magnetic stripe, embossing, etc.
[0032] Of course, if the card 28 is a credit type card, the amount
to be added to the card can be adjusted by a payment on the debt
accumulated on the card for any credit transactions for which the
card has been used. For example, assume the card is the credit
type, and the card has been used to charge $100 for purchases, when
a new check is cashed (or loan taken), say for $500, a payment can
be automatically be made, say a minimum payment of 10% of the
balance, in this case $10, on the credit card along with accounting
for fees, etc.
[0033] A process 82 (see FIG. 2) performed by the check cashing
facility computer 32 can begin 84 with the operator activating a
button or control on a GUI to indicate a new card is to be issued
or by the card reader 44 being used to scan a card. The system of
the institution computer 32 can determine 86 if a new card is being
created, if so, the system can determine 88 the type of card from
the inputs by the operator. If the card type is non-rechargeable
(NR), the system can obtain 90 the amount to be placed on the card
28 from the GUI 392 (see FIG. 6) edited by the operator, send 92
the request to the computer 38 and wait 94 for a reply. Note the
request 92 may also include other types of request information,
such as a request for a card upgrade. Additional information may
also be included in the request, such as the check routing number
that will allow the computer 38 to confirm that the funds are
available in the account of the writer of the check to cover the
amount of the check. If the reply from the financial institution 30
is not 96 a card authorization, a message can be displayed 98 to
the operator 31 concerning the problem and the process can return
to allow the operator to start 84 the process again as desired. Or
the computers 32 and 38 can enter into an error correction session
in which the operator 31 is allowed to correct any information that
may be causing the failure of authorization. If the reply is an
authorization, the authorization can be stored 100 in the database
34, an appropriate card machine record can be created and the
command to produce a card can be sent 101 to the card machine 42.
The card 28 can then be read 102 by the card reader 44, the
information on the card can be displayed for the operator to
verify. If the operator indicates 104 that the card is correct, the
institution computer 32 can send 106 the activate transaction to
the computer 38 and the card can be activated 106 allowing
substantially immediate access to the funds by the user 22. If the
card 28 is not correct, a cancel transaction can be sent 108 to the
computer 38 and the operator can start again 84. The institution
computer 38 can then reverse the debit to the facility master
account at the financial institution 30, reverse the credit to the
newly created card account, and can return the card number to the
pool of unassigned numbers or marked as invalid. As an alternative,
the computers 32 and 38 can establish an error correction session
in which information in error can be corrected by the operator and
the card verified.
[0034] If the new card is to be a rechargeable type card
(rechargeable cash R, debit D, debit/credit D/C), the type
information can be obtained 110 from the GUI as entered by the
operator, the amount of funds to be placed on the card obtained
112, and the identity of the user 22, as needed, can also be
obtained 114 from the GUI. This information can be sent 92 to the
financial institution computer 38 and the new rechargeable type
card can be produced, etc.
[0035] If a new card is not being created, the system, using the
card number from the scanned card (or as entered by the operator),
can read 116 the database(s) 34 (and/or sends a request to the
computer 38) for information concerning whether the user qualifies
for a card upgrade and determine 118 whether an upgrade is
appropriate. If so, a prompt can be provided 120 to the operator
indicating a type of upgrade permitted. The operator can ask the
user whether they would liked to upgrade the card and explain the
effect of an upgrade, such as a requirement for the user 22 to
provide name and address for the card. If the user accepts 122 the
upgrade, the type of the card can be changed 124, the amount to be
added to the upgraded card obtained 112, along with identity
information 114, as needed, and the card can be produced 101 by the
card machine and given to the user.
[0036] If an upgrade is not warranted, the system can enter 126 the
amount to be added to the card from the operator completed GUI,
send 128 an update request to computer 38 and wait 130 for a reply.
When the reply is received, it can be checked 132 to see if it is
an authorization reply. If not authorized, a message as previously
discussed can be displayed 98. If the reply is an authorization,
the authorization can be stored 134 in the database 34, an
appropriate card record created and a command with the record can
be sent 136 to the card machine 42 to update the card 28. The
updated card 28 can be read 102 and verified 104 as previously
discussed.
[0037] When the financial institution machine 38 receives 194 a
transaction from the check cashing facility computer 32, a process
192, as depicted in FIG. 3, can be performed that includes a
determination 196 as to whether the transaction concerns a new
card. If so, the type of card can be determined from the type in
the received transaction. When the type is non-rechargeable, or
cash card or rechargeable cash card, a new card number for a new
account can be obtained 198 for the type. In this situation a card
number assignment application can be queried for the new card and
account number. The database 40 can be then updated 200 with the
new card/account number and the amount to be credited to the card.
The update can also debit the facility account in database 40 for
the amount credited to the card. In addition, if the transaction is
based on the cashing of a check, such as a pay check, bank routing
information from the check can be used to confirm or verify that
funds are available sufficient to cover the check and place a hold
on the finds in the account of the writer of the check. Other types
of transaction also may need verification, such as a payday loan or
a short-term loan. Assuming that such verification procedures are
completed successfully, an authorization to produce the new card by
the facility 24 can then be transmitted 202 to the facility
computer 32 via a secure channel over the network 36 to the
facility 24 and includes the card number, the funds amount on or
credited to the card, information associated with embossing the
card, security information, etc. with appropriate portions of the
information encrypted. The system 38 can then await 204 a reply.
When a reply is received, it can be checked to see if it is a
verification transaction that allows the card to be activated 206.
When the card is to be activated, the database 40 can be updated
206 to flag the card as active allowing access to the funds. If the
card is not to be activated, an appropriate message can be sent 210
to computer 32 and displayed to the operator 31 who can then seek
to fix any error.
[0038] When the new card type is debit or debit D/credit C/loan L,
the user can be scored 212 as to whether the institution is willing
to grant a card of the type requested to the user 22. This scoring
takes into account whether the facility (check cash or payday loan)
is granting the credit/loan or if the institution or bank is
participating in or making the loan or providing the credit. If the
user does not pass 214 the score test, a message can be sent 210 to
the facility machine 32 and displayed to the operator 31 who can
then address any problem. If the user passes, the system can obtain
198 a new card number/account for the type requested, the database
40 can be updated 200, etc.
[0039] When the received transaction (196) indicates that the card
is not a new card, the database 40 can be accessed 216 for the
information associated with the card, the user scored 218 to
determine 220 whether an upgrade is warranted. If not, the amount
to be added to the card can be used to update 200 the database 40.
Again this can involve debiting the facility account and crediting
the user card account. If the card is a credit type card, a payment
on the credit card debt can made along with a credit to the
financial institution account for the credit card payment. If the
card has a savings component, the appropriate adjustments to add
money to a savings account can be made. If an upgrade is warranted,
an upgrade offer prompt message can be sent 222 to the facility
machine 32 where it can be displayed to the operator 31 who can
query the user 22 about whether the upgrade offer is accepted. The
computer 38 can wait 224 for a reply. If the reply indicates that
the offer is not accepted 226, the database 40 can be updated 200
as discussed previously. If the upgrade is accepted 226, the card
type in the database 40 can updated 228 (a new number is obtained,
if needed), the amount updated and as needed the address, name etc.
for the user 22 can also be updated. An authorization for the new
type card can be sent 202 to the facility for production or update
by the card machine 42 as needed.
[0040] When the financial institution machine receives 254 a debit
transaction, such as a debit transaction that the user initiates by
making a purchase at a retail store (or a cash withdrawal from an
ATM), as depicted by the process 252 of FIG. 4, the computer 38 can
access 256 the database 40 to obtain the account information
(facility, facility routing number, card type, credit limit, if
any, etc.) and funds balance information. The transaction can
identify the source of the transaction, the amount of the debit,
the routing number of the financial institution serving the source,
etc. The amount of the debit transaction can be compared 258 to the
account balance to determine whether there are sufficient funds in
the account for the card to cover the debit transaction. If not,
the system can check 260 to see if the card type is a debit/credit
card type. If not a debit type, the computer can send 262 an
insufficient funds message to the source of the debit transaction,
such as the retail establishment, to deny the debit. If the card is
a credit type, the credit limit in conjunction with the current
balance can be compared 264 to the debit transaction amount to
determine whether the credit limit would be exceeded by the
transaction. If so, the insufficient funds message can be sent 262.
If there are sufficient funds or a sufficient credit limit or a
sufficient combination, the user's card account balance can be
debited 266. The source of the transaction can be then credited
268. If the source is a customer of the financial institution 30,
the account of the source in the database 40 can be credited. If
the source is not a customer of the institution 30, a credit
transaction can be sent to the financial institution of the source
using the routing institution number in the transaction. Of course
any debits/credits needed to reconcile this credit transaction
between financial institutions can also be made in the books of the
institutions. The computer 38 can then send 270 an update of the
user's balance to the facility computer 32 where database 34 is
updated, if needed.
[0041] A database 34 that can be used by the check cashing facility
24 is illustrated in FIG. 5. The database 34 can include a series
of records 312 associated with the issued cards and cardholders
along with a record 314 for the check cashing facility itself. The
card record 312 includes a card identifier 316, such as a card
number that appears on a typical debit card. If this card includes
any related accounts, such a savings account (that could be
credited each time funds are to be added to a card, check
amount-savings amount=card amount), the record would also include
such account numbers linked to this ID 316. A type field 318
specifies the type of card (non-rechargeable cash, rechargeable
cash, debit, loan, etc). A balance field 320 can hold the current
card balance (positive when cash and negative when a loan) when the
facility 24 is updated with the current balance. A reserve field
322 and a reserve time field 324 can hold the amount of money being
reserved and the amount of time or release date indicating when the
reserve amount is released to the user 22 after a card is created
or recharged. Name 326, address 328, social security number and
other user identification fields can also be provided. A financial
institution identification field 330 can be provided that can
include the name address, institution identification, such as
institution financial system electronic routing number. A card
status field 332 indicating card status (active, expired, lost,
etc.) can also be provided. A card expiration date field 334 can
also be included in the record. This database 34 can also include
other information not shown, such as the history of the use of the
card (credit/charge and debit transactions list), credit score of
the holder, an amount of each check cashed, a check cashing fee
applied by the facility, interest applied to a payday loan, a fee
amount if any applied by the financial institution 30, savings
increment, etc.
[0042] The database 34 also includes the facility record 314. This
record 314 can have a field for storing the facility identifier
352, which like the financial institution ID field 330 noted above,
can include check cashing facility identification information
including address, financial network routing number, etc. The
balance 354 of the check cashing facility account at the financial
institution associated with the identification field therefore 356
can also be included. If the facility provides both check cashing
and payday loan services, two fields may be needed, one for checks
cashed and one for loans made. If the facility 24 interacts with
more than one financial institution, the fields 354 and 356 can be
duplicated as many times as needed.
[0043] The database 40 of the financial institution 30 could also
include the card/user information stored in the database 34 as well
as the information of the check cashing facility 24 (such as
account balance), and in addition, can include the detail
information associated with the card transactions, such as the
retailer name, retailer ID, purchase ID, type (purchase, cash
withdrawal) etc. of the transactions made on the card.
[0044] A graphical user interface (GUI) 392 that can be used for
issuing new cards or recharging previously issued cards is depicted
n FIG. 6. The GUI 392 includes a balance display field or frame 394
where a current balance on the card is displayed. An amount of a
check being cashed or payday loan being made can be displayed in an
amount frame 396. Any fee (including interest if a loan) charged by
the check cashing facility and/or the financial institution
facility can be displayed in frame 398. Any reserve amount and
reserve expiration date can be shown in frames 400 and 402. An
amount to be added to the card and available for immediate use
(check minus reserve) based on any fees, reserves, etc. can be
optionally displayed (not shown). The users name and address,
depending on the type of card to be issued can also be displayed in
frames 404 and 406. A card identifier (ID) as issued by the
financial institution 30 can be displayed in frame 408. A type of
card can be indicated in frames 410-419. Any account linked to the
card, along with any balance therein can be shown in frames 420 and
422. If the card has a savings component or a debt payment
component, a frame 424 can be provided where the amount to be
transferred is shown and which adjusts the amount displayed in
frame 394. Other frames (not shown) can also be provided for
displaying other information, such as messages from the financial
institution, card status, credit score, etc.
[0045] Each transaction that is transmitted among the entities
involved with this system has a number of fields. For example, a
non-rechargeable cash transaction 460 (see FIG. 7) where the user
is cashing a paycheck can include a field 462 for the amount of the
check, a field 464 for the amount that is deposited on the card, a
field 466 for a reserve amount, a field 468 for any fee and a field
470 for an expiration date, a field 472 for the financial
institution routing or identification information and a field 474
for a facility identifier. The other transactions of the system
will have appropriate fields as discussed herein.
[0046] The card issued to a user 22 as discussed above can be a
number of different types (cash, debit, credit, etc). Additional
types are also possible. For example, the credit card type can have
an automatic payment capability that pays on any debt that has been
accumulated by using the card. The payment can be made each time
the card is recharged or at periodic intervals, such as once a
month, when the balance is positive. The payment can be minimum
amount, a fixed payment amount or a payoff that brings the debt to
zero. The transfers associated with this card type can occur during
the operations discussed above.
[0047] The card, if identity information is provided, can also
include a savings component as mentioned above. The card can be
associated with a savings account or type of funds accumulation
account (college savings, etc) where each time the card is
recharged a transfer of funds into the savings account occurs. The
transfer can also occur periodically, such as once a month when the
card has a positive balance. The amount transferred can be a
percentage of the recharge amount or card balance, a fixed amount,
etc. The transfers associated with this card type can occur during
the operations discussed above.
[0048] When the card is debit/credit or credit type card, the
credit capability can have a low limit when initially created or
upgraded to allow for "overdrafts" with the limit rising over time,
as the financial institution or facility deems appropriate based on
the credit score of the user, etc.
[0049] The cards can also be the type that earns interest. That is,
positive balances on the cards can earn interest for the users 22
and if so, the balance on the card maintained by the check cashing
facility may need to be updated or the interest placed in the
savings/checking component.
[0050] The user cards/accounts at the financial institution 30 can
be set up as sub accounts of the master check cashing facility
account, allowing the check cashing facility to earn interest on
un-spent funds on the cards. Alternatively, the cards/accounts can
be set up as sub accounts of the financial institution master
account (such as a bank master sub account) where such unspent
funds provide funds available for other uses by the financial
institution, such as overnight lending to other institutions.
[0051] If the financial institution 30 charges a fee for a new card
or for adding funds to a card or for any purchase transactions made
with the card, these fees are debited from the amounted credited to
the card during the above discussed operations.
[0052] As discussed above, this card system can be integrated with
a payday loan service where the user 22 obtains a loan in advance
of a pay check and provides a post dated check that is dated the
pay day and that the facility 24 deposits on pay day. In such a
service, when the check is deposited by the facility, the loan,
that is the negative balance on the card, can be converted into a
positive balance, if using the card has not spent all of the funds
of the check. For example, assume that the user obtains a payday
loan of $100 and with the service charge and interest post dates a
check for $110. The card has a cash balance (the loan) of $100.
Assume that the user has spent $75, then when the check is
deposited, the loan of $100 becomes a positive cash balance of $25.
This service will also work for a conventional short-term loan
where the card is charged with the cash amount of the loan and when
the loan is paid any balance remaining on the card becomes a
positive cash balance.
[0053] The discussion above has considered a situation where a
single check cashing facility interacts with the financial system.
It is possible for there to a chain of such facilities that have a
database for each site and/or a master database for the chain is
maintained for the chain. The transactions can be routed through a
chain master computer to the financial system.
[0054] As mentioned above, any loans to users can be made by the
facility 24 or by an entity of the financial system, such as the
bank, or by both where the risk of default is shared. The
authorization transaction sent to the bank in such a situation
would include a filed indicating this type of shared risk
transaction and the credit scoring for approval of the transaction
can reflect the risk sharing. Other financial institutions can also
be involved, such as savings and loan companies and credit
unions.
[0055] The card can be provided with a personal identification
number (PIN) that would need to be entered into a transaction
terminal for getting cash or making purchases to discourage theft
of the card.
[0056] The embodiments can be implemented in computing hardware
(computing apparatus) and/or software, such as (in a non-limiting
example) any computer that can store, retrieve, process and/or
output data and/or communicate with other computers. The results
produced can be displayed on a display of the computing hardware. A
program/software implementing the embodiments may be recorded on
computer-readable media comprising computer-readable recording
media. The program/software implementing the embodiments may also
be transmitted over transmission communication media. Examples of
the computer-readable recording media include a magnetic recording
apparatus, an optical disk, a magneto-optical disk, and/or a
semiconductor memory (for example, RAM, ROM, etc.). Examples of the
magnetic recording apparatus include a hard disk device (HDD), a
flexible disk (FD), and a magnetic tape (MT). Examples of the
optical disk include a DVD (Digital Versatile Disc), a DVD-RAM, a
CD-ROM (Compact Disc-Read Only Memory), and a CD-R (Recordable)/RW.
An example of a communication media includes a carrier-wave
signal.
[0057] Further, according to an aspect of the embodiments, any
combinations of the described features, functions and/or operations
can be provided.
[0058] The many features and advantages of the embodiments are
apparent from the detailed specification and, thus, it is intended
by the appended claims to cover all such features and advantages of
the embodiments that fall within the true spirit and scope thereof.
Further, since numerous modifications and changes will readily
occur to those skilled in the art, it is not desired to limit the
inventive embodiments to the exact construction and operation
illustrated and described, and accordingly all suitable
modifications and equivalents may be resorted to, falling within
the scope thereof.
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