Methods and systems for redeeming a stored-value card
View Patent ↗A reloadable debit card system includes an issuing institution whereat a main account is set up and multiple sub-accounts are established thereunder. Each sub-account corresponds to a respective cardholder. The sub-accounts are established and debit cards are printed with respective sub-account numbers prior to distributing the cards to an 80 POS distribution network. The cards are purchased from the POS member establishments for predetermined incremental values. Value can be added to such cards in such increments. A reloadable debit card method includes the steps of establishing a main account at an issuing institution and establishing sub-accounts thereunder. Multiple debit cards are printed with the respective sub-account numbers. The cards are then distributed to POS establishments for sale to cardholders, resulting in credits to the sub-accounts. Goods and services can be purchased with the cards whereupon the sub-accounts are debited. Negotiable instruments, such as money orders and the like, can optionally be purchased with the cards.
1. A method of redeeming a stored-value card, the method comprising:
a host computer receiving information of a sale of the stored value card to a consumer, the received information comprising a card identifier stored in the stored value card, and initial value of funds stored in the stored value card;
the host computer establishing under a main account, a sub-account, wherein an individual consumer is identified as a holder of the sub-account, and wherein the sub-account is associated with the card identifier stored in the store value card and the host computer credits the sub-account with the initial stored value of funds as an account balance;
receiving a redemption request at the host computer via one or more computational devices at a point-of-sale establishment communicably coupled with the host computer, the redemption request comprising a card identifier extracted from the stored-value card and a payment amount to be redeemed;
the host computer identifying the sub-account associated with the stored-value card from the card identifier associated with the redemption request;
the host computer generating a negotiable instrument in an amount of the payment or less than the payment based on the account balance of the identified sub-account, the negotiable instrument payable to the identified holder of the sub-account; and
the host computer transmitting the generated negotiable instrument to the point-of-sale via the one or more computational devices at the point-of-sale establishment.
2. The method recited in claim 1 wherein the negotiable instrument comprises a money order.
3. The method recited in claim 1 wherein:
the stored-value card comprises a magnetic stripe; and
the card identifier was extracted from the magnetic stripe.
4. The method recited in claim 1 wherein the redemption request further comprises a purported PIN, the method further comprising confirming that the purported PIN is the same as a PIN associated with the identified sub-account.
5. The method recited in claim 1 wherein the amount is equal to the balance of the identified sub-account.
6. The method recited in claim 1 further comprising:
receiving a reload request at the host computer, the reload request comprising the card identifier and a reload amount;
identifying the sub-account associated with the stored-value card from the card identifier; and
issuing an instruction to increase the amount of the identified sub-account by the reload amount.
7. A host computer communicatively connected with computational devices at point-of-sale establishments, the host computer comprising:
a processor;
and a memory unit communicably linked to the processor;
the memory unit having stored instructions executable by the processor comprising;
instructions to receive information of a sale of a stored-value card from at least one of the computational devices at a point-of-sale establishment to a consumer, the received information comprising a card identifier stored in the stored value card, and initial value of funds stored in the stored value card;
instructions to establish, under a main account, a sub-account, wherein the individual consumer is identified as a holder of the sub-account, and wherein the sub-account is associated with the card identifier stored in the store value card;
instructions to credit the sub-account with the initial stored value of funds as an account balance;
instructions to receive a redemption request via one or more computational devices at a point-of-sale establishment, the redemption request comprising a card identifier extracted from a stored-value card and a payment amount to be redeemed;
instructions to identify the sub-account associated with the stored-value card from the card identifier associated with the redemption request;
instructions to generate a negotiable instrument in an amount of the payment or less than the payment amount based on the account balance of the identified sub-account, the negotiable instrument payable to the identified holder of the sub-account; and
instructions to transmit the generated negotiable instrument to the point-of-sale via the one or more computational devices at the point-of-sale establishment.
8. The host computer recited in claim 7 wherein the negotiable instrument comprises a money order.
9. The host computer recited in claim 7 wherein:
the stored-value card comprises a magnetic stripe; and
the card identifier was extracted from the magnetic stripe.
10. The host computer recited in claim 7 wherein the redemption request further comprises a purported PIN, the host computer further comprising programming instructions to confirm that the purported PIN is the same as a PIN associated with the identified sub-account.
11. The host computer recited in claim 7 wherein the amount is equal to the balance of the identified sub-account.
12. The host computer recited in claim 7 further comprising:
programming instructions to receive a reload request, the reload request comprising the card identifier and a reload amount;
programming instructions to identify the sub-account associated with the stored-value card from the card identifier; and
programming instructions to issue an instruction to increase the amount of the identified sub-account by the reload amount.