Secondary market for gift cards where secondary market transactions do not physically transfer the same gift card between a seller and a purchaser

A secondary entity can purchase a gift card from a card holder. The secondary entity can extract complete information including identification and access information from the gift card and store this information on a database. The physical artifact of the gift card can then be optionally discarded or recycled. This information including the credit value can then be sold independent of the physical artifact (e.g., original gift card object) within the secondary market. When sold, the specific information for the original gift card is extracted from the database and programmed into a new artifact (i.e., blank gift card), which may be at a different location as the original gift card. For example, the credit value can be made accessible from a different physical artifact, which can be physically conveyed to a value purchaser. This different physical artifact can be utilized in the same manner as the original gift card. In one embodiment, the secondary entity can be remunerated for facilitating the transactions between the card holder and the value purchaser.

BACKGROUND

The present invention relates to the field of gift cards and, more specifically, to a secondary market for gift cards, where a secondary market transaction does not physically transfer the same gift card between a seller and a purchaser.

Many retailers of consumer goods and services institute gift cards, where a value of credit valid for purchases from that retailer can be purchased using a negotiable instrument (e.g., cash or its equivalent). The credit on the gift card is treated as a cash equivalent by the retailer, but otherwise lacks value (e.g., is unable to be utilized for purchases with other retailers). The gift card represents a credit artifact that is freely transferrable between consumers. That is, the gift card is not bound to a specific purchaser (as is a credit or debit card), but may be conveyed to anyone, where the retailer is contractually obligated to honor the credit on the card, when the card is presented by a bearer. Thus, a gift card is considered a bearer instrument.

The credit value of the gift card cannot typically be converted back to cash, once purchased initially. Instead, the credit value of the gift card is only usable for purchases between a consumer (e.g., bearer) and the identified retailer. For example, a gift card associated with Retailer X must be used for purchases of Retailer X only and cannot be used for purchases involving other retailers. It is not uncommon for a consumer to receive or possess gift cards for one or more retailers that the consumer doesn't favor. In this case, the consumer has credit for a retailer by virtue of possessing/owning the gift card, which the consumer will not use (or at least which the consumer values significantly less than the credit value accessible via the gift card, which can be referred to as the face value of the gift card).

BRIEF SUMMARY

One embodiment of the disclosure is for a secondary market for gift cards linked to a retailer credit. In this secondary market, a business entity not directly associated with the original purchase of a gift card purchases the gift card from a bearer (also referred to as a card holder). The gift card can be a physical artifact conveyed to the business entity (referred to as a secondary entity) involved in the secondary market. The secondary entity can read complete information including identification and accessing information from the gift card, can store this information on a database, and may thereafter discard or recycle the physical artifact of the gift card (i.e., the card itself). This information including the credit value that the original gift card provided access to can then be sold independent of the physical artifact (e.g., original gift card object) within the secondary market. When sold, the specific information for the original gift card is extracted from the database and is programmed into a new artifact (i.e. blank gift card), which may be at a different location as the original gift card, thus providing an equivalent version of the original gift card. For example, the credit value can be made accessible from a different physical artifact, which can be physically conveyed to a purchaser (referred to as a value purchaser). In one embodiment, making the credit value accessible can occur by placing credit accessing information on the different physical artifact, where the credit value is actually maintained by a gift card accounting system that is usually controlled by the retailer. This different physical artifact can be utilized in the same manner as the original gift card. In one embodiment, the secondary entity can be remunerated for facilitating the transactions between the original purchaser (card holder) and the secondary market purchaser (value purchaser).

The disclosure can have numerous aspects, which are detailed herein. For example, one aspect of the disclosure can include a system, an apparatus, a computer program product, and a method for providing credit value of a gift card to a purchaser within a secondary market independent of physical transfer of the gift card originally used to access the credit value. In this aspect, a gift card can be received from a gift card holder. The gift card can be a physical artifact that provides access to a credit value. The credit value can be valid only for a specific retailer. The gift card can be a bearer instrument able to be utilized independent of an identity of a user of the gift card, thereby permitting any holder of the gift card to utilize the gift card regardless of holder identity. The gift card holder can be remunerated in a first secondary market transaction in exchange for transfer of gift card ownership from the gift card holder to a secondary market entity. The credit value of the gift card can be resold in a second secondary market transaction in which ownership of the credit value is transferred from the secondary entity to a value purchaser. The reselling occurs without physically transferring the gift card received from the gift card holder to the value purchaser. This is accomplished by reading the credit access information (typically stored in the mag strip or RFID or smart card) of the original gift card and by storing this information onto a database and then programming this information onto a secondary blank gift card at the same or different physical location than the original gift card. After the reselling occurs, the value purchaser is able to utilize the credit value in commerce transactions with the specific retailer.

Another aspect of the disclosure can include a gift card that is a physical artifact that provides access to a credit value. The gift card can include a graphic printed on the gift card that includes a mark, icon, text, or other identifier that corresponds to at least one specific retailer. The card can also include a key associated with a value credit for the at least one specific retailer. The gift card can be a non-negotiable instrument that is a bearer instrument. The gift card can be considered to provide access to the credit value, as a bearer is able to present the gift card to at least one specific retailer during a transaction in which the bearer purchases goods or services from the at least one retailer. The credit value of the gift card can be utilized as an equivalent of cash during the transaction. The credit value of the gift card can be placed on the gift card during a secondary market transaction. The original gift card can be a physical artifact different from this gift card.

Another aspect of the disclosure can include a system, an apparatus, a computer program product, and a method for handling gift cards. In this aspect, a secondary entity can purchase an original gift card from a card holder. The gift card can provide access to a quantity of pre-paid credit, which is referred to as a credit value, for a particular retailer. The original gift card can include access information for this credit value. The access information can provide access to a gift card accounting system, which maintains the credit value of the original gift card with a data base. The gift card accounting system can ensure that the retailer is provided with the credit value when the original gift card is used in a commercial transaction. The secondary entity transferring the access information to a different gift card, where the different gift card provides access to the credit value. The different gift card can be sold to a value purchaser.

DETAILED DESCRIPTION

FIG. 1shows a diagram for gift card value transfer via a secondary market without transfer a physical artifact in accordance with an embodiment of the inventive arrangements disclosed herein.FIG. 1is shown in multiple stages110,130,150, and170. These stages can occur at different times. An arbitrary delay period can exist between the stages110,130,150, and170.

In stage110, an original sale120of a gift card116can occur between a purchaser122and a gift card seller114. The gift card seller114can originate the sale of the gift card116in a primary market112. In other words, the gift card seller114can be the retailer or can have a business affiliation with a retailer180(or set of retailers) to which the gift card116corresponds. This business affiliation (that of a licensed seller of gift cards for a retailer) can be that the retailer180authorizes the gift card seller114to provide credit value118for retailer180purchases for a fee. The purchaser122can pay this fee, which may include a possible surcharge added by the gift card seller114. The transaction between the seller114and the purchaser122can be referred to as an original sale120.

The gift card116can be a physical artifact that provides access to a credit value118. This value118can be used for purchases with the retailer180, as a cash equivalent. The credit value118can represent an amount of pre-paid credit for retailer180purchases. The gift card116itself can be considered a non-negotiable financial instrument, which is a bearer instrument, as it is able to be utilized by any holder regardless of holder identity.

As such, in stage128, a series of optional transfers of the gift card116from one owner to another may occur. Thus, a card holder134of stage130may or may not be the same individual as the purchaser122. Stage130includes a secondary market transaction132, where the card holder134transfers ownership and/or physical possession of the gift card116to a secondary entity136for remuneration135. The secondary entity136can be a legal entity (business, organization, individual, etc.) that may be unaffiliated with the retailer180or the gift card seller114. That is, the secondary entity136need not have a contractual relationship with retailer180to conduct secondary market transaction132(or secondary market transaction152).

The secondary entity136can extract the information that provides access to the credit value118from the payment artifact116. This credit value118and/or any access information needed to realize the value118can be, for example, stored in a storage medium140(such as mag strip, RFID, or Smartcard) as a digitally encoded record142. Once the access information for the credit value118has been extracted from gift card116, the physical artifact of the gift card116can be optionally destroyed or recycled.

This need not happen in all embodiments, as the credit value118is accessible based on access information whether or not the original gift card116has been destroyed or recycled. Destroying or recycling the original gift card116can be a safeguard to ensure that the credit value118isn't diminished after ownership transfer to the secondary entity136occurs. For example, in one contemplated embodiment, the original gift card116can be intentionally preserved by the secondary entity136, to serve as proof of ownership of the original gift card116and/or to provide a “backup” of the access information for the credit value118, should some system error occur (such as a record142being corrupted).

In stage150, secondary market transaction152can occur at the same or a different physical location (after an optional delay period from transaction132of an arbitrary duration) between a value purchaser154and the secondary entity136. In transaction152, value purchaser154can provide remuneration155in exchange for ownership of the credit value118. When ownership of the credit value118is transferred, records142of data store140can be updated accordingly to reflect this transfer. During secondary market transaction152, the credit value118(or access information for using the credit value118) may, but need not, be encoded on a physical payment artifact different from the physical artifact represented by gift card116.

A series of zero to more (0 . . . N) optional transfers of the value118can occur after the secondary market transaction152, as shown by step160. Thus, the ultimate possessor (consumer182) of the credit value118may or may not be the value purchaser154. In stage170, a commercial transaction184can occur between the consumer182and retailer180, where the credit value118is provided in exchange for receiving a good/service188from retailer180.

It should be appreciated that a quantity of the credit value118may or may not remain a constant throughout transaction120,132,152, and184. For example, the entire amount of the gift card116from the original sale120may be transferred to consumer182and used during commerce transaction184. In another example, a portion of the value credit value118can be used between original sale120and secondary transaction132, which causes the value indicated by record142to differ from the origin purchase value of sale120. Similarly, the credit value118transferred to purchaser154during transaction152may not be the same as the value118used in commercial transaction184. For example, consumer182can utilize a portion of the value118, while retaining another portion. Additionally, some of the credit value118can be used for purchases with the retailer180during any of the transfer-of-ownership periods, represented by step160.

FIG. 2illustrates differences between an original gift card and artifacts ultimately utilized during a commercial transaction where value from the original gift card is utilized.

The original gift card210(e.g., the gift card116provided to purchaser122in the original sale120) can include a graphic212printed on the front and/or back of the card210. An optional graphic213can be part of graphic212. Graphic213can indicates the retailer (e.g., retailer180) or set of retailers to which the gift card210corresponds. For example, the graphic213can include a logo, text, and the like. The gift card210can optionally include a value indication214that indicates a credit value that the gift card210provided access to at the time of the original sale. It should be emphasized that indication214is optional, as it is increasingly common for gift cards210to not include a value indication214, especially in situations where a generic card can be purchased for any value desired by the original purchaser. Gift card210can also include a region and/or component216within which access information needed for utilizing the credit value is stored. Commonly, component216is implemented as a magnetic strip, which contains digitally encoded identification information for accessing the credit value. Original gift card210is not limited to use of a magnetic strip, however, and other mechanisms are contemplated, such as a barcode or an RFID storage region.

As noted byFIG. 1, the value118provided to a value purchaser154in the secondary market transaction152may be provided via a number of different mechanisms. Use of a different mechanism (other than the original gift card116,210) can be highly advantageous from a perspective of inventory management, transportation cost (e.g., shipping/mailing gift cards from one location to another), transaction time, etc.

To illustrate, a data store140(network accessible) can be established, which interacts with a plurality of geographically distributed locations (e.g., storefronts, kiosks, and the like). Any of these locations can receive an original gift card116,210and upload information for accessing the credit value to the data store (e.g., secondary market transaction132). This accessing information for the credit value can also be obtained from the data store and provided to a value purchaser (e.g., secondary market transaction152). The contemplated and disclosed secondary market can efficiently and flexibly transfer credit value of a gift card (which can actually transfer accessing information for the credit value) in a variety of manners not possible without the innovations detailed in the disclosure.

For example, credit value can be flexibly provided to value purchasers in a variety of forms (embodiments220,240,250, and260for example). In one contemplated embodiment, multiple gift cards220can be used to encode a shared credit value from a single original gift card210. Thus, a set of family members (each having their own physical gift card220) can share a credit value, even if these family members are located across the country. In this embodiment, the sharing occurs without significantly altering existent gift-card infrastructures. That is, each of the set of multiple gift cards220can include accessing information for the gift card accounting system, which records the credit value. Each time any of these multiple cards220is used, the credit value maintained by the accounting system is diminished accordingly.

One option of the disclosure is to provide credit value during a secondary market transaction within a physical gift card220. Specifically, this can mean writing access information to the physical gift card220, where the access information is linked to a gift card accounting system. Like gift card210, gift card220can include a graphic222, an optional value indication224, a value access component226, and the like. The graphic222can be the same or can be different from the graphic214found on the original card210. For example, a smaller image of the original graphic214can be shown on the card220along with a logo or other identifier223for the secondary entity that conducted the secondary market transactions (e.g., transaction132and/or152). Thus, the graphic222of gift card220can include a branding and marketing opportunity (image223) for the secondary entity to promote the secondary transactions involving gift cards.

Of course, any graphic desired can be utilized as the graphic222of gift card220. This can be highly advantageous to value purchasers (e.g., purchaser154), who may not be able to customize the original gift card210to suit his/her preferences. For example, a business entity may provide gift cards to their clients at holiday times, yet strongly desire to brand these cards, which is possible with card220even if it is not possible with the original gift card210. In one embodiment, a value purchaser can customize the gift card220with any desired graphic222, such as a graphic uploaded by the value purchaser and able to be printed to card220. For example, a family may want to give gift cards for the holidays, which have a family photo (e.g., a custom graphic222) on them.

Additionally, in one embodiment, a different type of access component226can be used on gift card220than what is used on the original gift card210. For example, the original gift card210can include only a magnetic strip, which makes it difficult if not impossible to use the credit value of the gift card210for Web purchases. The component226of the corresponding card can include a magnetic strip able to be used in a manner equivalent to the original card's (210) magnetic strip as well as include an access code, which can be used for Web purchases at the retailer's Web site. In another embodiment, the gift card220from the secondary market can include an RFID tag for RFID enabled point-of-sale devices, even when the original gift card210lacks such a mechanism.

In one contemplated embodiment, the gift card220can be a reusable one used for loading value from any set of secondary market transactions. In such an embodiment, credit value obtained from multiple original gift cards210can be concurrently accessible from a single gift card220. To illustrate, the gift card220(capable of storing access information from multiple different original gift cards210) can include a card display region230linked to section buttons232,234. When each selection button232,234is pressed, a different “original gift card’ can be displayed in the card230region. Other portions of the card220can be changed to match, such as changing a store231display for to match the currently shown card, changing the value of the current card (shown in indication224, for example), and the like. In this embodiment, selection via buttons232,234can also result in changes to component226, so that only the displayed gift card (e.g., card 1 of 8) shown in section230can be accessed when read by a reader of a retail establishment (i.e., when conducting commerce transaction184).

Another contemplated embodiment (shown as embodiment240) permits a value purchaser to access the credit value using his/her mobile device242. For example, an ANDROID based phone can include a gift card application, which enables credit values118from the original gift card116to be utilized for purchases. In one embodiment, purchases (ones that utilize value118) can be conducted via a retailer's Web site (straight from an internet-enabled browser of device242). In one embodiment, the device242can display or transmit a code including a bar code, which a point of sale device of the retailer can read, which causes credit value118to be utilized during a commerce transaction184.

In point of sale embodiment250, a point of sale device252can be utilized to conduct secondary market transactions132and152. For example, a person can initiate the commerce transaction184and pay by credit card or debit card via a point of sale device252(e.g., card reader). The card-reader252can be integrated with secondary market functionality. The card reader252(or a computing device connected to the card reader) can execute programs that determine the consumer using the point of sale device is part of a gift-card secondary market network. Running code can then determine that a credit value exists for the retailer, which is available for less than face value (representing a savings for the consumer). The savings can trigger other code to exchange a quantity of “cash” or money obtained from the credit card/debit card scanned by the point of sale device252for a quantity of the credit value.

From a consumer perspective, the secondary market transactions occur transparently (occur responsive to executing code triggered by the consumers use of the point of sale device252) and the consumer receives a discount on the purchase. From the secondary entity's perspective, a secondary transaction (e.g., transaction152) is occurring relatively concurrently with the consumer transaction184. From the retailer perspective, a transaction (e.g., commercial transaction184) occurs where credit value118is being used in exchange for goods/services.

Overall, POS embodiment250functions as an arbitrage market, where a profit (which can be shared among participants) is realized since the market value of the credit value (118) is less than the face value, creating a realizable delta in value equivalent to the difference between the remuneration (135) paid for the credit value and the face value.

Web plug-in embodiment260is similar to embodiment250, in that the secondary market transaction152occurs at approximately the time (or as part of) the commerce transaction184. In embodiment260, however, the commerce transaction184is an e-commerce transaction occurring via a Web interface, such as a browser. A plug-in262(e.g., a client-side or server-side software module) can perform the programmatic actions that trigger the use of credit value118(purchased from the secondary entity136as part of a secondary market transaction252) for the e-commerce transaction instead of “cash”. The “cash” can represent negotiable funds from an account, such as a credit card account, a debit account, a bank account, a PAYPAL or GOOGLE CHECKOUT account, and the like.

In one embodiment (a contemplated variant of embodiment260), the consumer completing a purchase (commerce transaction184) may be completely unaware that credit value118was used in lieu of negotiable funds (e.g., cash or cash equivalent). Instead, a facilitating agency involved in the commercial transaction (e.g., company providing point of sale services/equipment, PAYPAL, GOOGLE CHECKOUT, a credit card company, etc.) can institute the automatic substitution of credit value118for negotiable credit. This automatic substitution can result in a financial gain, which the facilitating agency receives (at least in part) for their services—all without negatively impacting the consumer or the retailer (who has already received compensation for the pre-paid credit value).

FIG. 3is a flow chart for secondary market transactions for credit value of gift cards in accordance with an embodiment of the illustrative arrangements disclosed herein.

The flow chart shows a secondary market transaction (steps305-320, which in one embodiment can represent transaction132ofFIG. 1) for changing ownership of a gift card providing access to a credit value, where the physical artifact of the original gift card is optionally discarded or recycled in the process. Another transaction (steps325-375, which in one embodiment can represent transaction152ofFIG. 1) can transfer ownership of credit value from a secondary entity to a purchaser without transferring the physical artifact of the original gift card. The steps shown inFIG. 3are for illustrative purposes only and derivative and alternative processes resulting in a similar overall functionality are contemplated.

In step305, a gift card providing access to a credit value can be purchased as part of a secondary market transaction. The purchase can be from a current gift card holder by a secondary entity. As part of the purchase, physical possession of a gift card can be conveyed. During the transaction, the current gift card holder can be given value in exchange for giving the secondary entity ownership of the gift card. In step310, credit value accessing information can be extracted from the gift card.

Typically, a gift card includes an access code (e.g., accessing information) linked to a remotely located server, which provides accounting for the gift card amount (e.g., credit value). A gift card accounting system can be used “behind-the-scenes” for commercial transactions involving gift cards. The gift card accounting system can have access to the “pre-paid” funds or the credit value. During a commercial transaction, the gift card accounting system can receive a message that includes the accessing information (from a gift card) and can responsively releases the funds (e.g., credit value) in an amount associated with the commercial transaction. These funds can be provided to the retailer (or to a bank account of the retailer).

In step315, accessing information can be digitally encoded in a database of the secondary entity as a “unit” of credit value. Units of credit value are utilized, since each unit is effectively a “gift card record” associated with a set of funds maintained by the gift card accounting system. There are no guarantees regarding functionality of the gift card accounting system other than its ability to maintain the credit value and to provide it for consumer purchases responsive to receiving the correct accessing information.

In one embodiment, the gift card accounting system can support additional features (such as an ability to combine credit value across multiple different gift cards having different access information, an ability to limit values accessible to a single person or a single commercial purchase, etc.), which can be leveraged to positive effect by the present disclosure. Thus, use of these advanced features is contemplated and is considered within scope of the disclosure. An embodiment of the disclosure is, however, also able to function with any conventional gift card accounting system without requiring modifications of that system.

In step320, once the credit value (or the credit value accessing information) has been obtained from the original gift card, the physical artifact of the original gift card can be discarded or recycled. Recycling can include re-branding (e.g., cleaning the card and changing the graphic, for example) the physical artifact, so it can be used to hold credit value during a different secondary market transaction.

It should be understood that steps305-320can be performed in various manners. For example, the steps can be a human-to-human transaction conducted at a storefront where gift cards can be redeemed and/or exchanged for value. In another embodiment, a human-to-kiosk transaction is possible, where the kiosk (or other automated device, such as a self-serve checkout machine) accepts the gift card and provides value to a human consumer in return. In another embodiment, a human can mail gift cards to a processing center, which provides value to the human upon receipt. Other transaction specifics are contemplated and those presented herein are provided as non-limiting illustrative examples.

In step325, a process to provide a purchaser with access to credit value (previously obtained from a secondary market transaction) can begin. Specifically, a buy request for a gift card with a particular credit value for a specific retailer can be received. In step330, availability of one or more gift cards with credit value for that retailer can be determined, such as by querying the secondary market database for records that match criteria of the buy request. If no matching gift cards with appropriate credit are found, the buy request cannot be satisfied and the process can end, as shown by step332.

In an alternative implementation, a network of independent secondary entities can be established; where if one secondary entity lacks credit value to satisfy the buy request, he/she may automatically query other secondary entities in the network for request satisfying units. These units can be utilized immediately, as only digital information (e.g., the accessing information for the credit value) need be conveyed among secondary entities in the network. Thus, instead of ending in step332, credit value may be found (from an alternative source—in a relatively immediate fashion), which would cause the process to progress to step335.

In step335, the units of credit value can be valuated. This step recognizes that credit value “market worth” may dynamically vary over time and that valuation can be dynamically adjusted as a result. For example, if the database contains an excess number of gift card records with credit value for a particular retailer (that isn't moving fast within the secondary market) a discount can be applied to encourage sale of these gift cards. In contrast, if few gift card records exist for a particular retailer, that is in demand and if the supply of that type of gift card or credit value is limited, then a premium (e.g., close to face value) price for the gift card or credit value can be established. Additionally, obtaining credit value from another source, may affect the cost of this credit value, since the secondary entity may have to pay a surcharge or a premium to receive the credit value from another.

Regardless, the potential purchaser can be presented with options and prices for their choice of gift card or credit value units that satisfy the buy request. This purchaser can either accept or refuse the asking price. Refusal of the price can trigger an optional renegotiation, as shown by step337. If renegotiation isn't an option, the process can end in step332. Otherwise, different gift cards or credit value units can be determined (not shown) and/or the request satisfying units can be re-valuated, as shown by progressing from step337to step335.

Assuming the price is accepted, the secondary market transaction can continue, where ownership of one or more gift cards with units of credit is conveyed to the buyer in exchange for the price, as shown by step340. Once sold, the unit(s) of credit value, which includes access information for utilizing the credit value that may be maintained by a gift card accounting system, can be removed from the secondary market database, as shown by step345. A delivery medium can be selected for the gift cards with units of credit in step350. Different delivery mediums may be available, such as receiving a gift card providing access to the credit value (e.g., accessing information for the credit value is provided and recorded on a gift card), delivering the credit value (or accessing information for the credit value) to a mobile device of the purchaser, providing the credit value to a retailer direct, and the like. In one embodiment, different surcharges can be accessed for different delivery mechanisms. Additionally, customization options can be provided for a possible optional cost, such as placing the credit value (or accessing information for the value credit) on a gift card having a customized graphic uploaded (or selected) by the buyer.

If delivery of the credit value (or accessing information for the value credit) is to a gift card, the gift card can be configured or selected in step355. Configuring a gift card can include printing a custom graphic for a card in one embodiment. In step360, the gift card can provide access to the credit value by writing access information for the credit value to a blank card's mag strip RFID, etc.

If delivery of the credit value (or accessing information) is to a mobile device (or other database/computing device of the buyer) of the buyer, an optional check can be performed in step365. This check is to ensure the mobile device has all software necessary to accept and utilize the credit value. If software is lacking, it can be automatically downloaded to the buyer's device and configured, in one embodiment. In step370, access information for the credit value of the purchased unit(s) can be conveyed to the buyer's device.

One contemplated option of the disclosure is to deliver the credit value directly to the retailer. For example, the delivery can occur during a commerce transaction184within which the secondary market transaction154is also conducted. An example of this is a buyer utilizing a retailer's point of sale (POS) device, which automatically conducts a secondary market transaction during the purchase phase of the commerce transaction. Thus, the POS device would pay for a portion of the commerce transaction using credit value instead of using cash or a cash equivalent, which can be economically beneficial as the credit value can be available for purchase in the secondary market for less than face value. In step375, a retailer can be directly provided the credit value. For example, a retailer's bank account can be transferred funds (from a gift card accounting server that maintains the pre-paid funds, for example) in the same manner as if the consumer presented a gift card (containing the credit value obtained from the secondary market) at the POS.

FIG. 4shows a schematic diagram of a system400for use of credit value of gift cards in accordance with an embodiment of the inventive arrangements disclosed herein. The system400represents an illustrative system for implementing the processes ofFIG. 3and the arrangements ofFIGS. 1 and 2. System400is not to be construed as limiting, and other arrangements and derivatives are contemplated.

FIG. 4shows a gift card410having a credit value412(or accessing information for the credit value) encoded within a storage medium, such as a mag strip, RFID, etc. The storage system on gift card410may also include other attributes, such as a gift card identifier, retailer, and the like. The gift card410can be a physical artifact, which can interface with gift card processing device(s)420. The processing devices420can include an artifact reader422(able to read the credit value412or accessing information), an artifact disposer424(able to destroy or recycle the physical artifact of the gift card410), and artifact writer426(able to make the credit value accessible from gift card410), and the like. The gift card processing device(s)420can be located within a retailer storefront, a secondary market storefront or kiosk, and the like. Thus, a gift card processing device(s)420can be included in retailer system430, buyer device440, and/or secondary market POS machine450.

The retailer system430can be a system where a commercial transaction between a buyer and the corresponding retailer is conducted. For example, the system430can include cash registers, an electronic commerce site for a retailer, a retailer's kiosk or self-service checkout machine, and the like. Retailer system430accepts gift card credit value412specific for the retailer.

Gift card accounting system480can be a system that maintains pre-paid funds (e.g., credit value412) used by gift cards410. Often, accessing information to the accounting system480is written on a gift card410. The gift card accounting system480tracks the current value of each gift card410. System480is also responsible for realizing credit value to retailers (e.g., retailer system430) during a commercial transaction. The accounting system480can utilize a database482, which maintains records for each gift card. Each record is indicated as a unit (484), which can include attributes such as a gift card identifier, a current value, a retailer, and the like. Transaction history of the gift card (purchases, amounts, locations, dates, etc.) can also be maintained in the database482.

Secondary market machine450can be a machine used to interact with buyers/sellers during secondary market transactions relating to gift cards. Machine450can be any machine used by a secondary entity, such as a kiosk, a cash register, and the like. Secondary market machine450can directly interface with secondary market database460.

This database460can maintain units462of gift card information belonging to the secondary market. Each unit462can be a database record that includes a set of attributes, such as a gift card identifier, a credit value, a retailer (or set of retailers), accessing information (for accessing the corresponding credit value maintained by system480), and the like. Secondary market server470can include hardware/software for functions supporting the database460and machine450.

In one embodiment, secondary market server470, database460, and machine450are maintained by a business entity not directly affiliated with the retailer (or directly linked to the retailing system430) or with a gift card service provider (owner of gift card accounting system482). That is, the secondary market transactions and any profits/advantages realized thereby can occur without requiring explicit approval or license from the retailer or gift card service provider.

Each of device420, device440, machine450, server470, retailer system430and gift card accounting system480can include one or more computing devices that execute computer program instructions that perform a set of one or more functions. Each computing device can include one or more processors, and one or more memories. Computer program instructions stored in the memories are able to be executed by the one or more processors. The computer program instructions can include software, firmware, and logic encoded in a digital circuit.

Network405can connect card processing devices420, retailer system420, buyer device440, machine450, server470, database460, and/or system480. Network405can include any hardware/software/and firmware necessary to convey data encoded within carrier waves. Data can be contained within analog or digital signals and conveyed though data or voice channels. Network405can include local components and data pathways necessary for communications to be exchanged among computing device components and between integrated device components and peripheral devices. Network405can also include network equipment, such as routers, data lines, hubs, and intermediary servers which together form a data network, such as the Internet. Network405can also include circuit-based communication components and mobile communication components, such as telephony switches, modems, cellular communication towers, and the like. Network405can include line based and/or wireless communication pathways.

Database460and482can represent data stores able to be physically implemented within any type of hardware including, but not limited to, a magnetic disk, an optical disk, a semiconductor memory, a digitally encoded plastic memory, a holographic memory, or any other recording medium. It should be appreciated that database460and482are independent from each other, and are maintained by different entities (shown by gift card accounting system480and secondary market server470). Additionally, each of the data stores460and482can be a stand-alone storage unit as well as a storage unit formed from a plurality of physical devices. Additionally, information can be stored within data stores460and482in a variety of manners. For example, information can be stored within a database structure or can be stored within one or more files of a file storage system, where each file may or may not be indexed for information searching purposes. Further, data stores460and482can utilize one or more encryption mechanisms to protect stored information from unauthorized access.