# Patent

## Title
Systems and methods for automatic migration of a consumer between financial accounts

## Abstract

Embodiments of the invention provide systems and methods for automatically migrating a consumer from one prepaid financial account to another prepaid financial account based on preset trigger criteria. A prepaid payment device, such as a payroll card, may be issued to the consumer and associated with a prepaid financial account. The prepaid financial account may include a profile for the consumer. The issuer of the prepaid payment device may monitor the account activity and set trigger criteria that control when the consumer is automatically migrated from the current prepaid financial account and which type of new account the consumer is migrated into.

## Background
CROSS REFERENCE TO RELATED APPLICATIONS
The present application is a continuation application of and claims priority to U.S. Non-Provisional application Ser. No. 11/757,623, filed on Jun. 4, 2007, the entire contents of which are herein incorporated by reference for all purposes.


BACKGROUND
The present invention relates to prepaid financial accounts, such as payroll card accounts, that are preloaded with funds prior to their use by the consumer.
One example of the use of prepaid financial accounts is payroll card accounts. There are millions of employees who do not have checking accounts at banks but receive pay in the form of payroll checks. To cash those payroll checks, the employee must typically go to a check cashing service where a fee is charged to cash the payroll check. This is a particularly disadvantageous process for the affected employees.
Payroll card accounts were developed to address the problem of payroll checks. Instead of receiving a payroll check, an employee could receive a payroll card from an employer, which is periodically loaded with funds reflecting the employee's pay. The employee could then go to a bank or an ATM to withdraw funds, or could use the payroll card like a credit card to purchase goods and services directly at a merchant.
Prepaid financial accounts are also useful in other contexts. For example, a prepaid financial account can be used to control consumer spending. In one instance, a son or daughter may not be entrusted with a credit card account but, for convenience reasons, may be given a prepaid payment card linked to a prepaid financial account, which may be periodically loaded with needed funds by a parent. As such, the consumer may avail himself of the conveniences of electronic payment, but is limited to funds that already exist on the account balance.
Although the prepaid financial accounts are effective, a number of improvements could be made. For example, different types of prepaid financial accounts exist that have different account features and limitations. For example, some types of prepaid payment cards (and their associated accounts) are only capable of being reloaded with funds a limited amount of times, while other types of prepaid payment cards can be reloaded an unlimited number of times. After the set number of reloads, a consumer with a limited reload payment card must obtain another card. Similarly, some prepaid payment cards (and their associated accounts) are only capable of being used at an automatic teller machine (ATM), while other prepaid payment cards can conduct credit card transactions. Moreover, some prepaid payment cards (and their associated accounts) may be personalized to a consumer while other cards are not. Therefore, it would be desirable to automatically migrate a consumer from one prepaid financial account to another prepaid financial account based on preset criteria to, for example, anticipate the consumer's need or reward the consumer's behavior.
Embodiments of the invention address these and other problems, individually and collectively.
BRIEF SUMMARY
The present invention provides for systems and methods that enable automatic migration of a consumer from one prepaid financial account to another prepaid financial account based on preset trigger criteria. A prepaid payment device, such as a payroll card, may be issued to the consumer and associated with a prepaid financial account. The prepaid financial account may include a profile for the consumer. The issuer of the prepaid payment device may set trigger criteria that control when the consumer is automatically migrated from the current prepaid financial account and which type of new account the consumer is migrated into. The issuer may monitor the account activity and determine when the trigger criteria have been met. The consumer is then automatically migrated from the existing account to a new account, and the consumer's profile is transferred to the new account. A new portable consumer device associated with the new account is issued to the consumer. Loading of funds into the new prepaid financial account is seamless.
These and other aspects of the invention are described in further detail below.



BRIEF DESCRIPTION OF THE FIGURES
FIG. 1 shows a block diagram of a system according to an embodiment of the invention.
FIG. 2 shows a flowchart illustrating a method according to an embodiment of the invention.



DETAILED DESCRIPTION
Embodiments of the invention provide systems and methods for automatically migrating a consumer from one prepaid financial account to another prepaid financial account based on preset trigger criteria. A prepaid payment device, such as a payroll card, may be issued to the consumer and associated with a prepaid financial account. The prepaid financial account may include a profile for the consumer that includes information such as the consumer's name, address, the bank identification number (BIN) of the account, and a direct deposit account (DDA) number to which a party loading the account may direct funds. The prepaid payment device may be any suitable portable consumer device used to conduct financial transactions, such as magnetic stripe cards, RFID key fobs, and the like.
The issuer of the prepaid payment device may set criteria that control when the consumer is automatically migrated from the current prepaid financial account and which type of new account the consumer is migrated into. Criteria for the automatic migration may be based on account activity and may include, but are not limited to, the number of times the prepaid financial account has been loaded with funds, the total volume of funds that have been loaded into the account, and the total number of days that the account has been active. In some instances, the counter for these criteria is not reset when the consumer is migrated from one prepaid financial account to another and instead follow the consumer to determine future account migration status.
Prepaid financial accounts of the present invention are of a variety of types that each have different account features and limitations. For example, some account types may be disposable and may not be reloaded with funds, some account types may be limited to a set number of reloads, and other account types may enable unlimited reloading of funds. Some account types may be used only with an ATM, while other account types may be used with an ATM or to conduct credit card transactions. While the above features are given as examples, other account features and limitations are fully contemplated, such as load limits, cash back incentive programs, etc. Various features and limitations may be grouped together in a single account by an issuer to serve the needs of the consumer and/or the issuer.
Further to the varying account features described above, payment devices associated with the prepaid financial accounts of the present invention may be personalized (e.g., printed with the consumer's name) or non-personalized. Non-personalized devices are useful for instant issue transactions where the consumer must be issued a prepaid payment card immediately (e.g., upon termination of an employee as required by some state laws).
Embodiments of the present invention enable the issuer to monitor the consumer's behavior as it relates to the preset criteria for account migration. For example, the issuer may monitor the number of reloads the account has transacted, the total dollar amount loaded, or other criteria, such as the frequency and amount of spending activity on the account and whether the account has been subject to fraud. Based on this information, the issuer determines whether the triggers for account migration have been met. In some embodiments, each type of prepaid financial account may have a different set of criteria for triggering account migration. For example, a payroll card account that is limited to three reloads may be automatically migrated to another account when three reloads have been transacted, while a payroll card account that already enables unlimited reloads may require that a certain amount money be spent using the account before the account is migrated.
When the issuer migrates the prepaid financial account of a consumer, the issuer may not require any input or request from the consumer. Once the issuer determines that the trigger criteria has been met, the issuer may determine which type of account to migrate the consumer into (i.e., which type of BIN should be assigned), create the new account number (i.e., assign the new BIN), and send the consumer a notification that the consumer's account is being migrated. The consumer's profile information is transferred to the new account such that any counters tracking the consumer's behavior, biographical information, DDA numbers, etc. are copied to the new account. Since the DDA number associated with the new account will remain the same as that of the old account, the loading of funds to the new account will be seamless and will not be affected by the account migration. A new payment device may be ordered by the issuer, which may be delivered to the consumer, for example, by mail. The issuer may set the old account for closure, for example, when the new payment device is received and activated by the consumer or after a set period of time has elapsed.
In some instances, the automatic account migration provided by the present invention may be understood as an “upgrade” program in which the issuer of the prepaid financial accounts sets criteria for migrating the consumer from a “less desirable” type of account to a “more desirable” type of account that has more benefits/features and fewer limitations. For example, a consumer meeting a trigger criteria of having reloaded a payroll card account three times (i.e., meaning the consumer has been employed for three pay periods) may be upgraded from an initial account having a preset limit on reloads and that is only usable at an ATM to a new account having no limit on reloads and that is capable of conducting credit card transactions. In addition, the issuer may also send the migrated/upgraded consumer an upgraded payment device enabling the new account features and personalized with the consumer's name. As such, an employee without a bank account may be upgraded, after meeting the requite criteria, from a limited function payroll account to an unlimited re-loadable, credit card transaction enabled payroll card that essentially functions as an informal bank account. Moreover, the upgrade/migration process is automatic and reduces the requirements on the issuer's resources.
Although the above discussion helps to illustrate the present invention, it should be understood that embodiments of the present invention enable migration of the consumer from one prepaid financial account to another, which means that the consumer may also be migrated from a “more desirable” type of account to a “less desirable” type of account if the trigger criteria are met. For example, if a consumer's credit card enabled account becomes victimized by fraud, the fraud trigger may cause the issuer to initiate an automatic migration of the consumer from that account to a limited reloadable, ATM-only card. As such, the issuer is protected from further fraud, as the account number (i.e., BIN) associated with the consumer's account must now change frequently as the consumer must obtain a new account when the reload limit has been met. Moreover, the ATM-only account only enables the consumer to engage in PIN verified transactions, which is less prone to fraud than credit card transactions.
In other instances, the consumer may simply be migrated to another account of the same type bearing a different account number (i.e., BIN), although the consumer may now be issued a personalized payment device, if a non-personalized device was initially issued. For example, a payroll card account that is limited to three reloads may be automatically migrated to another account of the same type when three reloads have been transacted so as to enable the employee to continue receiving pay.
In some embodiments, the amount of “upgrade” to be received by the consumer may be determined by how many of the preset criteria are met and to what extent. That is, the types of accounts may be assigned relative values and the issuer may determine how many levels to “promote” the consumer's account. For example, a consumer meeting more of the preset criteria (e.g., having reloaded a number of times, spent a certain amount of money from the account) or meeting the criteria to a higher level (e.g., having spent over $1,000 rather than over $500 from the account) may be migrated to a “more desirable” account than a consumer meeting only one of the preset criteria and/or only meeting the criteria at the lowest set level.
Although the specific examples that are described above and below relate to prepaid financial accounts in which funds are loaded into the account prior to expenditure by the consumer, the concepts of the present invention are fully applicable to other types of financial accounts, such as credit card accounts, bank accounts, personal line of credit accounts, etc. As such, the issuer of such financial accounts may determine preset criteria that automatically trigger the migration of the consumer from one type of account to another without requiring any input from the consumer. For example, the issuer may automatically upgrade the consumer from a low credit limit, high interest rate credit card account into a high credit limit, low interest rate account, issue a new credit card to the consumer having the new account number, and set the old account for closure.
FIG. 1 illustrates a system 20 that can be used in an embodiment of the invention directed to payroll card accounts. The system 20 shown in FIG. 1 illustrates one merchant, one acquirer, one employee, one employer, one portable consumer device (e.g., payroll card device), one issuer, and one payment processing network for simplicity of illustration. It is understood that embodiments of the invention may have more or less components than are shown in FIG. 1.
The system 20 includes an employer 31 that may be in operative communication with the issuer 28 of the payroll card accounts. The employer 31 may give the employee 30 a portable consumer device 32 (e.g., a payroll card device) associated with a payroll card account in exchange for work performed, or may provide the portable consumer device 32 with additional value in embodiments where the account is reloadable. The employer 30 may have an account with the issuer 28 and may direct the issuer to load additional value into the payroll card account associated with the portable consumer device 32.
The issuer 28 may have or operate a server computer 21 and a database 23. As used herein, a “server computer” is typically a powerful computer or cluster of computers. For example, the server computer can be a large mainframe, a minicomputer cluster, or a group of servers functioning as a unit. In one example, the server computer may be a database server coupled to a Web server. A server computer services the requests of one or more client computers. The database 23 may contain employer account information, portable consumer device identification data, pin data, and account data, and other information.
The monetary values associated with the payroll card accounts, the employee's profile information associated with the payroll card accounts, the trigger criteria associated with each type of payroll card account, may all be stored in database 23. The portable consumer devices may or may not store data representing the monetary values associated with the accounts. For example, the portable consumer device 32 may simply comprise an identification number (e.g., an account number). This account number may be stored in the database 23 with the monetary value (e.g., $500) associated with the portable consumer device 32. In this example, data representing the monetary value (e.g., $500) would not be stored on the portable consumer device 32. In other embodiments, data representing the monetary value associated with the portable consumer device 32 could be stored in a computer readable medium 32(a) of the portable consumer device 32.
The portable consumer device 32 may be in any suitable form. For example, suitable portable consumer devices can be hand-held and compact so that they can fit into a consumer's wallet and/or pocket (e.g., pocket-sized). They may include smart cards, magnetic stripe cards, keychain devices (such as the SpeedpassTM commercially available from Exxon-Mobil Corp.), etc. Other examples of portable consumer devices include cellular phones, personal digital assistants (PDAs), pagers, payment cards, security cards, access cards, smart media, transponders, and the like.
The portable consumer device 32 may comprise a computer readable medium 32(a) and a body 32(b). The computer readable medium 32(a) may be on the body 32(b). The body 32(b) may in the form a plastic substrate, housing, or other structure. The computer readable medium 32(a) may be a memory that stores data and may be in any suitable form. Exemplary computer readable media 32(a) may be in any suitable form including a magnetic stripe, a memory chip, etc. If the portable consumer device 32 is in the form of a card, it may have an embossed region ER 32(c) which is embossed with an account number and optionally the employee's name. The computer readable medium 32(a) may electronically store the account number as well as other data such as PIN data.
The system 20 also includes a merchant 22 and an acquirer 24 associated with the merchant 22. The merchant 22 may have an account at the acquirer 24, and therefore may be affiliated with the acquirer 24. An issuer 28 may be in operative communication with the acquirer 24 via a payment processing network 26. The acquirer 24 is typically a bank that has a merchant account. The issuer 28 may also be a bank, but could also be business entity such as a retail store. Some entities are both acquirers and issuers, and embodiments of the invention include such entities. Merchant 22 may have an account at the acquirer 24.
The merchant 22 may also have, or may receive communications from, an access device 34 that can interact with the portable consumer device 32. In FIG. 1, the access device 34 is located at the merchant 22. However, it could be located at any other suitable location in other embodiments of the invention. Suitable merchants may include department stores, gas stations, drug stores, grocery stores, etc.
The access devices according to embodiments of the invention can be in any suitable form. Examples of access devices include point of sale (POS) devices, cellular phones, PDAs, personal computers (PCs), tablet PCs, handheld specialized readers, set-top boxes, electronic cash registers (ECRs), automated teller machines (ATMs), virtual cash registers (VCRs), kiosks, security systems, access systems, and the like. Such access devices may send or receive data from the portable consumer device 32 using any suitable contact or contactless mode of operation.
If the access device 34 is a point of sale terminal, any suitable point of sale terminal may include a reader 34(a), a processor 34(b) and a computer readable medium 34(c). The reader 34(b) may include any suitable contact or contactless mode of operation. For example, exemplary card readers can include RF (radio frequency) antennas, magnetic stripe readers, etc. to interact with the portable consumer device 32.
The payment processing network 26 may include data processing subsystems, networks, and operations used to support and deliver authorization services, exception file services, and clearing and settlement services. Payment processing network 26 may include a network such as VisaNet or may be a separate prepaid processing platform (PPP). In some instances, VisaNet may refer transactions involving prepaid financial accounts to the separate PPP for an authorization decision. Payment processing networks 26 may be able to able to process credit card transactions, debit card transactions, and other types of commercial transactions. The payment processing network 26 may use any suitable wired or wireless network, including the Internet.
Using the above described system, payroll card accounts may be loaded by an issuer 28 upon instruction by the employer 31, and the employee 30 may use the issued portable consumer device 32 to enter into commercial transactions with a merchant 22 via acquirer 24 and payment processing network 26.
Some exemplary embodiments of the invention can be described with reference the flowchart in FIG. 2 and the system in FIG. 1.
As shown in FIG. 2, an employer 31 provides the employee 30 with a portable consumer device 32 (e.g., a payroll card) associated with a payroll card account that has been set up with trigger criteria for account migration (step 502). The portable consumer device 32 may have been created by the issuer 28 or provisioned by the issuer 28. The employee may then utilize the portable consumer device 32 to transact business with merchants 22. The payroll card account associated with portable consumer device 32 may be periodically reloaded by employer 31. At step 504, the payroll card account activity is monitored by the issuer 28. Based on the account activity, the issuer determines that the trigger criteria for account migration has been met at step 506. At step 508, the issuer 28 then determines the new type of payroll card account to be issued to the employee 30 based on the monitored account activity and creates the new account (which is assigned a new account number of the appropriate BIN type). At step 510, the issuer automatically migrates the employee's payroll account to the newly created account and transfers the employee's profile information to the new account. The employee's profile information includes at least the DDA number used by the employer 31 to direct funds into the employee's payroll card account. At step 512, a new portable consumer device 32 associated with the new account is issued to the employee 30, which may be embossed with the employee's name in region 32(c). The old payroll card account may then be closed. Finally, at step 514, employer 31 seamlessly loads funds into the new payroll card account, for example, using the DDA number migrated from the old payroll card account.
It should be understood that the present invention as described above can be implemented in the form of control logic using computer software in a modular or integrated manner. Based on the disclosure and teachings provided herein, a person of ordinary skill in the art will know and appreciate other ways and/or methods to implement the present invention using hardware and a combination of hardware and software
Any of the software components or functions described in this application, may be implemented as software code to be executed by a processor using any suitable computer language such as, for example, Java, C++ or Perl using, for example, conventional or object-oriented techniques. The software code may be stored as a series of instructions, or commands on a computer readable medium, such as a random access memory (RAM), a read only memory (ROM), a magnetic medium such as a hard-drive or a floppy disk, or an optical medium such as a CD-ROM. Any such computer readable medium may reside on or within a single computational apparatus, and may be present on or within different computational apparatuses within a system or network.
The above description is illustrative and is not restrictive. Many variations of the invention will become apparent to those skilled in the art upon review of the disclosure. The scope of the invention should, therefore, be determined not with reference to the above description, but instead should be determined with reference to the pending claims along with their full scope or equivalents.
One or more features from any embodiment may be combined with one or more features of any other embodiment without departing from the scope of the invention.
A recitation of “a”, “an” or “the” is intended to mean “one or more” unless specifically indicated to the contrary.

## Claims

1. A method of utilizing prepaid financial accounts, the method comprising:
receiving a first prepaid financial account from an issuer having a first account number, wherein the first prepaid financial account is associated with a consumer profile and wherein the first prepaid financial account is associated with trigger criteria preset by the issuer;
conducting, electronically on a processor, financial transactions on the first account, wherein the issuer monitors account activity, including the financial transactions conducted on the first prepaid financial account, to determine that the trigger criteria is met;
automatically receiving a second prepaid financial account from the issuer based on the trigger criteria being met by the account activity of the first account including the financial transactions conducted on the first prepaid financial account, wherein the second prepaid financial account has a second account number different than the first account number, and is associated with the consumer profile, and wherein the second prepaid financial account possesses upgraded account features; and
conducting, electronically on the processor, financial transactions on the second prepaid financial account utilizing the upgraded account features using a new portable consumer device associated with the second prepaid financial account.

2. The method of claim 1 wherein conducting financial transactions comprises receiving a direct deposit payment.

3. The method of claim 1 wherein the upgraded account features comprise at least one of an ability to conduct credit card transactions and an ability to reload the second account an unlimited number of times.

4. The method of claim 1 wherein the consumer profile comprises a direct deposit account number.

5. The method of claim 1, wherein the new device is embossed with at least a consumer name.

6. A method of utilizing financial accounts, the method comprising:
receiving a first financial account from an issuer having a first account number, wherein the first financial account is associated with a consumer profile and wherein the first financial account is associated with trigger criteria preset by the issuer;
conducting, using a portable consumer device including a computer readable storage medium, financial transactions on the first financial account electronically on a processor, wherein the issuer monitors account activity, including the financial transactions conducted on the first financial account, to determine that the trigger criteria is met;
automatically receiving a second financial account from the issuer based on the trigger criteria being met by the account activity of the first financial account, including the financial transactions, wherein the second financial account is associated with the consumer profile; and
conducting, electronically on the processor, financial transactions on the second financial account.

7. The method of claim 6, wherein the account activity comprises an amount of money spent using the first financial account.

8. The method of claim 6, wherein the first financial account comprises a payroll card account configured to be loaded by an employer, wherein the trigger criteria comprises reloading the first financial account a set number of times.

9. The method of claim 6 further comprising determining a type of the second account based on a number of trigger criteria that have been met.

10. The method of claim 6 further comprising determining a type of the second account by comparing the account activity to numerical levels established in at least one trigger criterion.

11. The method of claim 6 wherein the first account is of a first type and the second account is of a second type, wherein each type of account includes a different set of features.

12. The method of claim 11 wherein the first type of account can only be reloaded a set number of times and the second type of account is capable unlimited reloads.

13. The method of claim 11 wherein the first type of account can only be used at an ATM and the second type of account can also be used to conduct credit card transactions.

14. The method of claim 6 wherein the first account is an account that can only be reloaded a set number of times and the trigger criteria is reloading the account the set number of times.

15. A server computer, comprising:
a processor; and
a computer readable medium, the computer readable medium comprising
code for receiving a first prepaid financial account from an issuer having a first account number, wherein the first prepaid financial account is associated with a consumer profile and wherein the first prepaid financial account is associated with trigger criteria preset by the issuer;
code for conducting financial transactions on the first account, wherein the issuer monitors account activity, including the financial transactions conducted on the first prepaid financial account, to determine that the trigger criteria is met;
code for automatically receiving a second prepaid financial account from the issuer based on the trigger criteria being met by the account activity of the first prepaid financial account including the financial transactions conducted on the first prepaid financial account, wherein the second prepaid financial account has a second account number different than the first account number, and is associated with the consumer profile, and wherein the second prepaid financial account possesses upgraded account features, and
code for conducting financial transactions on the second prepaid financial account utilizing the upgraded account features.

16. The server computer of claim 15, wherein conducting financial transactions comprises receiving a direct deposit payment.

17. The server computer of claim 15, wherein the upgraded account features comprise at least one of an ability to conduct credit card transactions and an ability to reload the second account an unlimited number of times.

18. The server computer claim 15, wherein the consumer profile comprises a direct deposit account number.

19. The method of claim 6 wherein the trigger criteria include a fraud trigger criteria.

20. The method of claim 19 wherein when it is determined that the fraud trigger criteria is met, the second prepaid financial account is a PIN-only account.

21. The method claim 6 wherein the consumer profile includes a direct deposit account (DDA) number.