Abstract:
Disclosed is a method for providing fraud protection and transaction tracing for gift card accounts through use of a public blockchain ledger. Digital gift cards are associated with tokens which are passed between user accounts. The users do not obtain direct access to the debit codes assigned to the gift cards and are instead provided with variable authentication codes for use in merchant purchases. The variable authentication code is used by a merchant to obtain a reference to an actual debit code held by a web server. Numerous types of transactions are published to the blockchain ledger including initial purchases, reserving/claiming of debit codes, transfers of tokens between accounts, and depleting of gift card value associated with a token. Transactions published to the blockchain occur substantially simultaneously with a merchant purchase such that users may look up gift card values at any time to be assured each gift card is valid.

Description:
FIELD OF THE INVENTION 
       [0001]    The present invention relates to the tracking and recording transfers of digital assets. More specifically, the present invention relates to retaining public records of gift card purchases and transfers. 
       BACKGROUND OF THE INVENTION 
       [0002]    Gift cards are digital asset which has value associated with a single entity. Gift cards are traditionally non-transferable after gifted. One reason for this is transference of gift cards via prior art methods enable increased fraud. 
       INCORPORATION BY REFERENCE 
       [0003]    United States patent U.S. patent application Ser. No. 13/831,365 (Inventors: Levitt, et al.; Filed on Mar. 14, 2013), titled “SYSTEMS AND METHODS FOR DIGITAL GIFT CARD SELECTION” is incorporated by reference in its entirety and for all purposes to the same extent as if the patent application was specifically reprinted in this specification. 
       SUMMARY OF THE PRESENT INVENTION 
       [0004]    Embodiments include a method for tracing expendable debit card ownership. First a server would issue a token, the token represents a given monetary value to a specified merchant, the given monetary value is expendable via reference to a debit code representing a gift card, wherein the debit code stored on the server. The token is then associated with one of a plurality of accounts, wherein an account is accessible to an account user. Having a token entitles an account to receive periodic variable authentication codes, wherein referencing the most recently issued variable authentication code to the server directs the server to expend a selected amount of the given monetary value at the discretion of the account user using the debit code. The account user would then direct the server to transfer the association of the token from the that user&#39;s account to a second account. Finally, the server publishes the transfer to a public ledger such as a blockchain as a transfer record. 
         [0005]    Embodiments additionally include a method for tracing expendable debit card balance. First a server would issue a token, the token represents a given monetary value to a specified merchant, the given monetary value is expendable via reference to a debit code representing a gift card, wherein the debit code stored on the server. The token is then associated with one of a plurality of accounts, wherein an account is accessible to an account user. Having a token entitles an account to receive periodic variable authentication codes, wherein referencing the most recently issued variable authentication code to the server directs the server to expend a selected amount of the given monetary value at the discretion of the account user using the debit code. When the user wished to make a purchase with the specified merchant, the account user would direct the server to expend the selected amount of the given monetary value using the debit code at the discretion of the account user establishing a modified monetary amount. Finally, the server publishes the expenditure of the given monetary value and the modified monetary amount to a public ledger such as a blockchain as an expenditure record. 
         [0006]    Embodiments further include a method for tracing all gift card transactions. First a server would issue a token, the token represents a given monetary value to a specified merchant, the given monetary value is expendable via reference to a debit code representing a gift card, wherein the debit code stored on the server. The token is associated with a first account of a plurality of user accounts, wherein an account is accessible to an account user, and the first account having a first account user. Having a token entitles an account to receive periodic variable authentication codes; accordingly, the first account would receive such codes, wherein referencing the most recently issued variable authentication code by the first account user to the server directs the server to expend a selected amount of the given monetary value with the one or more debit codes at the discretion of the first account user. When the first user wished to either transfer some or all of the value associated with the token to either a merchant or another user, the first user would direct the server to transfer the selected amount of the given monetary value using the one or more debit codes at the discretion of the first account user to either the specified merchant or to a second account, thereby establishing a modified monetary amount represented by the token associated with the first account. Finally, the server publishes the expenditure of the given monetary value and the modified monetary amount to a public ledger as an expenditure record. 
     
    
     
       BRIEF DESCRIPTION OF THE FIGURES 
         [0007]    One or more embodiments of the present disclosure are illustrated by way of example and not limitation in the figures of the accompanying drawings, in which like references indicate similar elements. 
           [0008]      FIG. 1  illustrates the user interface of a sample blockchain system adapted for gift card use. 
           [0009]      FIG. 2A  illustrates a sample transaction record on the blockchain where a user purchases a gift card. 
           [0010]      FIG. 2B  illustrates a sample transaction record on the blockchain where a user transfers a gift card to another user. 
           [0011]      FIG. 2C  illustrates a sample transaction record on the blockchain where a user expends gift funds at a specified merchant. 
           [0012]      FIG. 2D  illustrates a sample transaction record on the blockchain where a user claims gift funds at a specified merchant. 
           [0013]      FIG. 3  illustrates communication and data transfer between entities using a mobile-based gift card exchange adapted to a blockchain publisher system. 
           [0014]      FIG. 4  illustrates a gift card transfer between accounts. 
           [0015]      FIG. 5  is a flow chart of a published transfer of a gift card from one user account to a second user account. 
           [0016]      FIG. 6  is a flow chart illustrating the method for publishing numerous types of transactions in a mobile-based gift card exchange. 
           [0017]      FIG. 7  is a time flow chart illustrating a sample order of operations for gift card transactions. 
       
    
    
     DETAILED DESCRIPTION 
       [0018]    Gift cards in a purely electronic system do not use physical cards. The term, “gift card,” is a misnomer, though still used to express a concept. In actual fact gift cards are no more than numerical codes with an associated value to a given corporation or entity. In using a mobile device enhanced gift card system, such as the Gyft mobile application available on iOS or Android, or another operating system of similar character, gift “cards” are displayed to users on their mobile devices, though no actual “card” exists. The displayed card is simply a digital artifact that the application is directed to present to the user. The user&#39;s device does not include additional code indicating the presence of the card—rather the evidence of “card” ownership exists merely on the application&#39;s host server and the host server directs the mobile application to display the “card” for the user. Reference to a “gift card” in this context merely refers to the concept of reasonably fixed debit with a specified entity. A blockchain is a public ledger. The public ledger includes all such transactions that have ever been executed. The blockchain is constantly growing as ‘completed’ blocks are added with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order, like a chain. 
         [0019]    Referring now to  FIG. 1 ,  FIG. 1  is a representation of a blockchain interface  2 . The blockchain interface  2  is a web interface that appears to users by use of a web browser such as Microsoft Internet Explorer, Mozilla Firefox, Apple Safari, Google Chrome, or another suitable program known in the art. The blockchain interface  2  will include a transaction stream  4 . The transaction stream  4  displays records of transactions on the network and updates actively, in real-time, as users of the network perform transactions. The transaction stream  4  would include a transaction ID  6 , the transaction ID  6  could be a hash code, or reference to a token or digital construct. The transaction stream  4  further includes the amount for which the transaction concerns (“amount”)  8 , and the merchant for which the gift card is with (“merchant”)  10 . The blockchain interface  2  also includes a block stream  12 . The block stream  12  updates in a similar fashion to the transaction stream  4 ; however the block stream  12  displays data concerning collections of transactions, which are compiled into “blocks.” Blocks can be a collection of all transactions is a given period, or they might be sorted differently, such as by merchant  10 . Alternatively blocks could be compiled or by reference to a particular token or other digital construct. The data presented in the block stream  12  includes a block height  14  designation number which grows linearly as blocks are added to the chain, the age  16  of each block, the number of transaction records  18  included in each block, and the block amount  20  which denotes the amount of money transacted in each block. The blockchain interface  2  would additionally include a search bar  22  which a user would use to search for particular transaction records or blocks. 
         [0020]    The blockchain interface  2  illustrated in  FIG. 1  is merely illustrative. Other elements could be included in the interface such as including the age of a given transaction in the transaction stream  4 , sorting blocks by merchant  10 , or presenting information in another preferred manner. Further, additional analytical charts could be presented through additional web interface pages. Such analytical charts could include data such as trends concerning how long users of accounts held on to tokens, data concerning specific merchant trends, or other chartable data relevant to gift card transactions. 
         [0021]    Referring now to  FIGS. 2A, 2B, 2C, and 2D , the  2  series of FIG.s illustrates different kinds of transaction records associated with differing transactions.  FIG. 2A  is a gift card purchase record  24  which would include a transaction ID  6 , a time stamp  26 , a purchaser account  28  which identifies who purchased the gift card by a real name, or an account name pseudonym. The gift card purchase record  24  further includes reference to the merchant  10  and the amount  8 . 
         [0022]      FIG. 2B  is a gift card transfer record  30  which would include a transaction ID  6 , a time stamp  26 , a sender account  32  which identifies the grantor of the card the gift card by a real name, or an account name pseudonym. Similarly, the gift card transfer record  30  has a receiver account  34  which is identified in the same manner as the sender account  32 . Additionally, associated with the sender account  32 , the remaining balance  36  on the sender&#39;s account will be displayed along with the new balance  38  of the receiver&#39;s account. The gift card transfer record  30  further includes reference to the merchant  10  and the amount  8 . 
         [0023]      FIG. 2C  is a gift card expenditure record  40  which would include a transaction ID  6 , a time stamp  26 , a spender account  42  which identifies who is expending the funds of the gift card by a real name, or an account name pseudonym. The gift card expenditure record  24  further includes reference to the merchant  10 , the amount  8  expended and the new balance  38  of the account. 
         [0024]      FIG. 2D  is a gift card claim record  44  which denotes that a given account wishes to begin receiving authentication codes (discussed below). Gift card claim records  44  would include a transaction ID  6 , a time stamp  26 , a scratcher account  46  which identifies who claims the gift card by a real name, or an account name pseudonym. The gift card claim record  44  further includes reference to the merchant  10 . The transaction records illustrated in the  2  series of FIGs is merely illustrative. Other elements could be included as necessary. 
         [0025]    Referring to  FIG. 3 ,  FIG. 3  is illustrates communication and data transfer between entities using a mobile-based gift card exchange adapted to a blockchain publisher system. The system centers around a web server  48  the web server  48  stores business records  50 . Customers  52  of the system would use web-enabled devices  54  to contact the server  48  through the Internet  56  and purchase gift cards for a given merchant  10 . Web-enabled device  54  would include mobile phones, laptop computers, tablet computers, desktop computers, or another suitable device capable of contacting a web server. 
         [0026]    The server  48  acquires a gift card on behalf of the customer  52 , from a merchant  10 . That debit card is manifested by a debit code  58 . The debit codes  58  may be used For the system to work efficiently, it is not necessary for the server  48  to obtain debit codes  58  individually each time a customer  52  orders. A given debit code  58  may cover the orders of multiple customers  52 , or inversely, multiple debit codes  58  may cover a single order from a single customer  52 . The debit codes  58  on the server  48  may predate an order by a customer  52  or the debit codes  58  may be acquired in response to an order by a customer  52 . 
         [0027]    Customers  52  would not actually see or have direct access to debit codes  58 . Instead, customers  52  see variable authentication codes  60 . Customers  52  who have purchased a gift card from the server  48 , will have an account stored on the server  48  in server records  50 . This account could be represented by a token, or some other digital construct which is associated with the customer&#39;s account stored in records  50 . As an optional step the system would make use of a “scratching” feature where a customer  52  would indicate to the server  48  that a purchased gift card should be claimed. Before the “scratch” occurred, the server  48  would not have to assign a debit code  58  to the customer  52 . Though the records  50  would should that the customer  52  had a debit account of a given monetary value, that account would not have to be assigned a code to enable actually expending the monetary value of the account until the customer  52  scratched, or claimed the gift card. Once an gift card is claimed, the customer  52  receives periodic variable authentication codes  60  through the Internet  56 . 
         [0028]    Variable authentication codes  60  change on a regular basis, such that no code is usable forever. The lifetime of a variable authentication code  60  could be measured in seconds or minutes. When one variable authentication code  60  “dies,” another is issued. Optionally, to reduce purchase failure, the lifetime of variable authentication codes  60  could overlap, such that in a given moment it would be possible that two variable authentication codes  60  would be valid. A alternative model for variable authentication codes  60  issuance would involve simply issuing a variable authentication code  60  with a set lifetime anytime a customer  52  accessed their account on the server  48  while issuing no variable authentication codes  60  while a customer&#39;s account remained dormant. 
         [0029]    In use, a variable authentication code  60  can be used at a specified merchant  10 . The merchant  10  then communicates the variable authentication code  60  supplied by the customer  52  to the server  48 . Should the variable authentication code  60  supplied by the customer  52  match the code  60  that is “live” on the server  48 , the server  48  will indicate to the merchant  10  one or more debit codes  58  to use to fulfil the customer&#39;s  52  order. 
         [0030]    Alternatively to expending gift card monetary value at a merchant  10 , customers  52  can exchange gift cards with one another. The transaction, along with merchant expenditure transactions would be recorded in records  50 , and the records  50  would be published on the internet  56  to a blockchain  62 . 
         [0031]    Referring now to  FIG. 4 , with continued reference to  FIG. 3 ,  FIG. 4  illustrates a gift card transfer between accounts. On the server  48 , stored in records  50 , are user accounts A  64  and user account B  66 . In order to record value on a blockchain  62 , a token  68  or some other digital contract would be used. When user account A  64  intends to give a gift card to user account B  66 , a token  68  is transferred from user account A  64  to user account B  66 . The transfer of the token  68  is published to the blockchain  62 . In one embodiment of a token  68 , the token  68  is simply an account flag with a unique ID. In a second embodiment of a token  68 , the token  68  is a simple record which includes a reference to a single debit code  58  and is used primarily to act as a public reference to the debit code  58  without revealing the debit code  58 . 
         [0032]    In a third embodiment of a token  68 , the token  68  is a dynamic record which serves to keep an accounting of all gift card business conducted by an account. As a dynamic record, the token  68  would keep track of one or more debit codes  58  which are associated with the monetary value owed by a specific merchant to the token holder. Each of these debit codes  58  may be shared over numerous tokens  68 . A first token  68   a  may have 100% interest in a first debit code  58   a , and 25% interest in a second debit code  58   b , whereas a second token  68   b  may have the remaining 75% of the interest in the second debit code  58   b . Should a user purchase more credit with a given merchant  10 , additional debit codes  58  would be added to the token  68 . If the token acts as a dynamic record, transferal from user account A  64  to user account B  66  would involve transfer of the entire token  68 , or the creation of a child token  70  which contained partial value of the original token  68 . A child token  70  would either remain with user account A  64  and the original token  68  would be transferred to user account B  66 , or vice-versa. 
         [0033]    Referring now to  FIG. 5 ,  FIG. 5  is a flow chart of a published transfer of a gift card from one user account to a second user account. First, a user of the system will purchase a gift card through an online web server, and the web server will issue a representative token for that gift card ( 502 ). The web server then attaches the issued token to the user&#39;s account ( 504 ). Through the user interface, the user would direct the server to transfer the gift card to another user&#39;s account—the transfer of the gift card would transfer the representative token between accounts as well ( 506 ). Finally, the token transfer of step  506  will be published online to a blockchain ledger ( 508 ). 
         [0034]    Referring now to  FIG. 6 ,  FIG. 6  is a flow chart illustrating the method for publishing numerous types of transactions in a mobile-based gift card exchange. First, a user of the system will purchase a gift card through an online web server, and the web server will issue a representative token  68  for that gift card ( 602 ). The web server then attaches the issued token to the user&#39;s account ( 604 ). When the token is attached to the user&#39;s account the server will publish the token generation to a public blockchain ledger ( 606 ). The user will eventually claim the purchased gift card. Claiming or “scratching” the gift card could occur immediately after purchase, or as late as when the user intended to redeem the gift card with the merchant. When the gift card is claimed by the user, the server will assign the user one or more debit codes or part of a debit code ( 608 ). The assignment of debit code would also be published to the public blockchain, though the debit code itself would not be referenced—rather the debit code itself would be kept private by the server ( 610 ). Once a debit code is assigned to the token, the user has the option to make purchases. To make a purchase, the server will send the user an authorization code, the code is used at the merchant. The merchant references the authorization code to the server which provides the assigned debit code to the merchant. The merchant charges to the debit code and the server records the transaction with respect to the token ( 614 ). A user can also transfer a token to another user. While  FIG. 6  displays the transfer query after the claim step, tokens may optionally be transferred between users before the token is claimed. The token simply switches accounts without having an assigned debit code. Regardless of when the transfer occurs, the server records the transfer ( 616 ). With either a merchant charge to an assigned debit code, thereby diminishing a token, or a transfer of a token the server will publish this information to the public blockchain ( 618 ). 
         [0035]    Referring now to  FIG. 7 ,  FIG. 7  is a time flow chart illustrating a sample order of operations for gift card transactions. The time flow chart includes four columns, each column representing a party to described transactions. Moving down the chart progresses the transactions in time. The space between actions is not standardized for time, and the time between a given action and the subsequent action could be measured anything between milliseconds and years. Some operations on the time chart could be performed in a different order or not at all—this chart is provided merely to present an illustrative example. The content of the chart is self-explanatory. 
         [0036]    In certain embodiments, the server would manage an inventory of debit codes for one or more merchants. The inventory would provide a marketplace for gift cards without requiring the merchant&#39;s own infrastructure to be operational in order for the sale of gift cards. The inventory would not necessarily require that a given debit code be entirely used by any one customer. Each debit code could be shared amongst a group of customers, or multiple debit codes could serve to fulfil a single gift card purchase. The server would determine which debit codes were expended, thus it is feasible that a given debit code would only remain with a given customer for a limited period of time before moving the code to assigning a different debit code. As long as the customer&#39;s credit with a given merchant was accounted for, the debit codes actually assigned to the customer would be interchangeable.