Patent Publication Number: US-2005125300-A1

Title: Method for adding cash value to pre-paid cards

Description:
CROSS-REFERENCE TO RELATED APPLICATION  
      This application is a continuation-in-part of U.S. patent application Ser. No. 10/727,783 filed on Dec. 4, 2003, entitled “Method for Paying Invoices”. 
    
    
     TECHNICAL FIELD  
      The present invention relates to a system and method of permitting an individual to add cash vale to a pre-paid card at a retail outlet, such as a grocery store.  
     BACKGROUND OF THE INVENTION  
      Meyer et al., U.S. patent application Publication No. 2002/0128967 discloses a system where a customer pays an invoice issued by a biller, such as a utility company, at a retail location, such as a supermarket. However, this system requires that the utility&#39;s invoice includes a bar code identifying both the utility as well as the customer.  
      Additionally, this system requires extensive integration with the supermarket&#39;s cash register system.  
      Further, this system requires that the supermarket forward the payment through the Federal Reserve Automated Clearing House (ACH) Network.  
      Still further, this system makes no provision for charging the consumer for this service.  
      The present invention is provided to solve these and other problems.  
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
      Other advantages and aspects of the present invention will become apparent upon reading the following description of the drawings and detailed description of the invention.  
       FIG. 1  is a block diagram of the present invention.  
       FIG. 2  is a process flow diagram of one aspect of the present invention. 
    
    
     DETAILED DESCRIPTION OF THE INVENTION  
      While this invention is susceptible of embodiment in many different forms, there is shown in the drawings and will herein be described in detail preferred embodiments of the invention with the understanding that the present disclosure is to be considered as an exemplification of the principles of the invention and is not intended to limit the broad aspect of the invention to the embodiments illustrated.  
      A system  10  for permitting a customer billee, such as an individual, to pay an invoice  12  generated by a biller  14 , such as from a utility company, at a retail outlet of an organization, such as a retail grocery store of a grocery store chain, is illustrated in  FIG. 1 .  
      The grocery store chain has a central station  15 , such as its headquarters, and a plurality of distributed outlets  16 . Each of the outlets  16  typically has a plurality of cashier&#39;s terminals  18 . Each of the cashier&#39;s terminals  18  is coupled to a conventional point-of-sale (POS) controller  20 , which is part of the store&#39;s computer system.  
      The invoice  12  is issued to the customer, either by regular mail, by e-mail, or otherwise. The customer goes to the outlet  16 , possibly selects various items to purchase, such as groceries, and takes the selected items, if any, and the invoice to the cashier&#39;s terminal  18 .  
      An invoice transaction is conducted by a cashier entering data identifying the biller and the billee into the cashier&#39;s terminal  18 . Specifically, the biller may be identified by entering a Product Look-Up Code (PLC) for the biller. Alternatively, the biller may be identified by scanning a bar-code identification of the biller, which bar-code could be printed on the invoice. The customer is identified by entering a customer code identifier, such as the customer&#39;s account number. This may be done either by manually entering the account number via a key pad, or by scanning a bar code on the invoice.  
      The cashier also enters data indicating an amount of money to be paid by the billee towards the invoice into the cashier&#39;s terminal. The billee may choose to pay some or all of the invoiced amount. This may be repeated for other invoices, as well.  
      If the billee also desires to purchase one or more other items from the outlet  16 , an other transaction is conducted by the cashier entering data identifying the one or more other items to be purchased into the cashier&#39;s terminal  18 .  
      The POS controller  20  determines a total amount of money due as a result of the invoice transaction and the other transaction, and the billee tenders payment for the amount due. The POS controller  20  creates an electronic transaction log including an invoice transaction record of the invoice transaction and, if one or more other items were purchased, an other transaction record of the one or more other items purchased. The POS controller  20  flags the invoice transaction record, and transmits the transaction log from the POS controller  20  to a processing server  26 .  
      The processing server  26  strips the invoice transaction record from the transmitted transaction log, and transmits the stripped invoice transaction record from the processing server  26  to a central server  30 . The central server  30  performs both a communication function as well as a payment processing function. The central server may include a single server  36  to perform these functions, or it may include one or more dedicated communication server(s) and one or more dedicated payment processing server(s). The payment processing function gathers multiple stripped invoice transaction records, relating to multiple invoice payments, to multiple billers, over a period of time.  
      Peridically, the central server  30  determines from the transmitted, stripped invoice transaction records, the amount of payment due to each of the particular billers, and the central server  30  electronically instructs the central station  15  to forward payment to the appropriate biller. Payment by the central station  15  to the particular billers can be done, as desired, such as by check, by wire, or otherwise.  
      The central server  30  also generates an electronic notification to each of the billers, indicating the amount paid by the respective billees towards their respective invoices.  
      The transaction log may include a plurality of transaction records, with each of the transaction records having a respective invoice transaction record and other transaction record.  
      In the preferred embodiment, the processing server  26  and the central server  30  are operated by a third-party. Accordingly, a service fee is added to the amount the customer wants to pay to the biller, and thus this amount is added to the total amount of money the customer tenders to the cashier. This service fee is split between the grocery chain and the third-party. To transfer the third-party&#39;s share from the grocery, which received the service fee from the customer, to the third-party, the central server  30  electronically instructs the central station  15  to pay the third-party its share. This payment can be done by check, by wire, or otherwise.  
      The transaction log is transmitted to the processing server on a daily basis, such as following the normal end-of-day (EOD) run.  
      The stripped invoice transaction record is transmitted to the central server  30  when the invoice transaction record has been stripped from the transaction log.  
      The stripped invoice transaction record is transmitted from the processing server  26  to the central server  30  by a direct modem connection. Alternatively, the stripped invoice transaction record is transmitted from the processing server  26  to the central server  30  by an internet connection.  
      In the preferred embodiment, each of the outlets  16  has a plurality of cashier&#39;s terminals  18  coupled to a respective POS controller  20 .  
      Following the transaction, the cashier&#39;s terminal generates a receipt for the customer, identifying both payment of the utility invoice, as well as payment for the other items, if any, purchased.  
      The present invention can be accomplished with no intrusion into the outlet&#39;s existing computer system, other than a minor modification of the software in the POS controller  20 . These modifications will now be described with reference to  FIG. 2 .  
      A first modification is identified as User Exit Program  1 . According to this modification, the POS controller software is modified to receive the PLU code of the biller issuing the invoice to be paid, and to determine the identity of the biller. If the POS controller does, not recognize the PLU code, an error message is generated. Otherwise, the POS controller receives the data identifying the customer. The POS controller then receives data identifying the amount to be paid towards the invoice, and then adds the service fee.  
      A second modification is identified as User Exit Program  2 . According to this modification, once the utility transaction item has been added, the POS controller flags the utility transaction in the transaction log.  
      A third modification is identified as User Exit Program  3 . According to this modification, information regarding the utility payment is added to the otherwise conventional receipt.  
      A fourth modification is identified as User Exit Program  4 . According to this modification, the POS controller transmits the transaction log to the processing server when the conventional EOD routine is run.  
      In an alternative embodiment, the POS controller  20  can be modified to transmit to the processing server  26  only those transaction logs including an invoice transaction record.  
      In a further alternative embodiment, the POS controller  20  can be modified to transmit to the processing server  26  only the invoice transaction record.  
      In a still further alternative embodiment, the processing server  26  and the central server  30  can be eliminated, and the POS controller  20  is modified to directly instruct the central station  15  to pay the biller.  
      Additionally, the system can be used to add money value to pre-paid cards, such as phone cards, gift certificate cards, and the like.  
      For example, pre-paid phone cards can be activated as follows.  
      The cashier would use a pre-determined PLU to identify the item as a phone card and scan the identification number on the card. The information would be stored, and forwarded, to the in-store server. The server would then notify the phone card-company that the number and the amount have been activated.  
      Using the same method as described above, an existing card can add more minutes by informing the cashier, when prompted by the system, how much money they would like to add to the phone card.  
      Further, debit bank cards can be activated as follows.  
      The cashier would use the same identification process and when prompted would ask the consumer what dollar value they would like to put on the card. When the information is received on the in-store server, the bank would be notified that the card number has been activated and how much money was paid upon activation. This process would not require the identification of the user, just the number on the card.  
      Funds would be added in the same manner as the card was activated.  
      Pre-paid gift cards would be activated as follows.  
      Each pre-paid gift card type or company would have a unique PLU as an identifier. Using this PLU, the cashier would then scan the card and enter the amount of the face value of the card into the system. The central server would retrieve the card information and provide the necessary information to the appropriate company.  
      Using the same process, an existing pre-paid gift card can be re-activated for those companies that have a policy to permit re-activation.  
      The existing process enables the retailer to accept funds that are targeted for transfer to a debit card or bank account. The consumer making the deposit will be required to have a card that identifies the account the funds are to be assigned towards. When prompted, the cashier will ask the consumer how much money is to be deposited in the account. When the information is collected by the central server, the appropriate company is provide with the required account information.  
      Money, points, and other value-based information could also be transferred through the system  
      The system allows any individual or group to transfer value-based transactions, such as money, points, minutes, credits, and other key content, to other individuals or shoppers in participating stores and other locations taking part in the service. The types of units that can be transferred from one party to another are limited only by the ability the initiating party&#39;s provider (e.g. the individual&#39;s bank or credit provider) to efficiently translate the units into transportable data. The additional data can be recorded by the system, and the transactions can be completed per the above program with a variable fee amount going to the retail outlet and the third-party, the end billing units being processed by the third-party, and the final transfer of billing information executed by the third-party to the sender&#39;s resource, the store, and other involved parties.  
      The currency or credit provider would receive the billing messages directly from the third-party, and the transactions would be completed, authorized, and validated using the system. All settlement information would be processed through the system, and billing transfer arrangements would be handled in accordance with the guidelines set forth by the participating parties.  
      While the specific embodiments have been illustrated and described, numerous modifications come to mind without markedly departing from the spirit of the invention. The scope of protection is only intended to be limited by the scope of the accompanying claims.