Patent ID: 8341076

Claim:
In an electronic financial system including a computing device including a processor and a memory, a method for providing overdraft protection for a prepaid financial account, the method comprising: maintaining an electronic record of available funds in the memory, wherein the available funds are accessed by a user via a prepaid financial card; receiving a request from a merchant to perform a financial transaction associated with the prepaid financial card by which funds in a transaction amount associated with a completed transaction with the user are to be transferred to the merchant using the computing device, wherein the transaction amount was below a predetermined amount so that the merchant did not require verification of funds prior to completing the transaction with the user and wherein the transaction amount causes the available funds to fall below a threshold amount; in response to the request to perform the financial transaction, the processor authorizing said funds to be transferred to the merchant, such that the prepaid financial card has been overdrawn by an overdraft amount that is the difference between the transaction amount and the threshold amount; and using an overdraft account associated with the user and the electronic record of available funds in the memory to cover at least the overdraft amount, wherein a line of credit of the overdraft account is at least as great as the predetermined amount that allows the merchant to complete the transaction with the user without verifying the availability of funds in the electronic record so that sufficient funds are available in the overdraft account to cover the overdraft amount.