Patent ID: 7354004

Claim:
A method of validating and activating a purchase card, comprising: providing a purchase card that is removably attached to a card carrier, wherein the purchase card has an account identifier associated therewith, wherein the purchase card includes a machine-readable information encoding region into which the account identifier is encoded, and wherein the purchase card has a hidden password associated therewith; populating a database with a stored password that relates to the hidden password, and a stored account identifier that relates to the account identifier, thereby uniquely coupling the account identifier to the hidden password; at a point-of sale device and in response to a customer request to purchase the purchase card, entering the account identifier into the point-of-sale device; comparing the account identifier to the stored account identifier; based at least in part on the comparing step, associating value to the card; thereafter, receiving a request at an activation location initiated by the customer to activate the card; activating the card; thereafter, receiving a request at a host computer system to settle a transaction using the card, wherein the request includes the account identifier, the hidden password, and a transaction settlement amount; and based at least in part on the account identifier and the hidden password, settling the transaction.