Patent ID: 7328191

Claim:
A method for processing a stored-value instrument, the method comprising: authenticating at an instrument-authority system an unrestricted value associated with the stored-value instrument in response to an authentication request received from a merchant point-of-sale terminal; receiving at the instrument-authority system an allocation request for a restricted allocation of at least a portion of the authenticated value associated with the stored-value instrument; allocating the authenticated value associated with the stored-value instrument in accordance with the allocation request, wherein allocating the authenticated value comprises assigning at least a portion of the authenticated value for purchases at a specified merchant; receiving at the instrument-authority system from a point-of-sale terminal at a location of the specified merchant transaction information identifying the stored-value instrument and a debit amount, wherein the debit amount is greater than the authenticated value of the stored-value instrument assigned for purchases at the specified merchant; transmitting an offer to the point-of-sale terminal at the location of the specified merchant to reallocate portions of the authenticated value for purchases at the specified merchant; receiving at the instrument-authority system from the point-of-sale terminal at the location of the specified merchant an acceptance of the offer; reallocating the authenticated value associated with the stored value instrument in accordance with the offer; and reducing the authenticated value of the stored-value instrument assigned for purchases at the specified merchant in accordance with the reallocated authentication value.