WO2010094109A1

WO2010094109A1 - Apparatus and system for the sale of value from value cards

Info

Publication number: WO2010094109A1
Application number: PCT/CA2010/000192
Authority: WO
Inventors: Mitchell Bradley Miller; Joel Christopher Reeves
Original assignee: National Gift Card Exchange Inc.
Priority date: 2009-02-19
Filing date: 2010-02-11
Publication date: 2010-08-26
Also published as: CA2654800A1

Abstract

A kiosk and system enables customers to sell value from stored value or loyalty cards (e.g. points, telephone minutes, travel miles, store voucher cards) to a third party purchaser. The kiosk includes a card reader/writer, a user interface, and is associated with a processor. The processor is configured to query a card-issuing merchant as to the balance of value associated with the card and to return to the kiosk an authorization to dispense cash or a cash voucher. A card-issuing merchant system transfers value associated with the card-holder to an account maintained for the purchaser.

Description

TITLE OF THE INVENTION

APPARATUS AND SYSTEM FOR THE SALE OF VALUE FROM VALUE

CARDS

FIELD OF THE INVENTION

This invention relates to a kiosk or data terminal and an associated system for enabling the sale of value associated with third party stored value or loyalty cards.

BACKGROUND OF THE INVENTION

Loyalty cards, prepaid cards and store coupon cards are but a few examples of cards that store data on the cards, or link to data that is remotely stored, wherein the data represents value in the hands of the card holder. Other examples include gift cards, telephone minutes cards and travel miles cards.

In the prior art, a person seeking to redeem or monetize the value associated with the card has limited options. The most common manner is to acquire goods or services from the card-issuing merchant using the value stored on the card (for example by redeeming accumulated points). In the past, this was usually done by attending in person at a merchant location. Presently, many merchants allow a phone-in to a redemption service center or a remote log-in over the Internet to enable the card holder to acquire goods or services remotely using the value stored on the card. The foregoing scenarios involve contacting the issuing merchant to effect a redemption of the value or points associated with the card.

A more direct manner of monetizing a stored value card is to sell the card directly for cash to another individual, for example a friend. On a larger scale, some entities offer to purchase stored value cards over the Internet. Typically such purchasers offer less than the stored value on the card and require the physical card to be delivered to the purchaser who then makes use of it.

In the foregoing circumstances, the physical element and characteristics of the pre- paid card do not change. Except when the card is used or redeemed, then the value represented by the card is changed.

It is an object of the present invention to provide apparatus that enables a card holder to sell value stored on a stored value card without the need to deal with the card issuer or the need to deliver the card to a specified remote location.

It is also an object of the present invention to provide apparatus that enables a purchaser to acquire a substantial amount of value from a variety of stored value cards at a variety of locations.

These and other objects of the invention will be better understood by reference to the detailed description of the preferred embodiment which follows. Note that not all of the objects are necessarily met by all embodiments of the invention described below or by the invention defined by each of the claims.

SUMMARY OF THE INVENTION

The present invention provides a kiosk or a data terminal, and their associated system that are specifically configured to facilitate a card holder's ability to instantly sell to an entity other than the card issuer stored value associated with the card, without the need for the card holder to either deliver a physical card to a remote location, or to deal directly with the card issuer. The card may hold any form of redeemable stored value, including for example store gift cards, prepaid cards, loyalty points cards, telephone minutes cards, travel miles cards and credit cards that include points based on use of the cards. In this description and in the claims, the term "stored value card" is used to refer to any card that is associated with a value to which the card holder is entitled.

The kiosk of the invention allows the purchaser to effectively purchase value and to arrange for the transfer of the value to an account controlled by the purchaser. It will be appreciated that the invention also enables purchasers to acquire value from a variety of kiosk-enabled locations, dispensing cash or monetary value in return.

The system of the invention comprises a plurality of kiosks, data terminals or a combination of both, a processor and merchant systems that manage stored value card data and that authorize transfer of value from a card holder to a value purchaser.

According to one aspect, the invention comprises apparatus enabling a card holder to sell value represented by or stored on a card to a purchaser other than the card issuer. The apparatus comprises a communication facility having access to a communications network, a card reader, a dispenser for dispensing either cash or a cash voucher and a processor. The processor is configured to collect information from the card, initiate communication with a remote card-issuing merchant system, solicit from that system a transfer of the value, receive confirmation of the transfer transaction and instruct the dispenser to dispense one of cash or a cash voucher. In another aspect, the card reader is also a card writer and the processor is configured to instruct the card writer to modify the data on the card and to instruct a component of the apparatus to return the card to the customer. In yet another aspect, the instruction to modify the data is subject to an authorization received from the card issuer.

In yet another aspect, the processor is configured to instruct the component to retain the card in predetermined circumstances.

In yet another aspect the invention comprises a system for enabling a card holder to sell value represented by or stored on a card to a purchaser other than the card issuer. The system comprises a plurality of apparatus as defined above, and the merchant system maintains a file containing value data associated with the card, as well as an account for the purchaser of the value from the card holder. The transfer transaction consists of a transfer of value from the file to the purchaser account by the merchant system in response to a solicitation by the processor.

The apparatus may be a kiosk or a portable or counter-top data terminal.

The foregoing was intended as a broad summary only and of only some of the aspects of the invention. It was not intended to define the limits or requirements of the invention. Other aspects of the invention will be appreciated by reference to the detailed description of the preferred embodiment and to the claims.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention will be described by reference to the detailed description of the preferred embodiment and to the drawings thereof in which:

Fig. 1 is a diagram of the preferred embodiment of the system of the invention; Fig. 2 illustrates an exemplary stored value card used with the preferred embodiment;

Fig. 3 is a front view of a kiosk according to the preferred embodiment wherein the kiosk is capable of dispensing cash;

Fig. 4 is a front view of a kiosk according to another embodiment of the invention wherein the kiosk is not capable of dispensing cash;

Fig. 5 illustrates a portable or counter-top data terminal with the functionality of the kiosk of the preferred embodiment;

Fig. 6 is a diagrammatic representation of a digital file and general card value management computer system according to the preferred embodiment; and,

Fig. 7 illustrates a voucher according to an embodiment of the invention.

DETAILED DESCRIPTION QF THE PREFERRED EMBODIMENT

Fig. 1 is a diagram illustrating the use of the kiosk of the invention along with the associated participating elements.

A customer 5 in possession of a stored value card 10 attends at one of several remotely located kiosks 20. In the following description, a portable or counter-top data terminal 80 (illustrated in Fig. 5) may be substituted for kiosk 20. Subsequent references to kiosk 20 may be taken in the alternative to be references to a data terminal 80. An exemplary stored value card 10 is illustrated in Fig.2. Stored value card 10 is associated with a value stored in a digital file 65. The value may be for example points accumulated using the card. In the preferred embodiment, digital file 65 is maintained at an issuing merchant computer system 60 that is used for general stored value card transactions such as balance enquiries, redemption transactions and value accumulation transactions.

A user interface is provided through a keypad 22 and a monitor 24 (see Fig. 3) on kiosk 20. The interface is used to allow the customer 5 to signal that the customer wishes to sell all or some of the value contained in digital file 65, to accept customer passwords, personal identification numbers or other authorizations, and to indicate the amount the customer wishes to sell from the stored card value.

Kiosk 10 includes a card reader/writer 21 into which the customer inserts the card and that reads the data on the card 10. The data is transmitted via a communication modem (not shown) in kiosk 20 through communication network 40 to a processor 50 associated with the kiosk provider. Communication network 40 may be the Internet, or alternatively may be a more secure discrete network. Kiosk 10 is associated with a unique IP address to enable processor 50 and other components of the system of the invention to track particular transactions and if necessary to associate them with a local merchant 90 that is associated with the particular kiosk (such as to account for local merchant-mediated cash transactions involving the kiosk).

Processor 50 may be located within the kiosk 20, or may be located at a remote server. Processor 50 interprets the data from card 10 and identifies the issuing merchant. A look-up table identifies a merchant value cash-in processor 70 associated with the issuing merchant and conveys the card data to merchant value cash-in processor 70 by means of communication network 40.

Merchant value cash-in processor 70 accesses a general card value management computer system 60 associated with the merchant. Card value management system 60 retrieves data from digital file 65 pertaining to the particular stored value card 10 tendered by the customer 5. The data includes the value associated with the card 10 and may further include information identifying the card holder, such as a user name, password, personal identification number or a code required to authorize a card transaction. It will be appreciated that the kiosk interface may include a requirement that the customer 5 input such identifying or authorizing information. The retrieved information is then transmitted through network 40 to processor 50 which then records the data in transaction data storage 45.

The value available from the card 10 is displayed to customer 5 through the kiosk interface. The customer is queried to indicate how much of the value the customer is interested in selling, and the kiosk displays the amount that is offered to the customer.

The interface then queries customer 5 to provide input indicating that the customer wishes to proceed with a sale transaction for the indicated amount. Upon receiving the input, processor 50 stores the request in transaction data storage 45 and sends the request to the issuing merchant's value cash-in processor 70, which accesses digital file 65 in the merchant's general card value management computer system 60.

An account 68 is maintained for the purchaser by the merchant, preferably in the general card value management system 60. In the preferred embodiment, the purchaser is the kiosk provider. However, the purchaser may also be a third party entity.

Value cash-in processor 70 is provided with rights authorizing it to modify the values in various digital files 65 and 68 for the purpose of kiosk cash-in transactions.

Once the sale transaction is committed, processor 70 modifies digital file 65 associated with the particular card 10 by deducting the sold value and increments account 68 by the value purchased. Once digital file 65 and account 68 are suitably modified, a confirmation of the transaction is sent to processor 50, which stores the information in transaction data storage 45 and sends a confirmation display of the transaction to the customer 5. Kiosk 20 may then dispense the agreed amount of cash to the customer. In another embodiment, rather than dispensing cash, kiosk 20 dispenses a voucher that the customer 5 presents to a local merchant associated with kiosk 20 for cash redemption.

In the case of some stored value cards, the card does not directly store any value information. Instead, the card merely identifies the user and the value information is maintained in digital file 65 at the card issuing merchant system. In that case, if the entirety of the card value has been sold, the processor 50 may query general card value management system 60 to determine whether the issuing merchant's policy requires the card to be surrendered. If so, processor 50 dispatches a card retention instruction to kiosk 20. If a data terminal 80 is used instead of a kiosk 20, the card retention instruction may be dispatched to a local merchant 90 using the data terminal 80.

In the case of other stored value cards, the stored value amount is encoded on the card itself and may be modified by suitable card reader/writers upon effecting transactions. In such case, a card reader/writer in kiosk 20 acts to modify the value amount stored on the card as a result of the sale after receiving validation and authorization from the general card value management system 60 via processor 50.

In an alternative embodiment of the invention, no purchaser account 68 is maintained by the issuing merchant. As a result, the issuing merchant is not in a position to transfer value from customer digital file 65 to the credit of the card value purchaser.

According to this alternative embodiment, when a card 10 is inserted into the kiosk

20, processor 50 limits its interaction with the issuing merchant system 60 to querying the balance of value associated with the card. In yet a further alternative embodiment, processor 50 produces an output signaling the need for an independent card balance enquiry to be launched to the issuing merchant. The independent card balance enquiry can be, for example by accessing a web site maintained by the issuing merchant for the purposes of card balance enquiries, or by telephone enquiry. The processor 50 may be configured to conduct the web site-based balance enquiry automatically using log-in information that may be provided by customer 5 at kiosk 20, or using a separate log-in account authorized by the issuing merchant.

Once the balance of stored value on the card has been determined, the interface of kiosk 20 presents to customer 5 an offer to acquire the entire outstanding balance associated with the card 10. Upon acceptance, cash or a cash voucher is dispensed as in the preferred embodiment, but processor 50 directs the kiosk 20 to retain the card 10 for later redemption by the purchaser. In the event that a card ownership transfer is authorized by the issuing merchant, kiosk 20 secures from customer 5 through keypad 22 any further authorization (password or authorization code) that may be required to complete the transfer of ownership.

It will be appreciated by those skilled in the art that the preferred and alternative embodiments have been described in some detail but that certain modifications may be practiced without departing from the principles of the invention.

Claims

1. An apparatus enabling a card holder to sell value represented by or stored on a stored value card to a purchaser other than the card issuer comprising:

a communication facility having access to a communications network;

a card reader;

a user interface;

a dispenser adapted to dispense one of cash or a cash voucher;

a processor specifically configured to, in response to a card being inserted into said card reader and receiving inputs from said user interface:

collect information derived from said card;

initiate communication with a card-issuing merchant system;

solicit said card-issuing merchant system to effect a transfer of said value;

receive confirmation of a transfer transaction relating to said card; and,

instruct said dispenser to dispense one of cash or a cash voucher.

2. Apparatus as in claim 1 wherein said processor is further configured to instruct a component of said apparatus to perform one of the following steps upon receiving confirmation of a sale transaction: retain said card;

expel said card; or,

modify data recorded on said card using a card writer and expel said card.

3. Apparatus as in claim 2 wherein said step of modifying data recorded on said card is subject to an authorization being received from the card issuer.

4. A system for enabling a card holder to sell value represented by or stored on a stored value card to a purchaser other than the card issuer comprising:

a plurality of apparatus according to claim 1 ;

a merchant system maintained by said card-issuing merchant, said merchant system maintaining:

a file of information regarding said value;

an account for said purchaser;

said merchant system further being configured to modify said information and a purchaser value associated with said account upon receipt from said processor of a communication soliciting a transfer transaction of said value to said purchaser.

5. Apparatus as in claim 1 or 2 wherein said apparatus is a kiosk.

6. Apparatus as in claim 1 or 2 wherein said apparatus is a portable or counter-top data terminal.

7. The system of claim 3 wherein each of said apparatus comprises one of a kiosk, or a portable or counter-top data terminal.

8. A system enabling a card holder to sell value represented by or stored on a stored value card to a purchaser other than the card issuer comprising:

a kiosk having a communications facility for accessing a remote merchant system through a communication network;

a processor associated with said kiosk for assessing the value available for said card;

an unique IP address associated with said kiosk and means for tracking sale transactions and associating them with said IP address;

user interface means;

said merchant system authorizing or denying a solicitation from said processor for a sale transaction of said value;

said merchant system including security measures for detecting fraudulent transactions through said kiosk.

9. The system of claim 7 further comprising a card reader/writer in said kiosk.

10. The system of claim 7 wherein said user interface comprises a key pad.

11. The system of claim 7 wherein said kiosk further comprises a dispenser for dispensing a receipt or voucher.

12. The system of claim 7 further comprising a cash dispenser.

13. A system enabling customers to sell value represented by or stored on, stored value cards from predetermined locations, comprising:

a merchant system comprising a database;

a plurality of uniquely identifiable kiosks comprising a communication facility for communicating with said merchant system;

a plurality of uniquely identifiable portable or counter- top data terminals located at retail locations with access to a communication network for communicating with said merchant system;

a record stored in said database recording particulars of at least one sale transaction and associating said at least one sale transaction with one of said plurality of kiosks or data terminals;

a record associating said at least one sale transaction with a local merchant associated with at least one of said kiosks or data terminals;

a processor configured to identify all transactions associated with said local merchant and to perform a reconciliation of money transactions involving said local merchant.