Systems and methods for banking transactions using a stored-value card

Abstract

Systems and methods for banking transactions use a kiosk to perform financial services. The kiosk dispenses a stored-value card. The kiosk determines a stored-value account related to a stored-value card for a user. The kiosk then receives user instructions for a banking transaction using the stored-value account. The kiosk then processes the user instructions to perform the banking transaction using the stored-value account.

Description

CROSS-REFERENCE TO RELATED APPLICATIONS [0001] This application claims the benefit of U.S. Provisional Application Ser. No. 60 / 512,290 titled “Systems and Methods for Money Sharing,” filed Oct. 17, 2003, which is hereby incorporated by reference.BACKGROUND [0002] 1. Field of the Invention [0003] The present invention relates generally to financial services, and more particularly to systems and methods for banking transactions using a stored-value card. [0004] 2. Description of the Prior Art [0005] Customers use automatic teller machines (ATMs) to conduct banking transactions such as deposits, withdrawals, balance inquiries, and transfers between traditional bank accounts. ATMs require ATM / debit cards and PIN numbers assigned to the related ATM / debit card. One problem with ATM / debit cards is that a bank customer must physically go to a branch of a bank to setup a traditional bank account because ATM / debit cards have a bank account, such as a demand deposit account (DDA), associated w...

AI Technical Summary

Benefits of technology

[0013] These systems and methods advantageously provide banking transactions using unattended kiosks and stored-value cards. Users can then conduct banking transactions without having to visit a branch of a bank. Furthermore, users can also conveniently perform banking transactions using stored-value cards and stored-value accounts without setting up and maintaining a traditional bank account. A banking transaction is any financial dealing or action related to account activity such as deposits, withdrawals, purchases, transfers, account inquiries, and printing of financial instruments. In some embodiments, users will not be required to visit a branch office of a bank to set up a traditional bank account before being issued a stored-value card for banking transactions.

[0014] In some embodiments, another advantage is that the user can conduct banking transactions using stored-value cards without being subject to credit checks, extensive background checks, or large deposit requirements. Also, the costs of providing banking transactions are reduced because of the use of an unattended kiosk. In some cases, by requiring cash payment, the risks that banks take in providing banking transaction using stored-value cards are reduced, and the amount deposited in the stored-value account may be available in real-time for other banking transactions. Thus, in some embodiments, banks can provide a broad array of services for banking transactions using stored-value cards to the unbanked population because of the cost-effectiveness and the reduced risks.

Problems solved by technology

One problem with ATM / debit cards is that a bank customer must physically go to a branch of a bank to setup a traditional bank account because ATM / debit cards have a bank account, such as a demand deposit account (DDA), associated with it.

Another problem is that the funds deposited into an ATM machine are not immediately available for withdrawal.

For example, if a customer deposits cash or a check in a deposit envelope, the deposited amount is not immediately available until a bank employee services the ATM machine to collect and process the deposits.

One problem with credit cards is that a person usually needs to have good credit to have a credit line issued for a credit card.

Also, another problem is that credit cards can take weeks to issue from a bank.

Another problem relates to a large population of US residents (by some estimates as much as 50 million) that are poorly served by the banking system—the “under-banked” or the “unbanked”.

This population is generally excluded from traditional banking products (checking accounts, credit cards, debit cards) or moves in and out of eligibility for them—as banks offering them generally require good credit and / or unreasonably large security deposits in order to obtain these services.

People may be excluded for any number of reasons such as having unfortunate circumstances like a divorce or serious medical problem adversely impact their credit standing, or such as making mistakes with their credit coming out of college leading to poor credit or a bankruptcy, or such as having no established credit history because they are a recent immigrant or someone who chooses to conduct their financial affairs primarily with cash.

The reason banks generally exclude these groups of people from their service offerings is the cost and risk associated with the products, particularly credit cards and checking accounts.

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