Processing value-ascertainable items

Abstract

Techniques are provided for allowing a merchant to process third party closed-loop instruments (such as gift cards) as if the closed-loop instruments were open-loop instruments. A customer provides card data of a third party gift card to a merchant, e.g., online or in a merchant store, for the purchase of one or more items provided by the merchant. The merchant sends the gift card data to an intermediary that deducts at least a portion of the balance of the gift card. The intermediary sends an offer for the gift card to the customer. If the customer accepts the offer, then the merchant applies the offer towards the total purchase price of the one or more items.

Description

CROSS-REFERENCE TO RELATED APPLICATION[0001]This application claims the benefit of priority from U.S. Provisional Application No. 61 / 266,910 filed Dec. 4, 2009, entitled “SYSTEMS AND TECHNIQUES FOR PROCESSING GIFT CARD INFORMATION”; the entire content of which is incorporated by this reference for all purposes as if fully disclosed herein.FIELD OF THE INVENTION[0002]The present invention relates to using value-ascertainable items, including stored-value instruments, to purchase goods or services in contexts in which the value-ascertainable items were not previously accepted as payment. More specifically, techniques are provided that allow stored-value instruments issued by one entity to be used to pay for goods or services provided by another entity that is unaffiliated with the issuer. Techniques are also provided to support the sale of stored-value instruments in an unaffiliated environment in a safe and secure manner.BACKGROUND[0003]A stored-value instrument is a financial instru...

AI Technical Summary

Benefits of technology

The present invention provides a system for using value-ascertainable items, such as gift cards, to purchase goods or services from unaffiliated entities in a safe and secure manner. The invention allows for the use of open-loop instruments, which are commonly used in everyday transactions, and ensures that the funds associated with the instrument can be used by the recipient and not depleted or claimed as lost property. The invention also provides a way for gift cardholders to use the gift cards to their fullest advantage by allowing them to choose the merchant they want to use the card and by providing a network logo on the instrument.

Problems solved by technology

Thus, the funds associated with such gift cards can be depleted and replenished multiple times.

One disadvantage of gift cards over other forms of payment is that many gift cards have an expiration date, which may vary between a few months to a few years.

Another disadvantage of gift cards is that gift cards can only be used to make purchases from merchants designated by the issuers of the gift cards.

The CompanyX's gift card cannot be used to purchase items from CompanyY because CompanyY does not recognize CompanyX's gift card as valid payment.

Further, CompanyY is incapable of removing any balance from CompanyX's gift card.

Yet another disadvantage of a gift card is that, because it may be used only for goods or services offered by the issuer, a gift card recipient may not be able to fully utilize the card and put it to its best use.

Or there may not be a stored location convenient to the recipient such that the card is not convenient to use.

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