Network-Activated Gift Card With User PIN Selection
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Solution Overview
Problem
Existing financial presentation instruments, such as stored value cards and gift cards, are susceptible to loss and fraud due to their initial activation at merchant locations, which increases risk for merchants.
Innovation Solution
A method and system for activating presentation instruments using a computerized network, where a package identifier is read and transmitted to a host computer system to indicate purchase, allowing for secure activation with a personal identifier and access code, and including security features like fraud evaluation and PIN selection for enhanced security.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If presentation instruments are activated at merchant locations, then merchants can provide unfettered access to cards, but merchants are exposed to loss through shrinkage and theft
Solution Approach 1:
The system performs preliminary actions by pre-printing and distributing cards to merchants without activation. The cards remain dormant until a customer purchases and activates them, allowing merchants to display and hand out cards freely without risk of theft or shrinkage since the cards have no value until activated by the customer.
2Ease of operation
If merchants carry large initial expenditure for pre-paid cards, then cards can be readily available, but merchants carry large initial expenditure
Solution Approach 1:
The system performs preliminary actions by pre-printing and distributing cards to merchants without activation. The cards are prepared in advance and made available at merchant locations, but no funds are loaded until a customer purchases and activates the card, eliminating the need for merchants to carry large initial expenditures.
3Object-affected harmful factors
If non-activated cards are distributed to customers, then theft risk is reduced, but cards may still be susceptible to certain types of fraud
Solution Approach 1:
The system implements self-service activation where the customer themselves activates the card by providing personal information and selecting a PIN at the point of sale. This self-service process ensures that only the paying customer can activate the card, preventing fraud by ensuring that stolen or unauthorized cards cannot be activated without the customer's personal identification and chosen security credentials.
Data Source
AI summary
In one embodiment, the invention provides a method for activating a presentation instrument using a computerized network. The method utilizes a presentation instrument package that comprises a greeting card and a presentation instrument. A package identifier on the greeting card is read and transmitted to a host computer system to indicate that the presentation instrument has been purchased. After being purchased, the package identifier may be detached from the greeting card and the presentation instrument may be removed from the greeting card. To activate the presentation instrument, an access code and a presentation instrument identifier obtained from the presentation instrument may be provided to the host computer system. Furthermore, the recipient may select a personal identifier to associate with the presentation instrument. The personal identifier may be transmitted to the host computer system for storage.