Open Loop Prepaid Gift Account Creation Without Merchant Consent
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Solution Overview
Problem
Local merchants are unable to offer closed loop prepaid gift account programs due to the time, expense, and effort required, leading to a lack of options for customers wanting to purchase such accounts for local merchants, despite the benefits these programs bring to merchants with closed loop accounts.
Innovation Solution
A system that allows prepaid gift account issuers and program managers to create open loop prepaid gift accounts for local merchants without their consent or knowledge, enabling customers to purchase and load funds onto physical cards usable at selected merchants, branded by payment associations like VISA or MASTERCARD, thus bypassing the need for merchant consent and negotiation.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If closed loop prepaid gift account programs are created for local merchants, then merchants can benefit from increased sales and brand exposure, but the time, expense, and effort required to negotiate with merchants makes this infeasible for most local merchants
Solution Approach 1:
The system allows customers to self-select merchants and purchase prepaid gift accounts directly through an automated platform, eliminating the need for manual negotiation between issuers and merchants. The automated system handles merchant onboarding, account creation, and fund loading without human intervention, resolving the time and effort contradiction.
Solution Approach 2:
The patent introduces an automated intermediary system that acts as a bridge between customers and merchants, facilitating the prepaid gift account creation process without requiring direct negotiation between traditional parties. This intermediary platform streamlines the process by automating merchant verification and account provisioning.
2Productivity
If closed loop prepaid gift account programs are created for local merchants, then merchants can benefit from increased sales and brand exposure, but the expense and complexity associated with creating and maintaining such programs makes this infeasible for most local merchants
Solution Approach 1:
The system provides a universal prepaid gift account platform that serves multiple functions: merchant onboarding, account creation, fund loading, and transaction processing. This multi-functional system eliminates the need for merchants to separately manage complex program infrastructure, reducing overall system complexity while maintaining productivity benefits.
Solution Approach 2:
The automated system handles all complex program management tasks including merchant verification, account provisioning, and system maintenance without requiring dedicated merchant resources. This self-service approach reduces the complexity burden on local merchants while maintaining program effectiveness.
3Reliability
If prepaid gift account issuers focus on creating closed loop programs for larger national retailers, then these programs can be successfully established, but the market for local merchant prepaid gift accounts is ignored
Solution Approach 1:
The system creates a universal platform that adapts to serve merchants of all sizes, from local businesses to national retailers. The same automated infrastructure that ensures reliable program establishment for large retailers also serves local merchants, expanding market coverage without sacrificing program reliability.
Solution Approach 2:
The system adjusts operational parameters such as verification thresholds and account provisioning settings based on merchant size and type. This parameter adaptation allows the system to maintain high reliability for national retailers while simultaneously enabling local merchant participation, thus expanding versatility without compromising established program success rates.
Data Source
AI summary
Systems, methods, and computer-readable storage media for creating an open loop prepaid gift account for a merchant without the merchant's consent. The system identifies a request from a customer to purchase the open loop prepaid gift account which can be used to make purchases at the merchant, presents a menu from which the customer can select the merchant, receives a selection of the merchant and, based on the selection, presents an option to load funds onto the open loop prepaid gift account. Upon receipt of payment, the system creates the open loop prepaid gift account and loads the open loop prepaid gift account with an amount of money, wherein information associated with the open loop prepaid gift account is encoded onto a physical card. The system also prints on the physical card a statement suggesting that the customer can use the physical card to make purchases at the merchant.