System and Method for Issuing Negotiable Instruments by Licensed Money Transmitter from Direct Deposits

Abstract

Embodiments relate to a cash card and associated systems and processes. An account structure is provided that allows a non-bank entity to indirectly provide direct deposit capabilities for funds representing pre-payments for negotiable instruments. When a direct deposit of funds into a first account associated with the individual and maintained by a first entity is detected, the total amount of the funds is transferred into a second account associated with the individual and maintained by a second entity. The first entity is a bank or other financial institution subject to federal banking regulations, while the second entity is not subject to federal banking regulations. The individual may withdraw the funds from the second account by requesting the issuance of negotiable instruments. Negotiable instruments may be issued in any dollar amount not exceeding the balance of the second account. A properly enrolled customer may make subsequent deposits into the second account.

1 . In a payment system of a licensed money transmitter computer system operative to maintain data, records indicative of an amount of funds associated with an individual, the licensed money transmitter computer system maintaining a network of agent terminals at various locations for disbursing funds to authorized recipients, an improvement for issuing a negotiable instrument corresponding to a predetermined direct deposit of funds on behalf of the individual, comprising:
 a transaction account maintained by the licensed money transmitter computer system, the transaction account being unauthorized to accept direct deposits of funds which are prevented by regulatory restrictions, wherein the funds in the transaction account are disbursable by said agent terminals, and wherein the transaction account is operable to be linked to an account maintained at a regulated financial institution and associated with the licensed money transmitter computer system, the licensed money transmitter computer system operable to receive direct deposits of funds on behalf of individuals not maintaining accounts at the financial institution;   the licensed money transmitter computer system being responsive to (a) a request for issuance of a negotiable instrument of a predetermined amount and (b) the electronic notification of the direct deposit of funds swept into the transaction account, for issuing a prepaid negotiable instrument in an amount equal to or less than the amount of the direct deposit, the prepaid negotiable instrument bearing identifying information associated with the individual, for use in making financial transactions from the transaction account based on the direct deposit of funds to the financial institution,   wherein the prepaid negotiable instrument is selected from the group comprising: a magnetic stripe card, a cash card, a check, a draft, a warrant, a money order, or a transit check,   whereby an individual bearing the prepaid negotiable instrument may obtain funds and/or instruct that payments be made of the directly deposited funds by presentation of the prepaid negotiable instrument to an agent associated with the licensed money transmitter computer system.   
     
     
         2 . The system of  claim 1 , wherein a request for issuance of the negotiable instrument of a predetermined amount originates at a point of sale (POS) terminal operated by an agent associated with the licensed money transmitter computer system. 
     
     
         3 . The system of  claim 1 , wherein the request for issuance of the negotiable instrument originates from an automated teller machine (ATM). 
     
     
         4 . The system of  claim 1 , wherein the transaction account is replenished by a deposit from a source other than direct deposit at the regulated financial institution. 
     
     
         5 . The system of  claim 4 , wherein the transaction account is replenished by a cash deposit via an automated teller machine (ATM), a POS terminal associated with the licensed money transmitter computer system, or a non-direct deposit at a financial institution. 
     
     
         6 . The system of  claim 1 , wherein the individual is provided with a cash card for use in transactions associated with the transaction account. 
     
     
         7 . The system of  claim 6 , wherein the cash card includes identifying information. 
     
     
         8 . The system of  claim 7 , wherein the cash card includes human readable identifying information on one side and a magnetic stripe on another side, the magnetic stripe being readable by a POS terminal operated by an agent associated with the licensed money transmitter for obtaining the account identifier from the magnetic stripe computer system. 
     
     
         9 . The system of  claim 7 , wherein the identifying information of the cash card includes an account identifier and a customer name. 
     
     
         10 . The system of  claim 6 , wherein the cash card is an anonymous cash card and the identifying information of the cash card only includes an account identifier. 
     
     
         11 . The system of  claim 6 , wherein a personal identifying number (PIN) is associated with the cash card, and the licensed money transmitter computer system only conducts transactions with respect to the transaction account upon presentation of the card and a corresponding PIN. 
     
     
         12 . The system of  claim 6 , wherein presentation of the cash card by an individual to a POS terminal of the licensed money transmitter computer system is treated by the licensed money transmitter computer system as the request for issuance of another negotiable instrument. 
     
     
         13 . The system of  claim 6 , wherein the cash card is a negotiable instrument. 
     
     
         14 . The system of  claim 6 , wherein presentation of the cash card by an individual to a POS terminal of the licensed money transmitter computer system is treated by the licensed money transmitter computer system as the request for disbursement of cash by an agent associated with the licensed money transmitter computer system. 
     
     
         15 . The system of  claim 6 , wherein presentation of the cash card by an individual to an ATM is treated by the licensed money transmitter computer system as the request for disbursement of cash by the ATM. 
     
     
         16 . The system of  claim 6 , wherein presentation of the cash card by an individual to a POS terminal of the licensed money transmitter computer system or to a bank or to an ATM together with the presentation of cash is treated by the licensed money transmitter computer system as the request for deposit of the cash to the transaction account associated with the individual. 
     
     
         17 . The system of  claim 6 , wherein the cash card is issued to an individual by the licensed money transmitter computer system or an agent thereof after enrollment of the individual as a customer of the licensed money transmitter computer system and provision of customer information. 
     
     
         18 . The system of  claim 17 , wherein the privilege of depositing additional funds to the transaction account is only provided to enrolled customers of the licensed money transmitter computer system. 
     
     
         19 . The system of  claim 6 , wherein the cash card is an anonymous cash card only bearing an account number and a personal identifying number (PIN), and wherein anonymous transactions involving the transaction account may be effected upon presentation by the individual of the cash card to an agent associated with the licensed money transmitter computer system and the PIN. 
     
     
         20 . The system of  claim 19 , wherein the anonymous cash card is a one-load cash card and is invalidated upon depletion of the predetermined funds in the transaction account. 
     
     
         21 . The system of  claim 19 , wherein the anonymous cash card is converted into a regular cash card and enabled for use in connection with subsequent deposits of funds to the transaction account and further transactions upon enrollment of the individual as a customer of the licensed money transmitter computer system. 
     
     
         22 . A method for a licensed money transmitter to issue a prepaid negotiable instrument to an individual based on a direct deposit of funds to a regulated financial institution, comprising:
 arranging for communication of notifications between a regulated financial institution and the licensed money transmitter computer system corresponding to a direct funds deposit, the direct funds deposit corresponding to a direct deposit of funds to the account associated with the licensed money transmitter computer system for the benefit of a particular individual;   receiving from the regulated financial institution, an indication of a direct deposit of funds into an account for the benefit of the particular individual;   communicating a notification of the direct deposit of funds to the licensed money transmitter computer system;   receiving from the regulated financial institution, an indication of automatically sweeping the total amount of the direct deposit of funds into a transaction account associated with the licensed money transmitter computer system, the total amount of the direct deposit of funds being added to a current balance of the transaction account;   receiving from an agent associated with the licensed money transmitter computer system a communication comprising a request by the individual for the issuance of a requested prepaid negotiable instrument having a predetermined value;   at the licensed money transmitter computer system, and in response to the request for issuance of the prepaid negotiable instrument, determining that the value of the requested prepaid negotiable instrument is not in excess of the balance of the transaction account;   at the licensed money transmitter computer system, and in response to a determination that the value of the requested prepaid negotiable instrument is not in excess of the balance of the transaction account, communicating an authorization for issue of the requested prepaid negotiable instrument to the agent; and   at the licensed money transmitter computer system, and in response to the issuance of the requested prepaid negotiable instrument, automatically debiting the balance of the transaction account by the value of the requested negotiable instrument.   
     
     
         23 . The method of  claim 22 , wherein the account at the financial institution is a first account and the transaction account is a second account, and wherein the step of automatically sweeping the total amount of the direct deposit of funds into the transaction account comprises posting a debit in the total amount of the funds in the first account and posting a credit in the total amount of the funds in the second account. 
     
     
         24 . The method of  claim 22 , wherein the regulated financial institution is subject to federal banking regulations and wherein the licensed money transmitter computer system is not subject to federal banking regulations. 
     
     
         25 . The method of  claim 24 , wherein the regulated financial institution is a bank. 
     
     
         26 . The method of  claim 22  wherein the step of determining that the value of the requested negotiable instrument is not in excess of the balance of the transaction account comprises determining that the value of the requested negotiable instrument plus any fees charged to the individual is not in excess of the balance of the transaction account. 
     
     
         27 . The method of  claim 22 , wherein the individual requests the issuance of multiple negotiable instruments;
 wherein determining that the value of the requested negotiable instrument is not in excess of the balance of the transaction account comprises determining that the aggregate value of the requested multiple negotiable instruments is not in excess of the balance of the transaction account;   wherein communicating the authorization of the issuance of the requested negotiable instrument to the individual comprises communicating authorization of the issuance of the requested multiple negotiable instruments to the individual; and   wherein debiting the balance of the transaction account by the value of the requested negotiable instrument comprises debiting the balance of the transaction account by the aggregate value of the requested multiple negotiable instruments.   
     
     
         28 . The method of  claim 27 , wherein determining that the aggregate value of the requested multiple negotiable instruments is not in excess of the balance of the transaction account comprises determining that the aggregate value of the requested multiple negotiable instruments plus any fees charged to the individual is not in excess of the balance of the transaction account. 
     
     
         29 . The method of  claim 22 , further comprising:
 detecting a balance increase request by the individual, the balance increase request indicating that the balance of the transaction account is to be increased by a requested amount and that the individual has tendered a payment in the requested amount;   in response to the balance increase request, crediting the requested amount to the second account.   
     
     
         30 . The method of  claim 22 , wherein the step of determining that the value of the requested prepaid negotiable instrument is not in excess of the balance of the transaction account comprises:
 at the agent associated with the licensed money transmitter computer system, receiving a PIN and an account number provided by the requesting individual;   communicating the individual-provided account number and PIN to the licensed money transmitter computer system;   at the licensed money transmitter computer system, determining that the individual-provided account number identifies the transaction account;   at the licensed money transmitter computer system, determining that the PIN identifies the individual as being authorized to access the transaction account; and   at the licensed money transmitter computer system, comparing the value of the requested prepaid negotiable instrument to the balance of the transaction account.   
     
     
         31 . The method of  claim 22 , further comprising the step of:
 at the agent associated with the licensed money transmitter computer system, and in response to receipt by the agent of the authorization for issuance of the requested prepaid negotiable instrument, issuing a prepaid negotiable instrument in the amount of the request, less any applicable transaction fees.   
     
     
         32 . A computer-controlled negotiable instrument payment system for negotiable instrument transactions conducted by a particular individual based on the direct deposit of funds at a regulated financial institution at which the particular individual does not maintain an account, comprising:
 a computer system operated by a licensed money transmitter computer system that maintains a network of agent terminals;   a data communications interface associated with the computer system for data communications with a transaction system of the financial institution;   an account sweep control module run by the computer system responsive to a notification received via the data communications interface from the financial institution indicating the direct deposit of funds in a predetermined deposit amount into an account at the financial institution for:
 communicating a debit posting message indicating the predetermined deposit amount to the financial institution transaction system, and 
 crediting the predetermined deposit amount to a transaction account maintained by the licensed money transmitter computer system for the benefit of the individual associated with the deposit; and 
   a transaction control module run by the computer system and operative, in response to a request from a requesting source for issuance of a negotiable instrument in a predetermined amount for a particular individual and bearing identifying information associated with the individual, wherein the negotiable instrument is selected from the group comprising: a magnetic stripe card, a cash card, a check, a draft, a warrant, a money order, or a transit check, for:
 determining whether the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount; 
 in response to a determination that the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount, communicating an authorization for issuance of the negotiable instrument in the requested predetermined amount to an agent terminal; and 
 in response to the receipt from the agent terminal of a notification indicating the issuance of the negotiable instrument in the requested predetermined amount, posting a debit of the requested predetermined amount. 
   
     
     
         33 . The system of  claim 32 , wherein the requesting source comprises an automated teller machine (ATM), an agent point of sale (POS) terminal, or a card reader terminal. 
     
     
         34 . The system of  claim 32 , wherein the regulated financial institution is subject to federal banking regulations and wherein the licensed money transmitter is not subject to federal banking regulations. 
     
     
         35 . The system of  claim 32 , wherein the request for issuance of the negotiable instrument originates at a POS terminal operated by an agent associated with the licensed money transmitter computer system. 
     
     
         36 . The system of  claim 32 , wherein the request for issuance of the negotiable instrument originates from an automated teller machine (ATM). 
     
     
         37 . The system of  claim 32 , wherein the transaction account is replenished by a deposit from a source other than direct deposit at the regulated financial institution. 
     
     
         38 . The system of  claim 37 , wherein the transaction account is replenished by a cash deposit via an automated teller machine (ATM), a POS terminal associated with the licensed money transmitter computer system, or a non-direct deposit at a financial institution. 
     
     
         39 . The system of  claim 32 , wherein the individual is provided with a cash card for use in transactions associated with the transaction account. 
     
     
         40 . The system of  claim 39 , wherein the cash card includes identifying information. 
     
     
         41 . The system of  claim 40 , wherein the cash card includes human readable identifying information on one side and a magnetic stripe on another side, the magnetic stripe being readable by a POS terminal operated by an agent associated with the licensed money transmitter computer system for obtaining the account identifier from the magnetic stripe. 
     
     
         42 . The system of  claim 40 , wherein the identifying information of the cash card includes an account identifier and a customer name. 
     
     
         43 . The system of  claim 40 , wherein the cash card is an anonymous cash card and the identifying information of the cash card only includes an account identifier. 
     
     
         44 . The system of  claim 40 , wherein a personal identifying number (PIN) is associated with the cash card, and the licensed money transmitter computer system only conducts transactions with respect to the transaction account upon presentation of the cash card and a corresponding PIN. 
     
     
         45 . The system of  claim 39 , wherein presentation of the cash card by an individual to a POS terminal of the licensed money transmitter computer system is treated by the licensed money transmitter computer system as the request for issuance of another negotiable instrument. 
     
     
         46 . The system of  claim 39 , wherein the cash card is a negotiable instrument. 
     
     
         47 . The system of  claim 39 , wherein presentation of the cash card by an individual to a POS terminal of the licensed money transmitter computer system is treated by the licensed money transmitter computer system as the request for disbursement of cash by an agent associated with the licensed money transmitter computer system. 
     
     
         48 . The system of  claim 39 , wherein presentation of the cash card by an individual to an ATM is treated by the licensed money transmitter computer system as the request for disbursement of cash by the ATM. 
     
     
         49 . The system of  claim 39 , wherein presentation of the cash card by an individual to a POS terminal of the licensed money transmitter computer system or to a bank or to an ATM together with the presentation of cash is treated by the licensed money transmitter computer system as the request for deposit of the cash to the transaction account associated with the individual. 
     
     
         50 . The system of  claim 39 , wherein the cash card is issued to an individual by the licensed money transmitter computer system or an agent thereof after enrollment of the individual as a customer of the licensed money transmitter computer system and provision of customer information. 
     
     
         51 . The system of  claim 50 , wherein the privilege of depositing additional funds to the transaction account is only provided to enrolled customers of the licensed money transmitter. 
     
     
         52 . The system of  claim 39 , wherein the cash card is an anonymous cash card only bearing an account number and a personal identifying number (PIN), and wherein anonymous transactions involving the transaction account may be effected upon presentation by the individual of the cash card to an agent associated with the licensed money transmitter computer system and the PIN. 
     
     
         53 . The system of  claim 52 , wherein the anonymous cash card is a one-load cash card and is invalidated upon depletion of predetermined funds in the transaction account. 
     
     
         54 . The system of  claim 52 , wherein the anonymous cash card is converted into a regular cash card and enabled for use in connection with subsequent deposits of funds to the transaction account and further transactions upon enrollment of the individual as a customer of the licensed money transmitter computer system. 
     
     
         55 . The system of  claim 32 , wherein the transaction control module is further operative for:
 receiving a balance increase request message from a POS terminal, the balance increase request message indicating that the balance of the transaction account for the benefit of the particular individual is to be increased by a requested amount and that the individual has tendered a payment in the requested amount to the agent associated with the licensed money transmitter computer system; and   in response to the balance increase request, communicating a message to credit the requested amount to the balance of the transaction account for the benefit of the individual.   
     
     
         56 . The system of  claim 32 , wherein the operation of the transaction control module for determining that the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount for the negotiable instrument comprises:
 receiving a PIN and an account number from the POS terminal purporting to identify a transaction account associated with the particular individual;   determining that the account number identifies a transaction account;   determining that the PIN identifies the individual as being authorized to access the transaction account; and   comparing the predetermined amount of the requested negotiable instrument plus any applicable fees to the balance of the transaction account.   
     
     
         57 . The system of  claim 32 , wherein the transaction control module is further operative for authorizing the issuance of a plurality of negotiable instruments when the balance in the transaction account contains adequate funds therefor. 
     
     
         58 . A method for a licensed money transmitter computer system to issue a prepaid negotiable instrument to an individual based on the direct deposit of funds at a regulated financial institution, comprising:
 receiving from an agent associated with the licensed money transmitter computer system, an indication of providing the individual with an account number and a PIN for subsequent use in obtaining the issuance of a prepaid negotiable instrument;   receiving from the financial institution, an indication of receiving a direct deposit of funds for the benefit of the individual for use in connection with funding the issuance of prepaid negotiable instruments;   communicating a notification message from the financial institution to the licensed money transmitter indicating the direct deposit of funds to an account associated with the licensed money transmitter computer system for the benefit of the individual;   in response to the direct deposit of funds at the financial institution, receiving an indication of sweeping funds in an amount corresponding to the direct deposit of funds from the account at the financial institution to the credit of a transaction account with the licensed money transmitter computer system;   at the licensed money transmitter computer system, receiving a request from the agent for issuance of a prepaid negotiable instrument in a predetermined amount, the request including the predetermined amount and the account number and the PIN previously provided to the individual;   at the licensed money transmitter computer system, and in response to the request for issuance of the prepaid negotiable instrument, verifying that the balance of the transaction account associated with the account number and PIN and subsequent to the sweeping of funds equals or exceeds the predetermined amount requested for the prepaid negotiable instrument;   in response to verification at the licensed money transmitter computer system of the account number and the PIN and that the balance of the transaction account equals or exceeds the predetermined amount requested for the prepaid negotiable instrument, communicating a message to the agent authorizing the issuance of the prepaid negotiable instrument in the predetermined amount; and   at the agent, and in response to the message authorizing the issuance of the prepaid negotiable instrument, issuing the prepaid negotiable instrument in the requested amount, less any applicable transaction fees.   
     
     
         59 . The method of  claim 58 , further comprising the steps of:
 subsequent to the issuance of the prepaid negotiable instrument in the requested amount, communicating a message from the agent to the licensed money transmitter computer system indicating the issuance of the prepaid negotiable instrument;   at the licensed money transmitter computer system, posting a debit in the amount of the prepaid negotiable instrument, less any applicable transaction fees, to the transaction account associated with the account number and the PIN.   
     
     
         60 . The method of  claim 58 , further comprising the step of cashing the issued negotiable instrument at the agent and providing the individual with cash. 
     
     
         61 . The method of  claim 58 , further comprising the steps of:
 at the agent of the licensed money transmitter computer system, receiving a request from the individual to increase the balance of the transaction account in a requested amount;   determining that the individual is authorized to increase the balance of the transaction account;   receiving from the individual a payment in a particular amount;   generating a balance increase request requesting that the transaction account be credited in the requested amount; and   communicating the balance increase request from the agent to the licensed money transmitter computer system.   
     
     
         62 . A computer-controlled negotiable instrument payment system for use by a licensed money transmitter system and for negotiable instrument transactions conducted by a particular individual based on the direct deposit of funds at a regulated financial institution at which the particular individual does not maintain an account, comprising:
 a licensed money transmitter computer system;   a data communications interface associated with the licensed money transmitter computer system for data communications with a transaction system of a regulated financial institution;   an account sweep control module run by the licensed money transmitter computer system responsive to a notification received via the data communications interface from the financial institution indicating the direct deposit of funds in a predetermined deposit amount into an account at the financial institution associated with the licensed money transmitter computer system for the benefit of individuals for whom negotiable instruments are to be issued by the licensed money transmitter computer system, the direct deposit of funds being for the benefit of the particular individual, for:
 communicating a debit posting message indicating the predetermined deposit amount to the financial institution transaction system, and 
 crediting the predetermined deposit amount to a transaction account maintained by the licensed money transmitter computer system for the benefit of the individual associated with the deposit; 
   a data communications interface associated with the computer system for data communications with point of sale (POS) terminals operated by agents of the licensed money transmitter computer system, the POS terminals comprising a negotiable instrument printer for issuing negotiable instruments; and   a transaction control module run by the computer system and operative, in response to a communication comprising a request via an agent POS terminal for issuance of a negotiable instrument in a predetermined amount for a particular individual and bearing identifying information associated with the individual, wherein the negotiable instrument is selected from the group comprising: a magnetic stripe card, a cash card, a check, a draft, a warrant, a money order, or a transit check, for:
 determining whether the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount; 
 in response to a determination that the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount, communicating an authorization for issuance of the negotiable instrument in the requested predetermined amount, less any applicable transaction fees, to the POS terminal; and 
 in response to the receipt from the POS terminal of the issuance of the negotiable instrument in the requested predetermined amount, less any applicable transaction fees, posting a debit of the requested predetermined amount, less any applicable transaction fees, to the transaction account. 
   
     
     
         63 . The system of  claim 62 , further comprising a profile database management system for management of POS terminals operated by agents associated with the licensed money transmitter computer system. 
     
     
         64 . The system of  claim 62 , further comprising a support personnel system operatively associated with the licensed money transmitter computer system for providing computer support services for support personnel associated with the licensed money transmitter computer system, in connection with transactions conducted with the system. 
     
     
         65 . The system of  claim 62 , wherein the regulated financial institution is subject to federal banking regulations and wherein the licensed money transmitter is not subject to federal banking regulations. 
     
     
         66 . The system of  claim 62 , wherein the regulated financial institution is a bank. 
     
     
         67 . The system of  claim 62 , wherein the transaction control module is further operative for:
 receiving a balance increase request message from a POS terminal, the balance increase request message indicating that the balance of the transaction account for the benefit of the particular individual is to be increased by a requested amount and that the individual has tendered a payment in the requested amount to the agent of the licensed money transmitter; and   in response to the balance increase request, communicating a message to credit the requested amount to the balance of the transaction account for the benefit of the individual.   
     
     
         68 . The system of  claim 62 , wherein the operation of the transaction control module for determining that the balance in the transaction account associated with the particular individual equals or exceeds the requested predetermined amount for the negotiable instrument comprises:
 receiving a PIN and an account number from the POS terminal purporting to identify a transaction account associated with the particular individual;   determining that the account number identifies a transaction account;   determining that the PIN identifies the individual as being authorized to access the transaction account; and   comparing the predetermined amount of the requested negotiable instrument plus any applicable fees to the balance of the transaction account.   
     
     
         69 . The system of  claim 62 , wherein the transaction control module is further operative for authorizing the issuance of a plurality of negotiable instruments when the balance in the transaction account contains adequate funds therefor.