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 . A computer-implemented method comprising:
 receiving via at least one processor a request for funds that are available to a user through a licensed money transmitter;   receiving via at least one processor information associated with the user's identity;   receiving via at least one processor information not associated with the user's identity;   after authenticating the information associated with the user's identity and the information not associated with the user's identity, transmitting via at least one processor an authorization to pay some or all of the funds to the user; and   associating some or all of the funds with a card or negotiable instrument, which is then issued to and utilized by the user to subsequently access some or all of the funds.   
     
     
         2 . A system comprising:
 at least one memory operable to store computer-executable instructions; and   one or more processors operable to execute computer-executable instructions, wherein the computer-executable instructions are operable to:
 receive a request for funds that are available to a user through a licensed money transmitter; 
 receive information associated with the user's identity; 
 receive via at least one processor information not associated with the user's identity; 
 after authenticating the information associated with the user's identity and the information not associated with the user's identity, transmit an authorization to pay some or all of the funds to the user; and 
 associate some or all of the funds with a card or negotiable instrument, which is then issued to and utilized by the user to subsequently access some or all of the funds. 
   
     
     
         3 . The system of  claim 2 , wherein the computer-executable instructions operable to receive a request for funds that are available to a user through a licensed money transmitter comprise computer-executable instructions operable to receive the request via an automated teller machine (ATM), an agent point of sale (POS) terminal, or a card reader terminal. 
     
     
         4 . The system of  claim 2 , wherein the computer-executable instructions operable to receive a request for funds that are available to a user through a licensed money transmitter comprise computer-executable instructions operable to receive the request at a POS terminal operated by an agent associated with the licensed money transmitter, or to receive the request from an automated teller machine (ATM). 
     
     
         5 . The system of  claim 2 , wherein the funds that are available to a user through a licensed money transmitter are provided to a transaction account by a deposit from a source other than direct deposit at the regulated financial institution. 
     
     
         6 . The system of  claim 5 , 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. 
     
     
         7 . The system of  claim 5 , wherein the user is provided the card for use in transactions associated with the transaction account. 
     
     
         8 . The system of  claim 2 , wherein the card includes user identifying information. 
     
     
         9 . The system of  claim 2 , wherein the 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 information from the magnetic stripe. 
     
     
         10 . The system of  claim 9 , wherein the identifying information of the card includes an account identifier and a user name. 
     
     
         11 . The system of  claim 9 , wherein the card is an anonymous cash card and the identifying information of the card only includes an account identifier. 
     
     
         12 . The system of  claim 5 , wherein a personal identifying number (PIN) is associated with the card, and the system only conducts transactions with respect to the transaction account upon presentation of the card and a corresponding PIN. 
     
     
         13 . The system of  claim 2 , wherein presentation of the card by the user to a POS terminal of the licensed money transmitter is treated by the licensed money transmitter as the request for issuance of another negotiable instrument. 
     
     
         14 . The system of  claim 2 , wherein the card is a negotiable instrument. 
     
     
         15 . The system of  claim 2 , wherein presentation of the card by the user to a POS terminal of the licensed money transmitter is treated by the licensed money transmitter as the request for disbursement of cash by an agent associated with the licensed money transmitter, or wherein presentation of the card by the user to an ATM is treated by the licensed money transmitter as the request for disbursement of cash by the ATM, or wherein presentation of the card by the user to a POS terminal of the licensed money transmitter or to a bank or to an ATM together with the presentation of cash is treated by the licensed money transmitter as the request for deposit of the cash to the transaction account associated with the individual. 
     
     
         16 . The system of  claim 5 , wherein funds deposited to the transaction account are only performed by enrolled customers of the licensed money transmitter. 
     
     
         17 . The system of  claim 5 , wherein the 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 user of the cash card to an agent associated with the licensed money transmitter and the PIN. 
     
     
         18 . The system of  claim 17 , wherein the anonymous cash card is a one-load cash card and is invalidated upon depletion of predetermined funds in the transaction account. 
     
     
         19 . The system of  claim 17 , 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 user as a customer of the licensed money transmitter. 
     
     
         20 . A computer readable medium comprising instructions that when executed by at least one processor, cause the at least one processor to:
 receive a request for funds that are available to a user through a licensed money transmitter;   receive information associated with the user's identity;   receiving via at least one processor information not associated with the user's identity;   after authenticating the information associated with the user's identity and the information not associated with the user's identity, transmit an authorization to pay some or all of the funds to the user; and   associate some or all of the funds with a card or negotiable instrument, which is then issued to and utilized by the user to subsequently access some or all of the funds.