Point-of-distribution pre-paid card vending system

Details Point-of-distribution pre-paid card vending system Point-of-distribution pre-paid card vending system

1997-07-09

2001-01-02

Voeltz, Emanuel Todd (Department: 2761)

Data processing: financial, business practice, management, or co

Automated electrical financial or business practice or...

Finance

C705S039000, C235S381000, 36, 36

Utility Patent

active

06169975

ABSTRACT:

BACKGROUND OF THE INVENTION
1. Field of the Invention
This invention generally relates to a system for distributing, dispensing and recording transactions relating to pre-paid cards and/or other inventory, such as pre-paid long distance telephone cards, at one or more point-of-distribution locations, such as in a retail establishment.
2. Description of the Prior Art
Over the past few years, pre-paid long distance telephone cards (pre-paid phone cards) have become increasingly popular as a convenient way to pay for long distance telephone calls. Pre-paid phone cards look similar to credit cards, but they work like gift certificates for long distance service—they may be purchased in selected denominations, thus allowing the holder of the card to make long distance telephone calls for a preselected number of minutes, etc.
The front of a pre-paid phone card typically contains some type of graphic image, while either the front or the back of the card includes a telephone number (such as a toll-free 800 number) as well as a personal identification number (PIN) that may be used to make the long distance telephone call. In operation, the holder of the pre-paid phone card dials the telephone number printed on the back of the card, and when prompted, dials the PIN number and the telephone number to be called. The call thereafter is connected, and the caller may receive audible warnings indicating how much long distance time is left on the card.
Pre-paid phone cards have traditionally been available to consumers at retail establishments, such as in grocery stores, drug stores, gift shops, and the like. In the past, pre-activated pre-paid phone cards would be shipped to the retailer, and the retailer would then sell the cards to interested consumers. Of course, because the phone cards would already be activated when they were shipped to the retailer, if such cards were stolen they could essentially be used like cash by the thief to make long distance telephone calls, or could be re-sold on the black market. Also, such systems do not lend themselves to allowing the retail establishment owner to track the sales in detail. For example, it may be difficult for the retail owner to determine which of his sales clerks were making the most sales of pre-paid phone cards, and at what time of day such sales were being made.
Some of the deficiencies of prior art systems have been addressed to a small extent by systems whereby PIN numbers pre-printed on phone cards are only activated by the retailer after the sale of the card is made to the consumer. In these systems, the retailer or the retailer's computer terminal dials into a central host computer system each time a card sale is made, and the host computer system is instructed to activate the PIN number on the sold card. Unfortunately, while this is an improvement over prior systems, there are still significant problems with these newer systems. Since the pre-printed PIN numbers have to be activated after each sale, much time is wasted by the sales clerk during the activation process. Moreover, because a long distance call is often required to contact the host computer system, significant long distance charges are (ironically) incurred just to activate each card. Additionally, if for some reason the activation phone number is busy, or the host computer system is otherwise unavailable, the sale simply can't be made.
SUMMARY OF THE INVENTION
There is therefore a need for an improved system for activating and distributing pre-paid inventories, such as pre-paid phone cards, to consumers.
A novel system and process have been developed whereby a prepaid phone card, or any other similar pre-paid inventory, may be easily and efficiently distributed at, for example, a point-of-sale. A computerized terminal including memory for storage is maintained al the point-of-distribution, or any other suitable location. The terminal's memory is adapted to store one or more PIN numbers, telephone numbers and/or other suitable information corresponding to the information needed by consumers to utilize the cards. The terminal initially connects to a host computer system in order to download one or more PIN numbers, and the downloaded PIN numbers are thereafter stored in the terminal's memory.
When a consumer wishes to purchase a pre-paid phone card, a sales clerk at the point-of-distribution (e.g., the point-of-sale) may receive payment from the consumer, and the clerk enters the order into the terminal. Because the terminal's memory may already be pre-loaded with numerous PIN numbers, the terminal selects one of the PIN numbers from memory, and this PIN number may be printed on a previously blank card, along with any other necessary information. The PIN number may be printed on the card in a number of ways. The clerk may insert the card into a slot on an attached printer, whereby the printer prints the PIN number directly on the card, or the printer may print the PIN number on an adhesive label which thereafter may be affixed to the card, or the printer may simply print the PIN number, etc., on a paper receipt. In any event, the PIN number, etc., is only placed onto the card or paper after the sale is made.
In addition to the PIN number being placed on the card, information about the transaction may be stored in the terminal's memory. For example, the time, date, sales clerk number, dollar and time value of the card, and the PIN number may be stored in memory. Later, such as at night when long distance rates are cheapest, when the store is closed, or at any other suitable time, all data from the previous transactions may be transmitted to the host computer system for further processing. For example, the host computer system may generate reports regarding sales which may be sent to the store owner, etc.
After the terminal transmits data regarding previous transactions to the host computer system, the host computer system may download additional PIN numbers, etc. to the terminal for subsequent sales. For example, if ten PIN numbers are dispensed during one day, then after the terminal transmits the information about the ten transactions to the host computer system, the host computer system will download ten new PIN numbers to the terminal to replenish the terminal's stock. Thus, the terminal will virtually never be out of stock of PIN numbers.
If a store experiences heavy sales of cards with PIN numbers, the present invention may be implemented to not wait until night, etc. to transmit the transaction information to the host computer. Rather, the terminal may be designed to transmit the transactional information to the host computer system any time its PIN number supply is running low, so that the terminal's supply of PIN numbers is replenished.
Finally, a mechanism for guiding the card into the terminal, as well as an assembly for securing an attached magnetic stripe reader may also be provided.


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