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Abstract

A heterogeneous stored-value system which offers interoperability among a number of proprietary payment card brands with differing fee structures. The system makes use of existing settlement practices and fee structures to increase the amount of commerce while imposing minimal changes. The benefits of the interoperability among different proprietary brands include reduced operating costs, since a single electronic cash pool can serve many different payment card brands. Although the electronic cash of the system is generic and is shared among the different payment card brands, the flow of electronic cash is prescribed in such a manner as to maintain an association between electronic cash (over the course of circulation) and the specific brand of payment card through which it was acquired by the customer. In this way, a transaction involving electronic cash represents a small piece of a much larger charge or debit transaction and carries its proportional share of the fees of the charge or debit transaction. Electronic cash originally obtained through a specific payment card brand is reconsolidated at settlement, assuring proper accounting for these fees. Thus, electronic cash can be freely used for small purchases, and the original charge or debit transaction can benefit from the fees associated with those small purchases, but without imposing any significant transaction overhead for handling each small purchase individually. The system can handle isolated flow, where electronic cash flows from a loading device to a payment card and thence from a payment card to a point of sale to settlement, where electronic cash can flow into a payment card only from the loading device. The system can also handle circulation of the electronic cash, whereby reloading is accomplished by returning electronic cash to a payment card as change from a charge transaction at a point of sale. In addition, payment cards with more than one charge function can be handled, whereby the customer can specify which of several charge functions will be used to acquire the electronic cash.

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First Claim