INTERMEDIARY PAYMENT AND ESCROW SYSTEM AND METHOD

摘要

A method for enabling consumers in a commercial or gaming context to push funds from a traditional open loop account to a closed loop account, and back. At the request of a consumer, funds are transferred to an open loop account of an intermediary payment system that holds or keeps track of virtual closed loop accounts for each consumer and virtual open or closed loop accounts for individual electing merchants or gaming establishments. The consumer may elect to open and use an associated closed loop card to acquire goods or services at the electing private label merchant's or to place a bet at the private label gaming facility or device that will cause funds to be transferred from the consumer's virtual closed loop account to the merchant or gaming establishment's closed loop account. Thereafter, the funds are transferred from the intermediary payment system to an open loop account belonging to the commercial or gaming merchant. The system allows for many unique functionalities so that the consumer does not need a bank account, but can through card features selected, use one or more accounts like a bank account, including for international transactions, linking of cards (as an example for money transfers to students), and make purchases free of digital tracking to the account holding consumer. The method further benefits merchants and others involved in their use through the ability to structure non-traditional fee structures and loyalty or other rewards.

主权项

1. A method of operating an intermediary payment system, comprising: establishing at a financial institution an account controlled by an intermediary entity, the account being associated with an open loop financial system, the intermediary entity establishing closed loop financial system sub-accounts using unique BINs for each of a plurality of consumers and each of a plurality of merchants or devices that accept payment via the closed loop financial system; receiving at the intermediary entity a request from one of the consumers that results in funds being transferred to the account controlled by the intermediary entity, the intermediary entity crediting the funds to the closed loop financial system sub-account belonging to that consumer; receiving at the intermediary entity an indication from one of the merchants or devices that the one of the account-holding consumers made a purchase or wagered a given value of funds within the closed loop financial system; debiting the given value of funds from the closed loop financial system sub-account belonging to the initiating account-holding consumer and crediting the given value of funds to the closed loop financial system sub-account belonging to the electing merchants or gaming establishment; and transferring the given value of funds from the sub-account belonging to the electing merchant or devices to an open loop financial system account belonging to the merchant that operates the business, or GEO that provides access to the gaming.