Combination payment card and methods thereof

A non-transitory computer readable medium having instructions stored thereon which, when executed by a processor of an acquirer configured to process both open-loop transactions and closed-loop transactions, cause the processor to:

• receive, at the processor of the acquirer, transaction information from a point-of-sale device through a sponsoring network, the point-of-sale device being located remotely from the processor of the acquirer and accepting a combination payment card associated with at least one of a closed-loop account and a prepaid account, and the transaction information comprising an authorization request, a payment card account number, a terminal identifier, and a merchant identifier;
• determine, using the processor of the acquirer, whether the payment card account number identifies a combination payment card by cross-referencing at least a portion of the account number against a known list of combination payment card accounts remotely from the point-of-sale device, wherein the combination payment card has an assigned card number that is associated with both closed-loop account that is affiliated with a merchant and the prepaid account that is affiliated with the sponsoring network;
• if the payment card account number identifies the combination payment card and the transaction information is received from the merchant:
• transmit, using the processor of the acquirer, an authorization of sale to the point-of-sale device through the sponsoring network based on determining the closed-loop account has sufficient funds, or
• communicate, using the processor of the acquirer, with the sponsoring network to determine whether the prepaid account has sufficient funds to cover an amount of deficiency in the closed-loop account based on determining the closed-loop account has insufficient funds;
• if the payment card account number identifies the combination payment card and the transaction information is not received from the merchant:
• transmit, using the processor of the acquirer, an authorization of sale to the point-of-sale device through the sponsoring network based on determining the prepaid account has sufficient funds, or
• request, via a first prompt at the point-of-sale device, an additional type of funds based on determining the prepaid account has insufficient funds;
• and
• if the payment card account number does not identify the combination payment card, determine, using the processor of the acquirer, whether a payment card account associated with the payment card account number has sufficient funds to cover the authorization request and transmit, using the processor of the acquirer, an authorization of sale to the point-of-sale device through the sponsoring network based on determining the payment card account has sufficient funds.

A payment processing system, comprising:

• a combination payment card, wherein the combination payment card has an assigned card number that is associated with both a closed-loop account and an open-loop account, wherein the closed-loop account associated with the assigned card number is affiliated with a closed-loop merchant and the open-loop account associated with the assigned card number is affiliated with a sponsoring network;
• a payment processor, wherein the payment processor is one of an acquirer and an issuer, wherein the payment processor is configured to:
• receive transaction information from a point-of-sale device connected to the payment processor through a sponsoring network, the point-of-sale device being located remotely from the payment processor and accepting the combination payment card, and the transaction information comprising an authorization request, a payment card account number, a terminal identifier, and a merchant identifier;
• determine whether the payment card account number identifies the combination payment card by cross-referencing at least a portion of the account number against a known list of combination payment card accounts remotely from the point-of-sale device;
• if the payment card account number identifies the combination payment card and the received transaction information is associated with the closed-loop merchant:
• transmit an authorization of sale to the point-of-sale device through the sponsoring network based on determining the closed-loop account has sufficient funds, or
• communicate with the sponsoring network to determine whether the open-loop account has sufficient funds to cover an amount of deficiency in the closed-loop account based on determining the closed-loop account has insufficient funds;
• if the payment card account number identifies the combination payment card and the received transaction information is not associated with the closed loop merchant:
• transmit an authorization of sale to the point-of-sale device through the sponsoring network based on determining the open-loop account has sufficient funds, or
• request, via a first prompt at the point-of-sale device, an additional type of funds based on determining the open-loop account has insufficient funds;
• and
• if the payment card account number does not identify the combination payment card, determine whether a payment card account identified by the payment card account number has sufficient funds and transmit an authorization of sale to the point-of-sale device through the sponsoring network based on determining the payment card account has sufficient funds.