# US 8,571,987 B1 · System, method, and computer readable medium for settling micropayment transactions to a pre-paid instrument > Agents: this data is available as JSON from the patentgrep API and MCP server — see https://patentgrep.com/llms.txt - Number: US 8,571,987 B1 - Document ID: US8571987B1 - Status: Granted - Kind: B1 - Application number: 13/568,715 - Filed: 2012-08-07 - Granted: 2013-10-29 - Earliest claimed: 2001-05-04 - Assignees: West Corporation - Applicants: Rodney J. Kempkes; Mark J. Pettay - Inventors: Rodney J. Kempkes; Mark J. Pettay - Web page: https://patentgrep.com/patent/US8571987B1 ## CPC - G06Q 20/04: Payment circuits - G06Q 20/10: specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems - G06Q 20/29: {characterised by micropayments} - G06Q 20/367: {involving electronic purses or money safes} - G06Q 30/06: Buying, selling or leasing transactions - G06Q: INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR ## Abstract The invention provides a system, method, and computer readable medium for conducting micropayment transactions between consumers and merchants. A merchant offers micropayment transactions to a consumer. The micropayment transaction is authorized, and the micropayment transaction is executed between the merchant and the consumer. A value parameter associated with a prepaid instrument, such as a prepaid calling card, is decremented by an amount corresponding to the value provided by the merchant. A payment is transferred to the merchant to settle the micropayment transaction. In a system of the invention, at least one prepaid calling card is issued to a consumer in exchange for a payment from the consumer. A merchant site conducts micropayment transactions and accepts the prepaid calling card as payment. A clearinghouse receives data associated with the prepaid calling card from the merchant site and processes the data to settle the micropayment transaction. ## Claims ### Claim 1 A method, comprising: determining that a type of prepaid instrument is valid for a type of micropayment transaction by a processor coupled to a program storage device, the prepaid instrument being associated with a first value parameter, the first value parameter being equal to a first number of value units; determining a second number of value units associated with the micropayment transaction, the second number of value units including a transaction cost; converting the second number of value units to a second value parameter based on a conversion factor; and dispositioning the second number of value units if the second value parameter is equal to or less than the first value parameter. ### Claim 2 (depends on 1) The method of claim 1, wherein the determination of validation of the type of the prepaid instrument includes comparing at least one of a prepaid instrument number and a personal identification number (PIN) associated with the prepaid instrument with a rating parameter associated with the type of the micropayment transaction. ### Claim 3 (depends on 2) The method of claim 2, wherein the rating parameter is based on age. ### Claim 4 (depends on 1) The method of claim 1, wherein the applicable transaction costs include at least one of a commission due a merchant, and any incentives given by the merchant. ### Claim 5 (depends on 1) The method of claim 1, wherein the value units are further associated with a specific merchant identifier (ID). ### Claim 6 (depends on 1) The method of claim 1, wherein the dispositioning of the associated value units includes exchanging between a unit of value used to conduct the micropayment transaction and a unit of value associated with the prepaid instrument. ### Claim 7 (depends on 6) The method of claim 6, wherein the unit of value used to conduct the micropayment transaction is at least one of a unit of monetary currency and a unit of time. ### Claim 8 A system, comprising: at least one prepaid instrument having a rating parameter issued to a consumer, the prepaid instrument being associated with a first value parameter, the first value parameter being equal to a first number of value units; a merchant site adapted to verify the rating parameter by a processor coupled to a program storage device, conduct micropayment transactions, and to accept data associated with the prepaid instrument as payment for the micropayment transaction, the conducting micropayment transactions including the merchant determining a second number of value units associated with the micropayment transaction and providing the second number of value units as a value of the micropayment transaction to the consumer; and a clearinghouse adapted to receive the data associated with the prepaid instrument from the merchant site, converting the second number of value units to a second value parameter based on a conversion factor and dispositioning the second number of value units if the second value parameter is equal to or less than the first value parameter to settle the micropayment transaction. ### Claim 9 (depends on 8) The system of claim 8, wherein the processing of the data to settle the micropayment transaction includes assigning value units to an amount of the micropayment transaction, deducting the assigned value units from the prepaid instrument, and crediting the merchant with the assigned value units. ### Claim 10 (depends on 9) The system of claim 9, wherein the value units are associated with a specific merchant identifier (ID). ### Claim 11 (depends on 9) The system of claim 9, wherein the value units are converted to one of a unit of monetary currency and a unit of time. ### Claim 12 (depends on 8) The system of claim 8, wherein the processing of the data to settle the micropayment transaction further includes determining at least one of a commission due the merchant and any incentives given by the merchant. ### Claim 13 (depends on 8) The method of claim 8, wherein the rating parameter is based on age. ### Claim 14 A non-transitory computer readable medium that provides instructions which, when executed by a machine, cause the machine to perform operations comprising: determining that a type of prepaid instrument is valid for a type of micropayment transaction, the prepaid instrument being associated with a first value parameter, the first value parameter being equal to a first number of value units; determining a second number of value units associated with the micropayment transaction, the second number of value units including a transaction cost; converting the second number of value units to a second value parameter based on a conversion factor; and dispositioning the second number of value units if the second value parameter is equal to or less than the first value parameter. ### Claim 15 (depends on 14) The non-transitory computer readable medium of claim 14, wherein the determination of validation of the type of the prepaid instrument includes comparing at least one of a prepaid instrument number and a personal identification number (PIN) associated with the prepaid instrument with a rating parameter associated with the type of the micropayment transaction. ### Claim 16 (depends on 15) The non-transitory computer readable medium of claim 15, wherein the rating parameter is based on age. ### Claim 17 (depends on 14) The non-transitory computer readable medium of claim 14, wherein applicable transaction costs include at least one of a commission due a merchant, and any incentives given by the merchant. ### Claim 18 (depends on 14) The non-transitory computer readable medium of claim 14, wherein the value units are further associated with a specific merchant identifier (ID). ### Claim 19 (depends on 14) The non-transitory computer readable medium of claim 14, wherein the dispositioning of the associated value units includes exchanging between a unit of value used to conduct the micropayment transaction and a unit of value associated with the prepaid instrument. ### Claim 20 (depends on 19) The non-transitory computer readable medium of claim 19, wherein the unit of value used to conduct the micropayment transaction is at least one of a unit of monetary currency and a unit of time.