System and method for processing closed loop cards at a merchant point of sale

A system comprising:

• a processor;
• and
• a non-transitory computer-readable storage device storing instructions which, when executed by the processor, cause the processor to perform operations comprising:
• receiving an indication from a device of a desire by a user to sell a closed loop account issued by another merchant not associated with a merchant that the user desires to make a purchase from, wherein the closed loop account is issued for use with a single entity;
• receiving a confirmation of an amount of money in the closed loop account by accessing a database of accounts over the Internet;
• transmitting, to the device, an offer to buy the closed loop account;
• receiving from the device an acceptance of the offer;
• cancelling the closed loop account based on the acceptance to yield a cancelled closed loop account;
• and
• creating a new closed loop account issued by the merchant and only available for use at the merchant, the new closed loop account funded by at least a portion of funds from the cancelled closed loop account.

A non-transitory computer readable storage device having instructions stored therein, which, when executed by a computing device, cause the computing device to perform operations comprising:

• receiving an indication from a device of a desire by a user to sell a closed loop account issued by another merchant not associated with a merchant that the user desires to make a purchase from, wherein the closed loop account is issued for use with a single entity;
• receiving a confirmation of an amount of money in the closed loop account by accessing a database of accounts over the Internet;
• transmitting, to the device, an offer to buy the closed loop account;
• receiving from the device an acceptance of the offer;
• cancelling the closed loop account based on the acceptance to yield a cancelled closed loop account;
• and
• creating a new closed loop account issued by the merchant and only available for use at the merchant, the new closed loop account funded by at least a portion of funds from the cancelled closed loop account.