This application relates generally to payment accounts. More specifically, this application relates to systems and methods for activating a payment account.
Gift cards, stored value payment instruments, and other prepaid payment instruments have become increasingly popular in recent years. These gifts cards or payment instruments often are linked to an underlying payment account with an account balance, although the underlying payment account may not be tied to a particular individual. Each of these payment instruments also often has a number that is encoded in a magnetic stripe and/or a bar code, with the number being associated with the underlying payment account.
The increasing popularity of these payment instruments have given rise to several problems. One problem of great concern is security. In one scenario, a thief may go to a store and secretly scan the bar code of a payment instrument that has not been activated. The thief would then simply wait for an unknowing purchaser to buy the payment instrument. Once the payment instrument has been activated following the purchase, the thief may clone the number onto another “evil twin” payment instrument, and either resell or use the “evil twin” payment instrument as if the thief was the legitimate purchaser.
Unlike traditional magnetic stripes and bar codes, radio frequency devices can provide greater security because they are better able to prevent a number that is encoded in them from being read and/or cloned. In some instances, the number that is encoded in a radio frequency device may change each time the radio frequency device is read. However, if radio frequency devices are used, it may not be possible to activate the payment account readily because many point of sale devices remain incapable of reading radio frequency devices.
Hence, there is a great need in the art for systems and methods to improve activation of a payment account.