Automatic settlement of user account with creditor from transaction kiosk

• US 20070100750A1
• Filed: 01/10/2006
• Published: 05/03/2007
• Est. Priority Date: 10/31/2005
• Status: Active Grant

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: Hamed Shahbazi, Jack Madrid, Roy Goncalves, Sandra Hartfield
• Inventors: Goncalves, Roy, Shahbazi, Hamed, Hartfield, Sandra, Madrid, Jack
• Granted Patent: US 8,025,213 B2
• Time in Patent Office: Days
• US Class Current: 705/43
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/18 involving self-service terminals [SST], vending machines, kiosks or multimedia terminals
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• CPC Class Codes: G07F 19/202 Depositing operations within ATMs depositing in general G07D11/00

Abstract

A transaction kiosk collects cash from a user and then electronically negotiates with the user'"'"'s creditor to settle a balance on an account with the creditor. The bank recognizes the cash deposited in the transaction kiosk by the user as security for the settlement amount. The cash deposited in the transaction kiosk is considered a cash asset owned by the bank and available to satisfy depositor claims. A transaction processor brokers the transaction between the user of the transaction kiosk, the surety bank, and the creditor.

Claims

1. A method of allocating moneys owned and controlled by a bank, the method comprising

validating a first amount of a cash deposit by a user at a transaction location;

physically securing the cash deposit at the transaction location; and

transmitting data including the first amount from the transaction location to the bank to update a record of a second amount of cash available to the bank to satisfy depositors'"'"' claims by including the first amount of the cash deposit physically secured at the remote transaction location within the second amount.

2. The method of claim 1, wherein the transaction location comprises a kiosk.

3. The method of claim 2, wherein the step of physically securing further comprises holding the cash deposit within a vault in the kiosk.

4. The method of claim 3 further comprising contracting between the bank and a third party owner of the kiosk to separate ownership of the vault and the cash deposit therein from other physical assets of the kiosk, wherein the vault and the cash deposit therein are owned by the bank.

5. The method of claim 1 further comprising leveraging the first amount to secure a payment on behalf of the user to a creditor of the user.

6. The method of claim 1, wherein the record is updated before the cash deposit is physically removed from the transaction location.

7. A computer readable medium having computer-executable instructions for performing a computer process implementing the method of claim 1.

8. A method for settlement of an account of a debtor with a creditor by a bank on behalf of the debtor, the method comprising

validating a first amount of a cash deposit by the debtor at a transaction location;

transmitting data including the first amount from the transaction location to the bank to update a record of a second amount of cash available to the bank to satisfy depositors'"'"' claims by including the first amount of the cash deposit physically secured at the transaction location within the second amount; and

transmitting a confirmation from the transaction location to the creditor in settlement of the account of the debtor with the creditor by the bank on behalf of the debtor, wherein the settlement is secured by the validated first amount of the cash deposit.

9. The method of claim 8 further comprising physically securing the cash deposit at the transaction location.

10. The method of claim 9, wherein the transaction location comprises a kiosk.

11. The method of claim 10, wherein the step of physically securing further comprises holding the cash deposit in a vault within the kiosk.

12. The method of claim 11 further comprising contracting between the bank and a third party owner of the kiosk to separate ownership of the vault and the cash deposit therein from other physical assets of the kiosk, wherein the vault and the cash deposit therein are owned by the bank.

13. The method of claim 8, wherein the record is updated before the cash deposit is physically removed from the transaction location.

14. The method of claim 8, wherein the step of transmitting the confirmation further comprises transmitting the confirmation to the creditor.

15. The method of claim 8 further comprising transmitting data regarding the settlement from the transaction location to the bank.

16. The method of claim 8 further comprising receiving data identifying a balance of the account of the debtor from the creditor.

17. The method of claim 8 further comprising charging a transaction fee to the debtor.

18. The method of claim 8 further comprising returning a third amount to the debtor, wherein the third amount is the difference between the first amount, a balance of the account of the debtor, and any transaction fee.

19. The method of claim 18, wherein the third amount is returned to the debtor in the form of a prepaid convenience card.

20. The method of claim 8 further comprising allocating a portion of the second amount of cash to settle the account of the debtor.

21. A computer readable medium having computer-executable instructions for performing a computer process implementing the method of claim 8.

22. A computer readable medium having computer-executable instructions for performing a computer process implementing the method of claim 9.

23. A method of allocating moneys owned and controlled by a bank, the method comprising

receiving data at the bank from a transaction location via a network, the data including a first amount of a cash deposit by a user validated and physically secured at the transaction location;

and

updating a record of a second amount of cash available to the bank to satisfy depositors'"'"' claims by including the first amount of the cash deposit within the second amount.

24. The method of claim 23 further comprising receiving data identifying a balance of the account from the creditor.

25. The method of claim 23 receiving notification at the bank of a confirmation issued to a creditor that the bank will, on behalf of the user, settle an account of the user with the creditor, wherein settlement is secured by the first amount of the cash deposit.

26. The method of claim 25 further comprising remitting payment by the bank to the creditor with funds from the second amount in settlement of the account of the user.

27. The method of claim 23, wherein the record is updated before the cash deposit is physically removed from the transaction location.

28. A method for settlement of an account of a debtor with a creditor by a bank on behalf of the debtor, the method comprising

receiving a first set of data from a transaction location via a network, the first set of data including a first amount of a cash deposit by the debtor validated and physically secured at the transaction location;

and

transmitting data including the first amount to the bank via the network to update a record of a second amount of cash available to the bank to satisfy depositors'"'"' claims by including the first amount of the cash deposit physically secured at the transaction location within the second amount.

29. The method of claim 28 further comprising

receiving a second set of data from the transaction location via the network, the second set of data including a request to pay an account of the debtor with a creditor;

transmitting a confirmation to the creditor that the bank will, on behalf of the debtor, settle the account of the debtor with the creditor, wherein settlement is secured by the first amount of the cash deposit.

30. The method of claim 29 further comprising transmitting notification of the confirmation to the creditor to the bank.

31. The method of claim 29 further comprising transmitting rules concerning transaction fee amounts and/or allocations to the bank.

32. The method of claim 29 further comprising

receiving a third set of data identifying a balance of the account of the debtor from the creditor;

and

transmitting the third set of data to the transaction kiosk via the network.

33. The method of claim 28, wherein the data including the first amount is transmitted to the bank before the cash deposit is physically removed from the transaction location.

34. A system for enabling a surety bank to conduct a transaction to settle an account between a debtor and a creditor, the system comprising

a transaction kiosk for access by the debtor further comprising

a cash collection device;

a cash value validation device; and

a vault separately owned by the surety bank that contains any collected cash;

a transaction processor system connected with the transaction kiosk via a communication network;

a surety bank system connected with the transaction processor system via the communication network;

a creditor system connected with the transaction processor system via the communication network, wherein

the transaction processor system facilitates communications between the transaction kiosk, the surety bank system, and the creditor system over the network to settle the account of the debtor with the creditor.

35. A transaction kiosk for accessing cash, settling accounts with creditors, or performing electronic banking functions comprising

and automatic cash collection component;

and automatic cash recognition component; and

and automatic cash value validation component.

36. The transaction kiosk of claim 35 further comprising a vault for receiving cash deposits.

37. The transaction kiosk of claim 35, wherein a bank owns the vault, including any money within the vault.

38. The transaction kiosk of claim 35, wherein a second party owns the transaction kiosk exclusive of the vault.