PERSONAL ELECTRONIC PAYMENT SYSTEM AND RELATED METHOD

• US 20070288371A1
• Filed: 05/24/2007
• Published: 12/13/2007
• Est. Priority Date: 05/25/2006
• Status: Abandoned Application

• Current Assignee: Aratha M. Johnson
• Original Assignee: Aratha M. Johnson
• Inventors: Johnson, Aratha M.
• Application Number:
  US11/753,124
• Publication Number:
  US 20070288371A1
• Time in Patent Office: Days
• US Class Current: 705/41
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A method for making person-to-person and person-to-retailer cash value exchanges in the form of electronic and card-based financial transactions is provided. A portable, hand-held electronic device is associated with a subscriber deposit account. The device is selectively activated by inputting a personal identification number, upon which a financial transaction in the form of receiving or making payments can be conducted. The hand-held device of the present invention can also be used to create temporary deposit accounts having a cash value assigned to blank payment cards having a pre-assigned identification code for later use as a debit card.

Claims

1. A method for making personal electronic and card-based financial transactions, comprising the steps of:

opening and maintaining a subscriber deposit account having a cash balance;

providing a portable, hand-held electronic device associated with the subscriber deposit account, and having an input, means for reading a financial card, a display and a wireless communication module for sending and receiving data;

activating the hand-held device by inputting a personal identification number;

requesting a financial transaction by sending a wireless electronic message;

debiting funds from the subscriber deposit account when making a payment financial transaction using the hand-held device, or crediting funds to the subscriber deposit account when receiving electronic payments using the hand-held device; and

sending a confirmation message to the hand-held device after approval of the financial transaction.

2. The method of claim 1, wherein the providing step includes the step of providing a hand-held device having a memory including a unique identification code associated with the subscriber deposit account, an input keypad, and a processor for encrypting transmitted data.

3. The method of claim 1, wherein the providing step includes the step of providing a hand-held device having means for tracking the location of the device.

4. The method of claim 1, including the step of subscribing to a service which provides the hand-held device and maintains the subscriber deposit account.

5. The method of claim 1, wherein the requesting financial transaction step includes the step of sending an electronic message including transaction type, transaction amount, and account identification.

6. The method of claim 5, including the step of encrypting the electronic message.

7. The method of claim 5, including the step of verifying the validity of the financial transaction request including matching the account identification in the electronic message with the account identification of the account from which funds are to be debited or credited.

8. The method of claim 6, wherein the verifying step further includes the steps of matching the transaction type and the transaction amount.

9. The method of claim 1, wherein the requesting a financial transaction step includes the step of the hand-held device sending an electronic message requesting a debit or a credit, and a second hand-held device or a merchant point-of-sale device sending an electronic message requesting a corresponding debit or a credit.

10. The method of claim 9, including the steps of matching the debit and credit message requests.

11. The method of claim 1, including the step of providing a blank payment card having an assigned identification code but without any credit or cash balance associated therewith.

12. The method of claim 11, including the steps of:

reading the identification code of the blank payment card using the hand-held device;

designating a cash amount to be associated with the blank payment card;

sending an electronic message using the hand-held device, including the cash amount to be associated with the blank payment card and the identification code of the blank payment card; and

creating a temporary account funded by the subscriber deposit account in the amount of the cash amount associated with the blank payment card and having an identification code associated with the identification code of the blank payment card.

13. A method for making personal electronic and card-based financial transactions, comprising the steps of:

opening and maintaining a subscriber deposit account having a cash balance;

providing a portable, hand-held electronic device having a memory including a unique identification code associated with the subscriber deposit account, an input keypad, a means for reading a financial card, a display and a wireless communication module for sending and receiving data, and a processor for encrypting transmitted data;

activating the hand-held device by inputting a personal identification number;

requesting a financial transaction by sending an encrypted wireless electronic message using the hand-held device, including debit or credit transaction type, transaction amount, and account identification data;

a second hand-held device or a merchant point-of-sale device sending an electronic message requesting a corresponding debit or a credit transaction type, transaction amount, and account identification data;

verifying the validity of the financial debit and credit transaction requests including matching the account identification in the electronic messages with the account identification of the account from which funds are to be debited or credited, and matching the transaction type and the transaction amount;

debiting funds from the subscriber deposit account when making a payment financial transaction using the hand-held device, or crediting funds to the subscriber deposit account when receiving electronic payments using the hand-held device; and

sending a confirmation message to the hand-held device after approval of the financial transaction.

14. The method of claim 13, wherein the providing step includes the step of providing a hand-held device having means for tracking the location of the device.

15. The method of claim 13, including the step of subscribing to a service which provides the hand-held device and maintains the subscriber deposit account.

16. A method for making personal electronic and card-based financial transactions, comprising the steps of:

opening and maintaining a subscriber deposit account having a cash balance;

providing a portable, hand-held electronic device having a memory including a unique identification code associated with the subscriber deposit account, an input keypad, a means for reading a financial card, a display and a wireless communication module for sending and receiving data, and a processor for encrypting transmitted data;

activating the hand-held device by inputting a personal identification number;

providing a blank payment card having an assigned identification code but not associated with an account having a credit or cash balance;

reading the identification code of the blank payment card using the hand-held device;

designating a cash amount to be associated with the blank payment card;

sending an electronic message using the hand-held device, including the cash amount to be associated with the blank payment card and the identification code of the blank payment card; and

creating an account funded by the subscriber deposit account in the amount of the cash amount associated with the blank payment card and having an identification code associated with the identification code of the blank payment card; and

sending a confirmation message to the hand-held device after approval of the financial transaction.

17. The method of claim 16, wherein the providing step includes the step of providing a hand-held device having means for tracking the location of the device.

18. The method of claim 16, including the step of subscribing to a service which provides the hand-held device and maintains the subscriber deposit account.