SYSTEM OF TRANSFERRAL OF FUNDS

• US 3,852,571 A
• Filed: 08/16/1972
• Issued: 12/03/1974
• Est. Priority Date: 05/18/1970
• Status: Expired due to Term

• Current Assignee: Bruce Wood Hall, Michael J. Shade
• Original Assignee: Bruce Wood Hall, Michael J. Shade
• Inventors: Hall, Bruce Wood, Shade, Michael J.
• Primary Examiner(s): Cook, Daryl W.
• Assistant Examiner(s): Kilgore, Robert M.
• Application Number:
  US05/280,984
• Time in Patent Office: 839 Days
• Field of Search: 235/61.7B,61.9R,61.9A,61.11D,61.7R 197/19 178/3,4 340/152,149A 200/46R
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/042 characterized in that the payment protocol involves at least one cheque
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03

Abstract

A system for transferring funds between a customer'"'"''"'"'s account and a transferee'"'"''"'"'s account includes input output terminals and a digital computer at a central location. Retail merchants have input output terminals at each point of sale. These terminals include a card reader for encoding identifying indicia from the customer'"'"''"'"'s identification card. The amount of sale is encoded by a keyboard. At the central location the available balance which can be drawn against each customer'"'"''"'"'s account and the accumulated credit for the merchant'"'"''"'"'s account are stored and continuously updated. A communication link transmits the encoded identifying indicia and the amount of sale from each input output terminal to the central location. A digital computer at the central location debits the amount of sale against the customer'"'"''"'"'s available balance and credits the amount of sale to the merchant'"'"''"'"'s accumulated credit. A signal signifying completion of sale, or indicating no sale if the amount exceeds the customer'"'"''"'"'s available balance, is transmitted to the point of sale. A verifier unit at each input output terminal has a keyboard for entering an identification code known only to the customer. Comparsion of the code entered by the keyboard with an invisible code on the identification card verifies the identity of the customer. Separation of the verifier from the card reader insures security of the identification procedure.

Claims

1. A system for transferring funds between customers'"'"''"'"' accounts and retail merchants'"'"''"'"' accounts comprising:

an identification card for each of a plurality of customers, each card having machine sensible identifying indicia, input terminals at the points of sale of the retail merchants for encoding the identification of the retail merchant, the identifying indicia of the customer making a transaction and the amount to be transferred, means at a central location for storing the customer'"'"''"'"'s available balance which can be drawn against the accounts of a plurality of customers, means at said central location for storing retail merchants'"'"''"'"' accumulated credit for the accounts of a plurality of said retail merchants, a communication link connected to said input terminals and connected to said cenTral location for transmitting the encoded identifying indicia and amount to be transferred from each input output terminal to said central location, a digital computer at said central location connected to said means at said central location for completing the transfer which simultaneously debits said amount against said customer'"'"''"'"'s available balance and credits said amount to the identified retail merchant'"'"''"'"'s accumulated credit, in response to transmission of said encoded identifying indicia and said amount to be transferred, means for applying to said communications link a signal signifying completion of transfer only if the customer'"'"''"'"'s stored available balance exceeds the amount to be transferred and for applying a signal indicating no transfer if the amount exceeds the customer'"'"''"'"'s available balance, and a printer at each point of sale connected to an input terminal at that point of sale and producing a hard copy receipt recording the transaction in response to the receipt of said signal signifying completion of transfer, said receipt providing visual evidence of the transfer for comparison with the customer'"'"''"'"'s statement.

2. The system recited in claim 1, wherein the personal identifying indicia is encoded on each identification card as a machine sensible identifying code which is not visible to the human eye, said input terminal at the point of sale for entering the customer'"'"''"'"'s personal identifying indicia comprising a vertifier unit including a keyboard by which the customer can enter his identifying code and, means for verifying including means for comparing the machine sensible identifying code on the customer'"'"''"'"'s identification card with the identifying code entered by the customer at the keyboard to verify identification of the customer.

3. The system recited in claim 2 wherein each input terminal includes a card reader for sensing said machine sensible identifying indicia code, said card reader being a separate unit from the verifier unit at the same input output terminal, the separation of the two units allowing the customer to enter the code without observance by the merchant, said verifier unit and said card reader being connected by a comparison channel for comparing the code entered by the customer with the code on the identification card, the comparison channel between card reader and the verifier unit allowing the card to remain in the card reader during the entire transaction of verification and transmission of the encoded identifying indicia to said central location.

4. The system recited in claim 1 wherein each input output terminal includes a keyboard for encoding the amount to be transferred.

5. The system recited in claim 1 wherein said central location means includes a recording medium for recording the transfers from the customer'"'"''"'"'s account so that said recording medium can be transferred to a subscriber at the end of the day for updating the customer'"'"''"'"'s account as maintained by said subscriber.

6. The system recited in claim 5 wherein said subscriber is the customer'"'"''"'"'s bank and wherein said recording medium is used for updating the customer'"'"''"'"'s account as maintained by said bank.

7. A method of transferring funds between customers'"'"''"'"' accounts and retail merchants'"'"''"'"' accounts comprising:

sensing at input output terminals identifying indicia on customers'"'"''"'"' identification cards, encoding the identifying indicia and the amounts to be transferred, storing at a central location the available balance which can be drawn against each customer'"'"''"'"'s account, accumulating credit for each retail merchant'"'"''"'"'s account, transmitting the encoded identifying indicia and amounts to be transferred from each input output terminal to said central location, debiting the amounts to be transferred against the customer'"'"''"'"'s available balance, crediting the amount to be transferred to the retail merchant'"'"''"'"'s accumulated credit, and transmitting a signal signifying completiOn of transfer only if the customer'"'"''"'"'s stored available balance exceeds the amount to be transferred and applying a signal indicating no transfer if the amount exceeds the customer'"'"''"'"'s available balance.

8. The method recited in claim 7 further comprising:

entering an identifying code known only to the customer at an input output terminal, and comparing the entered identifying code with a machine sensible, invisible identification code on the customer'"'"''"'"'s identification card to verify identification of the customer.