Credit card system including a central unit and a plurality of local units for conducting low-cost transactions

• US 5,206,488 A
• Filed: 06/07/1989
• Issued: 04/27/1993
• Est. Priority Date: 06/07/1989
• Status: Expired due to Term

• Current Assignee: Cardis Enterprise International NV
• Original Assignee: Mordechai Teicher
• Inventors: Teicher, Mordechai
• Primary Examiner(s): LaRoche, Eugene R.
• Assistant Examiner(s): Glembocki, Christopher
• Application Number:
  US07/362,785
• Time in Patent Office: 1,420 Days
• Field of Search: 235/379, 235/380, 235/381, 235/383, 364/408, 364/406, 902/8, 902/22, 902/24, 340/825.33, 340/825.34
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A credit card system comprises a central unit and plurality of local units communicating with the central unit. The central unit includes a central storage device for each subscriber for storing amounts to be charged to the respective subscribers, and each of the local units includes a plurality of local storage devices assignable to the subscribers, at least one card reader for receiving a subscriber'"'"'s card and for enabling the subscriber to open a local account, to transfer thereto a predetermined sum from the central unit, and thereafter to order local transactions involving the sale of products or services from the local account, until a specified permitted sum is in the local account. When the local account drops below the permitted sum, a transfer is automatically effected from the subscriber'"'"'s central storage device. The system thus performs both local and central transactions while minimizing communication with the central unit, thereby enabling credit card transactions of low value, and at high-speed.

Claims

1. A credit card system for a plurality of subscribers each having a subscriber account and a credit card identifying the subscriber'"'"'s account, comprising:

a central unit and a plurality of local units communicating with said central unit;

said central unit including a central storage device for each subscriber'"'"'s account for storing amounts to be charged to the respective subscriber'"'"'s accounts;

each of said local units including;

a plurality of local storage devices assignable to said subscriber'"'"'s accounts;

at least one card reader for receiving a subscriber'"'"'s card when inserted therein to order a transaction involving the sale of a product or service, and for identifying the subscriber'"'"'s account;

an Open-Account means enabling a subscriber of the central unit, upon inserting the subscriber'"'"'s card into the card reader of the local unit, to open a local account in the respective local unit, to be assigned a local storage device, and to transfer and store a predetermined amount from the subscriber'"'"'s account at the central storage device to the subscriber'"'"'s local storage device;

validating means for comparing the cost of the ordered transaction with the amount stored in the subscriber'"'"'s local storage device, and for validating the transaction if said cost does not exceed said stored amount by a specified permitted sum; and

means effective upon validating the transaction for subtracting the cost thereof from the amount stored in the subscriber'"'"'s local storage device.

2. The system according to claim 1, wherein each of said local units further includes:

display means for displaying whether or not the transaction has been validated, and the amount remaining in the subscriber'"'"'s local storage device.

3. The system according to claim 1, wherein each of said local units further includes means, effective when the amount stored in the local storage unit drops below a specified minimum, to automatically transfer a predetermined amount from the subscriber'"'"'s central storage device to the subscriber'"'"'s local storage device.

4. The system according to claim 1, wherein each of said local units further includes:

a depressible Close-Account button enabling a subscriber, upon inserting his credit card into the card reader of the local unit, to close the subscriber'"'"'s local account and to retransfer the balance in the subscriber'"'"'s local storage device to the subscriber'"'"'s central storage device.

5. The system according to claim 1, wherein each of said local units further includes:

means, effective upon the local storage device of a specific subscriber being inactive for a specified period of time, to automatically close the local account of the respective subscriber and to retransfer the balance in the subscriber'"'"'s local storage device to the subscriber'"'"'s central storage device.

6. The system according to claim 1, wherein there are a plurality of central units for different groups of subscribers;

each of said central units including a central storage device for each subscriber of the respective group for storing amounts to be charged to the subscribers of the respective group;

all said central units communicating with said plurality of local units.

7. The system according to claim 1, wherein at least one of said local units includes a local network servicing has a plurality of card readers at least one of which has an Open-Account means.

8. A credit card system for a plurality of subscribers each having a subscriber account and a credit card identifying the subscriber, comprising:

a central unit and a plurality of local units for selling a product or service and communicating with said central unit;

said central unit including a central storage device for each subscriber'"'"'s account for storing amounts to be charged to the respective subscriber'"'"'s account;

each of said local units including;

a plurality of local storage devices assignable to said subscriber'"'"'s accounts;

at least one card reader for receiving a subscriber'"'"'s card when inserted therein to order a transaction involving the sale of a product or service, and for identifying the subscriber'"'"'s account;

an Open-Account means enabling a subscriber of the central unit, upon inserting the subscriber'"'"'s card into the card reader of the local unit, to open a local account in the respective local unit, to be assigned a local storage device, and to transfer and store a predetermined amount from the subscriber'"'"'s central storage device to the subscriber'"'"'s local storage device;

validating means for comparing the cost of the ordered transaction with the amount stored in the subscriber'"'"'s local storage device, and for validating and executing the transaction if said cost does not exceed a predetermined amount with respect to said amount stored in the subscriber'"'"'s local storage device;

means effective upon validating the transaction for subtracting the cost thereof from the amount stored in the subscriber'"'"'s local storage device;

display means for displaying whether or not the transaction has been validated, and the amount remaining in the subscriber'"'"'s local storage device; and

means, effective upon the amount stored in the local storage unit dropping below a specified minimum, to automatically transfer a predetermined amount from the subscriber'"'"'s central storage device to the subscriber'"'"'s local storage device.

9. The system according to claim 8, wherein each of said local units further includes:

a depressible Close-Account button enabling a subscriber, upon inserting his credit card into the card reader of the local unit, to close the subscriber'"'"'s local account and to retransfer the balance in the subscriber'"'"'s local storage device to the subscriber'"'"'s central storage device.

10. The system according to claim 9, wherein each of said local units further includes:

means, effective upon the local storage device of a specific subscriber being inactive for a specified period of time, to automatically close the local account of the respective subscriber and to retransfer the balance in the subscriber'"'"'s local storage device to the subscriber'"'"'s central storage device.

11. The system according to claim 10, wherein at least one of said local units include a local network servicing a plurality of card readers at least one of which has an Open-Account means.

12. The system according to claim 8, wherein there are a plurality of central units for different groups of subscribers;

each of said central units including a central storage device for each subscriber of the respective group for storing amounts to be charged to the subscribers of the respective group;

all said central units communicating with said plurality of local units.

13. A credit card system for a plurality of subscribers each having a subscriber'"'"'s account and a credit card identifying the subscriber'"'"'s account, and including at least one central unit having a central storage device for each subscriber'"'"'s account for storing amounts to be charged to the respective subscriber'"'"'s account;

characterized in that said system further includes;

a plurality of local units for selling goods or services and communicating with said central unit;

each of said local units including;

a plurality of local storage devices assignable to said subscriber'"'"'s central storage device;

at least one card reader for receiving a subscriber'"'"'s card when inserted therein to order a transaction involving the sale of a product or service, and for identifying the subscriber'"'"'s account;

an Open-Account means enabling a subscriber of the central unit, upon inserting the subscriber'"'"'s card into the card reader of the local unit, to open a local account in the respective local unit, to be assigned a local storage device, and to transfer and store a predetermined amount from the subscriber'"'"'s central storage device to the subscriber'"'"'s local storage device;

validating means for validating a transaction if a cost associated therewith does not exceed a predetermined amount with respect to said amount stored in the subscriber'"'"'s local storage device;

and means effective upon validating the transaction for subtracting the cost thereof from the amount stored in the subscriber'"'"'s local storage device.

14. The system according to claim 13, wherein each of said local units further includes:

display means for displaying whether or not the transaction has been validated, and the amount remaining in the subscriber'"'"'s local storage device.

15. The system according to claim 13, wherein each of said local units further includes means, effective when the amount stored in the local storage unit drops below a specified minimum, to automatically transfer a predetermined amount from the subscriber'"'"'s central storage device to the subscriber'"'"'s local storage device.

16. The system according to claim 13, wherein each of said local units further includes:

a depressible Close-Account button enabling a subscriber, upon inserting his credit card into the card reader of the local unit, to close the subscriber'"'"'s local account and to retransfer the balance in the subscriber'"'"'s local storage device to the subscriber'"'"'s central storage device.

17. The system according to claim 13, wherein each of said local units further includes:

means, effective upon the local storage device of a specific subscriber being inactive for a specified period of time, to automatically close the local account of the respective subscriber and to

retransfer the balance in the subscriber'"'"'s local storage device to the subscriber'"'"'s central storage device.

18. The system according to claim 13, wherein at least one of said local units includes a local network servicing a plurality of card readers at least one of which has an Open-Account means.

19. The system according to claim 13, wherein there are a plurality of central units for different groups of subscribers;

each of said central units including a central storage device for each subscriber of the respective group for storing amounts to be charged to the subscribers of the respective group;

all said central units communicating with said plurality of local units.