System and method for conducting cashless transactions

• US 5,557,516 A
• Filed: 02/04/1994
• Issued: 09/17/1996
• Est. Priority Date: 02/04/1994
• Status: Expired due to Term

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: MasterCard International InCorporation (MasterCard Incorporated)
• Inventors: Hogan, Edward J.
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): Poinvil, Frantzy
• Application Number:
  US08/191,637
• Time in Patent Office: 956 Days
• Field of Search: 235/379, 235/380, 235/383, 235/492, 364/400, 364/401, 364/406, 364/408
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/3437 the counter having non-monetary units, e.g. trips
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/0833 Card having specific functional components
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence

Abstract

In a commercial transaction system, a system user uses a card device to interact with sales or transaction terminals to conduct cashless transactions. Each terminal processes data including a balance stored on the card device and updates the stored data at the end of the transaction. The system is specially designed for purchases of items or transactions of relatively small monetary value, where purchases are generally unattended by salespersons. In this manner, the amount of the transaction is deducted from the balance on the card device.

In accordance with the invention, when the existing balance associated with the card does not cover the price of the transaction, the system provides an automatic renewal feature which automatically increases the balance of the card device by a predetermined amount. Such a feature allows the purchase to be made without inconveniencing the card user to increase the balance by other means. Each time the balance is increased by an automatic renewal, the card issuing bank bills the card user for increments of the predetermined amount.

Claims

1. Financial card apparatus comprising:

first means for providing first data representing an available fund for cashless transactions;

second means for providing second data in said card apparatus representing a number of renewals, each of which represents an increase of a predetermined amount to said available fund; and

third means for providing third data identifying an account for billing, said account associated with said financial card apparatus;

whereby an increase in said available fund is accompanied by a change in said number of renewals, and whereby upon said change said account is billed for an amount which is a function of said predetermined amount and said change in said number of renewals.

2. The card apparatus of claim 1 wherein the first and second means include a memory for storing the first and second data.

3. The card apparatus of claim 2 wherein said memory is an electrically erasable programmable read-only-memory (EEPROM).

4. The card apparatus of claim 1 wherein the first and second means include magnetic storage means for storing the first and second data.

5. The card apparatus of claim 1 further comprising fourth means for providing fourth data representing a selected period of inactivity, said available fund being redeemable after said period elapses.

6. The card apparatus of claim 1 further comprising fourth means for providing fourth data on a maximum number of said renewals.

7. The card apparatus of claim 1 wherein when said available fund falls below a predetermined threshold, said available fund is increased by said predetermined amount to complete a particular cashless transaction.

8. The card apparatus of claim 7 wherein said predetermined amount is the difference between the amount of said particular cashless transaction and said available fund.

9. The card apparatus of claim 8 wherein when said number of renewals equals zero and said available fund equals zero, no increase in said available fund is allowed to complete said particular cashless transaction.

10. Terminal apparatus for conducting a cashless transaction comprising:

means for receiving a card apparatus containing data representing at least a number of renewals and an available fund for said cashless transaction;

means for reading said data from said card apparatus;

means responsive to at least said data for increasing said available fund and causing said number of renewals to be changed; and

means for processing said cashless transaction.

11. The terminal apparatus of claim 10 wherein said available fund is increased when said available fund falls below a predetermined threshold amount.

12. The terminal apparatus of claim 11 wherein said available fund is increased by a predetermined fund amount when said available fund is less than said predetermined threshold amount and said number of renewals falls within a predetermined set of numbers.

13. The terminal apparatus of claim 12 wherein each renewal represents an increase of said predetermined fund amount to said available fund, and wherein said number of renewals is changed by one when said available fund is increased.

14. The terminal apparatus of claim 13 wherein said number of renewals is decreased when said available fund is increased.

15. The terminal apparatus of claim 14 wherein said available fund is unchanged when said number of renewals is zero and said available fund is zero.

16. The terminal apparatus of claim 10 further comprising means for communicating to a remote processor second data representing an account number associated with said card apparatus, and an amount of said cashless transaction.

17. The terminal apparatus of claim 16 wherein said second data further represents a card number associated with said account number, said available fund, an expiration date associated with said account number and a transaction sequence number associated with said card.

18. The terminal apparatus of claim 10 further comprising means for recording information which is a function of the transaction onto said card apparatus.

19. The terminal apparatus of claim 18 wherein said information includes values of said available fund and the number of renewals.

20. The terminal apparatus of claim 10 wherein said data includes an account number associated with said card apparatus, said terminal apparatus further comprising:

means for storing a list of selected account numbers;

means for comparing said account number against said list; and

means for determining whether said account number is within said list.

21. The terminal apparatus of claim 20 further comprising means for receiving said list of selected account numbers through a communications link.

22. The terminal apparatus of claim 20 further comprising means for retaining said card apparatus when determined to be within said list.

23. The terminal apparatus of claim 10 wherein said data includes an expiration date associated with said card apparatus, and said terminal apparatus further comprising means for comparing the date of said transaction with said expiration date.

24. The terminal apparatus of claim 10 further comprising means for providing second data representing a selected period of inactively, means for determining whether the selected period has elapsed, and means for adjusting said available fund to zero after said selected period is determined to have elapsed.

25. The terminal apparatus of claim 10 wherein said processing means includes means for providing a sequence number to index each cashless transaction.

26. The terminal apparatus of claim 10 wherein an amount of said cashless transaction is expressed in a selected one of different currencies.

27. A system for conducting a cashless transaction comprising:

at least one user card apparatus containing data representing at least a number of renewals and an available fund for said cashless transaction;

at least one terminal apparatus including (a) means for receiving said user card apparatus;

(b) means for reading said data from said card apparatus;

(c) means responsive to at least said data for increasing said available fund and causing said number of renewals to be changed and (d) means for processing said cashless transaction; and

means for collecting from said terminal apparatus information about said cashless transaction.

28. The system of claim 27 wherein said available fund is increased when said available fund falls below a predetermined threshold amount.

29. The system of claim 28 wherein said predetermined threshold amount equals the amount of said transaction.

30. The system of claim 29 wherein said available fund is increased by a predetermined fund amount when said available fund is less than a predetermined threshold amount and said number of renewals falls within a predetermined set of numbers.

31. The system of claim 30 wherein each renewal represents an increase of said predetermined fund amount to said available fund, and wherein said number of renewals is changed by one when said available fund is increased.

32. The system of claim 31 wherein said number of renewals is decreased when said available fund is increased.

33. The system of claim 28 wherein when said number of renewals is zero, said available fund is increased by the difference between said available fund and the amount of said transaction to complete the transaction.

34. The system of claim 33 wherein when said number of renewals is zero and said available fund is zero, said available fund is not increased resulting in an incomplete transaction.

35. The system of claim 27 further including means for billing said user a predetermined sum upon a change in said number of renewals.

36. The system of claim 35 wherein said means for billing includes means for determining that a change in said number of renewals has occurred.

37. The system of claim 36 wherein said number of renewals is changed when said predetermined sum is added to said available fund.

38. The system of claim 37 wherein said predetermined sum is added to said available fund when said available fund is less than the amount of the transaction.

39. The system of claim 35 wherein upon said billing said predetermined sum is added to a pooled account.

40. The system of claim 39 further including means for reimbursing the amount of said transaction out of said pooled account.

41. The system of claim 35 wherein said terminal further includes means for recording information on said card apparatus which information is a function of the transaction.

42. The system of claim 41 wherein said information includes a new account balance which equals said available fund less the amount of the transaction plus, in the event of a change in said number of renewals, said predetermined sum.

43. The system of claim 42 wherein said information further includes a new number of renewals which equals said number of renewals less one in the event there has been said change in said number of renewals.

44. A method for conducting a cashless transaction with a user card apparatus comprising the steps of:

providing data in said user card apparatus representing at least a number of renewals and an available fund for said cashless transaction;

increasing said available fund in response to at least said data;

causing said number of renewals to be changed when said available fund is increased; and

processing said cashless transaction.

45. The method of claim 44 further comprising the steps of:

increasing said available fund a predetermined amount in the event said available fund is less than the amount of the transaction;

subtracting from said available fund the amount of said transaction to equal a new balance;

recording said new balance on said card apparatus; and

completing said cashless transaction.

46. The method of claim 45 wherein said increase to said available fund only occurs in the event said number of renewals is within a predetermined set of numbers.

47. The method of claim 45 wherein said predetermined amount is the difference between the amount of said transaction and said available fund in the event said number of renewals equals zero.

48. The method of claim 45 wherein said increase to said available fund does not occur if said available fund is zero and said number of renewals is zero.

49. The method of claim 45 further comprising the step of changing the number of renewals upon an increase to said available fund.

50. The method of claim 49 further including the steps of providing an account associated with said card apparatus;

and

billing said account an amount which is a function of said predetermined amount and said change in said number of renewals.

51. The method of claim 50 further including the steps of creating a pooled account;

and

reimbursing out of said pooled account the amount of said transaction.

52. The method of claim 51 wherein said pooled account is increased the amount billed to said accounts.

53. The method of claim 51 wherein:

said creating step occurs at a bank which issues said card apparatus; and

wherein said reimbursing step includes;

having an acquirer bank pay the amount of said transaction to an account associated with said terminal;

having a financial card company pay said acquirer bank the amount of said transaction;

reimbursing said financial card company out of said pooled account, the amount of said transaction.

54. The method of claim 44 wherein said providing step includes the step of storing temporary data representative of another cashless transaction.