System and method for conducting cashless transactions

• US 5,704,046 A
• Filed: 05/30/1996
• Issued: 12/30/1997
• Est. Priority Date: 05/30/1996
• Status: Expired due to Term

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Hogan, Edward J.
• Primary Examiner(s): Hayes, Gail O.
• Assistant Examiner(s): Poinvil, Frantzy
• Application Number:
  US08/657,629
• Time in Patent Office: 579 Days
• Field of Search: 364/401 R, 364/406, 364/408, 340/825.3, 340/825.33, 235/379-383, 395/239-243, 395/201, 902/8, 902/22, 902/40
• US Class Current: 705/39
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• 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. 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. 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. Terminal apparatus for conducting a cashless transaction requiring a transaction amount to complete said transaction, comprising:

means for receiving a card apparatus containing data representing at least an available fund;

means for reading said data from said card apparatus;

means responsive to at least said data representing said available fund for automatically increasing said available fund by a predetermined amount without insertion into said terminal of coins or cash, and without communication with an external central database for approval; and

means for decreasing said available fund by said transaction amount to complete said cashless transaction.

2. The terminal apparatus of claim 1 wherein said available fund is automatically increased by said predetermined fund amount when said available fund is less than a predetermined threshold amount.

3. The terminal apparatus of claim 2 wherein said predetermined threshold amount is said transaction amount.

4. The terminal apparatus of claim 1 wherein said available fund is automatically increased by said predetermined fund amount when said transaction amount is greater than said available fund.

5. The terminal apparatus of claim 1 wherein said data further includes a number of renewals, wherein said number of renewals is decreased when said available fund is less than a predetermined threshold level.

6. The terminal apparatus of claim 5 wherein said available fund is unchanged when said number of renewals is zero and said available fund is zero.

7. The terminal apparatus of claim 5 wherein said available fund is not increased when said number of renewals is zero.

8. The terminal apparatus of claim 1 further comprising means for communicating to a remote processor second data representing an account number associated with said apparatus and the transaction amount.

9. The terminal apparatus of claim 8 wherein said second data further represents a card number associated with said account number, said available fund, on expiration date associated with said account number and a transaction sequence number associated with said card.

10. The terminal apparatus of claim 1 further comprising means for recording information which is a function of the transaction onto said card apparatus.

11. The terminal apparatus of claim 10 wherein said information includes the value of said available fund plus said predetermined fund amount in the event of an increase of such amount less said transaction amount.

12. The terminal apparatus of claim 1 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.

13. The terminal apparatus of claim 12 further comprising means for receiving said list of selected account numbers through a communications link.

14. The terminal apparatus of claim 13 further comprising means for retaining said card apparatus when determined to be within said list.

15. The terminal apparatus of claim 1 wherein said data includes an expiration date associated with said apparatus, and said terminal apparatus further comprises means for comparing the date of said transaction with said expiration date.

16. The terminal apparatus of claim 1 further comprising means for providing second data representing a selected period of inactivity, 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.

17. The terminal apparatus of claim 1 further comprising means for providing a sequence number to index each cashless transaction.

18. The terminal apparatus of claim 1 wherein said transaction amount is expressed in a selected one of different currencies.

19. The terminal apparatus of claim 1 wherein said means responsive to said data representing said available fund automatically increases said available fund by a predetermined amount during said transaction.

20. A system for conducting a cashless transaction requiring a transaction amount to complete a transaction, comprising:

at least one memory located on a card apparatus containing data representing at least an available fund;

at least one terminal apparatus including;

(a) means for reading said data from said memory; and

(b) means responsive to at least said data representing said available fund for automatically increasing said available fund in said card by a predetermined amount without insertion into said terminal of coins or cash, and without communication with an external central database for approval; and

(c) means for decreasing said available fund by said transaction amount to complete said cashless transaction.

21. The system of claim 20 wherein said available fund is increased when said available fund falls below a predetermined threshold amount.

22. The system of claim 21 wherein said predetermined threshold amount equals the transaction amount.

23. The system of claim 20 wherein said predetermined amount equals an amount necessary to complete said cashless transaction.

24. The system of claim 20 further including means for billing an account associated with said memory a predetermined sum upon said automatic increase.

25. The system of claim 24 wherein said means for billing includes means for determining that said automatic increase has occurred.

26. The system of claim 25 wherein said predetermined sum is added to said available fund when said available fund is less than the amount of the transaction.

27. The system of claim 26 wherein upon said billing, said predetermined sum is added to a pooled account.

28. The system of claim 27 further including means for reimbursing the transaction amount out of said pooled account.

29. The system of claim 20 wherein said terminal further includes means for recording information in said memory which information is a function of the transaction.

30. The system of claim 29 wherein said information includes a new account balance which equals said available fund less the transaction amount plus, in the event of an automatic increase, said predetermined sum.

31. The system of claim 20 wherein said terminal further includes means for receiving said memory.

32. A method for conducting a cashless transaction requiring a transaction amount to complete said transaction, comprising the steps of:

reading data from a memory located on a card representing at least an available fund for said cashless transaction;

automatically increasing said available fund by a predetermined amount responsive to at least said data representing said available fund without insertion into said terminal of coins or cash, and without communication with an external central database for approval; and

decreasing said available fund by said transaction amount to complete said cashless transaction.

33. The method of claim 32 wherein said available fund is increased when said available fund falls below a predetermined threshold amount.

34. The method of claim 33 wherein said predetermined threshold amount equals the transaction amount.

35. The method of claim 34 wherein said predetermined amount is the difference between the transaction amount and said available fund.

36. The method of claim 32 further including the steps of:

providing an account associated with said memory; and

billing said account an amount which is a function of said predetermined amount.

37. The method of claim 36 further including the steps of:

creating a pooled account; and

reimbursing out of said pooled account the transaction amount.

38. The method of claim 37 wherein said reimbursing step includes:

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

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

reimbursing said financial card company the transaction amount from said pooled account.

39. The method of claim 32 further comprising the step of recording said available fund'"'"'s balance in said memory after increasing said available fund.

40. The method of claim 32 wherein said automatic increase of said available fund responsive to at least said data occurs before said decreasing step.