Electronic-monetary system

• US 5,799,087 A
• Filed: 04/21/1995
• Issued: 08/25/1998
• Est. Priority Date: 04/28/1994
• Status: Expired due to Term

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Rosen, Sholom S.
• Primary Examiner(s): Barron, Jr., Gilberto
• Application Number:
  US08/427,287
• Time in Patent Office: 1,222 Days
• Field of Search: 380/24, 402/26, 235/379, 902/2, 705/17, 705/34, 705/41, 705/44
• US Class Current: 705/69
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/06 Private payment circuits, e.g. involving electronic currency used among participants of a common payment scheme
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 17/16 for devices exhibiting advertisements, announcements, pictures or the like
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 63/0823 using certificates cryptographic mechanisms or cryptographic arrangements for entity authentication involving certificates H04L9/3263
• CPC Class Codes: H04L 63/123 received data contents, e.g. message integrity
• CPC Class Codes: H04L 9/0891 : Revocation or update of secret information, e.g. encryption key update or rekeying
• CPC Class Codes: H04L 9/3263 : involving certificates, e.g. public key certificate [PKC] or attribute certificate [AC]; Public key infrastructure [PKI] arrangements network architectures or network communication protocols for supporting authentication of entities using certificates in a packet data network H04L63/0823

Abstract

An electronic-monetary system having (1) banks or financial institutions that are coupled to a money generator device for generating and issuing to subscribing customers electronic money including electronic currency backed by demand deposits and electronic credit authorizations; (2) correspondent banks that accept and distribute the electronic money; (3) a plurality of transaction devices that are used by subscribers for storing electronic money, for performing money transactions with the on-line systems of the participating banks or for exchanging electronic money with other like transaction devices in off-line transactions; (4) teller devices, associated with the issuing and correspondent banks, for process handling and interfacing the transaction devices to the issuing and correspondent banks, and for interfacing between the issuing and correspondent banks themselves; (5) a clearing bank for balancing the electronic money accounts of the different issuing banks; (6) a data communications network for providing communications services to all components of the system; and (7) a security arrangement for maintaining the integrity of the system, and for detecting counterfeiting and tampering within the system. An embodiment of the invention includes a customer service module which handles lost money claims and links accounts to money modules for providing bank access.

Claims

1. A system for transferring electronic notes between electronic modules comprising:

electronic modules each having a processor, a memory, and the capability to create a cryptographically secure channel and transfer and receive electronic notes via said cryptographically secure channel, and where each electronic module stores said electronic notes in its respective said memory;

wherein each stored electronic note comprises;

a body group of data fields including data indicative of a monetary value associated with said electronic note;

a transfer group of data fields including a list of transfer records, where each transfer record is generated by a transferor electronic module and includes a sequence number that distinguishes a transferred electronic note from one or more other transferred electronic notes transferred from a common said transferor electronic module and generated from a common electronic note.

2. The system of claim 1, wherein said monetary value is an original monetary value associated with said electronic note, and said transfer records further include a transferred monetary value.

3. The system according to claim 1, wherein said list of transfer records is capable of containing a plurality of transfer records.

4. The system according to claim 1, wherein said list of transfer records includes a plurality of transfer records, whereby each said transfer record is generated by a corresponding said transferor electronic module.

5. A method for transferring electronic notes between processor-based electronic modules, comprising the steps of:

establishing a cryptographically secure session between a transferor electronic module and a transferee electronic module;

creating a transfer electronic note by appending a transfer record to an electronic note stored in said transferor electronic module, where said transfer record indicates whether all or some portion of a monetary amount of said electronic note is being transferred;

transferring said transfer electronic note from said transferor electronic module to said transferee electronic module; and

wherein said transfer record includes a sequence number that distinguishes said transfer electronic note from another transfer electronic note from said transferor electronic module.

6. The method according to claim 5, wherein said electronic note, prior to appending said transfer record, includes another transfer record having another sequence number, said another transfer record corresponding to said electronic note being previously transferred to said transferor electronic module.

7. A method for transferring electronic notes of a predetermined total monetary value from a transferor money module to a transferee money module, said method comprising the steps of:

(a) said transferor money module selecting one or more electronic notes from which to provide said predetermined total monetary value;

(b) said transferor money module creating one or more transfer electronic notes by appending a respective transfer record and digital signature of said transferor money module to each said one or more electronic notes, where for each said one or more transfer electronic notes said respective transfer record indicates whether all or some portion of a monetary amount of said one or more electronic notes is being transferred;

(c) said transferor money module sending said one or more transfer electronic notes to said transferee money module;

(d) said transferee money module verifying the validity of said one or more transfer electronic notes;

(e) said transferee money module storing

information for each of said one or more electronic notes; and

wherein step (d) includes, for each transfer note of said one or more transfer notes, the steps of checking note information stored in said transferee money module, said note information representing other notes previously transferred to or by said transferee money module, for matches to said transfer note, and checking for note duplication by analyzing a representation of a note transfer tree based on the matches identified to said transfer note.

8. The method of claim 7, wherein said transfer record includes a sequence identification number, wherein for each one of said one or more electronic notes said sequence identification number distinguishes all transfer electronic notes generated therefrom.

9. The method of claim 7, wherein for each transfer electronic note of said one or more transfer electronic notes, step (d) includes the step of checking said transfer record and all other transfer records appended by other transferor money modules to confirm that for each transfer a monetary amount was transferred which is not greater than the monetary value transferred in an immediately precedent transfer.

10. The method of claim 7, wherein each transfer electronic note of said one or more transfer electronic notes includes digital signatures and certificates of each transferor money module over the history of said transfer electronic note;

wherein step (d) further comprises the step of verifying the validity of each digital signature and certificate.

11. The method of claim 7, wherein each of said one or more transfer electronic notes includes an expiration date;

and where said transferee money module is a transaction money module, step (d) further comprises the step of said transferee money module verifying each electronic note'"'"'s expiration date.

12. The method of claim 7, wherein said electronic note is an electronic representation of currency having an expiration date and a monetary value;

wherein step (a) includes the step of;

(a) said transferor money module determining all possible alternatives for providing the predetermined total monetary value and using a minimum number of electronic notes;

(b) determining which set of said all possible alternatives includes a least number of transfers; and

(c) where said set includes more than one element, selecting an element of said set which includes a minimum number of monetary-unit-days summed over all notes of the element, wherein monetary-unit-days represents a product of number of days until the electronic note'"'"'s expiration date and the electronic note'"'"'s residual monetary value.

13. The method according to claim 7, wherein step (d) includes said transferee money module verifying that said predetermined monetary value transferred corresponds to an expected value.

14. A method for transferring electronic notes of a predetermined total monetary value from a transferor money module to a transferee money module, said method comprising the steps of:

(a) said transferor money module selecting one or more electronic notes from which to provide said predetermined total monetary value;

(b) said transferor money module creating one or more transfer electronic notes by appending a respective transfer record and digital signature of said transferor money module to each said one or more electronic notes, where for each said one or more transfer electronic notes said respective transfer record indicates whether all or some portion of a monetary amount of said one or more electronic notes is being transferred;

(c) said transferor money module sending said one or more transfer electronic notes to said transferee money module;

(d) said transferee money module verifying the validity of said one or more transfer electronic notes;

(e) said transferee money module storing said one or more transfer electronic notes in a note directory;

wherein each transfer electronic note of said one or more transfer electronic notes includes digital signatures and certificates of each transferor money module over the history of said transfer electronic note, each of said certificates includes a unique identifier identifying the associated transferor money module, and wherein said transfer record includes said unique identifier of the transferee electronic module; and

wherein step (d) further comprises the step of checking that said unique identifier of said transfer record corresponds to said unique identifier in said certificate for each successive transfer over said history of said electronic note.

15. A method for transferring electronic notes from a transferor money module to a transferee money module, said method comprising the steps of:

(a) said transferor money module creating one by or more transfer electronic notes by appending a respective transfer record of said transferor money module to each said one or more electronic notes;

(b) said transferor money module sending said one or more transfer electronic notes to said transferee money module;

(c) said transferee money module verifying the validity of said one or more transfer electronic notes;

wherein each transfer electronic note of said one or more transfer electronic notes includes a unique identifier for each transferee money module over the history of said transfer electronic note; and

wherein, where said transferee money module is a transaction money module, step (c) further comprises the step of checking whether each said unique identifier is on a list of unique identifiers for bad money modules that is stored in said transferee money module.

16. The method according to claim 15, wherein said transferee money module is a transaction money module.

17. The method according to claim 15, wherein said step of said transferor money module creating one or more transfer electronic notes includes appending a respective digital signature of said transferor money module to each said one or more electronic notes.

18. The method according to claim 15, wherein for each said one or more transfer electronic notes said respective transfer record indicates whether all or some portion of a monetary amount of said one or more electronic notes is being transferred.