Customer-directed, automated process for transferring funds between accounts using a holding account and local processing

• US 5,825,003 A
• Filed: 02/04/1997
• Issued: 10/20/1998
• Est. Priority Date: 07/24/1995
• Status: Expired due to Term

• Current Assignee: Citicorp Credit Services Incorporated (Citigroup Incorporated)
• Original Assignee: Citicorp Del-Lease Incorporated (Citigroup Incorporated)
• Inventors: Downing, John, Maino, Marion, Pinnell, Nigel, Goodhand, Neil, Do, Khanh, Thompson, Michael H., Profumo, Marjorie, Jennings, Horton, Shah, Virendrakumar
• Primary Examiner(s): Hajec, Donald T.
• Assistant Examiner(s): LEE, MICHAEL GUNYOUNG
• Application Number:
  US08/795,355
• Time in Patent Office: 623 Days
• Field of Search: 235/379, 235/375, 235/382, 235/380, 235/381, 902/4, 902/5, 902/14, 902/20, 902/24, 902/32, 395/200.01, 395/200.02, 395/200.03, 395/200.1, 705/42, 705/44
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/02 involving a neutral party, e.g. certification authority, notary or trusted third party [TTP]
• CPC Class Codes: G06Q 20/023 the neutral party being a clearing house
• 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 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/381 Currency conversion
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

A system and method for allowing funds to be transferred instantly to an account so that the funds are available to the beneficiary at the time they are sent, based on customer information which can be automatically accessed by the system, rather than needing to be manually entered. Further, the system automatically computes the appropriate exchange rate and any fees to be charged to the account and displays them to the user so that the user may authorize or cancel the transaction. They system also analyzes the parameters of the transfer to assure that the transfer conforms with pertinent government regulations. The system also enables the user to quantify the amount to be transferred in the currency of the originating account or the currency of the receiving account, thereby maximizing the flexibility of the system. The system further is designed so that it can be understood and accessed by individuals having no special expertise in computers, wire transfers and the like. Further, the system is provided with various safeguards to assure that only authorized individuals have access to the accounts and the funds and immediately verifies successful completion or failure to the customer.

Claims

1. A process for transferring funds from a source account at a first financial institution to a destination account at a second financial institution through a communications network, comprising the steps of:

receiving first data input with an input terminal and matching said first data with a record of a source account, the record being stored in a first host system and including an indication of a type of currency maintained in the source account;

receiving second data provided with the input terminal, the second data indicating a recipient account and verifying the validity of the recipient account;

receiving third data provided with the input terminal, the third data corresponding to a requested amount to be transferred from the source account to the destination account, the requested amount being input in a selected format corresponding to the type of currency maintained in one of the source account and the destination account; and

subsequent to receiving authorization to implement the requested transfer, depositing the funds to be transferred into a transfer holding account which is then processed through a clearing system local to said second financial institution and then depositing said funds from said holding account to said destination account in said second financial institution.

2. The process according to claim 1, further comprising the step of determining any fee amounts required to process the requested transfer, the fee amounts including a first fee charged by a first financial institution maintaining the source account and a second fee charged by a second financial institution maintaining the destination account.

3. The process according to claim 1, wherein the input terminal includes a card reader for reading encoded data corresponding at least in part to the first data.

4. The process according to claim 3, further comprising a step of receiving an identification code entered through the input terminal and validating the identification code based on the record of the source account.

5. The process according to claim 1, wherein said input terminal is an automated teller machine.

6. The process according to claim 1, wherein currency of the source account differs from the currency of the destination account, the process including the step of determining an equivalent value of the requested amount based on a substantially current exchange rate between the currency of the source account and the currency of the destination account.

7. The process according to claim 1, further comprising the step of displaying a description of the currency of the source account and the currency of the destination account.

8. The process according to claim 7, wherein the input terminal is an ATM that includes a card reader for reading encoded data corresponding at least in part to the first data, the encoded data including a number indicative of the financial institution issuing a card that is read by the card reader, wherein the currency of the source account is obtained by referencing said encoded data with a recorded table of financial institutions.

9. The process according to claim 1, wherein the input terminal comprises a personal computer.

10. The process according to claim 1, wherein the input terminal comprises a home banking telephone.

11. In a system for performing money transfers from a source account at a first financial institution to a destination account at a second financial institution comprising an input terminal having input means and display means, a first host system which is in communication with said input terminal and which services a source account affiliated with said first financial institution, and a second host system coupled to said first host system with a communications network said second host system servicing a destination account affiliated with said second financial institution, wherein:

first data is provided with said input means and is matched with a record of the source account stored in the first host system, the record including an indication of a type of currency maintained in the source account;

second data is provided with the input means which is indicative of the recipient account and verification of the validity of the recipient account;

third data is provided with the input means which corresponds to a requested amount to be transferred from the source account to the destination account, the requested amount being input in a selected format corresponding to the type of currency maintained in one of the source account and the destination account; and

an electronic message is transmitted to the second host system authorizing a credit to the destination account in the requested amount and the first host account debits the source account by the total debit amount;

said funds are first transferred to a transfer holding account and then processed through a clearing system local to said second financial institution; and

said funds are then transferred from said holding account to said destination account affiliated with said second financial institution.

12. The system according to claim 11, wherein any fee amounts required to process the requested transfer are calculated, the fee amounts including a first fee charged by said first financial institution maintaining the source account and a second fee charged by said second financial institution maintaining the destination account, wherein the total debit amount includes the requested amount and any amounts based on the first fee and the second fee.

13. The system according to claim 11, wherein the input terminal includes a card reader for reading encoded data corresponding at least in part to the first data.

14. The system according to claim 13, wherein an identification code entered with the input means is received and validated based on the record of the source account.

15. The system according to claim 11, wherein said input terminal is an automated teller machine.

16. The system according to claim 11, wherein the currency of the source account differs from the currency of the destination account, and wherein an equivalent value of the requested amount is determined based on a substantially current exchange rate between the currency of the source account and the currency of the destination account.

17. The system according to claim 11, wherein a description of the currency of the source account and the currency of the destination account are displayed with the display means.

18. The system according to claim 17, wherein the input terminal is an ATM that includes a card reader for reading encoded data corresponding at least in part to the first data, the encoded data including a number indicative of the financial institution issuing a card that is read by the card reader, wherein the currency of the source account is obtained by referencing said encoded data with a recorded table of financial institutions.

19. The process according to claim 11, wherein the input terminal comprises a personal computer.

20. The process according to claim 11, wherein the input terminal comprises a home banking telephone.