System and method for conducting coinless transactions

• US 5,869,826 A
• Filed: 06/30/1997
• Issued: 02/09/1999
• Est. Priority Date: 06/30/1997
• Status: Expired due to Fees

• Current Assignee: Lefteris Eleftheriou
• Original Assignee: Lefteris Eleftheriou
• Inventors: Eleftheriou, Lefteris
• Primary Examiner(s): PITTS, HAROLD I
• Application Number:
  US08/884,984
• Time in Patent Office: 589 Days
• Field of Search: 235/379, 235/380, 235/381
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities

Abstract

In a commercial transaction system, a magnetic stripe data card is used to interact with a point of sale (POS) terminal, equipped with a card reader/writer device, a computer system, and a display device, and an input means for entering cost information, to conduct coinless transactions with cash or paper bill currency. The POS terminal is capable of processing data which includes comparing the fractional transaction cost of the goods and/or services to be purchased with an existing balance of change stored on the magnetic stripe data card, and updating the balance of change at the end of the transaction. In a preferred embodiment of the present invention, when the balance of change associated with the card does not cover the fractional dollar cost of the transaction, the system provides a change renewal algorithm which automatically increases the balance on the card by an amount equal to the difference between the cost of the transaction and the next highest whole dollar amount. This difference is also added to the transaction cost raising it to the next highest whole dollar amount. Likewise, when the balance of change stored on the card does cover the fractional dollar cost of the transaction, the system provides a change depletion algorithm which automatically decreases the balance on the card by an amount equal to the fractional dollar cost of the transaction. This amount is also deducted from the transaction cost lowering it to the next lowest whole dollar amount. In either case, whether the balance of change stored on the card is greater than, or less than or equal to, the fractional dollar cost of the transaction, the fractional dollar cost of the transaction, or the difference between 1.0 and the fractional dollar cost of the transaction, is automatically debited from or credited to both the balance on the card and the total cost of the transaction, respectively, thereby resulting in a whole dollar cost for the transaction. The lack of any fractional cost for the transaction eliminates the requirement to exchange coins of any denomination while conducting commercial transactions with cash or paper bill currency.

Claims

1. A method for conducting a coinless transaction using a specified currency, comprising the steps of:

(a) calculating a total cost for goods and services of a commercial transaction;

(b) determining a fractional cost of said total cost;

(c) reading a change balance on a storage device;

(d) comparing said fractional cost with said change balance;

(e) determining whether said fractional cost is greater than said change balance;

(f) increasing said total cost by a renewal amount to a next whole number, thereby calculating a new total cost, if it is determined in step (e) that said fractional cost is greater than said change balance;

(g) increasing said change balance by said renewal amount, thereby calculating a new change balance, if it is determined in step (e) that said fractional cost is greater than said change balance;

(h) decreasing said total cost by a depletion amount to a whole number, thereby calculating a new total cost, if it is determined in step (e) that said fractional cost is less than or equal to said change balance;

(i) decreasing said change balance by said depletion amount, thereby calculating a new change balance, if it is determined in step (e) that said fractional cost is less than or equal to said change balance;

(j) displaying said new total cost; and

(k) writing said new change balance onto said storage device.

2. The method of claim 1, further comprising the step of:

(l) displaying said new change balance.

3. The method of claim 1, wherein said storage device is a magnetic stripe data card.

4. The method of claim 3, further comprising the following steps:

(k) inputting said magnetic stripe data card; and

(l) outputting said magnetic stripe data card.

5. The method of claim 1, wherein said renewal amount is equal to 1.0 minus said fractional cost and said depletion amount is equal to said fractional cost.

6. The method of claim 1, wherein said fractional cost is in a range of zero to a coin value of said specified currency minus a smallest denomination of said specified currency.

7. The method of claim 6, wherein said specified currency is United States currency, said coin value is a dollar, half-dollar, quarter, dime, or nickel, and said smallest denomination is a penny.

8. A point of sale terminal for conducting a coinless transaction using a specified currency, comprising:

a means for receiving a total cost for goods and services of a commercial transaction;

a means for receiving a change balance stored on a storage device;

a means for calculating a new total cost and a new change balance, wherein said new total cost is a whole number; and

a means for outputting said new total cost and said new change balance.

9. The point of sale terminal of claim 8, further comprising:

a reader for receiving said storage device having said change balance stored on said storage device and for reading said change balance; and

a writer for receiving said new change balance and writing said new change balance onto said storage device.

10. The point of sale terminal of claim 8, further comprising:

a display for displaying said new total cost and said new change balance.

11. The point of sale terminal of claim 8, wherein said storage device is a magnetic stripe data card.

12. The point of sale terminal of claim 8, wherein for said means for calculating a new total cost and a new change balance, said computer system determines a fractional cost of said total cost, compares said fractional cost with said change balance, determines whether said fractional cost is greater than said change balance, increases said total cost by a renewal amount thereby calculating a new total cost if said fractional cost is greater than said change balance, increasing said change balance by said renewal amount thereby calculating said new change balance if said fractional cost is greater than said change balance, decreasing said total cost by a depletion amount thereby calculating said new total cost if said fractional cost is less than or equal to said change balance, and decreasing said change balance by said depletion amount thereby calculating said new change balance if said fractional cost is less than or equal to said change balance.

13. The point of sale terminal of claim 12, wherein said renewal amount is equal to 1.0 minus said fractional cost and said depletion amount is equal to said fractional cost.

14. The point of sale terminal of claim 12, wherein said fractional cost is in a range of zero to a coin value of said specified currency minus a smallest denomination of said specified currency.

15. The point of sale terminal of claim 14, wherein said specified currency is United States currency, said coin value is a dollar, half-dollar, quarter, dime, or nickel, and said smallest denomination is a penny.

16. The point of sale terminal of claim 8, wherein said means for receiving a total cost is a keyboard.

17. The point of sale terminal of claim 8, wherein said means for receiving a total cost is a bar code scanner.

18. The point of sale terminal of claim 8, further comprising an openable drawer.

19. A computer program product for use with a computer system, comprising:

a computer usable medium having computer readable program code means embodied in said medium for conducting a coinless transaction using a specified currency, wherein a point of sale terminal receives a total cost for goods and services of a commercial transaction and reads a change balance on a storage device, said computer program product having;

first computer readable program code means for receiving the total cost of the commercial transaction;

second computer readable program code means for receiving the change balance stored on the storage device;

third computer readable program code means for determining a fractional cost of the total cost;

fourth computer readable program code means for comparing said fractional cost with the change balance;

fifth computer readable program code means for determining whether said fractional cost is greater than the change balance; and

sixth computer readable program code means for calculating a new total cost and a new change balance, wherein said new total cost is a whole number, wherein the point of sale terminal writes said new change balance on the storage device.

20. The computer program product of claim 19, wherein said sixth computer readable program code means increases the total cost by a renewal amount thereby calculating a new total cost if said fractional cost is greater than the change balance, increases said change balance by said renewal amount thereby calculating said new change balance if said fractional cost is greater than said change balance, decreases said total cost by a depletion amount thereby calculating said new total cost if said fractional cost is less than or equal to said change balance, and decreases said change balance by said depletion amount thereby calculating said new change balance if said fractional cost is less than or equal to said change balance.

21. The computer program product of claim 20, wherein said renewal amount equals 1.0 minus said fractional cost and said depletion amount equals said fractional cost.

22. The computer program product of claim 20, wherein said fractional cost is in a range of zero to a coin value of said specified currency minus a smallest denomination of said specified currency.

23. The computer program product of claim 22, wherein said specified currency is United States currency, said coin value is a dollar, half-dollar, quarter, dime, or nickel, and said smallest denomination is a penny.