System and method for updating security information in a time-based electronic monetary system

• US 5,898,154 A
• Filed: 01/11/1995
• Issued: 04/27/1999
• Est. Priority Date: 11/15/1991
• 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): Hajec, Donald
• Assistant Examiner(s): TREMBLAY, MARK STEPHEN
• Application Number:
  US08/371,201
• Time in Patent Office: 1,567 Days
• Field of Search: 380/24, 235/379
• 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 20/04 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• 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 20/367 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 20/381 Currency conversion
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 19/211 Software architecture within ATMs or in relation to the ATM network
• CPC Class Codes: G07F 7/082 Features insuring the integrity of the data on or in the card
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

An improved monetary system using electronic media to exchange economic value securely and reliably. The invention provides a complete monetary system having electronic money that is interchangeable with conventional paper money comprising (1) issuing 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, or 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; (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 security arrangement for maintaining the integrity of the system; and (6) reconciliation and clearing processes to monitor and balance the monetary system.

Claims

1. A system for updating security information stored in a transaction module by interacting with a network having a security server, comprising:

a transaction module having a memory that stores a plurality of electronic notes that each include a note time limit set at the time of note creation and a monetary value, a clock that maintains a system time used to verify time limits on electronic notes, and a processor;

wherein when said transaction module interacts with said network, said security server updates security information stored in said transaction module; and

wherein an expired note time limit on one of said plurality of electronic notes inhibits said transaction module'"'"'s ability to transfer said monetary value of said one electronic note to other transaction modules.

2. The system of claim 1, wherein said electronic notes are updated when transacting with said network having a teller module and a money generator module.

3. The system of claim 2, wherein said updated electronic notes have a new time limit.

4. The system of claim 3, wherein said security information includes an updated list of bad money module identifiers.

5. The system of claim 3, wherein said security information includes a list of new certificatory keys.

6. The system of claim 1, wherein said transaction module stores a certificate having an identifier and a second time limit;

wherein an expired second time limit inhibits said transaction module'"'"'s ability to interact with other transaction modules.

7. The system of claim 6, wherein said security server updates said second time limit when said transaction module interacts with said network.

8. The system of claim 1, wherein said expired note time limit does not inhibit said transaction module'"'"'s ability to transfer said monetary value of said one electronic note to a teller module associated with a bank.

9. The system of claim 1, wherein said electronic notes are created by a bank'"'"'s module.

10. An electronic transaction module system comprising:

a transaction module having a memory that stores a plurality of electronic notes, generated by a financial institution'"'"'s module, each electronic note including time data from which an expiration time of said electronic note is determined and value data indicative of a monetary value;

wherein after said expiration time of one of said plurality of electronic notes, said transaction module is inhibited from transferring said monetary value of said one electronic note to other transaction modules.

11. The system of claim 10, wherein said expiration time of said one electronic note does not inhibit said transaction module'"'"'s ability to transfer said monetary value of said one electronic note to a financial institution'"'"'s module.

12. The system of claim 10, wherein said financial institution'"'"'s module varies said expiration time as a security parameter.

13. The system of claim 12, wherein said expiration time is varied by said monetary value of said electronic note.

14. The system of claim 10, wherein said plurality of electronic notes are electronic currency notes.