Self-contained payment system with circulating digital vouchers

• US 5,903,880 A
• Filed: 07/19/1996
• Issued: 05/11/1999
• Est. Priority Date: 07/19/1996
• Status: Expired due to Term

• Current Assignee: Peter Biffar
• Original Assignee: Peter Biffar
• Inventors: Biffar, Peter C.
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): Patel, Jagdish
• Application Number:
  US08/684,218
• Time in Patent Office: 1,026 Days
• Field of Search: 705/39, 705/26, 380/24, 235/380, 235/379
• US Class Current: 705/39
• 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 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3678 e-cash details, e.g. blinded, divisible or detecting double spending
• CPC Class Codes: G06Q 20/389 Keeping log of transactions for guaranteeing non-repudiation of a transaction
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]

Abstract

A self-contained payment system uses circulating digital vouchers for the transfer of value. The system creates and transfers digital vouchers. A digital voucher has an identifying element and a dynamic log. The identifying element includes information such as the transferable value, a serial number and a digital signature. The dynamic log records the movement of the voucher through the system and accordingly grows over time. This allows the system operator to not only reconcile the vouchers before redeeming them but also to recreate the history of movement of a voucher should an irregularity like a duplicate voucher be detected. These vouchers are used within a self-contained system including a large number of remote devices which are linked to a central system. The central system can be linked to an external system. The external system, as well as the remote devices, are connected to the central system by any one or a combination of networks. The networks must be able to transport digital information, for example the internet, cellular networks, telecommunication networks, cable networks or proprietary networks. Vouchers can also be transferred from one remote device to another remote device. These remote devices can communicate through a number of methods with each other. For example, for a non-face-to-face transaction the internet is a choice, for a face-to-face or close proximity transactions tone signals or light signals are likely methods. In addition at the time of a transaction a digital receipt can be created which will facilitate a fast replacement of vouchers stored in a lost remote device.

Claims

1. A system for making payments using vouchers having an identifying element and a dynamic log to which additional data representing the transfer of the voucher is added whenever there is a transaction involving the voucher, wherein a transaction includes a creation of, any use of or movement of the voucher comprising:

a remote device comprising the following components;

an input signal receiver for receiving said vouchers sent to the said remote device;

a memory for storing said vouchers and storing an identification number of said remote device and storing an account number;

an output signal generator for sending said vouchers;

a processor storing said received vouchers in said memory, wherein said processor generates and attaches a remote device set of log digits to said voucher, and wherein said processor retrieves vouchers from said memory and sends them to said output signal generator linked to said processor;

user controls for inputting operating instructions to said remote device;

a central system comprising the following components;

a central memory where memory locations represent accounts having account numbers, vouchers are stored in said accounts, the memory is connected to a central processor;

central operator controls for inputting operating instructions, the controls are connected to the central processor;

a central processor which;

provides user with an account number in the central system and which allocates space in said central memory for said account numbers;

creates said identifying element of said voucher;

attaches a central system identifying set of log digits when performing a transactions;

transmits said voucher to a first remote device being configured according to said remote device;

receives said voucher from a second remote device being configured according to said remote device where said first remote device and said second remote device can be the same remote device;

evaluates said identifying digits and log digits of said received voucher; and

redeems said voucher only after verifying that said voucher has not been received earlier in said central system;

a central input signal receiver which receives said vouchers from said remote device and which is linked to said central processor; and

a central output signal generator which is linked to said central processor and sends said vouchers to said remote device.

2. The system of claim 1,

wherein the components of said remote device are configured to be supported by a single structure.

3. The system of claim 2,

wherein said single structure is portable.

4. The system of claim 1,

wherein the components of said remote device are configured to be supported by two or more separate structures.

5. The system of claim 4,

wherein at least one of said two or more separate structures is portable.

6. The system of claim 1,

wherein the components of said central system are configured to be supported by a single structure.

7. The system of claim 1,

wherein the components of said central system are configured to be supported by two or more separate structures.

8. The system of claim 1,

wherein a memory of a central location includes said central memory of said central system and at least a portion of the memory of said remote device.

9. The system of claim 1,

wherein a processor at a central location acts as said central processor of said central system and performs at least a portion of the tasks of said processor of said remote device.

10. The system of claim 1,

wherein said remote device has a display linked to the processor.

11. The system of claim 1,

wherein said central system is linked to an external system allowing the central processor to send and receive instructions and data to and from said external system.

12. A method for making payments using vouchers within a self-contained system comprising the steps of:

setting up an account by

providing a user with an account number in a central system and allocating memory space to said account;

prompting a central processor to create a voucher having an identifying element and a dynamic log, wherein said central processor adds a series of log digits to said dynamic log representing said account number and a first transaction code recording the history of the transaction creating the voucher;

transferring said voucher from a central system to an "n-transaction" remote device, wherein a series of log digits are added to said dynamic log representing an "n-transaction" transaction code recording the history of the transaction of said voucher being transferred from said central system to said "n-transaction" remote device;

transferring said voucher from said "n-transaction" remote device to an "n+1-transaction" remote device representing the first of a series of remote devices in a transaction series n, n+1, n+2, . . . n+y, ending with an "n+y-transaction" remote device, a series of log digits are added to said dynamic log representing an "n+1-transaction" transaction code and successively adding additional codes ending with an "n+y-transaction" transaction code recording the history of the transactions transferring said voucher from said "n-transaction" remote device to said "n+y-transaction" remote device; and

transferring said voucher from said "n+y-transaction" remote device to said central system, wherein a series of log digits are added to said dynamic log representing a transaction code recording the history of the transaction transferring the voucher from said "n+y-transaction" remote device to said central system.

13. The method for making payments using vouchers within a self-contained system as in claim 12 further comprising the step of:

initializing said remote device by transmitting to said remote device an identification number which is numerically linked to said account number in said central system.

14. The method for making payments using vouchers within a self-contained system as in claim 12 further comprising the step of:

evaluating that said voucher has not been received earlier by analyzing said identifying element and said dynamic log of said voucher.

15. The method of claim 14,

wherein during the step of prompting, a first number representing a value to be assigned to the voucher is transferred into an account in said central system from an account in an external system,

wherein during the step of redeeming, a second number representing a value redeemed from said account in said central system is transferred from said central system to said account of said external system.

16. The method of claim 15,

wherein simultaneously with transfer of the number representing a first value to be assigned to the voucher to an account in the central system, said account in said external system is decreased by said first value to be assigned and said value to be assigned is transferred to an escrow account in said external system, and further,

wherein simultaneously with the transfer of the number representing a second value redeemed in the central system to said account in said external system, said escrow account in said external system is decreased by said second value of the voucher and said second value of the voucher is added to said account in said external system.

17. The method of claim 15,

wherein the account number from a user in an external system is used in the central system.

18. The method of claim 17,

wherein a link between the account number in the central system and the external system is disguised by transforming said account number using an algorithm to generate said account number in the central system from said account number in the external system.

19. The method of claim 15,

wherein said number representing said value in said external system is transferred between said central system and said external system in either direction through an external value exchange rate translation.

20. The method for making payments using vouchers within a self-contained system as in claim 12 further comprising the step of:

redeeming said voucher in said central system only after the step of evaluating concludes that said voucher has not been received earlier.

21. The method of claim 12,

wherein the voucher is encrypted before being transferred and decrypted after being transferred.

22. The method of claim 12,

wherein whenever a remote device is connected to the central system and whenever the remote device is connected to another remote device the identification numbers of said remote devices are transmitted and checked against previously received and stored information and commands to possibly restrict further transactions.

23. The method of claim 12,

wherein the transactions requested and ongoing are displayed on a display on the remote device.

24. The method of claim 12, further comprising the step of:

creating a receipt when said voucher is received by a second remote device from a first remote device;

wherein said second remote device;

creates a receipt comprising at least a portion of said identifying element of said voucher, said identification number of said receiving second remote device and a time of creation of said receipt;

sends said receipt back to said first remote device from which said voucher was received;

wherein said first remote device receiving said receipt stores said receipt in separate memory location;

wherein said first remote device sends said receipt to said central system at the next time when connection between said first remote device and said central system is established;

wherein said central system stores said receipt in a separate memory location called receipts-from-remote-devices; and

wherein said central system erases said receipt once said voucher with said identifying element is received.

25. The method of claim 24,

wherein said receipt further comprises said identification number of said first remote device.

26. The method of claim 12, further comprising the step of:

creating a receipt when said voucher is received by said remote device, from said central system;

wherein said remote device;

creates a receipt comprising at least a portion of said identifying element of said voucher, said identification number of said receiving remote device and a time of creation of said receipt; and

sends said receipt to said central system from which said voucher was received;

wherein said central system receiving said receipt stores said receipt in a separate memory location called receipts-from-remote-devices; and

wherein said central system erases said receipt once said voucher with said identifying element is received.

27. The method of claim 12, further comprising the step of:

creating a receipt when said voucher is received by said central system from said remote device;

wherein said central system;

creates a receipt comprising said identifying element of said voucher and a time of creation of said receipt;

sends said receipt to said remote device from which said voucher was received; and

wherein said remote device receiving said receipt stores said receipt in separate memory location.

28. The method of claim 12,

wherein the transactions requested and ongoing are displayed on a display on the remote device.