Method and system for transferring funds from an account to an individual

• US 5,963,647 A
• Filed: 06/17/1997
• Issued: 10/05/1999
• Est. Priority Date: 02/14/1997
• Status: Expired due to Term

• Current Assignee: Citicorp Credit Services Incorporated (Citigroup Incorporated)
• Original Assignee: Citicorp Development Center Incorporated (Citigroup Incorporated)
• Inventors: Meiroff, Netty, Downing, John, Reef, Rodman, Rao, Jaithirth, Hernandez, William M., Hooper, William D., Schechtman, Howard A., Horowitz, Edward
• Primary Examiner(s): Gregory, Bernarr E.
• Application Number:
  US08/877,203
• Time in Patent Office: 840 Days
• Field of Search: 380/9, 380/23, 380/24, 380/25, 380/49, 380/50, 380/59, 705/1, 705/35, 705/39, 705/40, 705/41, 705/42, 705/43, 705/44, 235/379, 235/380
• US Class Current: 705/39
• 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 20/108 Remote banking, e.g. home banking
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• 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: G07F 19/20 Automatic teller machines [ATMs]

Abstract

Disclosed is a system and method for transferring funds. The invention supports funds transfers from a source account to a cash access file which can be accessed virtually twenty-four hours a day by both customers and non-customers. Access is achieved by the recipient entering a codeword selected by the sender, along with a transaction code randomly generated by the system. Once the sender provides the codeword and the transaction code to the recipient, the recipient can receive transferred cash through an ATM, even without using a card to access the system. Cash may be transferred across international borders and dispensed in a currency different than that of the sender'"'"'s source account. Although cash is made available to a recipient virtually as soon as the requested transfer is approved and confirmed by the sender, the sender'"'"'s account is not debited until the cash is actually received by the recipient. Other features, including security, cancellation, and status inquiries are also described.

Claims

1. A method of transferring funds from a source account using a network, the network including a plurality of user terminals, comprising:

receiving at one of the plurality of user terminals a selection for a transfer of funds to a recipient, the selection including transfer data, wherein the transfer of funds is conditioned upon receiving a request for funds and matching recipient data from one of the plurality of user terminals, the transfer data including at least a security code, an amount to be transferred, and an identification of the source account from which the transferred funds are to be debited, and the recipient data including at least a matching security code and identification information;

storing the transfer data as an entry in a transfer instruction file, the transfer instruction file being accessible by a processor;

receiving from one of the plurality of user terminals the request for transfer of funds, the request including received recipient data;

transmitting the request to the processor;

the processor checking the request, the checking including checking the transfer data and the received recipient data;

upon confirmation, transmitting an instruction to the network to transfer funds;

transferring for receipt by the recipient funds in an amount not greater than the amount to be transferred; and

debiting the source account in an amount at least as great as the amount transferred.

2. The method according to claim 1, wherein the transfer data includes an identification of a destination country.

3. The method according to claim 2, wherein currency of the destination country differs from currency of the source account.

4. The method according to claim 3, further comprising calculating the amount to be debited from the source account in the currency of the source account on the basis of an exchange rate between the currency of the source account and the currency of the destination country.

5. The method according to claim 1, wherein transferring for receipt by the recipient includes transferring of funds for receipt by an ATM configured to dispense funds transferred by the sender without requiring the use of a card to access the system.

6. The method according to claim 1, further comprising providing the sender with a receipt indicating the amount of a requested transfer and an authorization code.

7. The method according to claim 1, further comprising:

generating an authorization code at the time the sender requests the transfer of funds; and

storing the authorization code with the transfer data in the transfer instruction file, wherein the authorization code and the security code must be received in order to access the transferred funds.

8. The method according to claim 1, wherein the security code is encrypted at a user terminal before being transmitted to other elements of the network.

9. The method according to claim 1, further including evaluating whether a requested transaction complies with predetermined limitations on funds transfers.

10. The method according to claim 9, wherein the predetermined limitations include amount limitations.

11. The method according to claim 10, wherein evaluating includes comparing the received transfer data with data stored in a special designation nationals file.

12. The method according to claim 1, wherein the transfer data includes data corresponding to an expiration date for a requested transfer, whereby a recipient can receive transferred funds only prior to the expiration date.

13. The method according to claim 1, further comprising determining whether funds have been received by checking the status of the requested transfer as maintained in the transfer instruction file.

14. The method of claim 1, wherein the processor comprises a network switch.

15. The method of claim 1, wherein the one of the plurality of user terminals from which matching recipient data is received is distinct from the one from the plurality of user terminals from which the request to transfer funds is received.

16. A funds transfer system including a source account and a network, the network including a plurality of user terminals, comprising:

means for receiving at one from the plurality of user terminals a selection for transfer of funds to a recipient, the means for receiving including means for submitting transfer data, wherein the transfer of funds is conditioned upon receiving a request for funds and matching recipient data from one of the plurality of user terminals, the transfer data including at least a security code, an amount to be transferred, and an identification of the source account from which the transferred funds are to be debited, and the recipient data including at least a matching security code and identification information;

means for storing the transfer data as an entry in a transfer instruction file, the transfer instruction file being accessible by a processor;

means for receiving from one of the plurality of user terminals the request for transfer of funds, the request including received recipient data;

means for transmitting the request to the processor;

means for the processor checking the request, the means for checking including means for checking the transfer data and the received recipient data;

means for, upon confirmation, transmitting an instruction to the network to transfer funds;

means for transferring for receipt by the recipient funds in an amount not greater than the amount to be transferred; and

means for debiting the source account in an amount at least as great as the amount transferred.

17. The system according to claim 16, wherein the transfer data includes an identification of a destination country.

18. The system according to claim 17, wherein currency of the destination country differs from currency of the source account.

19. The system according to claim 16, further including means for calculating the amount to be debited from the source account in the currency of the source account on the basis of an exchange rate between the currency of the source account and the currency of the destination country.

20. The system according to claim 16, wherein the means for transferring includes means for transferring to an ATM configured to dispense funds transferred without requiring use of a card to access the system.

21. The system according to claim 16, further comprising means for providing a receipt indicating the amount of a requested transfer and an authorization code.

22. The system according to claim 16, further comprising:

means for generating an authorization code at the time of the request for the transfer of funds; and

means for storing the authorization code with the transfer data in the transfer instruction file, wherein the authorization code and the security code must be received in order for access the transferred funds to be provided.

23. The system according to claim 16, wherein the security code is encrypted at a user terminal before being transmitted to other elements of the network.

24. The system according to claim 16, further including means for evaluating whether a requested transaction complies with predetermined limitations on funds transfers.

25. The system according to claim 24, wherein the predetermined limitations include amount limitations.

26. The system according to claim 24, wherein the means for evaluating includes means for comparing the transfer data entered by the sender with data stored in a special designation nationals file.

27. The system according to claim 26, wherein the transfer data includes data corresponding to an expiration date for a requested transfer, wherein funds are transferrable only prior to the expiration date.

28. The system according to claim 16, further comprising means for checking the status of the requested transfer as maintained in the transfer instruction file to determine whether funds have been transferred.

29. The system of claim 16, wherein the processor comprises a network switch.

30. The system of claim 16, wherein the one of the plurality of user terminals from which matching recipient data is received is distinct from the one from the plurality of user terminals from which the request to transfer funds is received.

31. A system for transferring funds comprising:

a source account;

a transfer instruction file stored within the system, the transfer instruction file containing entries each corresponding to a requested transfer of funds; and

a network for transferring funds to a recipient, the network including;

a plurality of user terminals;

wherein transfer data for authorizing the transfer of funds to a recipient is receivable via at least one of the plurality of user terminals, the transfer data including identification information for the recipient, a security code, an amount to be transferred, and an identification of a source account from which the transferred funds are to be debited; and

wherein recipient data for a recipient request for transfer of funds is receivable via at least one of the plurality of user terminals upon receipt of recipient data; and

wherein at least one of the plurality of user terminals provides access to the requested funds; and

a processor for processing electronic data received from the plurality of terminals and for providing access to at least one financial account and for accessing the transfer instruction file, wherein the processor confirms the request to transfer funds and transmits an instruction to the network to transfer funds after checking the recipient data, the checking including checking the transfer data and the recipient data; and

a plurality of couplings for coupling the network to the source account, and for transmitting the transfer data, the recipient data, and the instruction to the network to transfer funds, and an instruction to debit the source account;

wherein the transferred funds are provided to the recipient at one of the plurality of user terminals upon the transfer data and recipient data being received and checked.

32. The system according to claim 31, wherein the source account is debited upon the recipient receiving the transferred funds.

33. The system according to claim 31, wherein the plurality of user terminals includes a printer for printing a receipt for a sender once the sender requests a transfer of funds, the receipt indicating the amount of the transfer and an authorization code.

34. The system according to claim 31, wherein once a sender requests a transfer of funds, the sender is provided with an authorization code which is stored in the transfer instruction file, and wherein the recipient must enter the authorization code and the security code in order to access the funds.

35. The system according to claim 31, wherein the security code is encrypted at a user terminal before being transmitted to other elements of the system.

36. The system according to claim 31, further including means to evaluate whether a requested transaction complies with predetermined limitations on fund transfers.

37. The system according to claim 36, wherein the predetermined limitations include amount limitations.

38. The system according to claim 36, wherein the means to evaluate include a special designation nationals file containing information which is compared to the transfer data entered by the sender.

39. The system according to claim 31, wherein the transfer data includes data corresponding to an expiration date for a requested transfer, whereby a recipient can receive transferred funds only prior to the expiration date.

40. The system according to claim 31, wherein the transfer instruction file is accessed by the sender to determine whether funds have been received by the recipient.

41. The system of claim 31, wherein the processor comprises a network switch.

42. The system of claim 31, wherein the one of the plurality of user terminals from which matching recipient data is received is distinct from the one from the plurality of user terminals from which the request to transfer funds is received.

43. The system of claim 31 further comprising:

a second network for a recipient to receive transferred funds, the second network including a second plurality of user terminals and a second front end processing system for processing electronic data received from the second plurality of terminals; and

a host communications network for exchanging electronic data between the first network and the second network.

44. The system according to claim 43, wherein the transfer data includes an identification of a foreign country.

45. The system according to claim 44, wherein currency of the destination country differs from currency of the source account.

46. The system according to claim 43, wherein the host communications network includes a system which provides data corresponding to a current currency conversion rate for calculating exchange rates between currency of a destination country and currency of the source account.

47. The system according to claim 43, wherein the second plurality of user terminals include an ATM configured to permit a user to withdraw funds transferred without requiring the use of a card to access the system.