Electronic-monetary system

• US 5,963,648 A
• Filed: 12/19/1997
• Issued: 10/05/1999
• Est. Priority Date: 04/28/1994
• Status: Expired due to Term

• Current Assignee: Citibank NA (Citigroup Incorporated)
• Original Assignee: Citibank NA (Citigroup Incorporated)
• Inventors: Rosen, Sholom S.
• Primary Examiner(s): Barron, Jr., Gilberto
• Application Number:
  US08/994,528
• Time in Patent Office: 655 Days
• Field of Search: 380/24, 705/35, 705/39, 705/41, 902/2, 902/26
• US Class Current: 705/67
• 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 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/12 specially adapted for electronic shopping systems
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• 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 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G07F 17/16 for devices exhibiting advertisements, announcements, pictures or the like
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 63/0823 using certificates cryptographic mechanisms or cryptographic arrangements for entity authentication involving certificates H04L9/3263
• CPC Class Codes: H04L 63/123 received data contents, e.g. message integrity
• CPC Class Codes: H04L 9/0891 : Revocation or update of secret information, e.g. encryption key update or rekeying
• CPC Class Codes: H04L 9/3263 : involving certificates, e.g. public key certificate [PKC] or attribute certificate [AC]; Public key infrastructure [PKI] arrangements network architectures or network communication protocols for supporting authentication of entities using certificates in a packet data network H04L63/0823

Abstract

An electronic-monetary system having (1) 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 and 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 in off-line transactions; (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 clearing bank for balancing the electronic money accounts of the different issuing banks; (6) a data communications network for providing communications services to all components of the system; and (7) a security arrangement for maintaining the integrity of the system, and for detecting counterfeiting and tampering within the system. An embodiment of the invention includes a customer service module which handles lost money claims and links accounts to money modules for providing bank access.

Claims

1. A method for a first subscriber to exchange an electronic representation of a first foreign currency stored in a first transaction module for an electronic representation of a second foreign currency stored in a second transaction module, comprising the steps of:

(a) establishing a cryptographically secure session between said first transaction module and said second transaction module;

(b) said subscriber selecting, by way of said first transaction module, a first amount of said first foreign currency to be sold;

(c) checking if said first transaction module has sufficient funds;

(d) said first transaction module sending said first amount to said second transaction module, via said cryptographically secure session;

(e) said second transaction module prompting its owner to select an exchange rate or a second amount of said second currency;

(f) checking if said second transaction module has sufficient funds;

(g) said second transaction module sending a message indicative of said second amount or said exchange rate to said first transaction module, via said cryptographically secure session;

(h) said first subscriber confirming said second amount or said exchange rate;

(i) said first transaction module sending said electronic representation of first foreign currency to said second transaction module, in said first amount, via said cryptographically secure session;

(j) said second transaction module sending said electronic representation of said second foreign currency to said first transaction module, in said second amount, via said cryptographically secure session; and

(k) committing said first transaction module to transferring said first foreign currency to said second transaction module and said second transaction module to receiving said first foreign currency from said first transaction module, and committing said second transaction module to transferring said second foreign currency to said first transaction module and said first transaction module to receiving said second foreign currency from said second transaction module, in an order which is not predictable.

2. The method according to claim 1, wherein step (k) comprises the steps of:

(a) said first transaction module and said second transaction module sharing a common random binary value, having either a first value or a second value;

(b) said first transaction module conditionally logging either said transferring of said first foreign currency to said second transaction module or said receiving of said second foreign currency from said second transaction module, where said common random binary value has said first value or said second value, respectively, such that rolling back may occur;

(c) said first transaction money module sending a message to said second transaction module indicating that said first transaction module has completed conditionally logging a transfer;

(d) said second transaction module, in response to said message, conditionally logging either said receiving of said first foreign currency from said first transaction module or said transferring of said second foreign currency to said first transaction module, where said common random binary value equals said first value or said second value, respectively, such that rolling back may occur;

(e) said second transaction money module, where said common random number value equals the first value, sending a start-commit message to said first transaction module;

(f) said first transaction module, in response to said start-commit message, setting said conditionally logging to unconditional logging, and initiating a commit protocol wherein said first transaction module commits to its outstanding transfer so that said first transaction module can no longer abort said transfer by rolling-back its state, and wherein said second money module commits to said transferring second foreign currency and to said receiving first foreign currency by logging said transferring and receiving so that said second money module can no longer abort said exchange of foreign currency by rolling-back its state; and

(g) said second transaction module, where said common random number value equals the second value, setting said conditionally logging to unconditional logging and initiating a commit protocol wherein said second transaction module commits to its outstanding transfer so that said second transaction module can no longer abort said transfer by rolling-back its state, and wherein said first money module commits to said transferring first foreign currency and receiving second foreign currency so that said first money module can no longer abort said exchange of foreign currency by rolling-back its state.

3. The method according to claim 2, wherein said common random number is generated as a session key during said step of establishing a cryptographically secure session.

4. The method according to claim 1, wherein said commit protocol initiated by a given money module for any outstanding money transfer with respect to another money module, comprises the steps of:

said given module sending a ready-to-commit message to said another money module;

said another money module sending an acknowledgement to said given money module in response to said ready-to-commit message;

said given money module committing by logging said any outstanding money transfer so that said given money module can no longer abort said any outstanding money transfer by rolling-back its state; and

said another money module committing by logging said any outstanding money transfer so that said another money module can no longer abort said any outstanding money transfer by rolling-back its state.

5. The method according to claim 1, wherein in step (b) said subscriber selects said first amount of said first foreign currency to be sold by type of note.