Apparatus and method for secure transacting

• US 6,122,625 A
• Filed: 02/18/1998
• Issued: 09/19/2000
• Est. Priority Date: 11/15/1991
• Status: Expired due to Fees

• Current Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Original Assignee: Citibank (South Dakota) NA (Citigroup Incorporated)
• Inventors: Rosen, Sholom S.
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): Nguyen, Cuong H.
• Application Number:
  US09/025,393
• Time in Patent Office: 944 Days
• Field of Search: 705/44, 705/30, 705/35, 705/39, 705/42, 705/43, 705/65, 705/67-69, 380/4, 380/23, 380/25, 380/30, 380/52, 380/3, 380/9, 380/24, 380/21, 380/49-50, 713/200, 713/201, 713/173, 235/379
• US Class Current: 705/65
• 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 method for withdrawing electronic representations of money, comprising the steps of:

establishing a first session between a transaction module and a first teller module;

establishing a second session between said first teller module and a second teller module;

transferring an electronic representation of money from said second teller module to said first teller module via said second session;

transferring said electronic representation of money from said first teller module to said transaction module via said first session;

after said transaction module receives said electronic representation of money, said first teller module and said transaction module committing to their transaction; and

after said first teller module and said transaction module commit to their transaction, said second teller module and said first teller module committing to their transaction.

2. The method of claim 1, further comprising the steps of said first teller module initiating accounting changes to a first computer controlled accounting system;

and said second teller module initiating accounting changes to a second computer controlled accounting system.

3. The method of claim 1, further comprising the step of a money generator module combined with said second teller module generating said electronic representation of money.

4. The method of claim 1, further comprising the step of a money generator module separate from said second teller module generating said electronic representation of money.

5. A method for withdrawing electronic representations of money, comprising the steps of:

establishing a connection between a transaction module and a teller module, wherein said transaction module stores a plurality of electronic representations of money each associated with a monetary amount;

said transaction module transferring its stored electronic representations of money to said teller module;

a money generator module generating a new electronic representation of money having a total monetary value equal to a withdrawal amount plus a total value of all said electronic representations of money transferred from said transaction module; and

said teller module transferring said new electronic representation of money to said transaction module.

6. The method of claim 5, wherein each electronic representation of money is associated with a time limit;

and wherein said transaction module transfers its stored electronic representations of money to said teller module whether or not said electronic representations of money have expired.

7. The method of claim 6, wherein said new electronic representation of money has an updated time limit.

8. The method of claim 7, wherein said money generator module and said teller module are combined in a processing device.

9. A method for depositing electronic representations of money, comprising the steps of:

establishing a connection between a transaction module and a teller module, wherein said transaction module stores a plurality of electronic representations of money each associated with a monetary amount;

said transaction module transferring its stored electronic representations of money to said teller module;

a money generator module generating a new electronic representation of money having a total monetary value equal to a total value of all said electronic representations of money transferred from said transaction module minus a deposit amount; and

said teller module transferring said new electronic representation of money to said transaction module.

10. The method of claim 9, wherein each electronic representation of money is associated with a time limit;

and wherein said transaction module transfers its stored electronic representations of money to said teller module whether or not said electronic representations of money have expired.

11. The method of claim 10, wherein said new electronic representation of money has an updated time limit.

12. The method of claim 11, wherein said money generator module and said teller module are combined in a processing device.

13. A tamper-proof electronic transaction device comprising:

an external interface;

an electronic processor in communication with said external interface;

a memory that stores a unique digital certificate associated only with said transaction device, where said digital certificate includes a unique identifier, a public key, and a digital signature; and

a key generator that generates a public and private key pair, wherein said public key is included within said digital certificate.

14. The device of claim 13, wherein said key generator includes a random number generator.

15. The device of claim 13, wherein said digital certificate includes a unique device identifier and said digital signature is provided by a security server which creates said digital certificate.

16. The device of claim 15, wherein said transaction device is adapted to transfer a public key to said security server for incorporation into a digital certificate.

17. The device of claim 13, wherein said electronic transaction device is adapted to roll-back its state in the event of a failed transaction;

and said transaction device is further adapted to execute a commit protocol at the conclusion of a successful transaction,

wherein said transaction device updates a transaction log and sends a commit message to another transaction device, where said commit message causes said other transaction device to update its transaction log.

18. The device of claim 13, wherein said memory further stores electronic representations of money.

19. An electronic transaction device comprising:

an external interface;

an electronic processor in communication with said interface;

cryptography means;

a memory that stores electronic representations of money and security parameters;

power means; and

wherein said transaction device is adapted so that after said transaction device has lost and then regained power, it will not be able to transfer said electronic representations of money until said transaction device connects to a security server and has its security parameters updated.

20. An electronic transaction device comprising:

an external interface;

an electronic processor in communication with said interface;

cryptography means;

a memory that stores electronic representations of money, module personalization data including owner identification characteristics, and bank account profiles;

wherein said transaction device is adapted to compare said owner identification characteristics to data input in an attempt to access said transaction device;

and wherein said transaction device is further adapted so that initial personalization of said transaction device is inhibited if said transaction device detects either a bank account profile or electronic representations of money already stored in said memory.

21. An electronic monetary system comprising:

a money generator module that generates electronic representations of money each one including a monetary value and an expiration indicator providing a period of validity for said electronic representation of money;

a transaction module that stores and transfers said electronic representations of money to other transaction modules;

wherein said money generator module is adapted to provide a shorter period of validity for electronic representations of money having a high monetary value than for electronic representations of money having a lower monetary value.