Electronic-monetary system

• US 5,455,407 A
• Filed: 01/27/1995
• Issued: 10/03/1995
• 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): Shepperd, John
• Assistant Examiner(s): LEE, MICHAEL GUNYOUNG
• Application Number:
  US08/378,955
• Time in Patent Office: 249 Days
• Field of Search: 235/380, 235/379, 902/24, 364/406
• US Class Current: 705/69
• 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. An electronic monetary system comprising:

an issuing bank having a first on-line accounting system;

electronic representations of money that are credited in said first on-line accounting system as current liabilities of said issuing bank;

a money generator module that generates said electronic representations of money;

a first teller module, associated with said issuing bank, that stores said electronic representations of money;

a plurality of correspondent banks, each having a second on-line accounting system and each maintaining an account at said issuing bank;

a plurality of second teller modules, each associated with one of said correspondent banks, that each store said electronic representations of money;

a transaction module that stores said electronic representations of money, performs on-line transactions with said plurality of correspondent banks, and exchanges said electronic representations of money with other transaction modules in off-line transactions;

where said first teller module has a first processor that intermediates transactions among said first on-line accounting system, said money generator module, and said second teller module; and

where said second teller module has a second processor that intermediates transactions among said second on-line accounting system, said first teller module, and said transaction module.

2. A time-based transaction module transfer system, comprising:

a plurality of tamper-proof electronic transaction modules each having a memory that stores electronic notes that include an expiration date, a clock that maintains a system time, a processor adapted to provide a cryptographically secure channel for transferring and receiving said electronic notes, where said processor is further adapted not to permit a transfer of said electronic notes between said transaction modules if said transfer would occur after said expiration date of said electronic notes.

3. The system of claim 2, wherein said electronic notes are electronic representations of currency that are credited as current liabilities in an on-line accounting system of an issuing bank.

4. The system of claim 3, wherein said electronic representations of currency stored in said transaction module are updated when transacting with an electronic monetary system including said issuing bank.

5. The system of claim 2, wherein said electronic notes are electronic credit authorizations that are drawn on a subscriber'"'"'s loan account in an on-line accounting system so as to reduce said subscriber'"'"'s available credit line.

6. A transaction module transfer system, comprising:

a plurality of tamper-proof electronic transaction modules each having a memory that stores electronic notes that include a transfer record having a transferred monetary value, a processor adapted to provide a cryptographically secure channel for transferring and receiving said electronic notes, where said processor is further adapted to generate said transfer record and append said transfer record to said electronic notes upon transfer.

7. The system of claim 6, wherein said electronic notes are electronic representations of currency that are credited as current liabilities in an on-line accounting system of an issuing bank.

8. The system of claim 6, wherein said electronic notes are electronic credit authorizations that are drawn on a subscriber'"'"'s loan account in an on-line accounting system so as to reduce said subscriber'"'"'s available credit line.

9. A transaction module based monetary transaction system, comprising:

a security server that implements the security of said monetary transaction system;

a plurality of tamper-proof electronic transaction modules each having a unique module identifier contained within a time-limited certificate that is digitally signed by said security server, a clock that maintains a system time, a memory that stores electronic representations of money, a processor adapted to provide a cryptographically secure channel for transferring and receiving said electronic representations of money; and

wherein said processor is further adapted not to allow a transaction module having an expired certificate to transact with other transaction modules until a new certificate is obtained.