Electronic-monetary system

• US 5,920,629 A
• Filed: 12/19/1997
• Issued: 07/06/1999
• Est. Priority Date: 04/28/1994
• 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): Barron, Jr., Gilberto
• Application Number:
  US08/994,630
• Time in Patent Office: 564 Days
• Field of Search: 380/24, 705/41, 235/379
• 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 20/105 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 payment method using a first money module to transfer an electronic representation of money to a second money module, comprising the steps of:

(a) establishing a cryptographically secure session between said first money module and said second money module where said first and second money modules are tamper-proof modules;

(b) said second money module sending transaction terms including a monetary amount of said electronic representation of money to said first money module, via said cryptographically secure session;

(c) said first money module, after receiving said transaction terms, transferring said electronic representation of money to said second money module, via said cryptographically secure session;

(d) said first money module rendering its transfer of said electronic representation of money as not provisional; and

(e) said second money module rendering its retention of said electronic representation of money as not provisional.

2. The payment method of claim 1, wherein said step of said first subscriber supplying a verification includes designating an apportionment of said monetary amount between credit and currency.

13. The payment method according to claim 1, further comprising the step of said second money module prompting a second subscriber for transaction terms, and said second subscriber supplying said transaction terms to said second money module.

14. The payment method according to claim 1, further comprising the step of said first money module prompting a first subscriber to verify said transaction terms, and said first subscriber supplying a verification of said transaction terms.

15. The payment method according to claim 1, further comprising the step of said first money module receiving a ready-to-commit message sent by said second money module, wherein said step (d) is in response to receiving said ready-to-commit message.

16. The payment method according to claim 15, further comprising the step of said first money module, in response to receiving said ready-to-commit message, sending an acknowledgement message to said second money module, wherein said step (e) is in response to receiving said acknowledgement message.

3. A payment method using a first money module to transfer an electronic representation of money to a second money module, comprising the steps of:

establishing a cryptographically secure session between said first money module and said second money module where said first and second money modules are tamper-proof electronic modules;

said first money module transferring an electronic representation of money to said second money module, via said cryptographically secure session;

said second money module, after receiving said electronic representation of money, sending a ready-to-commit message to said first money module;

said first money module receiving said ready-to-commit message, whereafter its transfer of said electronic representation of money is not provisional with respect to said first money module;

said first money module, in response to said ready-to-commit message, sending an acknowledgement message to said second money module;

said second money module receiving said acknowledgement message, whereafter its retention of said electronic representation of money is not provisional.

4. The payment method of claim 3, wherein said first money module may abort prior to its transfer of said electronic representation of money becoming not provisional, and wherein said second money module may abort prior to its retention of said electronic representation of money becoming not provisional, by following an abort routine programmed in said first and second money modules.

5. The payment method of claim 4, wherein said abort routine includes the money module executed steps of:

checking if said ready-to-commit message was sent;

where said ready-to-commit message was sent, recording information associated with said electronic representation of money received from said first money module, wherein said information associated with said electronic representation of money can be used for claiming lost electronic money.

6. The payment method according to claim 5, wherein said abort routine comprises the money module executed steps of:

sending a message to the other of said money modules indicating that said electronic money transfer cannot be completed; and

wherein said other of said money modules, in response to said message, rolls back its changes regarding said electronic money transfer and notes that said electronic money transfer is aborted.

7. The payment method according to claim 6, further comprising the step, where said other of said money modules is a transaction money module used by a subscriber, of sending a message to said subscriber that said electronic transfer is aborted.

8. The payment method according to claim 6, further comprising the step, where said other of said money modules is a teller money module associated with a bank, of informing said bank to reverse accounting transactions performed for said electronic transfer.

9. The payment method according to claim 5, further comprising the step of said first money module rolling-back changes and recording that said transaction is aborted.

10. The payment method according to claim 5, further comprising the step, where said second money module is a transaction money module used by a subscriber and said ready-to-commit message was not sent, of sending a message to said subscriber that said electronic transfer is aborted.

11. The payment method according to claim 5, further comprising the step, where said second money module is a transaction money module used by a subscriber and said ready-to-commit message was sent, of sending a message to said subscriber that said electronic transfer is aborted and that a possible money transfer error occurred.

12. The payment method according to claim 5, further comprising the step, where said second money module is a teller money module associated with a bank and said ready-to-commit message was sent, of informing said bank to reverse accounting transactions performed for said electronic transfer.

17. The payment method according to claim 3, wherein said first money module updates its transaction log to indicate its transfer of said electronic representation of money is not provisional with respect to said first money module.

18. The payment method according to claim 3, wherein said first money module sends an end of transaction message to a host to indicate its transfer of said electronic representation of money is not provisional with respect to said first money module.

19. The payment method according to claim 3, wherein said second money module updates its transaction log to indicate its retention of said electronic representation of money is not provisional.

20. The payment method according to claim 3, wherein said second money module sends an end of transaction message to a host to indicate its retention of said electronic representation of money is not provisional.