Processing system and method for a heterogeneous electronic cash environment

• US 6,065,675 A
• Filed: 06/29/1998
• Issued: 05/23/2000
• Est. Priority Date: 06/30/1997
• Status: Expired due to Term

• Current Assignee: Cardis Enterprise International NV
• Original Assignee: Cardis Enterprise International NV
• Inventors: Teicher, Mordechai
• Primary Examiner(s): Le, Thien M.
• Assistant Examiner(s): FELTEN, DANIEL S
• Application Number:
  US09/106,682
• Time in Patent Office: 694 Days
• Field of Search: 235/379, 235/380, 235/487, 235/375, 235/492, 235/440, 902/2, 902/10, 902/22, 902/26, 705/35, 705/41
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/18 involving self-service terminals [SST], vending machines, kiosks or multimedia terminals
• CPC Class Codes: G06Q 20/227 characterised in that multiple accounts are available, e.g. to the payer
• CPC Class Codes: G06Q 20/29 characterised by micropayments
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence

Abstract

A heterogeneous stored-value system which offers interoperability among a number of proprietary payment card brands with differing fee structures. The system makes use of existing settlement practices and fee structures to increase the amount of commerce while imposing minimal changes. The benefits of the interoperability among different proprietary brands include reduced operating costs, since a single electronic cash pool can serve many different payment card brands. Although the electronic cash of the system is generic and is shared among the different payment card brands, the flow of electronic cash is prescribed in such a manner as to maintain an association between electronic cash (over the course of circulation) and the specific brand of payment card through which it was acquired by the customer. In this way, a transaction involving electronic cash represents a small piece of a much larger charge or debit transaction and carries its proportional share of the fees of the charge or debit transaction. Electronic cash originally obtained through a specific payment card brand is reconsolidated at settlement, assuring proper accounting for these fees. Thus, electronic cash can be freely used for small purchases, and the original charge or debit transaction can benefit from the fees associated with those small purchases, but without imposing any significant transaction overhead for handling each small purchase individually. The system can handle isolated flow, where electronic cash flows from a loading device to a payment card and thence from a payment card to a point of sale to settlement, where electronic cash can flow into a payment card only from the loading device. The system can also handle circulation of the electronic cash, whereby reloading is accomplished by returning electronic cash to a payment card as change from a charge transaction at a point of sale. In addition, payment cards with more than one charge function can be handled, whereby the customer can specify which of several charge functions will be used to acquire the electronic cash.

Claims

1. A heterogeneous electronic cash payment system having at least two different brands of charge function, each brand having loading terms and settlement terms, the heterogeneous electronic cash payment system comprising:

(a) a plurality of payment cards, each payment card belonging to a customer, each payment card having at least one charge function to a remotely chargeable account of said customer, and at least one electronic purse operative to containing electronic cash and having a contents brand ID register for associating a charge function brand with said electronic cash;

(b) at least one loading device operative to interfacing with a specified payment card, adding electronic cash to the electronic purse of said specified payment card against payment from a selected charge function according to the loading terms of the brand of said selected charge function;

(c) at least one point of sale having a transaction record and an electronic cash drawer for storing electronic cash, said point of sale operative to interfacing with a presented payment card of said plurality of payment cards, receiving an electronic cash payment from said presented payment card, reading the brand of a predetermined charge function of said presented payment card, depositing said electronic cash payment in said electronic cash drawer, and recording said electronic cash payment along with said brand of a predetermined charge function onto said transaction record; and

(d) a settlement system operative to settling electronic cash payments according to the settlement terms of the brands of charge functions associated with said electronic cash payments.

2. The system of claim 1, wherein said point of sale is further operative, upon communicating with a payment card and reading the brand of said payment card, to selectively accept or reject said payment card for payment.

3. The system of claim 1, wherein a first payment card is not allowed to transfer electronic cash to a second payment card whose charge function is of a brand different from the charge function of said first payment card, and wherein a point of sale is allowed to transfer electronic cash only to a settlement system.

4. The system of claim 1, wherein the brand associated with said contents brand ID register is predetermined and may not be changed.

5. The system of claim 1, wherein the brand associated with said contents brand ID register may be changed.

6. The system of claim 1, wherein said transaction record comprises a sequential data file.

7. The system of claim 1, wherein said transaction record comprises a cumulative register.

8. The system of claim 1, wherein at least one of said loading devices is contained within an enhanced point of sale, said enhanced point of sale being operative, upon interfacing with a presented payment card chosen for paying a payment sum according to a specified charge function selected from said at least one charge function, said loading terms stipulating a predetermined reload sum, to automatically determine whether to:

i) charge the predetermined reload sum to the specified charge function;

ii) return to the electronic purse of said payment card as change an amount of electronic cash equal to the difference between said predetermined reload sum and the payment sum; and

iii) record the payment sum and the brand of said specified charge function onto said transaction record.

9. The system of claim 1, wherein said settlement system is further operative to communicating with a selected point of sale and transferring electronic cash with the electronic cash drawer of said selected point of sale.

10. The system of claim 1, wherein said settlement system comprises:

i) a merchant computer owned by a merchant operative to collecting and submitting charge slips, transaction records, and electronic cash;

ii) a settlement network operative to receiving charge slips and issuing conventional monetary payment therefor;

iii) an electronic cash pool operative to storing electronic cash and exchanging electronic cash for conventional monetary payment; and

iv) an acquirer computer operative to;

receiving charge slips and electronic cash;

making conventional monetary payment to said merchant;

exchanging electronic cash with said electronic cash pool for conventional monetary payment; and

submitting charge slips to said settlement network in exchange for conventional monetary payment.

11. The system of claim 1, wherein said at least one point of sale includes a plurality of brand accounting modules, each of which contains at least one register selected from the group consisting of a transaction counter and an accumulated transaction balance register.

12. The system of claim 1, wherein at least one of said plurality of payment cards is a multiple charge function payment card containing a plurality of charge functions of different brands.

13. The system of claim 8, wherein said enhanced point of sale, upon determining to add said difference into said electronic purse, subtracts said difference from the electronic cash accumulated in the electronic cash drawer of said enhanced point of sale.

14. The system of claim 12, wherein each of said plurality of charge functions contains an electronic purse having an electronic cash balance.

15. The system of claim 12, wherein said multiple charge function payment card contains a single electronic purse having an electronic cash balance and a contents brand ID register which associates the electronic cash in said single electronic purse with a specific charge function brand.

16. A method for managing a heterogeneous electronic cash environment, the environment having a plurality of charge function brands, each brand having loading terms and settlement terms, the environment further having a plurality of payment cards, each payment card having an electronic purse and a contents brand ID register, the environment further having at least one loading device and at least one point of sale with an electronic cash drawer and a transaction record, the environment further having a settlement system, the method comprising the steps of:

(a) interfacing a selected payment card to a loading device, initiating a charge transaction with a charge function of said selected payment card, transferring electronic cash into the electronic purse of said selected payment card according to the loading terms for the brand of said charge function, and setting the contents brand ID register of said selected payment card to said brand of said charge function;

(b) interfacing a presented payment card to a specified point of sale, transferring an electronic cash payment from the electronic purse of said presented payment card to the electronic cash drawer of said specified point of sale, and recording the brand set in the contents brand ID register of said presented payment card onto the transaction record of said specified point of sale; and

(c) settling said electronic cash payment through the settlement system according to the settlement terms of the brand recorded onto said transaction record.

17. A method for associating a new charge function brand with electronic cash returned as change from a purchase transaction to a multiple charge function payment card having a single electronic purse, the purchase transaction having a sum and being made via the new charge function brand, the single electronic purse containing a balance of electronic cash associated with a previous charge function brand, the single electronic purse having a contents brand ID register indicating the charge function associated with the electronic cash contained in the single electronic purse, the method comprising the steps of:

(a) paying the balance of electronic cash in the single electronic purse toward the sum of the purchase transaction, the payment being associated with the previous charge function brand;

(b) charging a predetermined minimum charge transaction amount to the new charge function brand;

(c) returning, as change, an amount of electronic cash to the electronic purse equal to said predetermined minimum charge transaction amount plus the balance less the sum of the purchase transaction; and

(d) setting the contents brand ID register to indicate the new charge function brand.