Registers – Systems controlled by data bearing records – Credit or identification card systems
Reexamination Certificate
2002-08-30
2004-11-23
Le, Thien M. (Department: 2876)
Registers
Systems controlled by data bearing records
Credit or identification card systems
C235S381000, C235S441000, C235S382000, C705S050000, C705S064000
Reexamination Certificate
active
06820803
ABSTRACT:
FIELD OF THE INVENTION
This invention pertains to a cash card system and, more particularly, to a cash card system providing a substitute for carrying and using currency, and affords the user both security and anonymity.
BACKGROUND OF THE INVENTION
Everyone is acutely aware of the drawbacks of using or carrying cash in order to obtain goods and services. Cash is easily lost, stolen, or counterfeited. Credit cards are not much better than cash, because they too can be lost, stolen, or counterfeited. One of the advantages of using a credit card is that liability to the individual is often limited to a relatively small, predetermined amount (e.g., $50), but only if the loss is realized and reported promptly. Additionally, losses incurred by the banks are passed on to the cardholders in the form of higher fees and interest payments. It is obvious that a better card transaction system is needed.
Most recently, the use of cash cards has had some success, particularly in Europe. Cash cards, however, have similar problems to other credit card systems.
The present invention seeks to provide an improved cash card system substantially eliminating the need to use cash, that is safer and more convenient to use.
The cash card system of the current invention uses two cards: a cash card that is related to a second, security card. A magnetic stripe or chip on the back of the cash card contains the requisite information for making a purchase of goods or services at participating retailers. The security card is presented at any bank to obtain a refund for the cash contained in a stolen or lost cash card.
At the time of initial purchase of the cards from a vendor, like a bank, the purchaser is provided with a cash card containing an account number and an encoded or encrypted PIN number selected by the cardholder and known only to him or her. The purchaser selects and pays for the monetary value that is then entered into the cash card system. The card containing the selected PIN number and the account number is then activated as an authorization card for the cash card system.
The user purchases a dollar amount for the cash card, which is electronically loaded therein. This procedure is similar to telephone card systems allowing minutes to be pre-purchased. The cash card can also be used to encode the amount used in the course of purchasing goods and services, in another embodiment. The purchaser pays for the electronic cash by cash, check, or electronic transfer of funds. No identification by the purchaser is required to purchase the cash card, thus preserving anonymity. Once the second card is electronically loaded, the user can then use the cash card at any participating sales establishment simply by using the purchaser-assigned PIN to approve purchases. The user types in the PIN to activate and approve the purchase using the cash card. The approval for the purchase can be verified by subscribing retailers, who swipe the cash card through a card reading machine in order to verify that the PIN number is correct, and to debit the cash needed for the purchase. The amount of the purchase is immediately electronically approved and debited from the cash card. A running balance is maintained for the account held with the issuing bank or agency.
In the event of loss or theft, the cash card cannot be used without entering the proper and correct PIN number assigned by the cardholder at the time of purchase. A refund of the cash remaining in the account is obtained by presenting the security card to the subscribing issuer and verifying the PIN number contained therein. Therefore, either card is useless without the PIN. People using the card system will be instructed to keep the cards separated upon their person, or to leave the identification card at home, in order to foil theft and misappropriation. The PIN number will be encrypted and encoded on both the identification card and the cash card, so it will be difficult to determine the PIN without prior knowledge. The security card is used only to retrieve funds from the lost/stolen cash card. This feature keeps others from using the cash card without authorization from the purchaser.
Should the cash card fall into alien hands, its use would be prohibited by virtue of the need for the correct PIN, which must accompany the use of the card when making a purchase.
In the event of loss of either card, notifying the issuing bank or agency can void each card. A new cash card and/or a new identity card with a new PIN can then be issued to the user.
A lost cash card that has been partially used can be replaced with a new card loaded with the remainder of the funds, because a running balance is maintained by the issuing bank or agency. The transaction information at the time of each purchase is recorded so a running balance can be determined after each use of the card.
The cash card system of this invention affords persons anonymity and security. The user enjoys the same anonymity and protections of cash purchases without having to carry cash. The user also enjoys the convenience and freedom of card usage (e.g., paying at the gas pump). A user need not apply for credit and is not subject to “hits” on his or her credit records. The government, retailers, or other institutions cannot easily track purchases, card usage, its purposes, or the transaction locations, with respect to a specific individual. However, the individual can keep a running balance of his or her purchases.
Internet purchases are protected because PINs are required when using the card. Because the card system does not require any identification to purchase and/or use the cash card, it further protects a person's identity by maintaining the identifying PIN code separate from the sales transaction. The cash card is not encoded or encrypted with any personal user information (e.g., name, date of birth, social security number, etc.).
The problem of identity theft is a growing concern for Internet users and consumers. This card system provides electronic purchasing power without revealing any personal information. At the same time, immediate payment to the retailer or seller is ensured.
The card system of the invention is designed to clear through an issuer, like a bank, credit union, financial institution, or other commercial agency, where the cash card is purchased. The card is designed to have an unlimited or limited life. It can be renewed or “reloaded” upon the payment of cash or transfer of funds. The credit- or debit-type plastic card can comprise a magnetic stripe or electronic chip. An electronic device (similar to a mini-calculator), displaying the account balance, can also be used as a cash card. The type of card used will depend on the issuer's preference and the amount the purchaser wishes to spend in order to belong to a particular cash card system. Financial institutions will report all cash transactions in excess of $10,000, as required by law. Retailers and sellers will obtain personal information if a purchaser completes a transaction in excess of $10,000, as currently required in regular cash transactions.
The use of traveler's checks is a cashless system similar to the invention. Traveler's checks contain identification numbers identifying the purchaser and the cash amount. Should any one of the checks become lost or stolen, the purchaser can call the issuing bank or American Express, and obtain a refund. The purchaser is given a receipt with the identification numbers disposed on the checks, and is instructed to maintain the receipt separate from the checks. This system incorporates the best features of credit cards, traveler's checks, and cash: the anonymity of cash, the security of traveler's checks, and the convenience of credit and debit cards.
SUMMARY OF THE INVENTION
In accordance with the present invention, a card system is described in which two separate cards are issued to the user. A magnetic stripe, bar code, or chip is disposed on the back of each card. As used herein, the term “electronic” is meant to include any optical, magnetic, electrica
Browning Charles L.
Browning Lucas T.
Gaughan W. Clark
Banner David L.
Le Thien M.
Mark Levy & Associates
Trail Allyson N
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