Registers – Coded record sensors – Particular sensor structure
Reexamination Certificate
2002-06-27
2004-07-20
St. Cyr, Daniel (Department: 2876)
Registers
Coded record sensors
Particular sensor structure
C235S385000
Reexamination Certificate
active
06764013
ABSTRACT:
BACKGROUND OF THE INVENTION
This invention relates in general to a multi-purpose terminal, payroll and work management system and related methods, and more particularly, to a multi-purpose terminal that employees may use after authentication with a bank card and personal identification number (PIN) to check-in and check-out of work, to receive new work instructions or assignments, to review payroll details, to print a payroll stub, to execute financial transactions, to print a receipt of a financial transaction or to receive the results of work quality audits. The invention also relates to systems and methods that utilize such multi-purpose terminals, including deposit of net pay in a bank account associated with each employee's bankcard so that the pay is immediately accessible by each employee.
Automated teller machines (ATMs) are typically owned by banks or banking networks. They are widely available and are frequently used to dispense cash. A customer inserts or slides a bankcard in the ATM so that a coded account number can be read from the bankcard. Through a financial network, such as Visa™/Plus™ or Mastercard™/Cirrus™, the ATM then communicates with the bank that issued the bank card (the issuing bank) to see if the desired cash withdrawal exceeds the current balance in a bank account that is related to the account number. If not, the cash is dispensed and the card owner's account is debited in the amount of the withdrawal plus any service charge for use of the ATM.
The user of the bankcard is also provided with a personal identification number (PIN) or password that is associated with the account number. The PIN is entered at the request of the ATM prior to authenticating both the account number and the PIN. In the event that the bankcard is lost, the finder will not be able to withdraw funds since he/she lacks the PIN necessary to complete any ATM transaction.
ATMs provide a variety of account transactions. The user may withdraw cash from user's checking account, savings account or as an advance from a line of credit, such as a credit card account. The user may also transfer funds between accounts, such as from a checking account to a savings account. In some instances, the user may ascertain the balances in accounts associated with the account number. However, the principal use of ATMs continues to be cash withdrawal.
Local currency exchanges compete with banks and the ATMs by providing financial services for their profiled customers. Profiled customers have previously signed a signature card or have otherwise previously confirmed their identity with a local currency exchange, or with a network of such currency exchanges. Currency exchanges tend to operate locally, instead of in nationwide like the banking networks. The currency exchanges compete with banks and ATMs by cashing checks, particularly payroll checks, for its profiled customers. A typical fee for such a transaction is about 1.6 percent of the amount of the payroll check. For higher volume transactions, the income from check cashing can be quite substantial.
The customers of currency exchanges are typically lower-wage local residents who do not have checking or savings accounts at a local bank, and therefore rely on a currency exchange to convert their paychecks into cash. Since they do not have a bank account, they do not have a bankcard and cannot use an ATM. There is therefore a business opportunity for banks to acquire new customers by providing the functions performed by currency exchanges in cashing payroll checks and money orders.
Wire transfer of funds is another function typically performed by one bank to another bank. This function is not normally available at currency exchanges. As a result, those individuals who use currency exchanges for their financial affairs often use a company that specializes in wire transfers, such as Western Union or American Express Company. The fees for providing wire transfer service at these companies are generally around 4 to 6.5 percent, depending upon the amount transferred. For example, a typical current fee for wire transferring a minimum of $200.00 is about $13.00. These fees are graduated upwardly for larger wire transfers; such as to about $200.00 in fees to wire transfer $5,000.00.
Many of the afore-mentioned lower-wage earners send money to their relatives in the United States or abroad. Among the other more significant users of wire transfers are travelers and the parents of college students because immediate access to funds is often desired or needed. Thus, if wire transfers could be accomplished relatively inexpensively, additional customers could be obtained who are likely to also use the other available financial services. This presents yet another business opportunity.
Larger employers usually develop or purchase a payroll system. Often, the payroll system is part of a larger computer system that records many different types of business transactions. These payroll systems are quite complex since they must deal not only with time and attendance, but also with a plethora of potential deductions. Deductions generally include federal income tax, FICA, state income tax, in some instances county, township or city tax, health insurance, dental insurance, contributions to retirement plans, contributions to profitability or stock purchase plans, union dues, alimony and the like. For businesses with employees in more than one state, the complexity is usually compounded by differences in the state and local tax laws.
However, the real inefficiency in payroll systems is in keeping track of the time of hourly employees. Customarily, timesheets are collected, the payroll is processed and payroll checks are cut and distributed to the employees. Payroll is often centralized for employers with more than one location. This means that timesheets are express mailed to where the payroll is processed, such as at the corporate headquarters. The payroll checks must then be issued and express mailed back to all of the employee locations. This process is expensive, cumbersome and time consuming. Thus, payroll cannot practically or economically be done on a daily basis is such systems. Most employers therefore pay their employees once every two weeks, or once a month.
Employee turnover is another significant expense. The payroll database must frequently be updated to add new employees and to delete former employees, including all pertinent employee information. The hiring process to attract and bring in new employees to replace departing employees is particularly expensive.
On the other hand, employers can increase employee loyalty and reduce such payroll and hiring expenses by paying wages more frequently, such as on a weekly basis, or even on a daily basis. Research indicates that lower-wage employees will frequently change jobs for as little as $0.25 per hour increase in wages. This is particularly a problem for employers in labor-intensive industries, such as janitorial services, fast food franchises and the like.
Research also indicates that many employees will actually work for somewhat less compensation than is available in the competitive marketplace if they are paid more frequently. This is because many employees operate from paycheck to paycheck, and some employees have difficulty surviving financially until the next paycheck. A more frequent paycheck is therefore of considerable value to such employees since it reduces the pay cycle. More frequent wage payment also operates as a disincentive for many employees to change employment to a different employer with longer wage payment intervals.
Another problem with prior art payroll systems is fraud resulting from buddy punching. This is where an employee who may be late, leaves early, or will be absent on a particular day has a buddy or friend punch his/her timecard in and/or out. Such fraud remains a significant problem in many labor-intensive industries where large numbers of employees check-in and checkout each workday. Various biometric systems that verify the identity of the person by his or her ph
American EPS, Inc.
Cook Alex McFarron Manzo Cummings & Mehler, Ltd.
Cyr Daniel St.
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