Process for executing payment transactions

Registers – Systems controlled by data bearing records – Banking systems

Patent

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Details

235380, 902 40, G06F 1500

Patent

active

060219432

ABSTRACT:
A process for executing payment transactions between a user and a merchant, the process being carried out in connection with a bank or other institution maintaining a financial account for the user. The process comprises a step of segmenting the financial account of the user into a first sub-account containing unrestricted funds and a second sub-account containing restricted funds and transferring funds from the first sub-account of unrestricted funds to the second sub-account of restricted funds. Preferably, the transferring of the funds is done periodically according to a predetermined budget or is done from time to time according to specific authorization. The process also comprises tendering a restricted funds bank card to the merchant for accessing restricted funds in the second sub-account and scanning the restricted funds bank card electronically to identify the account to be accessed. The process also comprises the step of communicating a payment request from the merchant to the bank or other institution, with the payment request identifying the account to be debited and the amount to be debited therefrom. Further, the process comprises evaluating the payment request and an instantaneous balance in the second sub-account of restricted funds, and, if the second sub-account has sufficient funds to cover the payment requested, debiting the second sub-account by the amount requested for payment to the merchant.

REFERENCES:
patent: 4454414 (1984-06-01), Benton
patent: 4837422 (1989-06-01), Dethloff
patent: 5231571 (1993-07-01), D'Agostino
patent: 5350906 (1994-09-01), Brody
patent: 5478993 (1995-12-01), Derksen
patent: 5506397 (1996-04-01), Hoshino
patent: 5521362 (1996-05-01), Powers
patent: 5534683 (1996-07-01), Rankl
patent: 5544246 (1996-08-01), Mandelbaum
patent: 5546523 (1996-08-01), Gatto
patent: 5563395 (1996-10-01), Hoshino
patent: 5623547 (1997-04-01), Jones

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