U.S. patent application number 09/851045 was filed with the patent office on 2001-11-22 for method and apparatus for funds and credit line transfers.
Invention is credited to Jindal, Sanjay K., Jorasch, James A., Walker, Jay S..
Application Number | 20010042785 09/851045 |
Document ID | / |
Family ID | 25363396 |
Filed Date | 2001-11-22 |
United States Patent
Application |
20010042785 |
Kind Code |
A1 |
Walker, Jay S. ; et
al. |
November 22, 2001 |
Method and apparatus for funds and credit line transfers
Abstract
A financial tender transfer system allows a transferor to
transfer credit or make payment to a transferee by debiting the
credit card of the transferor and crediting the credit card of the
transferee. The financial tender transfer system gives the
transferee immediate access to the transferred money and ensures
the transferor's credit card is valid. Neither party needs to give
their credit card number to the other, so security is preserved.
Any amount of value up to the full credit line of the transferor
can be transferred to the transferee.
Inventors: |
Walker, Jay S.; (Ridgefield,
CT) ; Jindal, Sanjay K.; (Wilton, CT) ;
Jorasch, James A.; (Stamford, CT) |
Correspondence
Address: |
Walker Digital Corporation
Five High Ridge Park
Stamford
CT
06905-1326
US
|
Family ID: |
25363396 |
Appl. No.: |
09/851045 |
Filed: |
May 8, 2001 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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09851045 |
May 8, 2001 |
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09359002 |
Jul 22, 1999 |
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6267292 |
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09359002 |
Jul 22, 1999 |
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08874280 |
Jun 13, 1997 |
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5949044 |
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Current U.S.
Class: |
235/379 |
Current CPC
Class: |
G06Q 20/382 20130101;
G06Q 20/401 20130101; G06Q 20/10 20130101; G06Q 40/00 20130101;
G07F 7/0866 20130101 |
Class at
Publication: |
235/379 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A system for transferring financial tender between credit card
accounts, comprising: means for identifying a transferor and a
transferee credit card account; means for identifying a financial
tender value to be transferred from said transferor credit card
account to said transferee credit card account; and means for
initiating the transfer of said financial tender value from said
transferor credit card account to said transferee credit card
account, wherein said transferor credit card account and said
transferee credit card account are separately assigned.
2. A system in accordance with claim 1 wherein said means for
initiating the transfer includes: means for debiting said
transferor credit card account; and means for crediting said
transferee credit card account.
3. A system in accordance with claim 1 wherein: said means for
initiating the transfer of said financial tender value from said
transferor credit card account to said transferee credit card
account includes a computer controller; and said means for
identifying a transferor and a transferee credit card account and
said means for identifying said financial tender value together
include at least one input device connected to said computer
controller.
4. A system in accordance with claim 3 and further including means
connected to said computer controller for communicating with
issuing banks of said transferor and transferee credit card
accounts.
5. A system in accordance with claim 3 wherein said means for
identifying a transferor and a transferee credit card account
further comprises: a transferor name; an identifier representing at
least a portion of a unique account number for said transferor
credit card account; and means for receiving said transferor name
and said portion of said identifier.
6. A system in accordance with claim 3 wherein said means for
identifying a transferor and a transferee credit card account
includes: means for receiving a transferee identification number
from said transferor; and means for receiving a transferor credit
card account number from said transferor, and wherein said means
for identifying said financial tender value includes means for
receiving said financial tender value from said transferor.
7. A system in accordance with claim 3 wherein said means for
identifying a transferor and a transferee credit card account
includes: means for receiving a transferor identification number
from said transferee; and means for receiving a transferee credit
card account number from said transferee, and wherein said means
for identifying said financial tender value includes means for
receiving said financial tender value from said transferee.
8. A system in accordance with claim 7 wherein said computer
controller includes: means for generating said transferor
identification number; and means for transmitting said transferor
identification number to said transferor.
9. A system in accordance with claim 3 wherein said means for
obtaining a transferor and a transferee credit card account
includes a single encrypted code containing at least a portion of a
transferor credit card account number and at least a portion of a
transferee credit card account number.
10. A system in accordance with claim 9 wherein said single
encrypted code further includes said financial tender value to be
transferred from said transferor credit card account to said
transferee credit card account.
11. A system in accordance with claim 10, wherein said computer
controller includes means for generating said single encrypted
code.
12. A method for transferring financial tender between credit card
accounts, said method comprising the steps of: identifying a
transferor account and a transferee account; identifying a
financial tender value to be transferred from said transferor
account to said transferee account; and transferring said financial
tender value from said transferor account to said transferee
account, wherein said transferor account and said transferee
account are not commonly assigned.
13. A method in accordance with claim 12, wherein said step of
transferring said financial tender value transfer includes the
substeps of: debiting said transferor account; and crediting said
transferee account.
14. A method in accordance with claim 12, wherein said step of
initiating the transfer includes the substep of: using a computer
controller to initiate the transfer.
15. A method in accordance with claim 14, wherein said step of
initiating the transfer further includes the substep of:
communicating said transferor and transferee accounts from the
computer controller to issuing banks of said transferor and
transferee accounts.
16. A method in accordance with claim 14, wherein said step of
identifying a transferor and a transferee account includes the
substeps of: identifying a transferor name; identifying an
identifier representing at least a portion of a unique account
number for said transferor account; and receiving said transferor
name and said identifier.
17. A method in accordance with claim 14, wherein said step of
identifying a transferor and a transferee account includes the
substeps of: receiving a transferee identification number from said
transferor; and receiving a transferor account number from said
transferor, and wherein said step of identifying said financial
tender value includes the substep of receiving said financial
tender value from said transferor.
18. A method in accordance with claim 14, wherein said step of
identifying a transferor and a transferee account includes the
substep of: receiving a transferor identification number from said
transferee; and receiving a transferee account number from said
transferee, and wherein said step of identifying said financial
tender value includes the substep of receiving said financial
tender value from said transferee.
19. A method in accordance with claim 18, wherein said step of
receiving a transferor identification number includes the substeps
of: generating said transferor identification number with said
computer controller, and transmitting said transferor
identification number to said transferor from said computer
controller.
20. A method in accordance with claim 14, wherein said step of
identifying a transferor and a transferee account include the
substep of: coding at least a portion of a transferor account
number and at least a portion of a transferee account number as an
encrypted code.
21. A method in accordance with claim 20, wherein said step of
coding includes the substep of: including said financial tender
value to be transferred from said transferor account to said
transferee account in said encrypted code.
22. A method in accordance with claim 21, wherein the step of
coding includes the substep of: generating said encrypted code with
said computer controller.
23. A system for transferring financial tender value between credit
card accounts, comprising: an input means for receiving an
identifier for a transferor account, an identifier for a transferee
account, and an identification of a financial tender value to be
transferred from said transferor account to said transferee
account; and a processor configured to initiate the transfer of
said financial tender value from said transferor account to said
transferee account.
24. A system in accordance with claim 23, wherein said processor
includes: means for initiating the debiting of said transferor
account by said financial tender value; and means for initiating
the crediting of said transferee account for said financial tender
value.
25. A system in accordance with claim 23 wherein: said processor
includes a computer controller; and said input means includes at
least one input device connected to said computer controller.
26. A system in accordance with claim 25, further including means
connected to said computer controller for communicating with
issuing banks of said transferor and transferee accounts.
27. A system in accordance with claim 25 wherein said input means
includes: means for receiving a transferor name and an identifier
representing at least a portion of a unique account number for said
transferor account from said transferee.
28. A system in accordance with claim 25 wherein said input means
includes: means for receiving a transferee identification number
from said transferor; means for receiving a transferor account
number from said transferor; and means for receiving said financial
tender value from said transferor.
29. A system in accordance with claim 25 wherein said input means
includes: means for receiving a transferor identification number
from said transferee; means for receiving a transferee account
number from said transferee; and means for receiving said financial
tender value from said transferee.
30. A system in accordance with claim 29 wherein said computer
controller includes: means for generating said transferor
identification number; and means for transmitting said transferor
identification number to said transferor.
31. A system in accordance with claim 25 wherein said input means
includes means for receiving a single encrypted code containing at
least a portion of said transferor account number and at least a
portion of said transferee account number.
32. A system in accordance with claim 31 wherein said single
encrypted code further includes said financial tender value to be
transferred from said transferor account to said transferee
account.
33. A system in accordance with claim 31 wherein said computer
controller includes means for generating said single encrypted
code.
34. A computer program product comprising: a computer usable medium
having computer readable code embodied therein for transferring
financial tender between credit card accounts, the computer usable
medium comprising: an input module configured to receive an
identifier for a transferor account and a transferee account, and
an identifier for a financial tender value to be transferred from
said transferor account to said transferee account; and a control
module for initiating the transfer of said financial tender value
from said transferor account to said transferee account.
35. A computer program product in accordance with claim 34, wherein
said control module includes: a debit module for initiating the
debiting of said transferor account by said financial tender value;
and a credit module for initiating the crediting of said transferee
account for said financial tender value.
36. A computer program product in accordance with claim 34, wherein
said computer usable medium further comprises a communication
module for communicating with issuing banks of said transferor and
transferee accounts.
37. A computer program product in accordance with claim 36 wherein
said input module includes: a receiver module for receiving a
transferor name and an identifier representing at least a portion
of a unique account number for said transferor account from said
transferee.
38. A computer program product in accordance with claim 34 wherein
said input module includes: a receiver module for receiving a
transferee identification number from said transferor; a receiver
module for receiving a transferor account number from said
transferor; and a receiver module for receiving said financial
tender value from said transferor.
39. A computer program product in accordance with claim 34 wherein
said input module includes: a receiver module for receiving a
transferor identification number from said transferee; a receiver
module for receiving a transferee account number from said
transferee; and a receiver module for receiving said financial
tender value from said transferee.
40. A method for transferring financial tender between credit card
accounts, said method comprising the steps of: identifying a
transferor and a transferee account; issuing a transferee
identification number based on said transferee account; identifying
a financial tender value to be transferred from said transferor
account to said transferee account; and transferring said financial
tender value from said transferor account to said transferee
account using said transferee identification number and said
transferor account.
41. A method in accordance with claim 40, wherein said step of
transferring said financial tender value includes the substep of:
receiving said transferee identification number, said transferor
account, and said financial tender value from an owner of said
transferor account.
42. A method in accordance with claim 40, wherein the step of
transferring said financial tender value includes the substep of:
verifying said transferee identification number against said
transferee account.
43. A method for transferring financial tender between credit card
accounts, said method comprising the steps of: identifying a
transferor account and a transferee account; issuing a transferor
identification number based on said transferor account; identifying
a financial tender value to be transferred from said transferor
account to said transferee account; and transferring said financial
tender value from said transferor account to said transferee
account using said transferor identification number and said
transferee account.
44. A method in accordance with claim 43, wherein said step of
transferring said financial tender value includes the substep of:
receiving said transferor identification number, said transferee
account, and said financial tender value from an owner of said
transferee account.
45. A method in accordance with claim 43, wherein said step of
transferring said financial tender value includes the substep of:
matching the transferor identification number with said transferor
account.
46. A method for transferring financial tender between credit card
accounts, said method comprising the steps of: identifying a
transferor account and a portion of a transferee account number
corresponding to a transferee account; identifying a financial
tender value to be transferred from said transferor account to said
transferee account; issuing an encrypted identification number
based on said transferor account, said portion of a transferee
account number, and said financial tender value; identifying said
transferee account; and transferring said financial tender value
from said transferor account to said transferee account using said
encrypted identification number and said transferee account.
47. A method in accordance with claim 46, wherein said step of
transferring said financial tender value includes the substep of:
receiving said encrypted identification number and said transferee
account from an owner of said transferee account.
48. A method in accordance with claim 46, wherein said step of
transferring said financial tender value includes the substeps of:
decrypting said encrypted identification number; and verifying
decrypted information of said encrypted identification number based
on a comparison of said portion of a transferee account number
against a complete transferee account number corresponding to said
transferee account.
49. A method of transferring financial tender between credit
accounts, comprising the steps of: identifying a first credit
account having a first owner and a first credit limit; identifying
a second credit account having a second owner and a second credit
limit; identifying a financial tender value, consisting of a
portion of said first credit limit, for transfer to said second
credit account; and increasing said second credit account by said
financial tender value.
50. A method in accordance with claim 49, wherein said step of
identifying a financial tender value includes the substep of
receiving an authorization code identifying said financial tender
value.
51. A method in accordance with claim 50, further comprising the
steps of: receiving from said first owner information identifying
said first credit account, said second credit account, and said
financial tender value; generating said authorization code; and
providing said authorization code to said first owner.
52. A method in accordance with claim 49, further comprising the
step of: decreasing said first credit limit by said financial
tender value transferred to said second credit account.
53. A method in accordance with claim 49, further comprising the
step of: maintaining an electronic record indicating that the debt
obligation for financial tender value transferred to said second
credit card account is maintained by said first owner.
54. A method in accordance with claim 49, wherein said first credit
account and said second credit account each comprise a respective
credit card account.
55. A method in accordance with claim 54, wherein said first credit
account and said second credit card account each comprise a
respective revolving credit card account.
56. A method of transferring financial tender value between credit
accounts, comprising the steps of: identifying a first credit
account having a first owner and a first credit limit; identifying
a second credit account having a second owner and a second credit
limit; identifying a financial tender value, consisting of a
portion of said first credit limit, for transfer to said second
credit account; initiating the transfer of said financial tender
value to said second credit account; and maintaining the debt
obligation with said first owner for said first portion of said
first credit limit transferred to said second credit account.
57. A method in accordance with claim 56, wherein said step of
initiating the transfer includes the substep of: providing an
authorization code to an issuer of said first credit account.
58. A method of increasing an established line of credit,
comprising the steps of: identifying a first credit account having
a first owner and a first credit limit; identifying a second credit
account having a second owner and a second credit limit; and
receiving from said first credit account a financial tender value,
consisting of a portion of said first credit limit, added to said
second credit limit, the debt obligation for said financial tender
value remaining with said first owner.
59. A method in accordance with claim 58, further comprising the
step of: using said financial tender value in a transaction.
60. A method in accordance with claim 58, further comprising the
step of: initiating the transfer of said financial tender value to
said second credit account
61. A method in accordance with claim 60, wherein the step of
initiating the transfer includes the substep of: providing an
authorization code to an issuer of said first credit account.
62. A method of transferring financial tender value between credit
accounts, comprising the steps of: identifying a first credit
account having a first owner and a first credit limit; identifying
a financial tender value, consisting of a portion of said first
credit limit, for transfer to said second credit account; and
issuing an encrypted code based on said first credit account and
said financial tender value; identifying a second credit account
having a second owner and a second credit limit; and increasing
said second credit account by said financial tender value using the
encrypted code.
63. A method of transferring financial tender value between credit
accounts, comprising the steps of: identifying a first credit
account having a first owner and a first credit limit; identifying
a portion of a second credit account number of a second credit
account having a second owner and a second credit limit;
identifying a financial tender value, consisting of a portion of
said first credit limit, for transfer to said second credit
account; and increasing said second credit account by said
financial tender value using said first credit account and said
portion of a second credit account number of said second credit
account.
Description
BACKGROUND OF THE INVENTION
[0001] A. Field of the Invention
[0002] The present invention relates generally to the field of
funds and/or credit line transfers and, more particularly, to funds
and/or credit line transfers between credit card accounts.
[0003] B. Description of the Related Art
[0004] People exchange money using a variety of methods. For
example, in lieu of paying cash for goods and services, people
often choose to pay for such purchases using credit cards or
checks. In a typical credit card transaction, a merchant calculates
the amount of a purchase and asks the buyer for payment. The buyer
then presents the merchant with a credit card. The merchant runs
the credit card through a point of sale unit with the amount of the
sale either entered either manually or automatically by a cash
register. Once entered, the merchant's acquiring bank, or credit
card processor, receives the credit card data and sales amount with
a request for authorization of the sale. The credit card data
includes the credit card number, which identifies the type of card,
the issuing bank, and the cardholder's account.
[0005] After processing the transaction, the acquiring bank routes
an authorization request to the buyer's credit card issuing bank.
If the cardholder has enough credit to cover the sale, the issuing
bank authorizes the transaction and generates an authorization
code. The issuing bank sends this code to the acquiring bank and
puts a hold on the cardholder's account for the amount of the sale.
Based on the code received from the issuing bank, the acquiring
bank sends an approval or denial code to the merchant's point of
sale unit, which has a separate terminal identification number to
enable credit card processors to route data back to the particular
unit. The point of sale unit or cash register then prints out a
sales draft or slip to be signed by the buyer, which obligates the
buyer to reimburse the card-issuing bank for the amount of the
sale.
[0006] At a later time, generally the end of the day, the merchant
reviews all authorizations stored in the point of sale unit against
the signed sales drafts. When all the credit card authorizations
have been verified to match all the actual sales drafts, the
merchant captures, or transmits, the data on each authorized credit
card transaction to the acquiring bank for deposit. This action is
in lieu of depositing the actual signed paper drafts with the
bank.
[0007] The acquiring bank performs an interchange for each sales
draft with the appropriate card-issuing bank. The card-issuing bank
transfers the amount of the sales draft to the acquiring bank,
minus an interchange fee, which is typically between 2-4% of the
transaction value. The acquiring bank then deposits the amount of
all the sales drafts submitted by the merchant, less a discount
fee, into the merchant's bank account.
[0008] To confirm validity of a credit card, the issuing bank
reviews the credit card account number using a checksum algorithm
that prevents others from creating valid account numbers. For
example, a standard Visa or MasterCard account number is 16 digits
and the algorithm reduces the probability of someone fraudulently
creating a valid number to approximately 1 in 500,000.
[0009] Due to the perceived risk of fraud and the potential for
monetary loss, most consumers prefer not to provide credit card
account numbers to another person, particularly when the consumer
has no way of knowing the identity or trustworthiness of the
recipient of this information. Many consumers thus hesitate to use
a credit card for telephone orders, such as catalog orders, for
fear that some catalog company operators may misuse their card
number.
[0010] Credit card institutions also offer so-called "convenience
checks." Convenience checks can be used to purchase goods and
services in the same manner as a conventional check, except that
the convenience check clears against the cardholder's available
credit line. The convenience check amount is generally recorded as
a cash advance on the cardholder's monthly billing statement.
[0011] Credit cards today have become a pervasive method of payment
for goods and services. They not only offer convenience, security,
and flexibility in the commercial transaction process, but also
provide some limited flexibility in the assignment of debt
obligation. For example, it is well known in the art that credit
card holders are free to transfer debt between accounts, thereby
taking advantage of different account features, such as lower
interest rates. Such transfers are typically done by paying off the
old account with a convenience check or electronic funds transfer,
which draws the old account balance onto the new credit card
account.
[0012] Credit card companies also offer limited-use credit cards
that permit employees to charge debt against a company account. For
example, when relocating employees, some companies pay relocation
expenses by issuing a credit card on the company's account with a
predetermined credit limit for the card. The employee may use the
card for purchases and cash advances up to the limit. The
corporation maintains liability for the account debt, thus
essentially taking the responsibility of paying the relocation
expenses.
[0013] Credit card companies also offer co-signed accounts and
accounts with multiple, or supplemental, cards. With co-signed
accounts, a co-signer assumes direct liability for any credit card
debt reneged on by the principal cardholder. Supplemental card
systems permit a principal account owner to provide cards issued on
the same account to other family members. The principal account
owner maintains liability for all debt accrued by the other users.
Similar to supplemental cards, corporate cards provide employees
with access to a corporate credit line and the corporation
maintains liability for all debt accrued by the employees.
[0014] For the limited-use, co-signed, supplemental, and corporate
credit card accounts, unused available credit line represents a
level of risk exposure by the party liable for the debt. For
example, available credit could be misused by the employee or by a
thief if the card is lost or stolen. In fact, many corporate cards
have higher risk exposure than consumer cards, in part because many
state and federal laws limiting liability apply to consumer-issued
cards, but not to corporate-issued cards.
[0015] Besides credit cards, another widely-used payment method
involves the use of personal checks. Consumers use personal checks
to settle debts, pay bills, or make a variety of purchases. In
general, banks issue personal checks to consumers following the
establishment of an account with the bank. The bank, however,
typically requires that consumers have sufficient funds in their
accounts to cover all payments made using personal checks.
[0016] Banks also provide consumers with the option of using
"certified checks" or "bank checks" as a payment method. With a
certified check, a bank prints special indicia on a personal check
that verifies that the bank has segregated sufficient funds in the
consumer's account to cover the value of the check. The bank will
not release those funds to anyone other than the check's presenter
except under narrow and defined circumstances, e.g., proof the
check was destroyed or lost. Certified checks provide the
transferee with a high degree of confidence that the check can be
cashed for the value stated on its face.
[0017] Bank checks are drawn on the bank's own account instead of a
consumer's account. It is made out to a transferee specified by the
party who paid the bank in advance for the value of the check.
Unlike certified checks that are returned to the transferor after
being cashed, bank checks are returned to the bank because they are
drawn on the bank's own account. Bank checks can be used, for
example, when the issuing party does not want to reveal his
identity, or when the receiving party wants to minimize the chance
of revocability.
[0018] Another method of transferring money involves the use of
money orders. A money order is very similar to a bank check except
that it is issued by a non-bank party such as a post office.
Alternatively, people transfer funds by "wiring" money. To wire
money, a consumer pays a fee and prepays a third-party to instruct
a distant party to disburse an amount of money (usually cash) to a
specified person. Electronic funds transfer (EFT) offers yet
another method for parties to transfer money. EFT involves securely
moving money from one account directly to another
electronically.
[0019] These methods for exchanging or transferring money suffer
from a number of shortcomings. For instance, not one of these
conventional methods permits a direct exchange of credit where the
credit card of the transferor is debited while the credit card of
the transferee is credited in settlement of the transferor's debt
to the transferee.
[0020] Even if the transferor uses a convenience check in
settlement of the debt, the non-merchant transferee has no way to
know whether the transferor has sufficient credit available to
cover the value of the check. Also, even if the transferee could
know that sufficient credit was available at the time the check was
presented, the available credit could be fully or partially used by
the transferor before the check is processed.
[0021] Another shortcoming of conventional payment schemes is that,
except for cash, there is no way for one person to pay another
person so that the transferee is able to use the value transferred
without first processing the transfer instrument by, for example,
depositing the instrument with a bank or converting it into cash.
In other words, the recipient of a check must convert the check
into cash or deposit the check in a bank account before withdrawing
cash or writing checks against the transferred value.
[0022] There are some narrowly usable instruments such as gift
certificates or casino chips which are bearer instruments of value,
and thus do not require conversion prior to use. These instruments,
however, are denominated in specified amounts and are not widely
usable like cash or a credit card. This same limitation holds true
for bank checks, certified checks and money orders. Only wiring
money to another party allows the recipient to receive cash
immediately, though he must first travel to a location where an
agent of the wiring process is available to disburse funds.
[0023] Another shortcoming, particularly with respect to credit
cards, is that a cardholder's unused credit line has no resalable
value. In a strict financial sense, unused credit capacity is an
economic asset (borrowing capability) that has value, particularly
if the unused money is below current market rates. For example, if
a consumer has a $5,000 credit line on his credit card at an
introductory rate of 6%, the consumer might desire to use $1,000 of
the line himself and use the other $4,000 of the line to relend to
another borrower at an interest rate higher than 6%, keeping the
interest rate differential as a profit. However, currently there is
no way for a cardholder to use his unused credit line as a revenue
generating asset because the credit line is irrevocably assigned to
a given card and cannot be transferred in any way.
[0024] In addition, with respect to limited-use, co-signed,
supplemental, and corporate credit card accounts, there is no way
for the party liable for the debt, such as a company, to enable a
cardholder, such as an employee, to increase or decrease credit
available on a given credit card as needed and authorized by the
company. Also, there is no way for an individual to assign part of
his available credit line to another card for specific reasons
SUMMARY OF THE INVENTION
[0025] Systems consistent with the present invention allow a
transferor to transfer credit or make payment to a transferee by
debiting the credit card of the transferor and crediting the credit
card of the transferee. Payment of a financial tender value, such
as funds and partial credit lines, in an amount of value up to the
available credit line of the transferor can be transferred to the
transferee. The transfer of the financial tender value permits the
transferee to access the transferred money or credit line
immediately after the completion of the transfer. Neither party
needs to give their complete credit card number to the other, so
security is preserved. Prior to a transfer of a financial tender
value, the validity of the transferor's credit card and the
availability of sufficient credit is confirmed. The system thus
provides a great deal of convenience to parties and enables a
transferor and transferee to make a transfer of financial tender in
lieu of checks.
[0026] Systems consistent with the present invention benefit card
issuers by facilitating increased card usage through providing
further opportunities for parties to use their credit cards. In
addition, credit card issuers will benefit from increased charge
volume at a reduced risk, and potentially from fees for providing
the transfer service as well.
[0027] The following description, as well as the practice of the
invention, set forth and suggest additional advantages and purposes
of this invention. The elements and combinations set forth in the
claims achieve these advantages and purposes.
[0028] To obtain the advantages and in accordance with the purpose
of the invention, as embodied and broadly described herein, a
method for transferring credit between multiple credit card
accounts comprises the steps of: identifying a transferor credit
card account; identifying a transferee credit card account;
identifying a financial tender value to be transferred from said
transferor credit card account to said transferee credit card
account; and initiating the transfer of said financial tender value
from said transferor credit card account to said transferee credit
card account.
[0029] Both the foregoing general description and the following
detailed description provide examples and explanations only. They
do not restrict the claimed invention.
DESCRIPTION OF THE DRAWINGS
[0030] The accompanying drawings, which are incorporated in and
constitute a part of this specification, illustrate embodiments of
the invention and, together with the description, explain the
advantages and principles of the invention. In the drawings,
[0031] FIG. 1 is a block diagram of an implementation of a
financial tender value transferring system consistent with the
present invention;
[0032] FIG. 2 is a block diagram of a central controller;
[0033] FIG. 3 is a block diagram of a credit card issuer
controller;
[0034] FIG. 4 is a table representing a customer database;
[0035] FIG. 5 is a table representing a transaction database;
[0036] FIG. 6 is a table representing a customer account
database;
[0037] FIG. 7 is a table representing a financial tender transfer
database;
[0038] FIGS. 8A and 8B are flowcharts representing the operation of
the financial tender value transferring system of FIG. 1;
[0039] FIG. 9 is a block diagram of another implementation of a
financial tender value transferring system consistent with the
present invention;
[0040] FIGS. 10A and 10B are flowcharts representing the operation
of the financial tender value transferring system of FIG. 9;
[0041] FIG. 11 is a block diagram of another implementation of a
financial tender value transferring system consistent with the
present invention;
[0042] FIGS. 12A and 12B are flowcharts representing the operation
of the financial tender value transferring system of FIG. 11;
[0043] FIG. 13 is a block diagram of another implementation of a
financial tender value transferring system consistent with the
present invention;
[0044] FIGS. 14A and 14B are flowcharts representing the operation
of the financial tender value transferring system of FIG. 13;
[0045] FIG. 15 is a block diagram of an implementation of a
financial tender value transferring system consistent with the
present invention;
[0046] FIG. 16 is a block diagram of another implementation of a
credit card issuer controller;
[0047] FIG. 17 is a table representing a customer account
database;
[0048] FIG. 18 is a table representing a transaction database;
[0049] FIG. 19 is a table representing a financial tender transfer
database;
[0050] FIGS. 20A and 20B are flowcharts representing the operation
of the financial tender value transferring system of FIG. 15;
[0051] FIG. 21 is a block diagram of another implementation of a
financial tender value transferring system consistent with the
present invention; and
[0052] FIGS. 22A, 22B, and 22C are flowcharts representing the
operation of the financial tender transferring system of FIG.
21.
DESCRIPTION OF THE PREFERRED IMPLEMENTATION
[0053] Reference will now be made to various embodiments according
to this invention, examples of which are shown in the accompanying
drawings and will be obvious from the description of the invention.
In the drawings, the same reference numbers represent the same or
similar elements in the different drawings whenever possible.
[0054] 1. Preferred Implementations for Funds Transfers
[0055] FIG. 1 is a block diagram of an implementation of a
financial tender transfer system 100 consistent with the present
invention. This implementation is particularly useful for executing
funds transfers, such as between a buyer and a seller of an item,
because, as described below, it provides a simple method for making
a payment. Financial tender transfer system 100 includes a
transferor 110, a transferee 120, a central controller 130, and
multiple credit card issuers 140. Financial tender includes funds
and/or credit lines. Thus, the transfer of financial tender can
refer to the transfer of funds, the transfer of credit, or
both.
[0056] In a funds transfer, transferor 110 is the buying or paying
party. Transferor 110 has his 10 credit card debited by a
particular transfer amount to make a purchase or pay off a debt.
The transfer amount appears as a conventional transaction entry,
with a corresponding transaction description of the purchase. The
transferor's available credit line decreases by the transfer
amount. Transferor 110 is liable to pay this amount as a
conventional charge. However, the original credit line on the card
remains the same.
[0057] Transferee 120 is the selling party, or the party getting
credit for payment of a debt of transferor 110. The transferee's
credit card account is credited for the payment by transferor 110
in essentially the same manner as a credit appears when merchandise
is returned. This credit can be used to offset other incurred
charges on transferee's account or can be withdrawn from the
account as cash at an Automated Teller Machine (ATM). The original
credit line remains the same, but the available credit line
increases in the same amount as the transfer amount. Credit card
issuers 140 issue credit cards and thus give credit to transferor
110 and transferee 120. Although FIG. 1 shows only three credit
card issuers, systems consistent with the present invention may be
implemented with at least one or more credit card issuers.
[0058] Central controller 130 is a credit card financial tender
transfer service to facilitate the transaction between transferor
110 and transferee 120. Central controller 130 controls the
transfer of financial tender from an account corresponding to the
credit card of transferor 110 to an account corresponding to the
credit card of transferee 120. This function may be performed by
the credit card issuing banks, a credit card processor linked to
the credit card issuing banks, a trusted clearing house for credit
card funds and/or credit line transfers, or any third party that
can access the credit card system to debit one credit card account
and credit another given account. Central controller 130 accesses
credit card issuers 140 to determine the validity of the credit
card accounts, confirm availability of credit, and debit and credit
the respective accounts.
[0059] FIG. 2 is a detailed block diagram of central controller
130. Central controller 130 includes a microprocessor or central
processing unit (CPU) 210 coupled to a random access memory (RAM)
215, a read only memory (ROM) 220, a clock 225, a communication
port 230, and a data storage device 245. Communication port 230
couples CPU 210 to a bank system interface 235. Bank system
interface 235 couples central controller 130 to credit card issuers
140 (not shown). An optional cryptographic processor 240, such as
the MC68HC16 manufactured by Motorola, generates an encrypted
identification (ID) number to provide for a secure transaction and
applies to implementations described below. Symmetric cryptography
is preferably employed. The use of cryptography provides a single
use transaction ID that incorporates a date and time into the ID,
that in turn guarantees a unique ID for every transaction. The
system prevents multiple uses of encrypted transaction IDs by only
allowing each unique ID to be used once. Data storage device 245
includes a customer database 250 and a transaction database
255.
[0060] FIG. 3 is a detailed block diagram of a credit card issuer
controller 300 employed by one of the credit card issuers 140.
Credit card issuer controller 300 includes a microprocessor or CPU
310 coupled to a RAM 315, a ROM 320, a clock 325, a communication
port 330, a cryptographic processor 340, and a data storage device
345. Communication port 330 couples CPU 310 to a central controller
interface 335. Central controller interface 335 couples credit card
issuer controller 300 to central controller 130 (not shown).
Optional cryptographic processor 340 generates the encrypted ID
number to provide for the secure transaction. Symmetric
cryptography is preferably employed. The use of cryptography
provides a single use transaction ID that incorporates a date and
time into the ID, that in turn guarantees a unique ID for every
transaction. The system prevents multiple uses of encrypted
transaction IDs by only allowing each unique ID to be used once.
Data storage device 345 includes a financial tender transfer
database 350 and customer account database 355.
[0061] FIG. 4 is a table illustrating an example of customer
database 250. Customer database 250 holds data for each customer
registered with central controller 130. The data for each customer
includes the customer's name, ID number, credit card type, full
credit card number, partial credit card number (last six digits or
portion of full number), expiration data, and bank ID number.
[0062] FIG. 5 is a table illustrating an example of transaction
database 255. Transaction database 255 retains information of each
transaction conducted through central controller 230. In
particular, the information held in transaction database 255
includes the transaction ID number, time and date of the received
transaction, transaction amount, transferor and transferee customer
ID numbers, transferor and transferee bank completion codes, and
time and date of the completed transaction.
[0063] FIG. 6 is a table illustrating an example of customer
account database 355. Customer account database 355 records
customer information for each credit card holder holding a credit
card from the particular credit card issuer 140. The customer
information held in credit card holder database 355 includes the
customer account number, the name of the customer, the customer's
address and phone number, the original credit line amount, and the
available credit line.
[0064] FIG. 7 is a table illustrating an example of financial
tender transfer database 350. This database holds information for
each transaction conducted by a particular credit card issuer 140.
The information held includes the transaction ID number, the time
and date of the transaction, transaction amount, transaction type,
and credit card number.
[0065] A. General Funds Transfers
[0066] FIGS. 8A and 8B are flowcharts of the steps employed by
financial tender transfer system 100 in accordance with the
implementation shown in FIG. 1. First, transferor 110 provides
transferee 120 the last 6 digits or a specified portion of his
credit card account number, his name as it appears on the card, and
the expiration date (step 810). Transferee 120 contacts central
controller 130 and navigates through a menu, which may be
implemented using an Interactive Voice Response Unit (IVRU), to
provide transaction information, including the amount to be
transferred, the credit card account data from transferor 110, and
credit card account information for transferee 120, including
credit card account number to be used, and expiration date of the
credit card of transferee 120 (step 815). Central controller 130
transmits the transaction information to credit card issuers 140
for transferor 110 and transferee 120 (step 820).
[0067] Credit card issuers 140 for transferor 110 and transferee
120, respectively, execute the transaction in the following steps.
First, each looks up the complete credit card information of
transferor 110 and transferee 120, respectively (step 825). The
credit card issuer 140 for transferor 110 determines whether the
partial credit card account number of transferor 110 obtained from
central controller 130 corresponds to the information available
within its customer account database 355 to correctly identify the
transferor's credit card account (step 830). If the information
does not match, the transaction is aborted (step 835). Credit card
issuer 140 for transferor 110 then verifies the validity of the
transferor credit card account (step 840) and aborts the
transaction if the transferor credit card account is invalid (step
845), and also confirms that sufficient credit is available in the
credit card account of transferor 110 (step 850) and aborts the
transaction if transferor 110 has insufficient credit (step 855).
Finally, credit card issuer 140 for transferee 120 checks the
validity of the credit card of transferee 120 (step 860) and aborts
the transaction if it is invalid (step 865).
[0068] If the conditions described above are met, credit card
issuers 140 for transferor 110 and transferee 120 debit the
transferor's credit card account and credit the transferee's credit
card account, respectively. In particular, transferor's available
credit line decreases by the transfer amount for which transferor
110 is liable to pay as a conventional charge. In addition, the
transfer amount appears as a credit in transferee's credit account
such that transferee's available credit line increases in the same
amount as the transfer amount. Each credit card issuer 140 also
reflects the result of the transaction in its respective financial
tender transfer database 350 (step 870). Credit card issuers 140
for transferor 110 and transferee 120 then send confirmations to
central controller 130 that the transaction has been executed (step
875). Central controller 130 subsequently sends a confirmation to
transferee 120 that the transaction has been executed (step 880).
Central controller 130 also updates transaction database 255 with
the transaction information.
[0069] This implementation provides a simple method for executing
the funds transfer between transferor 110 and transferee 120. In
particular, only one party needs to access central controller 130.
In addition, the transferee cannot repudiate the transaction
because the transaction is executed when transferee 120 contacts
central controller 130. For example, transferor 110 is required to
provide transferee 120 with a specified portion of transferor's
credit card number. Alternative implementations described below
provide additional security features.
[0070] B. Payment of Debt
[0071] FIG. 9 is a block diagram of another implementation of
financial tender transfer system 100 consistent with the invention.
This implementation is preferably practiced in cases where a
transferee is owed money by a transferor and provides enhanced
security features by eliminating the need for either party to
provide credit card information to the other party. As an
alternative to writing a check to the transferee, the transferor
settles his debt by receiving an identification number from the
transferee and calling, for example, a toll free number to access
central controller 130 to conduct the transaction described below
with reference to FIGS. 10A and 10B. Similar to FIG. 1, financial
tender transfer system 100 of FIG. 9 includes a transferor 110, a
transferee 120, a central controller 130, and multiple credit card
issuers 140.
[0072] FIGS. 10A and 10B are flowcharts of the steps employed by
financial tender transfer system 100 in accordance with the
implementation shown in FIG. 9. First, transferee 120 registers
with central controller 130 operated by a trusted third party by
providing it with relevant credit card information including the
transferee's name and the transferee's credit card number and
expiration date (step 1010). Central controller 130 records this
information in customer database 250 and issues a Transferee
Identification (ID) Number to transferee 120 (step 1015).
Transferee 120 then provides this Transferee ID Number to
transferor 110 (step 1020). After receiving the Transferee ID
Number, transferor 110 contacts central controller 130 and
navigates through a menu to provide transaction information,
including the amount to be transferred, the credit card account
information for transferor 110, including name, credit card number,
and expiration date, and the Transferee ID Number (step 1025).
[0073] Central controller 130 looks up and matches the transferee
credit card account information -with the Transferee ID Number in
customer database 250 (step 1030) and aborts the transaction if the
information fails to match (step 1035). Central controller 130 then
transmits the identified transferee credit card information along
with the above transferor credit card information and the
transaction information of transferor 110 and transferee 120 to
credit card issuers 140 for transferor 110 and transferee 120 (step
1040).
[0074] After receiving the information from central controller 130,
credit card issuers 140 for transferor 110 and transferee 120,
respectively, execute the transaction in the following steps.
First, credit card issuer 140 for transferor 110 verifies the
validity of the transferor's credit card account (step 1045) and
aborts the transaction if it is invalid (step 1050). Credit card
issuers 140 for transferor 110 also determines if transferor 110
has sufficient credit (step 1055) and aborts the transaction if
transferor 110 lacks sufficient credit (step 1060). Finally, credit
card issuer 140 for transferee 120 verifies the validity of the
transferee's credit card account (step 1065) and aborts the
transaction if it is invalid (step 1070).
[0075] Assuming the transaction is valid, credit card issuers 140
for transferor 110 and transferee 120 debit the transferor's credit
card account and credit the transferee's credit card account,
respectively. In particular, transferor's available credit line
decreases by the transfer amount for which transferor 110 is liable
to pay as a conventional charge. In addition, the transfer amount
appears as a credit in transferee's credit account such that
transferee's available credit line increases in the same amount as
the transfer amount. Each credit card issuer 140 also updates its
respective financial tender transfer database 350 to reflect the
completed transaction (step 1075). Credit card issuers 140 for
transferor 110 and transferee 120 then confirm the transaction with
central controller 130, which in turn sends a confirmation to
transferee 120 that the transaction has been executed (step 1080).
Central controller 130 also records the transaction information in
transaction database 255.
[0076] This implementation provides more security than the
implementation described in connection with FIG. 1. For example,
neither party needs to provide any portion of a credit card number
to the other party. Also, since transferor 110 executes the
transaction, transferee 120 will be unable to overcharge transferor
110 by transferring more than the agreed upon funds.
[0077] C. Purchase of Goods or Services
[0078] FIG. 11 is a block diagram of another implementation of
financial tender transfer system 100. This implementation is
preferably practiced in cases where transferor 110 is buying goods
or services from transferee 120 and also provides enhanced security
features by eliminating the need for either party to provide credit
card information to the other party. As an alternative to providing
a portion of credit card number to transferee 120, transferor 110
provides a Transferor ID Number to transferee 120 and transferee
120 contacts central controller 130 by, for example, calling a toll
free number, to conduct the transaction described below with
reference to FIGS. 12A and 12B. Like FIG. 1, financial tender
transfer system 100 of FIG. 11 includes a transferor 110, a
transferee, 120, a central controller 130, and a plurality of
credit card issuers 140.
[0079] FIGS. 12A and 12B are flowcharts of the steps employed by
financial tender transfer system 100 in accordance with the
implementation shown in FIG. 11. First, transferor 110 registers
with central controller 130 operated by a trusted third party by
providing it with relevant credit card information, including
transferor's name and transferor's credit card number and
expiration date (step 1210). Central controller 130 records this
information in customer database 250 and issues a Transferor
Identification Number (ID Number) to transferor 110 (step 1215).
Transferor 110 then provides transferee 120 with the Transferor ID
Number (step 1220). Transferee 120 subsequently contacts central
controller 130 and navigates through a menu to provide the
transaction information, including the amount to be transferred,
the Transferor ID Number, and the credit card account information
for transferee 120, including name, credit card number, and
expiration date (step 1225). Central controller 130 identifies and
matches the transferor credit card account information with the
transferor ID Number in customer database 250, and transmits the
identified transferor credit card information along with the above
transferee credit card information and the transaction information
of transferor 110 and transferee 120 to credit card issuers 140 for
transferor 110 and transferee 120 (step 1230).
[0080] After receiving the information from central controller 130,
credit card issuers 140 for transferor 110 and transferee 120,
respectively, execute the transaction in the following steps.
First, credit card issuer 140 for transferor 110 verifies the
validity of the transferor's credit card account (step 1235) and
aborts the transaction if it is invalid (step 1240). Credit card
issuer 140 for transferor 110 also determines if transferor 110 has
sufficient credit (step 1245) and aborts the transaction if
transferor 110 lacks sufficient credit (step 1250). Finally, credit
card issuer 140 for transferee 120 verifies the validity of the
transferee's credit card account (step 1255) and aborts the
transaction if it is invalid (step 1260).
[0081] Assuming the transaction is valid, credit card issuers 140
for transferor 110 and transferee 120 debit the transferor's credit
card account and credit the transferee's credit card account,
respectively. In particular, transferor's available credit line
decreases by the transfer amount for which transferor 110 is liable
to pay as a conventional charge. In addition, the transfer amount
appears as a credit in transferee's credit account such that
transferee's available credit line increases in the same amount as
the transfer amount. Each credit card issuer 140 also updates its
respective financial tender transfer database 350 to reflect the
completed transaction (step 1265). Credit card issuers 140 for
transferor 110 and transferee 120 then confirm the transaction with
central controller 130 (step 1270), which sends a confirmation to
transferee 120 that the transaction has been executed (step 1275).
Central controller 130 also updates transaction database 255 to
reflect the transaction. As explained above, this implementation
also provides more security than the implementation described in
connection with FIG. 1 since neither party provides any portion of
a credit card number to the other party.
[0082] D. Secure Transactions
[0083] FIG. 13 is a block diagram of another implementation of
financial tender transfer system 100. -This implementation is
preferably practiced for transactions between transferor 110 and
transferee 120 that require a high level of security because it
provides a cryptographically secure, non-reputable, authenticatable
credit card funds and/or credit line transfer from transferor 110
to transferee 120 via central controller 130. Like FIG. 1,
financial tender transfer system 100 of FIG. 13 includes a
transferor 110, a transferee 120, a central controller 130, and a
plurality of credit card issuers 140.
[0084] FIGS. 14A and 14B are flowcharts of the steps employed by
financial tender transfer system 100 in accordance with the
implementation shown in FIG. 13. First, transferee 120 provides
transferor 110 with the last 6 digits or some specified portion of
his credit card number, his name, and the name of transferee's
credit card issuer (step 1410). Transferor 110 registers the credit
card transaction to be effected with central controller 130
operated by a trusted third party by providing it with information
including transferor information, such as transferor's name,
transferor's credit card account number and expiration date,
transferee information, such as transferee's name and the last 6
digits of transferee's credit card account number, and the
transaction information, such as the amount to transfer. The date
and time of registration are also recorded by central controller
130 (step 1415). Central controller 130 records the transferor
information in customer database 250 and issues an encrypted
Identification Number (ID Number), to transferor 110 (step 1420).
This encrypted ID Number contains all the information provided to
central controller 130 including the date and time information. The
encrypted ID Number denotes the intention of transferor 110 to pay
the transfer amount to transferee 120. The ID Number is encrypted
by using a cryptographic key (issuer key) available to all issuers
participating in the system. Any conventional cryptography protocol
can be used. The practice of using cryptographic protocols to
ensure the authenticity of senders as well as the integrity of
messages is well known in the art and need not be described here in
detail. For reference, one of ordinary skill in the art may refer
to Bruce Schneier, Applied Cryptography, Protocols, Algorithms, And
Source Code In C, (2d Ed, John Wiley & Sons, Inc., 1996).
Alternatively, central controller 130 may issue a non-encrypted ID
Number that is preferably a pointer to all the information given to
central controller 130.
[0085] Transferor 110 provides transferee 120 with the encrypted ID
Number (step 1425). Transferee 120 then contacts central controller
130 and provides the encrypted ID Number and transferee's name and
transferee's full credit card account number (step 1430). Central
controller 130 decrypts the ID Number with the issuer key and
matches the decrypted name of transferee 120 and the last 6 digits
of transferee's credit card with information input by transferee
120 (step 1435). Central controller 130 then transmits the
identified transferee credit card information along with the above
transferor credit card information and the transaction information
of transferor 110 and transferee 120 to credit card issuers 140 for
transferor 110 and transferee 120 (step 1440).
[0086] After receiving the information from central controller 130,
credit card issuers 140 for transferor 110 and transferee 120,
respectively, execute the transaction in the following steps.
First, credit card issuer 140 for transferor 110 verifies the
validity of the transferor's credit card account (step 1445) and
aborts the transaction if it is invalid (step 1450). Credit card
issuer 140 for transferor 110 also determines if transferor 110 has
sufficient credit (step 1455) and aborts the 20 transaction if
transferor 110 lacks sufficient credit (step 1460). Finally, credit
card issuer 140 for transferor 120 verifies the validity of the
transferee's credit card account (step 1465) and aborts the
transaction if it is invalid (step 1470).
[0087] Assuming the transaction is valid, credit card issuers 140
for transferor 110 and transferee 120 debit the transferor's credit
card account and credit the transferee's credit card account, 25
respectively (step 1475). In particular, transferor's available
credit line decreases by the transfer amount for which transferor
110 is liable to pay as a conventional charge. In addition, the
transfer amount appears as a credit in transferee's credit account
such that transferee's available credit line increases in the same
amount as the transfer amount. Each credit card issuer 140 also
updates its respective financial tender transfer database 350 to
reflect the completed transaction. Credit card issuers 140 for
transferor 110 and transferee 120 then confirm the transaction with
central controller (step 1480), which sends a confirmation to
transferee 120 that the transaction has been executed (step 1485).
Central controller 130 also updates transaction database 255 to
reflect the completed transaction.
[0088] In this implementation, transferee 120 cannot misuse the
transferor's ID Number by repeating the transaction multiple times
because the Transferor ID Number is a single use, transaction
specific ID Number which incorporates the date, the time, and the
amount of the transaction. At the same time, transferor 110 cannot
repudiate intent to pay once transferor 110 gives the ID Number to
transferee 120. Hence, the transaction is limited to a one-time use
because the ID Number is a proxy for an authorization to transferee
120 to effect a deposit of the transaction amount into the
designated transferee credit card account. The ID Number is useful
only to transferee 120 because of the matching performed by central
controller 140. Hence, this is a secure transaction.
[0089] In any of the above implementations, transaction information
can also be exchanged via the -Internet. When the Internet is used,
transferee 120 or transferor 110 access central controller 130
through a web-site to input transaction information via a secure
Internet transmission protocol to enable financial tender
transactions, such as the transfer of funds and/or credit line
amounts, as described above. Information transaction between
central controller 130 and the issuing banks may be encrypted for
security. In all cases, any issuing bank can abort a transaction
because of the various verifications that are performed. The abort
transaction information is transmitted to central controller 130
which then transmits this information to the
transferee/transferor.
[0090] 2. Preferred Implementations for Credit Line Transfers
[0091] In addition to funds transfers for debiting and crediting a
transferor and transferee account, respectively, systems consistent
with the present invention can also execute credit line transfers.
In a credit line transfer, the transfer amount appears as a
conventional transaction entry in transferor's account, with a
transaction description stating "credit line transfer to
transferee's account." In contrast to a funds transfer,
transferor's available credit line and transferor's original credit
line decrease by the transfer amount. Transferor 110 may be charged
a service fee, but otherwise no charge is incurred.
[0092] The transfer amount is added to the original credit line of
transferee's account. Thus, the available credit line increases in
the same amount as the transfer amount. If transferee 120 defaults
or becomes bankrupt, transferee's credit card issuer can claim up
to the credit line transfer amount from transferor's credit card
issuer, who then claims the same from transferor 110. While the
credit line increases, there is no dollar credit applied as with
the funds transfer situation described above.
[0093] The credit line transfers will be for a certain dollar
amount and a specified time. After the specified time, the credit
line transferred will automatically revert to the original
transferor. When the transfer is made, transferee 120 has the
option to use the transferred credit line. Transferee's credit card
issuer can track the usage on the original authorized credit line
and the transferred credit line either jointly or separately and
reflect the same on a monthly billing statement to transferee
120.
[0094] A. Secure Transactions
[0095] FIG. 15 is a block diagram of an implementation of a
financial tender transfer system 1500 consistent with the
invention. This implementation is preferably practiced for credit
line transfers, as well as funds transfers, between transferor 110
and transferee 120 that require a high level of security because it
provides a cryptographically secure, non-repudiatable,
authenticatable credit line transfer from transferor 110 to
transferee 120. Financial tender transfer system 1500 includes a
transferor 1510, a transferee 1520, a transferor's credit card
issuer 1530, and transferee's credit card issuer 1540. In this
implementation, the functions of central controller 130 of
financial tender transfer system 100 are incorporated into both
transferor's credit card issuer 1530 and transferee's credit card
issuer 1540. As a result, the aforementioned functions performed by
central controller 130 are assumed by transferor's credit card
issuer 1530 and transferee's credit card issuer 1540, either solely
or in combination, depending on the steps used for conducting a
transfer of financial tender.
[0096] FIG. 16 is a detailed block diagram of a credit card issuer
controller 1600 employed by transferor's credit card issuer 1530
and transferee's credit card issuer 1540. Credit card issuer
controller 1600 includes a microprocessor or CPU 1610 coupled to a
RAM 1615, a ROM 1620, a clock 1625, a cryptographic processor 1630,
and a data storage device 1635. Cryptographic processor 1630
encrypts the ID number with the issuer key for the secure
transaction described above. Data storage device 1635 includes a
customer account database 1640, a transaction database 1645, and a
financial tender transfer database 1650.
[0097] FIG. 17 is a table illustrating an example of customer
accounts database 1640. Customer account database 1640 holds data
for each customer registered with credit card issuer controller
1600. The data for each customer includes the customer account
number, the customer's name, address, and phone number, the
original credit line, and the available credit line.
[0098] FIG. 18 is a table illustrating an example of a conventional
transaction database 1645. Transaction database 1645 retains
information of each transaction conducted through credit card
issuer controller 1600. In particular, the information in
transaction database 1645 includes the customer account number, the
date and time of the transaction, the transaction amount, the
merchant identification number, and the name of the merchant.
[0099] FIG. 19 is a table illustrating an example of financial
tender transfer database 1650. Financial tender transfer database
1650 records all information related to a credit line transfer to
or from a credit cardholder holding a credit card from the credit
card issuer associated with credit card issuer controller 1600. The
credit line transfer information in credit line transfer database
1650 includes the credit card number, the credit line transfer
amount, the authorization code, the completion code, the
corresponding account number for which the transferred credit line
is credited or debited, and the transaction type. A positive dollar
amount in the credit line transfer amount indicates an amount
credited to the customer account number, whereas a negative dollar
amount indicates an amount debited.
[0100] FIGS. 20A and 20B are flowcharts of the steps employed by
financial tender transfer system 1500 in accordance with the
implementation shown in FIG. 15. First, transferor 1510 initiates a
credit line transfer by providing credit line transfer information
to transferor's credit card issuer 1530 including the credit line
amount or financial tender value to be transferred, the name of
transferor 1510, the credit card account to transfer from, and the
expiration date of that credit card (step 2010). Transferor's
credit card issuer 1530 checks the validity of transferor's credit
card against customer account database 1640 (step 2015) and aborts
the transaction if it is invalid (step 2020). Transferor's credit
card issuer 1530 also determines if transferor 1510 has sufficient
credit available by checking against the available credit line in
customer account database 1640 (step 2025). If the credit is
insufficient, the transaction is aborted (step 2030).
[0101] Transferor's credit card issuer 1530 receives the credit
line transfer information and generates an encrypted code which
contains the credit line transfer information and issuer
identification information (step 2035), and may also include
transaction date and time information. This authorization code for
the credit line transfer is given to transferor 1510. Transferor
1510 provides this authorization code to transferee 1520 (step
2040), who in turn contacts transferee's credit card issuer 1540
and provides the encrypted authorization code and transferee's
credit card account number, name, and expiration date to execute
the credit line transfer (step 2045).
[0102] After receiving the information from transferee 1520,
transferee's credit card issuer 1540 decrypts the authorization
code with the issuer key (step 2050). The validity of the code is
determined by successful decryption. Transferee's credit card
issuer 1540, in addition to confirming the code's validity,
confirms the identification of transferor's issuing bank (step
2055) and aborts the transaction if the code is invalid (step
2060). If the authorization code is valid, transferee's credit card
issuer 1540 completes the credit line transfer by increasing
transferee's credit line by the amount specified in the decrypted
code and updating transferee's records in its financial tender
transfer database 1650 (step 2065). Transferee's credit card issuer
1540 then generates, stores, and transmits a credit line transfer
completion code to transferor's credit card issuer 1530 (step
2070). Lastly, transferor's credit card issuer 1530 decreases
transferor's credit limit and updates transferor's records in its
financial tender transfer database 1650 (step 2075).
[0103] In this implementation, like the implementation described in
connection with FIG. 13, transferee 1520 cannot misuse the
transferor's ID Number by repeating the transaction multiple times
because the Transferor ID Number, in this case, is a single use,
transaction specific encrypted code which incorporates transaction
specific information, such as the date and the time, and possibly
other information including, for example, the amount of the
transaction. The encrypted transaction ID that incorporates a date
and time guarantees a unique ID for every transaction. The system
prevents multiple uses of encrypted transaction IDs by only
allowing each unique ID to be used once. At the same time,
transferor 1510 cannot repudiate intent to transfer a credit line
amount once transferor 1510 gives the encrypted code to transferee
1520. The encrypted code is a proxy for an authorization to
transferee 1520 to effect a credit line transfer into the
designated transferee credit card account.
[0104] B. Sale of Unused Credit Line
[0105] FIG. 21 is a block diagram of another implementation of
financial tender transfer system 1500 consistent with the
invention. This implementation is preferably practiced in cases
where a transferor is selling his unused credit line because the
transferor is the party through which the transaction is executed.
In other words, a transferor transfers an unused credit line amount
to a transferee for a certain amount of consideration, but the
transferor retains responsibility for payment of any debt on the
unused credit line amount transferred. Similar to FIG. 15,
financial tender transfer system 1500 of FIG. 21 includes a
transferor 1510, a transferee, 1520, a transferor's credit card
issuer 1530, and transferee's credit card issuer 1540.
[0106] FIGS. 22A, 22B, and 22C are flowcharts of the steps employed
by financial tender transfer system 1500 in accordance with the
implementation shown in FIG. 21. First, transferee 1520 provides
transferor 1510 with the last 6 digits or some specified portion of
his credit card number, his issuing bank identification, and his
name (step 2210). Transferor 1510 then initiates the credit line
transfer by providing credit line transfer information to
transferor's credit card issuer 1530 including the financial tender
value to be transferred, the name of transferor 1510, the credit
card account to transfer from, the expiration date of that credit
card, the name of transferee 1520, the last 6 digits of the
transferee's credit card account, and the name of transferee's
credit card issuer 1540 (step 2215).
[0107] After receiving the credit line transfer information,
transferor's credit card issuer 1530 verifies the validity of the
transferor's credit card and availability of credit line against
customer account database 1640 (step 2220). First, transferor's
credit card issuer 1530 determines if transferor's credit card is
valid (step 2225) and aborts the transaction if it is not (step
2230). If valid, transferor's credit card issuer 1530 also
determines if transferor's credit card has sufficient credit
available (step 2235) and aborts the transaction if it is
insufficient (step 2240). If transferor's credit card is both valid
and has sufficient credit available, transferor's credit card
issuer 1530 generates a credit line transfer authorization code
(step 2245). Transferor's credit card issuer 1530 then transmits
the credit line transfer information to transferee's credit card
issuer 1540 along with the authorization code (step 2250).
[0108] Transferee's credit card issuer 1540 matches the received
last 6 digits or portion of the transferee's account number with
the actual account number in its customer account database 1640
(step 2255). Transferee's credit card issuer 1540 determines
whether to proceed with the transaction by matching the last 6
digits to the actual account number (step 2260). The transaction is
aborted if they do not match (step 2265). Otherwise, transferee's
credit card issuer 1540 completes the credit line transfer by
increasing the transferee's credit line by the amount specified and
by updating the transferee's records in its credit line transfer
database 1640 (step 2270). The transferee's credit card issuer 1540
also generates, stores, and transmits a credit line transfer
completion code to the transferor's credit card issuer 1530 (step
2275), who in turn decreases transferor's credit line and updates
its credit line transfer database 1650 (step 2280).
[0109] Conclusion
[0110] The financial tender transfer system according to this
invention allows a transferor to transfer credit or make payment to
a transferee by debiting the credit card of the transferor and
crediting the credit or debit card of the transferee. The financial
tender transfer system gives the transferee immediate access to the
transferred funds and/or credit line, ensures the transferor's
credit card is valid, and preserves security.
[0111] It will be apparent to those skilled in the art that various
modifications and variations can be made to disclosed embodiments
of the present invention without departing from the scope or spirit
of the invention. Other embodiments of the invention will be
apparent to those skilled in the art from consideration of the
specification and practice of the embodiments of the invention
disclosed herein. The specification and examples should be
considered exemplary, with the true scope and spirit of the
invention being indicated by the following claims and their full
range of equivalents.
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