U.S. patent application number 10/695561 was filed with the patent office on 2004-05-13 for third party debit card.
Invention is credited to Picciallo, Michael J..
Application Number | 20040093303 10/695561 |
Document ID | / |
Family ID | 25368862 |
Filed Date | 2004-05-13 |
United States Patent
Application |
20040093303 |
Kind Code |
A1 |
Picciallo, Michael J. |
May 13, 2004 |
Third party debit card
Abstract
Computer-based methods for transferring funds from a bank or
credit card account of a fund depositor to third party dependents
by creating a bank or credit card account for debit or credit card
access by a third party financially dependent upon a fund
depositor, from which funds may be transferred at the request of
the third party as a cash withdrawal or payment for goods or
services purchased by the third party; and limiting the amount of
funds in the bank or credit card account of the third party
dependent that may be withdrawn as cash or spent on at least one
class of goods or services in response to instructions from the
fund depositor.
Inventors: |
Picciallo, Michael J.;
(Bayville, NJ) |
Correspondence
Address: |
Synnestvedt & Lechner LLP
2600 Aramark Tower
1101 Market Street
Philadelphia
PA
19107-2950
US
|
Family ID: |
25368862 |
Appl. No.: |
10/695561 |
Filed: |
October 28, 2003 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10695561 |
Oct 28, 2003 |
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09461249 |
Dec 15, 1999 |
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09461249 |
Dec 15, 1999 |
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08876929 |
Jun 16, 1997 |
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6044360 |
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08876929 |
Jun 16, 1997 |
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08585173 |
Apr 16, 1996 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 20/10 20130101;
G06Q 20/405 20130101; G06Q 20/04 20130101; G06Q 20/355 20130101;
G06Q 20/341 20130101; G07F 7/1008 20130101; G06Q 20/385 20130101;
G06Q 20/227 20130101; G06Q 20/202 20130101 |
Class at
Publication: |
705/039 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A computer-based method for transferring funds from a bank or
credit card account of a fund depositor to third party dependents,
comprising: creating a bank or credit card account for debit or
credit card access by a third party financially dependent upon a
fund depositor, from which funds may be transferred at the request
of said third party as a cash withdrawal or payment for goods or
services purchased by said third party; and limiting the amount of
funds in said bank or credit card account of said third party
dependent that may be withdrawn as cash or spent on at least one
class of goods or services in response to instructions from said
fund depositor.
2. The method of claim 1, further comprising the step of
periodically and automatically transferring funds into said third
party account from said fund depositor account in response to
command instructions from said fund depositor.
3. The method of claim 1, further comprising the step of storing
information on fund transferees and corresponding payment amounts
for said third party account; and supplying to said fund depositor
through an output device said information on fund transferees and
corresponding payment amounts for said third party account.
4. The method of claim 1, wherein said fund depositor account and
said third party account are both in communication with an external
bank, credit card or atm network.
5. The method of claim 1, wherein said bank or credit card account
for said fund depositor is established for the transfer of funds to
said third party account.
6. The method of claim 1, further comprising the step of verifying
each transfer requested by said third party to determine whether
the goods or services to be purchased are authorized.
7. The method of claim 6, wherein said goods or services comprise
books, computer software, food, lodging or entertainment.
8. The method of claim 1, wherein said limit is a periodic limit on
the amount that can be spent on at least one class of goods or
services.
9. The method of claim 1, wherein the limit is a limit on the
transactional amount.
10. The method of claim 3, wherein said information on fund
transferees and corresponding payment amounts for said third party
account is automatically supplied to said fund depositor.
11. The method of claim 3, wherein said supplying step is performed
periodically.
12. The method of claim 3, wherein said information is supplied via
e-mail.
13. The method of claim 2, wherein said funds are transferred
weekly or monthly.
14. The method of claim 1, wherein said financially dependent third
party is a son or daughter of said fund depositor.
15. The method of claim 1, wherein said limiting step comprises
prohibiting any amount of funds to be withdrawn as cash or spent on
at least one class of goods or services.
16. The method of claim 15 wherein the withdrawal of cash or
spending on alcohol or tobacco is prohibited.
17. The method of claim 1, wherein a class of goods or services
that is limited is an individual payee.
Description
CROSS-REFERENCE TO RELATED APPLICATION
[0001] This application is a Continuation of U.S. patent
application Ser. No. 09/461,249 filed Dec. 15, 1999, which is a
Continuation of U.S. patent application Ser. No. 08/876,929 filed
Jun. 16, 1997, now U.S. Pat. No. 6,044,360, which in turn is a
Continuation-In-Part of U.S. patent application Ser. No. 08/585,173
filed Apr. 16, 1996. The disclosures of each application is
incorporated herein by reference.
BACKGROUND OF THE INVENTION
[0002] The present invention relates to systems for transferring
funds, such as periodic allowance payments, by an account holder
from a preestablished account to a third party recipient for the
funds designated by the account holder. In particular, the present
invention relates to systems for transferring funds in which the
account holder is provided with control over how the funds are
spent by the third party recipient.
[0003] ATM and debit card systems have gained wide acceptance as
means for performing currency transactions. In addition to
providing the ability to withdraw cash from a bank account or a
credit card line, it is now possible to pay for a point-of-sale
transaction with an electronic funds transfer. The computer
networks that support ATM and debit card systems make it possible
to design transactions that go beyond the conventional exchange of
cash for goods or services.
[0004] For example, U.S. Pat. No. 5,287,269 discloses a system that
uses a card similar to a debit card to control access within a
recreational facility such as an amusement park. The card replaces
the tickets or tokens conventionally used to control access to
amusement rides and arcade games. Thus, a parent may provide a
child with a pre-paid card encoded with sufficient credit to ensure
an enjoyable day of entertainment.
[0005] U.S. Pat. No. 5,321,241 discloses a system that uses a card
similar to a debit card to track the spending of casino promotional
funds by individual gamblers. The purpose of the card is to prevent
gamblers from spending promotional funds on food, or even in other
casinos, and to ensure that the promotional funds are only spent on
gambling within the issuing casino.
[0006] U.S. Pat. No. 5,350,906 discloses a debit card system in
which funds may be electronically transferred by an account holder
to a third party recipient by the issuance of a fixed currency
limit debit card to the recipient at his or her location. One
advantage to this system is that the recipient need not have a
preestablished ATM or debit card account with the issuing bank or
other institution. The system may be used by parents to issue
periodic allowance payments or spending money, for example, to a
son or daughter away at college in a distant city.
[0007] In each of the foregoing systems, however, the funds
transferor is not provided with control over how the money is spent
by the transferee, or provided with an accounting thereafter. For
example, the parent who buys their child the pre-paid card for
amusement park access of U.S. Pat. No. 5,287,269 has no way of
preventing the child from spending the entire card on video games
and cotton candy, or of even knowing later whether this has
happened.
[0008] The casino issuing the card of U.S. Pat. No. 5,321,241 may
be willing to allow a portion of the funds to be spent on food or
lodging if a limit could be established, and if it could later know
how much money was actually spent on gambling. It would also be
useful for the casino to know how the money was actually gambled
for purposes of including a gambler on more specific future
promotions, such as a slot machine promotion or a black jack
promotion.
[0009] A parent issuing the fixed currency limit debit card of U.S.
Pat. No. 5,350,906 to a son or daughter away at college has no way
to ensure that most of the funds are spent at the college bookstore
and not withdrawn as cash or spent on rounds of drinks at the local
pub. There is no way for the parent to know how the money was
actually spent.
[0010] A need exists for a system in which an account holder may
electronically transfer funds from a preestablished account to a
third party recipient with limits set on how the money may be spent
and then receive a subsequent accounting of how the money was
actually spent
SUMMARY OF THE INVENTION
[0011] This need is met by the present invention. It is an object
of the present invention to provide a system and a computer-based
method in which account holders may transfer funds from
preestablished accounts to third party recipients and then receive
an itemized statement of how the recipients spent the funds.
[0012] Another object of the invention is to provide a system and a
computer-based method in which account holders may transfer funds
from preestablished accounts to third party recipients and set
limits on the goods or services for which the funds are spent, or
on the amounts which may be spent for certain goods or
services.
[0013] Therefore, according to one aspect of the present invention,
a system is provided for use in transferring funds from
preestablished accounts by account holders to third party
recipients, including:
[0014] controller processor for processing data according to
command instructions and for creating customer account files, the
controller processor having a data storage device associated
therewith for storing file records of the amounts of funds
deposited by the account holders in the preestablished accounts,
each file containing a primary file into which the amount of funds
deposited is recorded, and a secondary file into which at least a
portion of the amount of the deposited funds may be transferred and
recorded by the controller processor in response to command
instructions issued by the account holder, wherein the amount of
the funds transferred to the secondary file may be electronically
transferred by the controller processor to payees selected by the
third party recipients in response to command instructions issued
by the third party recipients, and wherein the system further
includes a data storage device associated with the controller
processor for storing file records of information on each selected
payee of funds from the secondary file and the corresponding
payment amount;
[0015] at least one input device for supplying to the controller
processor command instructions from the account holders and third
party recipients; and
[0016] an output device for periodically supplying to each account
holder the file record containing information on each selected
payee of funds and corresponding payment amounts.
[0017] Preferred systems in accordance with this aspect of the
present invention also permit account holders to exclude certain
fund transfer payees designated individually or by the type of
establishment, or to establish periodic transaction limits by the
single transaction, day, week, month or so forth. In the preferred
systems, the controller processor is adapted to process command
instructions from the account holder to store in the data storage
device associated therewith information on electronic fund transfer
payees subject to periodic limits on the amount of funds that may
be transferred, and to inquire into each electronic fund transfer
command instruction issued by the third party recipient to
determine whether the payee is subject to a transaction limit below
the transfer amount requested, with the controller processor being
adapted to complete the electronic fund transfer when the payee is
not subject to a transaction limit below the amount requested, and
to discontinue the electronic fund transfer when the payee is
subject to a transaction limit below the amount requested.
[0018] The system of the present invention contemplates that the
third party recipients designated by account holders will be issued
magnetic cards to access the funds that have been set aside on
their behalf. The recipients can then withdraw the funds as cash
from ATM machines, or pay for point-of-sale purchases of goods and
services by electronic fund transfer. At the same time, the account
holder may limit how much of the funds that have been set aside may
be withdrawn as cash, or even block this entirely, with the
set-aside funds only being accessible by electronic funds
transfer.
[0019] Accordingly, preferred systems in accordance with the
present invention will further include a magnetic card encoded with
an identifier correlated to the secondary file of the
preestablished account and issued to the third party recipient.
When the magnetic card is issued to the son or daughter of an
account holder to access funds set aside as an allowance payment,
the card, in effect, becomes an allowance card. Under such
circumstances, the account holder may arrange for the transfer of
funds weekly or monthly from the primary file of the preestablished
account to the secondary file as a form of an allowance
payment.
[0020] Thus, parents making allowance payments to a son or a
daughter using the system of the present invention may limit the
amount of the payment that may be withdrawn from ATM machines as
cash. And, because banking and credit card institutions have
already created an identification system with electronic fund
transfer networks categorizing payees by the types of goods or
services they provide, limits can be placed on the amount that is
spent in restaurants daily, weekly or monthly using a debit card,
and spending in pubs or taverns could be prohibited entirely. When
ATM cash withdrawals are also blocked, spending of an allowance
budget on alcohol or tobacco may be effectively blocked by a
parent. At the same time, unlimited spending could be permitted,
for example, at computer software stores, or at a college book
store.
[0021] Similarly, a casino issuing promotional funds using the
system of the present invention may limit the amount of funds that
are spent on food, lodging or particular games of chance. At the
same time, unlimited spending on, for example, slot machines, could
be permitted.
[0022] But the primary advantage of the present invention is that
an itemized statement is issued to the account holder periodically,
i.e., weekly or monthly, providing an accounting of how the set
aside funds were spent. In the situation of a parent making an
allowance payment, a statement would be sent, similar to a bank or
credit card statement, listing ATM cash withdrawals, as well as
electronic fund transfer payees. A precise accounting would be
provided of how much of each allowance payment was withdrawn as
cash, how much was spent in identified restaurants, and how much
was spent on school supplies.
[0023] Nevertheless, the present invention also includes systems in
which such an accounting is not provided, with the primary
advantage being the ability to limit electronic fund transfer
payments to certain payees. According to this aspect of the present
invention, a system is provided for use in transferring funds from
preestablished accounts by account holders to third party
recipients, including:
[0024] controller processor for processing data according to
command instructions and for creating customer account files, the
controller processor having a data storage device associated
therewith for storing file records of the amounts of funds
deposited by the account holders in the preestablished accounts,
each file containing a primary file into which the amount of funds
deposited is recorded, and a secondary file into which at least a
portion of the amount of the deposited funds may be transferred and
recorded by the controller processor in response to command
instructions issued by the account holder, wherein the amount of
the funds transferred to the secondary file may be electronically
transferred by the controller processor to payees selected by the
third party recipients in response to command instructions issued
by the third party recipients, and wherein the system further
includes a data storage device associated with the controller
processor for storing file records of information on each selected
payee of funds from the secondary file and the corresponding
payment amount and wherein the controller processor is adapted to
process command instructions from the account holder to store in
the data storage device associated therewith information on
electronic fund transfer payees subject to periodic limits on the
amount of funds that may be transferred; and
[0025] at least one input device for supplying to the controller
processor command instructions from the account holders and third
party recipients;
[0026] wherein the controller processor is adapted to inquire into
each electronic fund transfer command instruction issued by the
third party recipient to determine whether the payee is subject to
a transaction limit below the transfer amount requested, to
complete the electronic fund transfer when the payee is not subject
to a transaction limit below the amount requested, and to
discontinue the electronic fund transfer when the payee is subject
to a transaction limit below the amount requested.
[0027] The present invention also includes systems in which the
account holder is also essentially the "bank," such as, for
example, when a casino issues promotional funds to a gambler but
restricts how such funds may be used. According to this aspect of
the present invention, a system is provided for providing
promotional funds for use by customers, including:
[0028] controller processor for processing data according to
command instructions and for creating customer account files, the
controller processor having a data storage device associated
therewith for storing file records of the amounts of funds issued
to customers, wherein the promotional funds may be electronically
transferred by the controller processor to payees selected by the
customers in response to command instructions issued by the
customers, and wherein the system further includes a data storage
device associated with the controller processor for storing file
records of information on each selected payee of funds and the
corresponding payment amount and wherein the controller processor
is adapted to process command instructions to store in the data
storage device associated therewith information for each customer
on electronic fund transfer payees subject to periodic limits on
the amount of funds that may be transferred; and
[0029] at least one input devices for supplying to the controller
processor command instructions from customers;
[0030] wherein the controller processor is adapted to inquire into
each electronic fund transfer command instruction issued by
customers to determine whether the payee is subject to a
transaction limit below the transfer amount requested, to complete
the electronic fund transfer when the payee is not subject to a
transaction limit below the amount requested, and to discontinue
the electronic fund transfer when the payee is subject to a
transaction limit below the amount requested.
[0031] In the example of the casino given above, payees selected by
customers may include a casino restaurant, hotel, souvenir shop,
slot machine, black jack table, and the like. The system of the
present invention permits a casino to retain control over how
promotional funds given to a customer are allocated and spent.
[0032] According to another aspect of the present invention,
computer-based methods for operating the systems of the present
invention are provided. Methods in accordance with this aspect of
the present invention include the steps of:
[0033] creating a customer account file including a primary file
containing a record of funds deposited by an account holder;
[0034] establishing a secondary file in the customer account file
in response to command instructions from the account holder;
[0035] designating a third party recipient permitted access to the
secondary file in response to command instructions from the account
holder;
[0036] transferring to the secondary file in response to command
instructions from the account holder at least a portion of the
record of funds contained in the primary file representing
deposited funds accessible to the third party recipient;
[0037] storing a file record of information on every electronic
fund transfer executed by the third party recipient from the
secondary file, including information on the transfer payee and the
corresponding payment amount; and
[0038] providing periodically to the account holder an itemized
statement generated from the file record of executed electronic
fund transfers from the secondary file.
[0039] Preferred methods according to this embodiment of the
invention provide for the establishment of limits in the amounts of
transactions. Such preferred methods further include the steps of
designating in response to command instructions from the account
holder, payees of funds to be withdrawn by third party recipient
subject to a limit on the amount of funds that may be withdrawn,
and verifying each withdrawal from the secondary file requested by
the third party recipient to determine whether it is subject to a
limit in the amount of the transaction, and whether that limit has
been exceeded. The method will further include the step sending a
disapproval signal if there is a limit that is exceeded, and may
optionally include the step of sending an approval signal if there
is no limit, or if there is a limit that has not been exceeded.
[0040] This aspect of the present invention also includes methods
which provide for the establishment of limits in the amounts of
transactions without generating an itemized statement to the
account holder of withdrawals by the third party recipient. Methods
according to this embodiment of the invention include the steps
of:
[0041] creating a customer account file including a primary file
containing a record of funds deposited by an account holder;
[0042] establishing a secondary file in the customer account file
in response to command instructions from the account holder;
[0043] designating a third party recipient permitted access to the
secondary file in response to command instructions from the account
holder;
[0044] transferring to the secondary file in response to command
instructions from the account holder at least a portion of the
record of funds contained in the primary file representing
deposited funds accessible to the third party recipient;
[0045] designating in response to command instructions from the
account holder, payees of funds to be withdrawn by third party
recipient subject to a limit on the amount of funds that may be
withdrawn; and
[0046] verifying each withdrawal from the secondary file requested
by the third party recipient to determine whether it is subject to
a limit in the amount of the transaction, and whether that limit
has been exceeded.
[0047] This method will also further include the step sending a
disapproval signal if there is a limit that is exceeded, and may
optionally include the step of sending an approval signal if there
is no limit, or if there is a limit that has not been exceeded.
[0048] This aspect of the present invention will also include
computer-based methods in which the account holder essentially
functions as a "bank." Methods in accordance with this aspect of
the present invention will include the steps of:
[0049] providing a customer account file containing a record of
funds issued to customers;
[0050] designating payees of funds to be withdrawn by customers
subject to a limit on the amount of funds that may be withdrawn;
and
[0051] verifying each withdrawal from the customer account file
requested by customers to determine whether it is subject to a
limit in the amount of the transaction, and whether that limit has
been exceeded.
[0052] This method will also further include the step sending a
disapproval signal if there is a limit that is exceeded, and may
optionally include the step of sending an approval signal if there
is no limit, or if there is a limit that has not been exceeded.
[0053] The system of the present invention is not limited to
preestablished currency accounts at banking institutions, but also
includes credit accounts, within which the account holders may
establish a sub-line of credit that may be drawn against by a third
party recipient. Thus, for purposes of the present invention, the
term "funds" is defined as including credit lines extended to
account holders and third party recipients, as well as currency
deposited by account holders, The account holder may require the
third party recipient to repay the drawn credit, and the account
may thus be employed to control a young person's use of credit, but
at the same time teach them how to use the credit responsibly.
[0054] The system of the present invention thus provides a tool for
a wage earner to provide spending money to a dependent, and at the
same time teach the dependent how to budget their money and manage
cash flow, while maintaining some control over how the money is
spent. Initially, the limits on the types of purchases may be
employed as guidance with respect to the appropriateness of
purchases, and to discipline the dependent to control their
spending habits.
[0055] Other features of the present invention will be pointed out
in the following description and claims, which disclose the
principles of the present invention and the best modes which are
presently contemplated for carrying them out.
BRIEF DESCRIPTION OF THE DRAWINGS
[0056] FIG. 1 is a block diagram of the representative system
hardware of the present invention; and
[0057] FIG. 2 is a flow chart showing the operation of the system
of the present invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
[0058] Referring now to the drawings, and initially FIG. 1, the
system of the present invention is comprised of a computer
processor 12, herein referred to as a controller processor, coupled
to a data storage device 14 such as a memory device and in
communication through phone line 15 with at least one input device
16 through which fund transfer command instructions are received
and through phone line 17 with at least one output device 18
through which electronic fund transfers are executed. The
embodiment depicted in FIG. 1 also includes output device 20 for
generating a file record containing information on electronic fund
transfer payees, which is described in greater detail
hereinafter.
[0059] The system may be a local, entirely self-contained internal
network of input and output devices under the absolute control of
the system operator, as would be the case when the system is
employed by a casino or an amusement park. Alternatively, the
system may be in communication with an external network of input
and output devices, such as a banking, credit or ATM network.
[0060] The controller processor of the present invention can be
essentially any mainframe computer processor or plurality of
processors, or any computer workstation capable of interfacing with
the network to be employed and executing the volume of command
instructions supplied by the network. The control programs to be
run by the controller processor for operating the system of the
present invention are essentially conventional, once the objectives
of the present invention are described.
[0061] The data storage devices associated with the controller
processor can be essentially any conventional memory storage
device, typically a semi-conductor memory in combination with a
hard disk drive or a CD-ROM drive with a compact disk. The memory
device is employed to store information on the preestablished
accounts from which account holders transfer funds to third party
recipients. It will be assumed for purposes of the present
invention that the system operators have methods of establishing
accounts and placing money or establishing credit lines within
these accounts and that proper accounting procedures are in place
to track the various transactions, all of which are standard in the
industry and well known to those skilled in the art.
[0062] For local self-contained systems, the controller processor
is in communication with the internal network of input and output
devices through cables or telecommunication lines. When the system
is in communication with an external network, telecommunication
lines are nearly exclusively employed.
[0063] Essentially any input device capable of supplying command
instructions to the controller processor from account holders and
third party recipients is suitable for use as an input device for
the present invention. For purposes of the present invention,
command instructions will be considered to be issued by an account
holder or a third party recipient if the instructions are issued by
another individual on their behalf. For example, a bank employee
may issue command instructions requested by an account holder to
transfer funds for access by the third party recipient. A store
employee may issue command instructions requested by the third
party recipient to obtain an electronic fund transfer to pay for
goods and services in a point-of-sale purchase.
[0064] External banking, credit and ATM networks have already been
established using as combination input/output devices stations that
employ magnetic card readers in combination with manual input
devices such as keypads, touch screens and the like, through which
information required for the transaction may be entered, such as
the transaction amount, account password, and so forth. One example
of such a station is an ATM. Another example is the magnetic card
reader/keypad employed for point-of-sale transactions to obtain
bank approval of credit card and debit card transactions. Such
stations also serve as output devices for the systems that they
serve. The ATM is adapted to deliver cash, print a receipt and
relay messages from the network processor via a CRT. The magnetic
card reader relays messages from the network processor via an LCD,
and is also adapted to print a receipt. When the system of the
present invention is adapted to communicate with such an external
network, the fund transfer command instructions may be issued by
the third party recipients through such input devices, which will
also function as output devices for the system, delivering cash,
relaying messages from the controller processor and printing
receipts.
[0065] Otherwise, essentially any conventional manual input device
may be employed, particularly with local, internally self-contained
systems in accordance with the present invention. Such devices
include keypads, touch screens, mouse and cursor systems, and the
like. It is not essential that magnetically encoded cards and
magnetic card readers be employed.
[0066] Likewise, any device capable of relaying messages from the
controller processor to the account holder or third party recipient
is also suitable for use as an output device with systems of the
present invention.
[0067] Examples of devices include CRT's, LCD's, printers, and the
like. In the simplest of local, internally self-contained systems,
the machine vending of cash and printing of receipts is not
contemplated. Instead, an employee of the system operator would
attend to such tasks, receiving prompts from the controller
processor through an output display device.
[0068] A particular advantage of the present invention is that the
account holder is provided with a periodic accounting of how the
third party recipient of funds has spent the money accessible to
them This would be in the form of a statement issued daily, weeldy,
monthly, and the like, detailing cash withdrawals and debit card
transfers. This is also performed by essentially routine simple
means ranging from e-mail to desktop publishing, or as complex as
the systems employed by banking and credit institution for
generating periodic statements for conventional accounts. Such
means are very well known and require no description here.
[0069] As noted above, it is not necessary that the system of the
present invention employ magnetically encoded cards to provide
system access to account holders and third party recipients.
Instead, access to the system may be obtained through the entry of
the requisite information by way of a manual input device, such as
a keyboard, that is in communication with the system. The
information may be entered directly by the account holder or third
party recipient, or on their behalf by an employee of the system
operator or fund transfer payee.
[0070] However, the use of magnetic cards encoded with account
information is particularly preferred for the sake of convenience.
The cards also eliminate the need for the system operator to hire
employees to receive and enter information that would be submitted
directly to the system by the account holder or third party
recipient. In other words, it is more economical for a bank to
permit a third party recipient to access cash via an ATM, rather
that require the recipient to present themselves to a bank teller.
Magnetic cards issued to third party recipients will be encoded
with an identifier correlated to the secondary file of the
preestablished account. The encoding of information fields on the
magnetic stripe of a magnetic card is well known and essentially
conventional and also need not be described here.
[0071] Turning now to FIG. 2, there is illustrated in block diagram
form the computer-based method of the present invention, that shall
be discussed with reference to the system depicted in FIG. 1.
Typically, the computer processor 12 creates in memory device 14
associated therewith customer account file 30 containing a record
of funds deposited by the account holder. The account holder inputs
command instructions 32 input device 16, typically a computer
terminal or work station, which are transmitted by telephone lines
15 to computer processor 12 to establish a secondary file in the
customer account. The account customer then inputs command
instructions 34, usually contemporaneously with the establishment
of the secondary file using the same input device, to designate a
third party recipient permitted access to the secondary file.
Alternatively, the third party recipient can be designated at a
later time from the same or different input device.
[0072] The account customer then inputs command instructions 36 to
transfer to the secondary file at least a portion of the record of
funds contained in the primary file representing deposited funds
accessible to the third party recipient. Again, this is usually
done contemporaneously with the establishment of the secondary file
and the designation of a third party recipient using the same input
device. However, this step can also be performed at a later time
from the same or different input device.
[0073] In the embodiment illustrated in FIG. 2, the account
customer inputs command instructions 38 to designate payees of
funds to be withdrawn by the third party recipient subject to a
limit on the amount of funds that may be withdrawn. Again, this may
be done contemporaneously with the establishment of the secondary
file, the designation of the third party recipient and the transfer
of funds from the primary file using the same input device, or this
step may be performed at a different time using the same or
different input device.
[0074] The computer processor 12 then verifies each withdrawal from
the secondary file requested by the third party recipient 40 to
determine whether it is subject to a limit in the amount of the
transaction, and whether that limit has been exceeded. At the same
time, the computer processor verifies that there are funds
available in the secondary file to complete the transaction (not
shown). The computer processor 12 sends a disapproval signal 42 if
there is a transaction limit that has been exceeded, or an approval
signal 44 if there is no transaction limit or if there is a
transaction limit that has not been exceeded, along telephone lines
17 to output device 18. The approval or disapproval signal is also
conditioned on the availability of funds in the secondary file (not
shown). Typically output device 18 is part of a computer terminal
or workstation that also includes an input device (not shown)
through which third party recipients input electronic fund transfer
requests.
[0075] The computer processor 12 also stores in memory device 14
associated therewith a file record of information 46 on each
selected payee of funds and corresponding payment amounts.
Periodically, the computer processor 12 provides to the account
holder 48 the file record of information on fund payees and
corresponding payment amounts in the form of an itemized statement
generated by output device 20, typically a high volume printer.
[0076] To illustrate the inventive concept, the system of the
present invention and the computer-based method by which it is
implemented will be described with reference to a banking
institution. The invention, however, is not limited to such
applications, and those of ordinary skill in the art will
understand how this concept can be extended to other end uses in
which a business customer wants to extend spending credit to a
third party, but control how the credit is spent and receive an
itemized statement of the spending. Furthermore, while the system
and method are being described with reference to a banking
institution, it will also be understood by those of ordinary skill
in the art that the system and method of the present invention may
be employed equally as well with similar accounts offered by credit
unions, stock brokerages, lending institutions and insurance
companies.
[0077] In particular, an account holder preestablishes an account
with a bank, into which he deposits funds, at least a portion of
which are to be set aside for a third party recipient. The data
processing system of the bank stores the account information, as
well as the information on the funds deposited in the memory of the
system. The data processing system is programmed to set up the
account with a primary file into which the funds are initially
deposited, and the capability to create one or more secondary files
into which all or some of the deposited funds may be transferred
for access by a third party recipient.
[0078] At any time thereafter, the account holder may issue command
instructions to the data processing system to create a secondary
file. More than one secondary file may be created, if the account
holder wants to designate more than one fund recipient. The command
instruction may be issued by the account holder, or by a bank
employee on behalf of the account holder, from a computer terminal
at a bank branch. Alternatively, if the bank is equipped to allow
customers to bank at home using their home personal computer, then
this transaction can be handled in this manner as well. As another
alternative, the bank can program its ATM machines to serve as data
input devices for this function as well.
[0079] The account customer provides the bank data processing
system, which serves as the controller processor of the system of
the present invention, with identifying information on the third
party recipient for use in allowing the recipient access to the
secondary file established on their behalf. The amount of funds to
be transferred is also specified. The transfer can be established
as a one time only event, or it can be programmed to occur
periodically, i.e., daily, weekly, monthly, and the like. The
periodic transfer can be programmed to occur automatically, or it
can be programmed to occur only upon entry of a command instruction
by the account holder. When periodic transfers are programmed, it
will eventually be necessary for the account holder either to stop
the transfers when the funds in the primary file of the account are
depleted, or to replenish the funds in the primary file with
additional deposits.
[0080] In a preferred embodiment of the invention, the account
customer may, at the time a secondary file is created, or at any
time thereafter, issue command instructions programming the data
processing system to place limits on the amount of cash withdrawals
or debit card purchases by the third party recipient. The account
holder may set for the third party recipient, for example, a daily,
weekly or monthly limit on the amount of cash withdrawals and/or
debit card transactions. The account holder may want to block cash
withdrawals entirely and only permit the third party recipient to
withdraw funds from the secondary file through debit card
transactions to obtain a more detailed accounting of how the money
was spent. To block cash withdrawals, the account holder would
specify $0 as the transaction limit for this type of
transaction.
[0081] The account holder may also limit the amount of debit card
transactions for specific classes of goods and services. Banking
and credit card institutions have already encoded merchants and
service providers with this information for billing purposes, so
that it would not be difficult to similarly encode an approval
request in a debit card point-of-sale transaction. Thus, an account
holder may specify a limit on the amount of debit card transactions
in bars and restaurants, for example. An absolute limit of $0 may
be set, or the limit may be a daily, weekly or monthly dollar
amount. The data processing system would then be programmed to
evaluate each requested transaction to determine if a limit has
been set, and whether the requested transaction exceeds any set
limit. If there is no limit, or if the limit is not exceeded, an
approval signal is sent to the merchant or service provider. If a
limit exists that is exceeded, a signal is sent disapproving the
transaction.
[0082] The data processing system is also programmed to evaluate
the transaction request for fund availability, and to debit the
secondary file after each transaction is executed. Subsequent
transactions are then evaluated against the lowered account
balance.
[0083] A magnetic card encoded with an identifier correlated to the
secondary file is then issued. The encoding of magnetic cards is
essentially conventional and will not be described in detail here.
The card may be issued to the account holder for delivery to the
third party recipient, or it may be issued directly to the third
party recipient.
[0084] The third party recipient then uses the card like any other
ATM or debit card to obtain cash from ATM machines, unless this
feature has been blocked, and to obtain goods and services from
merchants and service providers. And like any other ATM or debit
card transaction, each requested transaction is submitted to the
bank's data processing system for approval. However, with the
system of the present invention, the transaction is evaluated for
possible limits on the amount of the specific transaction, and an
approval or disapproval signal is sent accordingly.
[0085] The account holder is provided with a summary of the ATM and
debit card withdrawals made by the third party recipient as part of
his or her monthly bank statement. The merchant or service provider
is identified for each debit card transaction, in addition to the
date and the amount of each transaction.
[0086] To illustrate another embodiment of the inventive concept,
the system of the present invention and the computer-based method
by which it is implemented will be described with reference to a
casino issuing promotional funds to a gambling customer. The casino
management preestablishes a customer account file, into which
promotional funds are deposited. The data processing system of the
casino stores the account information, as well as information on
the promotional funds deposited in the memory of the system.
[0087] The casino management at this time, or at any time
thereafter, issues command instructions programming the data
processing system to allocate the amount of promotional funds that
may be spent on particular classes of goods and services for each
customer account file, which may be tailored to an individual
customer's spending preferences. The allocation may also be
designed to complement other casino promotions. Funds may be
allocated for spending on food, lodging, entertainment, gaming, and
the like. Within the amount of funds that are allocated for gaming,
separate limits may be set for types of games, such as slot
machines, black jack, and the like. Likewise, within the amount of
funds that are allocated for food, separate limits may be set for
meals and alcoholic beverages.
[0088] The casino data processing system is then programmed to
evaluate each requested customer transaction to determine if
available funds are allocated. If funds are available an approval
signal is sent. If not a signal is sent disapproving the
transaction. The system is also programmed to debit the allocated
funds upon execution of each approved transaction, so that
subsequent evaluations are made against a new, lower
allocation.
[0089] A magnetic card encoded with an identifier correlated to the
customer account file is then issued to the gambling customer. Card
readers are positioned throughout the casino at locations providing
goods and services for which funds are allocated, such as
restaurants, bars, theaters, gift and retail shops, hotel
registration desks, slot machines, gaming tables, and the like. The
customer uses the card like any other debit card to purchase goods
and services from the casino using the allocated funds.
[0090] The computer-based methods of the present invention do not
require special or unique computer programming for operation.
Instead, the system features described above can be programmed
following conventional techniques by individuals of ordinary
skill.
[0091] The system of the present invention is also extremely
versatile because of its ready adaptability to existing banking
networks. Such networks make it possible to set aside funds in a
distant city for a third party recipient without regard for whether
the bank of the account holder has branches in that city.
[0092] As will be readily appreciated, numerous variations and
combinations of the features set forth above can be utilized
without departing from the present invention as set forth in the
claims. Such variations are not regarded as a departure from the
spirit and scope of the invention, and all such variations are
intended to be included within the scope of the following
claims.
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