U.S. patent application number 11/465198 was filed with the patent office on 2006-12-07 for system and method for secure electronic fund transfers.
This patent application is currently assigned to JOVE CORPORATION. Invention is credited to Stephen Lange Ranzini, John Sheridan.
Application Number | 20060277144 11/465198 |
Document ID | / |
Family ID | 23995369 |
Filed Date | 2006-12-07 |
United States Patent
Application |
20060277144 |
Kind Code |
A1 |
Ranzini; Stephen Lange ; et
al. |
December 7, 2006 |
SYSTEM AND METHOD FOR SECURE ELECTRONIC FUND TRANSFERS
Abstract
A system and method for allowing simplified electronic transfer
of funds in files subject to sender-defined access constraints. In
one aspect of the system and method, a digital currency file is
transmitted as an attachment to an electronic message. The sender
of the digital currency file defines the level of security
associated with the file, i.e., what the recipient must provide to
access the funds.
Inventors: |
Ranzini; Stephen Lange; (Ann
Arbor, MI) ; Sheridan; John; (Ann Arbor, MI) |
Correspondence
Address: |
MORGAN & FINNEGAN, L.L.P.
3 WORLD FINANCIAL CENTER
NEW YORK
NY
10281-2101
US
|
Assignee: |
JOVE CORPORATION
3220 Coolidge Highway
Berkley
MI
NATIONAL CENTER FOR MANUFACTURING SCIENCES
3025 Boardwalk
Ann Arbor
MI
|
Family ID: |
23995369 |
Appl. No.: |
11/465198 |
Filed: |
August 17, 2006 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
09501874 |
Feb 10, 2000 |
7120606 |
|
|
11465198 |
Aug 17, 2006 |
|
|
|
Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 20/02 20130101;
G06Q 20/06 20130101; G06Q 20/1235 20130101; G06Q 20/023 20130101;
G06Q 20/382 20130101; G06Q 20/10 20130101 |
Class at
Publication: |
705/039 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A method for securely transferring electronic funds comprising:
(a) assigning at least one security attribute to a computer file
containing a digital representation of money, wherein the at least
one security attribute precludes unauthorized access to the file
containing the digital representation of money; and (b)
transmitting the file containing a digital representation of money
to a recipient.
2. The method of claim 1, wherein the recipient of the file
containing a digital representation of money enters security
indicia which allows access to the file containing a digital
representation of money.
3. The method of claim 1, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money enter a password,
social security number, employee identification number or personal
identification number.
4. The method of claim 1, wherein the at least one security
attribute is the requirement that a recipient of the file
continuing a digital representation of money prove they are the
intended recipient through computer signature identification.
5. The method of claim 1, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through entry of a digital certificate or
PKI.
6. The method of claim 1, wherein the at least one security
attribute is the requirement that a recipient of the file
containing digital representation of money prove they are the
intended recipient through use of a random number generator card or
smart card.
7. The method of claim 1, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through a biometric scan comprised of a retina
scan, fingerprint or voiceprint.
8. The method of claim 1, wherein the file containing a digital
representation of money is transmitted over a distributed computer
network.
9. The method of claim 8, wherein the computer network is the
internet.
10. The method of claim 8, wherein the computer network is
nonproprietary.
11. The method of claim 1, wherein application software for
securely transferring electronic funds is resident on the
transferor's computer.
12. The method of claim 1, wherein application software for
securely transferring electronic funds is accessed from a computer
or server remote from the transferor's computer on an as-needed
basis.
13. The method of claim 1, further comprising receipt of a
confirmation that funds were successfully transferred.
14. The method of claim 13, wherein the confirmation is an
electronic message from a clearing bank acknowledging transfer of
title of the funds to the recipient.
15. The method of claim 14, wherein the confirmation further
includes a unique number associated with the funds transfer.
16. The method of claim 13, wherein the confirmation is an
electronic mail message from the recipient of the electronic
funds.
17. The method of claim 13, wherein the confirmation is an
electronic message from a network that the electronic message with
digital cash file attached was delivered to the recipient.
18. The method of claim 1, wherein the electronic funds transfer is
of money from a traditional bank account.
19. A method for receiving a secure file containing electronic
funds comprising: (a) receiving a computer file containing a
digital representation of money, wherein the file containing a
digital representation of money has at least one security attribute
which precludes unauthorized access to the file; and (b) entering
security indicia, which allows access to the file containing a
digital representation of money.
20. The method of claim 19, wherein the security indicia is a
verification by the recipient that the correct party has received
the file containing a digital representation of money.
21. The method of claim 19, wherein the security indicia is a
password, social security number, employee identification number or
personal identification number.
22. The method of claim 19, wherein the security indicia is
computer signature identification of the recipient.
23. The method of claim 19, wherein the security indicia is a
digital certificate or PKI.
24. The method of claim 19, wherein the security indicia is a
random number generator card or smart card.
25. The method of claim 19, wherein the security indicium is
retinal scan data, a fingerprint or a voiceprint.
26. The method of claim 19, wherein the recipient transfers the
digital representation of money to a traditional bank account.
27. The method of claim 19, wherein the recipient maintains the
file containing the digital representation of money in a digital
form for future digital payments.
28. A method for securely transferring electronic funds comprising:
(a) creating a computer file containing a digital representation of
money; (b) assigning at least one security attribute to the file
containing a digital representation of money, wherein the at least
one security attribute precludes unauthorized access to the file
containing the digital representation of money; (c) attaching the
file containing a digital representation of money to an electronic
mail message; and (d) transmitting the electronic mail message with
attached file containing a digital representation of money to a
recipient.
29. The method of claim 28, wherein the recipient of the electronic
mail message with attached file containing a digital representation
of money enters security indicia which allows access to the file
containing a digital representation of money.
30. The method of claim 28, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money enter a password,
social security number, employee identification number or personal
identification number.
31. The method of claim 28, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through computer signature identification.
32. The method of claim 28, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through entry of a digital certificate or
PKI.
33. The method of claim 28, wherein the at least one security
attribute is the requirement that a recipient of the file
containing digital representation of money prove they are the
intended recipient through use of a random number generator card or
smart card.
34. The method of claim 28, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through a biometric scan comprised of a retina
scan, fingerprint or voiceprint.
35. The method of claim 28, wherein the electronic mail message
with attached file containing a digital representation of money is
transmitted over a distributed computer network.
36. The method of claim 35, wherein the computer network is the
internet.
37. the method of claim 35, wherein the computer network is
nonproprietary.
38. The method of claim 28, wherein application software for
securely transferring electronic funds is resident on the
transferor's computer.
39. The method of claim 28, wherein application software for
securely transferring electronic funds is accessed from a computer
or server remote from the transferor's computer on an as-needed
basis.
40. The method of claim 28, further comprising receipt of a
confirmation that funds were successfully transferred.
41. The method of claim 40, wherein the confirmation is an
electronic message from a clearing bank acknowledging transfer of
title of the funds to the recipient.
42. The method of claim 41, wherein the confirmation further
includes a unique number associated with the funds transfer.
43. The method of claim 40, wherein the confirmation is an
electronic mail message from the recipient of the electronic
funds.
44. The method of claim 40, wherein the confirmation is an
electronic message from a network that the electronic message with
digital cash file attached was delivered to the recipient.
45. The method of claim 28, wherein the electronic funds transfer
is of money from a traditional bank account.
46. A method for receiving a secure file containing electronic
funds comprising: (a) receiving an electronic mail message with an
attached computer file containing a digital representation of
money, wherein the file containing a digital representation of
money has at least one security attribute which precludes
unauthorized access to the file; and (b) entering security
indicium, which allows access to the file containing a digital
representation of money.
47. The method of claim 46, wherein the security indicia is a
verification by the recipient that the electronic message with
attached file containing a digital representation of money has been
received by the correct party.
48. The method of claim 46, wherein the security indicia is a
password, social security number, employee identification number or
personal identification number.
49. The method of claim 46, wherein the security indicia is
computer signature identification of the recipient.
50. The method of claim 46, wherein the security indicia is a
digital certificate or PKI.
51. The method of claim 46, wherein the security indicia is a
random number generator card or smart card.
52. The method of claim 46, wherein the security indicium is
retinal scan data, a fingerprint or a voiceprint.
53. The method of claim 46, wherein the recipient transfers the
digital representation of money to a traditional bank account.
54. The method of claim 46, wherein the recipient maintains the
file containing the digital representation of money in a digital
form for future digital payments.
55. A system for securely transferring electronic funds comprising:
(a) means for assigning at least one security attribute to a file
containing a digital representation of money, wherein the at least
one security attribute precludes unauthorized access to the file
containing the digital representation of money; and (b) means for
transmitting the file containing a digital representation of money
to a recipient.
56. The system of claim 55, further comprising means for allowing
the recipient of the file containing a digital representation of
money to enter security indicia, which allows access to the file
containing a digital representation of money.
57. The system of claim 55, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money enter a password,
social security number, employee identification number or personal
identification number.
58. The system of claim 55, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through computer signature identification.
59. The system of claim 55, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through entry of a digital certificate or
PKI.
60. The system of claim 55, wherein the at least one security
attribute is the requirement that a recipient of the file
containing digital representation of money prove they are the
intended recipient through use of a random number generator card or
smart card.
61. The system of claim 55, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through a biometric scan comprised of a retina
scan, fingerprint or voiceprint.
62. The system of claim 55 wherein the means for transmitting the
electronic mail message with attached containing a digital
representation of money to a recipient is a means for transmission
over a distributed computer network.
63. The system of claim 62, wherein the computer network is the
internet.
64. The system of claim 62, wherein the computer network is
nonproprietary.
65. The system of claim 55, wherein application software for
securely transferring electronic funds is resident on the
transferor's computer.
66. The system of claim 55, wherein application software for
securely transferring electronic funds is accessed from a computer
or server remote from the transferor's computer on an as-needed
basis.
67. The system of claim 55, further comprising means for receiving
a confirmation that funds were successfully transferred.
68. The system of claim 67, wherein the confirmation is an
electronic message from a clearing bank acknowledging transfer of
title of the funds to the recipient.
69. The system of claim 68, wherein the confirmation further
includes a unique number associated with the funds transfer.
70. The system of claim 67, wherein the confirmation is an
electronic mail message from the recipient of the electronic
funds.
71. The system of claim 67, wherein the confirmation is an
electronic message from a network that the electronic message with
digital cash file attached was delivered to the recipient.
72. The system of claim 55, wherein the electronic funds transfer
is of money from a traditional bank account.
73. A system for receiving a secure file containing electronic
funds comprising: (a) means for receiving a computer file
containing a digital representation of money, wherein the file
containing a digital representation of money of money has at least
one security attribute which precludes unauthorized access to the
file; and (b) means for entering security indicia, which allows
access to the file containing a digital representation of
money.
74. The system of claim 73, wherein the security indicia is a
verification by the recipient that the electronic message with
attached file containing digital representation of money has been
received by the correct party.
75. The system of claim 73, wherein the security indicia is a
password, social security number, employee identification number or
personal identification number.
76. The system of claim 73, wherein the security indicia is
computer signature identification of the recipient.
77. The system of claim 73, wherein the security indicia is a
digital certificate or PKI.
78. The system of claim 73, wherein the security indicia is a
random number generator card or smart card.
79. The system of claim 73, wherein the security indicium is
retinal scan data, a fingerprint or a voiceprint.
80. The system of claim 73, wherein the recipient transfers the
digital representation of money to a traditional bank account.
81. The system of claim 73, wherein the recipient maintains the
file containing the digital representation of money in a digital
form for future digital payments.
82. A system for securely transferring electronic funds comprising:
(a) means for creating a computer file containing a digital
representation of money; (b) means for assigning at least one
security attribute to the file containing a digital representation
of money, wherein the at least one security attribute precludes
unauthorized access to the file containing the digital
representation of money; (c) means for attaching the file
containing a digital representation of money to an electronic mail
message; and (d) means for transmitting the electronic mail message
with attached file containing a digital representation of money to
a recipient.
83. The system of claim 82, further comprising means for allowing
the recipient of the electronic mail message with attached file
containing a digital representation of money to enter security
indicia that allows access to the file containing a digital
representation of money.
84. The system of claim 82, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money enter a password,
social security number, employee identification number or personal
identification number.
85. The system of claim 82, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through computer signature identification.
86. The system of claim 82, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through entry of a digital certificate or
PKI.
87. The system of claim 82, wherein the at least one security
attribute is the requirement that a recipient of the file
containing digital representation of money prove they are the
intended recipient through use of a random number generator card or
smart card.
88. The system of claim 82, wherein the at least one security
attribute is the requirement that a recipient of the file
containing a digital representation of money prove they are the
intended recipient through a biometric scan comprised of a retina
scan, fingerprint or voiceprint.
89. The system of claim 82, wherein the means for transmitting the
electronic mail message with attached file containing a digital
representation of money to a recipient is a means for transmission
over a distributed computer network.
90. The system of claim 89, wherein the computer network is the
internet.
91. The system of claim 89, wherein the computer network is
nonproprietary.
92. The system of claim 82, wherein application software for
securely transferring electronic funds is resident on the
transferor's computer.
93. The system of claim 82, wherein application software for
securely transferring electronic funds is accessed from a computer
or server remote from the transferor's computer on an as-needed
basis.
94. The system of claim 82, further comprising means for receiving
a confirmation that funds were successfully transferred.
95. The system of claim 94, wherein the confirmation is an
electronic message from a clearing bank acknowledging transfer of
title of the funds to the recipient.
96. The system of claim 95, wherein the confirmation further
includes a unique number associated with the funds transfer.
97. The system of claim 94, wherein the confirmation is an
electronic mail message from the recipient of the electronic
funds.
98. The system of claim 94, wherein the confirmation is an
electronic message from a network that the electronic message with
digital cash file attached was delivered to the recipient.
99. The system of claim 82, wherein the electronic funds transfer
is of money from a traditional bank account.
100. A system for receiving a secure file containing electronic
funds comprising: (a) means for receiving an electronic mail
message with an attached computer file containing a digital
representation of money, wherein the file containing a digital
representation of money of money has at least one security
attribute which precludes unauthorized access to the file; and (b)
means for entering security indicia that allows access to the file
containing a digital representation of money.
101. The system of claim 100, wherein the security indicia is a
verification by the recipient that the electronic message with
attached file containing digital representation of money has been
received by the correct party.
102. The system of claim 100, wherein the security indicia is a
password, social security number, employee identification number or
personal identification number.
103. The system of claim 100, wherein the security indicia is
computer signature identification of the recipient.
104. The system of claim 100, wherein the security indicia is a
digital certificate or PKI.
105. The system of claim 100, wherein the security indicia is a
random number generator card or smart card.
106. The system of claim 100, wherein the security indicium is
retinal scan data, a fingerprint or a voiceprint.
107. The system of claim 100, wherein the recipient transfers the
digital representation of money to a traditional bank account.
108. The system of claim 100, wherein the recipient maintains the
file containing the digital representation of money in a digital
form for future digital payments.
109. A programmed computer configured for securely transferring
electronic funds comprising: (a) a memory having at least one
region for storing computer executable program code; and (b) a
processor for executing the program code stored in memory, wherein
the program code includes: (i) code for assigning at least one
security attribute to a file containing a digital representation of
money, wherein the at least one security attribute precludes
unauthorized access to the file containing the digital
representation of money; and (ii) code for transmitting the file
containing a digital representation of money to a recipient.
110. A programmed computer configured for receiving a secure file
containing electronic funds comprising: (a) a memory having at
least one region for storing computer executable program code; and
(b) a processor for executing the program code stored in memory,
wherein the program code includes: (i) code for receiving a file
containing a digital representation of money, wherein the file
containing a digital representation of money has at least one
security attribute which precludes unauthorized access to the file;
and (ii) code for facilitating the entry of security indicia that
allows access to the file containing a digital representation of
money.
111. Computer executable software code configured for securely
transferring electronic funds comprising: (a) code for assigning at
least one security attribute to a file containing a digital
representation of money, wherein the at least one security
attribute precludes unauthorized access to the file containing the
digital representation of money; and (b) code for transmitting the
file containing a digital representation of money to a
recipient.
112. The computer executable software code of claim 111, wherein
the code is stored on a computer readable medium.
113. Computer executable software code configured for receiving a
secure file containing electronic funds comprising: (a) code for
receiving an electronic mail message with an attached file
containing a digital representation of money, wherein the file
containing a digital representation of money has at least one
security attribute which precludes unauthorized access to the file;
and (b) code for facilitating the entry of security indicia that
allows access to the file containing a digital representation of
money.
114. The computer executable software code of claim 113, wherein
the code is stored on a computer readable medium.
115. A programmed computer configured for securely transferring
electronic funds comprising: (a) a memory having at least one
region for storing computer executable program code; and (b) a
processor for executing the program code stored in memory, wherein
the program code includes: (i) code for creating a file containing
a digital representation of money; (ii) code for assigning at least
one security attribute to the file containing a digital
representation of money, wherein the at least one security
attribute precludes unauthorized access to the file containing the
digital representation of money; (iii) code for attaching the file
containing a digital representation of money to an electronic mail
message; and (iv) code for transmitting the electronic mail message
with attached file containing a digital representation of money to
a recipient.
116. A programmed computer configured for receiving a secure file
containing electronic funds comprising: (a) a memory having at
least one region for storing computer executable program code; and
(b) a processor for executing the program code stored in memory,
wherein the program code includes: (i) code for receiving an
electronic mail message with an attached file containing a digital
representation of money, wherein the file containing a digital
representation of money has at least one security attribute which
precludes unauthorized access to the file; and (ii) code for
facilitating the entry of security indicia that allows access to
the file containing a digital representation of money.
117. Computer executable software code configured for securely
transferring electronic funds comprising: (a) code for creating a
file containing a digital representation of money; (b) code for
assigning at least one security attribute to the file containing a
digital representation of money, wherein the at least one security
attribute precludes unauthorized access to the file containing the
digital representation of money; (c) code for attaching the file
containing a digital representation of money to an electronic mail
message; and (d) code for transmitting the electronic mail message
with attached file containing a digital representation of money to
a recipient.
118. The computer executable software code of claim 117, wherein
the code is stored on a computer readable medium.
119. Computer executable software code configured for receiving a
secure file containing electronic funds comprising: (a) code for
receiving an electronic mail message with an attached file
containing a digital representation of money, wherein the file
containing a digital representation of money has at least one
security attribute which precludes unauthorized access to the file;
and (b) code for facilitating the entry of security indicia that
allows access to the file containing a digital representation of
money.
120. The computer executable software code of claim 119, wherein
the code is stored on a computer readable medium.
121. The method of claim 18, wherein the recipient of the money
from a traditional bank account initiates the transfer.
122. The method of claim 19, wherein a recipient initiates the
transfer and receives the money from a traditional back
account.
123. The method of claim 45, wherein a recipient of the money from
a traditional bank account initiates the transfer.
124. The method of claim 46, wherein a recipient initiates the
transfer and receives the money from a traditional bank
account.
125. The system of claim 72, wherein the recipient of the money
from a traditional bank account initiates the transfer.
126. The system of claim 73, wherein a recipient initiates the
transfer and receives the money from a traditional bank
account.
127. The system of claim 99, wherein the recipient of the money
from a traditional bank account initiates the transfer.
128. The system of claim 100, wherein a recipient initiates the
transfer and receives the money from a traditional bank
account.
129. The method of claim 2, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
130. The method of claim 19, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
131. The method of claim 28, wherein one of the security attributes
of the file containing a digital representation of money is a time
limit for certain actions by the recipient.
132. The method of claim 29, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
133. The method of claim 132, wherein the recipient must
acknowledge receipt of the file containing a digital representation
of money within the time limit established by the sender.
134. The method of claim 132, wherein the recipient must register
receipt of the file containing a digital representation of money
with a third-party within the time limit established by the
sender.
135. The method of claim 132, wherein the recipient must activate
or access the file containing a digital representation of money
within the time limit established by the sender.
136. The method of claim 46, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
137. The method of claim 136, wherein the recipient must
acknowledge receipt of the file containing a digital representation
of money within the time limit established by the sender.
138. The method of claim 136, wherein the recipient must register
receipt of the file containing a digital representation of money
with a third-party within the time limit established by the
sender.
139. The method of claim 136, wherein the recipient must activate
or access the file containing a digital representation of money
within the time limit established by the sender.
140. The system of claim 55, wherein one of the security attributes
of the file containing a digital representation of money is a time
limit for certain actions by the recipient.
141. The system of claim 56, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
142. The system of claim 141, wherein the recipient must
acknowledge receipt of the file containing a digital representation
of money within the time limit established by the sender.
143. The system of claim 141, wherein the recipient must register
receipt of the file containing a digital representation of money
with a third-party within the time limit established by the
sender.
144. The system of claim 141, wherein the recipient must activate
or access the file containing a digital representation of money
within the time limit established by the sender.
145. The system of claim 73, wherein one of the security attributes
of the file containing a digital representation of money is a time
limit for certain actions by the recipient.
146. The system of claim 73, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
147. The system of claim 146, wherein the recipient must
acknowledge receipt of the file containing a digital representation
of money within the time limit established by the sender.
148. The system of claim 146, wherein the recipient must register
receipt of the file containing a digital representation of money
with a third-party within the time limit established by the
sender.
149. The system of claim 146, wherein the recipient must activate
or access the file containing a digital representation of money
within the time limit established by the sender.
150. The system of claim 82, wherein one of the security attributes
of the file containing a digital representation of money is a time
limit for certain actions by the recipient.
151. The system of claim 83, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
152. The system of claim 151, wherein the recipient must
acknowledge receipt of the file containing a digital representation
of money within the time limit established by the sender.
153. The system of claim 151, wherein the recipient must register
receipt of the file containing a digital representation of money
with a third-party within the time limit established by the
sender.
154. The system of claim 151, wherein the recipient must activate
or access the file containing a digital representation of money
within the time limit established by the sender.
155. The system of claim 100, wherein one of the security
attributes of the file containing a digital representation of money
is a time limit for certain actions by the recipient.
156. The system of claim 100, wherein the security indicia must be
entered prior to a time limit for access upon receipt by the
recipient, wherein the time limit is established by a sender who
transmits the file.
157. The system of claim 156, wherein the recipient must
acknowledge receipt of the file containing a digital representation
of money within the time limit established by the sender.
158. The system of claim 156, wherein the recipient must register
receipt of the file containing a digital representation of money
with a third-party within the time limit established by the
sender.
159. The system of claim 156, wherein the recipient must activate
or access the file containing a digital representation of money
within the time limit established by the sender.
160. The method of claim 18, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
161. The method of claim 160, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
162. The method of claim 26, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
163. The method of claim 162, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
164. The method of claim 27, wherein the recipient maintains more
than one currency or representation of money in a digital form for
future digital payments.
165. The method of claim 45, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
166. The method of claim 165, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
167. The method of claim 53, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
168. The method of claim 167, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
169. The method of claim 54, wherein the recipient maintains more
than one currency or representation of money in a digital form for
future digital payments.
170. The system of claim 72, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
171. The system of claim 170, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
172. The system of claim 80, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
173. The system of claim 172, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
174. The system of claim 81, wherein the recipient maintains more
than one currency or representation of money in a digital form for
future digital payments.
175. The system of claim 99, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
176. The system of claim 175, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
177. The system of claim 107, wherein the electronic funds transfer
of money is in one or more currencies or representations of
money.
178. The system of claim 177, wherein the user can request from a
clearing bank the conversion of one or more currencies or
representations of money contained in a file containing a digital
representation of money into different currencies or
representations of money.
179. The system of claim 108, wherein the recipient maintains more
than one currency or representation of money in a digital form for
future digital payments.
180. The programmed computer of claim 109, wherein the electronic
funds transfer of money is in one or more currencies or
representations of money.
181. The programmed computer of claim 110, wherein the electronic
funds transfer of money is in one or more currencies or
representations of money.
182. The computer executable software code of claim 111, wherein
the electronic funds transfer of money is in one or more currencies
or representations of money.
183. The computer executable software code of claim 113, wherein
the electronic funds transfer of money is in one or more currencies
or representations of money.
184. The programmed computer of claim 115, wherein the electronic
funds transfer of money is in one or more currencies or
representations of money.
185. The programmed computer of claim 116, wherein the electronic
funds transfer of money is in one or more currencies or
representations of money.
186. The computer executable software code of claim 117, wherein
the electronic funds transfer of money is in one or more currencies
or representations of money.
187. The computer executable software code of claim 119, wherein
the electronic funds transfer of money is in one or more currencies
or representations of money.
Description
RELATED APPLICATION INFORMATION
[0001] This application is a continuation of co-pending U.S.
application Ser. No. 09/501,874 filed Feb. 10, 2000, which is
incorporated herein by reference.
FIELD OF INVENTION
[0002] This invention relates to a system and method for secure
electronic fund transfers.
BACKGROUND OF THE INVENTION
[0003] With the advent of mass electronic communication and
commerce, a need has arisen with respect to a simple way to
transmit funds electronically for payment or other purposes in a
completely secure manner. Prior electronic fund transfer approaches
have a variety of flaws. FedWire is secure but not adaptable to
routine applications. ATM network pins are widely available but not
secure from electronic attack since they are typically four or five
characters in length, which is insufficient to protect against
brute strength attacks. Credit card networks have proven to be
insecure from a variety of fraud attacks.
SUMMARY OF THE INVENTION
[0004] The system and method described below overcomes the problems
discussed above by allowing simplified electronic transfer of funds
in files subject to sender-defined access constraints. In one
aspect of the system and method described below, a digital currency
file is transmitted as an attachment to an electronic message. The
sender of the digital currency file defines the level of security
associated with the file, i.e., what the recipient must provide to
access the funds.
BRIEF DESCRIPTION OF THE DRAWINGS
[0005] The foregoing features and advantages of the described
system and method can be appreciated more fully with reference to
the accompanying drawings in which:
[0006] FIG. 1 is a schematic representation of one embodiment of
the present system.
[0007] FIG. 2 is a schematic representation of one embodiment of
the central controller used in the system shown in FIG. 1;
[0008] FIG. 3 illustrates a sample of the contents of the messages
database stored in the central controller shown in FIG. 2;
[0009] FIG. 4 illustrates a sample of the contents of the funds
database stored in the central controller shown in FIG. 2;
[0010] FIG. 5 illustrates a sample of the contents of the security
criteria database stored in the central controller shown in FIG.
2;
[0011] FIG. 6 is a flowchart illustrating a funds transfer process
executed by the system shown in FIG. 1.
DETAILED DESCRIPTION OF THE INVENTION
[0012] In one embodiment, the present system and method utilizes
any e-mail program to send money as a file attachment in a secure
environment. Digital currency is enclosed inside a digital funds
container, for example a Digi-Box.TM., a digital rights management
technology developed by InterTrust Technologies of Palo Alto,
California. The Digi-Box.TM. is a currently available digital
rights management technology. However, any digital rights
management technology may be used. Access to the cash is governed
by the rules mandated by the sender of the digital funds container.
Endorsement (access) of the digital funds container can be as
secure or insecure as the originator defines.
[0013] The first-time recipient of an e-mail with a file attachment
containing cash (or a representation of cash) inside a digital
funds container has two choices upon receipt: either reject the
payment by returning it to the sender (the recipient could also not
activate the file or delete the file) or activate (or download) the
software necessary to access the cash. Once endorsement is
accepted, the user has two choices, to keep the cash in a digital
cash file for future use or send the cash back to his/her bank
account via, for example, an Automated Clearing House ("ACH")
transfer, SWIFT transfer or traditional FedWire transfer. Under one
embodiment, the cost of the ACH transfer is established at $0.05
with a two-day delay. The cost of the FedWire or SWIFT transfer is
established at $10.00 with immediate transfer. Transfer via ACH,
SWIFT or FedWire is accomplished by e-mailing the cash (or
representation of the cash) inside a digital funds holder to the
clearing agent of the original sender of the cash (e.g., a Federal
Reserve Bank or another bank clearing house) with instructions
including the ABA number (or SWIFT designator) and account number
to which they wish to have the cash transferred. The name on the
account must match the name of the originator of the e-mail
transfer request. If the cash is kept as a recipient's digital cash
file, the recipient can subsequently pay others with the cash via
cash enclosed inside a digital funds container attached to an
email. Similarly, cash can be downloaded to a sender's digital
currency file through a request of the sender's digital funds
container clearing agent to ACH, send via SWIFT or FedWire funds
from the sender's traditional bank account to the sender via an
e-mail with the cash attached inside a digital funds container.
[0014] A user need only download the digital funds container
application software once. Application software can also be
distributed via the banking system on, e.g., CD-ROMs to customers
or via internet banking applications. Application software can also
be made accessible on-line without the need for downloading at, for
example, the bank's portal site. However, this would require that a
user is on-line in communication via the internet or other
distributed computer network with either their own bank (which had
resident application software on its website) or the digital funds
clearing bank in order to use, access or create a digital cash
transmission. Once application software is loaded onto the user's
PC, digital funds containers can be used, accessed or created
off-line.
[0015] It is important to note that the software to run this system
is distributed quickly and efficiently to the users on an as needed
or as desired basis. No recipient is obligated to accept payment in
this manner and can reject payment, just as with checks. Consumer
surveys indicate that consumers are looking for a way to send money
"which is easy as e-mail". The present system and method uses the
current internet infrastructure and protocols to facilitate
electronic fund transfers through e-mail and thus will allow
e-commerce on the internet to grow without the current barriers to
electronic fund transfers.
System Of The Invention
[0016] The preferred embodiment of the present system and method
uses typical hardware elements in the form of a computer
workstation, operating system and application software elements
which configure the hardware elements for operation in accordance
with the present system and method. A typical workstation platform
includes hardware such as a central processing unit ("CPU"), e.g.,
a Pentium.RTM. microprocessor, RAM, ROM, hard drive storage in
which are stored various system and application programs and data
used within the workstation, modem, display screen, keyboard, mouse
and optional removable storage devices such as floppy drive or a CD
ROM drive. The workstation hardware is configured by software
including an operating system, e.g., Windows.RTM. 95, 98, NT or CE,
networking software (including internet browsing software), e-mail
software and application software components. The preferred
embodiment also encompasses a typical file server platform
including hardware such as a CPU, e.g., Pentium.RTM.
microprocessor, RAM, ROM, hard drive, modem, and optional removable
storage devices, e.g., floppy or CD ROM drive. The server hardware
is configured by software including an operating system, e.g.,
Windows.RTM., UNIX.RTM., or Linux.RTM., networking software
(including Web server software), e-mail software and database
software.
[0017] FIG. 1 shows one embodiment of the present system. In this
embodiment, the system includes a central controller 110 configured
to receive data via a distributed computer network from at least
one sender 134 at remote terminals or interface user devices 130
and transmit data to at least one recipient 124 at remote terminals
or interface user devices 120 over the network.
[0018] Central controller 110 preferably comprises a
processor-based system that maintains databases and information
relating to transferring files, messages or other data over the
network. Central controller 110 provides the graphical user
interface (GUI) to senders 134 at user interface devices 130 which
allows senders to create and/or transmit secure files containing
digital currency to one or more recipients 124 at user interface
devices 120. In one embodiment, user interface devices 120 and 130
may be computers comprising one or more central processing units,
one or more data storage devices, a monitor, a keyboard and/or any
other components that may allow a user to implement the commands of
the software and hardware functions described herein. In
alternative embodiments, the user interface devices 120 and 130 may
be a telephone, facsimile, online access device, voice response
unit, wireless device or the like.
[0019] Central controller 110 stores information received from
senders 134 in messages database 352, funds database 354 and
security criteria database 356. As described more fully below, this
information is used to securely transmit electronic funds to
recipients 124. Although the present embodiment shows central
controller 110 connected to a central communications authority, in
a different embodiment the central controller might be located
within the server of senders 134, recipients 124 or anywhere else
in the distributed computer network. Also, some or all of the
information in messages database 352, funds database 354 and
security criteria database 356 may be copied and held on another
central controller unit elsewhere in the distributed computer
network for a variety of purposes such as recovery of data files
lost by a processor failure, additional security measures or
tracking of transactions and levels of activity within the network.
In the preferred embodiment, the sender 134 uses application
software for performing the secure digital cash file creation
and/or transmission process of the invention. However, in a
different embodiment, the distributed computer network could
include such application software practically anywhere or such
software could be integrated into the same program and reside at
the same physical location. The structure of certain embodiments of
the central controller 110 is described below in connection with
FIG. 2.
[0020] Senders 134 include individuals or companies wishing to
securely transmit electronic funds to a recipient 124. In one
embodiment, senders 134 register with the central communication
authority and transmit messages including digital currency file
attachments to the central controller 110 through user interface
device 130. The user interface device may be the user's computer or
internet access device. In another embodiment, the user interface
device 130 may be a telephone or cell phone either of which could
incorporate technologies such as WAP or voice recognition software.
Users 134 can transmit information in various ways. For instance,
users may transmit information electronically by means of the
internet.
[0021] It is anticipated that most applications of the described
system and method to transmit electronic messages with attached
file containing a digital representation of money will use a
computer network, e.g., the internet, as the means for transmitting
information, including wireless remote handheld devices, including
devices using the WAP protocol. The World Wide Web is a distributed
hypermedia computer system that uses the internet to facilitate
global hypermedia communication using specified protocols. One such
protocol is the Hypertext Transfer Protocol ("HTTP"), which
facilitates communication of hypertext. Hypertext is the
combination of information and links to other information. In the
context of the Web, hypertext is defined by the Hypertext Mark-up
Language ("HTML"). The links or hyperlinks in a HTML document
reference the locations of resources on the Web, such as other HTML
documents. Another language used in creating documents for use on
the Worldwide Web, to display on computer screens, or to create
speech style sheets for use in, e.g., telephones, is the Extensible
Mark-Up Language ("XML"). XML is a "metalanguage"i.e., a language
for describing languages that was developed to eliminate the
restrictions of HTML.
[0022] The Web is a client-server system. The HTML documents are
stored on Web server computers, typically in a hierarchical fashion
with the root document being referred to as the home page. The
client specifies a HTML document or other source on the server by
transmitting a Uniform Resource Locator ("URL") that specifies the
protocol to use, e.g., HTTP, the path to the server directory in
which the resource is located, and filename of the resource. Users
retrieve the documents via client computers. The software running
on the user's client computer that enables the user to view HTML
documents on the computer's video monitor and enter selections
using the computer's keyboard and mouse is known as a browser. The
browser typically includes a window in which the user may type a
URL. A user may cause a URL to be transmitted by typing it in the
designated window on the browser or by maneuvering the cursor to a
position on the displayed document that corresponds to a hyperlink
to a resource and actuating the mouse button. The latter method is
commonly referred to simply as "clicking on the hot-spot" or
"clicking on the hyperlink". The hyperlink methodology is
contemplated for use in accordance with the preferred embodiment to
access application software and to open, create and transmit
messages, files and other information via the internet.
[0023] The digital rights management software application to
transmit electronic funds, activate the digital funds container and
access the funds inside is typically resident on a user's computer
or can be downloaded from the internet on an as-needed basis if not
preloaded on the PC. One such digital rights management software
application is InterTrust Digi-Box.TM.. The software used with
Intertrust's Digi-Box.TM. is called an InterRightsPoint.TM.. Once
the software is downloaded a user can use the digital funds
container to send digital cash to anyone they wish. In the case of
the InterTrust software, the Digi-Box.TM. digital funds container
itself adds just 7k to the size of an e-mail file attachment. A
Digi-Box.TM. Cash Purse, a digital representation of electronic
cash, is a small plug-in type file that is transmitted with each
e-mail as a part of the file attachment.
[0024] FIG. 2 illustrates one embodiment of the central controller
110 for a system according to the present invention. As shown in
FIG. 2, central controller 110 includes central processing unit
(CPU) 240, random access memory (RAM) 220, read-only memory (ROM)
230, and large capacity storage device 250. CPU 240, preferably
comprising a conventional microprocessor such as an Intel
Pentium.RTM. Processor, is electronically coupled to each of the
central controller's 110 other elements.
[0025] CPU 240 executes program code stored in one or more of RAM
220, ROM 230 and storage device 250 to carry out the functions and
acts described in connection with central controller 110. CPU 240
preferably comprises at least one high-speed digital data processor
adequate to execute program modules for transmitting data, messages
or information from senders 134. These modules are described in
connection with FIG. 6. CPU 240 interacts with RAM 220, ROM 230 and
storage device 250 to execute stored program code according to
conventional data processing techniques.
[0026] User interface devices 120 and 130 comprise devices for
allowing central controller 110 to communicate with recipients 124
and senders 134. Communication between these user interface devices
120 and the controller 110 is preferably electronic by means of the
internet and preferably includes a conventional high speed modem,
digital input/output line or the like employing known communication
protocols capable of decrypting or decompressing encrypted or
compressed data received from the interface user devices 120,
130.
[0027] Large capacity storage device 250 contains transaction
processor 260, messages database 352, funds database 354, and
security criteria database 356. Transaction processor 260
maintains, determines and accesses data stored in databases 352,
354, 356, and prepares information, data or messages for
transmission to senders 134 and recipients 124 as described in
connection with FIG. 6. Transaction processor 260 may comprise a
separate, conventional CPU/microprocessor, or a portion of the
operating function of CPU 240. Messages database 352 contains
information related to electronic messages transmitted over the
network. Funds database 354 contains information about each digital
currency file created or transmitted by a user 134. Security
criteria database 356 contains information relating to a sender's
assigned security attributes that preclude unauthorized access to
the currency files by other than the intended recipient 124.
Samples of the types of respective fields that are contained in
databases 352, 354 and 356 are shown and described in connection
with FIGS. 3-5.
Database Formats
[0028] Samples of the contents of databases 352, 354 and 356 are
shown in FIGS. 3-5, respectively. The specific data and fields
illustrated in these figures represent only one embodiment of the
records stored in the databases of the invention and are exemplary
only. In most cases, the fields shown in FIGS. 3-5 are
self-explanatory. It is to be understood that the data and fields,
as well as the number of databases, can be readily modified from
the described embodiment and adapted to provide variations for
operating the system and method described, including transmitting
electronic files, messages and other information. Furthermore, each
field may contain more or less information. For example, an address
field may be divided into separate fields containing street
address, city, state, zip code, telephone number and e-mail.
[0029] Messages database 352 maintains (among other information) a
compilation of all messages transmitted over the network by senders
134, recipients 124 and other network entities. In one embodiment,
the information is automatically stored with appropriate archive
data when a message is transmitted. Each record in messages
database 352 corresponds to one unique message but a unique message
can be different parts or attachments where appropriate.
[0030] FIG. 3 illustrates a sample record. As shown in FIG. 3,
messages database 352 may contain fields corresponding to, for
example, sender ID, sender name, sender physical address and e-mail
address, transmission date, archive date, history codes, recipient
ID, recipient name, recipient physical address and e-mail address,
security indicia etc.
[0031] Many of the fields illustrated in FIG. 3 are
self-explanatory. The message history field allows tracking of the
transmission, receipt etc. of the message. The sender ID and
recipient ID are examples of information known to users 134 or
recipients 124 as well as to system administrators but not known to
the general public and access to messages database 352, funds
database 354 and security criteria database 356 could also be
protected by digital rights management software such as
Digi-Box.TM.. The Digi-Box.TM. is used to prevent others from
logging in or gaining access to the database under the user's or
recipient's user ID or access code which provides access to central
controller 110 or any of it's elements such as CPU 240. The central
controller 110 uses the sender or recipient ID for a variety of
purposes such as security, tracking of transactions or to verify
that the current sender or recipient has previously provided
registration information. Under alternative embodiments, providing
registration information is optional. From this data and data
stored in other databases, the data for the remaining fields can be
generated.
[0032] Funds database 354 contains files containing digital
currency. FIG. 4 illustrates a sample record of funds database 354.
As shown in FIG. 4, funds database 354 contains information having
fields corresponding to e.g., creator, creator ID number, digital
currency file number, date created, amount of digital currency,
date transmitted, recipient, recipient ID and security attributes.
Under alternative embodiments, the digital currency is resident on
another central controller in the distributed computer network and
funds database 354 contains information identifying the address,
name, URL location or other designator of that central controller.
The data field that references an amount in U.S. Dollars is
exemplary only, and under alternative embodiments, one or more
other currencies or other units of exchange are enclosed,
identified by address or represented within funds database 354.
[0033] Security criteria database 356 contains information about
the security attributes that are available to be assigned to
digital currency files stored in funds database 354 as well as
information necessary to process a validation attempt by a
recipient. FIG. 5 illustrates a sample record of security criteria
database 356. As shown in FIG. 5, funds database 356 contains
fields corresponding to, for example, assignable security
attributes, validation protocols and criteria, whether validation
is automatic or requires user action and the digital currency file
numbers that have the particular security attributes assigned to
them. The information in database 356 is invisible to senders or
recipients except insofar as their input or validations are
concerned. The data in security criteria database 356, as well as
the messages database 352 and funds database 354, are routinely
updated.
[0034] It should be understood that some information in certain
fields is accessible by the system manager only, and other
information is accessible by the senders and recipients, as well as
network administrations or banking or government officials. For
example, message data is information that may be available to the
sender and recipient, as well as the system manager. Security
indicia, however, is data that may only be known or in the
possession of a recipient or the system manager. Further, all data
that is personal to a sender or recipient is secured by utilization
of encryption techniques and database access control mechanisms
such as digital rights management software.
[0035] The process of creating and using data stored in messages
database 352, funds database 354, and security criteria database
356 to effect dissemination and tracking of messages, files and
electronic funds from senders 134 to recipients 124, as well as the
other operations of the system described with reference to FIGS. 1
and 2, is represented in the flowchart of FIG. 6, described in
detail below. Central controller 110 uses messages database 352,
funds database 354, and security criteria database 356 to execute
the electronic funds transfer processes of the invention.
[0036] Security/Endorsement The contents of a digital funds
container cannot be separated from the digital funds container
itself or the rules for using the digital funds container and its
contents. The file representing the cash itself appears as
meaningless binary digits without translation authorization under
the rules of the digital funds container, which are initially
specified by the sender.
[0037] Upon receipt of an e-mail with attachment containing a file
representing cash enclosed inside a digital funds container, or
simply a file inside a digital funds container, the recipient must
prove their identity or endorse the digital funds container, i.e.,
satisfy the previously-assigned security protocol. Typical ways to
achieve endorsement security that can be used with the present
system and method include, but are not limited to, the
following:
[0038] 1) The recipient merely asserts that he/she is the intended
addressee.
[0039] 2) The recipient proves that he/she is the addressee through
password, SSN, EIN or PIN.
[0040] 3) The recipient proves that he/she is the addressee through
PC signature identification.
[0041] 4) The recipient proves that he/she is the addressee through
digital certificate or PKI.
[0042] 5) The recipient proves that he/she is the addressee through
random number generator card/smart card.
[0043] 6) The recipient proves that he/she is the addressee through
biometric scan retinal/fingerprint/voice print.
[0044] Depending on the amount of cash enclosed inside the digital
funds holder, the sender may wish to vary the level of endorsement
security. For example, the rules of the digital funds holder may
specify a password for a $100 amount, no security for a $10 amount,
a digital certificate for $1,000, a smart card for $10,000 and a
retinal scan for $1,000,000. The level of endorsement security is
left up to the sender.
Role of the Clearing Agent
[0045] Senders must register the first time they use the
application software to either send cash to the traditional banking
system or to take cash from the traditional banking system and
download it to a digital cash file.
[0046] The clearing bank holds all cash inside digital funds
containers in a deposit account for benefit of the registered
owner. Each transaction generates a unique check number. Senders
have the option of informing the clearing bank, e.g., via automated
e-mail, of the identity of all recipients of cash inside digital
funds containers that they transmit, or not to inform the clearing
bank.
[0047] Recipients of cash inside digital fund containers also have
the option of notifying the clearing bank, e.g., in an automated
fashion via, e.g., e-mail of receipt of cash inside a digital funds
container to legally transfer the funds and avoid "bounced checks".
Since unlimited copies of the digital funds containers which
contain digital cash can be made, the rules of the network will be
established so that the first digital funds container "check" to
clear with that unique check number owns the cash held at the
clearing bank. The digital funds container "check" clears when the
recipient informs the clearing bank, e.g. in an automated fashion
via, e.g., e-mail of receipt of cash inside a digital funds
container.
[0048] If a sender's computer crashes while digital cash is
resident on the system, the money is not lost if registered, since
the funds are actually registered with and held by the clearing
bank in a deposit account for the benefit of the owner.
[0049] Recipients of cash inside a digital funds container can opt
not to register the cash but they risk loss of the cash or having
to reconstruct payments received from whomever sent them the money
in the first place.
[0050] The clearing bank can establish rules on the cash held at
the custodian deposit account. These accounts could be for the
benefit of a correspondent bank that in turn has a direct
relationship with the consumer, or the accounts could be held in a
direct relationship with the consumer. Accounts held at clearing
banks or correspondent banks could be interest paying or
non-interest paying, entail fees or not entail fees at the option
of the banks based on cost, profitability targets or strategic
plan.
Sending, Receiving And Accessing Cash Inside a Digital Funds
Container
[0051] Following is a detailed procedure for transferring digital
funds in accordance with one embodiment of the invention. FIG. 6 is
a flowchart schematically representing the procedure.
[0052] To start the process, the system determines whether
application software is resident on the user's computer in step
600. If not, in step 605, the user is queried as to whether
application software should be loaded onto the user computer or,
alternatively, accessed from a remote server over a network for
temporary use. To initiate a transfer of cash, the user activates
the digital funds container in step 610 and clicks on the Send
Money option in step 615. The options in the digital funds
container are Send Money, Send Money to Bank, and Get Money from
Bank.
[0053] If the user selects the Send the Money option in step 615
without further indicating a desire to send money to a bank, a
dialog screen appears in step 630 that says: [0054] "List name and
e-mail address of who you want to send money to." A form appears
underneath this message, which has entry blocks for name, e-mail
address and the amount of money to be transferred. Under
alternative embodiments, the form also includes a multi-currency
option. Under another alternative embodiment, the user has the
option to exchange one currency designated in funds database 354
for another through the clearing bank.
[0055] When the sender clicks the Done button, a dialog screen
appears which asks to confirm the information. Options are also
presented if the sender wishes to receive a confirmation that the
cash was received by the recipient, step 670, and another box to be
checked if the sender wishes to notify the clearing bank of the
transaction (not shown in FIG. 6). If the Okay button is selected,
then a dialog box appears which asks the sender, in Step 680, to
define the security required for the digital currency file to be
opened by the recipient of the cash. A list of boxes that can be
checked is presented with this pop-up dialog screen. When the Okay
button is selected a digital currency file with the cash enclosed
is created and saved in the user's digital funds container folder
under a shortened name of the recipient and the date.
[0056] In the best of all worlds, the sender' e-mail system is then
automatically booted up and a new e-mail message created with the
e-mail address of the recipient already listed and the file with
the cash inside a digital funds container already attached and
ready to transmit. In the most likely scenario, the digital funds
container software will then prompt the sender to activate the
e-mail system, create a new e-mail message and manually attach the
file with the cash inside a digital funds container as a file
attachment to the e-mail manually created by the user. The sender
can type any message in the e-mail text or subject line. For
example, the subject can be the sender's account number or invoice
number in the event that a payment is being sent to a large
corporation such as a utility or credit card vendor. The e-mail
text can be a personal greeting or any other message. When
finished, the sender clicks on the Send button and the e-mail with
the attached digital funds container containing a digital currency
file is sent to the intended recipient in step 685.
[0057] If the file is lost or returned, the money is not lost,
since a copy of the digital currency file is still resident on the
sender's system as well as in funds database 354, and a second
e-mail can be sent. If the file is intercepted, it can only be
opened and the cash extracted if the recipient can endorse the
digital cash file with the required security clearance and is the
first to register the transaction with the clearing bank. Under
alternative embodiments, the digital cash file must be opened by
the recipient within a certain time limit to prevent brute force
attacks on the security protocol.
[0058] If the sender requested any optional confirmations, they
will receive one or more of an e-mail from the clearing bank
acknowledging transfer of title of the funds to recipient and a
unique check number for confirmation purposes, an e-mail from the
recipient acknowledging receipt of the e-mail with the cash inside
a digital funds container, and e-mail from the network that the
e-mail was delivered to the recipient and a time it was sent.
[0059] In step 700, where the application software is already
installed on a recipient's computer, to download cash inside a
digital funds holder the recipient of an e-mail with an attachment
with cash inside a digital funds holder simply clicks (or otherwise
activates) on the attachment, or when the digital funds holder is
transmitted as a stand-alone file, clicks (or otherwise activates)
on the file.
[0060] In step 705, depending on the endorsement security and
whether or not it is automated, the user is either challenged for
identification purposes or automatically authorized. The following
identification methods could be automated: PC signature
identification; digital certificate or PKI. The following methods
would entail an identification challenge: request to verify name
only; request for password, SSN, EIN or PIN; request for number
password generated from random number generator card or smart card;
request for personal identification through biometric scan, retinal
scan, fingerprint scan or voice print. Other security
identification methods could be used which are either automated or
require identification challenge.
[0061] If the identification challenge is not met, the digital
funds container cannot be opened and the cash or representation of
cash inside the digital funds container cannot be accessed, used or
transferred from the digital funds container.
[0062] Once the endorsement is authorized by the digital funds
container, a pop-up dialog menu asks, in step 710: [0063] "Do you
wish to transfer the cash to a digital cash file on your PC for
future digital payments, or do you wish to transfer the cash to
your traditional bank account?"
[0064] If the user selects the Keep the Cash Here option, the cash
is enclosed inside a digital currency file held on the user's PC or
on the network, in step 715. If the user selects the Send the Money
to my Bank option, a dialog screen asks: [0065] "Do you wish a
regular transfer or express transfer?"
[0066] If the user selects the Regular Transfer button, a dialog
screen asks: [0067] "This service costs $0.05 and the fee will be
deducted from the amount you send. The cash will be transferred
within 2 days to your account via the Automated Clearing House
system. Do you wish to continue?" An option to show this screen
each time can be selected or unselected to speed users who are
familiar with the system.
[0068] If the user selects the YES button, a dialog screen
instructs the recipient, in step 720, to: [0069] "Please enter your
Bank's ABA number or Routing and Transit Number, your account
number, your name and the amount you wish to send. If you need help
click here."
[0070] A form is presented with this screen to enter the ABA
number, account number, user's name and the amount to be sent. If
the help button is clicked, a picture of a check appears with
instructions to "look at your checks in your checkbook to find
these numbers" which are circled and defined with picture examples
given.
[0071] When done, the user clicks on the Ready To Send button. The
information is then confirmed, and if the user clicks on the Okay
button, an e-mail is transmitted to the clearing bank with the cash
inside a digital funds container. On the final dialog screen, the
user can check a box that says "please send confirmation receipt to
me". Per the rules encoded in this digital funds container, only a
clearing bank will be able to open and access this cash inside the
digital funds container.
[0072] If the user selects the Express Transfer button, a screen
appears with the following message and available options: [0073]
"This service costs $10.00 and the fee will be deducted from the
amount you send. The cash will be immediately credited to your
account via electronic funds transfer. Do you wish to
continue?"
[0074] If the user selects the YES button, a dialog screen asks the
recipient to: [0075] "Please enter your Bank's ABA number or
Routing and Transit Number, your account number, your name and the
amount you wish to send. If you need help click here."
[0076] An option to show this screen each time can be selected or
deselected depending on whether users are familiar with the system.
The same process and screen are then presented as with the ACH
Regular Transfer version of the process described above.
[0077] Under alternative embodiments, an option to send funds via
the SWIFT system or other secure traditional banking or other
alternative funds transfer systems is available to the user.
[0078] Any terms which are unfamiliar to typical users such as ACH,
electronic funds transfer, ABA number, Routing and Transit Number,
Account Number and SWIFT can be highlighted and have a hyperlink to
a definition or explanation.
[0079] When application software is not resident on a recipient's
computer but is instead accessed via a network, the procedure is as
follows. When the recipient of an e-mail with an attachment with
cash inside a digital funds container, or a stand-alone digital
funds container who does not have application software installed on
his/her PC clicks on the e-mail file attachment, they will first
receive the following message, in step 695: [0080] "No application
software detected on your PC. Do you wish to download this
application software plug-in or to do you wish to access the
application software plug-in from the network without downloading
this software to your computer's hard disk?"
[0081] If the recipient clicks on the Access Via Network button,
they will be connected with the clearing bank's network server who
holds the cash on deposit enclosed inside the digital cash file.
While connected, they will be able to use and move the cash inside
the digital funds container. If not connected, the recipient will
not be able to access the digital funds container, but will be
prompted to log in to, e.g., their internet service provider, local
area network, or other distributed computer network to access the
necessary application software. This procedure might be applicable
where a recipient would like to try the digital funds transfer
technology without spending the time to download the application
software as a trial of the technology.
[0082] Application Software is downloaded as follows. If the user,
sender or recipient, clicks on the button Download Application
Software, they are taken to the clearing bank's network server who
holds the cash on deposit enclosed inside the digital cash file.
There the application software is downloaded in an automated
fashion. The application software, e.g., an InterRights Point.TM.,
is typically about 10 MB in size, which means that at 28 k, it will
take about 7.5 minutes to download. At 56 k, it will take 3.75
minutes. Obviously at higher connection speeds such as DSL, cable
modems or other broadband technologies, the downloading time will
be quite a bit faster. Under alternative embodiments, a single
purpose InterRights Point.TM. is embedded in the digital funds
container. The single purpose InterRights Point.TM. is much smaller
in size, i.e., less than 1 MB in size. However, its functionality
is limited to digital funds transfer. A regular InterRights
Point.TM. can be used with many different digital rights management
software applications, e.g. technologies to protect the security of
MP3 files, intellectual rights or database data.
[0083] Once downloading is completed, the user will have the option
to register or not, and to be anonymous or not with respect to any
e-mail list with information on updates and other compatible
technology from the software vendor or the clearing bank. Once the
application software is downloaded, the procedure will initiate
from the beginning of the scenario described above where
application software is already installed.
[0084] If the user selects the Get Money from Bank option in step
625, a dialog screen asks: [0085] "Do you wish a regular transfer
or express transfer?"
[0086] If the user selects the Regular Transfer button, a screen
pops up that says: [0087] "This service costs $0.05 and the fee
will be deducted from the amount you send. The cash will be
transferred within 2 days to your account via the Automated
Clearing House system. Do you wish to continue?" An option to show
this screen each time can be selected or unselected to speed users
who are familiar with the system.
[0088] If the user selects the YES button, a dialog screen appears
that says: [0089] "Please enter your Bank's ABA number or Routing
and Transit Number, your account number, your name and the amount
you wish to send. If you need help click here." A form is presented
with this screen to enter the ABA number, account number, user's
name and the amount to be sent in step 635. If the help button is
clicked, a picture of a check appears with instructions to "look at
your checks in your checkbook to find these numbers", which are
circled and defined with picture examples given.
[0090] When done, the user clicks on the Ready to Send button. The
information is then confirmed, and if the user clicks on the Okay
button, an e-mail is transmitted to the clearing bank with the
request to transfer cash back to the user via an e-mail with
attachment with cash inside a digital funds container. On the final
screen, the user can check a box that says "please send
confirmation receipt to me". Other boxes give an option to have an
e-mail confirmation that the message was sent or require the
recipient to confirm that the message was received. Per the rules
encoded in this digital funds container, only a clearing bank will
be able to open and access this e-mail attachment inside the
digital funds container. Once the clearing bank receives the
e-mail, an e-mail with attachment with a message inside a digital
funds container is automatically sent back to the user confirming
the transaction requested and the date the transaction will occur.
In alternative embodiments, the clearing bank issues to the sender
an identification challenge similar to that in step 705 to ensure
the identity of the sender of an e-mail requesting withdrawal of
funds from the clearing bank.
[0091] In the event that the option is clicked requiring the
recipient to confirm that the e-mail was received, the first
message received when the file attachment is double-clicked is
"please confirm receipt of message by reply to sender". The sender
must send an e-mail confirming receipt before the digital funds
container can be opened.
[0092] On the date of the transfer, if the account has insufficient
funds, an automated message is sent to the user notifying them of
this fact with a due bill for the overdraft fee. In alternative
embodiments, the overdraft fee is waived, or overdraft protection
on the account is activated and the funds provided anyway. If the
account has sufficient funds, an e-mail is automatically generated
by the clearing bank with a file attachment with cash inside a
digital funds container. The user then receives the digital
currency file in step 645 and satisfies the appropriate security
criteria in step 650. The user is then prompted to indicate, in
steps 655, 660 and 665, whether the funds are to be stored in
digital form for future use or transferred to a traditional bank
account as follows: [0093] "Do you wish to transfer the cash to a
digital cash file on your PC for future digital payments, or do you
wish to transfer the cash to your traditional bank account?"
[0094] If the user selects the Express Transfer button, a dialog
screen appears that says: [0095] "This service costs $10.00 and the
fee will be deducted from the amount you send. The cash will be
immediately credited to your account via electronic funds transfer.
Do you wish to continue?"
[0096] If the user selects the YES button, a dialog screen asks the
user to: [0097] "Please enter your Bank's ABA number or Routing and
Transit Number, your account number, your name and the amount you
wish to send. If you need help click here." An option to show this
screen each time can be selected or unselected to speed users who
are familiar with the system.
[0098] The same process and screen are then presented as with the
ACH version of the process, except that the clearing bank sends the
transaction through to the traditional FedWire system if the name
and account information match. It is important to note that for
security reasons it is inadvisable to accept requests to send or
receive money through the traditional FedWire system or ACH system
when the user is not strictly using their own account. As the
security technology matures and a comfort level is created,
clearing banks may begin to allow users to access the system for
other purposes such as person to person transfer of funds, or
corporate to person transfer of funds.
[0099] Closer integration of the digital funds container technology
with traditional e-mail and browsers will facilitate ease of use.
The system and method as described above is very easy and user
friendly.
[0100] It will be apparent to those skilled in the art that various
modifications and variations can be made in the system and
processes described herein without departing from the spirit or
scope of the invention. Thus, it is intended that the present
description cover all modifications and variations provided they
come within the scope of the appended claims and their equivalents.
In this context, equivalents mean each and every implementation for
carrying out the functions recited in the claims, even if not
explicitly described herein.
[0101] While the best mode for carrying out the preferred
embodiment has been illustrated and described in detail, those
familiar with the art will recognize various alternative designs
and embodiments that fall within the spirit of the system and
method described herein. The appended claims are intended to cover
all those changes and modifications falling within the true spirit
and scope of the present system and method.
* * * * *