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Patent 1313711 Summary

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Claims and Abstract availability

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(12) Patent: (11) CA 1313711
(21) Application Number: 564291
(54) English Title: CARD OPERATED VENDING MACHINE
(54) French Title: DISTRIBUTRICE ACTIONNEE PAR CARTE
Status: Deemed expired
Bibliographic Data
(52) Canadian Patent Classification (CPC):
  • 221/40
  • 352/53.74
(51) International Patent Classification (IPC):
  • G07F 7/06 (2006.01)
  • G07F 7/00 (2006.01)
(72) Inventors :
  • KING, RICHARD TREVOR (United Kingdom)
(73) Owners :
  • SANKEY VENDING LIMITED (United Kingdom)
(71) Applicants :
(74) Agent: RIDOUT & MAYBEE LLP
(74) Associate agent:
(45) Issued: 1993-02-16
(22) Filed Date: 1988-04-15
Availability of licence: N/A
(25) Language of filing: English

Patent Cooperation Treaty (PCT): No

(30) Application Priority Data:
Application No. Country/Territory Date
8709234 United Kingdom 1987-04-16

Abstracts

English Abstract



ABSTRACT

A machine primarily for renting articles, e.g. video
cassettes by the use of a club card and in which there is
provided a memory (29) in which is recorded a card credit
or a credit limit for a user of the machine when the
user first passes the club card through a card reader on
the machine, renting transactions being arranged to
reduce the card credit in the memory.


Claims

Note: Claims are shown in the official language in which they were submitted.




THE EMBODIMENTS OF THE INVENTION IN WHICH AN EXCLUSIVE
PROPERTY OR PRIVILEGE IS CLAIMED ARE DEFINED AS FOLLOWS:
1. A vending machine operable by the use of a club card
having information recorded thereon including an
identifying code, the machine including: a card reader
capable of reading said information; enabling means
associated with the card reader for setting the machine
for operation by a user who has passed a valid club card
through the card reader; a memory; means responsive to
the passage of a club card through the card reader for
the first time to record in the memory a credit or credit
limit (the card credit) for that club card; input means
to allow a user to select an article or service to be
vended, comparator means to compare the card credit held
in the memory for the club card which has been read by
the card reader with the cost of the selected article or
service and to enable the dispensing of the article or
rendering of the service if the card credit is equal to
or greater than said cost; and control means to allow the
dispensing or effecting of the selected article or
service to the user when enabled by the comparator
means and to reduce the card credit by said cost.

2. A vending machine according to Claim 1 wherein the
means for recording the card credit in the memory sets a
common card credit for each club card the first time that
the card is passed through the card reader.

3. A vending machine according to Claim 1 for use with
a club card having credit information recorded thereon
and wherein the card credit is recorded in the memory as
a result of the club card being passed through the card
reader for the first time.


16
4. A vending machine according to any one of Claims
1 to 3 for use with a club card having date information
recorded thereon and wherein the enabling means does not
set the machine for operation if the club card read by
the card reader is out of date.

5. A vending machine according to any one of Claims 1
to 3, wherein the machine is arranged to enable a user to
establish a card credit by first using a debit or credit
card, the machine including means for connection to a
remote terminal to obtain authorisation of the amount of
the card credit, and secondly by passing a club card
through the card reader to record the authorised card
credit in the memory.

6. A vending machine according to Claim 1, including
disabling means to prevent the vending of an article or
service by the use of a club card having a card credit
which is zero, negative or less than the cost of the
article or service selected by the user unless the user
increases the card credit at least to equal the cost.

7. A vending machine according to Claim 6 including
means to issue a credit note if the card credit is less
than a predetermined amount while reducing the card
credit to zero.

8. A vending machine according to Claim 1, wherein the
input means is operable, when a card credit is less than
a predetermined amount, to accept part payment from the
card credit and to reduce the card credit to zero.

9. A vending machine according to any one of Claims 1
to 3, wherein the machine is arranged to enable a user to


17

obtain the selected article or service by using two club
cards in sequence when the card credit of the first-used
card is insufficient to meet the cost of the article or
service selected by the user.

10. A vending machine according to Claim 8 including
means for receiving money (i.e. coinage and/or notes)
to pay at least in part for the selected article or
service.

11. A vending machine according to Claim 1, arranged for
renting re-usable articles, e.g. video tape cassettes,
wherein the comparator means compares the card credit
with an initial rental cost of the selected article for
an initial period (which cost may include a security
amount equivalent to the value of the article) and
enables the dispensing of the article if the card credit
is equal to or greater than the said cost, and wherein
the input means allows a user to return an article after
renting.

12. A vending machine according to Claim 11 wherein each
article carries a code and the machine includes timing
means to record the actual time period between the rental
and return of an article and, if said actual period is
greater than said initial period, to reduce the card
credit by additional rental fees corresponding to the
difference between the actual and initial periods.

13. A vending machine according to Claim 12 wherein, if
said actual time period exceeds a pre-determined limit,
the control means operates to prevent the article being
returned to the machine and the card credit is reduced
by a figure representing the value of the article or to

18
zero or a negative amount if said figure is greater than
the card credit.

14. A vending machine according to Claim 12 wherein, if
said actual time period exceeds a predetermined limit,
the machine prints out details of the rental transaction
to enable the machine operator to take steps to recover
the article.

15. A vending machine according to any one of Claims 1
to 3 wherein,when a user first passes his club card
through the card reader on the machine to establish the
card credit he is required to enter a personal
identification number (PIN) into the memory and wherein
all subsequent transactions involving that club card also
require the input of the PIN.

16. A group of vending machines according to Claim 1,
which are interlinked so that their memories contain
common information on the card credits of the club cards
usable in the group of machines, the machines being
modified so that the card credit of a club card is
recorded in the memories of all the machines of the group
the first time that the club card is passed through the
card reader in any of the machines of the group, the card
credit then being decreased in all of the memories by
transactions using the club card on any of the machines
in the group.

17. A group of machines according to Claim 16, wherein
the memories of all the machines in the group contain the
PINs of each of the club cards having a card credit in
the memories.

Description

Note: Descriptions are shown in the official language in which they were submitted.


1313711


87012GBl/BCR CARD OPERATED VENDING MACHINE

This invention relates to vending machines. Such
machines are arranged to dispense an article or to effect
a service or to rent a reusable article and accept its
return. The term "vending machine" in the present
application is intended to cover all three of the
foregoing aspects.

Vending machines are usually arranged to operate
either upon the insertion of money or upon the insertion
of a card or token. It is known that to use, for the
operation of vending machines, cards having an encoded
magnetic stripe and which have the ability to be read and
re-written and for the information on them to be changed
by being fe~ through an appropriate card reader.

Thus it is known to purchase such a card and for the
card to have the amount of credit written thereon in a
manner to be read by a card reading and writing device on
the machine. To operate the machine the user places the
card in the device on the machine which identifies the
user and reads the amount of credit. Assuming that the
credit is sufficient, the machine then dispenses the
article and decrements the amount of credit on the card
by the cost of the article or service which pas been
vended and re-writes the remaining credit on the card
which is then returned to the user.

In order to be able to use this type of card, a
comparatively sophisticated card reading and writing
device has to be used which receives the card from the
user and holds it while the necéssary entries are being
made on the card.
'~

2 i3~371~


In a vending machine, the cost of such a
sophisticated card reading and writing device would be a
significant part of the cost of the machine and it is
therefore an object of the present invention to provide a
vending machine which can use a simple card reader, known
generally as a "wipe-through" card reader, which has a
capacity to read only what is on the card and cannot
change the information thereon.
.
It is also known to have vending machines which can
be operated by the use of credit or debit cards. The
user inserts his card into the machine, which contains a
modem connected to an authorising source, and indicates
the credit that he requires'. After this credit is
authorised it is decremented as transactions take place,
each transac~tions is downloaded from the memory and
billing is carried out centrally. This arrangement
requires a modem in the machine and the requirement to
download each transaction, i.e. each debit and credit
transaction, from the machine for billing purposes.

It is an object of an aspect of the invention to
provide a vending machine in which, although in some
embodiments credit can be obtained by use of a credit or
debit card, it is not necessary to download each vending
transaction, i.e. each credit and debit transaction,
from the machine for billing purposes. Only the original
debit or credit transaction is used for billing purposes.

According to the invention we provide a vending
machine operable by the use of a club card having
information recorded thereon including an identifying
code, the machine including: a card reader capable of
reading said information; enabling means associated with
the card reader for setting the machine for operation by

3 ~3137~.~


a user who has passed a valid club card through the card
reader; a memory; means responsive to the passage of a
club card through the card reader for the first time to
record in the memory a credit or credit limit (the card
credit) for that club card; input means to allow a user
to select an article or service to be vended, comparator
means to compare the card credit held in the memory for
the club card which has been read by the card reader with
~ the cost of the selected article or service and to enable
the dispensing of the article or rendering of the service
if the card credit is equal to or greater than said cost;
and control means to allow the dispensing or effecting of
the selected article or service to the user when enabled
by the comparator means and' to reduce the card credit by
said cost.

The term "club card" is used herein to mean a card
which is special to the vending machine or group of
vending machines in which it is used as distinct from a
general purpose debit or credit card. It is envisaged
that the users of the cards could belong to a "club"
associated with the machine or group of machines.

The essence of this machine is that the card credit
is held in the machine memory rather than on a card or
other means and that the card credit is esta~lished in
the memory by the first use of the club card in the
machine or, if a group of machines as described above is
interlinked, by the first use of the club card in a
machine of the group.

The card credit may be set by the operator, all
club cards having the same card'credit~ Alternatively
information corresponding to the initial card credit may
be "written" on the club card and this may establish the

4 1313~1


card credit. In either event, when the club card is
first used in the machine the credit or credit limit of
the user (herein called the card credit) is recorded in
the memory.

The club card may be pre-paid, i.e. the user may
purchase the club card for the amount of the card credit<
Alternatively, the club card may permit the user to use
'` A the machine up to a predetermined credit limit.

The machine may include disabling means to prevent
operation by the use of a club card which has a card
credit which is zero, negative or less than the cost of
the article or service sele'cted by the user. If the card
credit is positive but less than said cost the machine
may be arranged to issue a credit note and reduce the
card credit to zero.

Since the memory in the machine will have a finite
capacity it is envisaged that club cards will have a
period of validity of several months after which they
will not be accepted by the machine. Thus the machine
may be arranged for use with a club card having date
information recorded thereon and the enabling means may
be arranged not to set the machine for operation if the
club card is out of date.

At some stage, the card credit or credit limit will
be decreased below the cost of the article or service
that the user wishes to obtain or rent. In such a case
the machine may be arranged to enable a user to obtain
the selected article or service by using in the card
reader a second club card when he card credit of the
first card is insufficient to meet the cost.

13137~1


The machine may be arranged to receive money (i.e~
coinage and/or notes) to pay, at least partly, for the
selected article or service.

The machine may be arranged to enable a user to
establish a card credit by using a debit or credit card,
the machine having means for connection to a remote
terminal to obtain authorisation of the card credit e.g.
from the issuer of the credit or debit card or an
intermediate management company, the credit being
recorded in the memory by passing a club card through
the card reader to record the authorised card credit in
the memory.

Specifically, the vending machine may be arranged
for renting re-usable articles, e.g. video tape
cassettes. In such a machine the comparator means
compares the card credit with the initial rental cost of
the selected article for an initial period. This cost
may include a security amount equivalent to the value of
the article. The input means is arranged to allow a user
to return an article after renting.

In such a rental machine, each article will carry a
code and the machine may include timing means to record
the actual time period between the rental an~d the return
of the article and, if said actual period is greater than
the initial period to reduce the card credit by the
additional rental fees corresponding to the difference
between the actual and initial periods~ The machine may
be arranged so as not to accept the article on its return
if it has been kept for more than a predetermined period.
Alternatively the machine may ~ccep~ the articles
whenever returned within the validity period of the club
card but be arranged to print a list of articles which

6 1~13'~1


are overdue, i.e. have been kept for more than said
predetermined period to enable the operation of the
machine to chase up the users to seek return of the
articles.

As additional security, the machine may be arranged
so that when a user first passes his club card through
the card reader to establish the card credit, he is
required to enter a personal identification number (PIN)
into the memory and all subsequent transactions involving
that club card also require the input of the PIN.

This arrangement has the advantage that since the
PIN is in the memory of the'machine rather than on the
card, the card cannot be read by an unauthorised user to
establish w~at the corresponding PIN is. The user will
select his PIN at random when first using his club card.

The vending machine thus far described may be a
stand alone machine. Alternatively, a group of vending
machines may be interlinked so that their memories
contain common information on the card credits of the
club cards usable in the group of machines. In this
arrangement the machines will be modified so that the
card credit of a club card is recorded in the memories of
all of the group of machines the first time t~hat the club
card is passed through the card reader of any of the
machines of the group, the card credit then being
- decreased in all the memories by transactions using the
club card on any of the machines in the group~

This arrangement gives the user access to a number
of machines and therefore a greater selection of goods or
services than can be carried by one machine while still
retaining the advantages of the invention, i.e.

7 13~


simplified accounting and the ability to use an
unsophisticated, wipe-through card reader~

The invention will now be described in detail by way
of example with reference to a machine for renting video
tape cassettes and with reference to the accompanying
drawings in which:-

Figure 1 is a perspective view of a machineembodying the invention;

` Figure 2 is a block diagram of the circuit of the
machine; and

Figure 3 is a simplified flow chart of the machine.

Referring first to Figure 1, the machine comprisés a
master unit 10 and a slave unit 11 which are connected
together. Further slave units can be physically
lS connected to the unit 11 and electronically connected to
the master unit 10.

The master unit 10 contains a control pan~el 14 which
in turn contains a display 15, a "wipe-through~ card
reader 16, a key pad 17, a coinage mechanism 18, a bar
code reader 19, and a printer outlet 21.

The cassettes are received in columns of
compartments. There are four such columns of
compartments indicated generally at 22, 23, 24 and 25.
The columns 22 and 23 are in the master unit, the column
23 being below the control panel, and the columns 24 and
25 are in the slave unit. Each column comprises a group
of compartments some of which are indicated in the column
22 at 26~ Each compartment comprises a pocket, not

1313~11




shown, which is pivotted about a vertical axis and
contains a cassette. The poc~et is latched shut but the
control means of the machine can release the latch so
that the pocket pivots outwardly to allow a user to
remove a cassette. When the user returns the cassette an
empty pocket will be opened, as will be described, the
user then returns the cassette to the comp~rtment and
closes it. Appropriate mechanism is shown in
International Application No. PCT~GB87/00197
(International Publication No. W0 87/05730) published
24 September 1987 to which reference should be made.

Referring now to Figure 2, the machine comprises the
groups of compartments which in this figure are indicated
at 27 and which are controlled by control means indicated
schematically at 28. The control means is connected to
the display 15, the card reader 16, the key pad 17 and
the coinage mechanism 18. The bar code reader 19 is
connected to the control means 28 as is the printer 21
and a memory 29.

The machine is arranged to be operated by a club
card as described above. Thus a user may purchase a club
card for a given sum and this will entitle him to a
certain number of rentals or he may be allowed a number
of rentals on credit.

The sequence of operation of the machine is,
referring to Figures 2 and 3, as follows. The user will
pass his club card through the card reader 16. This will
read the information on the card including an
identification code for the user. If this is a valid
identification code, and normally a club card will only
be usable on one machine unless a group of machines is
inter-linked as described below, the user will be enabled

9 131~711


to use the machine. The first time that the club card is
passed through the card reader 16 it will establish a
credit, the card credit, which will be stored in the
memory 29 against the identification code on the card.

The card credit may be set to a common value for all
users by the machine operator so that when the card is
first passed through the card reader the card credit is
`~ ~ set in the memory against the identification code on the
card. Alternatively the user or a code on the card may
"select" one of a number of card credits pre-programmed
into the machine and record this in the memory when the
card is first used in the machine. Yet again an amount
may be pre-programmed on th'e card and this amount set up
as a card credit the first time that the card is used in
the machine~

When a user first passes his club card through the
card reader on the machine he may also be required to
input, by means of the key pad 17, a personal
identification number (PIN). This PIN will be recorded
in the memory 29 and for all subsequent transactions
using the club card the PIN will have to be input by the
key pad 17 to enable the machine to operate.: This
arrangement has the advantage that since the PIN is
recorded in the machine memory rather than o~ the card,
there is no way in which an unauthorised possessor of the
card will be able to read the PIN on the card and thus
use it in the machine.

Referring now to Figure 3, the sequence will be that
the user will be asked if he wishes to rent a cassette.
Assuming he says 'yes' by opera~ion of the key pad 17 he
will be asked to insert the appropriate compartment
number also by means of the key pad~ The compartments

13 1 ~



have transparent fronts so that the user can see through
the front of the compartment the cassette which he
requires.

Preferably each of the compartments will be
numbered. Alternative arrangements may be made for
selection of the desired compartment, for example each
compartment may have an operating button by its side or
' ` ` A there may be a series of numbered buttons or any other
convenient means may be used to identify the compartment
required.

The machine will then display on the display how
much the cassette rental costs and ask if this is
acceptable. If the user says 'yes' by appropriate
operation o~ the key pad then the control means will
operate to open the selected compartment from which the
user will take the cassette. After the user has taken
the cassette he will close the compartment. There will
be an audible signal if the compartment is left open and
the machine will be disabled until the compartment is
closed.

The control means and the memory will operate so as
to decrease the card credit in the memory by the amount
- of the rental charge for the cassette. The ~ental charge
will be computed for an initial period, for instance 24
hours, and may or may not include a security amount equal
to the value of the cassette. After the initial period,
the rental for additional periods will be debited to the
card credit. Alternatively on return of the cassette the
actual total rental cost is debited.

The memory will also record that the compartment
from which the cassette has been removed is empty.

ll 1313711

If the machine is fitted with a printer as indicated
then the printer can be arranged to print out a receipt
showing the amount which the user has been debited.

Each cassette has an identifying code. This may be
a number and/or may be a bar code. When the user wishes
to return the cassette he will pass his club card through
the card reader 16 which will identify him. Assuming
that the cassette has been returned within the maximum
allowable rental period the user may then enter the
number of the cassette on the key pad 17 or, if a bar
code reader such as 19 is provided, may place the
cassette in front of the bar code reader which will read
the code on the cassette. Figure 3 shows the series of
operations. When the machine has received a valid
article code number the control means will open an
empty compartment for the receipt of the cassette and
the user will then close the compartment, after
inserting the article, and the transaction is complete.
Each compartment contains means for detecting whether or
not a valid article has been inserted into the
compartment.

If the cassette has been retained by the user for
a period greater than the initial rental period then
additional rental charges are made against the card
credit as described above. If these charges are greater
than the card credit in the memory then the card credit
is reduced to zero and the user will be unable to use the
machine unless he discharges the debit. He may do this
in the machine described by inserting an appropriate
amount of money in the coinage mechanism 18, the amount
of money being displayed by the display 15.
Alternatively, the machine may be arranged to enable the

12 131~711


user to discharge the debit by using a second club card
and the first time this second club card is passed
through the card reader 16 within a short period of time,
e.g. ten seconds, of the first "identifying" card, it
will record the credit appropriate to that club card in
the memory and against this will be debited any debit
held against that card by the memory.

If, when the user comes to return the cassette he
has retained it on rental for a period greater than a
predetermined period the machine may be arranged to
refuse the return of the cassette. The cost of the
cassette will then be debited to the card credit in the
memory and the user will be' deemed to have purchased the
cassette. Again, if this results in a debit balance in
the memory A t may be discharged by the user as mentioned
above. Alternatively the machine may be arranged to
accept return of a cassette even if it has been retained
for more than the predetermined time and to print out a
list of overdue cassettes and the users who have rented
them to enable the operator of the machine to take action
to recover the cassette.

It is envisaged that club cards will not be issued
except on proof of identity so that if a user fails to
return a cassette on time or does get into a debit
situation which he does not discharge on the machine he
will be billed by the owner of the machine for the debit
or contacted ~o return the cassette.

The machine will include disabling means to prevent
use of the machine by a user of a club card which has a
card credit which is zero, negative or less than a
predetermined amount, e.g. a multiple of the initial
rental charges. If the card credit is positive but less

13 131371~


than the rental cost of the cassette selected the machine
may reduce the card credit to zero and issue a credit
note which may be subsequently used against the purchase
of a fresh club card.

As has been described above, a club card may have a
period of validity and will contain date information and
when this has expired the club card will not be usable in
the machine.

The machine may be arranged to allow credit to be
established in the machine with the use of a credit or
automatic teller machine (ATM) card. This is effected by
first using the card reader' 16 for reading the e~g.
credit card. The user will then be asked to indicate how
much credit`he requires by operation of the key pad 17.
The machine will then go on line by means of a modem, not
shown, to a remote location to validate the credit to be
established. Then the user will pass his club card
through the card reader to establish the authorised
credit in the memory 29. The machine may be arranged to
issue a club card from the slot 30 in Figure 1 to a user
when a credit has been authorised as a result of the user
using a credit or ATM card.

The control means and memory will be so~arranged
that all the necessary information may be down-loaded
from the machine by plugging in, for example, a portable
computer printer or by a modem, if provided, to a remote
site. So far as the accounting records are concerned,
these will only need to be processed in so far as the
club cards have not been prepaid. Even in this case it
is only necessary to process thé card credit allowed
against each card rather than every debit and credit
transaction.

14 13137~1


The memory, as has been described, records the list
of empty compartments so that an empty compartment can be
opened when a cassette is returned. Moreover, when a
cassette is returned the memory will record, against the
cassette code, the compartment code so that a record is
retained of the movements of the cassettes and if a
cassette is returned in a damaged state the record will
show who the last renter of the cassette was.
.~
The machine has been described as being arranged for
rental of cassettes. Additionally it may be arranged to
sell cassettes and the flow chart in Figure 3 will be
modified accordinqly to give the user an opportunity of
deciding whether to rent or buy.

The machine has been described as a self-standing
machine with the club card being usable only in that
machine. However, a group of machines may be interlinked
so that their memories contain common information
regarding the card credit of each club card in use in the
group of machines. The machines will therefore be
modified so as to ensure that the first time that a club
card is used in any one of the machines of the group a
card credit will be established in the memories of all
the machines of the group. The card credit will be
decreased in all the memories as transactionS take place
using that card, the transactions may take place in any
one of the machines in the group.

The machine has been described as being a machine
for renting video tape cassettes, it could also be used
for renting other articles~ Moreover, the machine could
be used as a vending machine for vénding an article or a
service.

Representative Drawing
A single figure which represents the drawing illustrating the invention.
Administrative Status

For a clearer understanding of the status of the application/patent presented on this page, the site Disclaimer , as well as the definitions for Patent , Administrative Status , Maintenance Fee  and Payment History  should be consulted.

Administrative Status

Title Date
Forecasted Issue Date 1993-02-16
(22) Filed 1988-04-15
(45) Issued 1993-02-16
Deemed Expired 1996-08-17

Abandonment History

There is no abandonment history.

Payment History

Fee Type Anniversary Year Due Date Amount Paid Paid Date
Application Fee $0.00 1988-04-15
Registration of a document - section 124 $0.00 1989-01-17
Maintenance Fee - Patent - Old Act 2 1995-02-16 $100.00 1995-01-19
Owners on Record

Note: Records showing the ownership history in alphabetical order.

Current Owners on Record
SANKEY VENDING LIMITED
Past Owners on Record
KING, RICHARD TREVOR
Past Owners that do not appear in the "Owners on Record" listing will appear in other documentation within the application.
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Document
Description 
Date
(yyyy-mm-dd) 
Number of pages   Size of Image (KB) 
Representative Drawing 2002-03-20 1 22
Drawings 1993-12-07 3 89
Claims 1993-12-07 4 161
Abstract 1993-12-07 1 11
Cover Page 1993-12-07 1 12
Description 1993-12-07 14 551
PCT Correspondence 1992-11-20 1 23
Office Letter 1988-10-07 1 38
Prosecution Correspondence 1991-01-07 2 75
Examiner Requisition 1990-11-02 2 80
Fees 1995-01-19 1 70