Note: Descriptions are shown in the official language in which they were submitted.
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CARD-BASED SYSTEM AND METHOD
FOR ISSUING NEGOTIABLE INSTRUMENTS
FIELD OF THE INVENTION
The present invention relates generally to the issuance of negotiable
instruments.
More specifically, the present invention relates to pre-paying funds into a
transaction account
and subsequently drawing upon those funds through the remote issuance of
negotiable
instruments .
BACKGROUND
Although most consumers rely on checking accounts, credit cards or debit cards
to pay
for the goods or services they purchase, many consumers lack the financial
resources, credit
worthiness or financial discipline to qualify for, afford, or maintain such
financial services.
For example, some individuals consciously avoid establishing checking accounts
and the like
because of an actual or perceived inability to accurately track the account
balance and to
avoid overdrawing the account. Such individuals may also lack the resources to
maintain a
sufficient balance in a checking account to avoid a monthly service charge or
wish to avoid
the high interest rates charged by many credit card companies. Without access
to these
financial services, such individuals must generally rely on cash to pay for
the goods and
services they utilize.
Having to rely solely on cash presents its own problems, in particular,
safekeeping of
the cash, the temptation to spend the cash on hand, and concerns about theft
of any cash sent
through the mail to pay bills. Some banks and financial institutions do offer
"low cost" or
"basic" savings accounts. Such financial institutions usually restrict
services, offer "lower"
fees, and may waive minimiun balance requirements. However, such low cost
accounts
remain unappealing to many members of the cash based society because they tend
to be
offered through bank branches with limited hours and locations and ATMs which
may not be
local to the consumer. Furthermore, there is usually a credit check and an
approval process
associated with "low cost" accounts, which the cash based consumer might fail
because of
credit history or residence problems. In addition, the cash based consumer may
be worned
about garnishments or inconvenient service.
Some financial institutions offer debit card payroll solutions. For example, a
branded
check printing service may provide direct deposit capabilities for federal
benefzt checks in
exchange for a transaction fee. However, federal benefit check distribution
services do not
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allow multiple withdrawals in varied amounts. Transaction fees for these and
other debit card
payroll solutions tend to be expensive. There is currently no other banking
service offered to
the cash based society that provides direct deposit capability. In addition,
such debit card
accounts typically require use of a personal identification number to access
funds associated
with the debit card account to prevent unauthorized access to the account and
unauthorized
disbursement of the funds in the account. Although use of the personal
identification
numbers affords greater account security, many consumers avoid use of debit
cards, simply
because of the difficulty and inconvenience of having to remember their
personal
identification number along with all of the other passwords, access codes and
numbers one
typically has to remember.
Individuals may avoid the above-described drawbacks associated with
traditional
banking relationships by conducting business with Licensed Money Transmitters
or entities
that issue money orders. An example of a Licensed Money Transmitter is Western
Union. A
Licensed Money Transmitter is legally authorized to transmit funds, either by
wire, facsimile,
electronic transfer, courier or otherwise, within the United States or to or
from locations
outside the United States. A Licensed Money Transmitter may also be authorized
to sell or
issue checks, drafts, warrants, money orders, traveler's checks or other
negotiable
instruments. In some instances, a Licensed Money Transmitter may even be
authorized to sell
and/or exchange currency. Unlike traditional bank transactions, however,
transactions
handled by a Licensed Money Transmitter are not insured by the FDIC. Using a
Licensed
Money Transmitter, a customer can pay an agent of the Licensed Money
Transmitter a
selected monetary amount plus a transaction fee in exchange for a negotiable
instrument
payable to an entity to which the customer owes money and payable by the
Licensed Money
Transmitter. Using a money order or the like, the user can obtain negotiable
instruments to
mail to creditors instead of mailing cash. However, use of money orders does
not solve the
individual's problem of safekeeping his cash until needed and avoiding the
temptation to
spend the cash on hand.
Accordingly, there remains a need for a financial service that offers safe-
storage of
and access to funds, direct deposit capabilities, automated teller machine
(ATM) access,
convenient service points, etc, without requiring a traditional bank-customer
relationship.
SUMMARY OF THE INVENTION
The present invention meets the above-described needs by providing a system
and
method whereby an account holding institution may remotely issue prepaid
negotiable
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instruments to an individual without requiring a PIN. In one aspect of the
invention an
account structure is provided that allows an account holding institution
(which may or may
not be a bank or other financial institution) to provide deposit capabilities
for funds
representing pre-payments fox negotiable instruments. An individual account is
first
established by the account holding institution on its host computer system or
account hosting
server for each participating consumer or account holder. The account holder's
name and a
unique account number are associated with the account, and the account has the
ability to
receive direct deposits of funds on behalf of the individual.
When a request by the individual for the issuance of a negotiable instrument
is
detected at a remote station, the remote station transmits the account number
and the
requested monetary amount of the negotiable instrument to the account hosting
server. At the
account hosting server, the account number is verified to determine that the
account number
identifies the account. Then, a determination is made as to whether the value
of the requested
negotiable instrument plus any transaction fees charged is in excess of the
balance of the
account. If the value of the requested negotiable instrument plus any fees
charged to the
account holder is not in excess of the balance of the account, the issuance of
the requested
negotiable instrument to the individual is authorized.
Upon authorization, an instruction is provided to the remote station or device
to print
one or more negotiable instruments totaling the requested amount. The remote
device is also
instructed to print the name of the account holder (as reflected on the
account hosting server)
on the negotiable instruments as the payee of the negotiable instruments. In
this way, only
the account holder may cash or otherwise negotiate the negotiable instruments.
The requisite
security is provided, in that the party cashing the negotiable instrument
bears the risk if it
cashes the negotiable instrument without confirming the identity of the
cashing party as the
payee. In another embodiment of the invention, a restrictive legend may be
included on the
negotiable instruments, indicating that the instrument should not be cashed or
otherwise
negotiated without first obtaining proper identification from the payee. In
response to the
issuance of the requested negotiable instrument, the balance of the account as
reflected on the
account hosting server is debited by the value of the requested negotiable
instrument plus any
fees.
In another embodiment of the invention, the account holder is provided with a
card
that is used to access the account. The card includes a magnetic stripe or
other data storage
medium onto which the account holder's account number and/or name may be
encoded. The
card may then be utilized at the remote station to initiate requests for the
issuance of
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negotiable instruments. In addition, the account holder's name may be read
from the
magnetic stripe and used to fill in the payee information on the negotiable
instruments. The
card itself may also have traditional ATM and point of sale functionality
through the use of
an associated PTN number.
These and other aspects of the present invention will become apparent upon
review of the
following description with particular reference to the attached drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
FIG.1 is a functional block diagram illustrating the movement of funds through
an
exemplary account structure in an illustrative embodiment of the present
invention.
FIG. 2 is a functional block diagram illustrating the process flow of an
illustrative
embodiment of the present invention.
FIG. 3 is a functional block diagram illustrating an exemplary financial
network
environment for an illustrative embodiment of the present invention.
FIG. 4 is a functional blocl~ diagram of a computer system illustrating an
operating
environment for illustrative embodiments of the program modules of the present
invention.
FIG. 5 is an illustration of an exemplary account card of the present
invention.
FIG. 6 is an illustration of an exemplary anonymous account card of the
present
invention.
FIG. 7 is a flow diagram illustrating an exemplary method for processing
transactions
associated with an anonymous account card.
FIG. 8 is a functional block diagram illustrating a modified embodiment of the
system
and process for issuing negotiable instruments of the present invention.
FIG. 9 is an illustration of the reverse side of an account card utilized to
access an
account through the process and system of the present invention.
FIG.10 is an illustration of a blank negotiable instrument used in the process
and
system of the present invention.
FIG.11 is a process flow diagram illustrating the process for issuing
negotiable.
instruments of the modified embodiment of the present invention.
DETAILED DESCRIPTION
The present invention comprises a system and method for a financial
institution or
account hosting entity to maintain customer accounts or transaction accounts
in which its
customers may deposit funds for safekeeping and to provide the customer remote
access to
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the deposited funds through the issuance of negotiable instruments made
payable to the
account holder and drawn on the account of the financial institution to be
reimbursed by
funds available in the customer's account. Funds deposited in an account by a
customer may
generally be considered advance payments for negotiable instruments. The
accounts
maintained by the account hosting entity are accessible online or through a
phone connection
and may comprise non-interest bearing, non-FDIC insured transaction accounts.
The account
hosting entity may provide payment instrument and money transmission services
to its cash
based consumers without the need for the qualifying/approval barners, high
costs, and
intricate fee and reporting obstacles associated with a traditional banking
relationship. The
transaction account maintained by the account hosting entity may be configured
to accept
deposits from a remote point of sale (POS) terminal at a retail establishment.
In one
embodiment, the transaction account may also be configured to indirectly
accept direct
deposits of funds, such as federal benefits checks and employee payroll
checks.
The consumer may access lvs or her account or pre-paid negotiable instruments
electronically via a POS terminal or an automated teller machine (ATM). Upon
demand, a
negotiable instrument, such as a money order, may be printed and cashed for
the consumer at
a POS terminal by an agent of the account hosting entity. Negotiable
instruments may be
printed in oddlspecific amounts so that the customer may receive cash in
odd/specific
denominations for the purpose of paying bills, etc. Alternately, an ATM may
dispense the
requested cash to the consumer.
Since the transaction account maintained by the Licensed Money Transmitter is
not
built around the classic FDIC insured demand deposit account (DDA) structure,
overall
system costs, and ultimately consumer costs, are reduced. For example, because
the funds
deposited into the transaction account are considered as advance payments for
negotiable
instruments, no credit approvals are required. Also, because withdrawals from
the transaction
account are processed on-line and in real time, mechanisms may be provided for
ensuring that
there are no account overdrafts. Without overdrafts, there is no need to worry
about fees
attributable to an overdrawn account status.
By establishing a non-banking service that offers access to cash through
retail
establishments such as grocery stores or through ATMs, the present invention
allows cash
based consumers to avoid visitations to bank branches that rnay not be
conveniently located.
Instead, the cash based consumer may hear about the services of the present
invention and
receive enrollment materials at the same locations at which they conduct other
financial or
retail transactions, or through direct advertising. Consumers may transfer
funds directly from
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the service desk (via a POS terminal) of a preferred retailer at a time of day
that is convenient
for their lifestyles. Consumers may also be provided with "VRU" or "Voice 24 x
7" services
so as not to be made dependent only on ATMs and agents operating POS
terminals.
As mentioned above, an exemplary transaction account may also be configured to
indirectly accept direct deposit transactions. The transaction account is not
configured to
directly accept direct deposit transactions due to the desire of the cash
based consumer to
avoid a traditional banking relationship. Various federal regulations, wluch
are well known to
those skilled in the art, require that certain direct deposit transactions
involve FDIC insured
bank accounts, and the like. For example, direct deposit of federal benefits
checks may only
be made into traditional FDIC insured bank accounts.
Similarly, banking industry requirements require that other types of direct
deposit
transactions involve a traditional bank account. By way of illustration,
direct deposit of
payroll checks are made through an automated clearinghouse (ACH) system, which
uses
routing and transit (R&T) numbers and other data to effect the transfer of
funds between
accounts. R&T numbers are assigned exclusively to FDIC insured banks.
Therefore, in order
to meet the cash based consumer's demand for non-banking services, the account
hosting
entity may choose riot to directly offer direct deposit capabilities that are
subject to federal
banking regulations and banking industry requirements.
The following description will hereinafter refer to the drawings, in which
like
numerals indicate like elements throughout the several figures. An exemplary
flow of funds
through an illustrative account system of the present invention is described
with reference to
the functional block diagram of FIG.1. The system as shown in FIG.1 is
representative of a
system adapted to accept direct deposit of federal benefits checks and
employee payroll
checks. As shown, a transaction account 102 is established and maintained by
an account
hosting entity such as a Licensed Money Transmitter or an agent thereof. The
transaction
account 102 may be thought of as a general account held in the name of the
Licensed Money
Transmitter. The general account may be divided into stub-accounts that are
associated with
individual consumers. Alternately, separate transaction 102 accounts may be
established in
the names of each individual consumer.
Due to various federal regulations and industry requirements, the transaction
account
102 is not FDIC insured and is not authorized to accept funds that are
transferred through the
Automatic Clearinghouse (ACH) system of the federal reserve. The ACH is an
electronic
funds transfer system used by retail and commercial organizations. The ACH
acts as a normal
clearing house, receiving a transaction over the network and then splitting
and routing the
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debit and credit portions of the transaction to the payer's and the payee's
banks. Without
ACH access, the transaction account 102 is not authorized to accept direct
deposits of federal
benefits checks, payroll checks from employers, or the like.
Accordingly, an exemplary embodiment of the present invention contemplates
that a
Licensed Money Transmitter will establish a communication channel with a
traditional FDIC
insured financial institution, such as a bank, in order to service direct
deposit customers. The
bank will maintain an FDIC insured bank account 104, which may either be held
in the name
of the Licensed Money Transmitter or in the name of an individual consumer.
The bank
account 104 is capable of accepting federal benefit direct deposits 106 and
payroll direct
deposits 108, as well as any other type of federally regulated or banking
industry standardized
transfer of funds. The communication channel between the Licensed Money
Transmitter and
the bank may allow the Licensed Money Transmitter to monitor the bank account
104 for
incoming direct deposit transactions. .
In an exemplary embodiment of the present invention, incoming direct deposit
transactions are "swept" from the bank account 104 into the transaction
account 102. In other
words, funds that are deposited in the bank account 104 are instantly
transferred into the
transaction account 102. The instant transfer of funds avoids capitalization
of the bank, i.e.,
no interest on the funds is accumulated. Accordingly, the communication
channel between
the Licensed Money Transmitter and the bank allows customers of the Licensed
Money
Transmitter to take advantage of direct deposit mechanisms, without themselves
having to
become customers of a bank. In addition, non-direct deposit funds may be
deposited into the
transaction account 102 via a POS terminal 112 or via any other bank 114 or
financial
institution.
Funds that are held in the transaction account 102 may be dispersed to the
customer
through a POS terminal l I2 operated by an agent of the Licensed Money
Transmitter, or
through a traditional ATM 116. POS terminals 112 and ATMs 116 allow a consumer
to
conduct a transaction from remote locations. ATMs comprise computer terminals
that may be
configured for remote access, directly or indirectly through switching
networks, to a financial
account of the consumer, such as a bank account 104 or a transaction account
102. Similarly,
POS devices 112 comprise computer terminals located at a merchant's place of
business
which allow access to a consumer's account information stored in a computer
within a
network of financial institutions, to permit the transfer of funds from the
consumer's account
to the merchant's account.
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FIG. 2 illustrates the process flow of an account sweep control module 210,
which
may be implemented through one or more software program modules. The account
sweep
control module 210 facilitates communications between a bank computer system
212 and a
Licensed Money Transmitter (LMT) computer system 214. In particular, the
account sweep
control module 210 facilitates the transfer of funds between a bank account
104 accessible by
the bank computer system 212 and a transaction account 102 accessible by the
Licensed
Money Transmitter computer system 214. The account sweep control module 210
may be
implemented as a component of the Licensed Money Transmitter computer system
214, as a
component of the bank computer system 212, or as a component of a distinct
computer
system. The account sweep control module 210 is configured to monitor the bank
account
104 in order to detect the posting of a credit to the bank account 104. As
shown in step 201,
an exemplary embodiment of the account sweep control module 210 receives a
notification
from the bank computer 212 whenever a credit is posted to the bank account
104. Methods of
configuring the software and hardware of the bank computer system 212 to send
a
notification to the account sweep control module 210 upon the posting of a
credit to the bank
account 104 will be apparent to those skilled in the art.
When a notification of a posted credit is received, the exemplary account
sweep
control module 210 communicates with the bank computer 212 at step 202 in
order to post a
debit to the bank account 104. In the ideal situation, the credit of funds
exists in the bank
account 104 for a period of time that is on the order of a fraction of a
second prior to the
posting of the debit. The credit of funds posted to the bank account 104 may
be in any
"amount X." The subsequent debit posted by the account sweep control module
210 to the
bank account 104 is in the total "amount X." Accordingly, the bank account I04
is "zeroed
out" and, except for a fraction of a second or so, maintains a balance of
zero. The debit is
posted to the bank account 104 instantly so as to avoid capitalization of the
bank.
At step 203, the exemplary account sweep control module 210 communicates with
the
Licensed Money Transmitter computer system 214 in order to post a credit of
the total
"amount X" into the transaction account I02. The transaction account 102 is a
holding or
escrow account that is used to store the funds of the consumer. The
transaction account 102
does not accrue interest and does not function as a traditional bank account.
The funds in the
transaction account 102 may represent prepaid negotiable instruments that may
be issued to
the consumer via a POS terminal 112 operated by an agent of the Licensed Money
Transmitter.
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When a consumer requests the issuance of a prepaid negotiable instrument, a
request
for authorization to issue the negotiable instrument may be transmitted from a
POS terminal
I12 to a transaction control module 211. A transaction control module may be
implemented
through one or more software program modules. The transaction control module
211 may be
implemented as a component of the Licensed Money Transmitter computer system
214, or as
a component of a distinct computer system. A transaction control module 2I1 is
configured to
interact with the transaction account 102 and POS terminals 112 in order to
manage
transactions. By way of illustration, a POS terminal 112 may request
authorization to issue a
negotiable instrument of amount "Y," as shown in step 204. The transaction
control module
2II accepts the request for authorization and communicates at step 205 with
the Licensed
Money Transmitter computer system 214 in order to verify that the balance of
the transaction
account 102 equals or exceeds the requested amount "Y" plus any transaction
fees charged by
the Licensed Money Transmitter. The transaction control module 211 may als~ be
responsible
for verifying that the customer requesting the negotiable instrument is in
fact authorized to
receive the negotiable instrument. For example, the customer may be required
to provide a
personal identification number (PII~ and an account code, which may be
transmitted from
the POS terminal 112 to the transaction control module 211. The transaction
control module
211 may communicate with a database (not shown) hosted by the Licensed Money
Transmitter computer system 214 in order to determine whether the PIN and
account code
provided by the customer are authentic. Additional details regarding security
features of the
illustrative embodiments of the present invention will be describe below.
If the balance in the transaction account 102 equals or exceeds the requested
amount
"Y" plus any transaction fees, the transaction control module 211 transmits to
the POS
terminal 112 an authorization to issue the requested negotiable instrument, as
shown in step
206. However, if the balance in the transaction account 102 is less than the
requested amount
"Y" plus any transaction fees, the transaction control module 211 will not
authorize the
issuance of the requested negotiable instrument. As mentioned, the funds held
in the
transaction account I02 are considered to represent prepaid negotiable
instruments.
Therefore, the transaction account 102 will not be debited in any amount that
exceeds the
prepaid value of the negotiable instruments plus any transaction fees.
Transaction fees may be
charged at the time of the transaction so as to avoid the situation where the
transaction
account 102 is depleted and the customer owes a debt to the Licensed Money
Transmitter.
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Ensuring that the transaction account 102 is never overdrawn avoiding the need
to charge
additional service fees associated with an overdraw account status.
After receiving authorization to issue the requested negotiable instrument,
the agent of
the Licensed Money Transmitter operating the POS terminal 112 prints and
cashes the
negotiable instrument in the amount "Y" plus any transaction fees. The agent
may then retain
any transaction fees and provide the remainder of the cash to the consumer. At
step 207, the
POS terminal 112 notifies the transaction control module 2I1 that the
negotiable instrument
has been issued. Then, at step 208 the transaction control module 211
communicated with the
Licensed Money Transmitter computer system 214 in order to post a debit in the
amount "Y"
plus any transaction fees to the transaction account 102.
The exemplary embodiments described with respect to FIG.1 and FIG. 2 include a
two account structure (i.e., a bank account 104 and a transaction account 102)
and an account
sweep control module 210. It will be appreciated to those of ordinary skill in
the art that the
two account structure and the account sweep control module 210 are not
necessary in
situations where there is no desire to indirectly provide direct deposit
capabilities. Various
features and aspects of the present invention may be implemented in systems
that do not
require such direct deposit capabilities. In addition, it should be
appreciated that the
functionality of the account sweep control module 210 and the transaction
control module
211 has been provided -by way of example only. Additional functions may be
performed by
either module without limitation of the scope of the present invention.
FIG. 3 is an overview of an exemplary Licensed Money Transmitter network
environment 300 that may host a system in accordance with the illustrative
embodiments of
the present invention. A POS terminal 112 communicates with a Tandem computer
system
302 via a network 303. The Tandem computer system 302 may be in communication
with, or
may comprise a part of, the Licensed Money Transmitter computer system 2I4.
Although the
functionality of a "Tandem" brand computer system is a well-known in the art,
as used herein
a Tandem computer system 302 may refer to any generic network server system. A
POS
terminal 112 generally includes a printer 304 and a control terminal 306. The
control terminal
306 typically comprises a keypad or other input device, a display, a modem, a
memory, and a
processor. The control terminal 306 may, communicate print commands to the
printer 304
via, for example, an RS-232 link or other suitable communications link. The
control terminal
306 manages negotiable instrument transactions and stores data in a memory.
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11
A profile database management system 312 may be provided for management of the
POS terminals 112. In manners well known in the art, software updates and
other data may be
downloaded from the profile database management system 312 to a POS terminal
112. Such
software updates and other data may be generated and stored in the profile
database
management system 312 by a Licensed Money Transmitter support personnel system
310.
The Licensed Money Transmitter support personnel system 310 may include
personal
computers 310a operated by support personnel and telephones 310b manned by
support
personnel or linked to VRU systems. The Licensed Money Transmitter support
personnel
system 310 may be coupled to the profile database management system 312 via a
local area
network (LA1V) or other private communications link. The Licensed Money
Transmitter
support personnel system 310 may also be linked to the network 303, so as to
be accessible to
customers via telephone systems.
At predetermined times, the control terminal 306 of the POS terminal 112
transmits
its data to the Tandem computer system 302 via the network 303. The Tandem
computer
system 302 creates a batch file comprising data received from many POS
terminals 112. The
Tandem computer system 302 typically forwards batch files to the appropriate
component of
the Licensed Money Transmitter computer system 214 at predetermined times. For
security
purposes, the Tandem computer system 302 may transmit a batch file to the
Licensed Money
Transmitter computer system 2I4 via a private network or other private
communications link.
The Licensed Money Transmitter computer system 214 is configured for, among
other
things, accessing the transaction account 102 maintained by the Licensed Money
Transmitter.
The transaction account 102 may be physically stored in a memory device in
communication
with the Licensed Money Transmitter computer system 214. The Licensed Money
Transmitter computer system 214 may also host a database 316 of account codes,
PINS, and
other customer/account information. Such customer/account information may be
used for
security purposes and to monitor the nature and frequency of transactions
performed by each
customer.
The Licensed Money Transmitter computer system 214 may also comprise or be in
communication with the account sweep control module 210. The account sweep
control
module 210 is in turn in communication with the bank computer system 212: The
bank
computer system 212 is configured for, among other things, accessing the bank
account 104,
which may physically be stored in a memory device in communication with the
bank
computer system 212.
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12
The Tandem computer system 302 may be in communication with the transaction
control module 211. Thus, communications to and from the POS terminal 112 may
be routed
from and to the transaction control module 211 via the Tandem computer system
302. As
mentioned, the transaction control module 211 is configured to manage
transactions
involving deposits into and withdraws from the transaction account 102.
Although shown as
being a distinct network component, those skilled in the art should appreciate
that the
transaction control module 211 may alternately be implemented as a component
of either the
Tandem computer system 302 or the Licensed Money Transmitter computer system
214.
FIG. 4 and the following discussion are intended to provide a brief and
general
description of a suitable computing environment for implementing various
aspects of the
present invention embodied in software program modules, namely the exemplary
account
sweep control module 2I0 and the exemplary transaction control module 211.
Although the
system shown in FIG. 4 is a conventional computer 400, those skilled in the
art will
recognize that the invention also may be implemented using other types of
computer system
configurations. The computer 400 includes a central processing unit 422, a
system memory
420, and an Input/output ("I/O") bus 426. A system bus 421 couples the central
processing
unit 422 to the system memory 420. A bus controller 423 controls the flow of
data on the I/O
bus 426 and between the central processing unit 422 and a variety of internal
and external I/O
devices. The I/O devices connected to the I/O bus 426 may have direct access
to the system
memory 420 using a Direct Memory Access ("DMA") controller 424.
The I/O devices are connected to the I/O bus 426 via a set of device
interfaces. The
device interfaces may include both hardware components and software
components. For
instance, a hard disk drive 430 and a floppy disk drive 432 for reading or
writing removable
media 450 may be connected to the I/O bus 426 through a disk drive controller
440. An
optical disk drive 434 for reading or writing optical media 452 may be
connected to the I/O
bus 426 using a Small Computer System Interface ("SCSI") 441. The drives and
their
associated computer-readable media provide nonvolatile storage for the
computer 400. In
addition to the computer-readable media described above, other types of
computer-readable
media may also be used, such as ZIP drives or the like.
A display device 453, such as a monitor, is connected to the I/O bus 426 via
another
interface, such as a video adapter 442. A parallel interface 443 connects
synchronous
peripheral devices, such as a laser printer 456, to the I/O bus 426. A serial
interface 444
connects communication devices to the I/O bus 426. A user may enter commands
and
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13
information into the computer 400 via the serial interface 444 using an input
device, such as a
keyboard 438, a mouse 436 or a modem 457. Other peripheral devices (not shown)
may also
be connected to the computer 400, such as audio input/output devices or image
capture
devices.
A number of software program modules may be stored on the drives and in the
system
memory 420. The system memory 420 can include both Random Access Memory
("RAM")
and Read Only Memory ("ROM"). The software program modules control the manner
in
which the computer 400 functions and interacts with the user, with I/O devices
or with other
computers. Software program modules include routines, operating systems 465,
application
programs, data structures, and other software or firmware components. In an
exemplary
embodiment, the present invention may include one or more account sweep
control modules
210 and one or more transaction control modules 211. The one or more account
sweep
control modules 210 may comprise computer executable instructions for
facilitating
communications between a bank computer system 212 and a Licensed Money
Transmitter
computer system 214. The one or more account sweep control modules 210 may
further
comprise computer executable instructions for monitoring credits posted to a
bank account
104, posting debits to the bank account 104 and posting credits to the
transaction account
102, as previously described. The one or more transaction control modules 211
may comprise
computer executable instructions for facilitating communications between a POS
terminal
112 or an ATM 116 and a Licensed Money Transmitter computer system 214, as
previously
described.
Many or most of the software-controlled operations performed by the exemplary
software program modules of the present invention are conventional and well-
known in the
industry. For example, it is conventional and well known to communicate
standard ATM and
POS messages between a computer system and an ATM network using conventional
off the-
shelf ATM and POS software. In an exemplary embodiment, the computer 400 also
includes
such conventional software to generate and communicate appropriate messages.
Conventional
software packages also exist which perform a variety of exceeding complex but
entirely
conventional functions (e.g., maintaining audit trails to ensure transaction
reliability,
maintaining user account and vender files, provide clearing information,
etc.). Such
conventional software program modules may also be executed by the computer 400
in an
exemplary embodiment. Conventional database management systems may also be
executed
by the computer 400 for maintaining customer/account information.
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The computer 400 may operate in a networked environment using logical
connections
to one or more remote computers, such as remote computer 460. The remote
computer 460
may be a server, a router, a peer device or other common network node, and
typically
includes many or all of the elements described in connection with the computer
400. In a
networked environment, program modules and data may be stored on the remote
computer
460. The logical connections depicted in FIG. 4 include a local area network
("LAN") 454
and a wide area network ("WAN") 455. In a LAN environment, a network interface
445, such
as an Ethernet adapter card, can be used to connect the computer 400 to the
remote computer
460. In a WAN environment, the computer 400 may use a telecommunications
device, such
as a modem 457, to establish a connection. It will be appreciated that the
network connections
shown are exemplary and other means of establishing a communications link
between the
computers may be used.
Aspects of the present invention may be implemented by way of any account
identifying mechanism, such as a plastic card issued to a particular consumer.
As shown in
FIG. 5, in an exemplary embodiment a consumer is provided with an account card
or Cash
CardSM 500 that includes identifying information on the front and an encoded
magnetic strip
on the reverse. Identifying information may include an account identification
code 502 and a
customer name and number 504. The identifying information may be used to
associate a
transaction account 102 or a sub-account thereof with the particular consumer.
From the consumer's point of view, funds may be loaded onto and off loaded
from
the Cash Card 500 at any time. Thus, the Cash Card 500 eliminates the cash
based
consumer's need to carry large amounts of cash on his or her person. As
previously described,
the consumer may authorize the deposit of funds into a transaction account 102
associated
with the Cash Card 500 in various ways, such as through direct deposit
transactions, POS
transactions, ATM transactions, etc. Subsequently, upon presentation of an
account card 500
or other account identifier and a personal identification number (PIN), the
consumer may
access the funds that are stored in his or her name in the transaction account
102.
To request a withdrawal of funds from the transaction account 102, a consumer
may
present the Cash Card 500 to an agent of the Licensed Money Transmitter
operating a POS
terminal 112. Alternately, the Cash Card may be presented at an ATM 116. The
account
identification code 502 may be read by the agent or an automated reader from
the front of the
Cash Card 500 or from the encoded magnetic strip on the reverse of the Cash
Card 500. The
account identification code 502, a PIN obtained from the consumer, and other
data, such as a
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requested amount of funds, are transmitted to the transaction control module
211 as a request
for issuance of a negotiable instrument. As described previously, the
transaction control
module 211 interacts with the Licensed Money Transmitter computer system 214
in order to
effect an electronic transfer of funds from the transaction account 102 to the
POS terminal
112 or the ATM 116 that generated the request for funds. In a similar fashion,
the Cash Card
500 may be presented to an agent at a POS terminal 112, an ATM 116, or a
teller at a bank
114 in order to conduct a transaction for the deposit of funds into the
transaction account 102.
Accordingly, in one embodiment of the present invention, an account card 500
is
issued in the name of a particular consumer upon that consumer's enrollment as
a customer of
the Licensed Money Transmitter. Enrollment may entail the provision of certain
customer
information, such as name, address, phone number, social security number, etc.
For liability
and/or security purposes, the Licensed Money Transmitter may require some or
all of the
above-listed customer information prior to providing a consumer with full
privileges for
depositing and withdrawing funds into and out of the transaction account 102.
As shown in FIG. 6, an alternate embodiment of the present invention involves
the
issuance of an anonymous account card 600. An anonymous account card 600
includes an
account identification code 602 and an anonymous customer indicator 604. An
anonymous
account card 600 may be associated with an anonymous transaction account or an
anonymous
sub-account within the transaction account 102. The anonymous account is
identified only by
an account code and a PIN that is provided to the consumer of the anonymous
account card
600. The anonymous account card 600 may be a one-load account card, meaning
that funds
may be deposited into the associated anonymous transaction account only one
time. Once the
initially loaded funds are depleted from the anonymous transaction account,
the anonymous
account card 600 is no longer valid (unless it is converted to a "regular"
account card 500, as
will be described below).
An anonymous account card 600 may be sold or otherwise provided to a consumer,
who may then request that a particular amount of funds be loaded onto the
anonymous
account card 600. The consumer of the anonymous account card 600 is provided
with a PIN,
which may be used to authorize loading of the anonymous account card 600.
Funds to be
loaded onto the anonymous account card 600 are collected by, for example, an
agent of the
Licensed Money Transmitter. A credit in the amount of the collected funds is
then posted to
the anonymous transaction account in the manner previously described. In
accordance with
one embodiment of the present invention, an anonymous account card 600 may be
loaded by
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the consumer only at a POS terminal 112. Given the anonymous nature of
anonymous
account card 600 transactions, no direct deposit capabilities are provided.
The funds to be loaded onto the anonymous account card 600 may be limited to
specific or incremental dollar amounts. For example, it may be a policy of the
Licensed
Money Transmitter that no anonymous account card 600 may be loaded with more
than a
predetermined value. Alternately, an anonymous Account card 600 having a first
load limit
may be sold to consumers for a first price, while an anonymous account card
600 having a
second load limit may be sold to consumers for a second price, etc. In another
embodiment,
an anonymous account card 600 may be pre-loaded with a particular amount of
funds. In this
manner, the Licensed Money Transmitter may store funds of a predetermined
amount in the
anonymous transaction account associated with the anonymous Account card 600.
Then, the
pre-loaded anonymous account card 600 may be sold to a consumer for a price
equal to the
predetermined amount plus any additional service fees.
As mentioned, an anonymous account card 600 may expire upon depletion of the
initially loaded funds. An expired anonymous account card 600 may no longer be
used by the
consumer to deposit funds into or withdraw funds from a transaction account
102. However,
the present invention contemplates that an anonymous account card 600 may be
converted
into a "regular" account card 500 that carries full reload and access
privileges, including
direct deposit capabilities. Conversion from an anonymous account card 600 to
a regular
account card 500 requires that the consumer enroll as a customer of the
Licensed Money
Transmitter. As mentioned above, enrollment entails providing certain customer
and account
specific information. Enrollment may be performed over the telephone, via the
mail, or
through any other suitable communications medium. When the consumer has
successfully
enrolled as a customer, the Licensed Money Transmitter may provide the
customer with a
new account card 500 and P1N. As is well known in the art, the customer may
choose the PIN
to be associated with his or her transaction account 102. Alternately,
although less desirably,
the newly-enrolled customer may continue to use the original anonymous account
card 600
and the associated PIN as if it were a regular account card 500.
FIG. 7 is a flow chart illustrating an exemplary method for processing
transactions
associated with an anonymous account card 600. From starting block 701, the
method
advances to step 702 where an anonymous sub-account is established within the
transaction
account 102. The anonymous sub-account is identified only by an account code
and is not
associated with any consumer identifying information. At step 704, the
anonymous account
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card 600 is sold to a consumer. Along with the anonymous Account card, the
consumer is
also provided a PIN that authorizes access to the anonymous sub-account.
The consumer may then request an initial load of the anonymous account card
600 by
presenting the anonymous account card 600, PIN, and funds to an agent of the
Licensed
Money Transmitter. At step 706, a credit in the amount of the consumer's
initial funds
deposit is posted to the anonymous sub-account associated with the anonymous
account card
600. Once funds are loaded onto the anonymous account card 600, the method
proceeds to
step 708, where withdrawals may be made until the initial funds have been
depleted. At step
710 a determination is made as to whether the consumer has enrolled as a
customer of the
Licensed Money Transmitter. If the consumer has not enrolled, the method
proceeds to step
712 where the anonymous sub-account is closed and the anonymous account card
600 is
considered to be expired.
However, if the consumer has enrolled as a customer of the Licensed Money
transmitter, the method proceeds to step 714, where the anonymous sub-account
is converted
into a non-anonymous sub-account associated with customer identifying
information. Then at
step 716, the non-anonymous sub-account is authorized to receive additional
deposits from
the customer. At step 718, the customer may be provided with a new non-
anonymous account
card 500 that is issued in the customer's name and has customerlaccount
information encoded
on a magnetic strip or other data storage mechanism. The method ends at step
719.
Modified Embodiment System and Method for Issuing-Negotiable Instruments
FIG. 8 generally discloses a system 800 for issuing negotiable instruments 801
without requiring use of a PIN or signature input. It is to be understood that
the negotiable
instrument 801 can comprise any suitable negotiable instrument, such as a
check, draft,
warrant, money order, traveler's check, etc. As used herein, the term
"negotiable instrument"
is intended to encompass any medium of value that is similar in operation to a
check, and
may include instruments that axe not negotiable. The system 800 includes a
customer account
server 804 which is established, maintained and operated by a customer account
hosting
entity. A plurality of customer accounts or transaction accounts 806 (two of
which are shown
schematically in Figure 8) are hosted or maintained on the customer account
server 804. As
used herein, the terms server or computer generally include the computer
processor, the
related hardware and the software run thereon to provide the required
functionality.
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Each customer account 806 is adapted for association with an entity, such as a
customer or consumer (individual, corporate, institutional, etc.), comprising
an account
holder 808. Negotiable instruments 801 issued using the system 800 are issued
by or drawn
on an account maintained by a negotiable instrument issuing entity. The
negotiable
instrument issuing entity and the customer account hosting entity can be a
bank, credit union
or other financial institution or entity such as a Licensed Money Transmitter,
and one single
entity or organization can perform both functions or roles.
The account holders 808 generally transact with the customer account server
804 and
their accounts 806 through one of a plurality of POS terminals or negotiable
instrument
dispensing stations 810. However, it is foreseen that the system can also be
configured to
allow account holders 808 to access their accounts 806 directly through the
customer account
hosting entity via the customer account server 804 thus bypassing the
negotiable instrument
dispensing stations 810.
The account hosting entity and/or the negotiable instrument issuing entity
solicit
potential account holders to establish customer accounts 806 with the account
hosting entity
on the customer account server 804. The account holder name 811 and an account
number
or account identifier 812 are associated with each customer account 806 on the
customer
account server 804. It is to be understood that the account hosting entity
will typically create
customer accounts 806 in anticipation of their future association with account
holders 808.
The account numbers 812 and optionally, PINs can be assigned in advance of
their
association with account holders 808. The term "account" is to be construed
broadly and
interchangeably to encompass all types of financial accounts.
Upon activation of each customer account 806 by the account hosting entity, a
card
814 (similar to those described above) is issued to the account holder 808.
The card 813
includes a magnetic strip 816 or other data storage medium for recording on
the card the
account number 812 of the account holder's account 806 in machine readable
format. It is
foreseen that the account holder name 811 could also be recorded in machine
readable format
on the card 814.
The negotiable instrument dispensing station 810 is typically maintained by an
agent
of the negotiable instrument issuing entity and includes a computer processor
820 linked to a
display 822, a printer 824 and one or more input devices such as card reader
826 and keypad
828. The computer processor 820 may also be referred to as the dispensing
station processor
or server. As indicated by the arrow 830, data is transferred through a
communications link,
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such as over a phone line or the like, back and forth between the customer
account server 804
of the account hosting entity and the dispensing station processor 820 of the
negotiable
instrument dispensing station 810. Such data transfers reflect information
related to
transactions (i.e., the issuance of negotiable instruments) that are initiated
by the respective
account holders 808 and that involve their accounts 806.
The negotiable instrument dispensing.stations 810 may utilize hardware already
provided to entities which issue money orders and the like. Existing money
order stations
generally include a computer processor linked to a display, a keypad and a
printer. The
processor, display and keypad are of the type used by many retailers for
processing credit card
or debit card transactions and can include a card reader. These stations are
typically linked to
a central computer system for a issuing entity to allow the dispensing agent
to download to
the central computer system money order serial numbers and monetary amounts of
money
orders issued from the dispensing station.
The keypad 828 preferably includes function keys which can be used to change
the
mode of operation of the computer processor 820 for the negotiable instrument
dispensing
station 810. Such a keypad 828 permits the dispensing station processor 820 to
be
programmed to allow the operator to switch between a first mode fox dispensing
money
orders in a standard manner and a second mode for dispensing money orders or
the like using
the inventive system and method. In the first mode, money orders are dispensed
by the agent
in exchange for a cash payment by the party requesting the money order in the
amount of the
money order requested plus any transaction fees charged. In the inventive
system and
method, the amount of the money order and any transaction charges are covered
by funds
previously deposited in the account 806 of the account holder 808 requesting
the money
order.
The printer 824 includes a tray or the like for storing a supply of preprinted
blank
negotiable instruments 801, an example of which is shown in Figure 10. The
blank
negotiable instrument 801 includes a negotiable portion 835 and a receipt
portion 836. The
following items are pre-printed on the face of the negotiable portion 835, the
name 837 of the
negotiable instrument issuing entity, a routing and transit number 838 printed
in a machine
readable format, a negotiable instrument serial number or identifier 840, a
payee blank or
space 842, a payment amount space 844, a first restrictive legend 846
indicating that a photo
identification will be required to cash, and a second restrictive legend 848
specifying a
maximum amount in which the money order may be issued. The negotiable
instrument serial
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number 840 is also pre-printed on the face of the receipt portion 836 as a
number and in a
machine readable format 850, such as a barcode.
To obtain a negotiable instrument 801 from a negotiable instrument dispensing
station
810, the account holder 808 or an operator of the dispensing station 810,
inputs the account
number 812 into the dispensing station processor 820 either using the keypad
828 or by
swiping the card 814 through the card reader 826. The account holder 808 or
the operator
then enters the monetary amount in which the negotiable instrument is to be
issued into the
processor 820 using the keypad 828. The dispensing station processor 820 then
communicates with the customer account server 804 to determine the balance of
funds in the
customer account 806 corresponding to the account number 812 entered into the
dispensing
station processor 820, and to compare the balance of funds associated with the
customer
account 806 versus the monetary amount entered plus any transaction fees to be
applied.
If the amount requested plus any transaction fees exceeds the balance of funds
in the
customer account 806, the customer account server 804 transmits an instruction
to the
dispensing station processor 820 to decline the request and to provide a
message on the
display 828 indicating insufficient funds in the customer account 806 to
complete the
transaction. It is foreseen that the keypad 828 could include a function
button operable to
cause the dispensing station processor 820 to obtain from the customer account
server 804
and display on the display 822 the balance of funds in the customer account
806 and any
applicable transaction fees.
If the amount requested plus any transaction fees does not exceed the balance
of funds
in the customer account 806, the customer account server 804 transmits an
authorization to
the dispensing station processor 820 to print and dispense the requested
negotiable instrument
801. The customer account server 804 also transmits to the dispensing station
processor 820
the account holder name 811 to be printed on the negotiable instrument 801,
and debits the
balance of funds associated with or in the customer account 806 by the
monetary amount
requested plus any transaction fees. The funds debited from the customer
account 806 axe
electronically transferred to the account of the negotiable instrument issuing
entity on which
the negotiable instrument 801 is drawn.
Upon receipt of authorization from the customer account server 804, the
dispensing
station processor 820 communicates with the printer 824 causing the printer
824 to print the
account holder name 811 in the payee space 842 and the monetary amount
requested and
authorized in payment amount space 844. Although the account holder name 811
printed on
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the negotiable instrument 801 is preferably obtained from the data records
maintained on the
customer account server 804, the account holder name 811 may be supplied from
the
magnetic strip or other data storage medium included on the card 814. As used
herein any
reference to printing or dispensing the money order or negotiable instrument
can be
interpreted to include the steps of printing the payee name (the account
holder name 811 or
other designated payees as discussed herein) andlor the monetary amount or
both an a
preprinted blank negotiable instrument 801.
As the negotiable instrument 801 is printed and dispensed from the printer
824, a bar
code reader (not shown) in the printer 824 reads the negotiable instrument
serial number 840
in the machine readable format 850 off of the negotiable instrument 801 and
communicates
the serial number 840 to the dispensing station processor 820 which in turn
communicates the
serial number 840 to the customer account server 804. The customer account
server 804
associates the serial number 840 of the negotiable instrument 801 and the
monetary amount
of the issued negotiable instrument 801 (previously communicated to the
customer account
server 804) with the customer account 806 associated with the account number
812 entered to
initiate the transaction. The money order serial number could also be entered
into the
dispensing station processor 820 using the keypad 828.
The dispensing station processor 820 keeps track of or stores information
concerning
the negotiable instruments 801 or money orders issued including the respective
serial
numbers 840, the account number 812 of the customer account 806 from which the
amount
payable is to be debited, the monetary amount printed on the negotiable
instrument and
possibly the name of the payee or account holder name 811. At preset
intervals, generally
nightly, this information is transferred or downloaded over a communications
link 849 from
the dispensing station processor 820 to a negotiable instrument tracking
server 850
maintained by the negotiable instrument issuing entity. The information is
transferred in
response to a query issued from the negotiable instrument tracking server 850
to all of the
negotiable instrument dispensing stations 810. The information transferred
includes at least
the serial number 840 and the monetary amount associated with each negotiable
instrument
801 dispensed by or issued through the dispensing station 810 since the last
transfer of
information and this information is used to assist in tracking and accounting
for each
negotiable instrument issued.
The negotiable instrument 801, made payable to the account holder 808, can be
cashed at a negotiable instrument cashing institution 858. The agents of the
negotiable
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instrument issuing entity which dispense the negotiable instruments can also
choose to serve
as a negotiable instrument cashing entity 858 and cash the negotiable
instruments it or other
agents dispense. Security is provided by making the negotiable instrument 801
payable only
to the account holder 808, who can be required to present identification 860
to the cashing
entity 858. Moreover, the account holder 808 can be required to endorse the
negotiable
instrument 801 as generally indicated at 862. Upon presentation of the
endorsed negotiable
instrument 801 by the account holder 808 (payee) with proper identification
860 to the
cashing entity 858, the cashing entity pays the account holder 808 cash in the
monetary
amount printed on the negotiable instrument 801 as generally represented by
the arrow 863.
The cashing entity 858 presents the cashed negotiable instrument 801 to the
negotiable instrument issuing entity through established settlement or banking
channels to
obtain the necessary transfer of funds to the cashing institution 858, as
generally indicated by
the arrow at 864. The negotiable instrument issuing entity will have already
received
payment of or a transfer of funds to cover the negotiable instrument from the
account hosting
entity to the account of the negotiable instrument issuing entity on which the
negotiable
instrument is drawn as discussed above and as generally represented by the
arrow at 865.
It is to be understood that existing automated teller machines, such as ATM
870 could
also be used as or readily modified to use as an optional source of negotiable
instruments 801.
The ATM includes the necessary processor (not shown), display (not shown),
keypad 872,
card reader 873, printer 874 and a communications link 878 to communicate with
the
customer account server 804. The card 814 is read by the ATM card reader 873
and the
account holder 808 enters the requested amount of the negotiable instrument
801 to be issued
using the keypad 872. the ATM 870 then communicates with the customer account
server
804 to obtain authorization to issue the negotiable instrument 801 in the
amount requested,
the appropriate customer account 806 is debited and the ATM printer 874 prints
a negotiable
instrument 801 payable to the account holder name 811 supplied by the customer
account
server 804 or the card 814, in the amount requested.
Alternatively, the system could be programmed to allow issuance of cash from
the
ATM based upon the existence of a sufficient balance of funds in the account
holder's
account 806. Under this option, the ATM is programmed to provide the account
holder the
option of obtaining cash or a negotiable instrument 801. If the cash option is
selected, the
account holder 808 is required to enter a PIN number before the ATM will issue
the requested
cash. Upon entry of the PIN number, the ATM prompts the account holder 808 or
its agent to
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enter, using the keypad 872, the monetary amount in which the negotiable
instrument 801 is
to be issued. Upon entry of the monetary amount requested, the ATM
communicates with the
customer account server 804 to verify the presence of sufficient funds in the
customer
account 806 to cover the amount requested and any transaction fees or charges.
Upon receipt
of such verification, customer account server debits the amount requested plus
any
transaction fees charged to the customer account 806 and the ATM dispenses the
requested
cash. Funds are later transferred from the account hosting entity to the
entity maintaining the
ATM 870 through traditional settlement channels as also generally indicated by
the arrow
878.
It is also to be recognized that the account holder 808 could deposit funds
into its
customer account 806 through several methods, including a direct deposit of
funds such as
indicated at 880. Funds likely to be deposited directly into the customer
account 806 include
paychecks and federal benefits checks. It is also foreseen that deposits could
be made by
making payments, such as cash payments, to one of the operators of a
negotiable instrument
station 810. The account holder 808 could supply an amount of cash to the
dispensing station
operator, and enter or have entered the monetary amount provided using the
keypad 828 of
the dispensing station processor 820 and credit the customer account 806 by
the amount
supplied by the account holder 808. Such a transaction would preferably
require the account
holder to enter its PIN number through the dispensing station keypad 828.
Similarly, deposits
could be handled using an ATM that permits deposits. Confirmation of the
amount deposited
and accounting for the amounts deposited would then be handled using existing
channels for
such practices associated with ATMs.
It is foreseen that the customer account server 804 could be programmed to
allow
each account holder 808 to create a list of authorized payee names
corresponding to regular
creditors of the account holder 808 which can be stored in association with
the customer
account 806. The list of authorized payee names also preferably includes the
account holder
name 811. The customer account server 804 and the dispensing station processor
820 would
then be programmed to prompt the account holder 808 or other authorized user
to use the
keypad or other selection means to select from the list of authorized payee
names the name of
the payee to be included in the negotiable instrument 801. If a name other
than the account
holder name 811 is selected as the payee, the program preferably requires
entry of a PIN
number as a condition to issuing the requested negotiable instrument made
payable to the
selected payee.
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FIGS. lla and llb are a process diagram of the method for issuing negotiable
instruments 801 generally described above. The method starts at 902 and
proceeds to the
opening of a customer account 806 at step 904. An account number 812 is
assigned at 906.
A PIN decision at 908 results in a PIN being assigned at 910 if affirmative.
Otherwise, the
method proceeds to step 912 whereat an account card 814 is distributed to the
account holder
808. Thereafter the customer account 806 is activated at 914 and the customer
account 806 is
associated with the card holderlaccount holder 808 at 916 by the account
holder name 811.
Funds are deposited to the account at 918.
The account holder 808 initiates a request for a negotiable instrument at 920
by
swiping the card 814 through the card reader 826 at the POS terminal or
dispensing station
810 at step 922 and entering a monetary amount into the POS terminal 810 at
step 924. The
account records in the customer account server 804 are queried at 926 for a
sufficient balance
determination at 928. If negative, the method proceeds to decline the
transaction at step 930
and the method proceeds to end block 932. If affirmative, the customer account
806 is
debited in the amount of the negotiable instrument 801 plus any applicable
transaction fees at
934. The negotiable instrument is printed and issued at step 936 payable to
the account
holder name 811 (or other authorized payee) in the monetary amount requested
for
presentation by the account holder to a negotiable instrument cashing
institution at 938. The
negotiable instrument 801 is endorsed at 940 and the account holder 808
produces
identification at 942 whereby the account holder's identification is verified
at 944 by an agent
or representative of the negotiable instrument cashing institution. The agent
cashes the
negotiable instrument at 946 providing cash to the named payee. The agent then
deposits the
negotiable instrument for clearing and payment from the account hosting entity
at 948. Upon
clearing and payment, the method proceeds to end block 932.
From a reading of the description.above pertaining to the disclosed
embodiments of
the present invention, modifications and variations thereto may become
apparent to those
skilled in the art. For example, devices other than account cards with
magnetic stripes could
be used to store and quickly transfer the account number 812 and account
holder name 811 to
the dispensing station processor 820. Such alternative devices could include
smart cards
including computer chips imbedded in the card. The input device in the
dispensing station
810 could also comprise a receiver which communicates with a transmitter such
as a cell
phone through which the account holder could transmit a recorded account
number and a
requested monetary amount.
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Other alternatives and variations may also become apparent to those of
ordinary skill
in the art upon a close examination of this specification in view of the
drawings. It should be
appreciated that many features and aspects of the present invention were
described above by
way of example only and are therefore not intended to be interpreted as
required or essential
elements of the invention. Any elements of the invention that are required or
essential would
have been explicitly indicated to be so, for example by describing that the
element "must" be
included. Therefore, the scope of the present invention is to be limited only
by the following
appended claims.
