Note : Les descriptions sont présentées dans la langue officielle dans laquelle elles ont été soumises.
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TITLE
SYSTEM AND ITS METHOD OF USE FOR ACCEPTING FINANCIAL OVERPAYMENTS
FIELD OF THE INVENTION
This invention relates generally to methods and systems for
distributing funds. In one aspect it relates to conveniently and frequently
donating to qualified charities in small amounts, and particularly to an organized
collection and recording system. In another aspect it relates to operating an
open consumer purchasing system by updating the gift certificate or
0 pre-purchasing concept. In yet another aspect it involves creating excess funds
from traditional consumer spending tr~nc~ctions using cash, checks, credit or
debit card. The excess funds created are then put aside in special accounts for
future spending.
BACKGROUND OF THE INVENTION
- 15 Present methods and systems of creating excess funds from spending
transactions have a number of limitations. For example, now consumers can
create excess funds for future spending by making excess payments and having
the excess amount "csigned for future spending under very limited circumstances.Effectively consumers can tender an excess payment to a payee that they have
an existing account with (e.g. utility and gas companies) and allow the excess
funds to stay with the payee for the payment of future services or direct the
payee to distribute the excess funds onto an outside provider~ such as a charity.
Under this "closed" process the payee provides an active role as to account
management and selection/distribution of the excess funds for internal purposes,as well as to outside providers. Within this current arrangement the consumer
has verv limited opportunities to create excessive funds, as well as to determine
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the application of said funds, since the existing state of the art is a "closed"system essentially operated by payees with whom they have existing account
relationship. Also, consumers can now only create excess funds when the face
amount paid to a payee is in excess of the purchase price. In addition to the
requirement for an excess payment, there is also the need for the payee to
process the transaction by subtracting the amount of the purchase price from theamount tendered. Therefore, the payee is now actively involved in m~n~eine
and/or distributing the consumers' excess funds.
Moreover consumers can now only pre-pay for future purchasing under
0 very lirnited circum~t~nces. Effectively consumers can tender a pre-payments to
a merchant payee that they open an account with or have an existing account
with and allow the pre-dedicated funds to stay with the payee for the payment
of future services. Under this "closed" process the payee provides an active role
as to account management and selection/distribution of the pre-paid funds for
internal purposes only. Within this current arrangement the consumer has very
limited opportunities to pre-pay, as well as to choose a different application of
said funds, since the existing state of the art is a "closed" system essentiallyoperated by merchant payees with whom they have existing account relationship.
Moreover, in current shopping situations a clerk inputs the price
of all items in a cash register and the latter totals the price. The consumer
offers either the exact amount of cash or a sum exceeding the price, and the
clerk enters that amount. The cash register then subtracts the price from the
cash.
The excess cash offers the customer an opportunity to save small
amounts of money painlessly. It also affords the consumer to donate small
amounts of money to charity. In fact, establishments sometimes display
advertisements with receptacles for deposit of small change to be donated to
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charities. However these systems do not give the consumer an op,oo~ y to
save and donate his or her money consistently with respect to a favorite charityand fail to keep adequate records if the amounts grow enough to make it
worthwhile to consider the tax implications of the contributions.
SUMMARY OF THE INVENTION
An embo~limtont of the invention involves ~cc~lmul~ting credits in
payor surplus accounts from financial transactions between a payor and a payee,
by entering a dem~nded amount due the payee, entering an additional amount
offered by the payor, and depositing the additional amount in the surplus
account. According to another aspect of the invention, the step of depositing the
additional amount inl~ludes the payee crediting the additional amount to the
surplus account in the hands of a central clearing entity, so that the payee
remains neutral to the additional amounts. According tG yet another aspect of
the invention, said step of entering an additional amount includes calc~ ting the
additional amount from predetermined data associated with the surplus account.
Another embodiment involves issuing, decrementing, and writing balances
on the ~Y~ nge of open purchasing credits on an intelligent card processed by
neutral merchant payees from fin~nri~31 transactions between a consumer and a
merchant. Another aspect entails the neutral merchant payees determining the
net value between the issuing and decrementing of purchasing credits and
transferring said net value to the network's central clearinghouse. Still another
the central clearing house manages a ~ingul;~r pool of purchasing credits and
accepts and distributes funds according to the reporting of each respective
neutral merchant payee's terminal.
BRIEF DESCRIPTION OF THE DRAWINGS
Fig. 1 is a block diagram of a system embodying features of the
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invention.
Figs. 2 and 3 are views of credit cards forming part of the
embodiment in Fig. 1.
Figs. 4A & 4B (generally referred to as Fig. 4) and Figs. SA 5B
5& SC (Fig. S) are flow diagrams of the steps that take place in Fig. 1.
Figs. 6A, 6B, 6C, and 6D (generally referred to as Fig. 6) are flow
diagrams of steps that take place in a computer in Fig. 1.
Fig. 7.1 is a block diagram of the system embodying features of the
invention.
Fig 7.2 is a block diagram of system hardware in Fig. 7.1.
Fig . 7 . 3 is a view of an intelligent card forming part of the
embodiment in Fig. 7.1.
Fig. 7.4 are flow diagrams of the steps that take place in a
computer issuing credits in Fig.1.
5Fi~. 7.5 is a flow diagram of steps that take place in a computer
decrementing credits in Fig. 7.1.
Fig . 7 . 6 is a flow diagram of steps that take place in a computer
determining net value and transferring said value to clearinghouse in Fi~. 7.1.
Fig. 7.7 is a flow diagram of steps that take place in a computer fror~ the
20central clearinghouse to each neutral payee reporting account settlement i~ Fig.
7.1.
RECTIFI~D SHEET tRULE ~t)
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Fig. 7.8 is a flow diagram of steps that take place in the IC computer and
a PC that will provide a print out of the activity of the subscriber payor's records
in Fig. 7.3.
Fig. 8. lA is a block diagram of the POS system embodying features of the
invention.
Fig. 8.1B&C are block diagrams of the Clearinghouse Managed System
embodying features of the invention.
Fig. 8. lD&E are block diagrams of the Provider Managed System
embodying features of the invention.
0 Fi . 8. 1F is a block diagram of the Data and Funds Transfer used in both
P OS systems embodying features of the invention.
Fig. 8.2 is a block diagram of POS system hardware in Fig. 8.1.
Figs. 8.3 are views of transaction cards forming part of the embodiment in
Fig. 8.1.
Figs. 8.4A&B&C&D (Fig. 8.4) are flow diagrams of steps in Fig. 8.1B.
Fig. 8.5A&B (generally referred to as Fig. 8.5) are flow diagrams of steps
that take place in a computer in Fig. 8. lC.
.
Fig.8.6A&B&C (generally Fig.8.6)are flowdiagrams of enrollment steps
- that take place in a computer in Fig. 8.1B&C.
20Fig. 8.7 is a block diagram of the rounder system embodying features of
the invention.
ltu SHEET (RULE ~1
, .
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Fig. 8.8 is a flow chart of the steps that take place to enroll subscriber s
in the rounder system shown in Fig. 8.7.
Fig. 8.9A-E is a flow chart of the data procescing methodology used in the
terminals and central computers operated by banks to process rounder
transactions in Fig. 8.7A&B.
Fig. 8.10A-E is a flow chart of the data processing methodology used in
the terminals and central computers operated by banks and credit institutions toprocess rounder transactions in Fig. 8.7A&B.
DETAILED DESCRIPIlON OF PREFERRED EMBODIMENTS
In Fig. 1, a system embodying the invention includes a central
computer CC cont~ining a central processor CPU and a large data storage DS.
A communications system CS that may include telephone lines, satellites, or
cables connects the central computer CC to a number of cash registers CRx
(where x = 1, . . . M, . . . N) in retail outlets, such as shops, supermarkets,
gasoline stations, department stores, etc. at locations remote from the central
computer. Throughout this specification, the term x, when appended to the end
of a reference character, is equal to 1, . . . M, . . . N.
The cash registers CRx connect to respective keypads KPx and card
readers CDx. Each cash register CR, keypad KPx, and card reader CDx
connected to each other represents a remote terminal RTx. For each cash
register CRx there is a sponsor terminal STx that connects to the register and the
central computer CC. Money is collected at the cash registers CRx for crediting
to the consumers' ledgers in the accounts of various charities and other
institutions such as banks, debit card issuers, credit card issuers, etc. The data
storage DS contains individual storages for charity accounts CA and other
accounts OA, such as for banks etc., all with ledgers for individual consumers.
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The communications system CS also connects the central computer CC
to charity compllters CHy and other computer OCz, where y = 1...k, and z = 1..j
such as bank computers B~x and various charities such as debit account holders,
credit card issuers, etc. These charities and other institutions are the ultimate
s receivers of the dQn~tions and deposits moneys collected at the cash registers
CRx. The computer CC also includes a default account DA with consumer
ledgers to hold moneys not otherwise allocated.
The cash register CRx includes a change display for exhibiting cash
transactions, credit cards, or check purchases. The display automatically operates
to show numbers in question. A card reader CDx with a keypad KPx allows the
donor or clerk to enter the donation directly. The keypad KPx permits the
donor to change the allocation for this transaction alone of permanently. The
keypad KPx also allows the donor to reduce the amount donated so that he can
receive cash change. The terminal RTx reports the donation directly to the
central computer CC via the communication system CS. The central computer
CC prints out periodic reports for interested parties on a need-to-know basis.
According to the invention, a consumer in a shop, supermarket,
gasoline station, department store, etc. selects the desired merchandise and bring
them to a clerk. The clerk inputs the price of all items in a cash register CRx
by way of a register keyboard or a bar code reader and the register totals the
price. The consumer then offers the clerk either the exact amount of cash or a
sum eYcee~ing the price, and the clerk enters that cash and the amount into the
cash register. The cash register CRx then subtracts the price from the cash.
If the consumer gives the clerk the exact price nothing more need
happen. However, if the money offered the clerk exceeds the price, the
consumer may, if he or she wishes, choose to receive the change or to donate or
save all or a portion of the change. To do the latter, he or she enters a donor
card number into the keypad KPx or enters the donor card itself into the card
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reader CDx. The latter reads the number &om a bar code or magnetic stripe on
the card. The consumer can also enter into the keypad the how much of the
total change he or she is to receive should be credited to various predeterminedaccounts in the central computer CC. The register CRx reads the numbers
5 entered into the keyboard or the number entered by way of the card reader CDx.
A donor card DCl according to the invention appears in Fig. 2
with a magnetic stripe MS carrying the donor's number. A card DC2 in Fig. 3
in~hldes the number in the form of a bar code BA.
After receiving the data, the register CRx accesses the central
computer CC. The latter allocates the change, or portion of the change selected
by the consumer, among various charity accounts CA andi other accounts OA
in the computer CC according to the preprogrammed comm~ntlc which the
consumer has previously entered into the central computer. The consumer
receives a printout of all donor transactions as well as the just-completed
commercial transaction.
If desired, the consumer can choose to donate only a fraction of
the difference between the cash presented and the price. The consumer then
enters the amount to be donated and receives the appropriate cash change.
According to an embodiment of the invention, with every
transaction, the computer CC electronically transfers all amounts allocated to
each charity CH, immediately or as soon as the computer can access the charity
computer. In this way the donor is always ~ssured that the contribution takes
effect immediately. Deposits in the other accounts OA may be sent immediately
or held with a sufficient amount is accl-mulated to be acceptable by other
2 5 institutions.
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An example of the operation of a cash register CRx, keypad KPx,
and card reader CDx appears in the flow chart of Figs. 4 and 5. Here, it is
~c.~llmPd that the customer is purchasing merch~n-lice that may carry bar codes.However, the invention is also applicable for purchase of services, rentals, or
5 other valuables.
In step 104 of Fig. 4, the clerk enters the prices of the various
pieces of merch~n~ e, either by way of a keyboard (not shown) or a bar code
reader BCRx, into the cash register CRx. In step 107, the cash register
determines the total price. The customer then gives the clerk the cash to cover
lo or exceed the total price. While this example refers to cash, the invention is also
applicable to payment by credit card. That is, the customer may wish to have an
amount charged to the credit card in excess of the price in order to make
donations or distributions according to the invention. For purposes of this
description the word cash is used also to embrace credit c.,rd payments.
In step 110, the clerk then enters the amount of the cash payment
into the cash register. Under normal circum~t~nces, the cash payment will equal
or exceed the total price. However, the invention allows the donor to withdraw
moneys from a credit balance in one of the accounts recorded in the central
computer CC. While unlikely, this may also occur with a credit card sale. Thus,
in some situations, the amount of cash may fall short of the total price. In step
114 the cash register determines in the amount of cash exceeds the total price.
If the answer is yes, the cash exceeds the sale price, the register
CRx determines the amount of change by subtracting the price from the cash in
step 117. If the answer is no, the cash does not exceed the sale price the register
determines the amount due in step 120. In step 124, the cash register CRx asks
whether the customer has and wishes to use a donor card. The clerk or
customer may respond by keyboard, or directly by entering the donor card into
the card reader CDx.
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If the customer does not have or does not wish to use a donor card
in response to step 124, the cash register CRx prints the transaction in step 127
and ,in step 130, ~ro~ s the clerk to make change or collect more cash. If the
customer does not offer any needed cash the clerk must abort or otherwise
5 correct the transaction.
If the customer vishes to use a donor card, the clerk may enters
this information into the register's keyboard, or the customer may enter the card
into the card reader CDx. In step 134, the register communicates with the
central computer, and the two read the donor card. In step 137, the computer
CC determines whether the card is valid. If not, the register CRx returns to step
127.
If the card is valid, the cash register CRx again asks if the cash
offered eYree-lc the total price in step 140. If not, in step 144, the computer CC
and the cash register CRx yro~ s the cash register CRx display DI to ask if the
cash register should debit the deficient amount from one of the donor
cardholder's accounts. If not, the process returns to step 127.
If the answer to step 144 is yes, the computer CC, in step 145, asks
the customer to enter his or her personal identification (PIN) number. In step
146~ the computer CC determines if the PIN number matches the card number.
2 o If not the computer returns to step 127. If yes, it determines if the card contains
a sufficient balance to cover the amount due. If not, the process again returns
to step 127. If yes, in step 150, the computer withdraws the money from the
donor account and credits it to the account of the establishment or the sponsor
SPx as pre-programmed. In step 150, the cash register CRx also prints out the
2 5 transaction.
If the answer to step 140, namely to the question whether there is
more cash than the price, is yes, step 154 causes the cash register CRY. to display
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a mesc~e asking whether the customer wishes to retain some of the change due.
If yes, the cash register CRx and the computer CC prompt the customer to enter
in the keypad KPx how much he or she wish to retain or donate. In step 154,
the cash register CR~c indicates to the clerk to give the appropriate net changeand shows the net donor amount.
The process now goes to A in Fig. 5. If the answer to step 154 is
no, the process also continues at point A in Fig. 5.
At A, step 204, in Fig. 5, the computer CC searches the records to
find the pre-programmed payout amounts for the particular donor card. The
0 payout amounts are entered as shown in Fig. 6. In step 207 of Fig. 5, the
computer CC starts apportioning the payout amounts in the pre-progr~mmed
proportions or priorities and amounts. In steps 210 to 227 it enters the selected
amounts in the accounts of various charities, banks, deb t card, and vouchers.
Normally there should be no rem~ining amount. However such an amount may
exist. Thus in stp 230 the computer CC asks if there remains any outstanding
amount. If yes, step 234 enters it into a default account selected by the donor
at an earlier time. In step 237, the computer CC updates the accounts both in
its own data banks and in the computers CHy and OTz. The computers CHy,
and OTz confirm the transactions.
2 o In a preferred embodiment, the computer CC transfers and creditscharity donations to a charity account or to the charities CHy with each
transaction. Hence the donation takes effect with each transaction.
If the answer to step 230 is no, there are outstanding amounts, the
process goes to step 237 directly. In step 240, the cash register CRx prints outthe amounts donated, entered into various accounts, the prices, the change, etc.
The computer CC and the cash register CRx then prompt the
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customer to ask if he or she ~vishes to change the progr~mmin~ of the various
donations in the computer CC. If yes, the card reader CDx displays the
apportion~r.ent and the ~mol~ntC, including balances in step 247, the consumer
then enters the desired ch~n~es in step 250, and the computer CC makes the
changes in step 254. This ends the transaction in step 257. If the answer to step
244 is no, the process goes directly to step 257.
In one embodiment of the invention, the consumer carries out
steps 244 to 254 at a separate time in a separate card readel CDx and keypad
KPx. This prevents the consumer from using these machines while the clerk
serves another customer. In fact, the establishmen~ may furnish a separate
terminal RTx just for this purpose.
Fig. 6 is a flow chart which illustrates the steps which the computer
CC takes, through the keypad KPx, to open or revise donor account or credit
account data in a new or existing card account. A display DSx on the keypad
KPx or the cash register CRx allows the computer CC to ask the consumer to
perform certain acts. After the party has accessed the computer CC the
computer, in step 304, asks whether the consumer has a donor card. If not, in
step 307, the computer CC asks the consumer to enter his or her name or
address. In step 308, the computer CC determines if all information has been
entered. If not, it returns to step 307 to ask again for the desired information.
If yes, the computer CC proceeds to step 310 to ask the consumer to choose a
personal identification (PIN) number. In step 314, the cornputer determines if
the PIN number is acceptable. If not it returns to step 310 for another number.
If yes, the compl!ter advances to step 317 to assign a new card number.
If the answer in step 304 yes, that the consumer has a card, the
computer CC proceeds to step 320 to have the customer enter the card. In step
324, it asks the consumer to enter his or her preselected PIN number. In step
327 it determines whether the entered PIN number matches the preselected PIN
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number. If not, it returns to step 324 for a corrected number. The computer
allows this procedure between steps 324 and 327 recur only three times,
thereafter it aborts the program.
If the PIN number is correct and thereby qualified, the computer
5 CC, in step 330 lists all existing donees and amounts donated during any specific
time period, such as the calendar year. The consumer may request any time
period. In step 334, it also lists all credit accounts with balances. In step 337 it
asks the consumer to list all donee accounts to be elimin~ted, if any. In step 340
it asks the consumer to list all credit accounts to be elimin~ted if any. The
computer then proceeds to step 344. Step 344 also receives a prompt from stem
317 if the card number is new.
In step 344, the computer asks the consumer to enter any new
donee account or credit account. In step 347, it determines if the donee, in theform of a charity, or credit institution, is in the list of charities or institutions that
15 have been accepted by the system. If the answer is no, the computer, in step 348
asks if the consumer wishes to have a temporary account set up for that donee
or credit institution pending inves~ tiQn. If yes to step 348, the computer, in
step 349, sets up a temporary account, and lists it as qualified pending
investigation. If the answer to 348 is no, the computer CC goes back to step 347.
Once the computer CC has qualified a donee or credit institution,
it goes to step 350 to ask if this is the last donee account or credit account the
consumer wishes to add. If not the process goes back to step 344. If yes, the
computer cancels all prior allocations in step 354 and, in step 357, sequentially
lists all rem~ining and new donee account and credit accounts showing the old
allocations where applicable. In step 360, it asks the consumer to enter a new
percentage allocation for each account. As a check, in step 364, the computer
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asks if the total percentages exceed 100%. If yes, it returns to step 360 for a new
entry. If not, it proceeds to step 367 to ask if this is the last account. If not it
goes to step 370 to ask the consumer to go to the next account and returns to
step 360. If yes, the computer CC goes to step 374 where it asks if the total
percentage is 100%. If not, the computer CC places the rem~ining percentage
in a consumer's personal default account asks the cons~mer to select an account
and change to allocations in step 377. The computer, in step 380, ends the
process and has the keypad print out the results.
According to an embodiment of the invention, the computer CC
lo demands a PIN number each time the card is used. In another embodiment, the
computer may permit others to donate in behalf of the card owner, such as a
parent contributing for a child. In that case step 124 permits entry only of thecard number without the card.
In some in.~tanceS, when the amount of cash is less than the price,
the sales establi~hment or customer may want to abort the sale. Then, at step
117, the cash register CRx asks whether to abort. If yes, the process must startagain at step 104.
The invention contrasts with present day situations in which a clerk
inputs the price of all items in the cash register and the latter totals the price.
The consumer offers either the exact amount of cash or a sum exceeding the
price, and the clerk enters that amount. The cash register then subtracts the
price from the cash.
According to the invention, the clerk also inputs the price of all
items in the cash register and the latter totals the price. The consumer still
offers either the exact amount of cash or a sum exceeding the price, and the
clerk enters that amount. The cash register then subtracts the price from the
cash. However, then the consumer enters the donor card number with its bar
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code or magnetic stripe. The register then contacts the remote procecsing unit
and the latter allocates the change according to the preprogr~mmed comm~n-l~
which the consumer has previously entered. The consumer receives a printout
of all donor transactions as well as the just-completed commercial transaction.
If desired, the consumer can choose to donate only a fraction of
the difference between the cash presented and the price. The consumer then
enters the amount to be donated and receives the appropriate cash change.
Prior to listing in the central processor, the invention qualifies each
charity for their tax exempt status, operations, management activities, litigation,
and other pertinent legal and fin:~nci~l information. The charity must certify to
the facts. If the reported information meets the requirement, the charity
qu~lifies. The computer initiates a checking and updating of the qualification
&cts on a regular basis. The central processor the keeps the qualified charitieson an ongoing basis.
The register furnishes the donor a printed receipt of each donor
transaction for tax purposes and authentication that the charity will receive the
money. The receipt shows the serial number, amount donated, date, total
donated by the donor, and the current financial results of any specific campaigns
or project received by the charity overall.
One embodiment of the invention furnishes other rewards to the
donor. For example, the terminal may play a tune, such as "~t's a Small World"
in response to donation to the United Nations children's fund. Alternatively thedonor may receive a message that the last ten cent donation has closed another
$100 units in donations to this charity and provide a special discount coupon.
2 5 As another example the donor may receive a message that the donor's
contribution is being matched by a sponsor with a bonus donation.
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The invention supervises, implement, and coordinates charitable
contributions to benefit all participants in the giving cycle, including the donors,
sponsors, charitable org~ni7~tions~ Internal Revenue Service, and end recipients.
It allows remote receiving and sending stations, connected to a central procecsing
station, to accept any denomination of giving from a single penny to unlimited
dollars. Regardless of the size of the donation, it effectively warrants that all
participants that the design~ted charity has received the donated funds. It thussupports the authenticity of each donation. It can offer unlimited access to thedonors concerning their contributions to charities and savings accounts, the
0 intended use of the funds, and feedback concerning the total received by the
funds.
The invention effectively leverages the power of mere pennies into
substantial dollars that in turn become available to charities on a short term
collection basis. It rewards and encourages phil~nthropic giving and savings to
all individuals on an every day basis.
The present application relates to improved methods and systems to
operate an open consumer purchasing system using a network composed of
consumer payors using an intelligent card, neutral merchants receiving and
issuing open purchasing credits, neutral merchants providing selective
2 o clearinghouse functions and transferring net open purchasing credits, to a central
clearinghouse that only manages a singular pool of purchasing credits and does
not sell purchasing credits to consumers nor manage consumers' accounts. By
consumers being able to buy open purchasing credits in advance from a variety
of participating neutral merchants, consumers will then have convenience in
setting aside money and the flexibility of using the credits in a variety of
merchant circumstances.
In Fig. 7.1, an "open" network embodies a three level purchasing system
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comprised of Level 1 CP (consumer/payors), Level 2 MP (multiple neutral
merchant payees) who will in 2A initialize intelligent cards and in 2B sell
purchasing credits in the form of electronic purchasing credits on the intelligent
cards (IC). The MP's point of sale terminals equipped with EEPROM
5 I)r~l;~...,..ine abilities will write the purchasing credits on the IC. In Level 2C
the MP decrements electronic purchasing credits in exchange for merchandise
or services sold to the CP. The MP's terminal will then use the EEPROM
soft vare capabilities in their POS terminals to update the IC b~l~nce In Level
2C the MP's POS terminal will balance the net dif erence in electronic
10 purchasing credits and debits stored in memory over the day's transactions and
report only the net value to Level 3, the central clearinghouse (CCI). The CC1
manages a cinF~ r pool of purchasing credits and accepts and distributes funds
to MP's according to the reporting of each respective neutral MP's terminal net
value.
In Fig. 7.2, a system embodying the invention includes a clearinghouse
central computer (CC1) cont~ining a central processor CPU and a large data
storage DS. A communications system CS that may include telephone lines,
satellites, or cables cor~nects the CC1 to a number of ICRx readers in POS
terminals, personal computers, electronic cash registers (ECRx) (where x = 1,
20 . . . M, . . . N) referred to as RTx remote terminals (RT) found in retail shops,
supermarkets, gasoline stations, department stores, vending m~hines, highway
toll booths, health clinics, pay telephones, etc. at locations remote from the
central computer. Throughout this specification, the term x, when appended to
the end of a reference character, is equal to 1, . . . M, . . . N.
The RTx are connected to respective keypads KPA and along with other
components together they constitute a remote terminal that is connected to the
CC1.
The RTx in the embodiment of a ECRx includes a change display for
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18
exhibiting cash transactions, credit cards, or check purchases. The display
automatically operates to show numbers in question. A card reader ICRx with
a keypad KPx allows the CP or clerk to enter the amount of funds deposited or
decremented directly. The keypad KPx permits the CP to change the allocation
for this transaction alone or permanently. The keypad KPx also allows the CP
to reduce the amount deposited or decremented so that the CP can receive cash
change. The RTx or ECRx reports the total net value of the deposits and
decrements directly to the CC1 via the comm-lnication system CS. The CC1
prints out periodic reports for interested parties on a need-to-know basis.
0 According to the invention, a consumer in a shop, supermarket, gasoline
station, department store, etc. purchases a generic IC and makes a deposit with
the neutral merchant. The MP's ECR uses the ICR to write on to the IC the
amount of purchasing credits deposited into the network. The actual funds
received by the MP will be later forwarded to the CC1 after the ne. value of theday' s network receipts are determined by the RTx.
After the consumer has put electronic purchasing credits on their IC the
y may then pay for their purchases using the IC in a decrementing fashion. This
is accomplished by the CP inserting the IC into the ICR connected to the ECR
that will take off electronic purchasing credits as payment and re-write the IC
reflecting the new balance.
The IC card according to the invention appears in Fig. 7.3. In another use
of the invention the IC technology may be incorporated in the design of a car
windshield or car window to allow the invention to be accessed under a variety
circumstances, i.e., drive through window, toll booth, etc.
In step 7100 of Fig. 7.4, the terminal is activated and scrolling.
In step 7102 IC is inserted into the terminal and the terminal asks is this
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19
a valid card?
If the answer is no, in step 7104 the card is initialized and goes to step
7106.
If the answer is yes, in step 7106 the clerk enters the amount of funds t hat
5 will be deposited onto the IC and the computer chip in the IC updates the card balance with purchasing credits.
In step 7108 the remote terminal asks the IC if there are any processing
fees due?
If the answer is no, in step 7112 the IC's balance remains as progr~mm~d
10 and the terminal records in memory the deposited amount and computes
balance.
If the answer is yes, in step 7110 the RT decrements any processing fees
from the balance on the IC and goes to step 7112.
In step 7114 the deposiling transaction is printed out and displayed.
In step 7116 the amount of funds accepted into the system and the fees
deducted are recorded in the terminal's memory and the net balance of
purchasing credits issued and fees paid are updated.
In step 7118 the process ends and the computer goes back to step 710C.
In step 7200 of Fig. 7.5, the terminal is activated and scrolling.
In step 7202 the clerk enters the total purchase price due the payee.
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In step 7204 the payor provides the IC to be decremented for payment.
In step 7206 the computer asks if there is sufficient electronic purchasing
credits to cover the charges?
If no to step 7206, the terminal returns to step 7200.
If yes, in step 7208 the RT decrements the exact amount and the IC
reflects the new balance on the IC.
In step 7210 the amount of purchasing credits deducted from the IC are
recorded in the terminal's memory and the net balance of credits due the payee
are updated.
0 In step 7212 the terminal displays and prints receipt.
In step 7214 the transaction ends and the terminal returns to step 7200.
In step 7300 in Fig. 7.6, upon command from the CC1 the terminal
searches for the net value between the issuing of purchasing credits onto the ICx
and the decrementing of purchasing credits into the terminal by searching for the
last system balancing entry, step 7116 or step 7210, and sends only the calculated
net value onto the central clearinghouse operated in Level 3.
In step 7400 in Fig. 7.7, the central computer located at Level 3 enters in
to memory the reporting of each payee's terminal net value.
In step 7402 in the CC1, the terminals that have issued more purchasing
credits onto ICx then they have received from ICx sends funds to the CC1 as
payment for the purchasing credits issued.
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In step 7404 in the CC1, the terminals that have received more purchasing
credits from ICx then they have issued onto ICx receives funds from the CC1 as
payment for the sale of goods and services.
In step 7406 the CC1 records its final daily balance and prints out report
s.
In step 7500 in Fig. 7.8, the IC is inserted into a PC so that activity
recorded on the IC can be analyzed and printed out per the soft~vare used in thePC.
The invention provides an open network for neutral merchants and
lo consumers that works with the fewest number of computer account entries and
yet provides the most available privacy for the consumer payors and the neutral
merchant payees. The consumers can m~int~in their anonymity. The merchants
can m~int~in control of their proprietary information on sales since they only
report net figures to the central clearinghouse versus reporting all of their sales
figures.
Figs. 8.1A to 8.10E illustrate several embodiments including:
(1.) In Fig. 8.1A~ an "open" POS network embodies a four level spending
/saving system comprised of Level 1 SP (multiple subscriber/payors), who tender
excess payments or deposit excess funds to Level ~ MC (multiple
merchant/collectors), who in turn make computer entry of data and funds for
electronic transfer to Level 3 CCC (a singular managed clearinghouse central
computer), who in turn transfers data and funds to Level 4 (multiple provider
accounts), for the final purchase of products or services.
In Fig. 8.1A the excess funds are created at point of sale counters (POS)
by the merchant/ collectors (MC) who "front end" process the subscriber/payor
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(SP) spending transactions to determine the excess difference between the
purchase price of goods or services and the amount of payment rendered.
After the amount of excess funds is determined by the MC's electronic ca
sh register (ECR), the SP makes a deposit into a clearinghouse central computer
(CCC) by providing a transaction card or an account r,umber to the MC. The
MC then swipes the card or enters the account number through an ECR or a
draft capture remote terminal to record the time, the terminal location, the
amount of funds entered, and the account number used. The terminal or cash
register then prints out a receipt of the depositing transaction and the MC
0 returns the card and the receipt to the SP.
The depositing of individual transactions into the MC remote terminal ca
n be completed in an "off-line" or "on-line" or a combinatio~ of both modes. At
the completion of a specified period or amount, e.g. day, week, $50.00, the total
off line transaction file stored in the MC terminal is then batched "on line" to the
CCC (clearinghouse's central computer). The ability to process individual
depositing transactions in an off line mode is made possible due to the fact that
the system does not require on line authorization, as in credit and debit card
processmg.
Each term nal location follows the same reporting procedure so that the
CCC will have a record of all transactions made into the system, regardless of
the location of the terminals. The files transferred to the CCC contain details of
each deposited transaction by the identification of the account, the amount of the
deposit, the date, and the terminal that accepted the deposit. The actual transfer
of cash into the system starts when the MC deposit the cash received from the
SP into their bank for EFT transfer to the clearinghouse's bank account and
concludes with the CCC EFT transferring funds to each listed PC (provider
account) per the transaction records received from the merchant terminals. The
transfer of cash from one account to the next is accomplished by the usual and
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cl-stom~ry bank EFT transferring through the ACH (Automatic Clearing House)
or via EDI (Electronic Data Interchange).
Effectively, the system allows each SP the ability to make multiple
deposits, in varied cross country locations, into terminals operated by unrelated
5 parties, depositing as little as a penny in any one transaction, and often on a 24
hour demand basis.
The MC that operate the ECR terminals are at the time of depositing both
neutral and passive as to the selection of the consumer's provider(s), as well as
not directing the distribution of funds to the consumer's provider(s). Only in this
10 system are SP able to deposit their excess change created when dealing with
multiple and diverse payees. The money is deposited into an "open" network that
will pool and then transfer the once fragmented funds onto PA selected by the
SP. In this system as compared to the existing state of art. the PA who will
receive the deposited funds from the network need not also be the original
collector of the deposits. Therefore, we have a "open" system that allows for a
mix and match of diverse collectors and providers.
Under the system it is possible for one entity to provide both a collect or
and provider role, but under different and autonomous points in the network
cycle. For example, Sears may enroll a subscriber consumer in a Sears store
account allowing the consumer to use their Sears issued mag stripe card to
identify them when they deposit excess change into any merchant/collector
terminal. In this capacity Sears is playing the role of a distinct provider in the
network. The card may then be used to deposit excess funds at fast food
restaurants, convenience stores, other department stores, etc. Also the SP couldgo into any Sears store and deposit excess funds into a Sears terminal for
transfer to the network. On these occasions Sears would be playing a distinct role
as a participating MC, within the network, and follow the same procedures as
any other MC, as well as also being a PA at the end of the network chain.
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24
In Figs. 8.1B&C, the Clearinghouse Managed System (CMS) starts with
Level 1, the subscriber/payors, tendering an excess financial payment to Level
2, merchant/collectors. They in turn enter the amount of the excess payment intoan electronic cash register/remote terminals which then sends the funds and dataon-line per transaction, or along with other deposits in a batched format, by a
communication system to Level 3, clearinghouse central computer. Level 3
assigns the funds to an account previously opened by Level 1 SP through servicesprovided by Level 3. The funds are then forwarded, when they reach pre-selected
thresholds, by EDI (Electronic Data Interface) transfer to Level 4, the provideraccounts, selected by Level 1 SP.
The Clearinghouse Managed System (CMS), has the network providing a
more active role by the system's central computer enrolling the SP in accounts
and then ~c.~llming the role of an account manager. Under this arrangement the
network will direct the overall operation of the system, issue transaction cards(bar code, mag stripe and/or "smart" cards or devices), operate the system's
central computer, provide both on-line and off-line communications between the
POS terminals and the central computer, accept funds, assume fiscal
responsibility for the SP funds on deposit, m~int:~in ali ac~ount records, provide
all outside payrnents to parties selected by the SP, and even allow the SP the
2 o ability to access their accounts for the purpose of receiving credit at the time of
POS purchase to pay the MC. Under the CMS, in addition to the network
serving as an account manager, it will also appoint banks, credit card institutions,
and merchant/collectors to assume additional fiduciary responsibilities.
In Figs. 8.1D&E, the Provider Managed System (PMS) starts with Level
1, the subscriber/payors, tendering an excess financial payment to Level 2,
merchant/collectors. They in turn enter the amount of the excess payment into
an electronic cash register/remote terminals which then preferably send the
funds and data, along with other deposits in a batched format, by a
communication system to Level 3, clearinghouse central computer. Level 3 then
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segregates the tr~nc~ctionc per provider accounts. The data and funds are then
for varded, when they reach pre-selected thresholds, by EDI (Electronic Data
Interface) transfer to the Level 4 providers for account management and final
distribution. Level 1 SP initially join the network by enrolling in accounts with
Level 4 providers.
The Provider Managed System (PMS), is an "open" system that creates a
network whereupon SP will directly enroll in accounts managed by PA, receive
mag stripe cards issued by the PA, and deposit their excess change at POS
Iocations to be transferred by the MC to a neutral network clearinghouse (CCC).
Under the PMS, the CCC will accept and process the transaction data and funds
and forward both to the PA according to the card identification. The PA will
then manage the accounts per the SP instructions.
In the PMS scenario both the merchant/clearinghouse are passive as to the
opening of accounts and the SP selections of the final distribution of the funds.
Here both the payees and the clearinghouse only accept deposits and transfer
both the cash and transaction records onto the end P~
Also under the PMS embodiment, once the funds are received by the PA,
who can be banks, insurance companies, security firms, merch~ndicers, travel
agencies, charitable institutions, etc., the SP will determine how to spend the
savings for services and/or products.
In Fig. 8.1F, in both the Clearinghouse Managed System or Provider
Managed System the data transfer is sent via a proprietary network from Level
2 MC to Level 3. After processing by Level 3 selecteu data is sent via a
proprietary network to Level 4. On the funds transfer side Level 1 deposits the
funds at Level 2 outlets. Level 2 deposits the funds into the MC's bank account
and by EDI the funds are transferred to Level 3's bank account for final EDI to
Level 4's bank account.
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26
In Fig. 8.2, a system embodying the POS invention includes a
clearinghouse central computer (CCC) cont~inin~e a central processor CPU and
a large data storage DS. A communications system CS that may include
telephone lines, satellites, or cables connects the CCC to a number of electronic
cash registers (ECRx) (where x = 1, . . . M, . . . N) in retail outlets, such asshops, supermarkets, gasoline stations, department stores, etc. at locations remote
from the central computer. Throughout this specification, the term x, when
appended to the end of a reference character, is equal to 1, . . . M, . . . N.
The ECRx cash registers are connected to respective keypads KPx and
card readers CDx. Along with other components together they constitute a
remote terminal RT that is connected to a variety of central computers.
In the CMS embodiment of the invention accounts are managed in the
CCC. Money is collected at the ECRx for crediting to the consumers' ledgers in
the accounts of various charities and other institutions such as banks, debit card
issuers, credit card issuers, etc. The data storage DS contains individual storage
for charity accounts CA and other accounts OA, such as for banks etc., all with
ledgers for individual consumers.
In the PMS embodiment of the invent;on the CCC acts as a clearinghouse
a nd transfers all data and funds onto the respective PA for account management
and final distribution.
The CCC communications system CS also connects the CCC to charity
computers CHy and other computer OCz, where y = l...k, and z = 1..j such as
bank computers, merchandise computers, debit account holders, credit card
issuers, etc. These charities and other institutions are the ultimate receivers of
the donations and deposits collected at the electronic cash registers ECRx. The
CCC also includes a default account DA with consumer ledgers to hold moneys
not otherwise allocated.
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The ECRx in~ludes a change display for exhibiting cash transactions, credit
cards, or check purchases. The display automatically operates to show numbers
in question. A card reader CDx with a keypad KPx allows the SP or clerk to
enter the deposit directly. The keypad KPx permits the SP to change the
5 allocation for this transaction alone or permanently. The keypad KPx also allows
the SP to reduce the amount deposited so that he can receive cash change. The
terminal RTx or ECRx reports the deposit directly to the CCC via the
communication system CS. The CCC prints out periodic reports for interested
parties on a need-to-know basis.
According to the invention, a consumer in a shop, supermarket, gasoline
station, department store, etc. selects the desired merchandise and brings them
to a clerk. The clerk inputs the price of all items in a ECRx by way of a register
keyboard or a bar code reader and the register totals the price. The consumer
offers the clerk either the exact amount of cash or a surn exceeding the price.
Then the clerk enters that cash and the amount into the cash register. The ECR
subtracts the price from the cash.
If the consumer gives the clerk the exact price nothing more need happen
. However, if the money offered the clerk exceeds the price, the consumer may,
if he or she wishes, choose to receive the change or to donate or deposit all ora portion of the change. To do the latter, he or she enters a card number into
the keypad KPx or enters the card itself into the card reader CDx. The latter
reads the number from a bar code or magnetic stripe on the card. The consumer
can also enter into the keypad how much of the total change, he or she is to
receive, should be credited to various predetermined accounts in the CCC. The
register ECRx reads the numbers entered into the keyboard or the number
entered by way of the card reader CDx.
In addition if SP wish to make a direct deposit of funds into the network,
(rather than make a purchase and tender excess funds), all that is necessary is
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28
to enter the amount deposited into the ECRx and the funds will be transferred
to the CCC.
A transaction card DC1 according to the invention appears in Fig. 8.3 with
a magnetic stripe MS carrying the donor's number. A card DC2 in Fig. 8.3
5 includes the number in the form of a bar code BC. In another embodiment of
the invention the card may be a smart card. Also in regard to the use of bar
codes, the codes may be incorporated in the design of a key chain device or
displayed on windshields or car windows to allow the invention to be accessed
under a variety circumstances, i.e., drive through window, toll booth, etc.
0After receiving the data, the ECR accesces the CCC The latter allocates
the change, a portion of the change, or the ~mount of a direct deposit provided
by the SP among various charity accounts CA and other accounts OA in the
CCC. The distributions to various accounts are preprogrammed comm~nc~c which
the consumer has previously instructed the CCC to complete. For each deposit
15or donation made, the SP receives a printed receipt of the transaction from the
ECRx or RTx.
If desired, the consumer can choose to deposit only a fraction of the
difference between the cash presented and the price. The consumer then enters
the amount to be deposited and receives the appropriate cash change.
20According to an embodiment of the invention, with every transaction, the
computer electronically transfers all amounts allocated to each charity CHy
immediately, as sovn as the computer can access the charity computer, or when
there is a sufficient amount of money. In this way the donor is always assured
that the contribution takes effect. Deposits in the other accounts OA may be sent
25immediately or held until a sufficient amount is accumulated to be acceptable
by the other institutions.
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29
An exarr.ple of the operation of the CMS embodiment appears in the flow
ch art of Figs. 8.4A&B. This flow chart depicts an on-line version of the CMS
embo~im~o-nt- The CMS, however, could also be operated in an off-line mode and
the transactions that are processed by Level 2 MC would then be stored in
memory and transferred in a batched format to Level 3 CCC at periodic
intervals. In Fig. 8.4A&B it is assumed that the customer is purchasing
merrh~ndice that may carry bar codes. However, the invention is also applicable
for purchase of services, rentals, or other valuables.
In step 8104 of Fig. B.4A, the clerk enters the prices of the various piece
s of merc~l~ndise, either by way of a keyboard (not shown) or a bar code reader
BCRx, into the cash register ECR. In step 8107, the cash register determines thetotal price. The customer then gives the clerk the cash to cover or exceed the
total price. While this example refers to cash, the invention is also applicable to
payment by check, credit or debit card. That is, the customer may wish to have
an amount charged to the checking account, credit or debit card in excess of theprice in order to make donations or distributions according to the invention, For
purposes of this description the word cash is used also to embrace check, creditor debit card payments.
In step 8110, the clerk then enters the amount of the cash payment into
t he ECRx. Under normal circ~lmct~nces, the cash payment will equal or exceed
the total spending price unless there is deposit of cash into the system withouta purchase. However, the invention allows the SP to withdraw moneys from a
credit balance in one of the accounts recorded in the CCC. While unlikely, this
may also occur with a credit or debit card sale. Thus, in some situations, the
amount of cash may fall short of the total price. In step 8114 the cash registerdetermines if the amount of cash exceeds the total price.
If the answer is yes, the cash exceeds the sale price, ~he ECRx determines
the amount of change by subtracting the priee from the cash in step 8117. If the
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answer is no, the cash does not exceed the sale price, the register determines the
amount due in step 8120. In step 8124, the cash register ECRx asks whether the
customer has and wishes to use a network card. The clerk or customer may
respond by keyboard, or directly by entering the card into the card reader CDx.
s If the customer does not have or does not wish tG use a network card in
response to step 8124, the cash register ECRx prints the transaction in step 8127
and in step 8130, prompts the clerk to make change or collect more cash. If the
customer does not offer any needed cash the clerk must abort or otherwise
correct the transaction.
0 If the customer wishes to use a network card, the clerk may enter thisinformation into the register's keyboard, or the customer may enter the card into
the card reader CDx. In step 8134, the ECRx reads the network card. In step
8137, the ECRx determines whether the card is valid. If not, the register ECRx
returns to step 8127.
If the card is valid, the ECR again asks if the cash offered exceeds the
total price in step 8140. If not, in step 8144, the ECR prompts the cash register
CR display DS to ask if the cash register should debit the deficient amount fromone of the SP cardholder's accounts. If not, the process returns to step 8127.
If the answer to step 8144 is yes, the computer CCC, in step 8145, asks for
the customer to enter his or her personal identification (PIN) number. In step
8146, the CCC determines if the PIN number matches the card number. If not,
the computer returns to step 8127. If yes, it determines if the card contains a
sufficient balance to cover the amount due. If not, the process again returns tostep 8127. If yes in step 8150, the computer with(lraws the money from the card
account and credits it to the account of the establishment or the sponsor SPx aspre-programmed. In step 8150 the cash register ECRx also prints out the
transaction.
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If the answer to step 8140, namely to the question whether there is more
cash than the price, is yes, step 8154 causes the ECR to display a message asking
whether the cl-ctQmer wishes to retain some of the change due. If yes, the ECR
I~ro~,lpls the customer to enter into the keypad KPx how much he or she wishes
5 to retain or deposit. In step 8157, the cash register ECR indicates to the clerk
to give the applo~,liate net change and shows the net deposit amount.
The process now goes to A ir. Fig. 8.4B. If the answer to step 8154 is no,
the process also continues at point A in Fig. 8.4B.
At A, step 8204, in Fig. 8.4B the CCC searches the records to find the
lo pre-programmed pay out amounts for the particular network card. The pay out
amounts are entered as shown in Fig. 8.6. In step 8207 of Fig. 8.4B, the CCC
starts apportioning the pay out amounts in the pre-programmed proportions by
priorities and amounts. In steps 8210 to 8227 it enters the selected amounts in
the accounts of various charities, banks, debit card, and vouchers. Normally there
should be no rem~ining amount. However, such an amount may exist. Thus in
step 8230 the CCC asks if there remains any outstanding amount. If yes, step
8234 enters it into a default account selected by the SP at an earlier time. In step
8237, the CCC updates the accounts both in its own data banks and in the
computers CHy and OCz. The computers CHy and OCz confirm the
2 o transactions.
If the answer to step 8230 is no, there are outstanding amounts, the
process goes to step 8237 directly. In step 8240 the ECRx prints out the amountsdeposited, entered into various accounts, the prices, the change, etc.
The CCC and the ECRx then prompt the customer in step 8244 to ask if
he o r she wishes to change the programming of the various accounts in the
CCC. If yes, the card reader CDx or the CCC displays the apportionment and
the amounts, including balances in step 8247, the consumer then enters the
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desired changes in step 8250, and the CCC or the card reader makes the changes
in step 8254. This ends the transaction in step 8257. If the answer to step 8244is no, the process goes directly to step 8257.
In one embodiment of the invention, the consumer carries out steps 8244
t o 8254 at a separate time in a separate card reader CDx and keypad KPx. This
~r~,~.cnls the corlsumer from using these machines while the clerk serves another
customer. In fact, the establishment may furnish a separate terminal RTx just
for this purpose.
Prior to listing in the CCC, the invention qualifies each charity for their
0 tax exempt status, operations, management activities, litigation, and otherpertinent legal and fin~nri~l information. The charity must certify to the facts.
If the reported information meets the requirement, the charity qualifies. The
CCC initi~teS a checking and updating of the qualification facts on a regular
basis. The CCC keeps the qualified charities current on an ongoing basis.
The register furnishes the SP with a printed receipt of each donation for
tax purposes and authentication that the charity will receiv~ the money. In an on
line mode the receipt can show the date, outlet location, serial number, amount
donated, total donated to date, and the current fin~nci~l results of any specific
campaigns or projects received by the charity overall.
One embodiment of the invention furnishes other rewards to the donor.
For example, the terminal may play a tune, such as "It's a Small World" in
response to a donation to the United Nations children's fund. Alternatively, thedonor may receive a message that the last ten cent donation has closed another
$100 unit in donations to this charity and provide a spe.ial discount coupon. Asanother example the donor may receive a message that the donor's contribution
is being matched by an independent sponsor with a bonus donation.
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The invention supervises, implements, and coordinates charitable
contributions to benefit all participants in the giving cycle, including the donors,
sponsors, charitable or~ni7~tions, Internal Revenue Service, and end recipients.It allows remote recei~ing and sending stations, conn~cted to a central proceccing
station, to accept any denomination of giving from a single penny to unlirnited
dollars. Regardless of the size of the donation, it effectively warrants to all
participants that the decign~ted charity has received the donated funds. It thussupports the authenticity of each donation. It can offer unlimited access to thedonors concerning their contributions to charities and savings accounts, the
intended use of the funds, and feedback concerning the total received by the
funds.
The invention effectively leverages the power of mere pennies into
substantial dollars that in turn become available to charities on a short term
collection basis. It rewards and encourages phil:-nthropic giving and savings toall individuals on an everyday basis
An example of the operation of the PMS embodiment appears in the flow
ch art of Fig. 8.5A&B. In the PMS embodiment, the opening and closing of
accounts is ~ccum~od by PA central computers. This flow chart depicts an off line
version of the PMS embodiment in which transactions are processed at Level 2
MC and then stored in memory and transferred via a batched format to Level
3 CCC at periodic intervals. Level 3 would then sort the transactions according
to Level 4 account origination and forward said transactions to Level 4. The
PMS, however, could also be operated in an on line mode and the transactions
would then be processed by a smart card or on line with a central computer
located at Level 3 or 4.
Referring now to Fig. 8.5A&B, there is a flo- chart which illustrates the
steps which the PMS processes transactions made through ECRx at Level 2 MC.
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34
Beginning at the top, in step 8300, the remote terminal at the POS counter
stands ready to receive input and is also scrolling information messages on how
to use the system.
In step 8302, the clerk inputs the price of each item into ECRx by a bar
5 code reader or by keypad.
In step 8304, the terminal computer totals the price of all of the items.
In step 8306, the clerk enters the amount of payment, on most occasions
c ash, into the terminal computer. However, if a check, debit or credit card is
tendered by the SP, any excess payment effectively becomes cash and is thereforelO eligible for deposit.
In step 8308, the terminal computer asks if the amount tendered is more
than the total purchase price.
If no and the number is zero, the terminal computer goes to step 8310 and
a receipt is printed out. In step 8312 the transaction would end and the terminal
computer returns to step 8300 for new transactions.
If yes, in step 8314 the terminal computer calculates the difference and
displays the value and goes to step 8316. Ir. step 8316 the terminal
computer asks if the consumer wishes to use the system.
If the answer is no, in step 8318 a receipt is printed out, and in step 8320
20 the transaction is ended and the terminal computer returns to step 8300.
If the answer to step 8316 is yes, in step 8322 the terminal computer asks
if you are a subscriber?
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If the answer is no, step 8324 allows a non-subscriber to use the system
by asking the clerk to enter in a generic access code. On these occ~cionc, most
likely, the non-subscriber will be making a donation for charitable purposes. Atthis time in step 8326, the non-subscriber will pick from a list of applo.ed
charities and the clerk will key in the selection. In step 8328 a receipt will be
printed showing evidence of the contribution. This same receipt will also provide
an audit trail for individuals and or org~ni7~tions to confirm that the charitable
institutions received the donation. In step 8330 the transaction would end and
the terminal computer returns to step 8300.
lo Referring now to Fig. 8.5B if the answer is yes, in step 8332 the subscriber
or the clerk enters the subscriber's card into the terminal. The terminal
computer reads the card and automatically records all of the cents in the POS
change as a deposit or contribution. If the subscriber wishes to add in all of the
change (coins and bills) 8332A is entered into the computer. If the subscriber
wishes to add in a specified portion of the change, 8332B is prompted into the
keypad along with the specified amount, for example $1.54 out of $2.54 in
available change.
In step 8334, the terminal computer asks if the subscriber wishes to bypass
their default instructions for charities and select a special charity for this
transaction.
In step 8336 if the answer is no, the terminal computer advances to
step 8340.
If yes in 8334, in step 8338 the bypass char ty account number is entered
into the terminal computer through the keypad.
In step 8340 the subscriber will receive a receipt showing their donor
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36
contribution.
In step 8342 the terminal computer writes the transaction into memory.
In step 8344 the transaction would end and the terminal computer
returns to step 8300.
In step 8346, on a programmed time basis, the terminal computer
folwards, by mo~em, the batch transactions held in memory to Level 3 CCC.
In order to enroll in the CMS embodiment, SP would sign up for accounts
with Level 3 CCC. In order to enroll in the PMS embodiment, SP would sign up
for accounts with Level 4 PA.
0 Fig. 8.6 is a flow chart that illustrates the enrollment steps for a CMS o
r PMS account which a central computer takes, through the keypad KPx, to open
or revise an SP account. A display DSx on the keypad KPx or the ECRx allows
a central computer to ask the consumer to perform certain acts. After the party
has accecced the computer, in step 8404, it acks whether the consumer has a
network card. If no in step 8407, the computer asks the consumer to enter his orher name or address. In step 8408 the computer determines if all information hasbeen entered. If not, it returns to step 8407 to ask again for the desired
information. If yes, the computer proceeds to step 8410 to ask the consumer to
choose a personal identification (PIN) number. In step 8414 the computer
determines if the PIN number is acceptable. If not, it returns to step 8410 for
another number. If yes, the computer advances to step 8417 to assign a new card
number.
If the answer in step 8404 is yes, that the consumer has a card, the
computer proceeds to step 8420 to have the customer enter the card. In step
8424 it asks the consumer to enter his or her pre-selected PIN number. In step
8427 it determines whether the entered PIN number matches the pre-selected
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PIN number. If not, it returns to step 8424 for a corrected number. The
computer allows this procedure between steps 8424 and 8427 to occur only three
times, thereafter it aborts the program.
If the PIN number is correct and thereby qualified, the computer in step
5 8430 lists all existing accounts and ~mo~ntc deposited during any specific time
period, such as the calendar year. The consumer may request any time period.
In step 8434 it also lists all accounts with b~l~n~es In step 8437 it asks the
con~nmer to list all accounts to be elimin~te~l if any. In step 8440 it asks theconsumer to approve any accounts to be elimin~ted if any. The computer then
lo proceeds to step 8444 to list all new accounts. Step 8444 also receives a prompt
from step 8417 if the card number is new.
In step 8447 it determines if the account, in the form of a charity,
merchant, or institution, is in the list of charities or institutions that have been
accepted by the system. If the answer is no, the computer in step 8448 asks if the
consumer wishes to have a temporary account set up for that donee or institutionpending investigation. If yes to step 8448, the computer in step 8449 sets up a
temporary account, and lists it as qualified pending investigation. If the answer
to 8448 is no, the computer goes back to step 8447.
Once the computer has qualified a donee or institution, it goes to step
8450 to ask if this is the last account the consumer wishes to add. If not, the
process goes back to step 8444. If yes, the computer cancels all prior allocations
in step 8454 and in step 8457 sequentially lists all rem~ining and new accounts
showing the old allocations where applicable. In step 8460 it asks the consumer
to enter a new percentage allocation for each account. As a check, in step 8464,the computer asks if the total percentages exceed 10G~. If yes, it returns to step
8460 for a new entry. If not, it proceeds to step 8467 to ask if this is the last
account. If not, it goes to step 8470 to ask the consumer to go to the next
account and returns to step 8460. If yes, the computer goes to step 8474 where
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it asks if the total percentage is 100~o. If not, the computer places the rem~ining
percentage in a co-.~u...~r's personal default account and asks the consumer to
select accounts and change allocations in step 8477. The computer in step 8480
ends the process and prints out the results.
(2-) Referring now to calc.. l~ting the additional amount by
predetermined data, referred to as the rounder system, Fig. 8.7A is a block
design that describes the invention's four level rounder system that will allow
consumers to create excess funds when they make exact payments for services or
goods using checks, credit, or debit drafts.
In Fig. 8.7 Level 1 a subscriber (SP) makes an exact payment using a
check, credit or debit card and tenders the draft to a payee on Level 2 who in
turn deposits the draft for customary authorization, approval, and payment by
Level 3 Account Managers (AM) (as in banks or credit institutions). Under the
provisions of the invention Level 3 AM will now also add or subtract a
predetermined calculation to the face amount of the draft or the account entry
itself for the purpose of creating an excess payment. The amount of excess
payment called a rounder amount is then added to the face amount of the draft
and the total number is then debited (as in withdrawals or account fees) or
added (as in deposits or interest payments) to the account balance. Level 3 AM
will then manage the funds and make distributions to Provider Services (PS)
Level 4 (as in mutual funds, annuities, etc.).
The rounder system embodiment of the invention creates excess funds
from exact payments and without the cooperation or even awareness of the
payee who accepts payments for the purchase of services or goods. The system
2s is based on the ability to create excess funds hy applying a determinant to the
face amount or number of account entries, e.g. checks, ATM withdrawals, credit
and debit drafts.
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The rounder system versus the POS svstem occurs in a different
e~lviron,nent and at a different point in the commercial purchasing cycle. The
processing of transactions occurs at the "back end" of the commercial cycle whencheck and credit drafts are debited against their existing account bal~nces
5 Effectively, the invention adds (as in withdrawals or account fees) or subtracts
(as in deposits/payments or interest dividends) an amount of excess funds, e.g.
$1, $2.14, S5.01, S10, S0.28, etc., to the face amount or number of entries and
then adjusts the account balance accordingly. The amount of excess funds are
then displayed in the account and periodically transferred to accounts for
lo provider services, i.e., mutual funds, annuities, merchandise, charities, etc.
Under this system the SP opens up a new account or updates an existing
account, e.g. checkine, credit, or debit account, and instmcts the bank or credit
card issuer to add or subtract a determinant to each transaction after they are
returned to the bank or credit issuer for final debiting ag3inst the consumer's
account.
The excess funds that are created by the rounder system can be held
internally by the bank or credit institution or assigned to other providers for the
purchase of mutual funds, annuities, bonds, travel services, merchandise, etc.
When consumers use the above described improved methods to create
excess funds from spending transactions in a combined form, they will have
achieved the ability to save every time they spend, regardless of whether they use
cash, write a check, use an ATM machine, use a credit or debit card.
Referring now to Fig. 8.8, there is a flow chart which illustrates the steps
which central computers take, through a keypad and display, to open or revise
2 5 a rounder account. The subscriber/subscriber's account instructions will then be
applied by the institutions' central computers (CC) to create the excess funds.
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In step 8500 the CC asks the consumer if you have a rounder account.
If no, in step 8502 the CC asks the concllmer to enter his or her name,
address, social security number, select a pin number, as well as any other vitalinformation needed to open an account.
In step 8504 the CC determines if all the needed information has been
entered. If not, it returns to step 8502 to ask again for the desired information.
If yes, the CC proceeds to step 8506 to input the consumer's PIN number
o r code name. In step 8508 the CC determines if the PIN number is acceptable.
0 If not, it returns to step 8506 for another number.
If yes, the CC advances to step 8510 to assign a rounder account number.
The computer then goes to step 8522 to create new accounts.
If the answer in step 8500 is yes, that the consumer is already a subscriber,
the CC proceeds to step 8512 to have the subscriber enter their rounder account
number. In step 8514 it asks the subscriber to enter his or her pre-selected PINnumber. In step 8516 it determines whether the entered PIN number m~tches
the pre-selected PIN number for the subscriber number entered. If not, it returns
to step 8512 to correct the subscriber number and/or PIN number. The CC
allows this procedure between steps 512 and 516 to recur only three times,
thereafter it aborts the program.
If the PIN number is correct and thereby qualified, the CC in step 8518
lists the rounder number or percentage that is applied to each account entry
($1, $3, 2%, etc.), stop orders (when to stop processing rounder transactions), the
vehicles used for processing and depositing, e.g., checking accounts & ATM
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41
terrninals, debit card use, and credit card use, names and addresses of all
sub-accounts (savings, investing, and charitable choices), and the percentage ofthe rounder tr~nC~ctioll ~c~iened to each sub-account for a ~1m~ tive total of
100%. . In step 8520 it asks the subscriber to list all accounts to be
5 elimin~ted ormodified, if any.
In step 8522 the CC asks the subscriber if there are any new accounts to
add.
If the answer is no, the computer goes to step 8526 to write an
l~pd~ted rounder ~cco~mt file. . If yes, the CC then proceeds to step 8524,
lo and asks the subscriber to enter any new accounts according to the rounder
number or percentage that is applied to each account entry ($1, S3, 2~o, etc.),
stop orders (when to stop future processing), the vehicles used for processing and
depositing, (e.g., checl~ine accounts & ATM terminals, debit card use, and credit
card use), names and addresses of all sub-accounts (savings, investing, and/or
15 three charitable choices), and the percentage of the rounder transaction assigned
to each sub-account for a cl~mul~tive total of 100%.
In step 8526 the computer writes a file, called the rounder account file,
cont~ining the new or revised subscriber's identification information and account
instructions.
In step 8528 the process ends and the computer returns to step 8500.
The following information will provide clarity for the steps that will b e
detailed in Fig. 8.9A-E and Fig. 8.10A-E.
The face or entry amount means the actual amount of the check/ATM
withdrawal or credit/debit card charges prior to any rounder activity.
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42
The rounder transaction is the numerical function applied against the face
amount or the entry itself, i.e., $1.00, $3.00, 2~o, or a specific number $1.50 to
create excess funds. In the preferred embodiment this will be a whole dollar
amount such as $1.00, S5.00, S10.00, etc. added to the entry.
The coin amount is the presence of coins in the face amount, i.e. check
for $10.14.
The rounder amount is the amount of excess funds produced by applying
the rounder transaction to the entry minus the coin amount, i.e. $10.14 using a
$1.00 rounder will produce $0.86 as the rounder amount of excess funds.
0 The total withdrawal will be the rowlder amount plus the entry amount
which will be debited against the checking account or credit card balance to
determine the new account balance.
Referring now to Fig. 8.9A-E, there is a flow chart which illustrates the
steps which bank central computers take, through a keypad and display, to
collect funds, manage funds internally and to disbL~rse funds.
Beginning at the top of Fig. 8.9A the bank first transmits to the CC,
assigned to the clearing and reconciling of checking accounts, all transactionalinformation and directions for rounder account processing.
In step 8600 the checking account transaction is read. The transaction ca
n be a check draft, an ATM withdrawal, checking account fee, an interest
payment. etc.
In step 8605 the computer gets the checking account balance.
In step 8610 the computer asks, Is this account a rounder account
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subscriber?
If the answer is yes, in step 8620 the transactions are processed according
to rounder transaction instructions.
If the answer is no, in step 8740 the transactions are processed without
the rounder transaction instructions (See Fig. 8.4E).
In step 8747 basic account b~l~nces are updated.
In step 8750 the computer writes processed transactions to file.
In step 8755 the computer reads next checking transaction.
In step 8760 the computer asks, Is this the end cf the file? If the answer
is yes, computer goes to step 8765. If the answer is no, computer goes to step
8600.
In step 8765 the computer sorts all transactions.
In step 8770 the computer apportions rounder account contributions per
account instructions contained in step 8526, the rounder account file.
In step 8775 the computer transfers out the charity contributions, saving
s, investments, and other accounts.
The computer processing required to create rounder account contributions
is detailed in Fig. 8.9B. Starting at the top, in step 86~2 the computer asks, Is
this transaction a debit or withdrawal?
If the answer is no, computer goes to step 8634. If the answer
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is yes, computer asks in step 8624, In the transaction are the cents greater than
zero cents?
The following will assume the application of a $1.0~) rounder transaction
.
If the answer is no, in step 8628 the rounder transaction would equal the
rounder amount. For example if the rounder transaction is $1.00, to be added
to the entry amount of a $10.00 withdrawal, the rounder amount of $1.00 will be
created as excess funds for the rounder account and the total withdrawal will be$11.00.
0 If the answer is yes, in step 8626 the cents in the purchase price will b e
subtracted from the rounder transaction and the net difference will become the
rounder amount which will then be deposited into the rounder account. For
example if the purchase price was $10.14 cents and $1.00 was the rounder
transaction $0.14 would be subtracted from the $1.00 and the net of $0.86 would
be the rounder amount which would then be deposited into the rounder account.
The total withdrawal would still be $11.00 In step 8630 the rounder
amount and the entry amount are added together t o determine the total
withdrawal.
In step 8632 the total withdrawal is then subtracted from the existing
balance to determine the new balance.
The deta.led computer processing required to create rounder account
contributions is continued in Fig. 8.9C in regard to deposits or fee income.
In the processing of deposits or interest into accounts we reverse the
process and decrement the amount of money going into the checking account so
that we can create excess funds. Therefore, we can apply similar rules, as
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previously fiic~lc$e~1~ when the invention dealt with account withdrawals, but only
in a decrementing f~chion
In the l~,efelled embodiment we will decrement deposits and interest
payments only to elimin~te coin amounts.
Starting at the top, in step 8634 the computer asks, Is this transaction a
deposit or interest fee?
If the answer is no, the computer goes to step 8648.
If the answer is yes, the computer asks in step 8638, In the transaction are
the cents greater than zero cents?
If the answer is no, in step 8640 the rounder account contribution equals
zero since there are no coins in the entry amount of the deposit. The program
then goes to step 8644.
If the answer is yes, in step 8642 the cents are subtracted from the face
amount and the coins become rounder contributions. For example, if the deposit
was for S10.14 the rounder would take off the $0.14 and the net deposit would
be for $10.00.
In step 8644 the rounder amount is subtracted from the face amount to
determine the total deposit.
In step 8646 the total deposit is then added to the existing balance to
determine the new balance.
The ability for the invention to remove coins from checking account
deposits will allow for easier balancing of checking accounts.
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46
The detailed computer processing required to create rounder amounts is
continued in Fig. 8.9D when the tr~n~action is a fee.
The rules applied here are the same as in processing withdrawals. But
again for the preferred embodiment, which will follow, the process will only be
applied to the presence of coin amounts in fee charges.
Starting at the top, in step 8648 the computer asks, Is this a fee?
If the answer is no, the computer goes to step 8662. If the
answer is yes, the computer asks in step 8650, In the transaction are the cents
greater than zero cents?
If the answer is no, in step 8652 the rounder accour t contribution equals
zero since there are no coins in the face ~mo-lnt of the fee. The program then
goes to step 8656.
If the answer is yes, in step 8654 the cents are added to the face amount
and the coins become the rounder amount. For example, if the fee was for
$10.14 a one dollar rounder add another S0.86 and the net withdrawal would be
for S11.00.
In step 8656 the rounder amount is added to the face amount to determine
the total withdrawal.
In step 8660 the total withdrawal is then subtracted from the existing
balance to determine the new balance.
The ability for the invention to remove coins from checking account fees
will allow for easier balancing of checking accounts.
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The computer steps required to prccess non-rounder account tr~nc~ctionc
are detailed in Fig. 8.9E. Starting at the top, in step 8741 the computer asks, Is
this transaction a debit, withdrawal, or fee?
If the answer is yes, in step 8742, the checking account balance is
5 determined by subtracting the transaction amount from the account balance.
If the answer is no, computer goes to step 8743 and asks, Is this
transaction a deposit or interest?
If the answer is yes, in step 8744 the checking account balance is
determined by subtracting the transaction arnount from the account balance.
If the answer is no, the computer in step 8745 displays error message.
Referring now to Fig. 8.10A-E, there is a flow chart which illustrates the
steps which card issuers central computers take, through a keypad and display,
to collect funds, manage funds internally and to disburse funds.
Beginning at the top of Fig. 8.10A, the card issuers first transmit to the
15 CC used in clearing and reconciling debit and credit card accounts all
transactional information of the subscribers who round up or down their
debit/credit card transactions. This information has been obtained, see Fig. 8.8,
through the enrollment process.
In step 8800 the debit/credit account transaction is read. The transactio
20 n can be a debit/credit charge processed through a POS terminal, filled in by hand, called in over the telephone, etc.
In step 8805 the computer gets the cardholder's account balance.
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48
In step 8810 the computer asks, Is this account a rounder account
subscriber?
If the answer is yes, in step 8820 the transactions are processed according
to rounder instructions.
If the answer is no, in step 8920 the transactions are processed without
the rounder instructions.
In step 8930 the account balances are updated.
In step 8940 the computer writes processed transaction to file.
In step 8950 the computer reads next debit/credit card transaction.
lo In step 8960 the computer asks, Is this the end of the file? If the answer
is yes, computer goes to step 8970. If the answer is no, computer goes to step
8800.
In step 8970 the computer sorts all transactions.
In step 8980 the computer apportions rounder account contributions per
account instructions contained in step 8526 of the rounder account file.
In step 8990 the computer transfers out the charity contributions, saving
s, investments, and other accounts.
The computer processing required to create rounder transaction
contributions is detailed in Fig. 8.10B. Starting at the top, in step 8822 the
computer asks, Is this transaction a debit or credit card charge?
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If the answer is no, the computer goes to step 88~4. If the
answer is yes, the computer asks in step 8824, In the transaction are the cents
greater than zero cents?
If the answer is no, in step 8828 the rounder tr~ncartiQn would equal the
5 rounder amount. The computer then goes to step 8830. For example, if the
rounder transaction is S1.00, to be added to the entry amount of the credit
charge of say $300.00, the rounder amount of S1.00 will be created as excess
funds for the rounder account and the total charge will be $301.00.
If the answer is yes, in step 8826 the cents in the charged amount will b
lO e subtracted from the rounder transaction and the net difference will become the
rounder ~mo~Jnt which will then be deposited into the rounder account. For
example if the credit charge was $300.14 cents and $1.00 was the rounder
transaction S0.14 would be subtracted from the $1.00 and the net of $0.86 would
be the rounder amount which would then be deposited into the rounder account.
The total charge would still be $301.00 In step 8830 the rounder
amount and the entry amount are added together t o determine the total charge.
In step 8832 the total withdrawal is then subtracted from the existing
balance to determine the new balance.
The detailed computer processing required to create rounder account
contributions is continued in Fig. 8.10C in regard to account payments or interest
dividends. In the processing of payments into accounts we reverse
the process and decrement the amount of money going iilto the account so that
we can create excess funds. Therefore we can apply similar rules, as previously
discussed when the invention dealt with account withdrawals, but only in a
2 5 decrementing fashion.
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In the preferred embodiment, the invention will only decrement payments
when coins are present.
Starting at the top, in step 8834 the computer asks, Is this transaction a
payment or interest dividend?
s If the answer is no, computer goes to step 8848. If the answer
is yes, computer asks in step 8838, In the transaction are the cents greater than
zero cents? If the answer is no, in step 8840 the rounder account
contribution equals zero since there are not any coins in the entry amount of the
deposit. The computer then goes to step 8844.
lo If the answer is yes, in step 8842 the cents are subtracted from the entry
amount and the coins become rounder contributions. For example if the payment
was for $500.14, the rounder would take off the $0.14 and the n~t deposit would
be for $500.00.
In step 8844 the rounder amount is subtracted from the entry amount to
15 determine the total payment. In step 8846 the total withdrawal is
then subtracted from the existing balance to determine the new balance.
The detailed computer processing required to create rounder amounts is
continued in Fig. 8.10D when the transaction is a fee.
The rules applied here are the same as in processing withdrawals. But
20 again for the preferred embodiment, which will follow, the process will only be
applied to the presence of coin amounts in fee charges.
Starting at the top, in step 8848 the computer asks, Is this a fee?
If the answer is no, computer goes to step 8860. If the answer
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is yes, computer asks in step 8850, In the transaction are the cents greater than
zero cents?
If the answer is no, in step 8852 the rounder account contribution equals
zero since there are not any coins in the face amount of the fee. The computer
then goes to step 8856.
If the answer is yes, in step 8854 the cents are added to the entry amount
and the coins become the rounder amount. For example if the fee was for $10.14
and a one dollar rounder, add another $0.86 and the net withdrawal would be
for S 11.00.
In step 8856 the rounder amount is added to the entry amount to
deterrnine the total withdrawal.
In step 8858 the total withdrawal is then subtracted from the existing
balance to determine the new balance.
The computer steps required to process non-rounder account transactions
are detailed in Fig. 8.10E. Starting at the top, in step 8921 the computer asks, Is
this transaction a charge or fee?
If the answer is yes, in step 8922, the credit balance is determined by
subtracting the transaction amount from the account balance.
If the answer is no, the computer goes to step 8923 and asks, Is this
transaction a payment or interest dividend?
If the answer is yes, in step 8924 the credit account balance is determined
by subtracting the transaction amount from the account balance.
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52
If the answer is no, the computer in step 8925 displays error message.
The invention provides a unique and presently unavailable way
for com-lmers to save every time they spend, regardless of whether they use cash,
write a check, use an ATM m~-~hinç, use a credit or debit card.
The invention provides an "open" POS system whereupon consumers can
make excess payments at point of sale counters and have the excess funds be put
in special accounts. The "open" system for making excess payments will comprise
a four level network utilized in combination with consumers referred to as
subscriber/ subscribers (SP), payees referred to as merchant/collectors (MC), a
central computer/clearinghouse/ network (CCC), and provider accounts (PA).
The POS system will allow SP the ability to create excess funds from the
overpayment of spending transactions using cash, check, credit, or debit card, at
POS counters and have said excess overpayments be transferred through a CCC
onto provider accounts selected by said subscriber/subscribers (SP).
The invention also provides a four level rounder system (RS) for
subscribertsubscribers to create excess funds from account entries connected with
transactions paid for by check, ATM machine, credit, or debit card (which can
occur at a variety of commercial points: POS counters, on a person to person
basis, by mail, by wire transfer, by telephone, by computer, etc.). The rounder
system would apply a computerized rounder amount to create excess funds in
which the active cooperation of the payee is not needed and when the face
amount of the payment being tendered is not in excess of the actual purchase
price as the required means to establish the excess funds.
While embodiments of the invention have been described in detail, it will
2~ be evident to those skilled in the art that the invention may be embodiedotherwise without departing from its spirit and scope. Therefore, the following
claims are meant to encompass all alternatives and modifications within the
scope and spirit of the present invention.
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The invention furnishes an impro:ed systems to store purchasing credits
on an intçlligent card by buying credits from neutral merchants and redeeming
the credits at partiCip~ting merchants for goods and services in the future. Thesystem is a net vork composed of consumers, neutral participating merchants, and5 a central clearinghouse. By conc--mers being able to buy open purchasing credits
in advance from a variety of participating neutral merchants, consumers vill then
have convenience in setting aside money and the flexibility of using the creditsin a variety of merchant circum~t~nces
The invention also provides an automatic donation system for a
lo sales establishment includes an entry arrangement for entering the price of a
produc~ into a cash register and for entering the amount of cash being paid and
a calculator for determining the excess cash payment. A card reader keypad
receives a card number for ~cceccing data including charity accounts concerning
the card, and a computer apportions at least a part of the excess cash payment
15 among said accounts, and then prints out the amounts entered.
