Abstract:
A method and system for eliminating a need for coins in cash transactions in most currencies includes a comparison of a sum of a fractional dollar amount of an original transaction amount of a cash transaction between a merchant and a consumer plus a beginning value of a consumer storage device to a value of either 1.00 or 2.00. The amount of the value depends on whether a sum of credits and debits incurred by the merchant is greater or less than or equal to a sum of per transaction fees. The original transaction amount is decreased or increased to the next whole dollar amount, thereby providing a new transaction amount, if it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is greater or less than, respectively, the value assigned.

Description:
CROSS-REFERENCE TO RELATED APPLICATIONS 
     This application claims the benefit of U.S. Provisional Application No. 61/484,865, filed on May 11, 2011. The entire disclosure of the above application is hereby incorporated herein by reference. 
    
    
     FIELD OF THE INVENTION 
     The present invention relates generally to systems for commercial transactions and, more particularly, to systems for coinless commercial transactions. 
     BACKGROUND OF THE INVENTION 
     It is known that the United States Mint produced over nine billion coins (excluding the $1.00 coin) from Jan. 1, 2009 to Dec. 31, 2010. However, most consumers who still prefer to use cash do not carry coins with them, and instead will pay for purchases with paper currency. These consumers receive the change in coins. A majority of these coins are then accumulated in vehicles or at home, for example, in a change jar. Eventually the consumers will cash in the coins, often paying a fee to do so, or the coins go out-of-circulation. 
     The total value of the coins that are out-of-circulation at any given time is unknown, but the estimates are in the tens of millions of dollars. Many of the solutions that have been documented to account for the large number of out-of-circulation coins involve banking institutions, clearing houses, and the transmittal of data back and forth, and the related accounting procedures. These systems are all too complex and costly, especially when considering that the transaction amount could be one penny. One of the other disadvantages is the requirement for consumers to be identified by a storage card or device, further exposing them to identity theft or electronic fraud. 
     The use of fractional dollar value coins in a monetary system is inefficient, an unnecessary use of natural resources, detrimental to the environment, and a natural conduit for germs and diseases. Many attempts have been made to solve the coin problem but all have come up short; as evidenced by the continued use of coins having fractional dollar, or other currency, values. 
     A known system and method for conducting coinless transactions is described in U.S. Pat. No. 5,869,826 to Eleftheriou. The system of Eleftheriou uses a magnetic stripe data card to store a value of change with a maximum value of 0.99 of a whole dollar. The system either increases or decreases the value of the storage device depending on the fractional amount of the transaction and the current value of the storage device. The Eleftheriou method undesirably causes the merchants to experience unpredictable imbalances in their cash drawers. The amount of the imbalance will depend on the quantity and value of the coinless transactions, but is inevitable. The method of Eleftheriou also gives no consideration to the accounting of the change that is processed, and the merchant has no way of balancing their cash drawer. 
     There is a continuing need for a method and system that addresses the problems of the prior art by tracking a preset fee per transaction and a resettable cash balance, and setting parameters to control the direction of the credits and debits. Desirably, the method and system allows the merchant to balance their cash drawer and, barring any human error, the cash balance will exactly match the amount in the cash drawer when it is reconciled. 
     SUMMARY OF THE INVENTION 
     In concordance with the instant disclosure, a method and system that addresses the problems of the prior art by tracking a preset fee per transaction and a resettable cash balance, setting parameters to control the direction of the credits and debits, and allowing the merchant to balance their cash drawer and, barring any human error, the cash balance exactly matching the amount in the cash drawer when it is reconciled, is surprisingly discovered. 
     The method and system of the present disclosure may include a point of sale terminal with a connected (e.g., an RFID or NFC) reader/writer and a consumer storage device. The point of sale terminal tracks a running fee balance and a running cash balance. The running cash balance is compared to the running fee balance and a maximum value of either 1.00 or 2.00 is assigned to the consumer storage device. The point of sale terminal then reads the beginning value of the consumer storage device. The original transaction amount in a cash transaction is calculated by the point of sale terminal. The original transaction amount rounded up to the next whole dollar, minus the original transaction amount, determines a fractional dollar amount of the transaction. The fractional dollar amount is then added to the beginning value of the consumer storage device. If this total is less than the predetermined maximum value of the consumer storage device, the point of sale terminal and the consumer storage device are credited with an amount equal to the original transaction amount rounded up to the next whole dollar minus the original transaction amount. If the total is greater than the maximum value of the consumer storage device determined in the previous step, the merchant terminal and the consumer storage device are debited with an amount equal to the original transaction amount minus the original transaction amount rounded down to the next whole dollar. In each case the consumer is debited a transaction fee that is credited to the merchant. 
     In one embodiment, a method for eliminating an exchange of coins that represents a fractional dollar amount in a cash transaction between a consumer and a merchant includes the steps of providing a system for conducting a coinless transaction operated by the merchant, and providing a consumer storage device from the consumer. 
     Using the system for conducting the coinless transaction, a sum of the credits and debits incurred by the merchant is compared to a sum of per transaction fees. Based on the comparison, the method further includes one of the steps of assigning a first value if the sum of the credits and debits incurred by the merchant is greater than the sum of per transaction fees, and assigning a second value if the sum of the credits and debits incurred by the merchant tracked is less than or equal to the sum of per transaction fees. In illustrative embodiments, the first value is 1.00 and the second value is 2.00. It should be understood that one of ordinary skill in the art may select alternative values for the first value and the second value, as desired. 
     Using the system for conducting the coinless transaction, a sum of a fractional dollar amount of an original transaction amount of the cash transaction between the merchant and the consumer plus a beginning value of the consumer storage device to the one of the first value and the second value assigned are also compared. Based on the comparison, if it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is greater than the value assigned, the method further includes the step of decreasing the original transaction amount to the next lowest whole dollar amount, thereby providing a new transaction amount. If it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is less than or equal to the one of the first value and the second value assigned, the method further includes the step of increasing the original transaction amount to the next highest whole dollar amount, thereby providing the new transaction amount. 
     In another embodiment, a method for eliminating an exchange of coins that represent a fractional dollar amount in a cash transaction between a consumer and a merchant first includes the step of establishing an original transaction amount in the cash transaction. The fractional dollar amount of the original transaction amount is then determined. A beginning value on a consumer storage device provided by the consumer is also read. A sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is then calculated. A sum of the credits and debits incurred by the merchant, and a sum of per transaction fees, are also tracked. 
     The sum of the credits and debits incurred by the merchant is compared to the sum of per transaction fees. A value of 1.00 is assigned if the sum of the credits and debits incurred by the merchant is greater than the sum of per transaction fees. A value of 2.00 is assigned if the sum of the credits and debits incurred by the merchant is less than or equal to the sum of per transaction fees. 
     The sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is then compared to the value assigned. Where it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is less than or equal to the value assigned, the beginning value of the consumer storage device is increased by an amount equal to the original transaction amount rounded up to the next whole dollar amount minus the original transaction amount, thereby providing an ending value of the consumer storage device. Where it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is greater than the value assigned, the beginning value of the consumer storage device is decreased by an amount equal to the original transaction amount minus the original transaction amount rounded down to the next whole dollar amount, thereby providing the ending value of the consumer storage device. 
     Additionally, the original transaction amount is decreased to the next lowest whole dollar amount, thereby providing a new transaction amount, where it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is greater than the value assigned. The original transaction amount is increased to the next highest whole dollar amount, thereby providing the new transaction amount, where it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is less than or equal to the value assigned. 
     Also, where it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is less than or equal to the value assigned, the sum of the credits and debits incurred by the merchant is increased by the amount equal to the original transaction amount rounded up to the next whole dollar amount minus the original transaction amount. Where it is determined that the sum of the fractional dollar amount of the original transaction amount plus the beginning value of the consumer storage device is greater than the value assigned, the sum of the credits and debits incurred by the merchant is decreased by an amount equal to the original transaction amount minus the original transaction amount rounded down to the next whole dollar amount. 
     Upon completion of the aforementioned steps, a new sum of the credits and debits incurred by the merchant is displayed. The new transaction amount is also displayed. The ending value is then written onto the consumer storage device, which is thereby readied for a new coinless transaction between the consumer and a merchant. 
     In a further embodiment, a system for conducting a coinless transaction between a consumer and a merchant includes a merchant terminal. The merchant terminal is configured for receiving an original transaction amount in a cash transaction. The merchant terminal includes a processor and a computer readable medium for receiving a beginning value stored on a consumer storage device, and calculating a new transaction amount and an ending value to be stored on the consumer storage device. The new transaction amount is a whole dollar amount. The system also has a display for displaying the new transaction amount. The system further includes a reader/writer device for outputting the ending value to the consumer storage device. The reader/writer device is in communication with the merchant terminal. 
     In an illustrative embodiment, a system according to the disclosure eliminates a need for fractional dollar coins in cash transactions by rounding the cash transactions up or down to the nearest dollar based on the outcome of an algorithm. The system utilizes a Radio Frequency Identification (RFID) or Near Field Communication (NFC) Consumer Storage Device (CSD) that stores a value of change. The CSD is read and written to by the RFID or NFC reader/writer that is connected to a point of sale (POS) terminal. The POS terminal has executable instructions on a computer readable storage medium and a processor that calculates the Fractional Dollar Amount (FDA) that is equal to the Original Transaction Amount (OTA) rounded up to the next whole dollar amount minus the OTA plus the Beginning Value (BV) of the CSD. The outcome of this calculation will either increase or decrease the transaction amount to the next whole dollar amount. This is the New Transaction Amount (NTA) that is then displayed by the POS terminal and paid by the consumer with no coins being exchanged. The difference between the OTA and the NTA is either debited or credited to the CSD, less a Transaction Fee (TF), with a matching debit or credit to the POS terminal. The TF is earned and retained by the merchant. 
     The POS terminal also tracks the running total of the TF, stores a Running Fee Balance (RFB), and then compares the RFB to the actual POS Running Cash Balance (RCB) related to the coinless transactions. If the RCB is less than the RFB, the higher maximum value of the CSD is used and causes the direction of the exchange to favor the merchant until the RCB becomes greater than the RFB. When the RCB is greater than the RFB, the lower maximum value of the consumer storage device will be used. By allowing the maximum value of the CSD to be variable, the system effectively controls the direction of the transactions and the RCB in the merchant&#39;s cash drawer. 
    
    
     
       DESCRIPTION OF THE DRAWINGS 
       The above, as well as other advantages of the present invention, will become readily apparent to those skilled in the art from the following detailed description of a preferred embodiment when considered in the light of the accompanying drawings in which: 
         FIG. 1  is a schematic diagram showing a standalone merchant terminal and a consumer storage device, and the associated components thereof according to an embodiment of the present disclosure; 
         FIG. 2  is a schematic diagram showing a point of sale device such as a cash register with an integrated or built-in coinless system, and the associated components thereof according to another embodiment of the present disclosure; 
         FIG. 3  is a flow diagram that schematically depicts how the method and system of the present disclosure processes a coinless transaction, according to one embodiment of the disclosure; and 
         FIG. 4  is a flow diagram that schematically depicts how the method and system of the present disclosure processes a coinless transaction, according to another embodiment of the disclosure. 
     
    
    
     DESCRIPTION OF THE VARIABLES IN THE SPECIFICATION AND DRAWINGS 
     
         
         
           
             MT Merchant terminal. 
             POS Point of sale terminal. 
             CSD Consumer storage device. 
             RCB Running cash balance. 
             RFB Running fee balance. 
             RMB Resettable merchant balance. 
             OTA Original transaction amount. 
             OC Original amount of change due to a consumer at the completion of a cash transaction. 
             FDA Fractional dollar amount of the transaction. 
             FC Fractional amount of change due. 
             BV Beginning value of the consumer storage device. 
             FDABV The sum of FDA and BV. 
             FCBV The sum of FC and BV. 
             V 1  A first value, for example, 1.00. 
             V 2  A second value, for example, 2.00. 
             V 3  The result of RCB&gt;RFB, true or false. 
             V 4  The result of RMB&gt;RFB, true or false. 
             NTA New transaction amount to the consumer in a whole dollar amount. 
             NC New amount of change due to the consumer in a whole dollar amount. 
             EV Ending value of the consumer storage device. 
             TF Transaction fee. 
           
         
       
    
     DESCRIPTION OF THE PREFERRED EMBODIMENT 
     The following description is merely exemplary in nature and is not intended to limit the present disclosure, application, or uses. It should be understood that throughout the drawings, corresponding reference numerals also indicate like or corresponding parts and features. In respect of the methods disclosed, the order of the steps presented is exemplary in nature, and thus, is not necessary or critical. 
       FIG. 1  shows a standalone or handheld merchant terminal (MT) capable of performing the necessary functions for a coinless transaction. The MT is equipped with a display  100  capable of displaying a running cash balance (RCB)  101 , an original transaction amount (OTA)  102  from a cash transaction, and a new transaction amount (NTA)  103 . The MT is further equipped with a Radio Frequency Identification (RFID) reader/writer  104  for the purpose of reading and writing to a passive RFID consumer storage device (CSD)  105 . The CSD  105  may be a passive RFID tag that has a typical read write range, for example, of 1 to 3 inches. Other types of CSDs  105  operating on different principles may also be used within the scope of the disclosure. 
     The MT is further equipped with a numeric keypad  106  for the manual entry of the OTA. The MT also contains a microprocessor and the related electronic components such as a computer readable storage medium required having instructions for executing a process as described herein. This embodiment is preferred where cash transactions take place and Point of Sale (POS) terminals are not in use. Nonlimiting examples of this are swap meets and home deliveries. This embodiment may also be preferred in situations where integrating this coinless system with existing POS systems is impractical or cost prohibitive. 
       FIG. 2  shows a POS terminal  107  than has been modified or upgraded with the necessary software and hardware to perform coinless transactions. This configuration utilizes a data cable  108  that connects the POS terminal  107  to a remote RFID reader/writer  109  to read and write to the CSD  105 . In other embodiments, the POS terminal  107  is in communication with the remote RFID reader/writer  109  by other means such as wireless communication. It should be apparent to one of ordinary skill in the relevant art to incorporate a variety of standalone and integrated configurations similar to what is described here to carry out an operation of the present invention. 
       FIG. 3  is a schematic of the process from beginning to end of a coinless transaction in the preferred embodiment. For the purpose of simplifying the following process, the term “MT” will refer to both the standalone MT and the integrated POS embodiments previously described. 
     As shown in  FIG. 3 , the process begins after the total OTA has been established. The process starts with step  200  and proceeds to step  201 . In step  201 , the OTA is displayed on the display of the MT, and the process continues to step  202 . In step  202 , the OTA is rounded up to the next whole dollar amount minus the OTA, resulting in a Fractional Dollar Amount of the Transaction (FDA). The process then proceeds to step  203 . In step  203 , the MT reads a Beginning Value (BV) of the CSD and the process continues to step  204 . In step  204 , the sum of the FDA and the BV (FDA+BV) is calculated, with the result identified as (FDABV). The process then continues to step  205 . In step  205 , a Running Cash Balance (RCB) is compared to a Running Fee Balance (RFB). If it is determined that the RCB is greater than the RFB (i.e., true), the process continues to step  206 . If it is determined in step  205  that the RCB is not greater than the RFB (i.e., false), the process proceeds to step  207 . 
     In step  206 , where step  205  was true, a value of 1.00 (V 1 ) is assigned for the next step of the process. In step  207 , where step  205  was false, a value of 2.00 (V 2 ) is assigned for the next step of the process. The next step  208  in the process determines the value assigned in step  205 , and is either a value of 1.00 or 2.00 (V 3 ). The next step  209  compares the value of the FDABV and the V 3 . 
     If it is determined in step  209  that the FDABV is less than V 3  (i.e., true), then the process proceeds to step  210 . Step  210  calculates a New Transaction Amount to the Consumer in a Whole Dollar Amount (NTA) by rounding up the OTA to the next whole dollar. The NTA is displayed on the MT, and the process proceeds to step  211 . In step  211 , the value of the CSD is increased by amount equal to the NTA minus the OTA (NTA−OTA), less a Transaction Fee (TF), resulting in an Ending Value of the Consumer Storage Device (EV). The EV is written to the CSD, and the process proceeds to step  212 . In step  212 , the RCB is increased by an amount equal to the NTA minus the OTA (NTA−OTA). 
     If it is determined in step  209  that the FDABV is not less than V 3  (i.e., false), then the process proceeds to step  213 . Step  213  calculates the NTA by rounding down the OTA to the next whole dollar. The NTA is displayed on the MT and the process proceeds to step  214 . In step  214 , the value of the CSD is decreased by an amount equal to the OTA minus the NTA (OTA−NTA), less the TF resulting in the EV. The EV is written to the CSD, and the process proceeds to step  215 . In step  215 , the RCB is decreased by an amount equal to the OTA minus the NTA (OTA−NTA). This completes the coinless transaction. 
       FIG. 4  is a schematic of the process from beginning to end of a coinless transaction according to another preferred embodiment. In the embodiment of  FIG. 4 , the standalone or handheld merchant terminal (MT) of  FIGS. 1 and 2  may be capable of performing the necessary functions for a coinless transaction based on alternate considerations. For example, the display  100  is capable of displaying the resettable merchant balance (RMB)  101 , the original amount of change (OC) due to the consumer  102  from a cash transaction and the new amount of change (NC) due  103  to the consumer from a cash transaction. The MT is further equipped with a numeric keypad  106  for the manual entry of the OC to the consumer. 
     The process depicted in  FIG. 4  starts after a cash transaction has taken place where the amount of the sale including tax has been communicated to the consumer and the consumer has given the cashier an amount of cash greater than the total sale amount, the cashier has entered this as the amount tendered and the POS has determined the OC. The process starts with  300  and proceeds to  301 . In step  301 , the OC is either entered into the MT or the amount is received electronically from the POS and the process continues to step  302 . In step  302 , the OC is rounded down to the next whole dollar amount and this whole dollar amount is then subtracted from the OC resulting in the fractional amount of change due (FC) and the process proceeds to step  303 . In step  303 , the MT reads the beginning value of the CSD (BV) and continues to step  304 . In step  304 , the sum of FC plus BV is calculated and the result is (FCBV). The process then continues to step  305 . In step  305 , the resettable merchant balance (RMB) is compared to the resettable fee balance (RFB) and if it is determined that the RMB is greater than the RFB (true) it continues to step  306 . If it is determined in step  305  that the RMB is not greater than the RFB (false) it proceeds to step  307 . 
     In step  306 , a value of 1.00 (V 1 ) is assigned for the next step of the process. In step  307 , a value of 2.00 (V 2 ) is assigned for the next step of the process. The next step  308  in the process is the value determined in step  305  and is either a value of 1.00 or 2.00 (V 4 ). The next step  309  compares the value of FCBV and V 4 . 
     If it is determined in step  309  that FCBV is less than V 4  (true), the process proceeds to step  310 . Step  310  calculates the new amount of change (NC) due by rounding down the OC due to the next whole dollar. This NC is displayed on the MT and proceeds to step  311 . In step  311  the value of CSD is increased by FC, this ending value (EV) is written to the CSD and proceeds to step  312 . In step  312 , the RMB is increased by the FC. 
     If it is determined in step  309  that FCBV is not less than V 4  (false), the process proceeds to step  313 . Step  313  calculates the NC due by rounding up the OC due to the next whole dollar. The NC is displayed on the MT and proceeds to step  314 . In step  314 , the value of CSD is decreased by an amount equal to 1 minus FC, this EV is written to the CSD and proceeds to step  315 . In step  315 , the RMB is decreased by an amount equal to 1 minus FC. This completes the coinless transaction. 
     Advantageously, the present method and system makes it possible to eliminate the exchange of coins in a commercial cash transaction, and for the merchant to have an exact accounting of the amount that their cash drawers are over or under the total transaction amount based on a preset processing fee. 
     While certain representative embodiments and details have been shown for purposes of illustrating the invention, it will be apparent to those skilled in the art that various changes may be made without departing from the scope of the disclosure, which is further described in the following appended claims.