Digital money with usage-control

A method for enabling financial transactions is provided. The method includes providing an electronic monetary token having one or more data fields associated therewith, the one or more data fields defining respective characteristics of an item of goods or services for purchase, such that a user of the token is enabled to designate data to be stored in at least one of the one or more data fields, so as to restrict items for which the token can be used to make a purchase.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS FIG. 1 is a simplified pictorial illustration showing authorization apparatus 20 for use with a range of physical and virtual electronic monetary tokens, in accordance with a preferred embodiment of the present invention. Apparatus 20 preferably comprises an authorization server 30 , which communicates over an electronic network 40 with a number of remote devices or entities, such as one or more personal computers 22 , a telephone 24 , a virtual store 26 , an automated banking machine 28 , and an authorization unit 50 of a physical store 32 . Server 30 is preferably configured to confirm that all purchases made using an electronic monetary token are in accordance with transaction restrictions associated with the token which were designated for the token by an owner or user of the token, a person adding value to the token, or another entity, as appropriate. These restrictions are typically, but not necessarily, stored in a memory 34 of server 30 . When, for example, an electronic monetary token is presented at the time of a purchase to an owner of physical store 32 , authorization unit 50 preferably transmits a query over network 40 to server 30 . The query typically includes details of the proposed purchase, as well as an identification code or other details pertaining to the token. The query is received by a data port 37 of server 30 , and a processor 36 of the server evaluates the query with respect to data stored in memory 34 , so as to determine whether the proposed purchase should be allowed. The evaluation may be made based on, for example, the price of the proposed purchase, the store name, the time of day, the item to be purchased, or a range of other purchase parameters which may be stored in corresponding fields in memory 34 . If the proposed purchase is within the limits imposed on digital money in the token (typically as represented by data in memory 34 ), then the purchase is authorized, and the contents of memory 34 are updated accordingly. If the token is later presented to enable a subsequent purchase, the authorization of that purchase will be evaluated in light of the updated values stored in memory 34 . It is emphasized that the principles underlying these embodiments of the present invention preferably apply regardless of the form of the token itself, e.g., whether it is embodied physically in, for example, a card, or whether it is embodied virtually, via an “electronic wallet” or other network-based purchase technique. When a user of a token passes some of the money in his token to a token owned by another user, then the limitations assigned to that money are still in effect when the second user attempts to spend the money. In this manner, “laundering” of the restrictions placed on money in electronic monetary tokens is preferably prevented. Alternatively, authorization server 30 is configured to reject any transfers of restricted money from the token that are not performed in accordance with the requirements set when the money was placed in the token. In particular, restricted money stored in tokens typically may not be directly convertible into cash, e.g., at banking machine 28 . Preferably, the financial body or token distributor which issues electronic monetary tokens defines a classification system, including pre-defined restricted or required fields of purchase, which can be filled in by a first party (e.g., a parent or employer) in such a manner that they cannot be subsequently altered by a second party (e.g., a child or an employee). Such fields typically include, but are not limited to: (a) product type, (b) geographic location of a purchase, (c) purchasing methodology, such as purchases from physical outlet stores, purchases over the Internet, or purchases by telephone, (d) time of purchase, and (e) frequency of purchase. Thus, for example, an electronic monetary token provided by these embodiments of the present invention may be used by a company to target its budget to enabling purchases only in specific fields, thereby enabling the company to enhance control of the appropriation of its resources. Whereas prior art techniques would typically dictate that the company would give cash and/or a generally non-restricted credit card to an employee leaving on a business trip, these embodiments of the present invention allow the company to give the employee a relatively large amount of money, but to limit most or all of it to expected purchases having pre-defined characteristics (e.g., $1,000 for the Grand Hotel, $500 for restaurants in Manhattan, $2,000 for electronic office equipment bought from one of three pre-specified office supply stores, and $250 unrestricted money). Preferably, upon the employee's return, a password unknown to the employee can be used to remove restrictions on any remaining money. In another example, some of the money in an electronic monetary token may be limited to use for transactions having certain tax implications, for example transactions which are free of value added tax (VAT) or sales tax, or transactions which are tax deductible, such as donations to charity. For some applications, an individual may be interested in applying restrictions to his own spending, rather than the spending of another individual. For example, a stamp collector may configure the fields in his electronic monetary token to enable him to purchase up to $100 per month of stamps. Electronic monetary tokens as provided by these embodiments of the present invention may further be used as marketing tools. For example, a company may give away such restricted tokens to promote purchases of a new product, or patronage of a real or virtual store. Or, correspondingly, the company may add value to users' preexisting tokens, but restrict the added value to purchases of the new product. Additionally or alternatively, the tokens may be used as a marketing tool to promote sales in a specific field of purchase. For example, a dairy association may give out tokens, or add value to existing tokens, in order to promote purchases of all low-fat dairy products. Similarly, a city may distribute tokens whose memory fields are configured so as to encourage weeknight patronage of restaurants and small shops in certain neighborhoods, as well as cheaper weeknight public transportation to and from these neighborhoods. FIG. 2 is a simplified pictorial illustration of an electronic monetary token embodied in a smart card 100 , in accordance with a preferred embodiment of the present invention. Smart card 100 is typically constructed to be compatible with industry standards for smart cards, e.g., comprising a direct-contact or wireless data port 102 , a processor 104 , and a memory 106 . Means for adding value to the card and removing value from the card are typically generally similar to those utilized with smart cards known in the art, but further include the features described herein. In particular, the ability of a user of the card to spend some or all of the digital money stored in the card is preferably only performed in accordance with purchase restrictions imposed thereon by a donor of the money or by another entity. Thus, by contrast to those applications of the present invention in which a substantial portion of the maintenance and authorization procedures associated with electronic monetary tokens are performed by server 30 , in the embodiment shown in FIG. 2 , processor 104 is enabled to manage the various digital moneys stored in memory 106 , and to determine whether proposed transactions are in accordance with any restrictions placed thereon. Processor 104 preferably prevents transactions that are not consonant with requirements and restrictions stored in the memory, and bars unauthorized attempts to remove requirements or restrictions placed on the token. Reference is now made to FIGS. 3A and 3B , which are simplified pictorial illustrations showing respective front and reverse sides of an electronic monetary token 60 , in accordance with a preferred embodiment of the present invention. Token 60 typically takes the general physical form of a credit card, debit card, or other purchase-enabling card. It is emphasized that, while a physical card is shown in FIGS. 2, 3A , and 3 B, other electronic monetary tokens (not shown) may have substantially no physical form, but may instead be issued as, for example, an identification code and a password, and have value and restrictions which are maintained in the memory of a server such as server 30 , or in the memory of the user's personal computer. For both physical and non-physical electronic monetary tokens, as described herein, server 30 or another computer preferably maintains a Web site, on-screen menu, or touch-tone telephone accessible menu which allows donors to add more money to designated tokens, and which allows token holders to access information about the status of their tokens. Typically, non-physical tokens are used primarily but not exclusively to enable electronic transactions, such as purchases made by telephone, or purchases on the Web using traditional Internet payment strategies or using micro-payment strategies. Thus, virtual electronic monetary tokens as provided by preferred embodiments of the present invention preferably enable the user to have all of the functionality associated with digital money in common use today (e.g., via the metaphor of the electronic wallet), while additionally enabling a donor or other entity to apply restrictions to the digital money, as described herein. Preferably, token 60 has some or all of the following features on its front side: the name of an organization 62 which issued the token, typically a bank or a token distribution company; an identification number 64 ; a security feature 66 , such as a photograph of an authorized user of the card; the user's name 68 ; and, if appropriate, a starting date 70 and expiration date 72 . Further preferably, the reverse side of token 60 is also generally similar to debit cards or credit cards known in the art, including, as appropriate, a signature box 76 and a magnetic strip 78 . For these applications, the transaction restrictions, as well as a representation of the money itself, are preferably entered by the donor or another individual, and saved in memory 34 of server 30 ( FIG. 1 ). When, for example, a vendor in physical store 32 or virtual store 26 is presented with token 60 , the vendor transmits identification number 64 and relevant information regarding the proposed purchase to server 30 via network 40 . If the transaction is in accordance with all restrictions placed on money associated with the monetary token, then server 30 sends a purchase authorization to the vendor, and modifies one or more values in memory 34 to reflect that the transaction has been executed. Optionally, token 60 is presented in different forms to suit different consumer sectors. For example, when token 60 is issued to a child, the token may have the user name 68 in very large capital letters, as well as the name and contact telephone number of a guardian. Similarly, token 60 issued to teenagers preferably has a suitable appearance appropriate for its users. For some applications, the physical appearance of the token may be made indicative of the sector of goods and services for which it was issued. It will be understood by one skilled in the art that aspects of the present invention described hereinabove can be embodied in a computer running software, and that the software can be supplied and stored in tangible media, e.g., hard disks, floppy disks or compact disks, or in intangible media, e.g., in an electronic memory, or on a network such as the Internet. It will be appreciated by persons skilled in the art that the present invention is not limited to what has been particularly shown and described hereinabove. Rather, the scope of the present invention includes both combinations and subcombinations of the various features described hereinabove, as well as variations and modifications thereof that are not in the prior art, which would occur to persons skilled in the art upon reading the foregoing description.