Currency transfer system and method

There is disclosed a currency transfer system and method which utilizes the existing ATM network but which provides for the temporary assignment of a PIN number and the temporary establishment of a credit limit within an existing account. Using the system a customer can, by using a temporary PIN at an ATM machine, withdraw an amount equal to or less than the temporary credit limit. In one embodiment, a depositing customer can establish the temporary credit limit by the transfer of funds from an existing account and in another embodiment the depositing customer can purchase temporary ATM cards which have contained within them programmed credit limits which are then read into the system under an assigned temporary PIN number.

TECHNICAL FIELD OF THE INVENTION 
This invention relates to currency transfer systems and methods and more 
particularly to such systems and methods which allow one person not having 
a preestablished account to establish within a common account a specified 
sum of money which can then be removed at a later date either by the same 
person or by specific other people. 
BACKGROUND OF THE INVENTION 
The concept of using Automated Teller Machines (ATM's) has, in the past few 
years, become commonplace for the withdrawal of funds from a person's 
checking or savings account at any time, whether or not the bank is open 
or closed. Using an ATM, a person can even obtain cash from his or her 
credit card at any time of the day or night. 
The several ATM systems in the USA, and indeed around the world, have been 
interlinked so that a person can travel to virtually any place and by 
inserting a card in an ATM machine and, supplying a preassigned Personal 
Identification Number (PIN) password, can request an amount of money from 
the account associated with the inserted card. Other transactions can also 
be performed during the same session, all by interaction with the ATM 
system. 
In order to accomplish the desired transaction, the user enters numbers on 
a key pad, or pushes other buttons, all in response to displayed prompts. 
The prompts can be in English or in other languages selected by the user. 
One basic concept of the present systems are that they require the user to 
have a preestablished account with a preissued card and with a preexisting 
PIN. The account can be a bank savings or checking account or can be a 
money market account or it can be a credit (or debit) card account, or it 
can be any one of a variety of other account types. With some of the 
accounts, the user already has an established sum of money in the account, 
and with others, the money is deposited (credited) when the user makes a 
withdrawal from the account. 
One problem that the new system and method solves is based on the 
proposition that a particular user desires to transfer money to someone 
else (a child, for example) in a distant city where neither the user nor 
the child has an account. 
A second problem that the new system solves supposes that the user does 
have an account which is accessible from an ATM machine but the child in 
the distant city does not have an ATM card for that account. 
A third problem is presented by those who are traveling but do not wish to 
buy and carry travelers checks and also do not wish to carry large amounts 
of cash. This problem assumes the traveler does not have (and does not 
wish to establish) a preestablished ATM account. The existing ATM system 
does not presently solve any of these problems which are but a symptom of 
the more general problem of currency transfer. Today, in order to move 
currency from one place to another, the systems and methods do not differ 
much from those of many years ago. For example, a person can take cash to 
a wire transfer office (such as are maintained by western Union) and have 
money wired to a wire transfer office in the city where the recipient is 
located. This supposes that one even knows where such offices are located 
and that the offices are open. Since emergencies do not obey 9 to 5 (or 
even 7 to midnight) hours, and since people without funds tend also to be 
without a means of transportation to get to the nearest wire transfer 
office (even assuming they could find one), the present wire transfer 
systems are, at best, cumbersome. These problems are compounded under the 
existing systems by time zone differences. 
The cost to establish an electronic network similar to the existing ATM 
network is enormous. Thus, any solution to the problem must rely, to some 
extent, on the existing ATM network which does not, today, accommodate 
those without accounts and without valid ATM cards. 
Accordingly, there is a need in the art for a currency transfer system 
which will allow any person to instantly and electronically transfer 
currency to any other person even if neither person has a preestablished 
account and even if neither person has a preissued ATM card. 
A further need in the art is for a system which will allow for the instant 
transfer of currency between distant people without preestablished ATM 
accounts and ATM cards while still taking advantage of the existing ATM 
network. 
SUMMARY OF THE INVENTION 
The instant system contemplates at least one (but as will be seen there can 
be several) master accounts. This master account can be sponsored by a 
nationally known corporation (the sponsor) with retail outlets across the 
USA, or around the world. The sponsor can affiliate with other companies 
in the USA or in other countries to provide a world-wide network for the 
system. However, this is not necessary to the functioning of the system, 
and in fact the system will function so long as there is a large network 
of conveniently placed centers tied into the sponsoring master account. 
Existing ATM networks are acceptable. 
The system and method operate as follows. A person desiring to send 
currency (the sender) goes to any sponsor's location and buys, for cash, 
or by using a credit card, a one-time ATM card. The card, in one 
embodiment, has a fixed amount of money associated therewith. For example, 
$50.00. In another embodiment, the store clerk programs the one-time ATM 
card to have whatever amount the sender wishes. Let us assume the first 
scenario (fixed amount of $50.00 per card) and the sender wishes to 
transfer $200.00. The sender gives the clerk $200.00 (cash or credit card) 
plus whatever fee is charged for the service. The clerk then hands the 
sender four ATM cards, each having the value of $50.00 pre-established 
thereon. The ATM card, or cards, allow the sender access (on a limited 
basis) to the sponsor's master account. 
While not necessary, for security purposes, the one-time ATM cards can be 
limited for use only at the ATM machine local to the location where the 
cards were purchased. 
The sender then inserts the first of the four cards into the ATM machine 
which recognizes the one-time nature of the card and switches to a special 
control program. This program knows that $50.00 is to be deposited into 
the master account. The system then asks the user to specify how many 
cards (or how much money) the user -wishes to link together into the newly 
created sub-account within the sponsor's account. The user answers the 
question and then inserts the other three cards. 
The system creates a sub-account and assigns half of a PIN number to that 
sub-account. This half PIN number is given to the sender who is then asked 
to add the second half of the PIN number. It will be this full PIN number, 
both halves, that will allow the recipient access to the money in the 
sub-account. 
The whole PIN number is printed on the receipt which the ATM provides to 
the sender and the ATM cancels the one-time ATM card. Any number of 
additional safeguards can be built into the system, such as, for example, 
the recipient's name (or state where the money will be removed) may be 
entered so that if someone were to find the password on the receipt that 
person would still not have enough information to gain access to the 
sponsor's sub-account. 
The sender then telephones (or faxes) the recipient and communicates the 
password. The recipient then goes to the nearest sponsor's retail outlet, 
pays a small fee (or the fee could have been paid at the sending end) for 
a one-time ATM retrieval card. The one-time retrieval card is inserted in 
the ATM machine, the PIN password is given, and the recipient can then 
remove an amount of money up to the amount in the sub-account associated 
with the password. The normal daily limits for ATM withdrawals can be 
adhered to or waived, depending upon the system parameter. 
In another embodiment, the ATM depositor could transfer an amount from an 
existing account, using his/her existing ATM card. In this scenario, the 
depositor would establish a transfer amount, and a temporary PIN. This 
amount would be available for a person using a retrieving ATM card and 
presenting the correct password (PIN). 
From an operational point of view, the money can move into the sponsor's 
master account in a variety of ways. In one embodiment, the master account 
has an unlimited credit facility and daily settlements are made with a 
correspondent bank. The sponsor can presell the one-time ATM cards to each 
of the outlets in the same manner that other products are sold. Thus, a 
package of, say twenty ATM cards (each having a $50.00 value) can be sold 
for $1,000.00. Or, assuming the sponsor wishes to make money (say, $3.00 
per ATM card) on the cards as they are sold to the individual retail 
outlets, then the package of twenty cards would sell for $1,060.00. The 
retail outlet then, in turn, could sell each card to the sender for a 
markup of, say, $2.00. The sender would then pay $55.00 for each $50.00 
ATM card bought. 
A system and method for using a card with a fixed amount of money thereon 
is shown in concurrently filed copending application entitled "Currency 
Transfer System and Method Using Fixed Limit Cards," Ser. No. 07/981,758, 
filed Feb. 17, 1993, in the names of Bill E. Brody and David H. 
Tannenbaum. 
It is one feature of the invention that an ATM system is designed to accept 
an amount from a card and to accept a PIN number and to transmit the PIN 
number and the amount to a master account such that the amount can be 
removed by a person not previously having established an ATM account. 
It is another feature of the invention that preprogrammed ATM cards can be 
bought by users at one location and these cards can be inserted into the 
ATM network such that the preprinted amounts on each card are transmitted 
to a central account allowing a recipient, using a temporarily assigned 
PIN number, access to the account for withdrawal of the transmitted 
amount. 
It is a further feature of this invention that a user having an established 
ATM account with an established PIN number may transfer amounts (or have 
amounts set aside) so that a recipient, using a temporary PIN, can 
withdraw the amount so designated. 
The foregoing has outlined rather broadly the features and technical 
advantages of the present invention in order that the detailed description 
of the invention that follows may be better understood. Additional 
features and advantages of the invention will be described hereinafter 
which form the subject of the claims of the invention. It should be 
appreciated by those skilled in the art that the conception and the 
specific embodiment disclosed may be readily utilized as a basis for 
modifying or designing other structures for carrying out the same purposes 
of the present invention. It should also be realized by those skilled in 
the art that such equivalent constructions do not depart from the spirit 
and scope of the invention as set forth in the appended claims.

DETAILED DESCRIPTION OF THE INVENTION 
FIG. 1 shows a block diagram of ATM System 100 which will be used for the 
purpose of describing the operational aspects of the invention. It should 
be noted that ATM systems are currently in place and are more complex than 
shown here. There are many such systems in the United States and around 
the world known by various names. Many of such systems are interconnected 
so that often a person can go to any ATM machine with an ATM card which 
has been issued by one system and find that the ATM machine can process 
cards associated with many different systems. 
For the purpose of our discussion, an ATM card is one which typically has a 
magnetic stripe thereon and, which contains a number of fields having 
information prerecorded therein. The data recorded on the ATM card 
identifies the system, and the user, and provides other information. 
System 100 depicted in FIG. 1 comprises several automatic teller machines, 
such as ATM 14 and ATM 15 connected to ATM Network Processing Central 12. 
Central 12 could be an existing system, such as the well-known PULSE ATM 
system currently existing and which is hereby incorporated by reference 
herein. The ATM system uses, in some embodiments, a mainframe computer 
running control programs which are not shown, but which are also 
well-known to those skilled in the art and are incorporated herein by 
reference. 
ATM 16 is connected to ATM Network Processing Central 13, which can be a 
separate existing ATM control system. The systems could be linked by 
communication ! ink 180 if necessary. ATMs 14 and 15 are shown connected 
together by bus 17, which in turn is connected over telephone wires, or 
microwave relays, to ATM Network Processing Central 12. Of course, ATMs 14 
and 15 could each be connected individually to Network Central 12. Bus 17 
serves to transmit data back and forth between ATM Central 12 and ATMs 14 
and 15 while ATM Central 13 serves to process information back and forth 
to ATM 16. Of course, any number of ATMs can be connected to either 
Network 12 or 13 and this invention will function regardless of whether 
there is one, two or more ATM Network Processing Centrals. 
Each ATM, such as ATM 14, typically includes screen 141, keypad 142, slot 
143 for reception of the ATM card, printer 144 for printing receipts, 147 
camera, 145 (optional) for taking pictures of ATM users and currency (or 
stored data) dispenser 146. Contained within the ATM machine is a control 
system which controls the ATM machine. These ATM machines can be, for 
example, a fourth generation NCR terminal or a Diebold terminal. 
In order to avoid undue complexity and length of this patent, and because 
they are well-known to those skilled in the art, the operational aspects 
of ATM Network Processing Control 12 and ATM 142 will not be fully 
detailed herein except that flow charts will be discussed which relate to 
areas where changes to the standard system must be made. 
For a more detailed analysis, and particularly an analysis of the fields 
contained on the magnetic stripe of the ATM card and of the communication 
modes between ATM 14 and ATM Central 12, the reader is referred to NCR 
Programmer's Overview No. D1-2485-A entitled "NDC Plus Programmer's 
Overview"; and to NCR Publication D1-2486-A entitled "NDC Plus 
Programmer's Reference Manual"; and to NCR Publication D1-2487-A entitled 
"Supervisor's Reference Manual." These publications are available to the 
public from NCR Corporation, 1700 S. Patterson Boulevard, Dayton, Ohio. 
These publications are hereby incorporated by reference herein. 
Continuing in FIG. 1, ATM Network Central 12 is connected via linkage 18 to 
databases containing account information, such as database 10 and database 
11. In our simplified block diagram, database 10 could pertain to bank A's 
information while database 11 could pertain to bank B's information. 
Contained within each database are accounts, such as accounts A10 through 
A21, of database 10. 
In the block diagram of FIG. 1, ATM Network Processing Central 13 is 
connected via linkage 19 to databases pertaining to bank C and bank D. It 
will be assumed for purposes of this discussion that banks and customers 
have methods of establishing accounts and placing money within these 
accounts and that proper accounting procedures are in place to track the 
various transactions, all of which are standard in the industry and are 
well known to those skilled in the art. 
FIG. 7 shows deposit card 70 (which could be an ATM card) having contained 
thereon magnetic stripe 71 which can have preprogrammed into it a fixed 
amount of, for example, $50.00. This amount can, of course, be any amount 
and as will be seen and can be an amount that is either preprogrammed at 
the factory or placed onto a card by a machine, such as machine 1601 (FIG. 
16) activated by a clerk in a store, as will be discussed hereinafter. 
FIG. 8 shows withdrawal card 80 with magnetic stripe 81 contained thereon. 
This card, as will be seen, can be used by anyone to remove currency from 
the ATM network by the use of a temporary PIN in the manner to be 
discussed hereinafter. 
Returning to FIG. 1, the operation of the system in one embodiment is such 
that a person desiring to establish a temporary withdrawal amount within 
the system would obtain deposit card 70 from a dealer by the payment of 
money or by charging the amount of the card to an established source. As 
discussed, card 70 can be preprogrammed for $50.00 or a clerk at a machine 
can program onto the card any amount of money as determined by the 
depositor. 
Once the depositor has in his or her possession one or more deposit cards 
70, that person (depositor) then inserts the card into slot 143 of ATM 14. 
The ATM system, as will be seen, reads the card, determines from magnetic 
stripe 71 that this is a "sponsored" card and not a normal ATM card. The 
system then can assign a PIN number, which can be made up of multiple 
parts, some parts assigned by the ATM system and some parts assigned by 
the depositor, if desired. This assignment of a PIN number can be, for 
example, cooperatively determined via the use of screen 141 and keypad 142 
for communications back and forth between the ATM system and the 
depositor. 
If a system is used having fixed amount cards, a number of such cards can 
be linked together and accepted by the system so that the depositor is 
able to transfer multiples of, say, $50.00. When the system establishes 
the total amount that the depositor wishes to establish the transaction is 
ended by printing on receipt 147, via printer 144, the amount that has 
been deposited, together with the temporary PIN number. 
The depositor then communicates, in whatever fashion he or she desires, to 
another person (recipient) the PIN number and the amount so deposited or 
credited. The recipient then approaches any ATM machine in the network and 
obtains, perhaps from a merchant, withdrawal card 80 (FIG. 8). The 
merchant can sell the card for a fixed amount or the card can be delivered 
free as a service of the merchant. Contained on magnetic stripe 81 of 
withdrawal card 80 is information pertaining to the sponsor account. 
In one embodiment, the information on withdrawal Card 80 must match the 
sponsor identification information which was contained on deposit card 70. 
In this embodiment, it is important for the withdrawal party to know 
exactly which sponsor is being utilized so that the proper card can be 
obtained. 
The withdrawing party then inserts card 80 into any ATM machine, such as 
ATM machine 15 (FIG. 1) located at a location remote from ATM machine 14. 
This remote location could be in another state or perhaps even in another 
country. 
In response to the normal prompts, the withdrawing party enters, via keypad 
152, the PIN number communicated from the depositing party. The system, as 
will be seen, then processes the information and verifies the account 
number by sending the information to ATM Network Processing Central 12, 
which then in turn directs the information to database 10 of sponsor 
account A10. This sponsor account is the same sponsor account that was 
identified by deposit card 70 since the depositor and the withdrawer both 
dealt with a card issued by the same sponsor A10. 
After verification of the PIN number, as reported back from account A10 as 
will be discussed, the withdrawer keys in the amount desired. If the 
amount is less than or equal to the amount in the sub-account, ATM machine 
15, via currency dispenser 156, provides the currency requested. As will 
be discussed, withdrawal card 80 is then invalidated, or returned to the 
withdrawing party, depending upon the design of the system. 
Turning now to FIG. 2, it will be seen that each sponsor account, such as 
sponsor account A10, has any number of sub-accounts, such as subaccounts 
PIN 00 to PIN XX. Contained within the database, as identified at each PIN 
location, is the amount that is associated with that sub-account, plus, if 
desired, additional information, such as a portion of the sub-account 
password. This additional portion of the password is passed back to the 
ATM machine in response to the insertion of card 80 and, as will be seen, 
is used for identification of the proper recipient. 
In operation, since the money is deposited (a credit established), via the 
deposit card in one city and can be withdrawn from another city, there is 
an accounting function which must take place. This accounting function is 
typical for interbank transfers with the difference being that the actual 
amount in sponsor account A10 is maintained by the sponsor and not by the 
depositor or withdrawer. Thus, periodically the balances must be summed 
from all of the sub-accounts to arrive at a total amount which must be in 
sponsor account A10. This money can be deposited in the traditional manner 
via bank transfers so that the sponsor can maintain the total account 
either greater than the sum of the accounts or just equal thereto. Also 
systems can be arranged where at the end of each day the amount of 
activity in the account is totalled and a charge is automatically made 
against a separate account maintained by the sponsor. 
From the bank's perspective, each sponsor account appears to be a single 
account even though, in reality, many different people use the same 
sponsor account. Thus, using this system, many different individuals may 
deposit and withdraw money from a single account from time to time and 
these individuals need not be known or identified prior to being able to 
access the account. Of course, the use of sub-accounts is for conceptual 
purposes only and in actual practices these would be data entries and 
look-up tables established in a master data base within a computer (not 
shown). The data base would then communicate with a bank on a periodic 
basis in order to "balance" the various amounts. 
One alternate method of using the system would be for various banks or 
other entities to issue special "money" cards that they sell through 
retail outlets in stores around the country or around the world. In such a 
situation, the bank would serve as the "sponsor" and would maintain its 
own sponsor account. The system would work such that the sponsor bank 
would have printed on the magnetic stripe of the money cards an electronic 
designation of the bank and a designation of a particular account within 
that bank. Again, these cards (assuming a fixed value of say $50) would be 
sold at a premium, for example $55.00, to a potential depositor. 
This system is envisioned such that a depositor in one city can place money 
in the sponsor account by inserting the money card in an ATM and have a 
recipient at another city withdraw that money. The system will also work 
for travelers who wish to deposit a large sum of money in an account 
locally where they live and then withdraw the money as they go, perhaps in 
the currency of a country foreign to that in which the deposit (transfer) 
is made. Today the ATM network is used in this manner by people who 
maintain regular accounts, but there are a vast number of people who do 
not choose, for one reason or another, to maintain an ongoing account and 
thus do not have access to the ATM system. Also, today, ATM systems take 
several days to become active and require a great deal of bookkeeping by 
the banks. The system described herein gives immediate access with no 
paper work. 
Before discussing actual system operation, it might be helpful to review 
the typical transaction with respect to a customer as seen from the screen 
of the ATM machine. In FIG. 9, the system shows screen 141 of an ATM 
machine used in prior art systems where, after insertion of the ATM card, 
the system instructs the user to enter his/her PIN number via keypad 142. 
When the full PIN number has been inserted the user then is instructed to 
push accept key 901. The system then functions as well-known in the art, 
by continuing to ask the customer a series of questions. These questions 
include inquiries as to the transaction type the customer desires, what 
account the money should be taken from and ultimately an inquiry is made 
as to the amount. All of this interchange is accomplished with key pad 142 
and soft keys 901. During a typical sequence of events, money is dispensed 
or a deposit is made via an envelope being placed in a slot. The customer 
is finally asked, via screen 141, whether he/she desires another 
transaction. In response to a "no" from the user the ATM card is then 
returned to the user. 
In the system described in this invention, as depicted in FIG. 10, the user 
inserts the "bought" (sponsor) temporary ATM card which has on it (on its 
magnetic stripe) data corresponding to the sponsor account. In our example 
we will assume this account to be 5555 (sponsor Account A10). 
The system then goes to the database associated with account 555 (A10) and 
finds an available subaccount, such as subaccount PIN XX. 
The system then asks the depositor to establish a four digit number to be 
used by the recipient as a PIN or password. Note, of course, the system 
could assign the full PIN number if desired. In our example, the user 
inputs 1357 via keypad 142. This number is then displayed on screen 141 
for verification. When this is accepted, the user presses key 1001, and, 
as shown in FIG. 11, screen 141 then responds by giving the user the full 
PIN number; which in this case is 1357XX and instructs the user that this 
number will be printed on the receipt when the transaction is finished. 
The "XX" portion of the PIN number is the sub-account number within 
sponsor account 5555 (account A10 of FIG. 2). 
In one scenario, where the amount of money is preprinted on the card, the 
depositing user need do nothing more unless several cards are to be linked 
to establish an amount greater than that posted on a single card. The user 
then would be asked if there are additional cards, and in response to a 
"yes" answer, is instructed to insert these additional cards, one at a 
time, under control of screen prompts. 
When the transaction is finished the screen would then display the amount 
deposited and ask for verification. This "deposited" amount is then 
transmitted to the central ATM network as a credit to sub-account XX of 
account 5555 (A10 of FIG. 2) and the user is given a receipt which has 
printed on it the amount deposited in the account and the PIN number of 
the account. The user may also be provided other information pertaining to 
the type of system used or the user can be directed to certain commercial 
facilities where withdrawal cards associated with the same system i.e., 
the same sponsor account, are available. 
For example, one chain of gasoline stations may have an account available 
from stations across the country and their account number could be 1234, 
while a convenience store chain could have a different sponsor number such 
as 1235. A user need not know the specific account number, but only need 
know the identity of the system, or the identity of the sponsoring agency, 
such as the "Octane" gasoline company or the "Super Fast" store company. 
FIG. 12 shows an optional screen designed for systems which provide for 
transferring money from an established ATM account to a temporary account 
or for allowing temporary access by another person to the existing account 
for the purpose of withdrawing a preestablished, but variable, amount from 
that account. In this situation, the user would typically be transferring, 
or setting aside, money from his/her own account and would not be using 
the "bought" temporary ATM cards. However, these two types of arrangements 
could be linked so that either transaction could occur. 
Thus, as shown in FIG. 12, the ATM screen asks for the type of transaction 
desired. In this case, the user would press button 1204 opposite "cash 
transfer". Upon pressing key 1204 the screen would, as shown in FIG. 13, 
instruct the user to enter a 4 digit PIN number to be used by the 
recipient as discussed above with respect to FIG. 11. In this case the 
user inputs the code 6789 and presses accept button 1301. 
The screen then switches to that shown in FIG. 14 and one scenario where 
the user is asked to remove the ATM card and enter a cash (sponsor) card 
containing the sponsor's identity. When the preprinted card system is 
used, the sponsor account is preprinted on the temporary ATM card and 
button 1401 is pressed. As shown in FIG. 15, the full PIN number is 6789YY 
with YY being the sub-account assigned for this transaction. 
Of course, the system could be designed to ask the user to identify either 
a sponsor account from a list of accounts or the user may be asked to 
provide a code number pertaining to a system from a list of code numbers, 
either supplied by the ATM screen or supplied by external advertising. One 
important aspect is that the account need not be the user's own account. 
In another embodiment, however, it is possible to design the system such 
that any user who has a preestablished ATM account can allow anyone 
anywhere in the world to withdraw a certain prefixed amount from that 
account. The withdrawing party would not have access to the full account, 
but would be limited to an established amount. Under such a scenario, the 
depositor would then simply designate his/her own account as the 
sponsoring account and the subaccount (credit limit in the database) would 
be established. 
This information, of course, would have to be communicated to the recipient 
so that upon the proper commands during the withdrawal phase the bank 
associated with the first depositor's account is identified. Again, this 
identification can be preknown to the depositor or recipient or it can be 
printed on the receipt by the ATM machine in response to a series of 
inquiries by the ATM system. These aspects of the system are not shown in 
detail but rather are straightforward to implement once the concept has 
been discussed and understood by those skilled in the art. The number of 
system formulations and possibilities and system options is limitless and 
would burden this specification unduly to enumerate all of them or to 
attempt to provide the actual programming herein. 
Returning now to FIG. 3, for a specific operation the user inserts a 
"bought" card, as discussed above, into the ATM machine which generates a 
card insert signal 300 which is equivalent to the good read signal 
currently utilized. Box 301 determines if this is a valid sponsor card. If 
it is not, then the system reverts to the conventional state flow 
processing which typically would be the PIN entry state in the above 
referenced NCR plus system. Whether or not this is a sponsor card can be 
determined by reading the FIT field or any other field on the card's 
magnetic stripe. 
Digressing momentarily, the PIN number could be determined at the point of 
sale of the card such that the clerk who inputs the amount of money into 
the card can then give an oral PIN number to the user. Alternatively, the 
clerk could pass the card through an electronic printer and encode the 
temporary PIN number onto the card. This electronic printer could be 
connected to the central computer network if desired. 
Continuing in FIG. 3, the system then goes through the optional common 
control state 302 and enters into box 303 which determines if this is an 
input card or a withdrawal card. If it is a withdrawal card, then control 
is transferred to FIG. 5 which will be discussed hereinafter. 
Assuming now that this is an input card, box 304 assigns a temporary PIN 
number as will be discussed with respect to FIG. 4. This effectively 
replaces the selection state of a typical NCR plus system. 
As shown in FIG. 4, box 401 displays a request to the user to provide a 
temporary PIN such as, for example, a 4 digit number. Box 402 then adds 
its own PIN suffix (or prefix) depending upon the identification of the 
sponsor account and sub-account. As discussed previously, this can be 
obtained from the magnetic stripe of the temporary card or can be obtained 
by input from the user or it can be obtained from the identity of the ATM 
machine which can be preprogrammed internally. Control 403 then displays 
to the user the full PIN number. As discussed, this number has two parts, 
PIN I and PIN 2. PIN I would be the number that the user inputted. PIN II 
would be the portion identifying the sponsor sub-account and perhaps the 
account. 
As will be seen hereinafter, the PIN II portion of the PIN number is 
utilized to identify the subaccount (database location) within the sponsor 
account (database) and is thus placed into a database table at the central 
control and acts, as will be seen, as a pointer to the proper subaccount 
under control of information inputted by a withdrawing user. This could be 
subaccount PIN XX as shown in FIG. 2. 
It should be noted that the depositing user can establish his/her own Part 
II PIN subaccount number. However, in this situation it is possible for 
the same sponsor account to have two different users concurrently 
attempting to establish the same PIN number. This can be handled either by 
asking the customer to supply another PIN number or by an automatic 
modification of the number dependent upon the time of day and the location 
of the ATM machine or upon any other set of unique parameters. Such a 
modification need not even be communicated to the user but can be stored 
in the database. The PIN number that is printed for the user on the 
receipt could very well include code numbers indicative of the time, 
location, etc. so that the full identification number would be unique to 
that user. 
Returning now to FIG. 3, box 305 reads the amount pre-established on the 
sponsor's card. This state replaces the "amount entry state" of the NCR 
plus system. Box 306 asks the user whether there are more cards to be 
linked and if the answer is yes the user is instructed via box 307 to 
insert additional cards. This then loops until the user answers "no", in 
which case box 308 totals the input to determine a BALANCE and prepares to 
print via box 309 the balance and the temporary PIN number on the receipt. 
If desired, box 310 asks the user for additional information to derive 
additional data which can be the name of either the depositor or the 
recipient, a city, an address or something particularly unique, perhaps a 
birthday, so that if the receipt is inadvertently discarded an 
unauthorized person cannot use the system. This additional information 
will be well-known to the withdrawing person. 
Digressing again momentarily, it should be understood that it is not 
necessary to print the PIN number on the receipt. This is done only to 
make this system universally acceptable to all people. Because the system 
relies upon the passing of PINs or keys, from one person to another it is 
preferable that this number be one that is written down so that people 
will not be required to remember a code and will not become frightened 
about losing their money in a system if they forget the code. Thus, 
providing the full PIN information to the depositing user is simply a user 
friendly alternative and need not be actuated if so desired. 
However, in one form or another the depositor must provide a unique PIN 
number to a withdrawing party and this PIN number must be one which is 
easy to transmit orally without interception by unauthorized parties. 
Thus, if a mother were transmitting money for use by a son at a distant 
location the mother might, for example, say to the son over the telephone 
"you may withdraw $200 using the ATM located at a certain specific brand 
name gasoline station anywhere in the country using PIN number 6789 and 
your birthdate". Since the mother need not transmit the birthday 
information on the open telephone an interceptor will not be able to gain 
access to the temporary account. (In this scenario, the mother would be 
well advised not to use her own birthdate to avoid embarrassment by a 
forgetful son.) Of course any number of methods can be devised to make the 
system more secure as desired. 
Returning to FIG. 3, after all of the data is gathered, box 311 sends it to 
network processing central 12 (FIG. 1). This state would typically be the 
transaction request state of the NCR plus system. As discussed above, at 
the central system there is established a subaccount within the sponsor's 
account and the amount is stored therein as a credit. Also stored is the 
temporary PIN and the other data, via box 312. Box 313 either destroys the 
sponsor card or removes the currency amount from the card, or in the case 
of an existing ATM card, returns the permanent ATM card to the user. This 
is known as the close state in the NCR plus system. 
Turning now to FIG. 5, we will discuss the sequence of events that occurs 
if this is a withdrawal transaction. Data is received, for example from 
box 301 FIG. 3, and the system, via box 501, checks to see if this a 
withdrawal card. If it is not, the system either cancels the card, stores 
it internally, or rejects the card. If this is a valid withdrawal card, 
then box 502 asks the user to provide the PIN number which is both PIN I 
and PIN II as obtained from the depositing party. This is roughly 
equivalent to the transaction request of the existing system. 
Box 503 then obtains the sponsor account number from the magnetic stripe on 
the temporary ATM card purchased by the recipient. This sponsor account 
can optionally be obtained directly from the ATM machine if the machine is 
dedicated to a particular sponsor. The account can also, if desired, be 
obtained from the PIN information provided by the withdrawing user. 
The PIN II portion of this information is translated via box 504, which 
could be either locally or at the central processing system, into a 
sponsor's account and subaccount number. The subaccount number (PIN II) is 
used to identify a particular subaccount or database within the sponsor's 
account. 
The information stored at that subaccount location is obtained via box 505. 
This information includes the maximum dollar amount that can be withdrawn, 
together with the PIN I information number which will be used to match up 
against the information number provided by the recipient. The PIN 1 number 
could also contain some portion of the other data information which is 
unique to the withdrawing party. 
Box 506 then matches the PIN information provided by the recipient from the 
information withdrawn from the identified subaccount. Box 507 determines 
whether or not a match exists and box 508 inquires about other 
information, if necessary, such as name, birth date, address, etc. Box 509 
is the "amount entry state" from the traditional ATM system where the 
withdrawing person is asked to enter the amount desired. Once the desired 
amount is entered, box 514 checks to determine if this amount is available 
(preestablished) from the particular subaccount. 
Note that even though the main account may have more credit in it, this 
withdrawing user is limited to the amount corresponding to the subaccount, 
which in turn is controlled by the PIN number. This is the feature which 
allows a user to provide access to his/her own account by some other 
person and without subjecting the account's entire balance to improper 
withdrawal. 
The ATM, via box 510, is then instructed to dispense the proper amount and 
in box 511 a check is made to see if the subaccount is now zero or whether 
or not there is credit remaining in the subaccount for subsequent 
withdrawal. If the credit limit is zero, the card can be destroyed. If 
there is more credit remaining, then the card can be returned to the user 
controlled by box 513. 
FIG. 6 shows a modification of the typical transaction of an ATM system 
using the NCR plus system. Box 60 accepts the normal ATM card as inserted 
by the typical user. Box 602 is normal protocol for such a system; box 603 
controls a screen which displays the various services which the user might 
wish to avail him/herself of. 
Assume that the user asks for the "Cash Transfer" service. In this event, a 
temporary PIN number is assigned which can be a combination of information 
contained on the ATM card; unique information such as date, time, 
location, and interactions from the user. The user, via box 605, is asked 
to enter the amount to transfer (or the amount to be designated for 
withdrawal by the user having a temporary PIN). Box 606 prints the balance 
and the temporary PIN number on the receipt. Box 607 sends the PIN and 
balance to the network processing central, FIG. 1. Box 608 returns the ATM 
card and box 609 controls the establishment at the central location of the 
subaccount (database and established limits) within the sponsoring account 
and stores the credit amount and the temporary PIN number which, as 
discussed above, will be matched by the withdrawing party. 
FIG. 7 shows deposit card 70 with a preestablished dollar amount (say $50) 
imprinted on magnetic stripe 71. This stripe could have on it a 
prerecorded bank identification number and could even have a subaccount 
prerecorded. Alternatively, the subaccount number can be generated as 
discussed previously from unique circumstances at the time of the 
transaction. Some portion of the PIN number can be prerecorded or can be 
created from a combination of circumstances at the time of the 
transaction. This subaccount number can also be established by the central 
processing system at the time of the transaction and can be either 
imprinted on the card at the ATM machine, or alternatively, can be 
imprinted on the card by a operator working at a machine, such as machine 
1601 (FIG. 16). In such a situation the operator would insert a blank 
temporary ATM card via insert portion 1602 (FIG. 16) and then would 
keypunch via keys 1603 various amounts onto the card. Thus, if the person 
wanted $300 installed on the card, the operator would then input $300 to 
the card and could then add other information such as the account and 
subaccount. 
Machine 1601 could be connected via telephone wires 1604 or microwave relay 
(not shown) to the central processing system which would then provide data 
which is representative of the account, subaccount and other necessary 
information. Under this arrangement, when the user inserts the temporary 
card in the ATM, the information is already on the card and the account 
could have already been established. This operation can be via machine 
separate from the ATM machine or by a process internal to the ATM system. 
FIG. 8 shows a typical withdrawal card 80 which includes magnetic stripe 
81. This card can be a card which has precoded on magnetic stripe 81 the 
sponsor account number. The withdrawal card can be purchased at a 
participating sponsoring agency, such as a station of the national 
gasoline company sponsoring the card and under one scenario the PIN number 
can be told to an operator who can then use machine 1601 (FIG. 16) to 
input the proper PIN and subaccount numbers. Alternatively, this 
information can be established as discussed previously with respect to 
FIG. 5 by the user working directly at the ATM machine. 
Utilizing this system, a withdrawing person need not have a preestablished 
ATM card nor a preestablished bank account but could, by obtaining a 
temporary withdrawal card 80 at various locations, obtain funds set aside 
in an existing account. Thus, this system can be used to transfer money 
around the world on a moment's notice to people who may or may not have 
other accounts, thereby making cash instantly available for people who are 
traveling or even for people who are paying bills from remote locations. 
Certainly it is possible to use the system for borrowing money where the 
depositing person makes arrangements with a local credit agency to allow 
for the establishment of an account and for the availability of certain 
amounts at certain times. By using this system, money can be transferred 
from one person to another instantaneously without the creation of paper 
and without the time delay necessary to move the currency physically from 
one place to another. 
The system can be designed so that only certain amounts can be removed on 
any one day and those well skilled in the art may devise many alternatives 
and security systems to make the system more practical in its every day 
operation, always keeping in mind that if the system is to be used by many 
people it must be user friendly and easy to use by those who might 
otherwise have difficulty remembering or keeping track of data and 
instructions. 
FIG. 17 shows a flow chart for a system of settling accounts such that the 
subaccounts of a master account are totalled on a periodic basis, perhaps 
once a day. Based on the totaling amounts funds are either transferred 
into or out of the sponsor account. The primary reason for such a 
totalling is that the system is being used by a sponsor who collects money 
from depositors at one location for subsequent withdrawals at another 
location. Thus, the credits in the subaccounts are subject to withdrawal 
and are constantly fluctuating. It is important to periodically check the 
balances and transfer money into the account from another account so that 
the system is maintained in a balanced format. 
As shown on FIG. 17, timer, via box 1701, is set to trigger periodically at 
whatever interval the sponsor (and the bank) feel comfortable. Box 1702 
totals all the subaccounts of a particular account, say, for example, 
account A10. Box 1703 checks to see if the total calculated from all of 
the subaccounts exceeds the actual balance of that account. If the answer 
is no, then box 1704 optionally subtracts the excess from the account and 
box 1705 credits the excess to another master account. 
If the total in the subaccounts of the account does exceed the balance, 
then money (credit) must be added to the sponsor account from a master 
account. This is handled by boxes 1706 and 1707. 
At the end of this routine, box 1708 checks to see if all accounts at a 
particular bank corresponding to this sponsor have been totalled. If they 
have not, then box 1709 indexes the accounts and the procedure is 
repeated. If all of the accounts have been totalled, then the routine ends 
via box 1710. 
In FIG. 18, boxes 1801-1808 show a procedure for checking time limits on 
subaccounts and for removing permissions and limits after time has 
expired. This supposes that a time limit is either entered by the creating 
user or by the system automatically when the temporary PIN is first 
created. 
Although the present invention and its advantages have been described in 
detail with respect to one type of system, it should be understood that 
various changes, substitutions and alterations can be made herein without 
departing from the spirit and scope of the invention as defined by the 
appended claims. 
While the invention has been set in an ATM system it should be understood 
that the inventive concepts are usable in any type of electronic transfer 
system where something of value is to be moved from one person to another 
without the preexistence of an account for at least one of the parties. In 
the embodiment described the commodity being transferred is currency, or 
to be more precise, the commodity is a credit in an account. The commodity 
could be electronic messages, legal title information, images, 
instructions facsimile, or cryptographic keys, all of which would be 
within the spirit and scope of this invention. Also note that in the 
embodiment described, when the system solicits identification information 
from the user, that user manually inputs the response. However, the 
response, which is used to create the unique identification code, 
including the account number and the subaccount number, could be 
electronically created without the user's active input.