Restricted purpose, commercial, monetary regulation method

A restricted purpose, commercial, monetary regulation method is provided whereby a network is established between the business user, the acceptor of the restricted purpose card and a financial institution so that the business user obtains a unique identification number that enables him to purchase only one specific product or service from the acceptor. As a result, employers are free to give this card to employees without endangering the employees by entrusting them with large sums of cash or currency and while also ensuring any use of the card will be for a purpose authorized by the business. Once the validity of the card is authenticated, the transaction is completed by the acceptor, the information is transferred to financial institution and the funds are transferred from the user's account to the acceptor's account. An audit trail is provided by the assignment of a unique transaction number to each transaction and statements are provided to the user and the acceptor detailing the specifics of each transaction over a period of time.

BACKGROUND OF THE INVENTION 
This invention relates to a means for providing a restricted purpose, 
commercial monetary regulation method. 
Systems for regulation of commercial transactions on the basis of 
pre-established criteria have existed for some time. The utilization of 
credit cards, debit cards and individual department store credit cards in 
lieu of cash payment is an ever increasing phenomenon. Along with the 
increase in utilization of these cash substitutes, however, abuse of these 
cards by authorized and unauthorized individuals has necessitated the 
development of a wide variety of methods designed to identify and prevent 
card abuse. Examples of various means utilized to prevent card abuse 
include arbitrary selection of various credit cards presented to an 
examining device for selection for inquiry as to ownership and validity as 
disclosed in Goldman, U.S. Pat. No. 3,566,081 and Goldman, U.S. Pat. No. 
3,891,830 wherein a credit card verification system is utilized with 
credit cards that contain information such as credit limits, the number of 
transactions within a certain period of time and a comparison of whether 
or not any credit still remains within the prescribed limits. Yet another 
method for preventing the unauthorized use of cards is disclosed in Basset 
et al., U.S. Pat. No. 4,439,670, wherein the card of that invention 
collects information on the number of inaccurate attempts to enter a 
confidential code for use of the card and, once the number of unauthorized 
attempts reaches a predetermined value, the device energizes a control 
circuit which disables the card. 
Manufacturers of cards have utilized various other means and methods to 
limit unauthorized use of cards such as limiting the period of time within 
which the credit card is valid. Nothing about this method, however, 
prevents authorized or unauthorized use of the card within or even above 
maximum limits over a short period of time. 
Other protective means have been established by the acceptors of cards such 
as "floor limits" which are adopted so that any credit card transaction 
above a certain limit would require authentication and authorization. This 
system clearly does not prevent authorized or unauthorized use below the 
floor limit nor is the system universally adopted so that an unauthorized 
credit card holder can simply go to another store with higher or no limits 
and still use the card. 
As can be seen from the above discussion, existing devices and methods for 
preventing unauthorized use of cards are ineffective and/or cumbersome in 
that expensive electronic screening equipment is required or modification 
of credit cards by providing sophisticated internal micro processing means 
are required to effect a still non perfect solution. An understanding of 
the problem is facilitated by reviewing the various types of cards 
currently in use as well as other payment methods that are currently 
available. 
National and international credit cards such as Master Card and Visa are 
issued primarily to consumers based upon the credit worthiness of the 
consumer card holder. These cards are almost universally accepted for the 
purchase of almost any product or service. Additionally, purchases can be 
initiated by phone. Purchases can also be electronically authorized and 
captured, recorded, for payment from a prepared statement forwarded at a 
later date to the card holder. 
Department store credit cards are issued by major national retailers, such 
as Sears, on the same basis as national credit cards. That is, cards are 
issued to consumers based on the credit worthiness of the card holder. 
Also, like national cards, department store cards may be used to purchase 
any product or service offered by the retailer in their stores or 
catalogs. Also, purchases may be initiated by phone and payment is made to 
the retailer as a byproduct of the operation of the credit card portion of 
the retailer's business when customers are later billed for their 
purchases. 
Gasoline credit cards operate in much the same manner as department store 
credit cards and are issued by major oil companies to both consumer and 
commercial customers, once again, based upon the credit worthiness of the 
applicant. Similarly, these cards are utilized to purchase a wide variety 
of products and services from oil company outlets world wide. Payment to 
the oil company results from the collection process related to the 
operation of the credit card portion of their business wherein a bill is 
sent to the credit card user for payment at a later date. 
"Fleet" cards are issued to businesses by financial institutions for the 
purpose of purchasing gasoline and/or maintenance services for vehicles 
owned by the company at service stations that have agreed to accept the 
Fleet card for payment. The financial institution pays the service 
providers and charges an account of the cardholder business maintained at 
the financial institution for that purpose. The card must be presented in 
person and an identification code provided by the individual purchasing 
goods or services to initiate payment. A variety of goods and services may 
be purchased at any service provider that displays the Fleet card emblem. 
A relatively new innovation in cards is a debit card issued by financial 
institutions to retail customers to allow electronic access to customer's 
accounts with the financial institution. Cards may be used to obtain cash 
and conduct other financial transactions through automatic teller 
machines. Additionally, these cards may be used to purchase goods and 
services at businesses that participate in point of sale networks with 
specific financial institutions. These purchases are limited to "in store" 
purchases due to the necessity to activate the card by use of a 
confidential personal identification number or a signature on a paper 
receipt. 
A popular consumer payment option is telephone bill paying. These accounts 
are offered by financial institutions to retail customers to initiate 
regular periodic payments by use of a touch-tone telephone. Payment 
instructions are followed by the financial institution by charging the 
customer account and mailing a check to the designated payee. The payee 
cannot initiate the payment and cannot use telephone bill paying as a 
guaranteed method of payment at the time a product or service is sold. 
An important new electronic payment method is the origination of charges by 
a supplier of goods or services through the Automated Clearinghouse (ACH) 
network. The supplier certifies to his financial institution that he has 
authorization from customers to originate charges to their bank accounts 
through the ACH system and provides the detailed account information to 
his financial institution to initiate the charges and to issue credit for 
them into the supplier's account. Financial institutions carefully 
restrict the use of the system to the most credit worthy suppliers 
(electronic collection of monthly insurance premiums by insurance 
companies is a typical example). While the supplier can receive credit 
immediately, there is no guarantee that the charges will not be returned 
unpaid and charged back to his account. 
While other systems exist, the card and payment methods described above 
exemplify the overwhelming majority of non cash payments today. A draw 
back to most of the cards and card validation or control systems known in 
the art is that once a card is issued it is accepted by an extremely wide 
variety of businesses. As a result, commercial enterprises are reluctant 
to obtain credit cards and cards of other similar types for their 
employees due to the real possibility of abuse of the credit card by 
employees. Thus, there is a need in the art for a system for providing a 
restricted purpose commercial monetary regulation means which may be given 
to employees without fear of widespread unauthorized purchase of material 
that does not directly benefit the employee's company. It, therefore, is 
an object of this invention to provide an improved restricted purpose 
commercial regulation system that may be freely given to employees without 
fear of unauthorized purchase of material of no benefit to the company and 
that still provides guaranteed payment to the provider of a special good 
or service to the card holder. 
Referring to the following diagram, further objects and advantages of this 
invention over the prior art are demonstrated in that it: (1) is available 
to any purchaser of a specified product or service, (2) is electronically 
authorized and captured at the point of sale, (3) provides immediate 
payment to the supplier or seller, (4) provides a detailed audit trail of 
all transactions, (5) limits the use of the payment method to a specific 
product or service provided by a specific supplier, (6) can be activated 
by telephone, and (7) provides guaranteed payment to the seller on 
acceptance. None of the cards or payment methods described above meet all 
of these requirements as summarized in the chart below. The column headed 
"New Method" represents the ability of the new invention to meet these 
requirements. 
__________________________________________________________________________ 
PAYMENT OPTIONS 
National 
Dept. St. 
Gasoline 
Debit/ 
Tele. 
Fleet 
Originate 
NEW 
REQUIRMENT Cr. Card 
Cr. Card 
Cr. Card 
ATM Bill Pay 
Card 
ACH Debit 
METHOD 
__________________________________________________________________________ 
Unrestricted 
No No No Yes Yes No No YES 
Issue 
Elec. Authori- 
Yes Yes Yes Yes No Yes 
Yes YES 
zation/Capture 
Immediate 
No No No Yes No Yes 
Yes YES 
Payment 
Audit Trail 
Yes Yes Yes Yes Yes Yes 
Yes YES 
Restricted Use 
No Yes Yes No No No Yes YES 
and/or Payee 
Telephone 
Yes Yes Yes No Yes No Yes YES 
Activation 
Merchant No No No Yes No Yes 
No YES 
Guaranteed Pmt. 
Upon Acceptance 
__________________________________________________________________________ 
SHORT STATEMENT OF THE INVENTION 
Accordingly, the restricted purpose, commercial monetary regulation system 
of the present invention includes preparing a restricted purpose 
identification card so that each card bears a unique identification means, 
such as a number. Next, a network is established between the restricted 
purpose identification card user, a restricted purpose identification card 
acceptor, a restricted purpose identification card authenticator and a 
restricted purpose identification card manager. Once this network is 
established, the restricted purpose identification card user either 
presents the card to the card acceptor or transmits the card number to the 
card acceptor who validates the use of the card with the authenticator 
and, upon receiving validation, provides the card user with a single 
authorized product or service. Subsequently, processing, by the restricted 
purpose identification card manager, of authorized uses of the card takes 
place by means of transferring funds from the user's account, within the 
manager's control, to the acceptor's account. Each party, that is the user 
and the acceptor, is provided with collated information concerning the 
number of uses, quantities of funds transferred, time, date and place of 
use and remaining balances, among others. As a result, commercial card 
holders of the present invention are free to allow employees to use this 
restricted purpose card with the assurance that only the business of the 
company, limited to the single purpose product or service provided by the 
acceptor of the card, will be undertaken by the user. The invention 
provides a double restriction in that the employer not only selects the 
payee but also the product that can be purchased. Another embodiment of 
the invention enables a user to select more than one restricted payee or 
more than one product or service or both but while still maintaining the 
seven previously described advantages. 
The need for and usefulness of the present invention can be further 
illustrated by way of example. Throughout the country, the movement of 
oversize/overweight motor vehicles on state highways is regulated by state 
departments of highway and public transportation by means of issuing 
permits and collecting fees for such movement. Issurance of these permits 
has traditionally been accomplished by direct purchase of permits by 
vehicle drivers at a large number of widely dispersed permit offices 
located in counties throughout the state. In most states, vehicle drivers 
must carry with them money orders, cashier checks, or cash for the exact 
amount of each permit. Unfortunately, entrusting drivers with large 
amounts of money orders, cashier checks or cash is not an attractive 
proposition for companies and might also endanger the vehicle drivers. 
Substitution of a typical credit card in place of the money orders, 
cashier checks or cash does not solve the problem. Employees entrusted 
with credit cards may run up large amounts of bills for other than company 
related expenses or, if lost, unauthorized users could do the same in the 
period before the card is reported lost. On the other hand, utilization of 
the present invention of a restricted purpose, commercial monetary 
regulation system ensures that employees of businesses will only buy that 
for which the company has predetermined a need. The card of this invention 
eliminates the dangers and concerns associated with carrying large 
quantities of money orders, cashier checks or cash and eliminates the 
possibility of misuse associated with the ordinary credit card. Even if 
the restricted purpose commercial card is lost, it cannot be used to 
purchase any other item except that specifically associated with the card 
number. Additionally, companies are provided with a printed copy of every 
transaction in complete detail so that the user can determine when the 
card was used and for what limited purpose. 
In the highway permit example, the card manager would also handle the 
transfer of funds accumulated as occuring, at the end of the day, or at 
some other regular period, to the card acceptor, that being the state 
department of highways and public transporation. As a result, states will 
receive their money more quickly, either immediately or as early as 
transactions are processed. This eliminates the need for a department to 
have a number of widely spaced permit offices throughout the state and 
prevents the hazards and delays associated with collecting large sums of 
money at such widely disbursed locations. 
By way of further example, courthouses in every state require the payment 
of fees of various types in the course of litigation. As a result, lawyers 
are required to carry with them a check to cover the costs established by 
the courts. Unfortunately, states often change the fees and it is a common 
problem to arrive at the courthouse with a signed check for a given amount 
only to find that an additional amount is required. As a result, law 
firms, in much the same way as companies paying state permit fees, have a 
dilemma concerning equipping their employees to make proper payments. The 
solution of providing blank checks is obviously not preferred and most 
courthouses will not accept credit cards. As a result, the present 
invention could be utilized to eliminate waste, delay and risk associated 
with the present method of regulating monetary transactions at the 
courthouse. That is, an employee could be equipped with a restricted 
purpose commercial card that identifies the law firm's account to the 
clerk of the court. Once authenticated, the clerk can issue the employee a 
receipt for payment in full for whatever price currently is established 
for the filing of the particular document. The restricted purpose 
identification card manager would provide the user and acceptor of the 
card with an audit trail in the form of a printed statement indicating 
account transactions by date, time and place as well as amount. Court time 
lost in accounting for cash, checks and other items received in payment 
would be eliminated while, on the other hand, the law firm would be 
assured that the restricted purpose card utilized by their employee would 
only be utilized for the firm's benefit for the limited purpose of paying 
court fees.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT 
The preferred embodiment of the present invention is illustrated by way of 
example in FIGS. 1-4. With specific reference to FIG. 1, a front view of 
the restricted purpose commercial card 10 is shown with trademark 
identification 12, for example "FirstPay", and a silhouette of the State 
14, of Texas in this example, indicating that the restricted purpose 
commercial card 10 is capable of being utilized within that particular 
state. The name of the limited purpose acceptor 16 is also shown on the 
card, in this instance the Texas State Department of Highways and Public 
Transportation. Next, a unique identification means 18 is provided. In 
this example, it is a sixteen digit number, fourteen of which comprise the 
number proper and two of which are authentication numbers derived from the 
application of any suitable arbitrary formula to the fourteen numbers 
proper. For example, the formula could be to add each individual number to 
the other and then divide the total of the fourteen numbers by two. The 
resulting two digit number would then be added, in an arbitrary and 
undisclosed place, to the list of the sixteen digit unique identification 
number 18 for an easy and accurate means of determining whether the unique 
identification number 18 is valid. 
The next item listed on the front of restricted purpose commercial card 10 
is the name of the restricted purpose identification card user 20, in this 
instance, "Rabbit Ears Trucking Company". Any other additional information 
22, such as "Attention: dispatcher", and any other trademark 
identification 24, such as symbols for stripes, may be added to the front 
of restricted purpose commercial card 10. 
Referring now to FIG. 2, the back of restricted purpose commercial card 10 
is illustrated. Any additional appropriate information may be displayed 
thereon as, for example, instructions for use 26, statement of rights and 
remedies 28 and any additional trademark information 24, such as a logo. 
Referring now to FIG. 3, restricted purpose commercial card 10 is shown in 
a back view wherein the embodiment of commercial card 10 is illustrated 
with the addition of a magnetic stripe 30. As is known in the art, the 
user's unique identification number 18, the total amount remaining in the 
user's account, the number of transactions previously executed, and any 
other various and sundry appropriate information may be electronically 
recorded as is known in the art. 
Referring to FIG. 4, a diagram reflecting the transaction flow of the 
present invention is illustrated. The restricted purpose commercial card 
monetary regulation system is established when a financial institution 32 
establishes a network through agreement and contract with a payee 34 to 
accept payments for a specific product or service, based upon a unique 
identification number 18 issued and authorized by financial institution 
32, by electronic authorization and capture of transactions through point 
of sale terminals. Additionally, networks are established between the 
financial institution 32 and restricted purpose commercial card user 36 to 
the effect that user 36 agrees to maintain a minimum balance with 
financial institution 32 and to allow financial institution 32 to 
automatically replenish user's account 36 when it reaches an arbitrary 
minimum value. Also illustrated in FIG. 4 is authorization and capture 
center 38 that has established an additional network with payee 34 and 
financial insitution 32 for the validating of restricted purpose 
commercial cards 10 by utilization of unique identification means 18 and 
the recording and transfer of information concerning the individual 
transaction. 
Once a network has been established between the interested parties, the 
accounts have been properly established at financial institution 32 and 
restricted purpose commercial cards 10 have been issued to users 36, 
purchase transactions are conducted as follows. A user 36 orders a 
specific product or service by telephone call to payee 34 and provides 
unique identification number 18 to satisfy payment requirements. Payee 34 
enters the amount of the purchase transaction and the unique 
identification number 18 provided by the payer, card user, 36 into an 
electronic point of sale terminal that communicates with authorization and 
capture center 38. An authorization and capture center 38 computer 
compares the unique identification number 18 to primary card information 
contained in a data base to determine if the unique identification number 
18 provided is valid, if funds are available, and if, therefore, the 
transaction can be authorized. If the card number is invalid, an 
electronic response is sent to the point of sale terminal in the payee's 
34 office that the transaction can not be processed and asks for another 
form of payment or a re-entry of the number in the event an error was made 
in keying the number on the original attempt. If the card number is valid, 
an electronic response is sent to the point of sale terminal in the 
payee's 34 office approving the transaction and supplying a unique 
transaction number to be associated with the purchase records in the 
payee's 34 files. 
Valid transactions are stored electronically (captured) at the 
authorization and capture center 38 until the end of the business day. 
Following the close of each business day, authorization and capture center 
38 transmits captured transaction data to the data center of the card 
issuing financial institution 32 for processing. It may be that a more 
rapid transaction is required or desired. In that case, transactions may 
be either stored or captured as occuring during account balance 
verification. 
Financial institution 32 charges each transaction to the account maintained 
at the financial institution by payer/user 36 and credits the total of all 
daily transactions from all users 36 to the account maintained by payee 
34. Detailed computer reports of all daily transactions are printed at the 
financial institution 32 for reconciliation of daily transactions and as 
an audit trial for payee 34. A statement is prepared monthly for each 
payer/user 36 account reflecting the details of each purchase transaction 
applied to the account during the month. Once user's 36 account reaches a 
pre-determined minimum amount, it is replenished by direct transfer from 
the user's 36 pre-selected account at that institution or at another 
institution. 
It is obvious from this discussion that authorization and capture center 38 
may be combined with financial institution 32 or remotely located. 
Additionally, it is obvious, as previously stated, that the transfer of 
funds from user's 36 account to payee's 34 account can occur on an as 
occuring basis as opposed to waiting until the end of the business day to 
complete that transaction. 
From this detailed description it can be appreciated that the benefits of 
this method of monetary regulation are several. To begin with, any 
commercial entity becomes eligible to use the payment method by depositing 
funds in an account in an amount sufficient to cover expected monthly 
purchase volumes. Further, electronic authorization and capture is fast 
and reliable. The normal completion time for a transaction within this 
system is from eight to twelve seconds. Additionally, the payee will be 
paid the same business day. Automatic funds concentration will increase 
daily amounts of funds available for use by the payee through its cash 
management program as a side benefit. Additionally, a unique transaction 
serial number is assigned to each transaction for identification of the 
specific permit or product that was purchased with each transaction. Most 
importantly, payment can only be made to a designated payee. If the card 
of this invention or the unique identification number is lost or stolen, 
there is absolutely no risk that it will be misused to make general 
purchases. Of equal importance is the removal of the risk of lost or theft 
of money orders, cashier checks, cash or general purpose credit cards 
while in the possession of employees. Finally, consolidation of restricted 
purpose sales to a central office is capable under this system and would 
result in the elimination of superfluous offices located throughout the 
state thereby reducing operating costs significantly. 
While the present invention has been disclosed in connection with the 
preferred embodiment thereof, it should be understood that there may be 
other embodiments which fall within the spirit and scope of the invention 
as defined by the following claims.