Abstract:
A payment system, includes a plurality of purchasing units each associated with a unique identification number. The purchasing units can be purchased, and their existence is stored in central database. The purchasing units can be spent for instance over the Internet, and at this time, the purchasing units are redeemed by sending an appropriate signal including the unique identification number to the central database by the receiver of the payment.

Description:
FIELD OF THE INVENTION  
       [0001]     The present invention relates generally to payment devices and methods, and, more particularly, to a cash alternative device and method capable of purchasing goods or services.  
       BACKGROUND OF THE INVENTION  
       [0002]     There is an increasing concern for identity fraud in today&#39;s digital world. Highly susceptible to such theft are products and services purchased through mail order, over the telephone, and the Internet. In particular, such concern is exacerbated because of the exponential growth in the number of purchases made over the Internet each day. Conventionally, purchases over the Internet are usually paid for by credit card. It is often not considered desirable to provide credit card details for such purposes as they may be fraudulently used by an unauthorized person. This can be a particular fear with the Internet where it can be very difficult to identify the address and often even the location of a party offering a service or product. Furthermore, many people do not wish or cannot have credit cards, for instance as they may exceed their credit limit, may have been refused credit, or may be too young.  
         [0003]     Credit cards are issued with significantly high lines of credit ranging in the thousands to tens-of-thousands of dollars without any method of controlling or reducing the amount available. In addition, the manner in which credit cards are issued make it impossible to transfer the purchasing power to another individual or limit another individuals purchasing power. As such, the prior art precludes flexible purchasing options that can be tailored for an individual&#39;s needs and preferences.  
         [0004]     What is needed is a flexible and secure cash alternative payment system that allows purchasers to buy goods and services while catering to the individual&#39;s personal purchasing preferences.  
       SUMMARY OF THE INVENTION  
       [0005]     The present invention is directed to a method and a system for making a secured, yet flexible payment for the purchasing of goods and services. The payment system comprises a plurality of purchasing units in an intangible electronic format, which can be used like digital currency for purchasing goods and services. The purchasing units are activated after being electronically issued, and can be cancelled in part or all when spent by a user of the payment system.  
         [0006]     The purchasing units are created, redeemed, and assigned a number through an account established by the user. The user provides personal information and deposits currency into the account that corresponds to the number of purchasing units. The user then creates his or her own unique identification number. The payment system is capable of making a secured payment by verifying the user&#39;s unique identification number assigned to the purchasing units.  
         [0007]     The payment system includes a number of flexible features, such as the user&#39;s ability to securely transfer purchasing units to another individual by creating a new account and new unique identification number. The payment system also allows the user to combine two or more purchasing units comprising more than one unique identification number into a single unique identification number. The user also has the option of converting the purchasing units back into a corresponding amount of currency. The purchasing units remain in an electronic form and are capable of being spent, transferred, combined, converted, or redeemed.  
         [0008]     These and other objects, advantages, and features of the exemplary embodiment of the invention are described in detail in conjunction with the accompanying drawings. 
     
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0009]      FIG. 1  shows a simplified block diagram of a payment system constructed in accordance with an embodiment of the present invention;  
         [0010]      FIG. 2  shows a flow chart of a method that can be used by the payment system of  FIG. 1 ; and  
         [0011]      FIG. 3  shows a block diagram of a payment system constructed in accordance with an embodiment of the present invention.  
     
    
     DETAILED DESCRIPTION  
       [0012]      FIG. 1  shows a simplified embodiment of a payment system  10 . The payment system depicted in  FIG. 1  comprises a virtual account referred to as a netCash virtual card  20  that exists only in electronic form and contains an assigned account number. A user of the payment system can establish the netCash virtual card  20  from a netCash website  23 . The establishment of a typical netCash virtual card  20  would require personal information such as date of birth and a unique identification code comprising any alphanumeric combination of characters designated by the user. In addition, the user is required deposit currency or equivalent funds into a netCash bank  22 . The deposit can occur by electronically transferring funds from the user&#39;s existing bank accounts over the Internet or funds could be physically delivered to any netCash bank  22 . Electronic purchasing units  32  are issued to the user in the amount deposited in the netCash bank  22 . The purchasing units  32  are in an intangible electronic format that is capable of being read through a computer, CRT, television, phone, or personal organizer. As an example, the purchasing units can be conceptualized as digital currency and are assigned to the netCash virtual card  20 , which shows an assigned account number, personal information, and unique identification number.  
         [0013]     A computer database  25  contains software  30  capable of tracking account information, including assigning a number of purchasing units  32  based on the funds deposited into the netCash virtual card  20  by the user. In addition, the software  30  in the computer database  25  will adjust the netCash virtual card&#39;s fund balance when purchasing units  32  are spent, transferred, redeemed, or consolidated.  
         [0014]     After establishing a netCash virtual card  20 , the purchasing units  32  can then be used to purchase goods and services from an unlimited number of places that subscribe to the payment system. netCash subscribers or retailers  40  include retail and wholesale stores located throughout the world, from which purchases could be made by using the purchasing units  32  by mail, phone, Internet, or in person. Such retailers  40  would be connected to the payment system computer database  25  through any computer with an Internet connection shown in  FIG. 1  as remote terminals  41 . Any purchases made by the user would be entered by the retailer into their respective terminal for the amount of goods or services, and said amount would be deducted from the user&#39;s netCash virtual card  20  in the payment system&#39;s database  25  through the software  30 . The payment system would then instantly pay the retailer in real time by transferring the required amount from the user&#39;s netCash virtual card  20  to the retailer&#39;s netCash account  43  for the goods and services purchased by the user.  
         [0015]     As shown in  FIG. 2 , a user  100  can create a netCash virtual card  20  from a netCash bank  22  or a netCash website  23 . The netCash virtual card  20  is assigned after electronically or physically depositing currency  101  into the account, and entering personal information  102  into a central computer database  25 . Alternatively, the user  100  can use any computer  320  connected to the Internet  305 , visit a netCash website  23 , and produce a paying slip by providing the personal information  102  discussed above. The user  100  can then transfer an electronic deposit or physically make a deposit at a netCash bank  22  and receive a receipt for the deposit, which would be activated online.  
         [0016]     During the establishment of the netCash virtual card  20 , the user creates his or her unique identification number  103 , and enters the information into the central computer database  25 . The deposited currency  103  is converted into purchasing units, also called netCash  500  in the described embodiment, which corresponds to the netCash virtual card  20  via the personal information  102  and unique identification number  103 . netCash is a type of digital or virtual currency and the amount deposited is recorded and stored in the user&#39;s netCash virtual card  20  within the central computer database  25 . netCash provides several unique and advantageous features over credit cards, cash transactions, or other traditional mediums of exchange, which will be discussed throughout this exemplary embodiment.  
       Central Database, Software, and Computer Network  
       [0017]     In the described embodiment, the central computer database  25  is connected to a computer network  300  via the Internet  305  to an unlimited number of netCash retailers  40 , which accept the netCash purchasing system as a medium for exchange of their goods and services. It will be apparent to one of skill in the art that any number of networking techniques can be used to implement the netCash system. It should be noted that netCash users  10 , retailers  40 , netCash virtual cards  20 , and retailer&#39;s netCash accounts  43  are not limited to a region or country, but could exist on websites found on the Internet, or physical locations throughout the world on all continents and in an unlimited number of countries. Further, the netCash payment system can also exist wherever there is a connection to the Internet  305 .  
         [0018]     Software  30  in the central database  25  comprises an activation program  220 , which activates the user&#39;s netCash virtual card  20  once the netCash virtual card is established and the deposit is authenticated. The software further comprises an authentication program  230  that insures the user or individual is authorized to use the netCash virtual card  20  before making a transaction by verifying the user&#39;s unique identification number  103 . The software  30  also comprises a cancellation program  240  that reduces the amount of purchasing units in the amount of the goods or services purchased by the user, as well a consolidation program  250  that enables a user to merge or divide netCash virtual cards  20 .  
         [0019]     The network of computers  300  contain a number of individual terminals  400  capable of Internet connection, so no specific establishment or place is required, as the payment system can be used by anyone at almost any location in the world.  
       Features of the netCash System  
       [0020]     Now that the user  100  has authenticated a netCash virtual card  20  and created his or her unique identification number  103 , he or she can make purchases for goods and services on the Internet, over the phone, at retail, and wholesale establishments  40  up to the finite amount deposited in the netCash bank  22 . This process of using the finite deposit as purchasing units in the described embodiment is one of the security features of netCash  500 .  
         [0021]     Spend netCash  410  is the designation for the payment system&#39;s ability to make purchases from retailers  40  of the netCash system. However, the purchases are limited to the finite amount deposited into the netCash virtual card  20 . After a user makes a purchase, the software&#39;s cancellation program  240  reduces the user&#39;s netCash virtual card  20  balance in the amount of the goods or services purchased. Spend netCash  410  also provides the opportunity for users that do not own credit cards the ability to purchase products over the Internet that would otherwise be unavailable. In addition, spend netCash  410  purchases are made without the risks commonly associated with conventional credit cards.  
         [0022]     As shown in  FIG. 2 , the user  100 , after creating a netCash virtual card  20  can transfer a controlled amount of purchasing units to another individual, which is referred to as split netCash  420 . Split netCash  420  offers a method for transferring purchasing units by electronic means and enables the user to control the amount of purchasing units to be transferred. Split netCash  420  requires the user to enter his or her account and unique identification number in order to establish a new netCash virtual card  455  with a new unique identification number. The user would then transfer a controlled finite amount of purchasing units to the new netCash virtual card  455  from his or her existing netCash virtual card  20 . The new netCash virtual card  455  is then capable of being securely transferred to another individual electronically.  
         [0023]     There is no limit to the number of times the virtual card  20  can be split using split netCash  420 . For example, a netCash virtual card  20  with a purchasing unit balance of two dollars ($2.00) can be split into forty (40) five cent (0.05¢) netCash virtual cards without any additional cost to the user  100 . Such application is useful when a precise amount of funds are owed to another individual or entity. If an amount of seven dollars and ninety-nine cents ($7.99) is owed, a netCash virtual card  20  can be created for that exact amount eliminating the risk of fraud or over payment.  
         [0024]     Print netCash  450  is a method of recording the netCash virtual card&#39;s value, account number, and unique identification number in electronic form. Print netCash  450  can assist in the transferring of funds (split netCash  420 ) by emailing the print netCash  450  information to a new user. Such transfer requires online (via the Internet) confirmation that the print netCash  450  information is correct and verification that the netCash virtual card  20  is enabled and ready to use.  
         [0025]     netCash also provides the user with the option of redeeming purchasing units from the netCash virtual card  20  in the form of real currency. This process of redemption is referred to as redeem netCash  430 . The user can exercise redeem netCash from any terminal  400  on the computer network  300  or any computer connected to the Internet  305 . The user would be required to enter his account number and unique identification number  103  through a computer connected to the Internet  305  or at a terminal  400 . After the software&#39;s authentication program  230  found in the central computer database  25  verifies the user&#39;s identity, the user can redeem up to the total amount available in the virtual card&#39;s account at any netCash bank  22 . The netCash retailer  40  would then pay the user the monies redeemed. Alternatively, the user could redeem the funds electronically by having the funds transferred to a separate account accessible to the user.  
         [0026]     Another feature of the payment system is the user&#39;s ability to merge separate netCash virtual cards  20 . This feature is called consolidate netCash  440 . A user may desire the merging of two separate netCash virtual cards  20  for a number of reasons. For example, as a matter of personal convenience when two separate netCash virtual cards&#39;  20  balances are low, the user may wish to consolidate the virtual cards to show one entire larger balance. Consolidate netCash  440  makes this possible through the software&#39;s consolidation program  250 . The consolidation program then merges the funds into either a new  455  or existing virtual card  20 .  
         [0027]      FIG. 3  depicts yet another method of establishing a netCash virtual card  20 . First, the user  100  would visit a netCash website  23  via any computer with an Internet connection  305 . A paying in slip  26  is then produced from the netCash website  23 . Thereafter, the user can visit a netCash bank  22  were the paying in slip  26  and currency  101  are presented to a representative of the bank.  
         [0028]     The netCash bank  22  creates and provides the user  100  with a netCash receipt  27  in return for the deposited amount of currency  101 . The user  100  then registers the netCash receipt  27  information online, by entering personal information  102  and selecting a unique identification number  103 , thus establishing a new netCash virtual card  20 . All the features of the netCash system discussed above are now available to the user  100 , including spend netCash  410 .  
         [0029]     Although the embodiments have been described with a certain degree of particularity, it should be understood that various changes can be made by those skilled in the art without departing from the spirit or scope of the invention hereinafter claimed.