Abstract:
The electronic traveler&#39;s check system and method includes an electronic traveler&#39; check card that is usable to retrieve money from point of service locations and banks. The system has a database of user information, such as a pin number and the user&#39;s passport number, which is used to verify the identity of the user before a transaction can take place. An emergency credit feature is provided to enable transaction completion when a cardholder&#39;s account has insufficient cash funds.

Description:
BACKGROUND OF THE INVENTION 
       [0001]    1. Field of the Invention 
         [0002]    The present invention relates generally to electronic monetary systems, and more particularly to an electronic traveler&#39;s check for conducting monetary transactions electronically. 
         [0003]    2. Description of the Related Art 
         [0004]    A traveler in the possession of paper traveler&#39;s checks often encounters the necessity of signing many checks in order to complete transactions with foreign retailers and merchants, domestic retailers and merchants, banks, points of sale (POS), and the like. When a traveler is rushed, the check-signing ritual presents a particularly vexatious and annoying problem that the traveler would rather avoid. 
         [0005]    To add insult to injury, a traveler who runs out of the checks in a faraway land may also find it difficult to replenish the supply of paper traveler&#39;s checks, and thus be far from home with no medium for paying for goods and services. While electronic traveler&#39;s checks have been introduced to solve the problem of signing paper checks, such as the electronic traveler&#39;s check described in U.S. Pat. No. 6,857,565, issued Feb. 22, 2005 to the present inventor, heretofore the same difficulty of having no funds available occurs when the traveler&#39;s account has been exhausted. 
         [0006]    Thus, an electronic traveler&#39;s check solving the aforementioned problems is desired. 
       SUMMARY OF THE INVENTION 
       [0007]    The electronic traveler&#39;s check (ETC) has verification characteristics that are usable in conjunction with various other foreign and domestic electronic monetary systems, including the issuing financial institution. The ETC is adapted for withdrawing monetary funds from foreign and domestic subscribers with automated teller machines (ATM), point of sale (POS) systems and banks. 
         [0008]    A customer purchases an ETC card and deposits as much money as desired in an account linked to the card. The customer is allowed to make as many withdrawals or POS purchases as desired. When the funds are depleted, the customer has the option to add additional funds to their linked account, or to tap into a preapproved credit line that can be used for transactions until the credit line is used up. The ETC has an expiration date that coincides with the expiration date of the customer&#39;s passport. 
         [0009]    In addition to purchasing the ETC card and making a deposit into a linked account, the customer must also provide verification data and security data. This data is used to prevent fraudulent transactions and to provide card security. 
         [0010]    These and other features of the present invention will become readily apparent upon further review of the following specification and drawings. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0011]      FIG. 1A  is a front view of an electronic traveler&#39;s check card according to the present invention. 
           [0012]      FIG. 1B  is a rear view of an electronic traveler&#39;s check card according to the present invention. 
           [0013]      FIG. 2  is a front view of an application form for applying for an electronic traveler&#39;s check according to the present invention. 
           [0014]      FIG. 3  is a flowchart of a method for issuance and use of an electronic traveler&#39;s check according to the present invention. 
           [0015]      FIG. 4  is a block diagram showing elements of an electronic traveler&#39;s check system according to the present invention. 
       
    
    
       [0016]    Similar reference characters denote corresponding features consistently throughout the attached drawings. 
       DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT 
       [0017]    The present invention is directed to an electronic traveler&#39;s check (ETC), including a system and method having verification characteristics, and which is usable in conjunction with various other foreign and domestic electronic monetary systems, including the issuing financial institution. The ETC card is adapted for withdrawing monetary funds from foreign and domestic subscribers with automated teller machines (ATM), point of sale (POS) systems, and banks. 
         [0018]    The ETC card, as depicted in  FIGS. 1A  (front face) and  1 B (rear face) is an Electronic Traveler&#39;s Check Card  10 , which may comprise a rectangular plastic electronic traveler&#39;s check (ETC) card having verification characteristics, such as the Electronic Traveler&#39;s check indicia  12 , account number  14 , and printed user&#39;s name  16 , represented as “John Doe” on the exemplary front face ( FIG. 1A ) of the ETC  10  of  FIG. 1A . An expiration date  17  is stamped on the card as a necessary security measure. In this example, the ETC  10  will expire in January of  2003 . 
         [0019]    As shown in  FIG. 1B , the rear face of the ETC  10  has a signature blank  20  for the cardholder&#39;s signature appearing over appropriate signature indicia  22 . A conventional magnetic strip  18  is attached to the card having appropriate information stored thereon to identify the cardholder. 
         [0020]    In order to obtain an ETC card  10 , a user fills out an application form, such as the exemplary form  24  of  FIG. 2 , that is provided by a participating vendor and pays the amount of money credit requested. In exemplary form  24 , the title  26  identifying the application as an ETC Application is located at the top. The user&#39;s name, address, phone number, and date of birth must be entered in the area marked  28 . The user&#39;s passport number or numbers and expiration date(s)  30  must be entered. If the user has dual citizenship in different countries, the user must supply both passport numbers. If the user has a spouse or another person traveling with him, the second address, related information  32  and passport number(s)  34  must be filled out, together with the birth date. 
         [0021]    A 12- or 24-hour maximum withdrawal amount  42  is provided under the title  38 , “AMOUNT DEPOSITED ON ELECTRONIC TRAVELER&#39;S CHECK” in terms of hours and minutes for the “12- or 24-HR. CHANGE OVER TIME,” and in time of the day in “AM” and “PM” “FOR THE 24-HR. CHANGE OVER TIME”. 
         [0022]    Field  43  provides entry space for a user preapproved credit request, including a dollar amount requested. 
         [0023]    The space for signature(s)  40  of the user(s) must be filled out. The application  24  is authenticated upon receipt of the money by the signature  44  of a bank employee and dated at  46 . The rationale for limiting the withdrawal is that in the event that the ETC  10  and the PIN number are stolen, the criminal can only withdraw the maximum amount of money permitted during the 12- or 24-hour period, giving the legal card owner time to cancel the stolen ETC  10 . 
         [0024]      FIG. 3  illustrates an overview of a method of issuing and using the ETC  10 . Once the application  24  has been properly filled out, as indicated at step  80 , the user transfers funds to the card vendor and receives the ETC card from the vendor, as shown at step  82 . At step  84 , a card account is created in a database and linked to the card, thereby activating the card. The linked account may be stored in the database, provided it is accessible by a server. The server may preferably be connected to the Internet, or accessible by telephone. 
         [0025]    The process of withdrawing funds from the electronic traveler&#39;s check account at a banking institution or a point of sale begins at step  86 , and includes a number of steps implementing security precautions, as shown in  FIG. 3 . At step  88 , the user must present the ETC  10  and his passport to the appropriate bank or vendor clerk. 
         [0026]    At step  90 , the clerk then takes the ETC  10  and uses a magnetic reader with an attached keypad to read the magnetic strip  18  on the back of the card and input that information into a computer network. 
         [0027]    At step  92 , the clerk will then enter the user&#39;s passport number into the keypad on the magnetic reader and verify that the passport picture matches the user. 
         [0028]    The user then enters his PIN and the amount of currency requested for withdrawal from the traveler&#39;s check account into the keypad. 
         [0029]    At step  94 , the server then verifies the user&#39;s passport number and PIN, and if both are correct, electronically transfers the funds and generates a receipt. 
         [0030]    Optionally, the receipt is sent to the reader and printed so that the user may then sign a receipt. The signature can be compared to the signature on the back of the ETC by the clerk for further security. If sufficient funds are present, the funds are deducted from the linked account at step  102 , and provided to the user or the merchant at step  104 . 
         [0031]    The customer purchases an ETC card and deposits currency in an account linked to the card. The customer is allowed to make as many withdrawals or Point of Sale purchases as desired. When the funds are depleted, the customer may add funds to the linked account at step  100  or, as shown at step  99 , if a preapproved line of credit has been established on the card, the customer may continue using the card at step  102 , where the transaction amount is deducted from the account. 
         [0032]    The card has an expiration date that coincides with the expiration date of the customer&#39;s passport. By having the ETC card expire on the same date as the passport, the ETC card-issuing company can issue a new ETC card prior to the expiration of the cardholder&#39;s passport, which will also serve as a reminder to the customer that their passport is soon to expire. 
         [0033]      FIG. 4  shows components comprising the ETC system  72 . The information from the check application  24  is entered into an account database  70 , which is accessible by a server  69 . A server is well known in the art and ordinarily comprises a processor, area main memory, hard disk memory and a power source. The server is preferably connected to the Internet  71 . A card reader  62  having a screen  68 , a keypad  64  and a magnetic strip reader  66  may be used to read the ETC card  10  and input passport  60  data into the server  69 . 
         [0034]    The server  69  compares the information sent by the card reader  62  to the information present in the database  70  and determines whether the data is correct. The server  69  also determines whether there are sufficient funds present in the account to complete the proposed transaction. The process may also be completed without the use of the Internet  71  by establishing a direct dial communications link between the reader  62  and the server  69 . 
         [0035]    It is well within the ability of one skilled in the art to substitute an ATM machine for the card reader  62 . The only difference is that there would be a limit per transaction period on the amount of funds that could be withdrawn from the linked account. This limit is not present in POS and bank transactions. 
         [0036]    The addition of a preapproved credit line to an electronic traveler&#39;s check  10  makes the ETC  10  competitive with conventional ATM cards while traveling, and offers additional security precautions to combat the problem of card theft, both in a foreign country and domestically. 
         [0037]    It is to be understood that the present invention is not limited to the embodiment described above, but encompasses any and all embodiments within the scope of the following claims.