Patent GB-1293259-A (GB)
Title: System and method for transferral of funds
IPC: G06Q20/00
Filed: 1970-10-26
Abstract: 1293259 Credit card system HEMPSTEAD BANK Inc 26 Oct 1970 [18 May 1970] 50829/70 Headings G4A and G4T [Also in Division B6] A system for transferring funds comprises at least one input-output terminal 14, 15 (Fig. 1) communicating with a central location, a store 12 of available balance for a customer (customer's account) and a store of credit for a creditor (creditor's account), the arrangement being such that identifying indicia recorded on a customer's identification card and an amount to be transferred to a creditor's account are encoded by an input-output terminal and transmitted to the central location, which debits and credits the customer's and creditor's accounts respectively. Input-output terminals are installed in banks and shops, and a digital computer 13 at the central location. General system.-The available balance for each customer having an identification card is stored on a respective magnetic tape balance file 10, 11 (Fig. 1) which is periodically updated (for example, daily) by subscribers to the credit card system, e.g. the customer's bank, credit card company, or a merchant. The available balance represents the deposit balance plus the allowable overdraft, and is additionally stored on a magnetic disc 12 which is updated for each transaction. The magnetic disc 12 also accumulates credit for the merchants having inputoutput terminals; tne merchant's accounts are zeroed at the start of the day. A magnetic disc transaction file 16 and a back-up tape 17 list transactions occurring at all input-output terminals; these are printed-out by the on-line computer 13 at the close of the day, when the transaction file 16 is broken down by subscriber for transfer to the appropriate subscriber for updating their customers' accounts, and to provide a statistical analysis. A billing file 22 records the activity of each subscriber, for providing bills and statements using an off-line computer programme 23. A printer 18 at the central location provides a record of all unusual transactions, e.g. an identification card used too often in one day. Identification card.-The customer identification card comprises a laminated plastics card having an embedded aluminium strip. A machine-sensible secret code is pressed on the aluminium strip and is invisible to the human eye. The card is additionally punched with a visible, machine readable code including the customer's bank identification and Social Security number. The card is a telephone dialer card as described, but may alternatively comprise an embossed credit card. System uses.-The credit card system is employed for the following purposes: (a) the customer uses his identification card to cover a cash sale, the value of the sale being transferred to the appropriate merchant's account; (b) the magnetic disc files 12 are used to record discounts on cash sales; (c) the customer uses the identification card for cash withdrawal; (d) a merchant can correct mistakes made on previous transactions, or record returned goods; (e) a merchant can obtain a summary of his daily activity, on demand; (f) the computer can transmit a test message to an input-output terminal. System operation.-A merchant inserts his merchant and clerk identification card 90 (Fig. 3) into a slot 83 of an input unit 53 which, in addition to an output unit 52, is on his premises. He picks up a hand set 80 and depresses a dial start bar 82, which causes the card 90 to dial the telephone number of the digital computer 13 (Fig. 1). The computer replies with an "answer back" tone to the merchant through the hand set 80 (Fig. 3). The merchant again depresses the dial start bar 82, so that the input unit 53 releases and simultaneously reads the card 90, and transmits the merchant's identification number to the computer for verification. The customer enters his secret code on a keyboard 62 of the verifier unit 51; the completed entry illuminates a code enter light 85 on the output unit 52. The merchant removes his card 90 and inserts the customer's identification card into the slot 83, simultaneously depressing a verify switch button 63 and the dial start bar 82. The customer's card is released by the input unit 53 and simultaneously the secret code sensed. The secret code is compared by the verifier unit 51 with the keyed-in code, and a card verify light 67 illuminated; simultaneously a fifty millisecond "valid" tone is sent to the computer. (The "valid" tone and following steps do not occur for an invalid secret code comparison.) The input unit 53 senses from the identification card and transmits to the computer the customer's account number. The merchant keys in data on a keyboard 58, the data comprising a transaction code (indicating cash sale, cash withdrawal &c.), the cash amount, and an asterisk (indicating end of message). The computer processes the message and sends a reply to a printer 77 providing a sales slip showing (a) a sign indicating a valid or invalid message, (b) the data, (c) the customer's account number, (d) the merchant's identification number, (e) the transaction code, (f ) the cash amount. If the customer has a sufficiently large available balance, the cash amount is debited from the balance stored in the balance file 12 (Fig. 1), and credited to the merchant's file 12. If the available balance is insufficient, this is indicated by the invalid sign on the sales slip. System details.-The input unit 53 (Fig. 3) comprises a telephone set with touch tone dialling. Touch tone signals are transmitted to and from the computer over a standard, voice grade, half-duplex, switched network telephone line. The calls can be switched manually or automatically. At the central location, the touch tone signals are received and transmitted by a communication interface adapter (55) (Fig. 2, not reproduced), which accepts and transmits 2-out-of-8 dual frequency (touch tone) signals and converts them to and from serial, start-stop 11-bit ASCII characters (American Standard Code for Information Interchange). The characters are strobed by timing pulses. The interface can switch over from receive to transmit in less than ten milliseconds.