Patent Publication Number: US-7720755-B1

Title: Card-based system and method for issuing negotiable instruments

Description:
FIELD OF THE INVENTION 
     The present invention relates generally to prepaid negotiable instruments. More specifically, the present invention relates to pre-paying funds into a transaction account and subsequently drawing upon those funds through the issuance of negotiable instruments. 
     BACKGROUND 
     Banks traditionally offer certain benefits to their customers, such as safe-storage of and access to funds, direct deposit capabilities, automated teller machine (ATM) access and convenience of service points, etc. Many members of the cash based society understand and seek such bank-like benefits at reasonable and straightforward prices, but are often reluctant to enter into a relationship with banks. One reason for the cash based society&#39;s avoidance of banks is that they tend to feel that they are not respected by banks. Also, members of the cash based society typically reject hidden fees, limited services and locations, approval processes, minimums, etc. Thus, the prevailing product and service approaches of banks tend to intimidate members of the cash based society, or at least impede the successful adaptation of bank services to their needs and lifestyles. 
     Some banks and financial institutions offer “low cost” or “basic” accounts. Such financial institutions usually restrict services, offer “lower” fees, and may waive minimum balance requirements. However, such low cost accounts remain unappealing to many members of the cash based society because they tend to be offered through bank branches with limited hours and locations and ATMs which may not be local to the consumer. Furthermore, there is still a credit check and an approval process associated with “low cost” accounts, which the cash based consumer might fail because of credit history or residence problems. In addition, the cash based consumer may be worried about garnishments or inconvenient, disrespectful service. 
     Some financial institutions offer debit card payroll solutions. For example, a branded check printing service may provide direct deposits capabilities for federal benefit checks in exchange for a transaction fee. However, federal benefit check distribution services do not allow multiple withdrawals in varied amounts. Transaction fees for these and other debit card payroll solutions tend to be expensive. There is currently no other banking service offered to the cash based society that provides direct deposit capability. 
     Accordingly, there remains a need for a financial service that offers safe-storage of and access to funds, direct deposit capabilities, automated teller machine (ATM) access, convenient service points, etc, without requiring a traditional bank-customer relationship. 
     SUMMARY OF THE INVENTION 
     The present invention meets the above-described needs by providing a system and method whereby a non-bank entity, such as a Licensed Memory Transmitter, may issue prepaid negotiable instruments to an individual. In one aspect of the invention an account structure is provided that allows a non-bank entity to indirectly provide direct deposit capabilities for funds representing pre-payments for negotiable instruments. When a direct deposit of funds into a first account associated with the individual and maintained by a first entity is detected, the total amount of the funds is transferred, or swept, into a second account associated with the individual and maintained by a second entity. The first entity is a bank or other financial institution subject to federal banking regulations, while the second entity is not subject to federal banking regulations. Detecting a direct deposit of funds into the first account comprises detecting a credit in the total amount of the funds posted in the first account. Automatically transferring the total amount of the funds into the second account comprises posting a debit in the total amount of the funds in the first account and posting a credit in the total amount of the funds in the second account. 
     An account number and a PIN are associated with the second account and are provided to the individual. When a request by the individual for the issuance of a negotiable instrument is detected, the PIN and the account number are verified to determine that the account number identifies the second account and that the PIN identifies the individual as being authorized to access the second account. Then, a determination is made as to whether the value of the requested negotiable instrument is in excess of the balance of the second account. If the value of the requested negotiable instrument plus any fees charged to the individual is not in excess of the balance of the second account, the issuance of the requested negotiable instrument to the individual is authorized. In response to the issuance of the requested negotiable instrument, the balance of the second account is debited by the value of the requested negotiable instrument plus any fees. When the individual requests the issuance of multiple negotiable instruments, a determination is made as to whether the aggregate value of the requested multiple negotiable instruments plus any fees is not in excess of the balance of the second account. Upon issuance of the requested multiple negotiable instruments to the individual, the second account is debited by the aggregate value of the requested multiple negotiable instruments plus any fees. 
     A properly enrolled customer may make subsequent deposits into the second account. Upon requesting a balance increase for the second account, the individual tenders a payment in the requested amount. In response to the balance increase request the second account is credited in the requested amount. 
     Another aspect of the invention provides a system and method for conducting anonymous transactions with an individual regarding prepaid negotiable instruments. An anonymous account is provided that is identified by an account number. The individual is then provided with the account number and a PIN allowing access to the anonymous account. Upon verification of the PIN and the account number, the individual is authorized to make an initial deposit of funds into the anonymous account. The initial deposits of funds represents a prepayment for negotiable instruments. The individual is thus authorized to request the issuance of negotiable instruments in an amount not exceeding the initial deposit of funds. When the issuance of negotiable instruments has depleted the initial deposit of funds, the anonymous account is closed and no other transactions are authorized. 
     The anonymous account may be converted into a non-anonymous account if the individual provides personal identifying information, such as name, address, social security number, etc. Once such personal identifying information is provided, a non-anonymous account associated with the individual may be established. The non-anonymous account may have a new account number and PIN associated therewith. The new account number and PIN may be used by the individual to make subsequent deposits of funds into the non-anonymous account. While an anonymous account is not authorized to accept direct deposits of funds, the non-anonymous account may be linked to a traditional bank account, via a communications link, so as to indirectly offer direct deposit capabilities. 
     These and other aspects of the present invention will become apparent upon review of the following description with particular reference to the attached drawings. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         FIG. 1  is a functional block diagram illustrating the movement of funds through an exemplary account structure in an illustrative embodiment of the present invention. 
         FIG. 2  is a functional block diagram illustrating the process flow of an illustrative embodiment of the present invention. 
         FIG. 3  is a functional block diagram illustrating an exemplary financial network environment for an illustrative embodiment of the present invention. 
         FIG. 4  is a functional block diagram of a computer system illustrating an operating environment for illustrative embodiments of the program modules of the present invention. 
         FIG. 5  is an illustration of an exemplary Cash Card SM  of the present invention. 
         FIG. 6  is an illustration of an exemplary anonymous Cash Card SM  of the present invention. 
         FIG. 7  is a flow diagram illustrating an exemplary method for processing transactions associated with an anonymous Cash Card SM . 
         FIG. 8   a  and  FIG. 8   b  are, taken together, a functional block diagram illustrating a modified embodiment of a system for issuing negotiable instruments. 
         FIG. 9  illustrates a cash card for use in the system of  FIGS. 8   a  and  8   b.    
         FIG. 10   a  illustrates the front side of a negotiable instrument issued in the system of  FIGS. 8   a  and  8   b.    
         FIG. 10   b  illustrates the back side of a negotiable instrument issued in the system of  FIGS. 8   a  and  8   b.    
         FIG. 11   a  and  FIG. 11   b  are, taken together, a flow diagram illustrating an exemplary method for issuing negotiable instruments. 
     
    
    
     DETAILED DESCRIPTION 
     Members of the cash based society may avoid the above-described drawbacks associated with traditional banking relationships by conducting business with Licensed Money Transmitters. An example of a Licensed Money Transmitter is Western Union. A Licensed Money Transmitter is legally authorized to transmit funds, either by wire, facsimile, electronic transfer, courier or otherwise, within the United States or to or from locations outside the United States. A Licensed Money Transmitter may also be authorized to sell or issue checks, drafts, warrants, money orders, traveler&#39;s checks or other negotiable instruments. In some instances, a Licensed Money Transmitter may even be authorized to sell and/or exchange currency. Unlike traditional bank transactions, however, transactions handled by a Licensed Money Transmitter are not insured by the FDIC. 
     The present invention allows a Licensed Money Transmitter to accept from its consumers advance payments for negotiable instruments. By way of an online, non-interest bearing, non-FDIC insured transaction account, the Licensed Money Transmitter may provide payment instruments and money transmission services to its cash based consumers without the need for the qualifying/approval barriers, high costs, and intricate fee and reporting obstacles associated with a traditional banking relationship. The transaction account maintained by the Licensed Money Transmitter may be configured to accept deposits from a point of sale (POS) terminal at a retail establishment. In an exemplary embodiment, the transaction account may also be configured to indirectly accept direct deposits of funds, such as federal benefits checks and employee payroll checks. 
     The consumer may access his or her pre-paid negotiable instruments electronically via a POS terminal or an automated teller machine (ATM). Upon demand, a negotiable instrument, such as a money order, may be printed and cashed for the consumer at a POS terminal by an agent of the Licensed Money Transmitter. Negotiable instruments may be printed in odd/specific amounts so that the customer may receive cash in odd/specific denominations for the purpose of paying bills, etc. Alternatively, an ATM may dispense the requested cash to the consumer. 
     Since the transaction account maintained by the Licensed Money Transmitter is not built around the classic FDIC insured demand deposit account (DDA) structure, overall system costs, and ultimately consumer costs, are reduced. For example, because the funds deposited into the transaction account are considered as advance payments for negotiable instruments, no credit approvals are required. Also, because withdrawals from the transaction account are processed on-line and in real time, mechanisms may be provided for ensuring that there are no account overdrafts. Without overdrafts, there is no need to worry about fees attributable to an overdrawn account status. 
     By establishing a non-banking service that offers POS and ATM access to cash, the present invention allows cash based consumers to avoid visitations to bank branches that may not be conveniently located. Instead, the cash based consumer may hear about the services of the present invention and receive enrollment materials at the same locations at which they conduct other financial or retail transactions, or through direct advertising. Consumers may transfer funds directly from the service desk (via a POS terminal) of a preferred retailer at a time of day that is convenient for their lifestyles. Consumers may also be provided with “VRU” or “Voice 24×7” services so as not to be made dependent only on ATMs and agents operating POS terminals. 
     As mentioned above, an exemplary transaction account may also be configured to indirectly accept direct deposit transactions. The transaction account is not configured to directly accept direct deposit transactions due to the desire of the cash based consumer to avoid a traditional banking relationship. Various federal regulations, which are well known to those skilled in the art, require that certain direct deposit transactions involve FDIC insured bank accounts, and the like. For example, direct deposit of federal benefits checks may only be made into traditional FDIC insured bank accounts. 
     Similarly, banking industry requirements require that other types of direct deposit transactions involve a traditional bank account. By way of illustration, direct deposit of payroll checks are made through an automated clearinghouse (ACH) system, which uses routing and transit (R&amp;T) numbers and other data to effect the transfer of funds between accounts. R&amp;T numbers are assigned exclusively to FDIC insured banks. Therefore, in order to meet the cash based consumer&#39;s demand for non-banking services, the Licensed Money Transmitter may choose not to directly offer direct deposit capabilities that are subject to federal banking regulations and banking industry requirements. 
     The following description will hereinafter refer to the drawing, in which like numerals indicate like elements throughout the several figures. An exemplary flow of funds through an illustrative account system of the present invention is described with reference to the functional block diagram of  FIG. 1 . As shown, a transaction account  102  is established and maintained by a Licensed Money Transmitter or an agent thereof. The transaction account  102  may be thought of as a general account held in the name of the Licensed Money Transmitter. The general account may be divided into slub-accounts that are associated with individual consumers. Alternately, separate transaction  102  accounts may be established in the names of each individual consumer. 
     Due to various federal regulations and industry requirements, the transaction account  102  is not FDIC insured and is not authorized to accept funds that are transferred through the Automatic Clearinghouse (ACH) system of the federal reserve. The ACH is an electronic funds transfer system used by retail and commercial organizations. The ACH acts as a normal clearing house, receiving a transaction over the network and then splitting and routing the debit and credit portions of the transaction to the player&#39;s and the payee&#39;s banks. Without ACH access, the transaction account  102  is not authorized to accept direct deposits of federal benefits checks, payroll checks from employees, or the like. 
     Accordingly, an exemplary embodiment of the present invention contemplates that a Licensed Money Transmitter will establish a communication channel with a traditional FDIC insured financial institution, such as a bank, in order to service direct deposit customers. The bank will maintain an FDIC insured bank account  104 , which may either be held in the name of the Licensed Money Transmitter or in the name of an individual consumer. The bank account  104  is capable of accepting federal benefit direct deposits  106  and payroll direct deposits  108 , as well as any other type of federally regulated or banking industry standardized transfer of funds. The communication channel between the Licensed Money Transmitter and the bank may allow the Licensed Money Transmitter to monitor the bank account  104  for incoming direct deposit transactions. 
     In an exemplary embodiment of the present invention, incoming direct deposit transactions are “swept” from the bank account  104  into the transaction account  102 . In other words, funds that are deposited in the bank account  104  are instantly transferred into the transaction account  102 . The instant transfer of funds avoids capitalization of the bank, i.e., no interest on the funds is accumulated. Accordingly, the communication channel between the Licensed Money Transmitter and the bank allows customers of the Licensed Money Transmitter to take advantage of direct deposit mechanisms, without themselves having to become customers of a bank. In addition, non-direct deposit funds may be deposited into the transaction account  102  via a POS terminal  102  or via any other bank  114  or financial institution. 
     Funds that are held in the transaction account  102  may be dispersed to the customer through a POS terminal  112  operated by an agent of the Licensed Money Transmitter, or through a traditional ATM  116 . POS terminals  112  and ATMs  116  allow a consumer to conduct a transaction from remote locations. ATMs comprise computer terminals that may be configured for remote access, directly or indirectly through switching networks, to a financial account of the consumer, such as a bank account  104  or a transaction account  102 . Similarly, POS devices  112  comprise computer terminals located at a merchant&#39;s place of business which allow access to a consumer&#39;s account information stored in a computer within a network of financial institutions, to permit the transfer of funds from the consumer&#39;s account to the merchant&#39;s account. 
       FIG. 2  illustrates the process flow of an account sweep control module  210 , which may be implemented through one or more software program modules. The account sweep control module  210  facilitates communications between a bank computer system  212  and a Licensed Money Transmitter (LMT) computer system  214 . In particular, the account sweep control module  210  facilitates the transfer of funds between a bank account  104  accessible by the bank computer system  212  and a transaction account  102  accessible by the Licensed Money Transmitter computer system  214 . The account sweep control module  210  may be implemented as a component of the Licensed Money Transmitter computer system  214 , as a component of the bank computer system  212 , or as a component of a distinct computer system. The account sweep control module  210  is configured to monitor the bank account  104  in order to detect the posting of a credit to the bank account  104 . As shown in step  201 , an exemplary embodiment of the account sweep control module  210  receives a notification from the bank computer  212  whenever a credit is posted to the bank account  104 . Methods of configuring the software and hardware of the bank computer system  212  to send a notification to the account sweep control module  210  upon the posting of a credit to the bank account  104  will be apparent to those skilled in the art. 
     When a notification of a posted credit is received, the exemplary account sweep control module  210  communicates with the bank computer  212  at step  202  in order to post a debit to the bank account  104 . In the ideal situation, the credit of funds exists in the bank account  104  for a period of time that is on the order of a fraction of a second prior to the posting of the debit. The credit of funds posted to the bank account  104  may be in any “amount X.” The subsequent debit posted by the account sweep control module  210  to the bank account  104  is in the total “amount X.” Accordingly, the bank account  104  is “zeroed out” and, except for a fraction of a second or so, maintains a balance of zero. The debit is posted to the bank account  104  instantly so as to avoid capitalization of the bank. 
     At step  203 , the exemplary account sweep control module  210  communicates with the Licensed Money Transmitter computer system  214  in order to post a credit of the total “amount X” into the transaction account  102 . The transaction account  102  is a holding or escrow account that is used to store the funds of the consumer. The transaction account  102  does not accrue interest and does not function as a traditional bank account. The funds in the transaction account  102  may represent prepaid negotiable instruments that may be issued to the consumer via a POS terminal  112  operated by an agent of the Licensed Money Transmitter. 
     When a consumer requests the issuance of a prepaid negotiable instrument, a request for authorization to issue the negotiable instrument may be transmitted from a POS terminal  112  to a transaction control module  211 . A transaction control module may be implemented through one or more software program modules. The transaction control module  211  may be implemented as a component of the Licensed Money Transmitter computer system  214 , or as a component of a distinct computer system. A transaction control module  211  is configured to interact with the transaction account  102  and POS terminals  112  in order to manage transactions. By way of illustration, a POS terminal  112  may request authorization to issue a negotiable instrument of amount “Y,” as shown in step  204 . The transaction control module  211  accepts the request for authorization and communicates at step  205  with the Licensed Money Transmitter computer system  214  in order to verify that the balance of the transaction account  102  equals or exceeds the requested amount “Y” plus any transaction fees charged by the Licensed Money Transmitter. The transaction control module  211  may also be responsible for verifying that the customer requesting the negotiable instrument is in fact authorized to receive the negotiable instrument. For example, the customer may be required to provide a personal identification number (PIN) and an account code, which may be transmitted from the POS terminal  112  to the transaction control module  211 . The transaction control module  211  may communicate with a database (not shown) hosted by the Licensed Money Transmitter computer system  214  in order to determine whether the PIN and account code provided by the customer are authentic. Additional details regarding security features of the illustrative embodiments of the present invention will be described below. 
     If the balance in the transaction account  102  equals or exceeds the requested amount “Y” plus any transaction fees, the transaction control module  211  transmits to the POS terminal  112  an authorization to issue the requested negotiable instrument, as shown in step  206 . However, if the balance in the transaction account  102  is less than the requested amount “Y” plus any transaction fees, the transaction control module  211  will not authorize the issuance of the requested negotiable instrument. As mentioned, the funds held in the transaction account  102  are considered to represent prepaid negotiable instruments. Therefore, the transaction account  102  will not be debited in any amount that exceeds the prepaid value of the negotiable instruments plus any transaction fees. Transaction fees may be charged at the time of the transaction so as to avoid the situation where the transaction account  102  is depleted and the customer owes a debt to the Licensed Money Transmitter. Ensuring that the transaction account  102  is never overdrawn avoiding the need to charge additional service fees associated with an overdraw account status. 
     After receiving authorization to issue the requested negotiable instrument, the agent of the Licensed Money Transmitter operating the POS terminal  112  prints and cashes the negotiable instrument in the amount “Y” plus any transaction fees. The agent may then retain any transaction fees and provide the remainder of the cash to the consumer. At step  207 , the POS terminal  112  notifies the transaction control module  211  that the negotiable instrument has been issued. Then, at step  208  the transaction control module  211  communicated with the Licensed Money Transmitter computer system  214  in order to post a debit in the amount “Y” plus any transaction fees to the transaction account  102 . 
     The exemplary embodiments described with respect to  FIG. 1  and  FIG. 2  include a two account structure (i.e., a bank account  104  and a transaction account  102 ) and an account sweep control module  210 . It will be appreciated to those of ordinary skill in the art that the two account structure and the account sweep control module  210  are not necessary in situations where there is no desire to indirectly provide direct deposit capabilities. Various features and aspects of the present invention may be implemented in systems that do not require such direct deposit capabilities. In addition, it should be appreciated that the functionality of the account sweep control module  210  and the transaction control module  211  has been provided by way of example only. Additional functions may be performed by either module without limitation of the scope of the present invention. 
       FIG. 3  is an overview of an exemplary Licensed Money Transmitter network environment  300  that may host a system in accordance with the illustrative embodiments of the present invention. A POS terminal  112  communicates with a Tandem computer system  302  via a network  303 . The Tandem computer system  302  may be in communication with, or may comprise a part of, the Licensed Money Transmitter computer system  214 . Although the functionality of a “Tandem” brand computer system is a well-known in the art, as used herein a Tandem computer system  302  may refer to any generic network server system. A POS terminal  112  generally includes a printer  304  and a control terminal  306 . The control terminal  306  typically comprises a keypad, a display, a modem, a memory, and a processor. The control terminal  306  may, communicate print commands to the printer  304  via, for example, an RS-232 link or other suitable communications link. The control terminal  306  manages negotiable instrument transactions and stores data in a memory. 
     A profile database management system  312  may be provided for management of the POS terminals  112 . In manners well known in the art, software updates and other data may be downloaded from the profile database management system  312  to a POS terminal  112 . Such software updates and other data may be generated and stored in the profile database management system  312  by a Licensed Money Transmitter support personnel system  310 . The Licensed Money Transmitter support personnel system  310  may include personal computers  310   a  operated by support personnel end telephones  310   b  manned by support personnel or linked to VRU systems. The Licensed Memory Transmitter support personnel system  310  may be coupled to the profile database management system  312  via a local area network (LAN) or other private communications link. The Licensed Money Transmitter support personnel system  310  may also be linked to the network  303 , so as to be accessible to customers via telephone systems. 
     At predetermined times, the control terminal  306  of the POS terminal  112  transmits its data to the Tandem computer system  302  via the network  303 . The Tandem computer system  302  creates a batch file comprising data received from many POS terminals  112 . The Tandem computer system  302  typically forwards batch files to the appropriate component of the Licensed Money Transmitter computer system  214  at predetermined times. For security purposes, the Tandem computer system  302  may transmit a batch file to the Licensed Money Transmitter computer system  214  via a private network or other private communications link. 
     The Licensed Money Transmitter computer system  214  is configured for, among other things, accessing the transaction account  102  maintained by the Licensed Money Transmitter. The transaction account  102  may be physically stored in a memory device in communication with the Licensed Money Transmitter computer system  214 . The Licensed Money Transmitter computer system  214  may also host a database  316  of account codes, PINs, and other customer/account information. Such customer/account information may be used for security purposes and to monitor the nature and frequent of transactions performed by each customer. 
     The Licensed Money Transmitter computer system  214  may also comprise or be in communication with the account sweep control module  210 . The account sweep control module  210  is in turn in communication with the bank computer system  212 . The bank computer system  212  is configured for, among other things, accessing the bank account  104 , which may physically be stored in a memory device in communication with the bank computer system  212 . 
     The Tandem computer system  302  may be in communication with the transaction control module  211 . Thus, communications to and from the POS terminal  112  may be routed from and to the transaction control module  211  via the Tandem computer system  302 . As mentioned, the transaction control module  211  is configured to manage transactions involving deposits into and withdraws from the transaction account  102 . Although shown as being a distinct network component, those skilled in the art should appreciate that the transaction control module  211  may alternately be implemented as a component of either the Tandem computer system  302  or the Licensed Money Transmitter computer system  214 . 
       FIG. 4  and the following discussion are intended to provide a brief and general description of a suitable computing environment for implementing various aspects of the present invention embodied in software program modules, namely the exemplary account sweep control module  210  and the exemplary transaction control module  211 . Although the system shown in  FIG. 4  is a conventional computer  400 , those skilled in the art will recognize that the invention also may be implemented using other types of computer system configurations. The computer  400  includes a central processing unit  422 , a system memory  420 , and an Input/Output (“I/O”) bus  426 . A system bus  421  couples the central processing unit  422  to the system memory  420 . A bus controller  423  controls the flow of data on the I/O bus  426  and between the central processing unit  422  and a variety of internal and external I/O devices. The I/O devices connected to the I/O bus  426  may have direct access to the system memory  420  using a Direct Memory Access (“DMA”) controller  424 . 
     The I/O devices are connected to the I/O bus  426  via a set of device interfaces. The device interfaces may include both hardware components and software components. For instance, a hard disk drive  420  and a floppy disk drive  432  for reading or writing removable media  450  may be connected to the I/O bus  426  through a disk drive controller  440 . An optical disk drive  434  for reading or writing optical media  452  may be connected to the I/O bus  426  using a Small Computer System Interface (“SCSI”)  441 . The drives and their associated computer-readable media provide nonvolatile storage for the computer  400 . In addition to the computer-readable media described above, other types of computer-readable media may also be used, such as ZIP drives or the like. 
     A display device  453 , such as a monitor, is connected to the I/O bus  426  via another interface, such as a video adapter  442 . A parallel interface  443  connects synchronous peripheral devices, such as a laser printer  456 , to the I/O bus  426 . A serial interface  444  connects communication devices to the I/O bus  426 . A user may enter commands and information into the computer  400  via the serial interface  444  using an input device, such as a keyboard  438 , a mouse  436  or a modem  457 . Other peripheral devices (not shown) may also be connected to the computer  400 , such as audio input/output devices or image capture devices. 
     A number of software program modules may be stored on the drives and in the system memory  420 . The system memory  420  can include both Random Access Memory (“RAM”) and Read Only Memory (“ROM”). The software program modules control the manner in which the computer  400  functions and interacts with the user, with I/O devices or with other computers. Software program modules include routines, operating systems  465 , application programs, data structures, and other software or firmware components. In an exemplary embodiment, the present invention may include one or more account sweep control modules  210  and one or more transaction control modules  211 . The one or more account sweep control modules  210  may comprise computer executable instructions for facilitating communications between a bank computer system  212  and a Licensed Money Transmitter computer system  214 . The one or more account sweep control modules  210  may further comprise computer executable instructions for monitoring credits posted to a bank account  104 , posting debits to the bank account  104  and posting credits to the transaction account  102 , as previously described. The one or more transaction control modules  211  may comprise computer executable instructions for facilitating communications between a POS terminal  112  or an ATM  116  and a Licensed Money Transmitter computer system  214 , as previously described. 
     Many or most of the software-controlled operations performed by the exemplary software program modules of the present invention are conventional and well-known in the industry. For example, it is conventional and well known to communicate standard ATM and POS messages between a computer system and an ATM network using conventional off-the-shelf ATM and POS software. In an exemplary embodiment, the computer  400  also includes such conventional software to generate and communicate appropriate messages. Conventional software packages also exist which perform a variety of exceeding complex but entirely conventional functions (e.g., maintaining audit trails to ensure transaction reliability, maintaining user account and vender files, provide clearing information, etc.). Such conventional software program modules may also be executed by the computer  400  in an exemplary embodiment. Conventional database management systems may also be executed by the computer  400  for maintaining customer/account information. 
     The computer  400  may operate in a networked environment using logical connections to one or more remote computers, such as remote computer  460 . The remote computer  460  may be a server, a router, a peer device or other common network node, and typically includes many or all of the elements described in connection with the computer  400 . In a networked environment, program modules and data may be stored on the remote computer  460 . The logical connections depicted in  FIG. 4  include a local area network (“LAN”)  454  and a wide area network (“WAN”)  455 . In a LAN environment, a network interface  445 , such as Ethernet adapter card, can be used to connect the computer  400  to the remote computer  460 . In a WAN environment, the computer  400  may use a telecommunications device, such as a modem  457 , to establish a connection. It will be appreciated that the network connections shown are exemplary and other means of establishing a communications link between the computers may be used. 
     Aspects of the present invention may be implemented by way of any account identifying mechanism, such as a plastic card issued to a particular consumer. As shown in  FIG. 5 , in an exemplary embodiment a consumer is provided with a Cash Card SM   500  that includes identifying information on the front and an encoded magnetic strip on the reverse. Identifying information may include an account identification code  502  and a customer name and number  504 . The identifying information may be used to associate a transaction account  102  or a sub-account thereof with the particular consumer. 
     From the consumer&#39;s point of view, funds may be loaded onto and off-loaded from the Cash Card  500  at any time. Thus, the Cash Card  500  eliminates the cash based consumer&#39;s need to carry large amounts of cash on his or her person. As previously described, the consumer may authorize the deposit of funds into a transaction account  102  associated with the Cash Card  500  in various ways, such as through direct deposit transactions, POS transactions, ATM transactions, etc. Subsequently, upon presentation of a Cash Card  500  or other account identifier and a personal identification number (PIN), the consumer may access the funds that are stored in his or her name in the transaction account  102 . 
     To request a withdrawal of funds from the transaction account  102 , a consumer may present the Cash Card  500  to an agent of the Licensed Money Transmitter operating a POS terminal  112 . Alternately, the Cash Card may be presented at an ATM  116 . The account identification code  502  may be read by the agent or an automated reader from the front of the Cash Card  500  or from the encoded magnetic strip on the reverse of the Cash Card  500 . The account identification code  502 , a PIN obtained from the consumer, and other data, such as a requested amount of funds, are transmitted to the transaction control module  211  as a request for issuance of a negotiable instrument. As described previously, the transaction control module  211  interacts with the Licensed Money Transmitter computer system  214  in order to effect an electronic transfer of funds from the transaction account  102  to the POS terminal  112  or the ATM  116  that generated the request for funds. In a similar fashion, the Cash Card  500  may be presented to an agent at a POS terminal  112 , an ATM  116 , or a teller at a bank  114  in order to conduct a transaction for the deposit of funds into the transaction account  102 . 
     Accordingly, in one embodiment of the present invention, a Cash Card  500  is issued in the name of a particular consumer upon that customer&#39;s enrollment as a customer of the Licensed Money Transmitter. Enrollment may entail the provision of certain customer information, such as name, address, phone number, social security number, etc. For liability and/or security purposes, the Licensed Money Transmitter may require some or all of the above-listed customer information prior to providing a consumer with full privileges for depositing and withdrawing funds into and out of the transaction account  102 . 
     As shown in  FIG. 6 , an alternate embodiment of the present invention involves the issuance of an anonymous Cash Card  600 . An anonymous Cash Card  600  includes an account identification code  602  and an anonymous customer indicator  604 . An anonymous Cash Card  600  may be associated with an anonymous transaction account or an anonymous sub-account within the transaction account  102 . The anonymous account is identified only by an account code and a PIN that is provided to the consumer of the anonymous Cash Card  600 . The anonymous Cash Card  600  may be a one-load Cash Card, meaning that funds may be deposited into the associated anonymous transaction account only one time. Once the initially loaded funds are depleted from the anonymous transaction account, the anonymous Cash Card  600  is no longer valid (unless it is converted to a “regular” Cash Card  500 , as will be described below). 
     An anonymous Cash Card  600  may be sold or otherwise provided to a consumer, who may then request that a particular amount of funds be loaded onto the anonymous Cash Card  600 . The consumer of the anonymous Cash Card  600  is provided with a PIN, which may be used to authorize loading of the anonymous Cash Card  600 . Funds to be loaded onto the anonymous Cash Card  600  are collected by, for example, an agent of the Licensed Money Transmitter. A credit in the amount of the collected funds is then posted to the anonymous transaction account in the manner previously described. In accordance with one embodiment of the present invention, an anonymous Cash Card  600  may be loaded by the consumer only at a POS terminal  112 . Given the anonymous nature of anonymous Cash Card  600  transactions, no direct deposit capabilities are provided. 
     The funds to be loaded onto the anonymous Cash Card  600  may be limited to specific or incremental dollar amounts. For example, it may be a policy of the Licensed Money Transmitter that no anonymous Cash Card  600  may be loaded with more than a predetermined value. Alternately, an anonymous Cash Card  600  having a first load limit may be sold to consumers for a first price, while an anonymous Cash Card  600  having a second load limit may be sold to consumers for a second price, etc. In another embodiment, an anonymous Cash Card  600  may be pre-loaded with a particular amount of funds. In this manner, the Licensed Money Transmitter may store funds of a predetermined amount in the anonymous transaction account associated with the anonymous Cash Card  600 . Then, the pre-loaded anonymous Cash Card  600  may be sold to a consumer for a price equal to the predetermined amount plus any additional service fees. 
     As mentioned, an anonymous Cash Card  600  may expire upon depletion of the initially loaded funds. An expired anonymous Cash Card  600  may no longer be used by the consumer to deposit funds into or withdraw funds from a transaction account  102 . However, the present invention contemplates that an anonymous Cash Card  600  may be converted into a “regular” Cash Card  500  that carries full reload and access privileges, including direct deposit capabilities. Conversion from an anonymous Cash Card  600  to a regular Cash Card  500  requires that the consumer enroll as a customer of the Licensed Money Transmitter. As mentioned above, enrollment entails providing certain customer and account specific information. Enrollment may be performed over the telephone, via the mail, or through any other suitable communications medium. When the consumer has successfully enrolled as a customer, the Licensed Money Transmitter may provide the customer with a new Cash Card  500  and PIN. As is well known in the art, the customer may choose the PIN to be associated with his or her transaction account  102 . Alternately, although less desirably, the newly-enrolled customer may continue to use the original anonymous Cash Card  600  and the associated PIN as if it were a regular Cash Card  500 . 
       FIG. 7  is a flow chart illustrating an exemplary method for processing transactions associated with an anonymous Cash Card  600 . From starting block  701 , the method advances to step  702  where an anonymous sub-account is established within the transaction account  102 . The anonymous sub-account is identified only by an account code and is not associated with any consumer identifying information. At step  704 , the anonymous Cash Card  600  is sold to a consumer. Along with the anonymous Cash Card, the consumer is also provided a PIN that authorizes access to the anonymous sub-account. 
     The consumer may then request an initial load of the anonymous Cash Card  600  by presenting the anonymous Cash Card  600 , PIN, and funds to an agent of the Licensed Money Transmitter. At step  706 , a credit in the amount of the consumer&#39;s initial funds deposit is posted to the anonymous sub-account associated with the anonymous Cash Card  600 . Once funds are loaded onto the anonymous Cash Card  600 , the method proceeds to step  708 , where withdrawals may be made until the initial funds have been depleted. At step  710  a determination is made as to whether the consumer has enrolled as a customer of the Licensed Money Transmitter. If the consumer has not enrolled, the method proceeds to step  712  where the anonymous sub-account is closed and the anonymous Cash Card  600  is considered to be expired. 
     However, if the consumer has enrolled as a customer of the Licensed Money transmitter, the method proceeds to step  714 , where the anonymous sub-account is converted into a non-anonymous sub-account associated with customer identifying information. Then at step  716 , the non-anonymous sub-account is authorized to receive additional deposits from the customer. At step  718 , the customer may be provided with a new non-anonymous Cash Card  500  that is issued in the customer&#39;s name and has customer/account information encoded on a magnetic strip or other data storage mechanism. The method ends at step  719 . 
     From a reading of the description above pertaining to the disclosed embodiments of the present invention, modifications and variations thereof may become apparent to those skilled in the art. Other alternatives and variations may also become apparent to those of ordinary skill in the art upon a close examination of this specification in view of the drawings. It should be appreciated that many features and aspects of the present invention were described above by way of example only and are therefore not intended to be interpreted as required or essential elements of the invention. Any elements of the invention that are required or essential would have been explicitly indicated to be so, for example by describing that the element “must” be included. Therefore, the scope of the present invention is to be limited only by the following appended claims. 
     Modified Embodiment Cash Card™ System and Method for Issuing Negotiable Instruments 
     A modified embodiment system for issuing negotiable instruments without PIN or signature input is shown in  FIGS. 8   a  and  8   b.  The system is generally designated by the reference numeral  802 . The system  802  optionally includes a regulated banking environment  804  in which certain regulated activities occur and further includes an unregulated, non-banking environment  806  as described above. 
     The optional banking environment  804  can include a bank account  104  (optionally FDIC insured) for receiving direct deposit of federal benefits checks  106  and direct deposit of payroll checks  108  as described above. An account sweep feature  808 , also as described above, can transfer funds automatically and essentially instantaneously from the bank account  104  to the transaction account  102  maintained with a transaction account institution, such as a Licensed Money Transmitter (LMT). The transaction account  102  includes multiple sub-accounts  810  each adapted for association with an entity, such as a customer or consumer (individual, corporate, institutional, etc.), comprising a sub-account holder  812 . Although the transaction account  102  has been described in connection with an LMT, other financial institutions would be suitable for maintaining same. Still further, the sub-account holders  812  can transact directly with the transaction account institution  102 , thus bypassing the agent  112 . 
     In an exemplary configuration of the system  802 , the transaction account institution  102  creates sub-accounts  810  in anticipation of their sales by the POS terminal agents  112 . The sub-accounts  810  can be assigned sub-account numbers  811  and, optionally, PINs in advance of their purchase by sub-account holders  812 . The term sub-account is used herein to denote accounts which collectively comprise parts of a main account maintained by the transaction account institution  102 . However, the terms “account” and “sub-account” are to be construed broadly and interchangeably to encompass all types of financial accounts. 
     The sub-account holder  812  interacts with the transaction account institution  102  primarily through an agent with a point-of-sale (POS) terminal  112 . The POS terminal  112  includes a control terminal  814  linked to a card reader  816  and a printer  818 . As indicted by the arrow  820 , funds are transferred back and forth between the transaction account institution  102  and the POS terminal (agent)  112 . Such transfer reflect deposits to and withdrawals (i.e., the issuance of negotiable instruments  824 ) from the sub-account  810  by its holder  812 . 
     The POS terminal agents  112  are authorized by the transaction account institution  102  to open and activate sub-accounts  810  and to sell cash cards  822  to sub-account holders  812 . Each sub-account holder  812  is issued a Cash Card™  822  similar to those described above. Preferably the sub-account holder&#39;s name is recorded with the sub-account number  811  in the data records maintained by the transaction account institution  102 . The Cash Card™  822  can include a magnetic strip  836  for recording the account number and an optional identifier, such as a PIN, for the sub-account holder  812 . 
     The sub-account holder  812  can obtain negotiable instruments  824  from the POS terminal  112  by swiping the Cash Card™  822  in the card reader  816  whereupon the control terminal  814  outputs a negotiable instrument  824  via the printer  818  and posts the appropriate debit entries to the sub-account  818  with the transaction account institution  102 . The negotiable instrument  824  can comprise any suitable negotiable instrument, such as a check, draft, warrant, money order, traveler&#39;s check, etc. Preferably the negotiable instrument  824  is made payable to the sub-account holder  812 . 
     The negotiable instrument  824 , made payable to the sub-account holder  812 , can be cashed at a negotiable instrument cashing institution  838 . Security is provided by making the negotiable instrument  824  payable only to the sub-account holder  812 , who can be required to present identification  840  to the cashing institution  838 . Moreover, the sub-account holder  812  can be required to endorse the negotiable instrument  824 . Still further, the negotiable instrument  824  can optionally include a restrictive legend  842  printed thereon requiring identification  840 , endorsement  841  and setting an upper limit  829  for its face value. The cashing institution  838  presents the negotiable instrument  824  to the transaction account institution (LMT)  102 , which has already debited the sub-account  810  and makes the necessary funds transfer to the cashing institution  838  as indicated by the arrow at  834 . 
     The ATM  116  ( FIG. 8   b ) represents an optional source of negotiable instruments  824 . The Cash Card™  822  is read by a card reader  846  whereupon the ATM printer  844  prints a negotiable instrument  824 . Funds are transferred from the transaction account institution (LMT)  102  to the ATM  116  by the arrow indicated at  848 . 
       FIGS. 11   a  and  11   b  show an exemplary method for issuing negotiable instruments  824 . The method starts at  852  and proceeds to an open sub-account step at  854 . An account number is assigned at  856 . A PIN decision at  858  results in a PIN being assigned at  860  if affirmative. Otherwise, the method proceeds to step  862  whereat the Cash Card™ is sold. Thereafter the sub-account is activated at  864  and the sub-account is associated with the card buyer/sub-account holder at  866 , preferably by name. Funds are deposited at  868 . If deposited to a bank account (affirmative branch from  870 ), they are credited thereto at  872  and the funds are swept to a transaction account at  847  as described above. Thereafter, or initially if the funds are deposited directly to the transaction account (negative branch from  870 ), the transaction sub-account is credited at  876 . 
     The sub-account holder  812  requests a negotiable instrument at  878  by swiping the Cash Card™  822  in the card reader  816  at the POS terminal  112  at step  880 , which queries the sub-account records at  822  for a sufficient balance determination at  884 . If negative, the method proceeds to the reload card decision at  886 . If affirmative, the sub-account is debited in the amount of the negotiable instrument plus transaction fees at  888 , the negotiable instrument is issued at  890  for presentation by the sub-account holder to a negotiable instrument cashing institution at  892 . The negotiable instrument is endorsed at  894  and the sub-account holder produces identification at  896  whereby the sub-account holder&#39;s identification is verified at  898 . Cash is deposited at  900  and the agent cashes the negotiable instrument at  902  and deposits same for clearing and payment at  904 . The method then proceeds to a reload card decision at  886 . If negative, the method ends at  904 . If affirmative, the method returns to step  876  whereat funds are credited to the sub-account  810  at the transaction account institution  102 . If negative, the method proceeds to end block  906 . 
     From a reading of the description above pertaining to the disclosed embodiments of the present invention, modifications and variations thereto may become apparent to those skilled in the art. Other alternative and variations may also become apparent to those of ordinary skill in the art upon a close examination of this specification in view of the drawings. It should be appreciated that many features and aspects of the present invention were described above by way of example only and are therefore not intended to be interpreted as required or essential elements of the invention. Any elements of the invention that are required or essential would have been explicitly indicated to be so, for example by describing that the element “must” be included. Therefore, the scope of the present invention is to be limited only by the following appended claims.