Patent Publication Number: US-2002002545-A1

Title: Electronic money transaction device and method

Description:
[0001] This application is based on and claims the benefit of U.S. Provisional patent application Ser. No. 60/215,181, filed Jun. 29, 2000, the entire disclosure of which is incorporated herein by reference. 
    
    
     
       BACKGROUND OF THE INVENTION  
       [0002] This invention relates to methods, systems, and devices for performing transactions via a communications network such as the Internet. More particularly, the invention facilitates transactions between parties using an anonymous account to preserve the anonymity of one of the parties.  
       [0003] As a result of the increasing role of the Internet in our lives in this modern, post-industrial, information era, there has been increasing concern by growing segments of the society regarding how widely personal information is disseminated. This trend appears to be accelerating. For instance, when one uses personal credit card for purchases via the Internet, the information may be collected by marketing analysts and data miners to create a personal profile of the user. Those who desire to preserve the quality or state of being unknown or unacknowledged choose to keep their purchases local to preserve their anonymity. Concerns about privacy have led many to refrain from engaging in transactions over the Internet.  
       [0004] A truly anonymous purchase is one in which the purchaser and seller are unknown to each other, the purchase process is not witnessed by any other person, and the exchange medium is cash. Such transactions are not the norm. Even cash transactions in a place of business is typically witnessed by salespersons and other customers or bystanders, if not recorded on videotape as a routine security measure. On the other hand, common transaction media such as payment by personal check or credit card represent a clear loss of anonymity, since the purchaser&#39;s identity as well as other personal information is attached to the transaction (e.g., driver&#39;s license number, address, telephone number, and any information attached to the name, credit card, or driver&#39;s license number). Thus, although a cash transaction is not a truly anonymous purchase, it provides a considerably higher degree of purchase anonymity than a transaction involving a personal check or credit card, and affords perhaps the highest degree of purchase anonymity achievable in the present. The use of cash, however, has limitations, especially in the context of electronic commerce.  
       SUMMARY OF THE INVENTION  
       [0005] Embodiments of the present invention are directed to methods, systems, and devices for performing transactions via a communications network such as the Internet while preserving the anonymity of at least one of the parties. A transaction device is linked to an anonymous account to allow a party to preserve an equivalent level of anonymity as the use of cash when making a transaction at a traditional brick-and-mortar business as well as in the virtual world of electronic commerce. As such, the transaction device may be considered equivalent to a flexible and versatile cash wallet. In this way, the present invention combines the desirable features of cash (anonymity, security, and acceptance) and of electronic commerce (speed, ease, and convenience).  
       [0006] An aspect of the present invention is directed to a method of facilitating transaction between a first party and a second party using an anonymous account. The method comprises receiving anonymous account access information from a portable transaction device having at least one storage medium containing the anonymous account access information for accessing an anonymous account. The anonymous account access information on the at least one storage medium is readable by at least one of an optical data reader, a magnetic data reader, and an electronic data reader. The method further comprises transmitting the anonymous account access information on the at least one storage medium of the portable transaction device, via a communications network, to access the anonymous account and to transfer funds between the anonymous account and an account of the second party. The anonymous account is held by a third party not directly associated with the first party and the first party&#39;s personal accounts.  
       [0007] In some embodiments, the at least one storage medium comprises one or more of a CD-ROM, a magnetic strip, and a bar code, each containing the anonymous account access information. The method may include transmitting an identification code to authenticate the transfer of funds between the anonymous account and the account of the second party. The second party may be a point-of-sale merchant and the anonymous account access information is read by a reader at the point of sale. The second party may be an online merchant and the anonymous account access information is read by an electronic data reader of a computer. The second party may be a holder of the first party&#39;s personal account. Transmitting the anonymous account access information may comprise transferring encrypted data via the communications network.  
       [0008] In some embodiments, the method includes providing anonymous address information to the second party for sending an item to an address associated with the anonymous address information. The anonymous address information includes a carrier name of a carrier and an anonymous address identification code. The carrier is provided with the anonymous address identification code and the address associated therewith.  
       [0009] Another aspect of the invention is directed to a method of preserving anonymity of a first party in a transaction with a second party. The method comprises receiving anonymous account access information from a portable transaction device having at least one storage medium containing the anonymous account access information for accessing an anonymous account. The method further comprises transmitting the anonymous account access information on the at least one storage medium of the portable transaction device, via a communications network, to access the anonymous account and to transfer funds between the anonymous account and the second party. The anonymous account is held by a third party not directly associated with the first party and the first party&#39;s personal accounts. Anonymous address information is provided to the second party for sending an item to an address associated with the anonymous address information.  
       [0010] In some embodiments, the anonymous address information includes a carrier name of a carrier and an anonymous address identification code. The carrier may have the anonymous address identification code and the address associated therewith. The anonymous address identification code may be contained in a bar code provided on an anonymous address label to be affixed to the item to be sent. The method may include providing the carrier with the anonymous address identification code and the address associated therewith. The anonymous address information may include a parcel identification number associated with the item to be sent.  
       [0011] Another aspect of the present invention is directed to a method of facilitating transaction between a first party and a second party using an anonymous account. The method comprises receiving, via a communications network, anonymous account access information from a portable transaction device having at least one storage medium containing the anonymous account access information for accessing an anonymous account. The anonymous account access information on the at least one storage medium is readable by at least one of an optical data reader, a magnetic data reader, and an electronic data reader. The method further comprises accessing the anonymous account, based on the anonymous account access information on the at least one storage medium of the portable transaction device, to transfer funds between the anonymous account and an account of the second party. The anonymous account is held by a third party not directly associated with the first party and the first party&#39;s personal accounts.  
       [0012] Another aspect of the invention is directed to a data processing system for facilitating transaction between a first party and a second party while preserving anonymity of the first party. The system comprises a processor and a memory coupled to the processor. The memory is configured to store a plurality of code modules for execution by the processor. The plurality of code modules comprise a first code module for receiving anonymous account access information from a portable transaction device having at least one storage medium containing the anonymous account access information for accessing an anonymous account. The anonymous account access information on the at least one storage medium is readable by at least one of an optical data reader, a magnetic data reader, and an electronic data reader. A second code module is provided for transmitting the anonymous account access information on the at least one storage medium of the portable transaction device, via a communications network, to access the anonymous account and to transfer funds between the anonymous account and an account of the second party. The anonymous account is held by a third party not directly associated with the first party and the first party&#39;s personal accounts.  
       [0013] In some embodiments, a third code module is provided for transmitting an identification code to authenticate the transfer of funds between the anonymous account and the second party. A fourth code module is provided for providing anonymous address information to the second party for sending an item to an address associated with the anonymous address information. A fifth code module is provided for providing a carrier with the anonymous address identification code and the address associated therewith.  
       [0014] Another aspect of the present invention is directed to a computer program product stored on a computer-readable storage medium for facilitating transaction between a first party and a second party while preserving anonymity of the first party. The computer program product comprises code for receiving anonymous account access information from a portable transaction device having at least one storage medium containing the anonymous account access information for accessing an anonymous account. The anonymous account access information on the at least one storage medium is readable by at least one of an optical data reader, a magnetic data reader, and an electronic data reader. Code is provided for transmitting the anonymous account access information on the at least one storage medium of the portable transaction device, via a communications network, to access the anonymous account and to transfer funds between the anonymous account and an account of the second party. The anonymous account is held by a third party not directly associated with the first party and the first party&#39;s personal accounts.  
       [0015] In some embodiments, the computer program product further comprises code for transmitting an identification code to authenticate the transfer of funds between the anonymous account and the second party. The product may include code for providing anonymous address information to the second party for sending an item to an address associated with the anonymous address information. The product may include code for providing a carrier with the anonymous address identification code and the address associated therewith.  
       [0016] In accordance with another aspect of the present invention, a system for facilitating transaction between a first party and a second party while preserving anonymity of the first party comprises a communications network. A merchant system is coupled to the communications network and configured to provide access to a merchant account. An anonymous account holding institution system is coupled to the communications network and configured to provide access to an anonymous account. A user system is coupled to the communications network and configured to communicate anonymous account access information to the anonymous account holding institution system to access the anonymous account and transfer funds between the anonymous account and the merchant account. The anonymous account is held by a third party not directly associated with a user providing the anonymous account access information.  
       [0017] In some embodiments, the user system is configured to communicate an identification code to authenticate the transfer of funds between the anonymous account and the merchant account. The user system is configured to communicate anonymous address information to the merchant system for sending an item to an address associated with the anonymous address information. A shipping carrier system is coupled to the communications network and configured to receive from the user system the anonymous address information and the address associated therewith. The user system and the merchant system may be comprised of a single point-of-sale system provided by a point-of-sale merchant. 
     
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
     [0018]FIG. 1 is an elevational view of a transaction device in accordance with an embodiment of the present invention;  
     [0019]FIG. 2 is a schematic diagram depicting a system for utilizing the transaction device for anonymous transactions according to an embodiment of the invention;  
     [0020]FIG. 3 is a flow diagram illustrating initial purchase and funding of the transaction device according to an embodiment of the invention;  
     [0021]FIG. 4 is a flow diagram illustrating the use of the transaction device for in-store purchase according to an embodiment of the invention;  
     [0022]FIG. 5 is a flow diagram illustrating the use of the transaction device for online purchase according to an embodiment of the invention;  
     [0023]FIG. 6 is a flow diagram illustrating anonymous and non-anonymous mailing instructions for shipping merchandise associated with the online purchase according to an embodiment of the invention; and  
     [0024]FIG. 7 is a block diagram of an anonymous transaction device computer or machine in accordance with an embodiment of the present invention. 
    
    
     DESCRIPTION OF THE SPECIFIC EMBODIMENTS  
     [0025] I. Transaction Device  
     [0026] As shown in FIG. 1, a portable transaction device  10  is conveniently configured to be the size of a credit card that can fit easily into a pocket, a wallet, or a purse. The transaction device  10  has at least one, preferably more than one, storage medium for storing account access information that can be read by a reading device for accessing an anonymous account. For instance, the transaction device  10  includes one or more of a bar code  12 , a magnetic strip  14 , a CD-ROM  16 , a smart-card microprocessor  18  which may be provided with digital storage, and the like. The different storage media on the device  10  may contain the same or different information. The body of the transaction device  10  as shown is a shaped CR-ROM  16 . The CD-ROM  16  may be a write-once read-only CD-R. The reading device for reading information stored in the storage media may be an optical scanner, a magnetic data reader, an electronic data reader, or the like. As such, the device  10  may be used in traditional brick-and-mortar establishments as well as in the virtual world of electronic commerce.  
     [0027] II. System for Anonymous Transaction  
     [0028] As illustrated in FIG. 2, the transaction device  10  is linked to a debit account  20  having a debit limit. The owner  21  (first party) of the transaction device  10  can use the transaction device  10  to make purchases or conduct a transaction with a second party  22  up to the debit limit of the debit account  20 . FIG. 2 shows a number of such second parties  22  which may include point-of-sale merchants  22   a,  online merchants  22   b,  and the like. The debit account  20  is held by the transaction device company or institution  24 . In one preferred embodiment, the debit account  20  is an anonymous account held by a third party bank or institution  24  which is not directly associated with the device owner&#39;s personal accounts  26  (e.g., savings, checking, and other financial accounts) held by a personal accounts institution  28 . In this way, the personal information of the device owner may be concealed from the second party  22  (although the identity of the device owner may be considered disclosed if the second party  22  is a point-of-sale merchant  22   a ). FIG. 2 further shows a shipping carrier  29  for shipping merchandise purchased from the online merchant  22   b.    
     [0029] The communication among the various parties shown in FIG. 2 may be facilitated by a communications network such as the Internet  30 . Access to the Internet  30  by the different parties may be made via computers or systems provided at the device owner  21  (user system), the merchants  22 ,  22   a,    22   b  (merchant system), the transaction device or anonymous account holding institution  24  (anonymous account holding institution system), personal accounts institution  28  (personal accounts institution system), and shipping carrier  29  (shipping carrier system). The merchant system is configured to provide access to the merchant account. The anonymous account holding institution system is configured to provide access to the anonymous account  20 . The user system is configured to communicate anonymous account access information to the anonymous account holding institution system to access the anonymous account and transfer funds between the anonymous account and the merchant account. The shipping carrier system is configured to receive from the user system the anonymous address information and the address associated therewith.  
     [0030] In the case of a point-of-sale merchant  22   a,  the computer system provided at the point-of-sale serves as both a user system (by reading the transaction device  10  and communicating the anonymous account access information) and a merchant system (by providing access to the merchant account).  
     [0031] The transaction device  10  may be purchased from a variety of entities or vendors. FIG. 3 shows a flow diagram illustrating the purchase and activation of the device  10  according to an embodiment of the invention. Advantageously, the transaction device  10  may be purchased from and funded at a vendor  32  (see FIG. 2). The vendor  32  may be one of the merchants  22 . At the start  40 , the customer goes to a vendor  32  who sells such devices. The customer pays the vendor  32  by cash, check, credit card, or the like, and the vendor  32  funds the debit account  20  with the payment by the customer-owner, for instance, via an electronic fund transfer (EFT) to the debit account holding entity  24  (step  42 ). The use of cash may be desirable to preserve anonymity. The information of the debit account  20  is provided in any of the storage media provided on the device  10  as shown in FIG. 1 and described above. The vendor  32  reads the account information using a suitable reader  34  (e.g., a bar code reader for reading a bar code or a magnetic reader for reading a magnetic strip). The device  10  is activated and funded at the point-of-sale (step  44 ). Alternatively, the debit account  20  may be funded by the device owner&#39;s personal accounts  26  or any other account by EFT. The debit account  20  remains anonymous so that the transaction device  10  has the anonymity of cash.  
     [0032] In some embodiments, an identification or authentication code similar to a personal identification number (PIN) used for debit cards and credit cards is required with the use of the transaction device  10  to authenticate the transfer of funds to and/or from the debit account  20 . The identification code can be assigned to the device  10  or selected by the owner who enters it on a number pad at the time of purchase of the device  10  (step  44 ).  
     [0033] As shown in FIG. 3, $X is transferred from the vendor&#39;s general account to the general account of the transaction device company  24  (see  46 ). The record of the transaction device  10  is stored in the database  48  of the transaction device company  24 . The record  50  contains information such as the account number or identification number of the device  10 , bar code ID number, magnetic strip ID number, CD-ROM ID number, personal identification number, and account balance. In the example shown, the different ID numbers (for the bar code, magnetic strip, and CD-ROM) are different, but provide access to the same debit account  20 . These different ID number are “dummy” account numbers that would render forgery of the device unlikely.  
     [0034] III. Anonymous Transaction Process  
     [0035] Upon activation, the transaction device  10  is ready for use in traditional brick-and-mortar establishments as well as in electronic commerce by accessing the debit account  20  through the device  10  using a reader. The transaction device  10  may be disposed after one or more uses. Alternatively, the debit account  20  can be replenished to enable the transaction device  10  to be used repeatedly as a debit card or electronic wallet. This can be done at a vendor  32 , a point-of-sale merchant  22   a , via EFT from the owner&#39;s personal accounts  26  or other accounts, or the like.  
     [0036] A. In-Store Purchase  
     [0037] The owner of the transaction device  10  can use the device  10  to make a point-of-sale transaction at a brick-and-mortar establishment at the start  52 , as shown in FIG. 4. The transaction device  10  allows fund transfer from the anonymous account  20  to the account of the point-of-sale merchant  22   a  (see  54 ). The device  10  is read, typically using a magnetic strip reader, by the point-of-sale merchant. If an identification code is required, the device owner enters the code into a number pad to authenticate the transaction (step  56 ).  
     [0038] Provided sufficient funds are available in the debit account  20 , $Y is transferred from the general account of the transaction device company  24  to the merchant&#39;s general account (see  58 ). The record  50  of the transaction device  10  as stored in the database  48  of the transaction device company  24  is modified by subtracting $Y from $X. Because the transaction device holding institution  24  is not directly associated with the device owner&#39;s personal accounts, the transaction is completed without disclosing any personal information of the device owner to the merchant  22   a.    
     [0039] B. Online Purchase  
     [0040]FIG. 5 shows the use of the transaction device  10  in an online transaction by accessing the online merchant via a communications network such as the Internet at the start  62 . The transaction device  10  allows fund transfer from the anonymous account  20  to the account of the online merchant  22   b  (see  64 ). The device  10  is read by inserting it into a computer such as a PC with a CD-ROM reader (step  66 ). In a preferred embodiment, the CD-ROM  16  of the device  10  contains a computer executable program that dials the telephone number of the server of the transaction device institution  24  via the modem of the computer, enters the URL of the institution  24 , and opens the Web browser (step  68 ). From this Internet portal, the device owner uses the Web browser to navigate to a desired online merchant (step  70 ), and to select one or more items for purchase at $Y (step  72 ). At step  74 , the device owner proceeds to check-out to complete the transaction. If an identification code is required, the device owner enters the code using a number pad to authenticate the transaction (step  74 ). The device owner also provides mailing instructions for shipping the selected merchandise, which may be anonymous or non-anonymous. The mailing instruction process (step  76 ) is described in more detail below.  
     [0041] Provided sufficient funds are available in the debit account  20 , $Y is transferred from the general account of the transaction device company  24  to the online merchant&#39;s general account (see  78 ). The record  50  of the transaction device  10  as stored in the database  48  of the transaction device company  24  is modified by subtracting $Y from $X. Because the transaction device holding institution  24  is not directly associated with the device owner&#39;s personal accounts, the money transfer is completed without disclosing any personal information of the device owner to the online merchant. The use of anonymous mailing instructions may further protect the device owner&#39;s anonymity by concealing the shipping address from the online merchant  22   b.    
     [0042] For security purposes, all data transfer is desirably conducted via secured networks with appropriate data encryption.  
     [0043] C. Anonymous and Non-anonymous Mailing Instructions  
     [0044] For transactions involving shipping, the device owner has the option of selecting anonymous mailing instructions to conceal the shipping address from the merchant or non-anonymous mailing instructions when the secrecy of the shipping address need not be preserved. The mailing instructions are conveniently separated or decoupled from the money transaction. If the shipping address belongs to the device owner, using the anonymous mailing instruction will protect the device owner&#39;s anonymity by concealing the address. If a different shipping address not directly associated with the device owner is used, it may not be necessary to conceal it to protect the device owner&#39;s anonymity. In some cases, it may be desirable to protect the addressee&#39;s anonymity even if it is not directly associated with the device owner. The present invention provides the options for doing so. The following describes an embodiment of the process in the context of an online purchase, but the process may be used for shipping merchandise by point-of-sale merchants as well.  
     [0045] As shown in FIG. 6, a transaction code identification number (ID#)  90  is assigned to the transaction (FIG. 5) upon completion of the purchase transaction at check-out, and optionally authentication using an identification number (step  100 ). The transaction code ID#  90  resides within the database  48  of the transaction device company  24 .  
     [0046] Meanwhile, the device owner is prompted to select either anonymous or non-anonymous mailing instructions in step  102 . If the owner selects non-anonymous mailing, an address form is displayed. The address form is typically provided by the online merchant at its website. The owner fills out the address form and the information is transmitted to the online merchant to be used for shipping the purchased merchandise (step  104 ).  
     [0047] If the owner selects anonymous mailing, an address form is displayed. The address form is typically provided by the transaction device company  24  at its website. The owner fills out the address form and the information is transmitted to the transaction device company  24  and stored in the database  48  (step  106 ). The shipping address  108  may be the device owner&#39;s address or another address. In step  110 , the owner is also prompted to select a shipping or parcel carrier  29  (see FIG. 2). The transaction device company  24  is instructed to transmit the transaction code ID#  90  to the online merchant database  112 . The chosen shipping carrier name  114  is transmitted to the online merchant database  112 . The online merchant packages the purchased item, and prints an anonymous address label in bar code format or other coded format containing the transaction code ID#  90  (step  1   16 ). The bar code may include a field for the chosen shipping carrier name  114 . Meanwhile, the transaction device company  24  is instructed to transmit the transaction code ID#  90  and the associated shipping address  108  to the chosen shipping carrier database  118 .  
     [0048] As shown in FIG. 6, the packaged item with the coded address label is picked up by the chosen carrier (step  120 ) and is sorted by the shipping carrier at its distribution center. More particularly, the shipping carrier reads the transaction code ID#  90  on the packaged item and matches the shipping address  108  with the transaction code ID#  90  using the data stored in the database  118  (step  122 ). The carrier then delivers the packaged item to the shipping address  108  associated with the transaction code ID#  90  (step  124 ). The carrier may print a traditional address label and attach it to the packaged item, or retain the coded address label with the transaction code ID#  90  serving as a parcel identification number with an associated shipping address for the delivery to the proper shipping address. Because the shipping address  108  is concealed from the online merchant  22   b , anonymity of the addressee is preserved.  
     [0049] V. Anonymous Transaction Machine  
     [0050] The anonymous transaction process is encoded in computer software and executed in a computer device. The computer device may be provided at the transaction device institution  24 , or at any of the merchants  22 ,  22   a ,  22   b  shown in FIG. 2, or at a separate anonymous transaction server which is in communication with the rest of the system of FIG. 2 via the Internet  30  or other communications network.  
     [0051]FIG. 7 shows an anonymous transaction device computer or machine  200 , which can be any type of computing device, such as a desktop computer, a workstation, or a mainframe computer. The anonymous transaction machine  200  includes a CPU  202 , a user interface  204 , a communications interface  206 , and a memory  210 . The communications interface  206  is used to communicate with the other parties in the system of FIG. 2 as well as other system sources not shown. The memory  210  may be implemented as RAM (random access memory) or other types of memory. The memory  210  contains data, procedures, files, and other information used to perform the functions of the anonymous transaction machine  200 . The memory  210  may contain an operating system  212 , Internet access procedures  214 , code modules  216  for carrying out various processes described above, and the like. For instance, different code modules  216  may be used to store instructions for performing the initial purchase and funding of the transaction device of FIG. 3, the use of the transaction device for in-store and online purchases as shown in FIGS. 4 and 5, and the anonymous and non-anonymous mailing instructions for shipping merchandise as shown in FIG. 6.  
     [0052] V. Alternative Embodiments  
     [0053] The above-described arrangements of apparatus and methods are merely illustrative of applications of the principles of this invention and many other embodiments and modifications may be made without departing from the spirit and scope of the invention as defined in the claims.  
     [0054] The CD-ROM  16  of the transaction device  10  as described above is programmed to direct the user of the transaction device  10  to the URL of the transaction device company  24  which holds the anonymous debit account  20 , and open the Web browser. In other embodiments, the CD-ROM  16  may be programmed to direct the user to any URL desired, such as the home page of a company that sells the transaction device  10 . As such, the transaction device  10  may serve as an electronic money gift certificate.  
     [0055] Moreover, the CD-ROM  16  may take the form of a write-once read-only CD-R. When the transaction device  10  is placed into a CD writer, a copy of the transactions is written onto the device  10 . The device  10  can be used to keep track of the transactions, and serves a purpose different from the anonymous money transactions described above. For instance, such a device  10  can be used as a petty cash account management tool to keep a record of the purchases that is a duplicate of the information for the device  10  in the database of the transaction device debit account holding company  24 .  
     [0056] Another example of a transaction not involving money transfer in which anonymity is desired only as an endpoint is a ballot. In that case, the magnetic strip on the ballot device may designate the individual entitled to vote, and the CD-ROM or CD-R portion of the ballot device may be the site at which the voting data is stored. When the ballot device is turned in at the polling place to have the vote counted, the owner&#39;s use of the ballot device may be authenticated (e.g., using an identification card). The data on the magnetic strip may then be erased to preserve the anonymity of the vote that is recorded onto the CD-R. This type of record may be preserved for each voter such that a reliable recount can be made, if necessary. The ballot device may be reusable. For instance, the vote may be written to a different location on the CD-R in the next election, and the magnetic strip may be reformatted to the next voter.  
     [0057] The scope of the invention should, therefore, be determined not with reference to the above description, but instead should be determined with reference to the appended claims along with their full scope of equivalents.