Abstract:
A system and method for rapidly and securely transferring funds electronically between two points comprises a server coupled to a network. The server contains software that receives an initiation funds transfer request from a first terminal via a network; generates a transaction number; stores the transaction number and data associated with the initiation funds transfer request in a memory location of the server; sends the transaction number to the first terminal via the network; receives a completion funds transfer request from a second terminal via the network; confirms that the completion funds transfer request is valid; updates the memory location to indicate that the funds transfer is complete; and sends a confirmation notice, which includes an amount of funds to dispense, to the second terminal via the network.

Description:
CROSS-REFERENCE TO RELATED APPLICATION  
       [0001]    This application is related to, and claims the benefit of, commonly assigned U.S. Provisional Application No. 60/147,449, entitled “System and Method for Rapidly and Securely Transferring Funds Electronically Between Two Points,” filed on Aug. 4, 1999. The subject matter of the related application is hereby incorporated by reference. 
     
    
     
       BACKGROUND  
         [0002]    1. Field of the Invention  
           [0003]    This invention relates generally to money transfers, and more particularly to rapidly and securely transferring funds electronically between two points.  
           [0004]    2. Description of the Background Art  
           [0005]    Conventionally, in order to transfer money, a person (“sender”) wishing to send money electronically must first find a money transfer location. Upon arriving at the money transfer location, the sender fills out a form indicating the name of the recipient (and possibly further information) as well as the amount of money (“principal”) to be sent. The sender then delivers the form, along with the principal, and a “convenience” fee, to an agent at the money transfer location. The agent takes the information the form and enters it into a terminal, which uploads the information to a central server for later retrieval. Some money transfer firms avoid repeated forms by providing for a means to call up the personal data for frequent customers. Others do not use a central server, relying instead on communications by telephone and/or telecopier. The agent then hands a receipt to the sender confirming that the order to send money has been received. The total time necessary to complete the transfer can vary from two minutes to a half hour or more.  
           [0006]    The person (the “recipient”) wishing to receive the money must then also find a money transfer location. Upon arrival at the location, the recipient fills out a second form indicating the recipient&#39;s name and other identifying data. The recipient then presents the form or a transaction number, with identification, to an agent at the receiving location. The agent verifies the identification of the recipient and then enters the information from the form or the transaction number into a terminal. The terminal accesses the central server and verifies that there was a send order for the principal indicated on the second form. Assuming that the recipient correctly filled out the form and that the transaction is verified, the agent then tenders the principal to the recipient. Some firms pay recipients in cash, others by check.  
           [0007]    One of main inconveniences of this method is the time required of both the sender and the recipient, particularly if they must fill out forms each time they wish to send and receive money. If a sender wants to engage in multiple transactions, he or she may have to fill out multiple forms (one form for each transaction), even though his or her identification information has not changed between the time of filling out one form and the next. The same applies to a recipient. Each time the recipient receives a money order, the recipient may have to fill out a form. In any event, the transactions normally require a considerable amount cashier or clerk time at the Point-of-Sale, adding to the costs borne by the money transfer location.  
           [0008]    Another problem with the above-mentioned method is that the sender or recipient may make errors when filling out their respective forms. This could lead to a delay in transferring the money by requiring the sender or recipient to fill out a new form to correct the information. The above systems are also susceptible to errors by cashiers and clerks.  
           [0009]    Therefore, a new system and method for rapidly and securely transferring funds is needed.  
         SUMMARY OF THE INVENTION  
         [0010]    The present invention provides a system and method for rapidly and securely transferring funds between two locations, The system comprises at least two terminals for electronically sending and receiving funds coupled to a central server via telephone lines, the Internet, or any other data transmission system (for example, a satellite-based telecommunication system such as Globalstar). First, a sender acquires a transfer-card. The transfer-card can either be a prepaid card, like a prepaid calling card, or the transfer-card can simply be an identification card, like an ATM card which has the user&#39;s account number embedded in its memory. Regardless of the type of transfer-card, the card contains a card-identifying number or PIN.  
           [0011]    Second, the sender presents the transfer-card, along with the principal and a transaction fee, to an agent at a transfer location. The agent swipes the card through a card-reader coupled to a terminal and specifies, by typing on a keyboard coupled to the terminal, the recipient&#39;s country and the amount to transfer. The agent enters his Agent ID along with his Agent PIN. Alternatively, if the card is prepaid, the sender, himself, may swipe the card through a card-reader coupled to the terminal. The sender then specifies the amount to transfer and the recipient&#39;s country.  
           [0012]    RapidMoney software located in memory of the terminal then uploads the entered information along with the swiped card&#39;s identification (“ID”) number to RapidMoney software located in memory of a central server. The RapidMoney server software processes the request, stores the information, and calculates a currency conversion if the recipient&#39;s country is not the same as the sender&#39;s country. The RapidMoney server software then generates a transaction number and returns the transaction number to the sending terminal&#39;s RapidMoney software. The sender then gets a printed receipt including the transaction number, which verifies the transaction.  
           [0013]    Next, the sender calls the recipient and gives him or her the transaction number as well as the ID number of the sender&#39;s transfer-card. The recipient then goes to a money transfer location and tells an agent both the transaction number and ID number and shows the agent a personal identification document. The agent then enters the information into a terminal. The terminal&#39;s RapidMoney software sends the information to the central server. The RapidMoney server software then searches for the transaction number in a database stored on the central server. If the ID number given by the recipient to the agent matches the ID number associated with the transaction number in the database, the agent gives the recipient the principal. The RapidMoney server software then indicates in the server&#39;s database that the transaction has been completed.  
           [0014]    Other advantages and features of the present invention will be apparent from the drawings and detailed description as set forth below. 
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0015]    [0015]FIG. 1 is a block diagram of a server coupled to two terminals, for implementing the invention;  
         [0016]    [0016]FIG. 2 is a block diagram showing contents of the server memory;  
         [0017]    [0017]FIG. 3 is a block diagram showing contents of the terminal memory;  
         [0018]    [0018]FIG. 4 is a flowchart of steps for performing a money transfer; and  
         [0019]    [0019]FIG. 5 is a flowchart of an alternative method for performing the money transfer. 
     
    
     DETAILED DESCRIPTION  
       [0020]    [0020]FIG. 1 is a block diagram of a server  100 , suitable for implementing the invention, coupled to a terminal  110  and to a terminal  130 . Server  100  includes at least one Central Processing Unit (CPU)  106 , memory  102 , and an input/output (I/O) interface  104 , all connected by a system bus  108 . I/O interface  104  connects server  100  to terminals  110  and  130  via a communications network  150 , such as the Internet, thereby allowing server  100  to exchange data with terminal  110  and terminal  130 . Network  150  is preferably impervious to eavesdropping and signal forgery. Server  100  can also be connected to terminals  110  and  130  via telephone lines and modems, or any other means for sending and receiving digital data. Memory  102  can be a single read and write capable memory device, or it may comprise multiple memory devices including a Hard Drive, RAM, ROM and/or any other memory devices. In addition, server  100  may also include a monitor, keyboard, or other peripheral devices (not shown).  
         [0021]    Terminal  110  is a sending terminal and comprises I/O interface  112 , CPU  114 , monitor  116 , keyboard  118 , memory  120 , and card reader  124 , all connected by system bus  122 . I/O interface  112  connects terminal  110  via network  150  to server  100 , allowing server  100  and terminal  110  to exchange data. In an alternative embodiment, terminal  110  comprises a keypad or other data input device in place of card reader  124 . Terminal  110  may also comprise other peripherals such as a mouse, trackball, microphone, etc. Terminal  110  can also be used as a receiving terminal as described below.  
         [0022]    Terminal  130  is a receiving terminal and comprises the same devices as terminal  110  including I/O interface  132 , CPU  134 , monitor  136 , keyboard  138 , memory  140 , and card reader  144 , interconnected by system bus  142  I/O interface  132  connects terminal  130  via network  150  to server  100 , 5 allowing server  100  and terminal  130  to exchange data. terminal  130  can also be used as a sending terminal.  
         [0023]    Terminals  110  and  130  may also comprise a remote bill counter  160  coupled via system bus  122  or system bus  142  to one of the terminals. The remote bill counter  160  is a currency-scanning device, akin to those in soda vending machines. The remote bill counter  160  reads the value of the money that is passed through a scanner in the remote bill counter  160 . The value of the bill(s) is then transmitted via network  150  to server  100 . In addition, a tamper-proof lock box  162  may be coupled to the remote bill counter  160  to hold the scanned currency. The operators of terminals  110  and  130  cannot remove currency held in the lock box  162 . Instead, the lock boxes are periodically collected by couriers and replaced with empty ones.  
         [0024]    In an alternative embodiment, terminal  110  and/or terminal  130  are not coupled to server  100 . Instead, data is communicated between a user and server  100  via telephone, fax or other conventional means. In another embodiment, terminals  110  and  130  are point of sale terminals.  
         [0025]    [0025]FIG. 2 is a block diagram showing contents of the server memory  102 . Memory  102  holds RapidMoney™ software  204 , which perform methods disclosed in FIGS. 4 and 5. Memory  102  also stores an operating system (“O/S”)  202  such as Windows NT®, Linux, or Solaris®, which is capable of executing the RapidMoney™ software  204 . Also included in memory  102  are Account Data  206 , Transaction Data  208 , and Currency Conversion Data  210 , which are accessed and modified by RapidMoney™ software  204  as will be described with reference to FIGS. 4 and 5. Currency Conversion Data  210  includes currency exchange rate data and can be modified regularly by an authorized administrator, or may be updated automatically based on current currency exchange rates by accessing currency tables available on the World Wide Web or other means.  
         [0026]    [0026]FIG. 3 is a block diagram showing contents of the terminal memory  120  or  140 . Memory  140  holds RapidMoney™ terminal software  304 , which performs portions of the methods disclosed in FIGS. 4 and 5. Memory  140  also holds an operating system (O/S)  302 , such as Windows® 98 or the operating system of Verifone® terminals, which is capable of executing RapidMoney™ terminal software  304 . Local database  306 , which also resides in memory  140 , holds a machine identification (“ID”) and a vendor ID, which together constitute a pair of uniquely assigned numbers or alphanumeric characters. Both the machine ID and the vendor ID are pre-programmed into the local database and are transmitted with transaction data, as will be described below in conjunction with FIGS. 4 and 5.  
         [0027]    [0027]FIG. 4 is a flowchart of steps according to the invention for initiating a money transfer process. Money can be transferred domestically or internationally At step  404 , after an Agent swipes the sender&#39;s transfer-card through card-reader  124  (FIG. 1), RapidMoney terminal software  304  (FIG. 3) reads the data stored in a magnetic strip on the sender&#39;s transfer-card. A transfer-card is similar to a credit card in that it stores at least an account number in the magnetic strip on the card. The magnetic strip can also hold other data, such as the sender&#39;s name. The transfer-card can be purchased as a prepaid card. Alternatively, the transfer-card may be a smart card or other machine-readable or human-readable token.  
         [0028]    At step  406 , Rapidmoney™ terminal software  304  reads the data entered by the Agent, which includes the Agent&#39;s ID Number, which can be any combination of alphanumeric characters, and Personal Identification Number (“PIN”), the amount of money (including principal and transaction fee) collected from the sender, and the recipient&#39;s country. At step  408 . RapidMoney™ terminal software  304  transmits the data read at steps  404  and  406  and the vendor ID and terminal (or “machine”) ID located in local database  306  of terminal  140  to RapidMoney™ software  204  located in memory  102  of server  100 .  
         [0029]    At step  410 , RapidMoney™ server software  204  processes the received data by a) calculating a currency conversion, if the sender&#39;s and recipient&#39;s countries use different currencies, by using Currency Conversion Data  210 ; b) calculating the amount of money to be dispensed to the recipient (principal minus transaction fee); c) determining if the swiped transfer-card is valid; and d) determining if the Agent&#39;s ID number and PIN matches his ID number and PIN on record—If, at step  412 , RapidMoney™ server software  204  determines that there is an error, i.e., the swiped transfer-card is invalid or the Agent&#39;s keyed ID number and PIN doesn&#39;t match his recorded ID number and PIN, etc., then method  400  proceeds to step  414 , which returns an error message to RapidMoney™ Terminal Software  304  and returns to step  404 .  
         [0030]    If no error is detected at step  412 , then at step  416  RapidMoney™ server software  204  generates a transaction number. At step  418  RapidMoney™ software  204  stores all the relevant data in Transaction Data  208  (which is located in server memory  102 ). Relevant data stored includes the transaction date and time (as determined by the server); the transaction number; the sender&#39;s transfer-card number; the Agent&#39;s ID number; the amount of money collected; the transaction fee; the exchange rate used; the amount of money collected in the sender&#39;s country&#39;s currency; and the amount of money to be dispensed in the recipient&#39;s country&#39;s currency.  
         [0031]    At step  420  RapidMoney™ server software  204  returns the transaction number generated at step  416 , as well as the data stored at step  418  (except for the sender&#39;s transfer-card number), to RapidMoney™ terminal software  304 . Method  400  then ends at step  422 .  
         [0032]    In an alternative implementation of method  400 , a sender purchases a prepaid transfer-card that holds a secret key. The secret key may be kept under a scratch-off mechanism on the surface of the transfer-card, or on a smart card or other suitable mechanism. One purpose for using a secret key is to ensure that the sender purchases an unused card. The sender then operates terminal  110  by himself or herself by swiping the prepaid transfer-card through card reader  124  (step  404 ) and specifying a destination country by entering it via keyboard  118 . In place of step  406 , the sender must also specify an amount to be transferred (up to the maximum value of the prepaid transfer card minus a transaction fee). Alternatively, RapidMoney™ terminal software  304  can automatically transfer the maximum value of the prepaid card minus a transaction fee. As no Agent is required, RapidMoney™ terminal software  304  does not prompt the sender for an Agent ID or pin. Method  400  then continues with step  408  except that it does not need to transmit the Agent ID or pin.  
         [0033]    Once the operation is complete in FIG. 4, the sender contacts the recipient and tells him or her his transfer-card number and the transaction number. The recipient then presents this data to an Agent as disclosed below in conjunction with FIG. 5.  
         [0034]    [0034]FIG. 5 is a flowchart of steps according to the invention for completing a money transfer process. At step  504  RapidMoney™ terminal software  304  prompts an Agent for data including the sender&#39;s transfer-card number, the transaction number, and the Agent ID and pin. The recipient provides the Agent with the sender&#39;s transfer-card number and transaction number, which are the same as those used in the sending process of FIG. 4. At step  506  RapidMoney™ terminal software  304  reads the data requested at step  504 . At step  508  RapidMoney™ terminal software  304  transmits the collected data to RapidMoney™ software  204  on server  100  (FIG. 1). RapidMoney™ terminal software  304  also transmits the terminal&#39;s ID and vendor&#39;s ID to RapidMoney software  204  on server  100  (FIG. 1).  
         [0035]    At step  510  RapidMoney™ software  204  processes the data, sent at step  508 , by accessing account data  206  and transaction data  208  to verify that the sender&#39;s transfer-card number is valid and that the transaction is valid (i.e. the sender&#39;s transfer-card number is paired with the transaction number stored in transaction data  208 ) and has not been previously completed. At step  512 , if RapidMoney™ software  204  determines that there is an error (i.e., the transaction is invalid), then at step  514  RapidMoney™ software  204  transmits an error message to RapidMoney™ terminal software  304 . Then in step  516 , RapidMoney™ terminal software  304  then displays the error message and returns to step  504 .  
         [0036]    If there is no error at step  512 , then at step  518  RapidMoney™ software  204  records that the transaction is complete in transaction data  208 . At step  520  RapidMoney™ software  204  sends a confirmation back to RapidMoney™ terminal software  304  confirming that the transaction is valid and complete. RapidMoney™ software  204  also sends the original data recorded at step  418  (FIG. 4), including the amount to be tendered by the Agent to the recipient.  
         [0037]    The invention has been described above with reference to specific embodiments. It will, however, be evident that various modifications and changes may be made thereto without departing from the broader spirit and scope of the invention as set forth in the appended claims. The foregoing description and drawings are, accordingly, to be regarded in an illustrative rather than a restrictive sense.