Patent ID: 7472092

Claim:
A system for providing and utilizing a money order device comprising; a vending unit that creates and transmits an encrypted activation request containing a record of funds paid, authentication information from a customer and money order account information and provides a money order device during the money order device vending operation upon a payment of the funds; a vending communication link through which the encrypted activation request is transmitted; a clearinghouse that is remote from the vending unit that receives the encrypted activation request through the vending communication link and creates an account for the money order and stores the authentication information, the money order account information and an amount of account funds available based upon the funds paid in a database of the clearinghouse and transmits an activation response to the vendor unit to allow the vending unit to provide the money order device, and receives an encrypted transaction request during a merchant transaction operation, the encrypted transaction request including the money order account information, authentication information provided from the customer and a transaction amount; and a merchant communication link for transmitting the request from the merchant unit to the clearinghouse; and wherein the clearinghouse determines whether to approve the transaction by verifying the account information, the authentication information and transaction amount with money order account information stored in the clearinghouse database, and determines whether the transaction amount exceeds the amount of account funds available for the money order, and transmits a transaction response to the merchant unit of approval or disapproval of the transaction and upon approval of the transaction, immediately transfers money order account funds from the clearing house to a merchant account of the merchant.