HRP980597A2 - Multifunctional bank card - Google Patents

Description

Area to which it applies

This invention refers to the new functionality of a debit card ("debit" - charge) as a credit card, in such a way that payment with a debit card is prolonged for periods determined by the bank, for example, delaying payment for 30 days or in 2, 3 or more installments.

The previous banking practice in the world and in our country was explicit, that at the moment of payment with a debit card, the funds from the client's bank account are debited immediately (ATMs, EFT/POS terminals), and the payment delay function was covered by the newly issued credit card (in-printers ).

Technical problem

As much as the credit bank card improved cashless payment transactions and enabled the bank's clients to postpone payment, the participants in the transaction with that card (bank, merchant, client) were faced with numerous restrictions and very high business costs. For example for the bank, the high costs of managing and issuing cards, resolving irregular and disputed cases and other security norms in business; for the merchant, painstaking work with slips, and for the bank client, a lengthy purchase process.

State of the art

The current situation in banking practice is that the client is issued:

a) debit card, for payments or cash withdrawals, which immediately debits his account i

b) credit card, for deferred payment at in-printers and EFT/POS-terminals (terminals at the point of sale) in trading houses.

So there are three participants working with a bank card:

- issuing bank,

- bank client-card user i

- merchant-recipient of the card.

In order to issue a card to a client, the bank must have an organizational solution for managing and issuing the card, processing transactions, resolving irregular and disputed cases, IT support and security standards in business, that is, it must find all the solutions so that the card is functional and pleasant in customer service banks. All this requires very high costs.

The client of the bank must have at least two cards, must remember at least two PINs, recognize and be educated about the functionality of each separately, and the process of contracting with the bank on the use of a credit card, and the act of payment itself, are very time-consuming.

The merchant must educate his employees at the point of sale in working with in-printers or ETF/POS, and the very technology of working with sorting slips and taking them to the bank requires time and human resources.

US-A-5,534,683 indicates a multifunctional bank card including the features of the preamble of claim 1.

Presentation of the essence of the invention

The invention is defined by the features of the independent claim.

The primary goal of this invention is to multiply the functionality of a bank client with one card, in such a way that with one card, based on the inflow in your current account, you can make an independent choice of payment immediately or with a delay.

The bank contracts with the bank's client to open a current account and immediately approves a tentative loan based on the first inflow of funds to the current account. A framework loan based on a current account has automaticity and continuity, in contrast to the conclusion of an Agreement for the term and amount of the loan with a credit card. The framework loan is selective and determined by the bank. E.g.: If the inflow is 3-5 thousand, the bank approves a loan of 6 thousand. If there is a change in the flow of funds to the current account, the bank automatically changes the amount of the tentative loan and informs the client about it via a statement, for example every three months.

The bank issues a card to the client, and the client of the bank with that card can go and buy goods where the bank's EFT/POS terminal is installed, in such a way that when entering the PIN (personal identification number) into the terminal, he also enters the number agreed with the bank. If he types the number 1, it means that the funds will be taken from his account in 30 days, or if he types the number 2 on the terminal keyboard, the purchased amount will be withdrawn in 2 installments. If he wants his account to be debited immediately, he will only enter the PIN.

So, with this invention, it was not necessary to have another card - a credit card, but depending on the choice and will of the bank client, the payment was made at the merchant. The savings for the bank are huge, which will be discussed in the description of how to achieve them.

A detailed description of one of the ways of realizing the invention with examples of execution

In order to realize this conceptual solution of the invention, three participants are needed: the bank,

- bank client,

- merchant.

For example the client must come to the bank and conclude an agreement with the bank on opening a current account. From that Agreement or the General Terms and Conditions of current account operations, it must be visible, therefore, legally regulated all ways of using funds from the current account, as well as the approval of the approximate amount of the loan, which the bank gives to the client, depending on the amount of the inflow of funds in the current account. The bank issues a card to the client - MBK (multifunctional bank card).

The MBK card must contain the following functions:

1. identification (identifying the client),

2. warranty (with checks),

3. ATM (payment at ATMs),

4. payment (on EFT/POS terminals),

5. credit (on EFT/POS terminals).

In the current banking practice, all banks solved the first four mentioned functions through a debit card. I will give an example of how the fifth function can be solved, which is the essence of this invention.

In order for the bank to be able to offer the option of deferring payment for the term it agrees with the client, it is necessary before that to implement a network of EFT/POS terminals at trading houses. POS terminals are devices that are installed at points of sale based on the Agreement between the bank and the point of sale, in such a way that they are connected via a telephone line to the bank's central software. When paying for purchased goods, the owner of the MBK card enters his PIN (personal identification number) on the terminal, and slides the card through a special slot on the terminal, while the amount of the purchased goods appears on the screen. If he wants to postpone the payment of the specified amount for 30 days, he must enter the number agreed with the bank on the terminal (eg number 1). That number must give the central software a message that it is a delay in payment for 30 days. If he types, for example, the number 2, it will mean that he wants to pay the specified amount in 2 installments. The bank's central software must recognize this.

The bank is obliged to inform the holder of the MBK card, through the statement of the balance on the current account, about the amounts charged to his account or his tentative credit. This method eliminates the point of sale as a creditor and returns the basic function of the bank, lending, to the bank. Namely, depending on the terms of the Agreement with the merchant, the bank will pay the merchant for the goods immediately or every 15 days, and will credit the client from the approved framework loan.

Method of application of the invention

With this expansion of the functionality of one card, all participants in cashless payment transactions, from the bank, the client and the merchant, will be satisfied.

The bank will avoid the very high costs of the organizational solution for the creation, appearance, name and technical-technological characteristics of managing the new card, processing transactions, resolving irregular and disputed cases, IT support and security standards in card operations, because it has already covered all of this with the existing card in the current business. Therefore, all that remains is IT intervention on the EFT/POS terminal and the central software in order to recognize the order of the MBK card holder.

Of course, the amount of the purchased goods depends on the bank's selective allocation of the framework loan and the amount of the inflow of funds to the current account. With this, the bank will protect itself from the illegal use of current account checks by sales outlets, as their number will be significantly reduced, if not abolished, as the client with the MBK card will be able to pay for goods with a deferred payment. This reduces the extremely high costs of printing check blanks, their issuance and monitoring and, what is very important, the holder of the MBK card will not depend on the working hours of bank branches, but on the working hours of the store.

Another great advantage of this invention is the so-called cash flow monitoring in economics. It is known that in Croatia, more than 70% of transactions take place in cash. Today, the bank offers the client the opportunity to dispose of cash from 0 to 24 hours at ATMs by filling them with cash. With the MBK card, the client facilitates cashless payment transactions, which enables the state to accurately determine taxes because cash is more precisely controlled. Around the world, countries reward banks that promote cashless payment traffic by exempting them from paying customs duties or taxes on the equipment that enables it.

The client will have only one card and remember only one PIN and will be able to choose payment methods at the point of payment. So, make your wishes come true. He will spend his time rationally, since he will not have to go to the bank to withdraw cash or checks or go to an ATM to withdraw cash. Unlike a credit card, the client is sure that, if the card is lost or stolen, there is no possibility of misuse of his funds, since they are protected by a PIN (personal identification number).

The merchant will be able to monitor his goods traffic in a high quality, the traffic at the cash registers will be accelerated many times over, since the payment transaction takes 30 seconds; he will not have to do the specifications of check blanks or credit card slips, and thus he will save a lot of time and manpower. He disposes of the funds immediately or within 15 days, which enables him to receive rebates from suppliers of goods and not to take out loans for working capital with high interest, and thus, a higher profit.

Claims (1)

1. A multifunctional bank card with the functions of a debit card and a credit card, which includes: a tool that allows the cardholder to choose the way of debiting his or her current account - immediately or with a delay - based on the return of money to this account and the possibility of overdraft provided by the bank, a tool that enables the cardholder to buy goods in a retail store where an EFT/POS terminal is installed, in such a way that when entering the PIN into the terminal, he also enters the numbers agreed with the bank, indicated by: to serve as a means of performing the following functions: a) if the cardholder types "1", it means that he is granted a loan for 30 days, b) if the cardholder types "2", it means that he is granted a loan in 2 installments.