WO2001022371A1

WO2001022371A1 - Method and system for automatic teller machine and associated service

Info

Publication number: WO2001022371A1
Application number: PCT/CA2000/001066
Authority: WO
Inventors: Terence Michael Skalosky
Original assignee: Del-Coin Holdings Inc.
Priority date: 1999-09-23
Filing date: 2000-09-25
Publication date: 2001-03-29
Also published as: CA2283513A1; AU7500000A; WO2001022371A9

Abstract

A source of monetary value loaded onto a smart card wherein said monetary value does not originate from a bank account of from a previous transaction preloading value onto said smart card in exchange for cash. The source of monetary value may be an amount due after making a cash purchase.

Description

METHOD AND SYSTEM FOR AUTOMATIC TELLER MACHINE AND ASSOCIATED SERVICE

There are a large number of ATM or ABM (automated teller machine / automated bank machine) devices in existence. All generally consist of a card reading device, a display, a modem, a printer and a cash dispensing device placed in a safe /cabinet to prevent theft of cash stored in cash dispenser. The trend in the ATM industry is to build less expensive devices, which can be operated profitably in low volume locations. This generally is accomplished by making the safe portion of the machine less secure. These machines are designed to be operated under supervised conditions only during the business hours of the location where they are placed.

These types of devices have been widely distributed throughout North America resulting in an ATM industry, which is at the point of saturation. If any niche has not been serviced in this overcrowded marketplace it would be drive-up ATMs. Drive-up or drive-thru ATMs offer ultimate convenience to the customer. The relative costs, however, of building secure stand alone drive-up units is prohibitive

Problems with Existing Technology

Stand-alone drive-thru automated teller systems are extremely expensive due the amount of security that must be built into the structure. Large amounts of cash are left unattended in these ATMs 24 hours a day. There are real estate costs as well. The ATMs need to be located in high traffic areas on a parcel of land large enough to accommodate an easy flow of vehicle traffic past the ATM.

Summary of Invenϋon

There is an existing infrastructure existing in the fast food industry, which solves the problem of expensive real estate costs. There are tens of thousands of food franchises located in high traffic areas with existing drive-thru areas designed for fast, convenient delivery of food items. Our system enables fast food restaurants to offer cash dispensing services to their customers through their existing drive-thru areas. Security issues of leaving large amounts of cash unattended are overcome by moving cash dispenser inside the existing cashier's area of building. Benefits to Fast Food Industry

1. Profit - locations using this system receive a portion of the transaction fee that is charged to customer by their host bank each time an ATM transaction is made. The location can also add a surcharge or convenience charge in addition to the bank's charges.

2. No Debit Fees - the fast food industry has traditionally been a cash business. To accommodate customers who do not have cash the location must either. a. offer a source of shared cash dispensing i.e. our system. b. employ a POS (Point of Sale) system that allows customers to place purchase on a credit or debit card. c. with POS systems the location must pay a fee to the bank network for each transaction processed. This is undesirable in the fast food industry where purchases are often made for small amounts. d. with a shared cash dispensing system the location profits from each transaction and the customer pays the fees.

3. Increased Sales - the ability to receive cash would act as a value-added feature of each location. Customers enticed to location for cash will purchase food items as well.

4. Promotions - the card reading device in this system will be capable of reading smart cards enabling location to initiate all kinds of promotions and customer loyalty programs to it's customers.

5. Cash transfers - large amounts of cash that are generated through sales in restaurants that would ordinarily be physically transported to location's bank resulting in: a. associated risks of theft b. associated costs of armored car services c. time and travel will now be electronically transferred to location's bank account.

Benefits as a Cash Delivery System

Current ATM transactions consisting of a private transaction between a machine and a customer are subject to dispute and steps must then be taken to try to verify that the particular customer did indeed receive the cash that they were entitled to. Having cash dispensed at a cashier's window and intervention by the cashier allows for signed receipts to be obtained which prevents disputes. Key Points to Invention

1. Physical separation of cash dispenser from card reading device and other components.

2. Software components which interact with host's cash register system.

3. Software components which communicate to banking network that customer has received cash.

Existing ATM and POS Banking Technology

Automated Teller Machines

Current technology allows individuals to withdraw cash, deposit cash, and pay bills from their bank account at numerous locations. The availability of Automated Teller Machines or Automated Banking Machines (ATM or ABM) allow banking customers the versatility of reaching their money at almost any time or place. The banking industry has also permitted individuals to own and operate these machines in conjunction with the current banking networks.

The basis of the ATM is an interactive set of components put together with software to link the unit as a whole. The components consist of:

• A display screen

• A keypad

• A card reading device

• A printer

• A cash dispensing device

• A central processing unit

• A modem

The function of the ATM is to provide banking customers access to their cash through the banking networks. Access to such a network is initiated by a bankcard that is read by the card reader after it is inserted into the machine. The display screen provides instructions and information as to how to proceed with the transaction. Usually an access password or personal identification number (PLN) is required using the keypad along with the card. By following the specified instructions on the screen and inputting the proper access password as well as choosing the proper selections, the ABM communicates through a modem (or another form of communication) to the banking network. The information pertaining to the account such as account number and access password is verified on the network. Upon verification, the transaction is performed and the funds transferred. This transaction consists of the transfer of funds from the banking customer's account to that of the owner of the ATM machine or whoever is supplying the cash to be dispensed. The completion of the transaction allows the cash dispenser to output the amount of cash requested. A printed receipt is then provided along with the return of the bankcard.

Further information regarding patented ABM's, their operations, and the principles they are based on can be obtained from the following list. Other patents with similar systems are also included.

The business method for the operation of ABM machines lies in accessing banking networks for a fee and/or surcharge. The banking customer is charged a certain fee for accessing the banking networks. Independent ABM machines are also allowed to place an additional surcharge for providing such a service. The underlying principle is that the service is provided at the expense of the end user, the banking customer.

Point of Sale Equipment (POS)

Point of sale refers to a current banking network that allows the transfer of funds from a banking customer's bank account to a vendor's as a form of payment for merchandise or services purchased. This service comes at the expense of the vendor for allowing such a form of payment. The components of the POS equipment are similar to those of the ABM except for the unavailability of a cash dispensing mechanism.

POS units are usually small handheld devices that contain a keypad, a screen, a card reader, a receipt printer, a central processing unit, and a modem. An example of a POS system is the Lipman 2060 unit. All components are contained within a single portable unit. Other than the existence of a cash-dispensing device on an ABM, the POS unit compromises of the same components with different software for different banking network access.

Drive-Through Restaurant Business Methodology

Present day drive-through restaurants cater to individuals by supplying fast food through a window without requiring patrons to leave their cars. The idea is to quickly take orders and deliver them as the customers drive from the ordering booth to the pick up window. Usually the ordering booth consists of a menu and a microphone for the customer to place an order. Once the order is placed, the customer drives up to the pickup window to receive their order. The customer may have to stop at a cashier window initially before the pick-up window. At the pickup or cashier window, the customer is required to pay for the merchandise. Currently there are two payment options: cash or point of sale transactions. Once the order is paid for, a receipt is produced and the merchandise is passed to the customer.

A POS transaction at the cashier requires the customer to use a small handheld device passed from or located at the drive-through window. The customer uses the device to swipe their bank or credit card, input the required password, and select to pay for the merchandise. This transaction usually costs the restaurant some fee in order for the customer to have this service. The POS device may or may not be directly linked to the cash registers but the successful transaction is considered a cash sale.

The following list of patents provides a sample of drive-through restaurant set-ups as well as some information pertaining to the equipment used in such setups.

Patent Issued Inventor _______{

Benefits of the ATM & Drive-Through Combination

An ATM unit placed at the ordering booth in a drive-through provides a new form of secured cash withdrawal for customers. Placing a food order as well as a monetary withdrawal transaction from the same booth renders the establishment a multipurpose stop for customers. It provides immediate cash for banking customers as well increased payment options.

Placing an ATM machine in a restaurant can provide many benefits to customers and patrons. The cash-withdrawal feature becomes a selling point for the establishment. Cash withdrawal not only creates more traffic at a location, it also entices customers to purchase items due to their relatively low cost. Restaurants and drive-through establishments pay a fee for using POS systems as an alternative to cash. An ATM machine provides the customer with an alternative form of payment as well as a reduced cost for the patron. The ATM transactions contribute a source of income for the restaurants or their owners due to the surcharge associated with each transaction. This may become a source of revenue instead of a cost as POS systems create.

Building an ATM in the drive-through becomes an added convenience for customers as well. They can place an order for food and pick up their cash in the comfort of their vehicles. The security of having a dispenser in the pick-up window provides a safe environment for customers using the machines outside as well as a reduced risk of theft or vandalism to the machine itself. Money retrieved from the dispenser or register after an ATM transaction must be done by a cashier. This provides an added verification process that ensures the dispenser has not malfunctioned.

An ATM unit combined with the cash registers can allow the restaurant to use its current float as a means of cash dispensing. A communication link between the ATM and the cash register system allows the ATM to become a source of payment registered as a cash sale like a POS payment. Patent Claim Categories

The most important patent categories are described below. Each category is further discussed in the pages that follow. Patenting any or all of the following categories represents a clear advantage for the entire concept since these are fundamentals upon which the concept is based.

The steps to be followed at the ordering booth for customers to place a cash withdrawal order along with their food order. The steps include placing an order, placing a cash withdrawal order (optional), driving up to receive the food, cash advance (optional), and receipt at the drive-through window. The cash dispenser must be located at the drive-through pick up window or incorporated into the current cash registers.

2. The unique separation of the ATM terminal from the cash dispenser. This allows the dispenser to be placed at a different more secure location than the terminal. It gives the customer better security at making cash withdrawals from their vehicle as well as verification by a cashier on the cash dispensed.

The interaction between the ATM system and the cash registers. An ATM order can be noted by the cash register and used as a form of payment. The remainder of an order payment can be calculated if a cash withdrawal is conducted.

ATM Hardware Manufacturers

anutacturer

Lipman USA Inc. NURIT ATM

NCR PersonaS ATM, 5070, 5670, 5674, 5675

IBM IBM 4781

Interbold & Diebold Cashsource Plus

Triton Systems Inc. 95xx series

Siemens Nixdorf CSC430, CSC450, CSC456

Fujitsu ICL 7000 series

Digital WB21 - WB25

Multimedia Business Machines SAT 200/400 ATM

Bull Bull CP8

ATM Component Manufacturers

Category 1 : Flow Chart

FlklλflE 1

Step #1 : The customer enters the drive-through and approaches the ordering booth.

Step #2: The customer drives up to the Intercom/ATM ordering booth. This booth is clearly represented in the second category to follow. The booth contains an intercom microphone and speaker in order for the customer and cashier to communicate. It also contains a visible and easily accessable keypad, card swiping mechanism, screen, and printer for ATM transactions. Not visible to the customer is the central processing unit within the booth to which the keypad, screen, printer, and swiping mechanism is connected. This booth is connected to the netwrok of cash registers inside the establishment as well as the optioanl cash dispenser inside the pickup or cashier booth. Step #3: The customer communicates with the cashier and places a food order. This is done automatically using the intercom microphone and speaker.

Step #4: The customer now has the option of making an ATM transaction for cash withdrawl. If he/she chooses to do so, they simply swipe their card in the ATM terminal built into the booth. This automatically begins the transaction which is completed upon following the steps indicated by the machine. A reciept of the ATM transaction is printed for the customer. However, if the customer chooses not to use the ATM feature, they simply move on to the next step.

Step #5: The customer drives up to the order-pick up window to receive their order and cash advance if applicable. Only a reciept is dispensed by the ordering booth for verification purposes and as a transaction record.

Step #6: The cashier tallies and reports the final balance for the completed food purchase and ATM transaction. This is accomplished by the networked ATM system and Cash Register System (CRS) as outlined in the third category. The remainder of the balance is calculated as a final sum of an amount owing; owing to the customer because of the ATM transaction, or owing to the cashier for an alternative payment method for the order.

Step #7: The cashier gives the customer the food purchase along with the reciept for the purchase after payment. The reciept will have the final balance and the information pertaining to the transaction including payment method.

Step #8: The customer exits the drive-through. Category 2: ATM and Cash Dispencer Separation

The ATM terminal consists of a keypad, a card reading device, a viewing screen, a printer, a modem, and a central processing unit. Included will be the software in order for transactions to be communicated and verified through the banking network. The cash dispenser along with its power supply will be in a separate location connected to the ATM terminal using long electrical and communication cables. The modem requires a land phone line in order to access the banking network. This may be replaced with a CDPD (Cellular Digital Packet Data) module to access the same network.

The following is a list of all applicable patents related to the CDPD modules and interface. This optional technology will be applicable as a more economically feasable solution to a land phone line.

The cash dispenser may be incorporated into the facihties's existing CRS by software/hardware interaction or replaced completely with the CRS connected to the ATM terrriinal. Further information concerning the connection is reviewed in the third category.

The separation of the ATM terminal from the cash dispenser or register will allow the integration of this equipment with the existing ordering intercom interface. This will allow the customer to place a food order then simply swipe a card through the ATM device and complete the transaction. Once the transaction has been verified through the banking network, the printer located at the ordering booth will print the customer a transaction receipt. The estabhshment will also be notified of the completed transaction through a separate printer or by the cash register at the pick-up or cashier window.

Customer Interface View

Internal Components

INPUT OUTPUT

Keypad ► Printer

Central

Card Reader Processing Cash Register or

T Tnit Cash Dispenser

Sc ureen or

Touch Screen Category 3 : ATM Terminal and CRS Interaction

The ATM terminal may be attached to the CRS as an auxiliary payment method similar to current Point of Sale (POS) systems. The ATM transaction is registered by the CRS as a form of payment similar to a gift certificate or a money voucher. The inclusion of a cash dispenser may be optional if the facility has a sufficient cash float to support daily ATM transactions.

The connection of the ATM terminal to the CRS simply acts as an input/output connection through a communications port on both systems. This connection will allow a direct link between the ATM and CRS. This link will allow the ATM to send a signal to the CRS indicating how much money is withdrawn, which is interpretted as a payment. Change is caculated as it would under other circumstances such as a POS transaction.

The software maintaimng the connection between the CPU and CRS or that between the CPU and the cash dispenser will comply to current ATM banking network regulations. To achieve this, the connection must be bidirectional to provide the CPU with feedback concerning the dispensing of the cash. Once the cash has been dispensed properly, the CPU notifies the banking network that the transaction was completed successfully. This allows the banking network to perform the electomic funds transfer based on a successful completed transaction.

Optional "Keep The Change" Smart card patent application:

Summary of Existing Technology / Business Method

The cost of handling money for many business entities and governments is enormous. Merchants, financial institutions, and federal governments are all interested in cashless systems. The key tool many plan to use to move towards cashless systems is the Smart card (cards containing memory chip and/or a microprocessor). At present the most common application of the Smart card is the stored-value card. Stored-value cards are electronic analogues of the traveler's check. Consumers buy cards already loaded with monetary value from a dispenser and use the cards for small transactions. Card readers transfer information to banks periodically for credit to the merchant's account, either directly or through a clearinghouse. Sophisticated stored-value cards may be reloaded: simple ones are discarded when their cash is used up.

The attractions of such cards hinge on the relatively high overhead costs of alternatives such as credit cards or cash. Even in the United States, verification costs are too high to allow a profit on conventional credit and debit card transactions smaller than a few dollars. The stored value card minimizes transaction costs by carrying monetary value directly. It transfers the digital equivalent of bills or coins to a merchant's digital "cash register".

Problems with Existing Technology

Some experts have criticized smart cards as a technology endlessly in search of meaningful applications.

This document will focus on the use of smart cards as the key component in digital cash or cashless systems. The cards provide clear potential savings for banks and merchants, but transforming those benefits into incentives for users has been difficult The motivation to move towards cashless systems comes more from merchants and banks than the consumer.

Especially in North America where there are strong omnipresent bank networks in existence and most consumers are already in possession of bank debit and credit cards, there is little incentive for a consumer to carry another card, especially one which the consumer must load a cash value onto before using.

For the purpose of this application the problem specifically with stored-value cards is that the consumer (end user) must either purchase the card with cash from a vending machine or load value onto the card through an interface with the cardholders bank account. This can be done with hardware similar to ATM machines that are connected to bank networks or ultimately as banks with internet models envision, bank customers will be able to access their accounts from home and have a hardware interface attached to their home computers which will allow them to load value onto a stored-value card.

In any case the cardholder must make an effort to locate an interface device and make a conscious effort to load a monetary value onto his or her card. Benefits to Merchants, Banks, Governments and Consumers

Merchants: There are obvious benefits to all merchants. Bypassing the handling of money in paper or metallic form can generate significant savings. Economists estimate that counting, moving, storing and safeguarding cash costs about 4 percent of the value of all transactions. At the top of this list is the Fast Food Industry where individual locations deal in thousands of transactions per day.

The problem with money is that it can be spent anywhere. Once people have been enticed to place value onto a "Keep the Change" Smart Card a pool of money is created which can only be spent with member merchants. Competition for these dollars has now been removed.

Banks: The value that will accumulate on the 'Keep the Change" cards may be deposited into bank accountants and provide the initial motivation for consumers to open accounts and continue to use smart cards in conjunction with their respective banks.

Governments: Coin often is accumulated and saved by individuals removing this coin from circulation. Governments must continually mint coin to replenish supplies. The costs of minting especially low denomination coins can be greater than monetary value of the coin itself. Change placed on to "Keep the Change" cards will reduce the demand for coin and Governments will benefit from a reduction in costs of minting new coin.

Consumers: not having to receive and carry coin represents a pure convenience to consumers.

Key Points to Invention

The notion of placing change on a stored value card may be one of the most useful applications to date for smart card technology. Benefits accrue to all parties involved, merchants, banks, governments and consumers.

Technology and hardware already exists to allow for implementation of such a program in conjunction with all electronic cash register systems. The amount of change to be placed on a customer's card can even be manually entered into card writing device alleviating any need for interaction between "Keep the Change" cards and existing cash register systems. The "keep the Change" system can be used for:

1. Single locations i.e. Stored value can only be redeemed at originating location.

2. Multiple locations within the same company or chain.

3. Multiple locations consisting of any number of varied businesses participating together as a group using a system of debits and credits monitored by a common clearinghouse. Summary of Invention

The crux of this patent application does not revolve around hardware. In the United States more than two dozen companies are working on manufacturing smart-card readers and writers and prices will no doubt drop with volume production. There are also many manufacturers of smart cards themselves and there are numerous variations of cards with various capabilities. There are even contactless or short range cards in existence, which require no physical contact to a card reader.

The intellectual property, which we wish to protect, is the notion that the source of monetary value loaded onto a smart card does not have to originate from a bank account or be preloaded onto a card and sold for cash. The source of monetary value can be the change that is due after making a cash purchase.

Smart Card Introduction Primary Classification

A smart card can be generally defined as a plastic card (similar to a credit card) with an embedded computer chip. These cards fall within two main categories based on the type of chip used; simple memory chips with non-programmable logic or microprocessors with an internal memory. Both technologies can be accessed via direct physical contact or through a contact less electromagnetic interface.

The first of the two categories, memory chips, is the simplest form of smart card technology. It resembles the principle of storage space similar to floppy disks. The capacity of these cards is anywhere between 103 bits and 16,000 bits of data. Security features on these cards are very dependent on the card reader itself. This form of smart cards is ideal for low security requirements and far less expensive than any other.

The second category is the microprocessor chip with the ability to manipulate data in its memory. This technology resembles a complete computer with the ability to accept, manipulate, store, and present data. Storage capability ranges between 300 bytes to 32,000 bytes pending semiconductor advancements. The chip architecture is also available in 8, 16, and 32-bit. These cards can accept data as well as certain applications into their architecture. They can achieve a very high scale of security without the card reader's support.

Secondary Classification

Smart cards fall into a secondary classification based on the method of access. The two categories are contact and contact-less cards. Cards that require a direct connection to the card reader usually have a conductive micro module attached to their surface. This module directly touches nodes on the card reader that permit the direct transfer of data and commands onto and from the card.

The contact-less form of connection use antennas on the card and the reader. The communication link between the two enables complete data transfer. Most of these cards also use the signal from the reader as a source of power to drive the internal chip. A distance of approximately 2 or 3 inches is all that is required to complete the connection. This application is extremely useful in a fast paced environment, which requires a very fast interaction.

The secondary classification of contact and contact-less cards provides further subsystem categories that fall somewhere in between. A Hybrid card utilizes two separate chips, each supported with its own respective contact and contact-less interface. The chips are not connected to function as a single entity thus broadening the range of uses per single card. The Combi card utilizes a single chip with both interfaces, contact and contact-less. This makes the card accessible with either interface forms with a relatively high level of security. Applications

Smart card technology provides a wide range of industries with a large number of potential applications. Industries that have already adopted this technology include Telecommunications, Financial, as well as Government. Some examples include mobile telephones that accept a smart card to identify users. The phone recognizes the user with all related billing information and personal settings from the data carried by the card. Satellite receivers use a smart card to carry subscription information for access into the network. The financial sector has incorporated smart cards into programs such as MasterCard and Visa for identification and security purposes. Security measures for Government programs such as Health Care have utilized smart cards as well. Public telephones are also increasingly accepting precharged smart cards instead of coins as a means of payment.

Business Method

Fast food, restaurant, and most retail outlets consider smart cards a good method to enhance customer loyalty programs. The incorporation of price discounts, coupons, and deals on smart cards provide an incentive for customers to frequent the retail outlets. In order to implement smart card programs, especially by smaller retailers, the high cost must be justified with the maximum usage potential of the program. Providing other uses for smart cards enhances the shopping experience for customers and increases the marketing potential of the program for retailers.

The main function of current smart card programs is to enable customers to carry a balance of earned points or cash obtained by purchasing items or somehow frequenting the business establishment. The added total of which can be redeemed as a discount on the purchase at the outlet. The current business method suggests the return of change onto the smart card as part of the customer loyalty program. Customers have the option of placing change from transactions onto their smart cards for redemption at a later time. This option makes the accumulation of cash or credits on the card easier and faster. This provides a convenient method of dealing with extra change remaining after a purchase from the customer's perspective. It also provides the retailer a greater opportunity of selling more goods. It becomes relatively easy to increase the cards credits by adding the equivalent amount of cash onto it.

Transaction Components

The smart card transaction procedure specifically entails the return of change in the form of credit or added cash onto the smart card. See Figure 1 for the general transaction procedure and Figure 2 for the specific smart card application procedure. The accepted card is checked for expiration or tampering, such as addition of unauthorized funds, before the update is processed. Pre- established systems and procedures for cash or coupon redemption must be in place as part of the smart card program. Pre-established credit/debit card systems and procedures may be in place at the discretion of the retail outlet.

The basic components for the smart card application include the following (Illustration 1):

• Point of Sale Terminal (POS) or computerized Cash Register with a cash drawer

• Smart Card Software

• Smart Card Reader/Writer

• Printer The Point of Sale Terminal is usually a PC based computerized Cash Register with the ability to accept different PC based software along with its standard cash register enabling software. The POS can accept from and transmit data to the smart card reader/writer device. The card reader/writer device wilt accept and read smart card information and transmit data to the main POS. The smart card software captures the required amount of credits to update the balance from the main cash register functions. It validates the smart card using security measures to indicate tampering or expiration.

Upon card balance it transmits the information to be re-encoded onto the card to the reader/writer. The reader/writer initiates the updates and returns a completed transmission signal to the POS. At this point, a receipt is printed and submitted to complete the transaction.

Illustration 1 :

Printer

Smart Card Reader/Writer

Computerized Cash Register/POS terminal with Smart Card Software

Claims

I claim:

1. The invention as herein disclosed.

2. A source of monetary value loaded onto a smart card wherein said monetary value does not originate from a bank account or from a previous transaction preloading value onto said smart card in exchange for cash.

3. The invention claimed in claim 2 wherein the source of monetary value is an amount of change due after making a cash purchase.