WO2009120236A1

WO2009120236A1 - Method and system for instant debit processing

Info

Publication number: WO2009120236A1
Application number: PCT/US2008/080124
Authority: WO
Inventors: Philippe A. Rouas
Original assignee: Rouas Entertainment Group, Inc.
Priority date: 2008-03-28
Filing date: 2008-10-16
Publication date: 2009-10-01

Abstract

A system for instant debit processing at a primary financial institution holding a currency account for a user. The system comprises a first communication link for transmitting and receiving a first currency account information between the primary financial institution and a first online site, a second communication link for transmitting and receiving a second currency account information between the primary financial institution and a second site, the second communication link is disabled when the first communication link is transmitting or receiving, and a processor for adjusting a balance of the currency account based on the first currency account information and the second currency account information. The system including an online site holding point accounts for a plurality of users also comprises a first communication link for transmitting and receiving point account information between the online site and a financial institution, and a processor for adjusting a point account balance based on the point account information and activities in the online site, wherein the point account balance includes a provisional point account balance and an actual point account balance for a first user and a second user and the activities comprise provisional acts and completed acts performed by the first user and the second user and the processor adjusts the provisional point account balance based on the provisional acts and the processor adjusts the provisional and the actual point balances based on the completed acts.

Description

METHOD AND SYSTEM FOR INSTANT DEBIT PROCESSING

[0001] The present invention claims priority to the U.S. Provisional Patent Application serial No. 61/040,233 filed March 28, 2008, the entirety of which is incorporated herein by reference.

FIELD OF THE INVENTION

[0002] The present invention relates generally to fund transfer and particularly to instant debit processing.

BACKGROUND

[0003] Advances in fund transfer systems over the last several decades have made transfer of funds between financial institutions or between one financial institution and a point of sale commonplace. For example, when a customer wishes to purchase items from a point of sale electronically or in person by presenting a bank card, he or she starts this process by opening an account either with the bank or other financial institutions and receives a credit or debit card. During the transaction, the point of sale electronically relays information to the financial institution. The information may include customer's bank card information, merchant's ID number, amount of transaction, product ID number, date, and time. The financial institution either approves or rejects the transaction. If the financial institution approves the transaction, the approval is customarily accompanied with a confirmation number. The approval process may depend on a series of criteria based on the contract between the customer and the financial institution. For example, at the request of the customer or based on the financial institution's policy, a limit-based policy may be enforced. Under this policy when the available balance reaches a certain threshold, wherein the threshold is either set by the financial institution or by the customer, reaching this threshold may prevent the customer from purchasing the product he or she desires. [0004] The advent of credit and bank cards has for the most part eliminated the need for the point of sale merchants to handle cash. For example, certain internet-based merchants require the purchaser to have a credit or bank card. That is, for some internet purchases, no cash transactions are even possible, and for these merchants the purchaser can only use a bank card or a credit card.

[0005] If, however, the purchaser has a limit-based policy as relates to his or her financial institution's account, as described above, and further the purchaser buys, sells, and trades at an internet-based trading or auction site on a regular basis, the purchaser/trader is unaware of his or her exact instant account balance. Therefore, when faced with an advantageous buying opportunity, the purchaser may become disappointed because he or she has reached the preset limit. Further, the internet- based point of sale site, may find handling financial transactions in actual currency, electronic or otherwise, disadvantageous for various reasons, e.g., conversion from one foreign currency to another, reliable instantaneous communication with the financial institution, etc.

[0006] Therefore, there is a need for a novel and robust system of bi-direction transfer of funds, or equivalent thereof, from one financial institution to another or a point of sale merchant or online sites.

Summary of invention

[0006] The present teachings provide methods and systems for instantly processing debit between an online site and a primary financial institution. [0007] In form thereof, a system for instant debit processing at a primary financial institution holding a currency account for a user is disclosed. The system comprises a first communication link for transmitting and receiving a first currency account information between the primary financial institution and a first online site, a second communication link for transmitting and receiving a second currency account information between the primary financial institution and a second site, the second communication link is disabled when the first communication link is transmitting or receiving, and a processor for adjusting a balance of the currency account based on the first currency account information and the second currency account information. [0008] In one embodiment, the first online site comprises at least one of an online trading/auction site and an online gambling site. In another embodiment the second site comprises at least one of a physical merchant, an online merchant, a secondary financial institution and an automated teller machine.

[0009] In one embodiment the first currency account information comprises a provisional point balance and an actual point balance. [0010] In one embodiment the balance of the currency account comprises a provisional currency account balance and an actual currency account balance. [0011] In one embodiment the processor adjusts the provisional currency account balance to correspond with the provisional point balance and the processor adjusts the actual currency account balance to correspond with the actual point balance. [0012] In one embodiment the second currency account information comprises a debit transaction or a credit transaction and the processor adjusts the provisional currency account balance and the actual currency account balance downward by an amount associated with the debit transaction or upward by an amount associated with the credit transaction.

[0013] In one embodiment the processor accepts the debit transaction after subtracting the amount associated with the debit transaction from the actual currency account balance and determining whether the actual currency account is above an actual currency account balance threshold.

[0014] In another form thereof, a system for instant debit processing at an online site holding point accounts for a plurality of users is disclosed. The system comprises a first communication link for transmitting and receiving point account information between the online site and a financial institution, and a processor for adjusting a point account balance based on the point account information and activities in the online site, wherein the point account balance includes a provisional point account balance and an actual point account balance for a first user and a second user and the activities comprise provisional acts and completed acts performed by the first user and the second user and the processor adjusts the provisional point account balance based on the provisional acts and the processor adjusts the provisional and the actual point balances based on the completed acts.

[0015] In one embodiment the online site comprises at least one of an online trading/auction site and an online gambling site.

[0016] In one embodiment the provisional acts comprise placing a provisional bid on an item by the first user for the item that is to be auctioned by the second user. In one embodiment the completed acts comprise acceptance/denial by the second user of the provisional act committed by the first user. In one embodiment the processor adjusts the provisional point account balance of the first user downward at the same time that the processor adjusts the provisional point account balance of the second user upward when there is a new provisional act by the first user by an amount corresponding to the provisional act of the first user. In one embodiment the processor adjusts the provisional point account balance of the first user upward when an existing provisional act committed by the first user has been denied by the second user at the same time that the processor adjusts the provisional point account balance of the second user downward by an amount corresponding to the existing provisional act committed by the first user. In one embodiment the processor adjusts the actual point account balance of the first user downward when a provisional act committed by the first user has been accepted by the second user by an amount corresponding to the provisional act of the first user at the same time that the actual point account balance of the second user is adjusted upward by the amount corresponding to the provisional act of the first user. In one embodiment the processor authorizes a new provisional act by a user after subtracting the amount associated with the provisional act from the provisional point account balance and determines whether the provisional point account balance is above a provisional point account balance threshold. [0017] In one embodiment the provisional point account balance and actual point account balance are displayed to the first and the second users continually. [0018] In one embodiment at a beginning and an end of a session between the online site and the financial institution the provisional point account balance is reconciled against a provisional currency account balance at the financial institution and the actual point account balance is reconciled against an actual currency account balance. Brief Description of Drawings

[0019] The above-mentioned and other advantages of the present teachings and the manner of obtaining them, will become more apparent and the current teachings will be better understood by reference to the following description of the embodiments of the current teachings taken in conjunction with the accompanying drawings, wherein: [0020] Fig. 1 is a schematic showing the main financial components of the current teachings;

[0021] Fig. 2 is a schematic showing a client contacting the system of the current teachings;

[0022] Fig. 3 is a schematic showing a client being rerouted to a primary financial institution;

[0023] Fig 4 is a schematic showing certain components of the current teachings contacting the primary financial institution,

[0024] Fig 5 is a schematic showing processing of member requests from online- merchants, physical merchants, and automated teller machine kiosks, [0025] Fig 6 is a schematic showing processing of transaction request from online- merchants, physical merchants, and automated teller machine kiosks, [0026] Fig 7 is a schematic showing member account creation at the online betting or trading site; and

[0027] Fig. 8 is a schematic showing member activity within the online betting or trading site.

Detailed Description

[0028] The embodiments m accordance with the present teachings descπbed below are not intended to be exhaustive or to limit the present teachings to the precise forms disclosed in the following detailed descπption. Rather, the embodiments are chosen and descπbed so that others skilled in the art may appreciate and understand the pπnciples and practices of the present teachings. [0029] A financial system and a method of transferring funds between financial institutions are disclosed by the instant application. The disclosed system and method are useful in many applications. An example of these applications is when it is desirable to transfer funds between a primary financial institution and an internet- based trading site, wherein users of the system of the current teachings frequently trade objects with other users, bid on objects against other users, and continuously recalculate their account balances as the trading activity continues. In popular online trading or auction sites, a user may purchase and sell the same object several times during one continuous period of being logged on to the online site. For example, a user may buy a baseball card in an auction on an online auction site, and immediately start a new auction to sell the same baseball card. Meanwhile, the user may want to place bids on a series of other objects.

[0030] Another example of where the current teachings can be used to streamline funds transfer is in the case of online gambling. Usually, online gambling sites require deposit of currency with the institution behind the site. The funds deposited with the site are not available for uses outside of the gambling site. Further, when the players of the online gambling site want to gain access to their funds, transfer of the funds usually requires many days if not weeks. This delay is because the funds have to be reconciled between players before the online gambling site managers are able to release the funds.

[0031] Therefore, there are two different applications for the current teachings. One application of the current teaching relates to online trading or auction sites and another application of the current teachings relates to online gambling sites. The drawings apply to both applications. However, in the specification treatment of the application to 1 ) online trading or auction sites, and 2) online gambling is separated for clarity.

[0032] Prior to describing the applications for the current invention, it will be helpful to define common terminology applicable to both situations and described account management which are also common to both applications. [0033] The funds transfer system (hereinafter, "FTS") according to the current teachings is based on a novel and unique interface between a primary financial institution (hereinafter, "PFI") and at least one online gambling or trading/auction site (hereinafter, "OBS"). Therefore, the FTS is made up of a PFI, an OBS, and optionally a point of sale merchant (hereinafter, "POS") or an automated teller machine (hereinafter, "ATM"). The FTS overcomes the shortcomings of the current trading or betting sites by establishing a unique interface between these sites and the PFI that is secure and provides instantaneous access to account balances. [0034] The FTS according to these teachings requires establishing user accounts with the FTS. Also, the FTS requires the user to create an account with one of several pre- approved financial institutions that will become the PFI for the user, as well as with the OBS. After establishing an account at the PFI, the user transfers funds to the PFI by any traditional means, e.g., wire transfer from another institution, etc. By way of PFI-issued bank cards, similar to a bank card issued by other banks or financial institutions, the transferred funds are available for any type of purchase. [0035] Financial transactions with the PFI are, however, different in other aspects. The unique interface between the PFI and the OBS is based on point allocation within the OBS where the points are dependent on the account balance of the user at the PFI. In order to establish a secure interface, when the user initially logs on, the FTS first locks out and thereby disables utilization of the PFI account by any means other than the activities within the OBS. The FTS then determines the amount of funds available at the PFI and allocates the same number of points at the OBS. The user is then allowed to start his or her activity within the OBS.

[0036] Referring to Fig. 1, an overview of FTS 100 is shown. Exemplarily, user 102 logs onto PFI 112 for setting up an account. User 102 receives customary account information, e.g., account number, user identification number, and bank card. User 102 also logs onto OBS 114 for creating an account and performing activities within the OBS that will be discussed in greater detail below. Using the account information associated with PFI 112, user 102 can make purchases at online merchant 104 or physical merchant 106. Similarly, user 102 can deposit or withdraw currency from ATM 108. Also, user 102 can communicate with a secondary financial institution (hereinafter "SFI") 119 for the purpose of transferring funds to and from PFI 112. [0037] Before user 102 can use FTS 100, the user has to create an account and become a member of the FTS 100. FTS account creation process 200 is exemplified in Fig. 2. User 102 contacts FTS 100 web site as shown in block 202. Initially, the FTS determines whether there is an existing membership in query 204 If user 102 is already a member, i.e., has already created an account, FTS 100 directs user 102 to a login menu as shown in block 210. If, however, no prior membership is previously obtained, FTS 100 presents a list of approved PFIs to user 102, as indicated by block 206. The FTS queπes to determine if the user has selected a PFI of choice, as indicated by query 208. Depending on the selection of user 102 as to the PFI of choice, the FTS routes user 102 to the chosen PFI for the purpose of account creation, as shown in block 212.

[0038] PFI account creation 300 is shown in Fig 3. Initially, user 102 is directed to the PFI site, block 302, with instructions to create an account. User 102 is then directed to an account creation page designated by block 304. Within the account creation page, user 102 enters personal information, such as name address, employer, names of additional account holders authoπzed to use the account as well providing agreement terms with user 102, a user-selected login code, a PFI-only password, a PFI-OBS password, and fund transfer information from the SFI, such as routing number or wire transfer information Once the account creation information has been entered, PFI 112 creates an account, transfers funds from SFI 1 10, sends account card to member, and contacts FTS 100 to alert the PFI account creation process is completed These actions are shown in block 308 The PFI then presents to user 102 a list of approved OBSs that can be used for the instant account processing, as shown by block 310. It should be understood that a particular PFI may have different OBSs that the PFI has working relationships with The PFI queπes to determine if the user has selected an OBS of choice, as indicated by query 312 Once the OBS is chosen by user 102, the PFI directs user 102 to the OBS so that user 102 can create an account with the OBS, as indicated by block 314. Optionally, however, not shown, the PFI reroutes user 102 back to the FTS site so that user 102 may be presented with the list of approved PFIs, in case the user did not see the OBS of his or choice associated with the PFI the user had already chosen.

[0039] The OBS account creation procedure 350 is shown in Fig. 4. Similar to the PFI account creation, user 102 enters personal information, e.g., name, address, and employer. User 102 also enters information related to additional account holder who is thereby authorized to access the account as well as agree with the terms of the account. User 102 is then prompted to enter the PFI account number that was assigned by PFI 112. In addition, user 102 enters the PFI login ID and the PFI-OBS password. User is then prompted to enter an OBS login ID and an OBS-only password. The above entry by the user is shown in block 352. Once the PFI information, i.e., the PFI account number, the PFI login ID, and the PFI-OBS password is entered by User 102, the PFI information is checked with PFI 112 as shown in query 354. If the PFI information is accurate an OBS account is thereby generated and an account number is provided to the user, as shown in block 358. If, however, the PFI information is incorrect, an error message is provided to user 102 alerting the user of the incorrect information as shown in block 356. [0040] Fig. 5 shows interaction between user 102, merchants, ATM, and PFI 112. The arrangement shown in Fig. 5 is different than operations performed traditionally in the financial institutions in at least one aspect. That is, during the period a first entity, such as an online merchant, is accessing PFI 112, the PFI account is locked. The locking operation is equivalent to disabling the PFI account so that it cannot be accessed by a second outside entity, such as a physical merchant. The account is disabled until the communication between the first entity and the PFI is completed. More on the locking feature will be provided below. User 102 may use the account card issued by PFI 112 as referenced in block 308 of Fig. 3. The account card is envisioned to be utilized similar to a "checking card" where the card is directly linked with a checking account. In the instant case, the account card is directly linked to the PFI account. User 102 may provide the PFI account number or the card number associated with the PFI account to an online merchant for the purpose of purchasing merchandise, as shown in block 402. The online merchant processes the merchandise purchase request, block 404, by contacting PFI 112. The communication with the PFI is shown by reference numeral 408. The online merchant ascertains from PFI 112 as to the sufficiency of funds in PFI 112 based on the purchase amount, as indicated by double-arrow link between online merchant and PFI 112. IfPFI 112 authorizes the transaction based on availability of funds at PFI 1 12, then online merchant processes the merchandise as indicated by block 406. Authorization process by PFI 112 is described below. [0041] Similarly, if user 102 wishes to purchase merchandise at a physical merchant, the user can provide the PFI account number or the PFI-issued card associated with the PFI account, as indicated by block 410. The physical merchant processes the merchandise transaction by contacting PFI 112 as indicated by block 412 and double sided arrow 416. Similarly, if there are sufficient funds in the PFI account, PFI 112 authorizes the transaction and the physical merchant processes the merchandise as indicated by block 414. Authorization process by PFI 112 is described below. [0042] If user 102 desires to withdraw or deposit currency from or to an ATM, the user can provide the PFI account card to an ATM, as indicated by block 420. The ATM processes the currency transfer request with PFI 112, as indicated by double- arrow link 426 between the ATM and the PFI. If user 102 is withdrawing currency, the PFI must authorize, based on sufficiency of funds. If user 102 is depositing currency, no authoπzation is required. Upon appropriate approval from PFI 112, ATM processes the currency transfer request, as indicated by block 424. The authorization process by PFI 112 is described below in reference with Fig. 6. [0043] When an online or physical merchant, ATM, or SFI contacts PFI 112 presenting the user's PFI account number or the user's PFI account card information, as indicated by block 450, PFI 112 determines the status of the account, as indicated by block 452. This includes determining whether the account is valid or locked. PFI 112 queries as to whether the account is locked, as indicated by query 454. Exemplary reasons for locking the account are user 102 logging on to OBS 114, duπng which period the PFI account is locked, or for other secuπty reasons, e.g , user 102 having entered incorrect password too many times based on a pre-determmed rule, suspicious purchases, etc. If the PFI account is locked, PFI 112 alerts merchant or ATM or SFI that the requested activity is not possible at this time, as indicated by block 456 If however, the PFI account is not locked, PFI 112 determines the type of transaction merchant, ATM, or SFI is requesting from PFI 112, as indicated by block 458. If the type of activity requires withdrawal of funds, PFI 112 first determines the amount of funds requested, as shown by query 460 and block 462. If the type of activity does not require depositing of funds, PFI 112 determines whether a deposit transaction has been requested, as indicated by query 464. If the transaction is not a deposit, then PFI 112 responds to the transaction originated from merchant, ATM, or SFI, as shown in block 468. The types of non-withdrawal and non-deposit transactions are, e.g., merely requesting availability of funds by a merchant without withdrawing funds or simply requesting balance at the ATM. [0044] Whether the request by a merchant, ATM, or SFI is a withdraw and there is sufficient funds available in the PFI account, or the merchant, ATM, or SFI is depositing funds, PFI 112 locks the account in order to respond to the request, as indicated by block 470. The reason for locking the account is to avoid situations where while PFI 112 is responding to a withdraw request and prior to recalculating the available balance another withdraw request is presented. By locking the account, access to the PFI account is limited as was shown in query 454 and block 456. Once the account is locked. PFI 112 processes the request from merchant, ATM, or SFI. The processing of request shown in block 472 includes recalculating the PFI account balance, releasing authorization, etc. After the processing is complete, PFI 112 unlocks the account in block 474.

[0045] If the merchant, ATM, or SFI is making a withdraw request and there is insufficient funds in the PFI account to cover the request, PFI 112 will inform the requestor that the requested activity is not currently available, as indicated by block 456.

[0046] User 102 logs in to OBS 114 as shown in Fig. 7. User logs on to OBS 114, as shown in block 500 in Fig. 7., and enters the login ID, the OBS-only password, the PFI login ID and the PFI-OBS password, which were established in Figs. 4 and 5. Initially, OBS 114 confirms the accuracy of the information entered by user 102 against an internal OBS database housing the OBS login information, the OBS-only password, and the PFI-OBS password. OBS 114 then determines whether the OBS login information provided by user 102 is correct, as shown in query 504. If the login information is not correct, OBS 114 provides an error message to user 102, as indicated by block 508. If the OBS login information is correct, then secondarily, OBS 114 contacts PFI 112 and confirms the PFI login ID and the PFI-OBS password with PFI 112, as indicated by block 506. OBS 114 then determines whether the PFI login information provided by user 102 is correct, as shown in query 510. If the PFI login information is not correct, OBS 114 provides an error messages to user 102, as shown in block 516. If the PFI login information provided by user 102 is correct, OBS 114 contacts PFI 112 to accomplish various tasks between the PFI and the OBS. These tasks include determining the balance at the PFI, converting balance to points at the OBS, and locking the PFI account, as indicated by block 514. Once the point balance at OBS 114 has been established, user 102 is then free to begin and continue OBS-related activities, as indicated by block 512. User activity in block 512 is discussed in reference to Fig. 8 and with respect to application of the current activities to the two unique situations described above, namely online betting activity in an online gambling site or bidding on items in an online auction or trading site.

Online trading or auction site

[0047] In the case of an online trading or auction type OBS, for each instance of placing a bid on an item, the FTS provisionally deducts from the point balance of the user the number of points equal to the bid. A provisional balance is shown to the user. A provisional balance is the result of the actual point balance minus the provisional amount deducted due to the amount of the bid. When the bid is accepted by the seller of the item, the provisional balance is updated to an actual balance. Thus, the actual and provisional point balances are different in that the actual balance shows the balance without the effect of provisional point deductions when the user places bids on an item. Similarly, when the item is sold by a user, the sale amount is added to the actual point balance.

[0048] Returning to the example of the baseball card, when the user initially logs on to the FTS, his or her PFI account is disabled for all uses other than placing bids or trading within the OBS. That is, the bank card is not available for purchases at a POS, nor is it available for funds transfer at an ATM. The disablement step is necessary so that the point balance within the OBS can be reconciled with the amount of funds in the PFI. When the user has placed a bid for the baseball card, the FTS automatically and provisionally deducts the amount of the bid from the point balance. If the bid is ultimately accepted, the provisional deduction becomes a permanent deduction. If the bid is not ultimately accepted, then the bid amount is added back to the point balance [0049] Another reason for the provisional deduction of points from the point balance is to ensure that the user does not exceed his or her overall points. For example, if the user is placing multiple bids, each time a bid is placed, the point balance is provisionally deducted. The user will not be allowed to place a bid where the provisional point balance is at or below a certain bid-limiting threshold. This threshold may be set by the PFI or by the user. At the same time both the actual and provisional point balances are continuously displayed to the user, thereby, alerting the user of the proximity of the point balance to the bid-limiting threshold. Therefore, while the actual balance has not been changed, because for example no bids for items have been accepted, reaching the bid-limiting threshold will prevent the user from placing additional bids.

[0050] Implementing this scheme adds a substantial amount of confidence to the sellers of items in online auction sites. For example, in current online auction sites when an automobile has been placed be sold to the greatest bidder, at the termination of the auction, the seller has no idea whether the buyer associated with the winning bid has the financial capacity to purchase the vehicle. If the buyer backs out, the seller's only option is to initiate a legal proceeding against the would-be buyer. Under the scheme of the current teachings, however, the seller confidently accepts the winning bid knowing that the buyer associated with the winning bid has sufficient funds. Therefore, the scheme according to the current teachings streamlines the entire process of placing a bid, purchasing an item, and selling an item in an online trading or auction site.

[0051] Referring to Fig. 8, while in OBS 1 14, actual point balance reflecting actual available point balance is first reconciled and then displayed to user 102. In addition, a provisional point balance is also displayed in OBS 114. The reconciliation process is described in detail below. User 102 places a bid on an item in an online auction site, as shown in block 550. OBS 114 monitors actions taken, e.g., user 102 places a bid or a bid is accepted by a buyer, in accordance with block 552. OBS 114 determines whether the action is user 102 requesting to log out of the OBS. If so, OBS 114 transmits new point balances to PFI 112, and unlocks the PFI account, in accordance with block 556. The new point balances are the actual and provisional point balances that are communicated to the PFI. If the user has placed bids for auctions which have not closed at the time the user logs out, the new actual point balance and the provisional balance are the same and both are communicated to the PFI. If, however, one or more of the auctions have not closed yet, the new actual balance and provisional point balance are different. In order to reconcile the actual and provisional point balance upon reentry back into OBS, the OBS would have to keep in memory all of the bids the user has placed in the auctions that have not closed and further keep track of those auctions until the next time the user has logged back into the OBS. Upon reentry back into the OBS, the OBS first reconciles all of the outstanding bids against the point balances imported from the PFI. For example, suppose a previous session, session 1 , ended with an actual and provisional point balance of API and PPl, respectively. Further suppose during a current session, session 2, the user has placed 3 bids of X, Y, and Z. At the time of logging out of the OBS, at the end of session 2, the provisional point balance, PP2, which is calculated by the OBS would be PPl minus (X+Y+Z). The actual point balance, AP2, would remain at API . The OBS continually monitors auction activities. Further, suppose while the user was logged out, auctions associated with bids X and Y have concluded with the user's X bid having been accepted, while the user's Y bid having been rejected by the respective sellers. Upon the user's reentry, session 3, the OBS displays both provisional and actual point balances after reconciling the imported point balances from the PFI. The OBS first imports the actual point balance from session 2 which is AP2 and calculates the new actual point balance AP3 which is AP2 - X and displays that as the actual balance. The actual balance is the imported actual point balance minus X because neither Y nor Z bids were accepted by sellers of the auctions associated with bids Y or Z. The OBS next calculates and displays the provisional point balance, PP3, which is the imported PP2 + Y. This is because the auction associated with bid Y had ended and the user's bid was not used. However, auction associated with bid X was concluded in favor of accepting the user's bid X and auction associated with bid Z is still ongoing. Therefore, the only bid value that should be added to PP2 is bid Y. Table 1 below shows the above example in a tabular form.

1 - Calculated when the user logs back into the OBS and displayed to the user [0052] If the action is not to log out of OBS 114, then the OBS ascertains weather the action is a completion of a provisional action that user 102 previously started, as shown in query 558. For example, if user 102 has previously placed a bid on an item and the action is that the bid is being accepted by a seller, then the action of accepting the bid is the completion of the provisional action of placing the bid. Therefore, if OBS 114 determines the action is a completion of an earlier provisional action, then OBS 114 reconciles the actual point balance with provisional point balance, as indicated by block 560. For example, if buyer has placed a bid for an item for X points, and the buyer's actual balance was AP points while the user's provisional balance was PP point, then the provisional balance becomes PP - X, while the actual balance remains at AP points. When the bid is accepted by the seller, then the actual balance is reconciled with the provisional balance so that the actual balance is AP - X and the provisional balance remains at PP - X. Any time when the actual balance is different than the provisional balance that is an indication that there are outstanding provisional actions that have not been completed.

[0053] If OBS 114 determines the action is not a completion of an earlier provisional application, and the action is not a request to log out, then the action must be a new provisional action. OBS 114 checks for sufficiency of funds to determine if there are sufficient points in the account to cover the provisional action, as seen in query 562. This determination is based on available provisional point balance and the provisional action. If there is a sufficient balance, OBS 114 recalculates the provisional point balance, and records the requested action, as seen in block 564. For example, if user 102 places a bid on an item and user 102 has a sufficient number of points to cover the new bid, a new provisional balance is calculated and the new bid is recorded. If however, user 102 does not have a sufficient number of points to cover the bid, user 102 is alerted and the action is not recorder, as shown by block 566. [0054] As indicated above, at the completion of a given session, the OBS contact the PFI and transmits the actual and provisional balances to the PFI. At the same time the OBS requests that PFI unlock the user's account from the stand point of activities in the OBS. If there are no other sources that have caused the PFI account to be locked, the funds at the PFI associate with the provisional point balance are now available to be withdrawn at an ATM or used with physical or online merchants. If the user has expended some of the provisional funds available at his or her PFI account between OBS sessions, then when the OBS first imports the provisional points at the point when the user first logs on to the OBS, the provisional points reflect those expenditures.

Online gambling site

[0055] As mentioned before, the OBS activities could be associated with the user logging on to an online gambling site. The calculations described above with respect to an online auction or trading site apply to the online gambling site. For example, if a player has placed a bet on a hand, the bet is the provisional act. Winning the hand completes the provisional action. In a similar manner, when the user logs on to an online gambling site and places a bet on a hand, e.g., in a poker game, with every bet the OBS deducts the bet amount from the provisional point balance and shows a new provisional point balance. If the user looses the hand, then the OBS updates the actual point balance. If the user wins the hand, then the actual point balance is updated by adding the winnings, e.g., the pot in the poker game minus the amount the user placed in the pot by way of his or her bets, to the actual point balance. [0056] In some circumstances placing a bet in the middle of the hand will also result in provisional deductions of the bet amounts from the point balance. One difference, however, with the online auction site is that in an online gambling situation, if the user ultimately folds, i.e., drops out of a hand, the user's provisional deduction will turn into a permanent deduction which will affect his or her actual point balance. This is unlike the case where the user's bid, in an online trading situation, is not accepted, whereby the bid amount is added back to the provisional point balance. [0057] Similar to the online trading or auction site application, the actual and provisional point balances are continually reconciled and displayed to the user. At the end of a session, the actual and provisional point balances are communicated to the PFI and the OBS request the PFI to unlock the PFI account with respect to the activities associated with the OBS. From that point on, the provisional point balance is made available to the user for outside purchases and withdrawals from and ATM.

Fantasy betting and trading

[0058] In one embodiment according to the current teachings, fantasy betting or trading practices are implemented. In this type of situation, no PFI account is necessary. Users are allowed to log on to the FTS and place bids on items or play hands in a non-monetary gambling setting. Similar to the discussion above, a beginning actual point balance is offered to each user. As the bidding or trading activity proceeds, the point balances alter in the same fashion as provisional and actual point balances described above.

[0059] In another embodiment, a fantasy securities-trading system can be set up in a similar manner. In this situation, users are similarly bidding on securities instead of tangible items. For example, a user can place a bid so that if the security reaches a certain value during the course of a session or intra-sessions, then OBS is to purchase a certain number of shares or sell a certain number of shares. For example, an initial point balance is allocated to each player. As the player buys and sells securities, while logged on to the OBS, or intra-sessions, the actual and provisional point balances are updated in a similar manner as described above. [0060] While exemplary embodiments incorporating the principles of the present teachings have been disclosed hereinabove, the present teachings are not limited to the disclosed embodiments. Instead, this application is intended to cover any variations, uses, or adaptations of the current teachings using its general principles. Further, this application is intended to cover such departures from the present disclosure as come within known or customary practice in the art to which the current teachings pertains and which fall within the limits of the appended claims.

Claims

We claim:

1. A system for instant debit processing at a primary financial institution holding a currency account for a user, comprising: a first communication link for transmitting and receiving a first currency account information between the primary financial institution and a first online site; a second communication link for transmitting and receiving a second currency account information between the primary financial institution and a second site, the second communication link is disabled when the first communication link is transmitting or receiving; and a processor for adjusting a balance of the currency account based on the first currency account information and the second currency account information.

2. The system of claim 1, wherein the first online site comprises at least one of an online trading/auction site and an online gambling site.

3. The system of claim 1 , wherein the second site comprises at least one of a physical merchant, an online merchant, a secondary financial institution and an automated teller machine.

4. The system of claim 1 , wherein the first currency account information comprises a provisional point balance and an actual point balance.

5. The system of claim 4, wherein the balance of the currency account comprises a provisional currency account balance and an actual currency account balance.

6. The system of claim 5, wherein the processor adjusts the provisional currency account balance to correspond with the provisional point balance and the processor adjusts the actual currency account balance to correspond with the actual point balance.

7. The system of claim 6, wherein the second currency account information comprises a debit transaction or a credit transaction and the processor adjusts the provisional currency account balance and the actual currency account balance downward by an amount associated with the debit transaction or upward by an amount associated with the credit transaction.

8. The system of claim 7, wherein the processor accepts the debit transaction after subtracting the amount associated with the debit transaction from the actual currency account balance and determining whether the actual currency account is above an actual currency account balance threshold.

9. A system for instant debit processing at an online site holding point accounts for a plurality of users, comprising: a first communication link for transmitting and receiving point account information between the online site and a financial institution; and a processor for adjusting a point account balance based on the point account information and activities in the online site, wherein the point account balance includes a provisional point account balance and an actual point account balance for a first user and a second user and the activities comprise provisional acts and completed acts performed by the first user and the second user and the processor adjusts the provisional point account balance based on the provisional acts and the processor adjusts the provisional and the actual point balances based on the completed acts.

10. The system of claim 9, wherein the online site comprises at least one of an online trading/auction site and an online gambling site.

1 1. The system of claim 9, wherein the provisional acts comprise placing a provisional bid on an item by the first user for the item that is to be auctioned by the second user.

12. The system of claim 10, wherein the completed acts comprise acceptance/denial by the second user of the provisional act committed by the first user.

13. The system of claim 12, wherein the processor adjusts the provisional point account balance of the first user downward at the same time that the processor adjusts the provisional point account balance of the second user upward when there is a new provisional act by the first user by an amount corresponding to the provisional act of the first user.

14. The system of claim 13, wherein the processor adjusts the provisional point account balance of the first user upward when an existing provisional act committed by the first user has been denied by the second user at the same time that the processor adjusts the provisional point account balance of the second user downward by an amount corresponding to the existing provisional act committed by the first user

15 The system of claim 12, wherein the processor adjusts the actual point account balance of the first user downward when a provisional act committed by the first user has been accepted by the second user by an amount corresponding to the provisional act of the first user at the same time that the actual point account balance of the second user is adjusted upward by the amount corresponding to the provisional act of the first user

16 The system of claim 12, wherein the processor authoπzes a new provisional act by a user after subtracting the amount associated with the provisional act from the provisional point account balance and determines whether the provisional point account balance is above a provisional point account balance threshold

17 The system of claim 9, wherein the provisional point account balance and actual point account balance are displayed to the first and the second users continually

18 The system of claim 9, wherein at a beginning and an end of a session between the online site and the financial institution the provisional point account balance is reconciled against a provisional currency account balance at the financial institution and the actual point account balance is reconciled against an actual currency account balance