WO2019006125A1

WO2019006125A1 - Improved control system for a fuel dispenser

Info

Publication number: WO2019006125A1
Application number: PCT/US2018/040020
Authority: WO
Inventors: Michael A. RACUSIN
Original assignee: Racusin Michael A
Priority date: 2017-06-28
Filing date: 2018-06-28
Publication date: 2019-01-03

Abstract

An improved control system for a fuel dispenser is disclosed that enables fuel dispensers to process prepaid gas cards based upon a discounted wholesale cost or a non-discounted price that is locked in at the time of the purchase without taking delivery. The control system has access to a snap shot of the regional wholesale gasoline costs across an entire region, such as the US, at the time of purchase of the prepaid gas card. This enables the prepaid gas card to provide a discount on the wholesale cost component of a gallon of gas at any location across the entire region. Since the discount only applies to one component of the retail gas price per gallon; namely, the wholesale gas cost per gallon, the control system automatically calculates a discounted retail gas price at the time and location of delivery based upon the discounted or locked in wholesale cost.

Description

IMPROVED CONTROL SYSTEM FOR A FUEL DISPENSER

BACKGROUND OF THE INVENTION

1. Field of the Invention

[0001] The present system relates to fuel dispenser for dispensing gasoline with improved functionality which enables the dispenser to process uniform wholesale discounts across an entire region in which wholesale costs to retailers normally vary and enables payment allocation of pre-payments.

2. Description of the Prior Art

[0002] Fuel dispensers, used in retail gas stations, are widely known in the art. Examples of such fuel dispensers are disclosed in US Patent Nos. 9,302,899; 9, 139,414; and 9,082,248, hereby incorporated by reference. Such fuel dispensers include two main systems; an electronic system and a mechanical system. The mechanical system generally includes an electric motor, a pump, and valves required to control the fuel flow under the control of the electronic system. The electronic system includes an embedded computer to control the operation of the pump and the displays, a magnetic card reader and a bidirectional communication system for communicating with credit card companies relating to the payment of retail sales.

[0003] Typically, a retail customer inserts a credit card into the magnetic card reader in the fuel dispenser. The electronic system reads the data on the magnetic strip on the credit card and checks available credit or balance in the purchaser's account. Once the purchaser's account balance has been verified, the electronic system enables the electric motor that drives the pump to be manually controlled by a lever in the pump handle. A hose is connected to the pump and to a dispensing nozzle. Actuation of the manually operated lever in the nozzle allows for manual control of the pump while the electric motor is enabled.

[0004] In addition to credit cards, prepaid gas discount cards are known for purchasing gas at fuel dispensers at retail gas stations. One problem with such prepaid gas discount cards is that the discount normally applies to the entire per l gallon price. However, the price of a gallon of gas is comprised of multiple components; the per unit (i.e. per gallon) wholesale cost + per unit taxes and per unit local fees, some of which cannot be discounted. The tax components cannot be discounted. The per unit local fees and costs include delivery charges, charges associated with the retail gas station and owner profit. Each of these components is known to vary based upon the location of the retail gas station. As such, known prepaid gas discount cards are generally limited to a region.

[0005] Prepaid gas discount cards which normally provide a fixed discount on the entire unit price of a gallon of gas create a problem for wholesalers because of the variability of component costs of a retail gallon of gas by location, especially wholesale gas cost. Since gas wholesalers operate in regions with varying wholesale gas costs, such prepaid gas discount cards have been of little interest to wholesalers. This is due to the inability of the wholesaler to provide a uniform discount on only the wholesale gas component of the gas price in such regions.

[0006] One attempt to solve this problem for wholesalers is disclosed in Wanasek US Patent Application Publication No. US 2004/0260632 A1 ("Wanasek").

Wanasek discloses a prepaid commodity card in which gallons of gasoline can be pre-purchased from a wholesaler at fixed per unit wholesale cost. There are several problems with the Wanasek methodology. One problem is that the prepayment only covers the wholesale cost of gas and does not include per unit taxes and per unit local fees, thus requiring taxes and local fees to be handled in a separate transaction. Another problem is that the currency of the Wanasek card is gallons making the card unsuitable for use at conventional fuel dispensers that accept conventional credit cards based on cash. Thus, such transactions would have to be handled by an attendant.

[0007] Another problem with the system disclosed in Wanasek publication is that it does not consider regional variances in crude oil prices. As published by NACS, 65% of the price of a gallon of gas is based on the cost of crude oil. As illustrated in Figs. 4A and 4B, there is a wide variance in crude oil prices in different regions across the US which would have a significant impact on the regional wholesale unit gasoline cost. A wholesaler would need to constrain the use of the commodity card to a region. For example, if a user purchased a prepaid commodity card in a region where the crude oil price is $17.38 per barrel, say West Virginia, unless the gas discount card was geographically constrained, the card could theoretically be used in a region, such as Louisiana, where the price per barrel of crude is $28.10 per barrel. The gas discount card would thus need to be constrained to locations where wholesale cost is constant. This would be would be difficult if not impossible to administer for wholesalers.

[0008] Other types of gas discount cards that are based upon a discount to the price of a gallon of gas are also not useful for wholesalers. As mentioned above, taxes on a gallon of gas vary by location. Since taxes cannot be discounted, the discount would need to be apportioned between the other components of a gallon of gas; namely the per unit wholesale gas cost and the per unit local fees-also impossible for a wholesaler to administer.

[0009] Thus, there is a need for a fuel dispenser that is configured to process prepaid gas cards that include a wholesale discount or are based upon a fixed wholesale cost that is locked in at the time of purchase and can be used across regions with differing wholesale costs.

SUMMARY OF THE INVENTION

[0010] An improved control system for a fuel dispenser processes prepaid gas cards which provide a discounted wholesale cost or a non-discounted price that is locked in at the time of the purchase without taking delivery. The control system takes a snap shot of the regional wholesale gasoline costs across an entire region, such as the US, at the time of purchase of the prepaid gas card. This enables the prepaid gas card to provide a discount on the wholesale cost component of a gallon of gas at any location across the entire region. Since the discount only applies to one component of the retail gas price per gallon; namely, the wholesale gas cost per gallon, the control system automatically calculates a discounted retail gas price at the time and location of delivery based upon the discounted or locked in wholesale cost at the time of purchase of the prepaid gas card. The prepaid gas discount card is received in a magnetic card reader at the fuel dispenser in the same manner as conventional credit cards and provides a wholesaler the ability to create an elastic demand for the gas and regain customer loyalty for gas credit cards. One embodiment is described in terms of a single prepayment. Other embodiments are described in terms of additional

prepayments that allow a purchaser to selectively allocate payment for a gas purchase among one or more accounts or pay based upon the weighted average of the prepayments.

DESCRIPTION OF THE DRAWING

[0011] These and other advantages of the present invention will be readily understood with reference to the following specification and attached drawing wherein:

[0012] Fig. 1 A is an elevation view of an exemplary fuel dispenser.

[0013] Fig. 1 B is a block diagram of a fuel dispenser as described herein.

[0014] FIG. 2 is a block diagram of an exemplary system for implementing the fuel dispensers disclosed herein.

[0015] FIG. 3 is an exemplary flow chart of the fuel dispenser disclosed herein.

[0016] Figs. 4A and 4B illustrate a Table of cost in various locations at a fixed point of time.

[0017] FIG. 5A is an exemplary flow chart for the fuel dispenser disclosed herein.

[0018] Figs. 5B and 5C illustrate an exemplary flow chart for the remote server described herein.

[0019] Fig. 6A is an exemplary flow chart that illustrates setting up an initial account.

[0020] Fig. 6B is an exemplary flow chart that illustrates accessing an existing account.

[0021] Fig. 6C is an exemplary flow chart that illustrates optional account allocation options.

[0022] Fig. 7 is illustrative diagram of exemplary account allocation baskets.

[0023] FIG. 8A is an exemplary flow chart for the fuel dispenser disclosed herein.

[0024] Figs. 8B and 8C illustrate an exemplary flow chart for the remote server described herein. [0025] Fig. 9A is an exemplary flow chart that illustrates setting up an initial account.

[0026] Fig. 9B is an exemplary flow chart that illustrates accessing an existing

DETAILED DESCRIPTION

[0027] An improved control system for a fuel dispenser is configured to accept prepaid discount gas cards that only provide a discount on the wholesale gas cost, which is only one component of the retail gas cost. Such prepaid gas discount cards allow a gasoline wholesaler to build brand loyalty and provide an elastic demand curve. More specifically, the wholesaler can increase sales by increasing the wholesale discount or decrease sales by decreasing the discount depending on the current supply of gasoline. The principles of the invention are equally applicable to various regions, including regions outside of the US. For example, the principles of the invention are applicable to Europe as well as other regions outside of the US.

[0028] Multiple embodiments are disclosed. In a first embodiment, illustrated in Figs. 1 -4B, a fuel dispenser for processing a prepaid discount card is illustrated. In this embodiment, the purchaser's prepayment is credited to a single account. Additional prepayments are added to that account. A second embodiment, illustrated in Figs. 5A-7, include a system in which additional prepayments can be stored in different accounts as set forth below, selectable by the purchaser. For example, four credit accounts may be set up for additional pre-purchases. These credit accounts include: first-in, first-out (FIFO), last-in, first-out (LIFO), highest- prepaid, first-out (HPFO) and lowest-prepaid, first-out (LPFO). In a third

embodiment, illustrated in Figs.8A-9B, payment is based upon a weighted average of the pre-payments. The average wholesale price component per gallon is determined, as discussed above and may be displayed, for example, on the purchaser's smart phone. Prepayments may be made, for example, on-line by credit card, debit card, bank transfer, PayPal or other means. [0029] Conventional prepaid gas discount cards which provide a discount on the entire retail unit price are of little use to wholesalers. Such conventional cards provide variable wholesale cost discounts dependent upon the variable prices of other components of the retail gas price.

[0030] There are consumer advantages of a prepaid discount card that provides discounts on the wholesale gas cost component of the retail gas price. For example, the consumer could use the prepaid gas card in any gas station without geographic constraint. Known gas discount cards are typically constrained to a particular region because the various components of the retail gas price vary by location.

[0031] In addition, the wholesale fuel discount system may be used in various applications for purchasing one or more of the following items:

• diesel fuel

• regular grade fuel

• midrange grade fuel

• premium grade fuel

[0032] The improved control system for a fuel dispenser processes prepaid gas cards which provide a discounted wholesale cost or a non-discounted price that is locked in at the time of the purchase of the prepaid gas card without taking delivery. The control system takes a "snap shot" of the regional wholesale gasoline costs across an entire region, such as the US, at the time of purchase of the prepaid gas card. This enables the prepaid gas card to provide a discount on the wholesale cost component of a gallon of gas at any location across the entire region. Since the discount only applies to one component of the retail gas price per gallon; namely, the wholesale gas cost per gallon, the control system automatically calculates a discounted retail gas price at the time and location of delivery based upon the discounted or locked in wholesale cost at the time of purchase of the prepaid gas card. The prepaid gas discount card is received in a magnetic card reader at the fuel dispenser in the same manner as conventional credit cards and provides a wholesaler the ability to create an elastic demand for the gas and regain customer loyalty for gas credit cards.

[0033] The fuel dispenser reads the purchaser's account data on a prepaid fuel discount card and transmits the data to a central server along with the location of the fuel dispenser, the grade of gasoline selected, the current per unit retail price and the number of units pumped. The central server performs "back office" processing and determines a discounted per unit retail price at the time of delivery which applies the discount only to the wholesale price component of the per unit retail fuel price. The central server also determines a maximum number of units that can be pumped based upon the discounted per unit retail price and the purchaser's account balance. The central server sends an enable signal to the fuel dispenser to enable fuel to be pumped up to the maximum number calculated. Once the transaction is complete or the maximum number of units has been pumped, the central server disables the pump and debits the purchaser's account.

[0034] With a fixed discount on the wholesale price components in effect at the time of purchase of the prepaid fuel discount card, a wholesaler can determine and control the discount being applied to the wholesale price components of the per unit retail fuel price across a region. For example, consider a discount of 10% per unit on the wholesale price component of the retail per unit price of fuel. A wholesaler could easily determine the total cost of the discount by multiplying 10% by the number of gallons at a discounted wholesale price component. The novel system allows a wholesaler to increase the discount to increase demand, thus creating an elastic demand for the fuel.

[0035] The system recalculates a discounted retail unit fuel price based upon the discounted wholesale price components. The discounted unit retail price at the time of delivery is determined by subtracting the undiscounted wholesale price component at the time of purchase of the prepaid fuel discount card from the undiscounted retail price at the time of delivery and adding the discounted retail price component at the time of delivery. The discounted retail price is determined as set forth below [0036] The discounted unit retail price is determined as shown below.

• Undiscounted retail unit price = undiscounted unit wholesale price component + local fees + local taxes

• Undiscounted retail unit price - undiscounted wholesale price component = local cost and local taxes

• Discounted retail unit fuel price = undiscounted retail unit fuel price -undiscounted wholesale price component + discounted wholesale price component

[0037] To provide a discount on the wholesale price components on the retail price of a gallon of fuel, the retail price must be recalculated. In one embodiment, the enhanced functionality of the fuel dispenser is based upon "back office" processing by a remote central server that automatically recalculates retail fuel price per gallon based upon a discount on the wholesale price components existing at the location of the fuel dispenser at the time of purchase of the prepaid gas card.

[0038] Various options are contemplated for the discount. For example, the discount may be a fixed, variable or graduated percentage and may be different in different parts of the region. For example, the prepaid fuel discount card can be a percentage discount on the wholesale discount component of the unit retail fuel price at the time of purchase of the card or alternatively a fixed or variable percentage discount, for example 10%, at a different specified point in time.

[0039] With the discount discussed above, the fuel cost will vary at different locations based upon the differences in the wholesale fuel costs, local fees and local taxes. For example, assume the purchaser purchases a prepaid fuel card for $1000. Assume the purchaser takes delivery of 10 gallons of fuel at a location where the undiscounted retail premium price per gallon is $3.50 and the undiscounted premium wholesale price component at that location is $2.50 per gallon at the time of snapshot and the local fees and taxes are $1 .00 per gallon. With a 10% discount on the wholesale price component, the discounted retail price would be 10 x (2.25 + 1 .00) or 32. 50. This amount would be debited from the purchaser's balance on the prepaid fuel card leaving a $967.50 credit balance on the prepaid gas card.

[0040] Now assume that the purchaser goes to another locale to take delivery of 10 more gallons of gas where the undiscounted premium retail price per gallon is $2.50 per gallon and the local taxes and local fees are $0.50 per gallon and the wholesale premium price component at the time of purchase of the prepaid discount fuel card is $2.00 per gallon. Applying the same 10% discount to the wholesale price component at the time of the snap shot, the purchaser's account would be debited for another 10 x ($1 .80 + $$0.50) or $23.00 leaving the purchaser with a credit balance of 944.50.

[0041] The prepaid gas card may be a fixed discount on the wholesale cost, for example 10%, a dollar amount, such as $0.30/gallon or a fixed wholesale cost at the time of purchase of the prepaid gas card based upon a "snapshot" of all the wholesale per unit gas costs in effect across an entire region, e.g. 160,000 retail gas stations in the US, at the time of purchase of the prepaid gas card.

[0042] Conventional fuel dispensers can easily process discounts on the overall per unit price of gas but are unable to process discounts on a per unit price component, such as the wholesale per unit cost. Unlike conventional fuel dispensers, the fuel dispenser in accordance with the invention provides an enhanced ability to process prepaid gas cards with wholesale discounts or fixed wholesale costs at the time of purchase of the prepaid gas card. The prepaid gas card disclosed herein is like a conventional credit card and includes a magnetic strip that enables it to be read by a conventional magnetic card reader.

DEFINITIONS

[0043] Retail gas prices per gallon consist of several components that vary by location, as shown below.

Retail gas price = wholesale gas cost + local fees + taxes

[0044] The wholesale gas cost is the price a retail gas station owner pays to a wholesale supplier. As illustrated in Figs. 4A and 4B, this price varies by location. Taxes relate to the federal, state and local taxes per gallon. Taxes vary by jurisdiction (i.e. location). Local fees include various components including the retail owner's expenses and profit margin.

[0045] As used herein, the following definitions apply:

• Undiscounted wholesale gas cost: This is the wholesale cost component of a gallon of gas at a given retail location.

• Retail gas price: This is the price that a retailer sells a gallon of gas to a customer at a given retail location.

• Discounted wholesale price component: is the discounted

wholesale price component of the retail fuel price based upon a discount applied to all regional wholesale unit fuel component prices in a region of interest, i.e. US, or other smaller regions, such as the state of Illinois, at the time of purchase of the prepaid gas card. The wholesale fuel component is based upon the price a retail gas station owner pays to a wholesale supplier. As illustrated in Figs. 4A and 4B, wholesale fuel prices vary by location and gasoline type. Local taxes relate to the federal, state and local taxes per gallon which also vary by location. Local fees include various components including the retail owner's expenses and margin also vary by location.

Description of a Fuel Dispenser

[0046] An exemplary fuel dispenser is illustrated in Fig. 1 . The fuel dispenser, generally identified with the reference numeral 50, includes a main display 51 for displaying the gallons pumped and the price and an optional supplemental display 52 for advertising, a magnetic card reader 54, a keyboard 56, three price displays 58, 60 and 62 and three paddles 64, 66 and 68, typically for 87, 89 and 93 octane gasoline, to enable selection of the desired grade of gas, all carried by a common free-standing housing 7. The fuel dispenser 50 may incorporate similar

mechanical and electric hardware as disclosed in US Patent Nos.: 7,948,376; 9,302,899; 9, 139,414; and 9,082,248, hereby incorporated by reference.

[0047] Referring to Fig. 1 B, a simplified block diagram of the fuel dispenser 50 is illustrated. The fuel dispenser 50 includes an electronic control system 53 and a mechanical system 54. The mechanical system 74 includes a pump driven by an electric motor and various control valves as known in the art, for example, as disclosed in US Patent Nos.: 7,948,376; 9,302,899; 9, 139,414; and 9,082,248, hereby incorporated by reference.

[0048] The mechanical system 54 is under the control of the electronic control system 53. The electronic control system 53 includes control logic as used in conventional fuel dispensers and includes the logic disclosed below to provide enhanced functionality of the fuel dispenser 50. The electronic control system 53 includes a CPU and memory.

[0049] Fig. 2B illustrates a more detailed block diagram of the electronic control system 53. In particular, the electronic control system 53 includes a computer processing unit (CPU) or microcontroller 57 (Fig. 2B) and memory 59 which may include persistent memory as well as random access memory (RAM). The electronic control system 53 also includes a transceiver 61 for providing a bidirectional communication path with a remote server 70.

[0050] The fuel dispenser 50 includes input devices. A magnetic card reader 54 is provided for reading from a magnetic strip on the back of a prepaid discount fuel card or an embedded chip. The magnetic strip or embedded chip is in encoded with a purchaser's account information. Biometric readers, such as fingerprint readers are also contemplated. A keyboard 56 is provided for typing in passwords, such as zip codes.

[0051] As indicated in Fig. 1 B, several external input signals are applied to the electronic control system 53, as indicated below.

• wholesale per unit gas cost at retail station at the time the prepaid gas card was purchased.

• purchaser account balance

• discount type and amount , e.g. fixed dollar amount per gallon or percentage discount per gallon.

[0052] The electronic control system provides several output signals:

• turn pump on/off • discounted retail per unit price based upon wholesale cost at the time of delivery or alternatively at the time of delivery.

• number of gallons authorized based upon purchaser's account balance and the discounted retail price.

[0053] An exemplary embodiment of a system for implementing fuel dispensers with enhanced functionality as described herein is illustrated in Fig. 2A. The system 100 may include at least one server 70 and one or more storage mediums 1 16 for storing one or more databases. The server 70 may be linked to one or more additional servers (not shown) in a conventional manner in remote geographical areas.

[0054] The server 70 receives sales data from the retail fuel dispensers 104, 106 and 108, located, for example, in different geographical areas in which the local fees and local taxes as well as differences in wholesale unit gasoline costs are different. The fuel dispensers 104, 106 and 108 may be connected to the central server 70 by way of a plurality of conventional communication links 1 10, 1 12 and 1 14, respectively, which may be virtually any conventional wired or wireless communication link that enable bi-directional communication between the central server 102 and the fuel dispensers 104, 106 and 108.

[0055] Each fuel dispenser 104, 106... 108 transmits the following data to the central server 70:

• Location of the fuel dispenser

• Current retail price per gallon of the selected grade (if not

available already at the central server 70)

• Transaction complete signal

• Number of gallons pumped

• Purchaser account data

• On/off control signals for enabling and disabling the electric motor 72 (Fig. 2B) and electrically controlled valves 76.

[0056] In return, the central server 70 recalculates the retail fuel price per gallon based upon a discount applied to the wholesale price component existing at the fuel dispenser where delivery is taken at the time the prepaid fuel discount card is purchased. The central server 70 calculates the maximum number of gallons that can be pumped based upon the recalculated retail price per gallon and the current balance in the purchaser's account. The central server 70 transmits the following data to the fuel dispenser 104, 106... 108, where delivery is taken:

• On/off control of the pump

• Number of gallons pumped

[0057] Optionally, the central server 70 may transmit the discounted retail price for display on the displays 58, 60 and 62 (Fig. 1 A) and the total price of the transaction based upon the discounted retail price.

[0058] The discounted retail price per gallon may be used to drive various displays on the fuel dispensers 104, 106... 108 including the retail price per gallon displays 58, 60 and 62 for the various grades of fuel as well as the display 51 that displays the number of gallons pumped and the total cost therefor.

[0059] Based upon the purchaser's available account balance or available credit, the central server 70 determines the maximum number of gallons that can be dispensed based upon the discounted retail gas price and enables the electric motor 72 and the electrically controlled valves to be enabled under the control of the hand-operated lever in the nozzle up to the maximum number of units of fuel calculated, as discussed above. Should the maximum number of gallons be reached before the hand operated lever in the nozzle is released, the central server 70 will send an off signal to the on/off control 78 to turn off the pump 74 off at the maximum number. Alternatively, the pump 74 is turned off when the desired number of gallons is reached, or the purchaser's tank is full.

[0060] After the gasoline dispensing is terminated, either by the purchaser or automatically when the purchaser's gas tank is full, or when the maximum number of gallons is reached, the fuel dispenser 104, 106... 108 may send a transaction complete signal back to the central server 70. Upon receipt of that signal, the central server 70 adjusts the purchaser's account balance based upon the number of gallons pumped and the recalculated unit retail price. The revised balance is stored by the central server 70 in the purchaser's account database 90 (Fig. 2B). [0061] The purchaser's account is subsequently debited for the discounted number of gallons pumped. In one embodiment, the discount is displayed at the pump in the price per gallon and the total transaction price during the transaction. In an alternative embodiment, the undiscounted unit retail price and the

undiscounted total transaction price are displayed at the pump during the transaction. In latter embodiments, the discount is only reflected on the

purchaser's account.

[0062] A detailed block diagram of the fuel dispenser 50 and the central server 70 is illustrated in Fig. 2B. The central server 70 includes a transceiver 82 for communicating with the transceiver 61 on the fuel dispenser 50. It is to be understood that the communication between the fuel dispenser 50 and the central server 70 may not be direct as shown. For example, the communication path may include a transceiver (not shown) in the fuel station which intermediates

communications between the fuel dispensers and the central server. The fuel station may include a transceiver for receiving all communications from the various fuel dispensers and transmitting those communications to the central server. Similarly, communications received from the central server 70 received by the transceiver in the fuel station may be re-transmitted to the individual fuel dispensers. Other communication configurations are contemplated. The direct communication path illustrated in Fig. 1 B between the fuel dispenser 50 and the central server is provided for simplicity.

[0063] The central server 70 includes a CPU or microcontroller 84 and memory 86, such as RAM memory and persistent memory. The central server 70 is provided with access to a wholesale price database 88 and a purchaser's account database 90. Turning to Fig. 2B, the central server 70 has access to one or more data sources. For example, a database may be stored on a storage medium 1 16 that is accessible by the central server 70. The database 1 16 may include purchaser account data; purchaser's account number, the current credit balance and discount and the type and amount of the discount. An external data source 103 may be provided for storing various data, such as the local wholesale gas costs across an entire region, such as, the US, at various times including the time of purchase of the prepaid gas card or alternatively, the time of delivery.

[0064] The wholesale price database 88 includes the snapshot of all the wholesale price components applicable to all fuel dispensers in a region, existing at the time of purchase of the prepaid fuel discount card or at a specified time. The purchasers account database 90 includes at least the accounts of all participating purchasers, the amount of their prepayments, their current balance and the amount and type of the discount, as well as their current account allocation, as discussed below. The databases 88 and 90 may be part of the central server 70 or may be remote and connected to the central server 70 by various communication networks, such as the Internet, cellular or other networks.

[0065] The fuel dispensers 104, 106 and 108 transmit representative information to the server 102 regarding the identification and/or location of the fuel dispenser 104, 106 and 108 where the purchase was made and the amount of purchase including the number of gallons and optionally the date and time of the purchase. The central server 102 grabs the location of the fuel dispenser 104, 106 and 108 where gas is being purchased. The location of the fuel dispenser 104, 106 and 108 along with the account data and the amount and type of discount allow the server 102 to determine the discounted wholesale gas cost at the location of the fuel dispenser. Based upon this data, the server 102 determines, i.e. recalculates, a discounted retail per unit price at the time of delivery and debits the purchaser's account accordingly and optionally displays the discounted retail price the fuel dispenser's displays 51 , 58, 60 and 62.

[0066] To determine the discounted retail price per gallon at the time of purchase, the server 102 takes the discounted wholesale cost at the time of purchase of the prepaid gas card minus the undiscounted wholesale cost at the time of purchase of the gas (which is likely a negative number) plus the undiscounted retail price at the time of purchase. The discounted retail gas price is determined as set forth below

• Undiscounted retail gas price = undiscounted wholesale cost + local fees and local taxes • Undiscounted retail gas price - undiscounted wholesale cost = local cost and local taxes

• Discounted retail gas price = undiscounted retail gas price- undiscounted wholesale cost + discounted wholesale gas cost

[0067] For example, if the undiscounted retail price is $3.00 per gallon and the undiscounted wholesale cost at the location of delivery at the time of purchase of the prepaid gas card is $2.50 and the discounted wholesale cost at the time of delivery at the location of delivery is $2.00, the discounted retail price will be $2.50 per gallon.

[0068] Based upon the purchaser's available account balance or available credit, the central server 70 determines the maximum number of gallons that can be dispensed based upon the discounted retail gas price and enables the pump to be turned on under the control of the hand-operated lever in the nozzle up to the maximum number. Should the maximum number of gallons be reached before the hand operated lever in the nozzle is released, the system will turn the pump off.

[0069] After the gasoline dispensing is terminated either by the purchaser or automatically when the purchaser's gas tank is full or when the maximum number of gallons is reached, the fuel dispenser 104, 106 and 108 sends a signal back to the central server 70 that the sale is concluded. Upon receipt of that signal, the central server 70 adjusts the purchaser's account balance. The revised balance is stored by the central server 70.

FIRST EMBODIMENT

[0070] The first embodiment is illustrated in Figs. 1 A, 1 B, 2A, 2B and 3. It is to be understood that the improved functionality of the fuel dispenser is not limited to the sequence of steps set forth in Fig. 3. The process may be executed in different sequences to reach the end results, discussed above.

[0071] The system waits in step 120 for a prepaid gas card to be read by a card reader 54 (Fig. 1 ). Once a magnetic strip or an embedded chip is read, the purchaser account number along with the transaction data is sent to the central server 102 in step 122. The system then determines if the purchaser balance is valid in step 124. If the account is not valid, the system returns to step 120 and waits for another prepaid gas card to be swiped at the POS terminal 104, 106 and 108. In this situation, a message, such as "Account Not Valid", may optionally be displayed by the display 52 (Fig. 1 ), as indicated in step 126.

[0072] If the purchaser's account is valid, the system uses the location data from the fuel dispenser read data from the fuel dispenser 104, 106 and 108 to determine its geographic location. The location of the fuel dispenser along with the purchaser's account data allow the system to access the following data from the storage device 1 16 (Fig. 2A) and/or the remote data source 103:

• Undiscounted retail price at the location of the fuel dispenser at the time of purchase of gas (step 127)

• Discounted wholesale cost at the time of purchase of the gas card (step 130)

• Undiscounted retail price at the time of purchase of the gas. (step 131 )

• Amount and type of discount

[0073] In step 132, the server 102 determines the discounted retail price, as mentioned above. In step 134, the server 102 determines the number of gallons that can be purchased based upon the discounted retail gas price per gallon and the credit balance in the purchaser's account. In step 136, the central server 102 signals the pump at the fuel dispenser to turn on. Once the pump is turned on, the central server 102 provides a signal to the fuel dispenser 104, 106 and 108 to optionally display the adjusted price per gallon, total price at the adjusted price and the number of gallons pumped. The total number of gallons dispensed by the fuel dispenser 102, 104 and 106 is displayed by the display 52 (Fig. 1 ) in step 138 based upon the discounted retail price. The purchaser's account is adjusted and stored as an account balance by the server 102 in step 140.

[0074] The fuel dispenser 50 will allow the pump to stay on up to the limit of the purchaser's dollar amount. Once the pumped gas reaches the limit, the central server 102 sends a signal to the POS terminal to turn it off. Alternatively, as discussed above, the pump may be turned off at the fuel dispenser 104, 106 and 108 either manually by the purchaser or automatically when the purchaser's gas tank is full or when the maximum number of gallons is reached.

[0075] The prepaid card discounts can be based upon a percentage of wholesale cost at the time of purchase of the card or alternatively a fixed wholesale cost at the time of purchase of the card. These discounts may be based upon existing wholesale costs at fuel dispensers across an entire region at the time of purchase pf the prepaid discount card or at the time of delivery. Alternatively, the system can be implemented by a credit card that can be used to provide the discounts mentioned above but at the time of activation of the credit card or alternatively reaching a predetermined sales goal.

SECOND EMBODIMENT

[0076] The second embodiment is illustrated in Figs. 5A-5C, 6A-6C and 7 and includes Figs. 1A, 1 B, 2A, 2B .An exemplary flow chart for a fuel dispenser 104, 106... 108 is illustrated in Fig. 5A. An exemplary flow chart for the central server 70 is illustrated in Fig. 5B. It is to be understood that the improved functionality of the fuel dispensers 104, 106 and 108 is not limited to the sequence of steps set forth in Figs. 5A-5C. The steps may be executed in different sequences to reach the end results discussed above.

[0077] Referring to Fig. 5A, the system waits in step 120 for a prepaid fuel discount card to be inserted in the card reader 54 (Fig. 1A) on the fuel dispenser 50 and read by the CPU 57 (Fig. 2B). Once a magnetic strip or an embedded chip is read the CPU 57, the account information is sent to the central server 70 by way of the transceiver 61 in step 122 (Fig. 3A). The account information is received by the transceiver 82 at the central server 70. The CPU 84 in the central server 70 reads the account number and checks in step 124 whether the purchaser's account is valid. If the purchaser's account is not valid, the central server 70 signals the electronic control system 53 (Fig. 2B) that the purchaser's account is not valid in step 124. Upon receipt of this information, the electronic control system 53 returns to step 120 and awaits a prepaid fuel discount card to be inserted into the magnetic card reader 54 on the fuel dispenser 50 (Fig. 1 ). The CPU 57 may also send data to the display 51 or 52 on the fuel dispenser 50 indicating "Account Not Valid".

[0078] If the purchaser's account is valid, the CPU 84 in the central server 70 recalculates the unit retail fuel price, as discussed below, and transmits it back to the fuel dispenser 50. The CPU 57 in the electronic control system awaits the response from the central server 70 in step 129. Once the response is received, the discounted retail price may optionally be written to the displays 58, 60 and 62 by way of the CPU 57. In step 130, the electric motor 72 and electrically controlled valves 76 (Fig. 1 B) are enabled up to maximum number of gallons based upon the discounted retail fuel price and the balance in the purchaser's account under the control of the manual lever (not shown) in the handle 57. Alternatively, the fuel dispenser 50 is disabled from pumping fuel when the handle 57 (Fig. 1A) is hung up in the holster 59 in on the fuel dispenser housing 71 . Once the handle 57 is hung up in the holster 59, the electronic control system 53 transmits a transaction complete signal to the central server 70 in step 132 and returns to step 120.

[0079] An exemplary flow chart for the central server 70 is illustrated in Figs. 5B and 5C. Initially, the central server 70 awaits purchaser account information from the electronic control system 72 (Fig. 1 B) in step 140. Once the purchaser's account information is received, the CPU 84 looks up the purchaser's account data in the purchasers account database 90 in step 142 and determines if the purchaser's account is valid in step 144. If the purchaser's account is not valid, a signal indicating the same is sent to the CPU 70 in the electronic control system 53 in step 143. The CPU 84 then returns to step 140.

[0080] If the purchasers account is valid, as determined in step 144, the CPU 84 looks up the date of purchase of the prepaid fuel discount card from the

purchaser's account database 90. The CPU 84 utilizes that date to access the snapshot of wholesale price components existing on the date of purchase of the prepaid fuel discount card from the wholesale price database 88. To determine the wholesale price component at the fuel dispenser 50 where delivery is taken, the CPU 84 utilizes the location data received from the electronic control system 72 (Fig. 1 B) and determines the undiscounted wholesale price component of the retail gas price on the date of the snapshot in step 146.

[0081] The CPU 84 also accesses the purchaser's account data from the purchaser's account data base 90 to determine the amount of the discount assigned to the purchaser's account. This data is used to calculate a discounted retail price, as discussed above, based upon the existing per unit retail price received from the fuel dispenser 50, the undiscounted wholesale price component existing at the time the prepaid fuel card was purchased received from the wholesale price database 88, and a discounted wholesale price component. The discounted wholesale price component is determined by applying the assigned discount, available in the purchaser's account, to arrive at a discounted retail price, as discussed above in step 148.

[0082] In step 150, the CPU 84 determines the maximum number of units of fuel that can be delivered to the purchaser based upon the discounted retail price and the balance in the purchaser's account. In step 152, the discounted unit retail fuel price is transmitted to the fuel dispenser in step 152 along with an ON signal that is applied to the on/off control subsystem 78 to enable the electric system 55 in step 154.

[0083] Both the CPU 57 in the electronic control system 53 and the CPU 84 in the central server 70 monitor the number of gallons pumped based on data received from the fuel dispenser 50 in step 156. If the maximum number of gallons is reached, the central server 70 generates an OFF signal that is applied to the on/off control subsystem 78 to disable the electric system 55 (Fig. 1 B) in step 158. Subsequently, the CPU 84 debits the purchaser's account in step 160 for the number of gallons pumped The CPU 84 provides a running total of the number of gallons and the cost of the gallons pumped for display on the on the display 51 (Fig. 1 ) The central server 70 monitors a transaction complete signal from the fuel dispenser in step 162. If a transaction complete signal is received, the system goes to step 158.

[0084] The account is continually updated to allow access to all deposits. The system may process a monthly statement to be sent to the purchaser, as indicated in step 161 . The statement will illustrate the actual charges for the gas for each purchase, i.e. charges with the discount applied. The statement will also include the balance in the account as currently distributed in the baskets 200-206 (Fig. 7) and any additional deposits since the last statement.

[0085] Figs. 6A-6C and 7 illustrate an optional aspect of the invention which relates to allocation of funds in the purchaser's account once the purchaser makes deposits to their account after the initial deposit. The best way to explain the concept is by example. Suppose the purchaser initially deposits $500 in their prepaid gas discount card account and gets a locked-in wholesale component price at a reference location after the discount is applied of $2.00 per gallon. Now consider the purchaser decides to add additional money to the account before his initial deposit is completely depleted. At the time of the second deposit, the purchaser gets a locked in wholesale component price of $2.50 per gallon after the discount is applied at the reference location. Clearly gasoline delivered debited from the second deposit would be more expensive to the purchaser than from the first deposit.

[0086] The deposits are associated with different asset management accounts or baskets 200-206 with different criteria (Fig. 7). These baskets allow a user to specify the basket to be debited for each gas delivery. Each deposit is associated with all four baskets at the same time according to the criteria below. At all times, each basket has the same deposits and the total amount of cash in all baskets is the same. Each basket is defined below.

[0087] "First in First out" (FIFO)- All deposits are associated with a FIFO basket 200 in the order that the deposits are made.

[0088] "Last in First out "(LIFO)-The deposits in this basket are the same as the deposits in the FIFO basket in reverse order of the deposits in the FIFO

[0089] "Highest Prepaid First out" (HPFO)- This basket 202 is based on a deposit for the highest locked in wholesale component price after the discount is applied at a reference location and first consumed. [0090] "Lowest Prepaid First out" (LPFO)- This basket 204 is based on a deposit for the lowest locked in wholesale component price after the discount is applied at a reference location and first consumed.

[0091] The best way to understand the asset management accounts is by way of the examples below. These examples are based upon the cost of premium at a station at 307 East 89th Street in New York City.

[0092] Example 1 is based on four deposits and two purchases and is illustrated in the tables below. As shown below in Example 1 , deposits were made on Jan 3, March 1 1 , May 25 and July 4. As shown, the wholesale price components for each deposit varies from $2.30 to $2.60 per gallon. These deposits are grouped in all four baskets 200-206 by different criteria; namely FIFO, LIFO, HPFO and LPFO, each of which forms an asset management account. At each gasoline delivery, the user can designate the asset management account to be debited for the gasoline.

Example 1

$250@ $250@ $150@ $300@

$2.40 2.50 $2.30 $2.60

Basket Basket Basket Basket

Total Total Total Total

$900 $900 $900 $900

Basket Basket Basket Basket

200 206 202 204

[0093] Example 2 illustrates a $50 delivery of premium on Aug. 1 using a debit from the HPFO basket 202.

Example 2

$250@ $250@ $150@ $250@

$2.40 2.50 $2.30 $2.60

Basket Basket Basket Basket

Total Total Total Total

$850 $850 $850 $850

Basket Basket Basket Basket

200 206 202 204

[0094] In example 2, since the HPFO basket was selected to be debited for the $50 delivery of gas, the May 25 deposit being the highest was decreased by $50 in all four baskets 200-206.

[0095] Example 3 illustrates a $40 delivery using a debit from the LPFO basket 204

Example 3

$2.60 $2.30 $2.40 2.50

July 4 Jan 3 March 1 1 May 25

$250@ $250@ $1 10© $250@

$2.40 2.50 $2.30 $2.60

Basket Basket Basket Basket

Total Total Total Total

$810 $810 $810 $810

Basket Basket Basket Basket

200 206 202 204

[0096] In example 3, since the LPFO basket was selected to be debited for the $40 delivery of gas, the March 1 1 deposit being the lowest was decreased by $40 in all four baskets 200-206.

[0097] After the four deposits, the user started off with $900. After the $50 delivery, the balance dropped to $850. After the $40 delivery, the balance dropped to $810 even though different cash management accounts were used for each purchase.

[0098] Exemplary flow diagrams are illustrated in Figs. 4A-4C for implementing the optional allocation aspect of the invention. Turning first to Fig. 4A, an exemplary method of setting up the asset management accounts is illustrated. Various methods are contemplated for setting up account. One such method is by way of a web-based portal 200. The portal allows purchasers to set up the asset management accounts, make deposits and adjust their allocation option as desired, for example by way of any Internet connected computing device, such as a smart phone.

[0099] Turning to Fig. 4A, in step 222, after the portal is accessed, the user is prompted whether a new account is being opened. If so, the purchaser's demographic data is entered in step 224. Next, the system checks in step 226 whether the purchaser already has an account. If so, the purchaser is requested to log in to their existing account in step 228 (Fig. 4B). If not, the purchaser is requested to enter payment information in step 228 for the first deposit, such as direct bank transfer, credit card, debit card, PayPal, etc. and submit payment in step 230.

[0100] The system verifies the payment in step 232. If the payment is not verified, the system may post a note in step 234 indicating that the payment was not verified and return to step 228. If the payment is verified, the system proceeds to step 236 to establish account number and interactively set up log in credentials with the purchaser. The system then credits the initial payment which is credited to all four asset management accounts 200-206, as shown below. For example, assume the user makes an initial $350 payment and locks in the wholesale gas component gas component price at $2.10. See Example 4 below. The deposit is listed in all four asset management accounts 200-206.

Example 4

[0101] Next assume the user makes a second deposit of $250 and locks in a wholesale gas component price at $2.50. See Example 5 below. Example 5

[0102] In Example 4, the initial deposit is listed in all four asset management accounts 200-206. When subsequent deposits are made, for example, as illustrated in Example 5, the priority of the deposits in each asset management account 200-206 is adjusted according to the criteria of each of the accounts, i.e. FIFO, LIFO, HPFO and LPFO.

[0103] Figs. 4B and 4C illustrate exemplary flow diagrams after the initial account is established, as discussed above. Referring first to Fig. 4B, the purchaser logs onto the portal in step 228. In step 240, the system associates the log in credentials with the purchaser's account number. In step 242, the system queries whether a balance inquiry is desired. If so, the purchaser's current balance is provided in step 244. If a balance inquiry is not requested, or alternatively if the current balances were requested and provided, the system proceeds to step 246 and queries whether another transaction is requested. If not, the transaction is terminated in step 248. [0104] If another transaction is requested, the system proceeds to step 250 and queries the type of the transaction desired by the purchaser. In step 252, the system queries whether funds are to be added. If not, the system proceeds to step 268 (Fig. 4C) and assumes that the user is specifying an asset management account 200-206 for payment of a delivery.

[0105] If the user indicates that funds are to be added, the system queries in step 252, the amount of the additional funds to be added to the account. In steps 254 and 256, the payment is initiated. In step 258, the payment transfer is verified. If it is not verified, the system proceeds to step 248 and terminates the transaction. If the payment is verified, the system proceeds to step 260 and lists the new deposit into the four asset management accounts, represented by the baskets 200-206 (Fig. 5) according to the basket criteria, i.e., FIFO, LIFO, HPFO and LPFO, as discussed above. The system also calculates the basket balance.

[0106] Fig. 4C illustrates an exemplary flow diagram for selection an asset management account. The user is prompted with the four asset management accounts for purchase in step 267. A purchaser can specify an asset

management account any time before or after gas delivery, for example, by way of a smart phone. In steps 268-274, the system determines the asset

management account 200-206 selected by the user for payment of a delivery. If no asset management accounts 200-206 are selected, the system may optionally use the last selected asset management account 200-206.

[0107] The selected asset management account is processed in step 280. This includes providing payment for the transaction in a conventional manner based upon the discounted retail price from the server 70 (Fig. 1 B). The system also debits the selected deposit for the transaction and readjusts the balances the asset management accounts, as illustrated above.

EMBODIMENT 3

[0108] The third embodiment is illustrated in in Figs. 8B and 8C and includes Figs. 1 A, 1 B, 2A and 2B. Initially, the central server 70 awaits purchaser account information from the electronic control system 72 (Fig. 1 B) in step 140. Once the purchaser's account information is received, the CPU 84 looks up the purchaser's account data in the purchasers account database 90 in step 142 and determines if the purchaser's account is valid in step 143. If the purchaser's account is not valid, a signal indicating the same is sent to the CPU 70 in the electronic control system 53 in step 144. The CPU 84 then returns to step 140.

[0109] If the purchasers account is valid, as determined in step 144, the CPU 84 looks up the date of purchase of the prepaid fuel discount card from the

[0110] The CPU 84 also accesses the purchaser's account data from the purchasers account data base 90 to determine the amount and type of discount assigned to the purchaser's account. The CPU 84 also determines the average weighted wholesale price component based upon the discounted wholesale price components existing at the times of multiple prepayments This data is used to calculate a discounted retail price, as discussed above, based upon the existing per unit retail price received from the fuel dispenser 50, the undiscounted wholesale price component existing at the time the prepaid fuel card was purchased received from the wholesale price database 88, and an average weighted discounted wholesale price component. The average weighted discounted wholesale price component is used to arrive at a discounted retail price in step 148, as discussed above.

[0111] In step 150, the CPU 84 determines the maximum number of units of fuel that can be delivered to the purchaser based upon the discounted retail price and the balance in the purchaser's account. In step 152, the discounted unit retail fuel price is transmitted to the fuel dispenser in step 152 along with an ON signal that is applied to the on/off control subsystem 78 to enable the electric system 55 in step 154. [0112] Both the CPU 57 in the electronic control system 53 and the CPU 84 in the central server 70 monitor the number of gallons pumped based on data received from the fuel dispenser 50 in step 156. If the maximum number of gallons is reached, the central server 70 generates an OFF signal that is applied to the on/off control subsystem 78 to disable the electric system 55 (Fig. 2B) in step 158. Subsequently, the CPU 84 debits the purchaser's account in step 160 for the number of gallons pumped The CPU 84 provides a running total of the number of gallons and the cost of the gallons pumped for display on the on the display 51 (Fig. 1 ) The central server 70 monitors a transaction complete signal from the fuel dispenser in step 162. If a transaction complete signal is received, the system goes to step 158.

[0113] Periodically, for example, monthly, the system processes a monthly statement to be sent to the purchaser, as indicated in step 161 . The statement will illustrate the actual charges for the gas for each purchase, i.e. charges with the discount applied. The statement will also include the balance in the account based upon prepayments that are segregated including any additional deposits and allocations, i.e. debits, since the last statement.

[0114] Figs. 9A & 9B illustrate an optional aspect of the invention which relates to a payment allocation system which enables a purchaser to make multiple prepaid deposits of different amounts at different times in which the wholesale price components may vary and pay for gas deliveries with a weighted average of those wholesale price components.

[0115] The best way to understand the payment allocation system is by way of an example below. The table below lists three deposits at different wholesale price component discounts. As used below, the prices refer to wholesale price components per gallon.

1/5/17 150 2.50 20% 2.00 2.00

2.00 1/9/17 40

2.00 1/15/17 30

1/20/17 200 2.80 25% 2.10 2.0714

2.0714 2/2/17 35

2.0714 2/8/17 25

2.0714 2/1 1/17 45

2.0714 2/17/17 50

2/20/17 300 2.30 15% 1 .955 1.9892

1.9892 2/21/17 44

1.9892 2/27/17 38

1.9892 3/1/17 42

1.9892 3/9/17 31

[0116] The columns in the table are described below.

Bal.: the current balance in the user's account.

Date of Dep.: the date the user deposited funds in the account.

Amt. of Dep.: the amount of funds the user deposited into their account Locked in Whol. Price per gallon: the locked in wholesale price component per gallon at the time of deposit.

% Disc: the percentage per gallon discount of the wholesale price component at the time of deposit.

Disc. Whol. Price: the discounted wholesale price component in dollars. Wghtd. Disc. Whol. Price/gallon.: the weighted average of the wholesale price components as determined at each deposit. • Date of Con.: the date of consumption or the date the user takes delivery of gas.

• $ Amt. of Con.: the dollar amount of consumption which includes the

average weighted discounted wholesale price components per gallon + the local fees and local taxes multiplied by the number of gallons consumed.

[0117] As shown above, deposits were made on January 5, January 20 and Feb. 20. As shown, the wholesale price components for each deposit varies from $2.30 to $2.80 per gallon. The system determines the weighted average wholesale price component per gallon after each deposit is made and discounted and uses that number to determine the discounted retail price per gallon, as discussed above. This discounted retail price per gallon may be displayed on the display 51 (Fig. 1 A) along with the amount of the completed transaction. The purchaser's account is debited using this discounted retail price per gallon. When the transaction is complete, as determined by the on/off control system 78, the fuel dispenser 50 (Fig. 1 B) transmits the number of gallons pumped to the server 70 to be debited from the purchaser's account and displayed on the display 51 (Fig. 1A).

[0118] Referring to the table, the average weighted wholesale price per gallon is calculated each time a deposit is made to the account. The average weighted wholesale price component for each deposit normally varies as subsequent deposits are made. With reference to the table, the average weighted wholesale price after the initial deposit is $2.00 per gallon. When the second deposit is made, $80 remained from the first deposit. Thus, the average weighted wholesale price component per gallon at the time of the second deposit is [($80 X $2.00) + ($200 X $2.10)] / $280 yields a weighted average wholesale price component of $2.0714 per gallon. When the third deposit is made, the user's account has a balance of $125. The average weighted wholesale price component per gallon at the time of the third deposit is [($125 X $2.0714) + ($300 X $1 .955)] / $425 yields a weighted average wholesale price component of $1 .9892 per gallon.

[0119] Exemplary flow diagrams are illustrated in Figs. 9A and B for

implementing the optional allocation aspect of the invention. Turning first to Fig. 9A, an exemplary method of setting up the payment allocation system is illustrated. Various methods are contemplated for setting up account. One such method is by way of a web-based portal 200. The portal allows purchasers to set up the payment allocation system make deposits and adjust the allocation option as desired, for example, by way of any Internet connected computing device, such as a smart phone.

[0120] Turning to Fig. 9A, in step 222, after the portal is accessed, the user is prompted whether a new account is being opened. If so, the purchaser's data is entered in step 224. Next, the system checks in step 226 whether the purchaser already has an account. If so, the purchaser is requested to log in to their existing account in step 228 (Fig. 9B). If not, the purchaser is requested to enter payment information in step 228 for the first deposit, such as direct bank transfer, credit card, debit card, PayPal, etc. and submit payment in step 230.

[0121] The system verifies the payment in step 232. If the payment is not verified, the system may post a note in step 234 indicating that the payment was not verified and return to step 228. If the payment is verified, the system proceeds to step 236 to establish account number and credit the payment to the account in step 238 and interactively set up log in credentials with the purchaser.

[0122] Referring first to Fig. 9B, the purchaser logs onto the portal in step 228. In step 240, the system associates the log in credentials with the purchaser's account number. In step 242, the system queries whether a balance inquiry is desired. If so, the purchaser's current balance is provided in step 244. If a balance inquiry is not requested, or alternatively if the current balances were requested and provided, the system proceeds to step 246 and queries whether another transaction is requested. If not, the transaction is terminated in step 248.

[0123] If another transaction is requested, the system proceeds to step 250 and assumes the purchaser desires to add funds. If the user indicates that funds are to be added, the system queries in step 252, the amount of the additional funds to be added to the account. In steps 254 and 256, the payment is initiated. In step 258, the payment transfer is verified. If it is not verified, the system proceeds to step 248 and terminates the transaction. If the payment is verified, the system proceeds to step 260 and credits the new deposit to the purchaser's account.

[0124] Obviously, many modifications and variations of the present invention are possible in light of the above teachings. Thus, it is to be understood that, within the scope of the appended claims, the invention may be practiced otherwise than as specifically described above.

Claims

I claim:

1 . A fuel dispenser for dispensing gasoline, said fuel dispenser comprising: a mechanical system which includes a pump and an electric motor for pumping gasoline; and an electronic control system which includes a computer and memory, said electronic control system including a magnetic card reader for reading a magnetic strip on a prepaid gas card which includes data regarding the purchaser's account and type and amount of the discount on a wholesale cost component of the gasoline price as well as data regarding the an undiscounted wholesale cost component at the location of the fuel dispenser at the time of purchase of the gas discount card and recalculating the retail price per gallon based upon such data.

2. The fuel dispenser recited in claim 1 , wherein said electronic control system is configured to display said recalculated retail fuel price on said fuel dispenser display.

3. The fuel dispenser recited in claim 1 , wherein said electronic control system is configured to recalculate said retail fuel price at a fixed wholesale gas cost.

4. The fuel dispenser recited in claim 1 , wherein said electronic control system is configured to recalculate said retail fuel price at a fixed wholesale gas cost at the time the prepaid gas card is purchased.

5. The fuel dispenser recited in claim 1 , wherein said electronic control system is configured to recalculate said retail fuel price based upon a percentage of the wholesale gas cost at the time of delivery.

6. The fuel dispenser recited in claim 1 , wherein said electronic control system is configured to recalculate said retail fuel price based upon a percentage of the wholesale gas cost at the time of purchase of the prepaid gas card.

7. The fuel dispenser recited in claim 1 , wherein said electronic control system is configured to recalculate said retail fuel price based upon a fixed dollar amount discount of the wholesale gas cost at the time of delivery.

8. The fuel dispenser recited in claim 1 , wherein said electronic control system is configured to recalculate said retail fuel price based upon a fixed dollar amount discount of the wholesale gas cost at the time of purchase of the prepaid gas card.

9. A fuel dispenser for dispensing gasoline, said fuel dispenser comprising: a mechanical system which includes a pump and an electric motor for pumping gasoline; and an electronic control system which includes a computer and memory, said electronic control system including a magnetic card reader for reading a magnetic strip on a gas credit card which includes data regarding the purchaser's account and type and amount of the discount on a wholesale cost component of the gasoline price as well as data regarding the an undiscounted wholesale cost component at the location of the fuel dispenser at the time of activation of the gas credit card and recalculating the retail price per gallon based upon such data.

10. A wholesale fuel discount system for enabling a supplier to provide a fuel discount only on a wholesale price component of the retail price of a unit of fuel based upon the location of delivery of the fuel and a purchaser's account information, the system comprising: a fuel dispenser including a mechanical system which includes an electric system and a mechanical system, the system comprising a pump for pumping fuel; an electric motor for driving said pump; at least one electrically controlled valve; and an ON/OFF control subsystem for selectively enabling said electric system; and an electronic control system comprising: a magnetic card reader for reading a magnetic strip or chip on a prepaid wholesale fuel discount card that provides a purchaser with a discount on a wholesale price component of the per unit retail fuel price for a grade of fuel, said magnetic strip or chip including the purchaser's account information; a bidirectional communication subsystem for transmitting information to an external central server including the location of the fuel dispenser where fuel is being delivered, the purchaser's account information, the undiscounted retail price at the fuel dispenser where fuel is being delivered, the number of gallons pumped and a transaction complete signal and receiving information from said external central server regarding a discounted retail price based upon a discounted wholesale price component and ON/OFF signals for enabling the electric system up to the amount of cash credit in the purchaser's account based upon the discounted retail price per gallon; and an external central server in communication with said electronic control system in said fuel dispenser, said central server configured to receive

information from said electronic control system including the location of the fuel dispenser, the number of gallons pumped, the undiscounted retail price at the fuel dispenser where fuel is delivered, and the purchaser's account information, said central server further configured to obtain information from a purchasers database including the amount of discount of the wholesale price component assigned to the purchaser's account and obtain information from a wholesale price database regarding the undiscounted wholesale price component at the location of the fuel dispenser at the place of delivery but at the time the prepaid fuel discount card was purchased, said central server configured to use the information to calculate a discounted wholesale price component and discounted retail per unit price based upon said discounted wholesale price component and transmit the discounted per unit retail price to the electronic control system in the fuel dispenser .

1 1 . The wholesale fuel discount system as recited in claim 10, wherein said discounted retail per unit price is equal to the undiscounted retail price minus the undiscounted wholesale unit price component plus the discounted unit wholesale price component.

12. The wholesale fuel discount system as recited in claim 10, wherein said central server takes a snapshot of all wholesale unit fuel price components existing at fuel dispensers across a region at the time the prepaid wholesale discount card is purchased and applies a wholesale fuel discount to the wholesale price component existing at fuel dispenser at the location of delivery at the time of purchase of the prepaid wholesale discount card.

13. The wholesale fuel discount system as recited in claim 10, wherein said central server takes a snapshot of all the wholesale fuel price components for a selected grade of gasoline existing across the region at a specified time and applies a wholesale fuel discount to the wholesale price component existing at fuel dispenser at the specified time.

14. The wholesale fuel discount system as recited in claim 10, wherein said discounted wholesale price is a percentage discount of the undiscounted wholesale price at the location of the fuel dispenser at the time of delivery.

15. The wholesale fuel discount system as recited in claim 13, wherein said region is the US.

16. The wholesale fuel discount system as recited in claim 10, wherein said prepaid wholesale discount card is only usable to purchase a specific brand of fuel.

17. The wholesale fuel discount system as recited in claim 10, wherein said fuel is selected from the group of (premium, mid-range, regular and diesel grades).

18. A method for discounting only a wholesale component of the retail fuel price of a selected grade of fuel per gallon without discounting the retail price components comprising the steps of: providing a discount on the unit wholesale price component of the unit retail fuel price of a selected grade of fuel at a fuel dispenser based upon prepayment of a quantity of fuel, by; issuing a prepaid wholesale discount card for providing a discount on the wholesale price component of a unit of fuel and an account for purchaser's that prepay for fuel, wherein said account includes purchaser information, an initial cash value and the amount and type of the discount; accepting a purchaser's initial deposit and crediting their account; taking a snapshot of all wholesale price components of a selected grade of at all fuel dispensers across a region at the time of purchase of the wholesale discount card; receiving data from fuel dispensers in response to said wholesale discount card being inserted into a magnetic card reader in a fuel dispenser in a location where said purchaser takes delivery, said data including the location of the fuel dispenser, the purchaser's account data and the posted retail price for a gallon of fuel; looking up the undiscounted wholesale price component of the posted retail fuel price per gallon at the location of delivery at the time the prepaid fuel discount card was purchased; calculating an adjusted retail price per gallon based upon the difference between the discounted wholesale price component and the undiscounted price component and applying the difference to the posted retail fuel price per gallon; transmitting the recalculated fuel price to said fuel dispenser:

enabling a pump at the fuel dispenser up to the current cash balance in the purchaser's account at the recalculated retail price and disabling said fuel dispenser when the fuel pumped reaches the current cash value in the

purchaser's account or said purchaser replaces the nozzle in the receptacle in the fuel dispenser; and displaying the recalculated retail price and the total value of the purchase on one or more displays on said fuel dispenser; and debiting the purchaser's account for the cash value of the fuel delivered.

19. The method as recited in claim 18 further including the step of updating a display on the fuel dispenser to display the recalculated fuel price per gallon in response to said wholesale discount card being read by a magnetic card dispenser on said fuel dispenser.

20. The method as recited in claim 18, further including the step of enabling said purchaser to make subsequent deposits that are associated with different asset management accounts according to different criteria.

21 . The method as recited in claim 20, further including the step of enabling said purchaser to select an asset management account to be debited to pay for a delivery.

22. The method as recited in claim 21 , further including the step of enabling said purchaser to select an allocation at any time up to and including the time of delivery.

23. The method as recited in claim 20, further including the step of enabling said purchaser to make subsequent deposits by way of a smart phone.

24. The method as recited in claim 21 , further including the step of enabling said purchaser to select an asset management account by way of a smart phone.

25. A wholesale fuel discount system for enabling a supplier to provide a fuel discount only on a wholesale price component of the retail price of a unit of fuel based upon the location of delivery of the fuel and a purchaser's account information, the system comprising: a fuel dispenser including a mechanical system which includes an electric system and a mechanical system, the system comprising a pump for pumping fuel; an electric motor for driving said pump; at least one electrically controlled valve; and an ON/OFF control subsystem for selectively enabling said electric system; and an electronic control system comprising: a magnetic card reader for reading a magnetic strip or chip on a prepaid wholesale fuel discount card that provides a purchaser with a discount on a wholesale price component of the per unit retail fuel price for a grade of fuel, said magnetic strip or chip including the purchaser's account information; a bidirectional communication subsystem for transmitting

information to an external central server including the location of the fuel dispenser where fuel is being delivered, the purchaser's account information, the undiscounted retail price at the fuel dispenser where fuel is being delivered, the number of gallons pumped and a transaction complete signal and receiving information from said external central server regarding a discounted retail price based upon a discounted wholesale price component and ON/OFF signals for enabling the electric system up to the amount of cash credit in the purchaser's account based upon the discounted retail price per gallon; an external central server in communication with said electronic control system in said fuel dispenser, said central server configured to receive information from said electronic control system including the location of the fuel dispenser, the number of gallons pumped, the undiscounted retail price at the fuel dispenser where fuel is delivered, and the purchaser's account information, said central server further configured to obtain information from a purchasers database including the amount of discount of the wholesale price component assigned to the purchaser's account and obtain information from a wholesale price database regarding the undiscounted wholesale price component at the location of the fuel dispenser at the place of delivery but at the time the prepaid fuel discount card was purchased, said central server configured to use the information to calculate a discounted wholesale price component and discounted retail per unit price based upon said discounted wholesale price component and transmit the discounted per unit retail price to the electronic control system in the fuel dispenser; and a payment allocation system which enables a purchaser to make deposits associated with locked in wholesale price components for future purchases, wherein said server determines the average weighted wholesale price

component per gallon and uses that number to determine the discounted unit retail price.

26. The wholesale fuel discount system as recited in claim 25, wherein said discounted retail per unit price is equal to the undiscounted retail price minus the undiscounted wholesale unit price component plus the discounted unit wholesale price component.

27. The wholesale fuel discount system as recited in claim 25, wherein said central server takes a snapshot of all wholesale unit fuel price components existing at fuel dispensers across a region at the time the prepaid wholesale discount card is purchased and applies a wholesale fuel discount to the wholesale price component existing at a fuel dispenser at the location of delivery at the time of purchase of the prepaid wholesale discount card.

28. The wholesale fuel discount system as recited in claim 25, wherein said central server takes a snapshot of all the wholesale fuel price components for a selected grade of gasoline existing across the region at a specified time and applies a wholesale fuel discount to the wholesale price component existing at fuel dispenser at the specified time.

29. The wholesale fuel discount system as recited in claim 25, wherein said discounted wholesale price is a percentage discount of the undiscounted wholesale price at the location of the fuel dispenser at the time of delivery.

30. The wholesale fuel discount system as recited in claim 28, wherein said region is the US.

31 . The wholesale fuel discount system as recited in claim 25, wherein said prepaid wholesale discount card is only usable to purchase a specific brand of fuel.

32. The wholesale fuel discount system as recited in claim 25, wherein said fuel is selected from the group of (premium, midrange, regular and diesel grades).

33. The wholesale fuel discount system as recited in claim 25, wherein said payment allocation system is accessible on-line.

34. The wholesale fuel discount system as recited in claim 33, wherein said payment allocation system is accessible by way of a smart phone.