WO2014025738A1

WO2014025738A1 - Transferable-ownership payment instrument and methods of use therefor

Info

Publication number: WO2014025738A1
Application number: PCT/US2013/053728
Authority: WO
Inventors: Todd L. Nuttall; Troy S. BOWMAN; Derek B. Cook
Original assignee: BETTER ATM SERVICES Inc
Current assignee: BETTER ATM SERVICES Inc
Priority date: 2012-08-06
Filing date: 2013-08-06
Publication date: 2014-02-13
Anticipated expiration: 2015-02-06

Description

TITLE

Transferable-Ownership Payment Instrument and Methods of Use Therefor

FIELD OF INVENTION

[0001 ] This invention relates to a device and methods for electronically paying for goods and services using a transferable token.

BACKGROUND

[0002] Cash, despite being the most widely-used embodiment of a nation's currency, suffers many significant drawbacks. One of these is its physical implementation, specifically that it is usually a printed piece of paper. Paper bills can be destroyed, damaged, defaced, and dirtied. Due to multiple denominations, a person may often find himself carrying a wad of bills or pockets full of loose change. Paper bills and coins of one nation must be exchanged for the local currency when traveling abroad. And even with carrying a lot of cash of various denominations, there's always the question of whether the cash-on-hand is enough to make a purchase when desired. Another problem with cash is that it is an unsecured bearer instrument, meaning no authorization is needed to exchange cash for its value in goods or services. This makes cash a source of crime, specifically robbery which may be accompanied by violence or threats of violence. It also means that a bearer can lose the value of the cash without receiving something in return, such as when a person unwittingly drops a bill or gives a merchant the wrong denomination.

Another problem with cash is that it costs the government a lot of money to print it. Relatedly, the volume of cash in circulation must be tracked in order to manage currency inflation and the printing of new cash. Such tracking imparts additional overhead upon the government.

[0003] Checks have been used to avoid some of the drawbacks of cash. If a check is destroyed, it can be replaced. Checks eliminate the problem of knowing whether enough money is carried, since the amount of the check can be set at the time of purchase.

Similarly, because of the ability to set the amount, checks eliminate the problem of having to carry left-over change. Plus, checks are drawn for a stated amount from a check writer's account at a financial institution and the financial institution does not pay on the check unless the writer's account is verified and funds are present in the writer's account. Thus, a check is a more secure instrument than cash. And, because checks are processed through a bank, the funds are more easily tracked than cash. Checks have some disadvantages, too, however. For example, one person's check cannot be reused by another. Also, when a check is received in exchange for goods or services, it is impossible to know right then whether the check is drawn on a valid account or whether the account has enough money to pay the check. Travelers' checks solve that problem because they are guaranteed in the amount on the face of the check so long as the writer is validated, but otherwise suffer problems similar to cash.

[0004] Consumers have largely turned to electronic payments to avoid the drawbacks of cash and checks. National governments are expected to follow this trend and eventually legislate to limit or eliminate the use of cash in favor of trackable electronic transactions. In known electronic payment systems, an in-person electronic payment is made using a payment instrument such as a credit card, debit card, or prepaid instrument such as a gift card or cash card. While cards do not eliminate the problems associated with having to carry a physical article, they are more secure and more easily replaced than cash. Cards are also more easily tracked than cash, in part because to be re-loaded with cash value a card has to be registered with one or more of the entities involved in card processing, including merchants, point-of-sale servicers, aggregators, payment card issuers, payment networks, electronic access providers, payment program managers, payment data service providers banks, and other financial institutions, any of which is referred to herein as a payment processor. Typically, a card is a secured bearer

instrument, in that the bearer must also know a personal identification number ("PIN") or another sensitive piece of information, or must show a personal identification to use the card. The card usually contains a magnetic strip, chip, or another means for storing information thereon that is readable by card-reading equipment. The seller must have card-reading equipment, and further must have agreements in place with other parties in the chain of service providers involved in electronic payment systems, each of which provides unique value to the payment transaction, and each adding cost to the transaction. Card-reading equipment comprises a special-purpose device that can read non-human readable information for electronic payments, such as that encoded in a magnetic stripe, RFID chip or other integrated circuit, standard or matrix barcode or other symbology, contained on or in the card. The card-reading equipment is in communication with a payment processor. [0005] It is difficult, if not physically impossible or prohibitively expensive, to implement known systems of card reading and processing for non-merchant, person-to-person transactions that occur hundreds of thousands of times every day across the country because to do so requires card-reading equipment. Examples of this type of transaction include garage sales, classified ad transactions, payment for labor such as home renovation or landscaping, and other purchases of goods or services between two private parties.

[0006] Therefore, it is an object of this invention to provide a means for electronic payment between private parties that overcomes the problems with payment instruments known to date. Advantageously the payment instrument would not involve known card- reading equipment, would be easily transferred to and exchanged between subsequent users, and trackable. Along with those advantages the payment instrument would allow the cash value to be increased or decreased by the user on demand, protect against fraud, and be recoverable in case of being lost.

SUMMARY OF THE INVENTION

A payment instrument, referred to herein as a token, is used to perform electronic monetary transactions between two parties without card-reading equipment. The instrument is transferable between two parties. The token may be a card, document, coin, or other physical instrument; an electronic instrument such as a barcode, series of codes, or link emailed to the buyer; or a virtual instrument which incorporates electronic codes into an electronic image that looks like a physical instrument. The token is issued by a first payment processor and, at issuance, has a zero cash value. The token has a primary identifier, a security element, and an authorization code associated with the token. The token may be assigned a cash value upon dispensing, either automatically or manually by the first owner, or may later be assigned a cash value.

[0007] Transactions can be made by reducing the cash value of the token or by exchanging the token itself for goods or services. For the latter, a first owner gives the token to a second owner in exchange for goods or services. The second owner uses the security element to verify that the instrument has the alleged value. The second owner may further secure ownership of the instrument and prohibit the first owner from accessing the funds associated therewith by changing one or more of the security elements upon receipt of the token. The verification of value and securing ownership is achieved by contacting a payment processor, preferably the instrument's payment processor, without card-reading equipment. The communication is achieved instead by common electronic communication equipment, such as phone, smartphone, tablet or computer, via a call, text message, email, internet query, smart phone application, tweet, or other electronic means. After the transaction, the second owner may reuse the instrument, augment its value, or redeem it for some or all of its value.

BRIEF DESCRIPTION OF THE DRAWINGS

[0008] FIGs. 1 A - 1 D illustrate tokens of various embodiments.

[0009] FIG. 2 illustrates a virtual token displayed on a cell phone screen. [0010] FIG. 3 is a flow diagram of a preferred embodiment of the process of the present invention.

[001 1 ] FIG. 4 is a flow diagram of another embodiment of the process of the present invention in which buyer information is linked to the token.

[0012] FIG. 5 is a flow diagram of another embodiment of the process of the present invention in which a token is used in a combination of transactions.

DETAILED DESCRIPTION OF THE INVENTION

[0013] The present invention includes a payment instrument that enables electronic payments without card-reading equipment. The payment instrument, referred to herein as a token 10, is reusable, transferable, reloadable, secure, and enables the owner to set the cash value on demand. The present invention also includes methods for managing electronic payments between two parties using the token, without the use of card-reading equipment. The invention is contemplated for use with any electronic payment, but has particular application for transactions between private parties. Therefore, the detailed description below describes the invention in the context of a private-party transaction, but it will be understood that the invention is not limited to such a transaction.

[0014] FIG. 1 illustrates several examples of the form tokens may take. Preferably, particularly where the present invention aids in the replacement of cash, the token is a physical article including but not limited to: a coin (FIG. 1 A) made of metal, plastic, or other material; a card (FIG. 1 B), which may be plastic and substantially rigid like a credit card, or plastic and substantially flexible like a business card; or a paper document having properties similar to a dollar bill or a newspaper coupon. The token may instead be an electronic token such as a barcode (FIG. 1 C), series of codes, or link (FIG. 1 D) emailed to the buyer. The token may instead be a virtual token similar to a prepaid Virtual VISA® card or another type of display technology which shows the desired information in a readable format on a screen. See FIG. 2.

[0015] The token may have an information storage medium, such as a magnetic stripe; radio frequency identification ("RFID") chip or other integrated circuit; or standard or matrix barcode or other symbology, contained thereon, or a combination of types of storage media. Preferably the storage medium is based on common standards such as EMV (Europay, MasterCard and Visa) and NFC (near field communication) standards. In some cases, it is advantageous to incorporate information storage media to enable the token to be used with card-reading equipment, resulting in a token that can be used conventionally with card-reading equipment and also without card-reading equipment. This in turn enables the token to be used on transactions in which a portion of the cash value on the token is used in one or more first transactions and the token itself is exchanged for goods or services in a second transaction, as explained in connection with FIG. 5 herein. In the preferred embodiment, however, reading the information in the information storage medium is not necessary to conduct the transaction.

[0016] The token is associated with one or more identifiers. One of the identifiers is the primary identifier 1 1 , which is used to identify the token and store token information in a database as described below. Additional identifiers may include, for example, a bundle identifier where the token is dispensed as part of a "bundle" of tokens or other prepaid instruments. The bundle identifier identifies the bundle to a payment processor, which may then activate all of the tokens or other prepaid instruments that are a part of the bundle. Additional identifiers may further include a serial or batch number as is known in the art for marking currency. Preferably the primary identifier is printed on the token in human-readable form so that the transaction parties can read it, or it may be stored in the information storage medium, or both. The form of the identifier may be alphanumeric, biometric, symbology, or other form of communication.

[0017] The token is associated with one or more security elements 12. The security elements are used to perform the verification and ownership transfer procedures described below. The security elements may include one or more PINs (a personal identification number, typically a 4-digit numeric code) or other codes, which may be printed on the token and further may at first be hidden by a scratch-off panel or other means of obscuring the security element. The form of the security element may be alphanumeric, biometric, symbology, or other form of communication. The token preferably has instructions printed thereon for how to use the token to execute a transaction.

[0018] The token is associated with an authorization code. When the buyer acquires the token, an authorization code is set, as a result of the payment processor pre-assigning the authorization code or as a result of the buyer manually choosing it, and provided to the buyer. The authorization code may be a word, a number, or an alphanumeric combination which the token issuer stores and the buyer must write down or remember. The

authorization code is used as described below to purchase goods or services using the token. Unlike conventional credit, debit or gift cards that require communication with a payment processor during each transaction to obtain an authorization code, no authorization code other than the one set initially is necessary to use the token by any user.

[0019] In a preferred embodiment, a transaction is executed by the transfer of a token from a first owner, also referred to herein as a buyer, to a second owner, also referred to herein as a seller. For example, a person who wants to buy a pair of shoes at a garage sale is the buyer and the person selling the shoes is the seller.

[0020] See FIG. 3. The token is acquired 31 by the buyer. The buyer may have received the token from a previous owner in a previous transaction performed according to the inventive method. Or, the buyer may receive the token from a dispenser, in which case there would have been no previous owners. The dispenser may be a point of sale device ("POS") that is partially or fully controlled by the payment processor. The POS may be an automated POS, such as an ATM, kiosk, vending machine, or website; or, the POS may be an over-the-counter POS, such as from a salesperson at a bank branch or retail store. The buyer may purchase the token, or the token may be issued at no cost by the payment processor, which may be the buyer's bank or other financial institution. The payment processor retains at least the primary identifier of the token, preferably recording it in a token database along with the information that that the token has been dispensed. The token record in the token database may further include a flag indicating whether the token has been activated. Preferably the token is activated when it is dispensed, thus being usable immediately by the buyer, or the buyer may activate the token later by contacting the payment processor as known in the art. [0021 ] Optionally, the token may be linked to the buyer. See FIG. 4. To make this linkage, the payment processor receives data identifying the buyer during or after the dispensing of the token to the buyer. The data identifying the buyer may be an account identifier for an existing account the buyer has with the payment processor, a credit or ATM card number, the buyer's name or username, or one or more other pieces of identifying information. The payment processor links the token to the buyer using the data identifying the buyer and the primary identifier 41 , preferably by storing the data identifying the buyer in an electronic record associated with that token, referred to herein as a token record. The linkage of the token to the buyer allows the payment processor to

authenticate and track the transactions executed using the token. In particular, the linked buyer may identify the account that is to be debited by the transaction amount when the token is used as described below. The linkage may further be used to provide additional management services to the buyer, such as prepaid account portfolio management services described in co-pending U.S. Pat. App. Ser. No. 12/686,096, which is commonly owned with the present invention and incorporated herein by reference. In this manner, the buyer may manage several tokens that are active at the same time, using the prepaid account portfolio. The linkage may further allow the buyer to use, as the authorization code, the account PIN that is associated with the identified account.

[0022] When it is dispensed, the token may already be assigned a preset value, similar to paper money or a gift card for a certain denomination. In this embodiment, once the buyer identifies the purchase to be made, the buyer contacts the payment processor and provides the authorization code to confirm that it is the buyer, and not a thief or fraudulent bearer, attempting to make the purchase. Preferably, however, the token has no initial value. This provides both security and versatility: the buyer is secure in knowing that if the token is lost or stolen, it has no value; and the token is versatile in that its value can be set to the exact amount of the transaction on demand. The buyer loads the token by assigning the cash value that is to be debited from the buyer's funded account 33. The buyer may load the token by assigning the value that is desired for a specific transaction, or may load the token with an arbitrary amount. Loading comprises transmitting load information to the payment processor, which may be done by telephone, smart phone application, text message, email, internet submission, or other means. The load

information includes the primary identifier of the token to be loaded, the amount to be loaded, and the authorization code, and may further include one or more additional authenticators that indicate the load request is coming from the buyer. The payment processor receives the load information and verifies (1 ) that the request originated from the buyer, (2) that the token is active, or that the load request includes an activation

instruction, and (3) that there are sufficient funds in the buyer's funded account to cover the transaction. If all information is verified, the process transfers the requested funds from the buyer's account to a token account associated with the token record. The token account may be newly opened upon verifying the load request, or it may have been previously opened and presently waiting to receive funds. The token account may be a prepaid account described in U.S. Pat. App. Ser. No. 12/686,096, further allowing for the provision of prepaid account portfolio management services. Once the funds are successfully transferred, the payment processor may send a confirmation to the buyer using the same or a different communication channel from the load request.

[0023] Preferably, the buyer loads the token at the time and place of the transaction with the cash value of the transaction. The buyer gives the loaded token to the seller in exchange for goods or services 34. The seller then contacts the payment processor to verify that the token is active and contains the transaction value 35. Preferably the seller calls or sends a text message to a phone number provided by the payment processor. The phone number may be a standard number through which all tokens are verified, or it may be a number specific to the particular token or a subset of tokens. During the phone call or within the text message, the seller inputs information needed to identify the token and confirm it is in the seller's possession. If the phone number is specific to the token, the call or text message may be sufficient to identify the token. If the phone number is a general number, the seller may need to provide the token's primary identifier or another identifier. Alternatively, the seller uses a multi-purpose smart phone application to read a bar code, such as a matrix bar code like QR Code® to start an automated verification process. In such a case the matrix bar code provides the necessary information automatically to the correct service provider replacing the need for entering the token's information, with the possible exception that the actual PIN code may need to be entered. One or more of these preferred methods is preferably printed on the token.

[0024] Preferably, the token includes one or more PINs, most preferably each of which is hidden behind a separate tamper-resistant scratch-off pad. The seller scratches off a pad and provides the PIN to the payment processor as confirmation that the seller possesses the token. The combination of the PIN and buyer-supplied authentication code therefore prove to the payment processor that the token is present at the transaction and the authorized buyer is performing the transaction. The payment processor then sends a confirmation message to the seller that the token is active and has been validly funded with the transaction value.

[0025] In another embodiment, in lieu of the seller calling or sending a text message, the seller contacts the payment processor by email, internet query, specific-purpose smart phone application, or other electronic means, or a combination of communication means.. Smart phones outfitted to read RFID tags may be used to initiate an automated verification sequence.

[0026] With the funds confirmed, the seller may have ownership of the token

transferred to the seller. Ownership transfer is achieved by changing the first security element to a security element known to the second party that is different from the first security element and preferably unknown to the first party 36. In one embodiment, the payment processor may offer to change the PIN to a number of the seller's choice.

Changing the PIN locks any previous owner out of using the token.

[0027] The seller may further provide information identifying the seller so that the token may be linked to the seller according to the linkage process described above. If the seller also has any funded accounts with the payment processor, one or more of those accounts may be associated with the token, allowing the seller to reuse the token in another transaction or have the funds transferred to the seller's account. If the seller does not have any accounts with the payment processor, the seller may be able to redeem the token at an ATM or other redemption terminal, collecting cash or a prepaid instrument in the amount of the stored funds. Alternatively, the token may be used by the seller as a prepaid instrument, such as an open-network prepaid or gift card.

[0028] Example 1

[0029] A buyer wants to buy a '67 Chevy Impala and recondition it. The buyer views the "for sale" ads on Craigslist and AutoTrader.com for '67 Chevys and finds just the right one, offered by a seller in a town about 30 miles away. The buyer arranges to see the car and, before he makes the trip, goes to an ATM and obtains a token having zero value. The buyer travels to the seller's town and sees the car. The buyer and seller agree on a price of $2700. The buyer calls the phone number printed on the token and, using the keypad on his cell phone, transmits the primary identifier printed on the token, the authorization code, and $2700, the amount the cash value is to be increased, to the buyer's bank which houses a funded account belonging to the buyer, thereby instructing the bank to debit the first amount from his account and to assign $2700 to the token. The buyer gives the loaded token to the seller who calls the phone number printed on the token and, using the keypad on the seller's cell phone transmits the PIN number the buyer gives him, the authorization code, and the alleged cash value to the seller's credit union. The credit union replies to the seller's cell phone with a message that confirms the amount of the cash value on the token. The seller then changes the PIN to a number he keeps secret from the buyer.

[0030] FIG. 5 is a flow diagram of another embodiment of the process of the present invention in which a portion of the cash value on the token is used in one or more first transactions and the token itself is exchanged for goods or services in a second transaction. The token is acquired 31 by the buyer, as explained above. The buyer may have received the token from a previous owner in a previous transaction performed according to the inventive method. The buyer loads the token by assigning the value that is to be debited from the buyer's funded account 33. Loading comprises transmitting load information to the payment processor using common communication equipment, such as telephone, smart phone application, text message, email, internet submission, or other means. The token is used, one or more times, to purchase goods or services using card- reading equipment 51 . These transactions decrease the value of the token in an amount equal to the price(s) paid for the purchased goods and services 52. The token can be reloaded after these purchases, if desired. Then, with a specific desired amount on the token for a desired purchase, the buyer gives the loaded token to the seller in exchange for goods or services 34. The seller then contacts the payment processor to verify that the token is active and contains the transaction value 35. The ownership of the token is transferred to the seller by changing the security element to a security element known to the seller that is different from the buyer's security element and preferably unknown to the buyer 36, which locks any previous owner out of using the token.

[0031 ] Example 2

[0032] A buyer acquires a token having zero cash value and loads it with $50 from his checking account. The token has a magnetic stripe in it containing electronic payment information readable information sufficient to be read by card-reading equipment. The buyer uses the token to purchase half a tank of gasoline from a gas station pump for $24.36 by swiping the token through the pump's card-reading equipment, leaving $25.64 of cash value on the token. The buyer then goes to the post office and buys $20.00 worth of stamps by swiping the token through the post office's card-reading equipment, leaving $5.64 of cash value on the token. The buyer then goes around the corner to a

neighborhood garage sale and sees a nifty lamp for $17.00. While at the garage sale the buyer uses his cell phone to load $1 1 .36 onto the token from his checking account, resulting in a token having a cash value of $17.00. The buyer gives the token to the seller at the garage sale and, while the buyer is still present, the seller uses his cell phone to verify that the token has a cash value of $17.00. The buyer takes his nifty lamp and the seller takes his token. Later, the seller changes the security element to a PIN of his choice.

[0033] The funds allotted to the token are segregated from other funds in the owner's account so that they are available when a portion of the cash value is used for a purchase or the token itself is exchanged for goods or services. The segregation can be

accomplished by making the funds in the owner's account unavailable for other purchases, similar to the known method of putting a hold on funds when a debit card is authorized for a specific transaction until the transaction is complete. The segregation can also be accomplished by encapsulating the funds in a token account separate from the account the owner used to load the token with, similar to the known method of putting funds in an escrow account with an escrow agent until the transaction is complete.

Another implementation of the method of making an electronic payment utilizes a clearing house for handling transactions with tokens, which would help prevent against fraud. The clearing house would have the ability to verify the validity and value of each token, regardless of the token issuer, current token owner, or current token owner's bank or other financial institution. For example, it's possible (but unlikely) that a forger could create false tokens and have a false call center to respond to incoming calls checking the value of the token. With a clearing house, a seller could call its own bank to verify the token, and the seller's bank would check either a common clearing house or with buyer's bank directly to validate the card and funds.

[0034] While the description of loading the token is described in terms of a cash value and monetary amounts being debited from an owner's monetary account, it is

contemplated that cash value includes anything of value, including currency, barter points, reward points such as frequent-flyer miles, etc.

[0035] While there has been illustrated and described what is at present considered to be the preferred embodiment of the present invention, it will be understood by those skilled in the art that various changes and modifications may be made and equivalents may be substituted for elements thereof without departing from the true scope of the invention. Therefore, it is intended that this invention not be limited to the particular embodiment disclosed, but that the invention will include all embodiments falling within the scope of the appended claims.

Claims

We claim:

1 . A payment instrument comprising:

a. a token issued by a payment processor to a first owner;

b. a primary identifier associated with the token;

c. a security element associated with the token; and

d. an authorization code associated with the token;

wherein the token has zero cash value when the token is issued to the first owner; and

wherein the primary identifier, security element, and authorization code can be determined without card-reading equipment.

2. The payment instrument according to claim 1 wherein the ownership of the payment instrument is transferred from the first owner to a second owner when the security element is changed by the second owner to a security element known to the second owner and the payment processor.

3. The payment instrument according to claim 2 wherein the cash value of the token is increased when the first, second or a subsequent owner loads the card, wherein loading comprises the then-current owner transmitting the primary identifier, the authorization code, and the first amount the cash value is to be increased to the payment processor which houses a funded account belonging to the then-current owner, thereby instructing the payment processor to debit the first amount from the first or second owner's funded account and to assign the first amount to the token. The payment instrument according to claim 3 wherein the cash value of the token is changed at the point of sale to the exact amount needed for a desired purchase. The payment instrument according to claim 3 wherein, after the cash value of the token is decreased as a result of the cash value being spent on purchasing goods or services, the cash value of the token is increased again when the then-current owner transmits to the payment processor the primary identifier, the authorization code, and the second amount the cash value is to be increased, which authorizes the payment processor to debit the second amount from the then-current owner's funded account with the payment processor and assign the second amount to the token.

The payment instrument according to claim 1 wherein the token is a physical article. The payment instrument according to claim 1 wherein the token is an electronic article.

The payment instrument according to claim 1 wherein the token is a virtual article. The payment instrument according to claim 1 wherein the primary identifier is visible on the token.

The payment instrument according to claim 1 wherein the security element is a personal identification number.

A payment instrument comprising:

a. a token issued by a payment processor;

b. an authorization code associated with the token;

c. a primary identifier associated with the token; and d. a security element associated with the token;

wherein the payment instrument has zero cash value when the token is issued by the payment processor to a user;

wherein the cash value of the payment instrument can be changed by the user by loading the token, re-loading the token, or using the token to make purchases;

wherein the primary identifier, security element, authorization code, and cash value can be determined without card-reading equipment; and

wherein the ownership of the payment instrument is transferred from a first user to a second user when the security element is changed by the second user to a security element known to the second party.

12. The payment instrument of claim 1 1 wherein determining the cash value is accomplished by the seller contacting a payment processor by one or more of the following communication means: phone, text message, email, internet query, smart phone application, or a combination of communication means.

13. The payment instrument of claim 1 1 wherein the token is linked to the buyer by storing data identifying the buyer in a token record, thereby enabling the payment processor to track the transactions executed using the token.

14. A method of making an electronic payment comprising:

a. acquiring, from a payment processor, a token having zero cash value, wherein the token has:

(i) a primary identifier associated with the token;

(ii) a security element associated with the token; and (iii) an authorization code associated with the token;

b. loading the token with cash value by transmitting without the use of card- reading equipment the primary identifier, the authorization code, and the first amount the cash value is to be increased, to the payment processor which houses a funded account belonging to the then-current owner of the token, thereby instructing the payment processor to debit the first amount from the then-current owner's funded account and to assign the first amount to the token;

c. exchanging the token for goods or services;

d. confirming the amount of the cash value on the token by transmitting the security element, the authorization code, and the alleged cash value to the payment processor; and

e. if confirmed, changing the security element to a security element known to the second party and different from the first security element.

A method of making an electronic payment comprising:

(i) a primary identifier associated with the token;

(ii) a security element associated with the token; and

(iii) an authorization code associated with the token;

b. loading the token with cash value by transmitting without the use of card- reading equipment the primary identifier, the authorization code, and the first amount the cash value is to be increased, to the payment processor which houses a funded account belonging to the then-current owner of the token, thereby instructing the payment processor to debit the first amount from the then-current owner's funded account and to assign the first amount to the token; and

c. purchasing goods or services using a portion of the cash value loaded on the token such that the cash value is reduced.

The method according to claim 15 wherein loading the card comprises increasing the cash value of the at the point of sale to the exact amount needed for a desired purchase.

The method according to claim 15 further comprising:

a. exchanging the token for goods or services;

b. confirming the amount of the cash value on the token by transmitting the security element, the authorization code, and the alleged cash value to the payment processor; and

c. if confirmed, changing the security element to a security element known to the second party and different from the first security element.

The method according to claim 15 further comprising:

a. loading the token with additional cash value by transmitting the primary identifier, the authorization code, and the second amount the cash value is to be increased, to the payment processor which houses a funded account belonging to the then-current owner of the token, thereby instructing the payment processor to debit the second amount from the then-current owner's funded account and to assign the second amount to the token. The method according to claim 17 further comprising:

a. exchanging the token for goods or services;

The method according to claim 15 further comprising:

a. linking the token to the buyer by storing data identifying the buyer in a token record, thereby enabling the payment processor to track the transactions executed using the token.