WO2016097879A1

WO2016097879A1 - Real-time electronic cheque issue system for money transfer, payment and management

Info

Publication number: WO2016097879A1
Application number: PCT/IB2015/050899
Authority: WO
Inventors: Jaseem MOHAMMED
Original assignee: Mohammed Jaseem
Priority date: 2014-12-19
Filing date: 2015-02-06
Publication date: 2016-06-23

Abstract

This invention discloses an e-cheque issuing system for money transfer between a payer and a payee without using internet. The system includes user- end-system and processing system. The user-end-system comprises magnetic stripe or smart card, magnetic-stripe or smart card reader, transaction platform and e-cheque book system. The processing system comprises a cellular network, interconnected bank server and e-cheque processing server. The payer connects his card reader to a transaction platform, which is a smartphone or a smartphone integrated into ATM. A payer raises an e-cheque from transaction platform. The e-cheque is verified by the e-cheque processing server. Once the payee receives the e-cheque via SMS or offline, the e-cheque book system in his/her smartphone breaks and writes the code into the non-volatile memory of the payee's reader. The user is able to carry the code anywhere and make money transfers and payments with ease and without using internet connection.

Description

TITLE OF THE INVENTION

Real-Time Electronic Cheque Issue System for Money Transfer,

Payment and Management

[001] Technical field of the invention

[002] The present invention relates to a real-time electronic cheque (e-cheque) issue system for money transfer, payment and management between a payer and a payee without using internet connection. The system combines technical domains, such as finance and telecommunication, in order to arrive at a new financial system design that provides benefits to the customers and banks. The present invention also discloses a method for issuing the e-cheque without using internet connection.

[003] Background of the invention

[004] There are different types of payment systems available to promote banking services like internet banking or E-banking, which allows a person to perform financial transactions through a secured website operated by a financial institution and like mobile payment that allows a person to perform financial transactions using mobile phone devices equipped with a technology or installed with an application provided by an organization, which is not necessarily a financial institution, but operated under the financial regulation. To access the mobile payment facility, the person must have a smartphone equipped with the technology, sometimes require internet access, must register with the organization for the service, and must set up password for verification.

[005] In addition, card based payment system allows a person to conduct financial transactions online and offline using a magnetic stripe and/or smart card issued by a financial institution or an organization under the financial regulation. To access this payment facility, the person must register with the institution for the service, and sometimes set up Personal Index Number (PIN) for verification. This is the fastest, easiest and most user friendly method of payment for purchase of goods and tickets.

[006] The card based payment system includes the credit card, debit card and stored valued cards. In case of credit card, the operator (mostly a financial institution) issues the credit card to a customer with a credit limit within which the customer swipes to pay for purchases and to withdraw cash. Swiping the card is validated by immediate signal transfer between the reader and the bank server. The customer also has the option to enter the credit card details in a web page for online payments. The used amount is added to the bill issued to the customer. The customer has the option to postpone the bill payment at the cost of interest charged on the amount.

[007] In case of debit card, a financial institution issues the debit card to the customer, who holds a cash deposit account with the institution. The customer swipes the card to pay for purchases and to withdraw cash. The amount is debited directly from the customer's account and hence there is no interest on the amount or a situation to pay back the amount later.

[008] The stored valued cards are smart cards issued by the operator (not necessarily a financial institution), which are not customized to any customer. These cards are anonymous cards and have a monetary value stored in them, equal to the recharge amount paid by the customer to the operator. Every time the customer purchases goods or tickets, an equal amount of value is deducted from the amount stored in the card. These cards allow the customers to make offline payments for purchases of goods and tickets.

[009] Understanding the financial systems mentioned above shows that in addition to the benefits of the systems, they are also associated with following drawbacks: a. Necessity of internet connectivity: Almost all systems work through data transfers via internet, which is the nervous system of most of the financial systems, without which the system may not work. This is the factor which creates flexibility, user friendly interface, comfort, good follow-on sales and a wide scope for development of the systems. But the dependency on internet creates a deep level of dissatisfaction to the consumers and the merchants, during the unavailability of the network, as there would be no other alternative system to carry out the payment. Also, usage of internet for online payments makes these systems more prone to cyber crimes. b. Unavailability of peer to peer transfer facility: Online banking and mobile banking provide person to person money transfer facilities, but only during the time limits decided by the central bank of a country. Mobile payment does not allow person to person transfer. As a result, these systems are not useful during off time. c. Unavailability of alternatives: For better security and immediate authentication, most of the money transfers are performed online. This confirms the true identity of the sender and the receiver, but causes delayed transfers at times when the network is unavailable, resulting in dissatisfaction to the consumers and the merchants. Existing offline payment methods include simple recharge cards which are not personalized and are completely secured. d. Cost: The use of advanced technology, development of complicated applications, setting up secured networks, paying compensation for failed transactions etc. increases the expenditure of the operator, which always act as an obstacle to the improvements the operator wishes to bring in the system. e. Speed: Transfers through Short Messaging Service (SMS), central bank's pre-decided transaction timings, authentication process during busy network etc. slow down the payment processes during online payments, but when the network is clear, the systems perform so fast that they take the consumer's and merchant's satisfaction to the peak level. f. Availability of technology: The operator always has a big responsibility of making the technology that it adopts, to be available to the consumers and merchants for its business to be a success. Making the technology available in the market is a big challenge faced by the operator. g. Separate accounts with the operator: Many systems operated by organizations, which are not financial institutions, require the consumers and the merchants to start separate cash deposit account with the operators. This proves uncomfortable to many customers, who wish to have all his/her/its money to be present in bank accounts.

[0010] In order to overcome the above problems and to fulfill the expectations of the customers, the objective of the present invention is to provide a service to its users, in which he/she is able to issue electronic cheques from codes carried in a personal device, instead of exchanging currency.

[0011] Summary of the invention

[0012] The present invention describes an e-cheque issue system for money transfer, payment and management between a payer and a payee without using internet. The system is provided with a miniature and portable magnetic-stripe or smart card reader having connectivity with a smartphone and having nonvolatile memory space to store codes. The codes, which are generated from the money in savings bank account allows the payer to issue electronic cheques to the payee either via SMS or without using any network and by swiping a magnetic-stripe or smart card to authenticate. The payee would digitally write the value contained in the received electronic cheque to his/her card reader and use the codes for new payments and transfers.

[0013] The system includes a user-end-system and a processing system. The user-end-system comprises a magnetic stripe or smart card, a magnetic stripe or smart card reader, a transaction platform and an e-cheque book system. The processing system comprises a cellular network, interconnected bank server and an e-cheque processing server.

[0014] During the code generation by a user, the user connects his/her card reader to a transaction platform. With the e-cheque book system, a payer raises a request from the transaction platform. The interconnected bank server and e-cheque processing server issues an e-cheque to the user against the money transferred from the user's savings bank account to the co-existing current account. Once the user receives the e-cheque via SMS, the e-cheque book system in the smartphone breaks the code, reads the code contained in the e-cheque and writes the code into the non-volatile memory of the reader. The user is now able to carry the code anywhere and make transfer and payments from it.

[0015] During money transfer, the payer issues an e-cheque from a transaction platform by selecting the payee from his saved phone contacts or entering the payee's phone number manually. The system is useful for transfer of money from payer to payee with a single bank account with the same bank, single bank account with another bank, or multiple bank accounts with multiple banks. The system is also useful for the offline payment from a stored value.

[0016] The e-cheque book system creates an offline statement, letting the user view it at anytime, to analyze the expenditure. The system has multiple keys between the elements so that loss of one element or all the elements does not cause any loss of money or codes owned by the user thus providing theft security. The system also has the ability to support issue of e-cheques between two international phone numbers in the form of a remote transaction.

[0017] Due to continuous transfer of money from savings accounts to co-existing current accounts, e-cheque circulates between people and businesses instead of fiat currencies. In this way, this system diminishes printing notes to a very large extent, thus bringing up a greener and safer economy.

[0018] Brief description of drawings

[0019] FIG 1 illustrates the user-end system according to an embodiment of the invention.

[0020] FIG 2a and 2b illustrates the processing system according to an embodiment of the invention.

[0021] FIG 3 illustrates a flow chart for a method of generating codes by the user for issuing an e-cheque.

[0022] FIG 4 illustrates a flow chart for a method of issuing e-cheque by the payer using the generated codes. [0023] Detailed description of the invention

[0024] In order to make the matter of the invention clear and concise, the following definitions are provided for specific terms used in the following description.

[0025] The term "electronic cheque" means an electronic payment process that resembles the function of paper cheques but offers great security and more features.

[0026] The term "payer" means a person who pays a bill for products or services received or a peer who issues cheque.

[0027] The term "payee" means a person to whom money is paid or is to be paid, especially the person to whom a cheque is made payable.

[0028] The system allows a payer to issue electronic cheques (e-cheques) to a payee independent of internet at all times. In this system, when a payee's smartphone is not accessible to the payer, the payer issues e-cheques through cellular network from his/her own smartphone or through an Automated Teller Machine (ATM). When a payee's smartphone is accessible to the payer, the payer issues e-cheques directly into the payee's smartphone completely offline. The architecture that allows this system to function involves user-end system and processing system.

[0029] FIG 1 illustrates the user-end system according to an embodiment of the invention. The user-end system (100) comprises a portable magnetic- stripe or smart card (101), a magnetic- stripe or smart card reader (102), a transaction platform (103) and an e-cheque book system (104). The magnetic-stripe or smart card (101) stores the data about the user to authenticate a transaction by swiping/inserting it in the magnetic-stripe or smart card reader (102). An existing ATM debit card also fulfils this purpose. The magnetic-stripe or smart card reader (102) comprises a 3.5 mm diameter audio connector or micro B Universal Serial Bus (USB) connector (105) and a non-volatile memory (106). The audio connector or micro B USB connector (105) connects to a transaction platform (103) that has a 3.5 mm female port or micro B USB female port. The audio connector (105) helps to pass the data to and from the transaction platform (103). The non-volatile memory (106) stores the codes from which e-cheques are issued. The transaction platform (103) may be a user's smartphone or a smartphone integrated into an Automated Teller Machine (ATM) having a 3.5 mm female port or Micro B USB female port to connect the magnetic- stripe or smart card reader (102). The e-cheque book smartphone system (104) is compatible with the smartphone operating system and developed with a development kit compatible with the card reader device, which is installed in every transaction platform.

[0030] The e-cheque book system (104) decrypts the connected the magnetic- stripe or smart card reader (102) and modifies the codes stored in the non-volatile memory (106) of the magnetic- stripe or smart card reader (102) and issues e- cheques from the codes. The e-cheque book smartphone system (104) guides a payer in selecting a payee from saved phone contacts, or in manually entering the payee's registered contact number. In addition, the e-cheque book smartphone system (104) authenticates e-cheque issuance by comparing the data contained in the magnetic- stripe or smart card (101) and the magnetic-stripe or smart card reader (102), and also from the PIN entered by the payer. Finally, it converts e- cheques into encoded and encrypted text and sends to the e-cheque processing server via SMS.

[0031] FIG 2a and 2b illustrates the processing system according to an embodiment of the invention. The processing system (200) includes a cellular network (201) and an interconnected bank server and e-cheque processing server (202). The cellular network (201) allows the e-cheques issued by the payer to reach the payee through SMS. Usually, the existing cellular network architecture requires no particular modification to support sending the e-cheques. The interconnected bank server and e-cheque processing server (202) includes the existing bank server (203) fed with the different new elements. These elements are (a) a co-existing current account that is linked with the savings account of an user (205), (b) an e-cheque transaction system (206), which allows the bank server to read e-cheques and carryout money transactions accordingly between accounts via Electronic Fund Transfer (EFT), (c) an individual list of users (207), unique to the bank to which the bank server belongs, (d) settlement account (208) to claim settlements with other banks, (e) transaction and claims data (209), which is an electronic collection of all the e-cheques and claims, unique to the bank to which the bank server belongs. The e-cheque processing server (204) comprises different elements. These elements are (a) encrypted connectivity (210) to the bank server of the bank to which the e-cheque processing server belongs, (b) a code holder account (211), which is an electronic account assigned to a user and carries codes containing value equivalent to the amount of money transferred from the savings account to the co-existing current account of the user, such that the codes carried in the card reader by the user are the reflections of the codes contained in the code holder account, (c) a reserve holder account (212), which is an electronic account assigned to the user, and carries codes containing value that overflows the limit, which is set to the code holder account (211), (d) a validation system (213) to allow the server to confirm that the sender of e-cheque is a registered user and entry gate (214) which is the entry gate for SMS to the e-cheque processing server, (e) a credit-debit module (215) to allow the server to read e-cheques and instantly take action to achieve code transfer from the code holder account (211) of the payer to the code holder account of the payee, (f) a generation system (216) to allow the server to generate new codes into the code holder accounts of users, (g) a re-issue and query system (217) to allow the server to reissue the an e- cheque by encrypting with a new key; to send a query to the payee for confirmation on the credit account in case the payee has multiple bank accounts; to identify the clarifications received in response to the queries sent, (h) a master list of users (218), which is an electronic collection of registered phone numbers of all users of all banks and names of banks where each user has bank account, (i) a SMS system (219) to allow the server to send outputs generated by the re-issue and query system to the recipient as fed by the system.

[0032] FIG 3 illustrates a flow chart for a method for generating codes for issuing an e-cheque. The method (300) of generating codes in the personal card reader with the money in the banks starts with a step (301) of selecting the user's smartphone or ATM as transaction platform. At step (302), the user's magnetic- stripe or smart card reader is connected to the transaction platform and the card reader is unlocked with a PIN known only to the user. At step (303), a request is raised with the e-cheque processing server from the transaction platform using e- cheque book through SMS. At step (304), the validation system at the e-cheque processing server verifies the transaction platform and the logic system decodes the request. At step (305), the currency value entered by the user is transferred from the savings account of the user to the co-existing current account of the user at the bank server by the electronic fund transfer system. At step (306), an e- cheque is issued by the e-cheque re-issue system to the user's phone number, the e-cheque is received through SMS for smartphone users and intimation is received via SMS for non-smartphone users. At step (307), the user's magnetic- stripe or smart card reader is connected to the user's smartphone or ATM after receiving the e-cheque/intimation and the card reader is unlocked with a PIN known only to the user. At step (308), the e-cheque is decoded by the e-cheque book system in the user's smartphone or ATM, the value contained in the e-cheque is read and the same is written as a code into the non-volatile memory of the card reader. At step (309), the card reader containing codes is carried by the user anywhere and payment or transfer can be initiated anytime.

[0033] FIG 4 illustrates a flow chart for a method of issuing e-cheque by the payer using the generated codes. The method (400) of issuing e-cheque by the payer from the codes in the personal card reader starts at the step (401) of selecting the payee's smartphone as transaction platform for offline transactions by the user, or the payer's own smartphone as transaction platform for SMS transactions by smartphone users, or an ATM as transaction platform for SMS transactions by non-smartphone users. At step (402), the payer's magnetic- stripe or smart card reader is connected to the transaction platform and the card reader is unlocked with a PIN known only to the payer. At step (403), the e-cheque is issued from the codes contained in the card reader by the payer to the payee's phone number from the transaction platform using e-cheque book system through SMS for immediate receipt and validation or offline for immediate receipt but later validation. At step (404), the transaction platform is verified by the validation system at the e-cheque processing server and the e-cheque is decoded by the logic system. At step (405), the transaction is identified as inter-bank or intra-bank transaction using the individual list of users and the payee as a single or multiple bank account(s) holding payee using the master list of users. At step (406), the SMS system communicates with the multiple bank accounts holding payees for confirmation on the credit bank account and thereafter with the e- cheque processing server at the payee's bank for all inter-bank transactions. At step (407), the value entered by the payer is transferred from the code holder account of the payer to the code holder account of the payee by the transaction system at the e-cheque processing server, internally for intra-bank transactions and via SMS for inter-bank transactions. At step (408), the currency value entered by the payer is transferred at the bank server by the electronic fund transfer system from the co-existing current account of the payer to the co-existing current account of the payee for intra-bank transactions and to the settlement account for inter-bank transactions. At step (409), the e-cheque is re-issued by the e-cheque re-issue system to the payee's phone number and the e-cheque is received through the SMS by smartphone user payees and intimation is received through the SMS by non-smartphone user payees. At step (410), the payee's magnetic- stripe or smart card reader is connected to the payee's smartphone or ATM after receiving the e-cheque/intimation, and the card reader is unlocked with a PIN known only to the payee. At step (411), the e-cheque is decoded by the e-cheque book system in the payee's smartphone or ATM, the value contained in the e-cheque is read and the same as codes is written into the non-volatile memory of the card reader. At step (412), the card reader containing codes is carried by the payee anywhere and payment or transfer is made any time.

[0034] The e-cheque book system creates an offline statement, letting the user view it at anytime, analyze the expenditure. The system has multiple keys between the elements so that loss of one element or all the elements does not cause any loss of money or codes owned by the user thus providing theft security. This system also has the ability to support issue of e-cheques between two international phone numbers, in the same way as SMS transaction explained above.

[0035] Due to continuous transfer of money from savings accounts to co-existing current accounts, e-cheque circulates between people and businesses instead of fiat currencies. In this way, this system diminishes printing notes to a very large extent, thus bringing up a greener and safer economy.

Claims

[0036] Claims: I Claim:

1. A system for issuing an electronic cheque (e-cheque), the system comprising:

a. a user end system (100) wherein the user end system (100) further comprises:

i. a card (101) to store the data of a user to authenticate a transaction;

ii. a card reader (102) to allow insertion of the card (101), wherein the card reader (102) further comprises an audio connector or micro B Universal Serial Bus (USB) connector (105) and a non-volatile memory (106);

iii. a transaction platform (103) to connect the card reader (102) through the audio connector or micro B USB connector (105); and

iv. an e-cheque book system (104) installed in the transaction platform to decrypt the connected card reader (102) and to modify one or more codes stored in the non-volatile memory (106) of the card reader (102) and to issue e- cheques from the codes;

b. a processing system (200) wherein the processing system further comprises:

i. a cellular network (201) to allow the e-cheque issued by a payer to reach a payee through Short Messaging Service (SMS); and

ii. an interconnected bank server and e-cheque processing server (202), wherein the interconnected bank server and e- cheque processing server (202) further comprises an existing bank server (203) and an e-cheque processing server (204) fed with the different new elements.

2. The system as claimed in claim 1, wherein transaction platform (103) is a user's smartphone or a smartphone integrated into an Automated Teller Machine (ATM).

3. The system as claimed in claim 1, wherein the e-cheque book system (104) guides a payer in selecting a payee from saved phone contacts, authenticates e-cheque issuance and converts e-cheque into encoded and encrypted text and sends to the e-cheque processing server via SMS.

4. The system as claimed in claim 1, wherein the card (101) is any one of the portable magnetic- stripe card or smart card and the card reader (102) is a portable and weightless (<50g) magnetic- stripe or smart card reader.

5. The system as claimed in claim 1, wherein the existing bank server (203) is fed with one or more new elements including:

i. a co-existing current account linked with a savings account of the user (205);

ii. an e-cheque transaction system (206) to allow the bank server to read one or more e-cheques and carryout money transactions between plurality of accounts via Electronic Fund Transfer (EFT); iii. an individual list of users (207) unique to the bank to which the bank server belongs;

iv. a settlement account (208) to claim transaction settlements with other banks; and

v. a transaction and claims data (209), which is an electronic collection of the e-cheques and claims, unique to the bank to which the bank server belongs.

6. The system as claimed in claim 1, wherein e-cheque processing server (204) is fed with one or more new elements including:

i. encrypted connectivity (210) to the bank server of the bank to which the e-cheque processing server belongs; ii. a code holder account (211) to carry the codes containing value equivalent to the amount of money transferred from the savings account to the co-existing current account of the user; iii. a reserve holder account (212) to carry the codes containing value that overflows the limit of the code holder account (211); iv. a validation system (213) to confirm that the sender of e-cheque is a registered user and to pass the entry gate (214) to the e-cheque processing server;

v. a credit-debit module (215) to allow the server to read e-cheques and instantly take action to achieve code transfer from the code holder account of the payer to the code holder account of the payee;

vi. a generation system (216) to allow the server to generate new codes into the code holder accounts of users;

vii. a re-issue and query system (217) to allow the server to reissue the an e-cheque and to identify the clarifications received in response to the queries;

viii. a master list of users (218) to provide one or more details of one or more users from one or more banks; and

ix. a Short Messaging Service (SMS) system (219) to allow the server to send outputs generated by the re-issue and query logic to the recipient as fed by the logic.

7. The system as claimed in claim 1, wherein the e-cheque is issued without using internet connection.

8. A method for generating codes to issue the e-cheque comprises the steps of:

a. selecting a user's smartphone or an Automated Teller Machine (ATM) as transaction platform (301);

b. connecting the user's magnetic- stripe or smart card to the transaction platform and unlocking the card reader with a Personal Index Number (PIN) known only to the user (302); c. raising the request with the e-cheque processing server from the transaction platform using the e-cheque book system through SMS (303);

d. verifying the transaction platform by the validation system at the e- cheque processing server and decoding the request by a logic system (304);

e. transferring the currency value entered by the user from the savings account of the user to the co-existing current account of the user at the bank server by the electronic fund transfer system (305);

f. issuing an e-cheque by the e-cheque re-issue system to the user's phone number (306);

g. connecting the user's magnetic-stripe or smart card reader to the user's smartphone or the ATM after receiving the e- cheque/intimation and unlocking the card reader with a PIN known only to the user (307);

h. decoding the e-cheque by the e-cheque book system, reading the value contained in the e-cheque and writing the same as a code into the non-volatile memory of the card reader (308); and

i. carrying the card reader containing codes by the user anywhere and initiating the payment or transfer anytime (309).

9. A method for issuing the e-cheque by the payee using the generated codes comprises the steps of:

a. selecting the payee's smartphone as transaction platform for offline transactions and selecting the payer's smartphone or ATM as transaction platform for SMS transactions by the payer (401); b. connecting the payer's magnetic- stripe or smart card reader to a transaction platform and unlocking the card reader with a PIN known only to the payer (402);

c. issuing the e-cheque from the codes contained in the card reader by the payer to the payee's phone number from the transaction platform using e-cheque book system, offline if the transaction platform is the payee's smartphone or through SMS (403); d. verifying the transaction platform by the validation system at the e- cheque processing server and decoding the e-cheque by the logic system (404);

e. identifying the transaction as inter-bank or intra-bank transaction and the payee as a single or multiple bank account(s) holding payee (405);

f. communicating with multiple bank accounts holding payees for confirmation on the credit bank account and with the e-cheque processing server of the payee's bank for all inter-bank transactions (406);

g. transferring a value entered by the payer from the code holder account of the payer to the code holder account of the payee at the e-cheque processing server (407);

h. transferring a currency value entered by the payer at the bank server by the electronic fund transfer system from the co-existing current account of the payer to the co-existing current account of the payee for intra-bank transactions and to the settlement account for inter-bank transactions (408);

i. re-issuing the e-cheque by the e-cheque re-issue system to the payee's phone number and the e-cheque is received through the SMS by the smartphone user payee and intimation is received through the SMS by the non-smartphone user payee (409);

j. connecting the payee's magnetic- stripe or smart card reader to the payee's smartphone or ATM after receiving the e-cheque or intimation and unlocking the card reader with the PIN known only to the payee (410);

k. decoding the e-cheque by the e-cheque book system in the payee's smartphone or ATM, reading the value contained in the e-cheque and writing the same as codes into the non-volatile memory of the card reader (411); and

1. carrying the card reader containing codes by the payee anywhere and payment or transfer is made any time (412).