Funds transfer system

Abstract

A method of transferring funds includes the steps of linking a first "smart card" to a first financial institution, debiting an account held at the financial institution and recording a corresponding credit value in the first smart card. The first smart card is then linked to a second, similar device, the credit value in the first device is reduced, and a corresponding credit value is recorded in the second device. The second device is then linked to a second financial institution, the credit value in the second device is reduced, and a corresponding credit value is recorded in an account held at the second financial institution. The first and second devices each store at least a portion of a program which is run in a synchronized interactive manner between the first devices. The invention extends to a system for implementing the method.

We claim: 
     
       1. A method of transferring funds including the steps of: linking a first portable data storage and processing device to a first financial institution, the first portable data storage device storing at least a portion of a program;   debiting an account held at the financial institution and recording a corresponding credit value in the first portable data storage and processing device;   linking the first portable data storage device to a second, similar device via a terminal means, the second portable data storage device storing at least a portion of a program which is run in a synchronized, interactive manner with the portion of the program stored in the first portable data storage device;   reducing the credit value in the first device and recording a corresponding credit value in the second device;   linking the second portable data storage and processing device to a second financial institution;   reducing the credit value in the second device;   and recording a corresponding credit value in an account held at the second financial institution.   
     
     
       2. A method according to claim 1 wherein the terminal means receives the first and second devices and permits data transfer therebetween, the terminal means operating under the control of a stored program to facilitate interaction of the first and second devices. 
     
     
       3. A method according to claim 1 wherein the first and second financial institutions are one and the same bank, building society or another similar institution. 
     
     
       4. A method according to claim 1 wherein the first and second financial institutions are different banks, building societies or other similar financial institutions. 
     
     
       5. A method according to claim 1 wherein the first and second portable data storage and processing devices are "smart cards" comprising electronic data storage and processing circuitry on a credit card-like substrate, operating under the control of stored software. 
     
     
       6. A method according to claim 1 wherein the first device is allocated to an individual registered at the first financial institution, while the second device is allocated to a retailer or other commercial entity, the magnitude of the reduction in the credit value stored in the first device corresponding to the value of a transaction between the individual and the retailer or commercial entity. 
     
     
       7. A method according to claim 1 wherein the second device totals the credit values recorded therein, so that the credit value recorded at the second financial institution corresponds to the total of all credit values recorded in the second device in a predetermined period. 
     
     
       8. A system for transferring funds including: first and second portable data storage and processing devices, each storing at least a portion of a program which is run in a synchronized, interactive manner between the first and second devices;   first terminal means for linking the first device to a first financial institution;   second terminal means for linking the second device to a second financial institution;   and third terminal means adapted to receive the first and second devices and to permit data transfer between them, so that a credit value stored in the first device which corresponds to a debit from an account held at the first financial institution can be reduced by a desired amount and a corresponding credit value can be recorded in the second device, the second device being adapted to transfer the credit value stored therein to an account held at the second financial institution.   
     
     
       9. A system according to claim 8 wherein the first and second portable data storage and processing devices are "smart cards" comprising electronic data storage and processing circuitry on a credit card-like substrate, operating under the control of stored software. 
     
     
       10. A system according to claim 9 wherein the first and second terminal means are adapted to link the respective smart cards to the respective financial institutions via a data network. 
     
     
       11. A system according to claim 9 wherein the third terminal means is a card reader device adapted to receive both smart cards and to allow data transfer therebetween. 
     
     
       12. A system according to claim 11 wherein the card reader device operates under the control of a stored program which facilitates the interaction of the first and second smart cards. .Iadd. 
     
     
       13.  A method of transferring funds comprising: linking a first smart card to a first financial institution, said first smart card storing at least a portion of a program;   debiting a first account held at said first financial institution and recording a corresponding credit value in said first smart card;   linking said first smart card to a second, similar smart card via a terminal means, said second smart card storing at least a portion of said program which is run in a synchronized, interactive manner with the portion of said program stored in said first smart card, said program being consistent with a value transfer protocol of said smart cards;   reducing said credit value in said first smart card and recording a corresponding credit value in said second smart card;   linking said second smart card to a second financial institution;   reducing said credit value in said second smart card; and   recording a corresponding credit value in an account held at said second financial institution..Iaddend..Iadd.   
     
     
       14.  A method as recited in claim 13 wherein said terminal means is a single unit including a keypad for entering said credit value and a display for displaying said credit value and receives said first and second smart cards and permits data transfer therebetween, said terminal means facilitating interaction of said first and second smart cards..Iaddend..Iadd.15. A method as recited in claim 13 wherein said first smart card is allocated to an individual registered at said first financial institution and said second smart card is allocated to a commercial entity, and wherein the magnitude of the reduction in said credit value stored in said first smart card corresponds to the value of a transaction between said individual and said commercial entity, whereby the direct transfer of currency from said individual to said commercial entity is allowed..Iaddend..Iadd.16. A method as recited in claim 13 wherein said value transfer protocol ensures implementation of a predetermined transaction sequence to effect the transfer of credit value 
     
     
        from said first smart card to said second smart card..Iaddend..Iadd.17.  A method as recited in claim 16 wherein said first and second smart cards exchange messages during said transaction sequence and wherein subsequent messages carry information from previous messages, whereby implementation of said predetermined transaction sequence is ensured..Iaddend..Iadd.18. A method as recited in claim 13 further comprising: sending a first random challenge from said first smart card to said second smart card, thereby ensuring to said first smart card that said second smart card is valid; and   sending a second random challenge from said second smart card to said first smart card, thereby ensuring to said second smart card that said credit value in said first smart card has been reduced..Iaddend..Iadd.19. A method as recited in claim 13 wherein at least one of said smart cards is embodied within an integrated circuit mounted on a substrate and wherein contacts on a surface of said substrate allow said terminal means to apply power to said integrated circuit and to permit data transfer to and from said integrated circuit..Iaddend..Iadd.20. A method of transferring funds comprising:   linking a first smart card to a first financial institution, said first smart card storing at least a portion of a program;   debiting a first account held at said first financial institution and recording a corresponding credit value in said first smart card;   linking said first smart card to a second, similar smart card via a terminal means, said second smart card storing at least a portion of said program which is run in a synchronized, interactive manner with the portion of said program stored in said first smart card;   exchanging messages between said first and second smart cards, each reply message being dependent upon information received from an earlier message;   determining whether each received message is valid using said information received from an earlier message, wherein when it is determined that a message is not valid, said program terminates;   reducing said credit value in said first smart card and recording a corresponding credit value in said second smart card;   linking said second smart card to a second financial institution;   reducing said credit value in said second smart card; and   recording a corresponding credit value in a second account held at said   
     
     
        second financial institution..Iaddend..Iadd.21.  A method as recited in claim 20 wherein said terminal means is a single unit including a keypad for entering said credit value and a display for displaying said credit value and receives said first and second smart cards and permits data transfer therebetween, said terminal means facilitating interaction of said first and second smart cards..Iaddend..Iadd.22. A method of transferring funds comprising: linking a first smart card to a first financial institution, said first smart card storing at least a portion of a program;   debiting a first account held at said first financial institution and recording a corresponding credit value in said first smart card;   linking said first smart card to a second, similar smart card via a terminal means, said second smart card storing at least a portion of said program;   running said program in a synchronized, interactive manner between said smart cards;   a step for performing the function of ensuring that said first and second smart cards are valid and are continuously linked during said running, whereby fraud is reduced;   reducing said credit value in said first smart card and recording a corresponding credit value in said second smart card;   linking said second smart card to a second financial institution;   reducing said credit value in said second smart card; and   recording a corresponding credit value in a second account held at said   
     
     
        second financial institution..Iaddend..Iadd.23.  A method as recited in claim 22 wherein said terminal means is a single unit including a keypad for entering said credit value and a display for displaying said credit value and receives said first and second smart cards and permits data transfer therebetween, said terminal means facilitating interaction of said first and second smart cards..Iaddend..Iadd.24. A smart card for transferring funds, said smart card being arranged for effecting the following: linking a first smart card to a first financial institution, said first smart card storing at least a portion of a program;   debiting a first account held at said first financial institution and recording a corresponding credit value in said first smart card;   linking said first smart card to a second, similar smart card via a terminal means, said second smart card storing at least a portion of said program which is run in a synchronized, interactive manner with the portion of said program stored in said first smart card, said program being consistent with a value transfer protocol of said smart cards;   reducing said credit value in said first smart card and recording a corresponding credit value in said second smart card;   linking said second smart card to a second financial institution;   reducing said credit value in said second smart card; and   causing a corresponding credit value to be recorded in a second account held at said second financial institution..Iaddend..Iadd.25. A smart card as recited in claim 24 wherein said terminal means is a single unit including a keypad for entering said credit value and a display for displaying said credit value, and wherein said terminal means receives said first and second smart cards and permits data transfer therebetween and facilitates interaction of said first and second smart cards..Iaddend..Iadd.26. A smart card as recited in claim 24 wherein said first smart card is allocated to an individual registered at said first financial institution and said second smart card is allocated to a commercial entity, and wherein the magnitude of the reduction in said credit value stored in said first smart card corresponds to the value of a transaction between said individual and said commercial entity, whereby the direct transfer of currency from said individual to said commercial entity is allowed..Iaddend..Iadd.27. A smart card as recited in claim 24 being further arranged wherein said value transfer protocol ensures implementation of a predetermined transaction sequence to effect the transfer of credit value from said first smart card to said second smart card..Iaddend..Iadd.28. A smart card as recited in claim 24 being further arranged wherein said first and second smart cards exchange messages during said transaction sequence and wherein subsequent messages carry information from previous messages, whereby implementation of said predetermined transaction sequence is ensured..Iaddend..Iadd.29. A smart card as recited in claim 24 being further arranged for effecting the following:   sending a first random challenge from said first smart card to said second smart card, thereby ensuring to said first smart card that said second smart card is valid; and   sending a second random challenge from said second smart card to said first smart card, thereby ensuring to said second smart card that said credit value in said first smart card has been reduced..Iaddend..Iadd.30. A smart card as recited in claim 24 being embodied within an integrated circuit mounted on a substrate and having contacts on a surface of said substrate to allow said terminal means to apply power to said integrated circuit and to permit data transfer to and from said integrated   
     
     
        circuit..Iaddend..Iadd.1.  A system for transferring funds comprising: first and second smart cards, each storing at least a portion of a program which is run in a synchronized, interactive manner between said first and second smart cards, said program being consistent with a value transfer protocol of said smart cards;   first terminal means for linking said first smart card to a first financial institution;   second terminal means for linking said second smart card to a second financial institution; and   third terminal means adapted to receive said first and second smart cards and to permit data transfer between them, so that a credit value stored in said first smart card which corresponds to a debit from an account held at said first financial institution can be reduced by a desired amount and a corresponding credit value can be recorded in said second smart card, said second smart card being adapted to transfer said credit value stored therein to an account held at said second financial institution..Iaddend..Iadd.32. A system as recited in claim 31 wherein said third terminal means is a single unit including a keypad for entering said credit value and a display for displaying said credit value and receives both smart cards and allows data transfer therebetween, said third terminal means facilitating interaction of said first and second smart cards..Iaddend..Iadd.33. A system as recited in claim 31 wherein said first smart card is allocated to an individual registered at said first financial institution and said second smart card is allocated to a commercial entity, and wherein the magnitude of the reduction in said credit value stored in said first smart card corresponds to the value of a transaction between said individual and said commercial entity, whereby the direct transfer of currency from said individual to said commercial entity is allowed..Iaddend..Iadd.34. A system as recited in claim 31 wherein said value transfer protocol ensures implementation of a predetermined transaction sequence to effect the transfer of said credit value from said first smart card to said second smart   
     
     
        card..Iaddend..Iadd. 5.  A system as recited in claim 34 wherein said first and second smart cards exchange messages during said transaction sequence and wherein subsequent messages carry information from previous messages, whereby implementation of said predetermined transaction sequence is ensured..Iaddend..Iadd.36. A system as recited in claim 31 wherein said first smart card is further adapted to send a first random challenge to said second smart card, thereby ensuring to said first smart card that said second smart card is valid; and   wherein said second smart card is further adapted to send a second random challenge to said first smart card, thereby ensuring to said second smart card that said credit value in said first smart card has been reduced..Iaddend..Iadd.37. A system according to claim 31 wherein at least one of said smart cards is embodied within an integrated circuit mounted on a substrate and contacts on a surface of said substrate allow said terminal means to apply power to said integrated circuit and to permit data transfer to and from said integrated circuit..Iaddend..Iadd.38. A system for transferring funds comprising:   first and second smart cards, each storing at least a portion of a program which is run in a synchronized, interactive manner between said first and second smart cards;   said program stored on said smart cards being arranged to perform the following when run, exchanging messages between said first and second smart cards, each reply message being dependent upon information received from an earlier message, and   determining whether each received message is valid using said information received from an earlier message, wherein when it is determined that a message is not valid, said program terminates;     first terminal means for linking said first smart card to a first financial institution;   second terminal means for linking said second smart card to a second financial institution; and   third terminal means adapted to receive said first and second smart cards and to permit data transfer between them, so that a credit value stored in said first smart card which corresponds to a debit from an account held at said first financial institution can be reduced by a desired amount and a corresponding credit value can be recorded in said second smart card, said second smart card being adapted to transfer said credit value stored therein to an account held at said second financial   
     
     
        institution..Iaddend..Iadd.39.  A system as recited in claim 38 wherein said third terminal means is a single unit including a keypad for entering said credit value and a display for displaying said credit value and receives both smart cards and allows data transfer therebetween, said third terminal means facilitating interaction of said first and second smart cards..Iaddend..Iadd.40. A system for transferring funds comprising: first and second smart cards, each storing at least a portion of a program which is run in a synchronized, interactive manner between said first and second smart cards;   means for performing the function of ensuring that said first and second smart cards are valid and are continuously linked during said program, whereby fraud is reduced;   first terminal means for linking said first smart card to a first financial institution;   second terminal means for linking said second smart card to a second financial institution; and   third terminal means adapted to receive said first and second smart cards and to permit data transfer between them, so that a credit value stored in said first smart card which corresponds to a debit from an account held at said first financial institution can be reduced by a desired amount and a corresponding credit value can be recorded in said second smart card, said second smart card being adapted to transfer said credit value stored therein to an account held at said second financial institution..Iaddend..Iadd.41. A system as recited in claim 40 wherein said third terminal means is a single unit including a keypad for entering said credit value and a display for displaying said credit value and receives both smart cards and allows data transfer therebetween, said third terminal means facilitating interaction of said first and second smart cards..Iaddend.