System and method for processing credit and debit card validity and funds transactions from vending machines and similar terminals

US5285382A · kind A · utility

Assignee

• Keyosk Corp. · US

Inventors

• Karl H. Muehlberger · Lakeland, US
• Gary Francis · Westminster, US

Key dates

• Filing date: Feb 25, 1991
• Grant date: Feb 8, 1994
• Expiry date: Feb 25, 2011

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/02
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

A system and method for processing credit card transactions includes a data processor with memory storage capable of accessing an electronic clearing facility through a time rated (e.g., long distance) communication link. The system generates a real-time communication with the clearing facility to determine card validity and to initiate funds collection for transactions above a predetermined amount, and generates an off-line batch communication to the clearing facility at a time when communication rates are reduced to initiate funds collection for transactions in the system below the predetermined amount. The system relies upon local card validation, including memory storage of a previously validated card during a predetermined time period, as well as rejection of previously invalidated cards during another predetermined time period. The system and method is particularly useful for remote automated vending machines and automatic teller machines which typically handle a large volume of credit and debit transactions, each of which represents a small dollar amount.