System and method for transferring funds

Abstract

A system and method for electronic transfer of cash or cash equivalent between a sender and a recipient includes an initiating regional office for initiating the transfer and which receives an amount of money to be electronically transferred from the sender and a verification ID protocol from the sender, an initiating authorization center for storing the amount and the verification ID protocol in an account database, a dispensing authorization center for communicating with initiating authorization center and a dispensing regional office. When the recipient provides the verification ID protocol to the dispensing regional office, a financial card is issued to the recipient containing funds equivalent to the amount initially prescribed by the sender. The system provides the sender with the ability to provide the receiver (at a remote geographical location) with a secure, anonymous, ATM compatible financial card having a particular preset monetary value even in the case where the recipient does not possess proper identification documents.

Description

[0001]This application is a continuation of application Ser. No. 09 / 874,042, filed Jun. 6, 2001, which claims priority from U.S. Provisional Patent Application No. 60 / 209,579 filed Jun. 6, 2000.FIELD OF THE INVENTION[0002]This invention relates generally to systems and methods for transferring funds and more particularly to systems and methods for electronic transfer of funds between a sender and a recipient.BACKGROUND OF THE INVENTION[0003]In the area of personal financial transactions, there are occasions when individuals have an acute need to send or receive cash quickly by rapidly transferring money from one location to another distant location. These situations range from individuals who want to provide funds to their dependents who are away from home to business travellers who require convenient access to funds in remote locations. Accordingly, the ability to easily and conveniently “wire” money to a remote location is extremely desirable for these individuals.[0004]However, w...

AI Technical Summary

Problems solved by technology

However, wire transfer of funds is a banking function which is not generally available to the general public.

Typically, bank wire transfers cover very large amounts of money and are only suited for business transactions.

Wire transfer costs for consumer-related transactions at these organizations or related banks are relatively high and there are significant transfer processing time delays.

There are a number of drawbacks to the money transfer process described above.

A recipient must find an agent location which is open, which can be difficult to do during non-business hours and which carries sufficient cash to complete the transaction.

Also, the privacy of both sender and recipient is compromised because the transaction is dependent on sales agent interaction.

Finally, delays may occur as a result of agent transposition or typographical errors.

Moreover, such a system is very labor-intensive and costly to operate in part due to the potential for employee theft of currency.

While this unique serial number identifier is used to establish “security” of transactions at the point-of-sale, it can also create an audit trail which can compromise the anonymity of the user's card.

Some of the disadvantages associated with these kinds of fund transfer systems relate to the fact that they are closed systems and require participants (i.e. sender and recipient) to have accounts with the organization or an affiliated organization.

Also, in the case of a person who requires funds in an emergency situation, in such a case it is likely that the person is without means of transportation to get to the nearest wire transfer office and that they are not in possession of their identification papers (i.e. stolen).

Further, travellers cheques are sometimes troublesome to convert to cash and are not uniformly accepted by international vendors.

The use of credit cards used abroad usually incurs relatively high transaction costs and often results in unfavorable currency conversion.

Debit cards are of limited use globally lower rates merchant acceptability.

Even wire transfers are expensive, slow and still require the recipient to carry cash.

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