Universal Financial Token with Rule-Module Clearinghouse
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Solution Overview
Problem
Current financial transaction systems, such as those using magnetic stripe cards and smart cards, are cumbersome and costly due to the need for multiple cards, high replacement costs, and security vulnerabilities, while lacking the convenience of universal access to multiple financial accounts.
Innovation Solution
A universal financial token using dedicated short-range contactless communications, like RFID, that allows a single token to access a remotely located Rule-Module Clearinghouse for managing multiple financial accounts, requiring user verification through a personal code and providing secure, durable, and convenient transactions.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Adaptability or versatility
If magnetic stripe cards are used for financial transactions, then users can access their financial accounts, but users must carry multiple cards for different accounts which is cumbersome and expensive
Solution Approach 1:
The patent implements a universal financial card system where a single magnetic stripe card can access multiple financial accounts through a centralized clearinghouse. The card contains a universal identifier that the clearinghouse uses to retrieve and manage multiple account numbers, allowing one card to perform the function of multiple account-specific cards.
Solution Approach 2:
The clearinghouse acts as an intermediary between the magnetic stripe card and multiple financial administrators. It receives the card identifier, retrieves the appropriate account number from its database, and facilitates the transaction with the correct financial institution, eliminating the need for users to carry separate cards for each account.
2Reliability
If magnetic stripe cards are used for financial transactions, then users can conduct transactions, but the cards and readers are prone to wear and demagnetization requiring costly replacements
Solution Approach 1:
The patent stores multiple account number copies in the centralized clearinghouse database rather than embedding multiple magnetic stripes in the card. The single magnetic stripe on the card contains only a universal identifier, and the actual account information is copied from the clearinghouse during transactions, reducing wear on both card and reader while eliminating costly replacements.
3Adaptability or versatility
If smart cards with multiple accounts are used, then users can access multiple financial accounts with one card, but the cards are more expensive to manufacture and distribute
Solution Approach 1:
The patent extracts the multiple account information from the physical card and places it in the centralized clearinghouse database. The card itself contains only a simple universal identifier, while the complex account data is stored remotely and accessed as needed, significantly reducing card manufacturing costs while maintaining multi-account functionality.
Solution Approach 2:
The universal financial card system allows a single card design to access multiple financial accounts from different administrators. The card's magnetic stripe contains a universal identifier that works with any participating financial institution through the clearinghouse, eliminating the need for institution-specific cards and reducing manufacturing and distribution costs.
4Productivity
If magnetic stripe cards are used, then users can conduct transactions, but the transaction process is time-consuming requiring card selection and multiple swipes
Solution Approach 1:
The system performs preliminary actions by pre-loading multiple account numbers into the clearinghouse database associated with the card's universal identifier. When the card is swiped, the clearinghouse immediately retrieves the appropriate account number without requiring multiple swipes or card selections, significantly reducing transaction time.
Solution Approach 2:
The clearinghouse provides immediate feedback to the terminal after a single card swipe by automatically retrieving and providing the correct account number. This feedback mechanism eliminates the need for manual card selection and multiple swiping attempts, streamlining the transaction process.
Data Source
AI summary
A method and a system for conducting financial transactions that include a user selecting from a plurality of proprietary financial accounts to authorize processing of a real-time, on-line electronic financial transaction using only one universal financial token and a remotely located rule-module clearinghouse. The universal financial token is a portable wireless proximity token for universal financial account access having dedicated short range contactless communications capabilities and is encoded with a user's unique user code. The rule-module clearinghouse contains at least one rule-module registered to a user which includes at least one pattern data of a user associated with at least one execution command of the user.