CA2069955C - Method and system for remote delivery of retail banking services - Google Patents

Abstract

A practical system (50) and method for the remote distribution of financial services (e.g., home banking and billpaying) involves distributing portable terminals (54) to a user base. The terminals (54) include a multi-line display (102), keys "pointing to" lines on the display (108), and additional keys. Contact is established between the terminals (54) and a central computer (52) operated by a service provider, preferably over a dialup telephone line (62) and a packet data network (56). Information exchange between the central computer (52) and the terminal (54) solicits information from the terminal user related to requested financial services (e.g., for billpaying, the user provides payee selection and amount and his bank account PIN number). The central compute r (52) then transmits a message over a conventional ATM network (66) debiting the user's bank account in real time, and may pay the specified payees the specified amount electronically or in other ways as appropriate. Payments and transfers may be sc heduled in advance or on a periodic basis. Because the central computer (52) interacts with the user's bank as a standard P OS or ATM network node, no significant software changes are required at the banks' computers. The terminal interface is extremel y user-friendly and incorporates some features of standard ATM user interfaces so as to reduce new user anxiety.

Description

~091/0'~370 2 ,3,~.5 ~ PCT/US9~/0/1 l~lH~ AND ~Y~l~1 FOR REMOTE DELIVERY
OF
RETAIL B~NKING SERVICES

FIELD OF TaE INVENTION

The present invention relates to a method and system for distributing financial and other services to remote locations, and more specifically, provides banking type financial transaction handling via remote data terminals located in users' homes, offices or other locations (i.e., "home banking" or "remote banking"). Still more specifically, one aspect of the present invention involves using the ATM (automatic teller machine) network (interchange) as a data communications network for conducting banking financial transactions from homes and offices.

BACKG~OUND ~ND SUMMARY OF TEE INVENTION

Not long ago, "home banking" was thought to be just around th~ corner. With the advent of relati-~ely inexpensive, powerful personal computers, the computer industry hoped (and predicted) that a per~onal computer with communications capability ~ (e.g., modem) would soon find its way into every home.

wug1/0'~37~ 3 '~ PC~/~S9~/071~3 It wa~ generally believed by many that the home computer would become a central, integrated part of everyday life and would proliferate as have radio and television receivers in past decades. It was expected that people would prepare and file their income tax returns by computer, conduct most or all financial transactions (including billpaying) through software interfacing their personal computer and telecommunications lines with banks and other financial institutions, etc. The home personal computer was expected to largely replace the U.S.
Postal Service as a means of communicating with and contacting the outside world. People would draft personal letters using word processing software on the personal computer and telecommunicate the letters electronically to the intended recipient over telecommunications networks. It was expected that shopping would be done electronically by perusing electronic merchandise and grocery catalogs "online"
and placing orders electronically over a telecommunications data network; and that even newspapers would be read electronically "online"
(thus obviating the need for delivery of hard copy).

A few banks and other finançial institutions actually developed "home banking" systems designed to interface with home personal computers expected to soon be found in most households.

For a variety of reasons, the dream of a world-wide network of home ~omputers providing a vast array of electronic services to a majority of the ;3 v~
~0~1/09370 PCT/U!S90/0~1;3 inhabitants of industrialized nations has simply not been realized.

Ordinary.people are generally not used to computers and many avoid them whenever possible.
While the next generation may be highly computer literate, many of their parents and grandparents have little or no computer experience and would much rather continue doing things "the old way." Even computer literates who own home personal computers find use of the computer to be relatively limited.
As one example, it continues to be relatively expensive and impractical to send "mail"
electronically. Telecommunicating over telephone lines is relatively expensive, and only just recently have regional telephone companies entered the public data network (PDN) business thereby increasing capacity and reducing user costs. Moreover, most intended electronic mail recipients do not even have computers, the necessary communications equipment and the knowledge and experience.

Perhaps more importantly, the "learning curve"
associated with familiarizing oneself with new software is often so steep that even computer .
litera~e people look upon learning a new software package with great disdain and apprehension.
Thousands upon thousands of different software pacXages are on the market, but the top sellers are typically th~ first packages to be introduced. This i8 because users tend to continue to use software they already know and resis-t learning new packages unless they are convinced the effort will be W09~ 37~ t; !~ ' I tj i P ~ S gO/O / I _ worthwhile. Even "user friendly" software may be very time consuming to learn. Many users would probably prefer to continue their banXing transactions in "the old way" rather than spending even only a few hours learning a completely new home banking software package.

In addition, the cost of providing home banking services have been enormous. Service providers incur very high communications costs in linking their central processors with PC users, banks, and payees (merchants). Many payees also do not accept electronic payments (for lack of substantial volume), forcing setvice providers to make costly paper-based payments. Settlements processing can also be costly, as banks must install special purpose software and operating procedures. These and other costs have been passed along to consumers, thereby dampening the demand for home banking services.

Thus, although a small percentage of people have effectively come to utilize and rely upon some of the vast variety of services accessible through a home computer as an integral part o~ their daily lives, the vast majority continue to communica~e by post and telephone, shop by visiting retail stores or leafing through hard copy catalogs received in the mail, and pay their bills by writing checXs and sending them through the mails.

In part because of th~ problems discussed above, PC-based home banking is not yet a practical reality for most consumers. In fact, many home banking WO91/~37~ PCT;~S90/07153 2~9~ .3 programs launched in the past have been declared failures and discontinued. See, for example, Egner, "Not Quite Ready for Home Banking", The EFT Sourcebook, pp 171-175 (1988); and Tyson, " 'Survival' Kit: Pens and Stamps Instead of Video", American Banker (March 16, 1989).
Few corporations continue to market cumbersome, hard-to-use, PC and modem-based home banking systems developed a few years ago. Covidea, a joint venture between Chemical Bank and AT&T, was the earliest, most notable PC-based home banking enterprise. After $70 million in investment and nearly lO years of development and marketing, Covidea recently terminated its operations. Chemical and AT&T cited obsolete technology as the principal reason for closing operations. Knight-Ridder, AMR and others have ceased operating their PC-based home banking services. The following institutions, however, continue to operate home banking systems:

YVO 9l/~937S) ~ 3 V ~ Pcr/~s90/07l~

MAJOR HOME BA~nKING GPERATORS

Oper~tor Name of Service ~st. Users Bnnk of Americ~ Homeb~nking 37,000 M~nuf~cturers Hanover Excel 7,000 Cltib~nk Direct Access15,000 Chsse M~nhattan Spectrum 5,000 MAdison B~nk Home Teller 2,000 Princeton Telecom licensed to b~nks 2,000 H~rbing~r Computer licensed to banks 2,000 Prodigy licensed to banks 10,000 Source: T~leservices Report, Arlen Communic~tions, 1987 Vid~otext Industry Associ~tion, 1988 Prodigy (a joint venture between IBM and Sears) is the primary major operator actively pursuing the national market. Much like the banks, Prodigy targets personal computer users (with modems) with extensive videotext service (e.g. airline reservations, and home shopping). Unlike the banks, however, bank services are secondary and Prodigy hopes to offset some of its high costs with advertising revenues. Even if Prodigy succeeds, its servic~s are aimed at a high-end, technology-user --not the broader market comprising the majority of bank customers Telephone banking operators have recently begun to allow customers to pay bills from home. Some such .:

' ' V093/0)370 ,~l3~J !J ~ j PCT/ ~S90/07l~3 telephone billpaying systems involve voice response technology to provide automatic handling of limited customer financial transactions (thus eliminating the requirement for human operators to answer and handle customer calls). Several independent telephone billpaying services have emerged (e.g. Checkfree and Merchants Network), but most billpaying services are offered by individual banks. Recent voice-response technology advances have enabled telephone banking and billpaying to become the banking industry's fastest growing retail product. Payments Systems, Inc., a leading electronic funds transfer consulting firm, estimates that 5-7 million U.S. households use telephone banking in 1988 versus approximately 2 million in 1985.
.

Nonetheless, telephone billpaying has serious .-limitations because of its lack of a visual interface (i.e., display). Telephone voice response systems only permit the presentation of very limited, simple al~ernatives. Sophisticated service offerings are not practical because of their reliance on -omplex branching alternatives which can not be easily remembered by users. As a consequence, telephone billpaying users easily lose track of their place;
confirmation and review of payments is limited; users need to keep track of payee code numbers on separate paper lists; and user options such as scheduling payment~ become exceedingly complex and thus virtually impractical. Telephone billpaying service providers have high cost structures and, despite advances in voice-response technology, telephone billpaying has serious inherent service limitations.

W O ~1/09370 '~'~ PC~r/~S90/07153 Telephone banking is convenient but has inherent limitations which make billpaying and other complex financial services very hard-to-use. ATMs, on the other hand, are very easy-to-use, but lack the convenience of a telephone.

ATM usage has grown dramatically in the past decade. There are now approximately 140 million cardholders in the U.S. Japan has over 135 million ATM cardholders, and Europe has 122 million cardholders. Approximately 25% of U.S. households use ATM card 5 or more times per month. These cardholders have demonstrated a high degree of comfort with electronic banking. These customers tend to be under 40, upwardly mobile, and convenience-oriented. See, for example, Kutler, "Marketing Effort is Needed to Swell Ranks of ATM Users", Consumer Survey, American Banker pp 73~76;
"Survey of ATM Networks and Debit Card Userg", The Nilson Report (i987 Ed.); and "Three-Quarters of Households to Use AT~s by Year 2,000", Bank Systems and EquiPment p 38 (September 1987).
While ATMs are very easy~to-use, they currently allow users to access only a limited number of bank : teller services~ A bank!s own ATMs are typically connectéd by direct line to the bank's data processing system. The bank's data processing system, in turn, communicates with a regional (or national) "ATM Network" -- a specialized digital packet network which communicates ATM and POS (point of sale) transactions among banks using standardized ~J~3~-J~),J
WO91/0937() PC~/US90/071~3 message protocols. These ATM networks and associated digital switches permit someone using the ATM of one bank to access an account in another bank, for example.

ANSI and others have established standards on ATM digital message protocolc and other features of ATMs. A more-or-less standard, generic ATM interface has developed in the banking industry, making it relatively easy for a user to use any ATM on the ATM
network once has he learned how to interact with this more-or-less standard interface. Of course, ATMs produced by different manufacturers may differ in key placement, number of keys, key legends, screen size, etc. However, there has been a trend toward standardization so as to minimize user discomfort with using a "foreign bank" ATM.

Of course, a bank customer wishing to use the ATM network to conduct a financial transaction typically has to travel to a nearby ATM (e.g., at a local bank branch). Moreover, most ATMs generally do not permit customers to pay bills or conduct other complex financial transactions -- typically limiting the user to withdrawals, account inquiries, account transfers, and, if the ATM the user accesses is that of his own bank, deposits.

It is known to utilize the ATM network to co~duct financial transactions other than in the manner discussed above. The following references are generally relevant to use of an ATM network/switch WO9l/0~31ll 2 IJ '~ PCT/~'S~0/07153 for processing various types of financial transactions:
ITS Develops SHAZAM Bill Payer For Consumer and Merchant Convenience", ITS Current, pp 3-5 (March 1988);
Levy, J., "The Delicate Balance of ATM Industry Standards", The EFT Sourcebook, pp 35-38 (1988) National Directory of Shared ATM/POS Networks 1987 Edition, TransData Corp.;
Interreqional Sharing Model ~f the Shared Network Executives Association, pp 467-70;
Zimmer, "A Leading Analyst Investigates Whether the ATM Market Has Reached Its Saturation Point or is Poised for Expansion", American Banker, p 13, Vol. 152, No. 234 (December 1, 1987);
Garsson, "NCR Universal Credit Union Claims A
First with Home Banking Services", American Banker, p 10 (August 24, 1983);
Anderson, "Electronic Funds Transfer is Reaching the Point-of-Sale; Banks, Retailers Look to EFT
Transactions to Lessen Processing Costs, Increase Market Share", ~merican Banker, p 32 (July 28, 1982); and "Electronic Networks Springing Up All Over:
Systems Linking Automated Teller Machines, Point of Sale Devices are Established or Contemplated in Several Areas of the Country", American Banker, p 7 (March l9, 1982).
It appears from the articles referenced above that others in the past have explored the use of an ATM network/switch to route point-of-sale and/or billpaying data requests and transactions. For example, the National Directory reference (see above) claims that four ATM networks provide participants with home banking services (although this clai~ may actually be false). The "Shazam" system, under 2~Jt~ .3 ~ 3 3 W091/09370 PCr/US90/07~3 development in Iowa, permits a consumer to pay bills to prespecified accounts using a ban}c ATM or special purpose ATM type "billpayin~ terminal" located in a ~ranch bank and communicating directly over the ITS
ATM network. The MAC system permits a PC-based home banking service provider to use the network to perform limited functions such as balance inquiry and funds transfers. Aggregated bill payments are transmittad to banks using the MAC networ~ as a simple data carrier at the close of the banking day in batch mode.

Some point-of-sale (POS) systems do exist which are capable of automatically generating debit requests and applying such debit requests to an ATM
network (e.g., to result in immediately debiting a purchaser's account). Specifically, it appears that some such POS systems include a "concentrator"
central computer connected to local modems. The local modems receive incoming calls over dialup ~elephone lines from remote POS stations located at retail sites. When a purchaser makes a purchase, he provides a magnetic stripe card which is encoded with identity and account information readable by the remote POS terminal. The purchaser also is required to input his PIN (personal identification number) for security reasons. The POS station autQmatically dials the central computer and transmits an identification o~ the retailer; purchaser bank and account information; and a dollar amount to be debited. The central computer reformats the POS
request into a standardized POS debit request messag~
which it transmits over the ATM network. The ,~J~3~ 3~
W091/09370 Pcr/~sso/07133 transmitted debit request causes the purchaser's bank account to be immediately debited, and may also provide a feedback message to the remote POS terminal indicating that the purchaser had an account balance exceeding the purchase amount and that the purchase amount has been successfully debited from the purchaser's bank account. Additional mechanisms cause the debited funds to eventually be paid to the retailer.

The following patents are generally relevant to prior dedicated home banking terminals and associated systems/networks:
U.S. Patent No. 4,634,845 to Hale et al U.S. Patent No. 4,689,478 to Hale et al TJ.S. Patent No. 4,69~,397 to Grant et al U.S. Patent No. 4,305,059 to Benton U.S. Patent No. 4,341,951 to Benton U.S. Patent No. 4,6~5,276 to Benton et al U.S. Patent No. 4,536,647 to Atalla et al The two Hale patents relate to a specific dedicated home banking terminal and associated system. Grant et al broadly teaches a system which integrates banking and brokerage serviceC via a data communications gateway between the two systems. The three Benton patents relate to details concerning personal banking~financial transaction terminals.
Atalla et al teaches a portable banking terminal including data encr~ption capabilities and discusses communicating over data communications lines with a data switch (see FIGURE 1 and associated text~.

The following patents relate to banking terminal security considerations:

W~i/09370 ~ !J ,~ Pcr/~sso/07 153 U.S. Patent No. 4,390,968 to Hennessy et al U.S. Patent No. 4,525,712 to Okano et al The following additional patents are of general interest as representing the state of the art:
U,S. Patent No. 4,454,414 to Benton U.S. Patent No. 4,578,535 to Simmons U.S. Patent No. 3,920,926 to Lenaerts et al U.S. Patent No. 3,65~,795 to Wolf et al U,S. Patent No. 4,713,761 to Sharpe et al U.S. Patent No. 4,683,536 to Yamamoto U.S. Patent No. 4,678,895 to Tateisi et al U.S. Patent No. 4,594,663 to Nagata et al U.S. Patent No. 3,375,500 to Fowler et al U.S. Patent No. 3,970,992 to Boothroyd et al U.S. Patent No. 3,648,020 to Tateisi et al U.S. Patent No. 4,654,482 to DeAngelis Most banks believe that remote banking is a good idea waiting for an acceptable, cost-effi~ient, easy-to-use delivery system. Most bank customers dislike the time consuming drudgery they devote every month to paying bills and conducting other banking transactions, and wish a low cost, easier way existed to perform the~e transactions. Unfortunately, the prior art discussed above does not provide any practical architecture for providing comprehensive banking services tincluding paying plural hills to user selected payeqs) in the home or office over standard dialup telephone lines via an ATM network.

The present invention provides a solution to many of the problems discussed above. In particular, the present invention provides a practical, cost-effective, workable system and method for delivering banking and other financial services (including billpaying capabilities) to remote sites ' . , .
.~' ,.

.
: .
.~ . ,, ' W0~1/09370 ~ .j,; 14 PCT/~S9~/~715 such as customer homes and offices while avoiding the pitfalls encountered by home ~anking experiments of the past.

The present invention capitalizes on the convenience of the telephone and the widespread familiarity with automatic teller machines. Previous "home banking" applications required a personal computer (PC), a modem, complica~ed software procedures and considerable training and/or computer knowledge. Home banking was thereby confined to the extremely small niche of sophisticated PC users.
Now, with new technology and an established base of 140 million ATM cardholders, the present invention can reach a large market with low cost services:

The present invention serves this market by providing a low cost (possibly ~ree) ATM-like terminal, which preferably uses low-cost Applications Specific Integrated Circuit (ASIC) and surface mount technology for low cost and high relia~ility;

~ The present inv~n~ion targets remote bankiny service to 50 million U.S.
households owning ATM cards, 21 million of whom show a high degree of comfort with - electronic banking;

~ The present invention preferably utilizes ATM and telephone company digital communications networks, thus avoiding a ' , ,' ~s~ 937o ~'J~ 3 ~ P~-r/usgo/o7 large upfront fixed investment and ensuring low operating costs;

The present lnvention system costs are supported by sharing processing savings with banks, payees and advertisers (who target ads to users based on spending patterns).

Briefly, the present invention provides dedicated telephone-based banking terminals to users for home or office use ~"home banking"). An asynchronous communications link is connected to a telephone company public data network (or other digital packet network) between the remote terminal and a central computer system operated by the service provider. A central computer system analyzes and processes the user payment instructions -- typically processing a user's request for many discrete financial transactions at one time. The central i computer stores information about these transactions in a database it maintains, and then generates electronic funds transfer (EFT) requests which it co~ n-cates to the user's bank via an ATM
network/switch. For example, the central computer syst~m may debit the u~er's account at his bank (e.g., via a POS debit message passed over the ATM
network) and electronically transfer the fund to a holding account or bank. The central computer then distributes the funds (bill payments~ to the payees requested by the user.

. . .
, Wogl/093~0 ~ PC~/~,SgO/0~153 ATM networks have been used for ATM use and more recently for point-of-sale (POS) uses. When combined with new PDN service as in the preferred embodiment of the present invention, ATM networks permit deveLopment of a market at minimal upfront, fixed cost and very low variable operating costs. The system provided by the preferred embodiment of the present invention basically acts as a conduit connecting bank depositors with their bank through telephone company gateways and ATM networks. The service provider need not build its own network, and banks need not install new communication lines or software.

Since ATM networks have in the past usually provided only limited services (e.g., withdrawal, deposit and account inquiry, and mora recently, point-of sale transaction handling), the present invention offers a new use of the existing ATM
networks to provide transactions not previously supported by the networks and also provides a new central computer/co lnications system performing new functions -- in addition to providing a linkage never before existing between two networks (i.e., a digital - packet network accessible through dialup telephone gateway, and an ATM network) for the purpose of home banking.

Payments can be processed i~mediately and made using EFT means lautomated clearinghouse, direct deposit in concentrator accounts, point-to-point, etc.) through payment network. Certain EETs are processed through the originating ATM network (or .
.
.
. .

3~
~091/09370 PCT/US9U/07153 though another ATM network). Payments not made electronically are sent by post in the form of a check and payor invoice information list ("check and list"). In addition, the central computer system can transmit to the user's bank the names of payees and other Federal Reserve Regulation E information through the ATM network using POS formats. This permits the customer' 5 bank to print a unified statement listing the billpaying transactions as well as normal bank transactions (e.g., deposits, debits, and ATM withdrawals).

Thus, once entered into the system a user terminal is linked in the preferred embodiment through a gateway to a public data network (PDN) service of a regional telephone company. Telenet and other PDN services have been available for years, and these ~ervices remain competitive to the regional telephone companies on an interstate basis. However, the data packet price of local PDN services is usually lower for regional telephone companiesl (because the cost of their networks is amortized over many users and alternative uses.) The preferred embodiment preferably includes compact inexpensive remote user terminalR capable of interfacing with standard dial-up telephone lines.
One version of the preferred embodiment t~rminal is compact i~ size (3.75" x 8" x l.75"), portable and ~imply connect~ to the user's telephone jack. A
second version of the terminal has a telephone handset and associated electronics permitting the consumer to use the device as a terminal or as a " ' :

W09l/09370 ~ ~J~ P~T/~iS9~/071~3 conventional telephone. No hardware or installation expense is required. Users operate the terminal intuitively, and users need not have prior computer experience. Since the present invention targets ATM
users, the terminal is designed to interact with users in a manner similar to ATM user interaction.

Users preferably activate the preferred embodiment terminal by simply turning it on. ThP
terminal automatically dials a central processor system over dialup telephone lines. Users are preferably welcomed in the name of their own bank.
They may gain access to services by identifying their account from a menu of authorized household users, then entering their bank ATM personal identification number (PIN). A built-in security device is preferably provided to afford high level security to the user, and the terminal has the capability to transmit encrypted data.

Users preferably receive and view messages through a four line (e.g., by 24 or 30 character) liquid cry~tal display (LCD). Instructions are communicated through a backlit display adjacent to the LCD. Messages are communicated at high speed (e.g., 1200 baud) over dialup lines. The terminal takes advantage of 3ignificant human factors rssearch and development performed by the U.S. Department of Defense and adopted by major ATM producers. By positioning selection ~"soft" ) keys next to options displayed on the screen, users can more easily understand and quickly respond to ins~ructions.
Users thereby communicate by single-stroke responses ,- ~
- , . . . .
.
' ' , ' , . , :
. .
-W(~ 91/0~371) ~ V ~ 3 '~ 3 P~r/i~ 7l~3 to choices displayed, and the service provider has much greater system flexibility with which to format ~creens and expand services.

Moreover, the preferred embodiment terminal and as~ociated user interface to some extent mimics the terminal/interface provided by standard ATMs already in use by millions of bank customers. The preferred embodiment thus eliminates or reduces the level of apprehension many users might harDor toward learning a new terminal and interface. When a typical new user first uses the terminal provided by the present invention, he intuitively knows how to navigate throuqh the user interface/menu structure because the user interface is (at least superficially) similar to that of ATMs he has used in the past. Of course, the user interface and terminal provided by the present invention offer far more functionality than is available through a standard ATM, and in fact are extremely different from the standard ATM
terminal/interface. However, the user's initial impression is perhaps the most important and the typical user's first impression to the terminal provided by the present invention is that it is "like" an ATM and can be operated intuitively without reading a us~r manual and without any steep learning curve. The primary market for the services provided by the present invention is 21 million highly active ATM users who will view the invention as a convenient, comfortable extension of current ATM
serYices. The services may also appeal to certain no-ATM users, who will be attracted to the expanded Wo91/0937(~ ~ ' '~;~''j P~T/~iS90/011~3 ~0 services (e.g., billpaying) provided by the present invention.

The major emphasis in designing the terminal and its support system is service and ease-of-use. This has been achieved by adopting a number of features contained in the popular ATM machines employed by banks, such as for example:.

1) Keyboard and Screens: The latest ATM
machines contain simple uncluttered keyboards usually consisting of an alpha/numeric keypad, a cancel key, enter key and a number of "soft" (i.e., programmable) selection keys adjacent to the screen which have no fixed function. The function of these soft keys is described on the screen and is related to service that is being provided. Older machines tend to have multiple dedicated function keys that perform one specific function. The user must push the proper function keys in the correct sequence to complete the transaction in which he is interested. Thes~
keyboards tend to be cluttered and confusing. The displays associated with this type of keyboard are usually limited to several lines of text. The dedicated key keyboard design approach is necessary because the limited size of the display precludes the presentation of multiple alternatives among which a u~er ~ay select. Newer machines have larger video displays consisting of from four to eight line~ and "soft" keys that fulfill different functions depending on information provided on the screen.
U~er~ are presented with multiple choices and asked to ~elect the desired alternatlve. The user pushes -;. , . - , . ::

-: : :

,~J~ 3'~3j W041/0~370 PC~r/~:S~0/0/1;3 the "soft" key that corresponds to the selection he wishes to make. Similar to the newer ATM machines, the terminal provided by the present invention contains a four line by, for example, 24-character LCD di6play (many ATMs use video displays), four "so~t" keys, a cancel and a numeric keypad. In addition, the terminal provided by the present invention contains a HELP key and two screen control keys labeled PRIOR and NEXT. Unlike ATM machines a user who needs assistance can ob.tain it regardless of "where he is" in the transaction process by pushing the HELP key. Contact sensitive help provides explanations regarding the transaction in which he is involved. The screen control keys permit the u~er to scroll forward and backward when reviewing lists.
Using the NEXT key also permits movement fro~ one screen to the next at the user's pace. The CANCEL
key permits the user to coxrect erroneous input or back out of certain transactions when he has mistakenly chosen an alternative.

2) Security: The ATM establishes a user's ide~tity by requiring a card and the use of a personal identification number (PIN~. The terminal provided by the present invention uses a slightly differ¢nt approach in that no card is reguired (although in at least one configuration a card may be used if desired). The terminal is generally in a more secure location than is an ATM machine. At SIGNON the terminal transmits a unigue number that identifies a particular household. The individual selects hi9 name from the authorized hou~ehold list.
He i8 then requested to enter his PIN in much the W091/093~0 '''~~ ' P~r/~s9o/o7l~3 same manner as with an ATM machine. The data transmitted from the terminal is encrypted, providing security against line tapping or theft of the line.
An ATM uses a bank card to determine who is signing on the machine; in contrast, in accordance with one aspect of the present invention, terminal possession is used as an indication of one of several users in a household.

3) Look and Feel: The newer ATM machines are menu driven, the user is presented with a number of alternatives and he selects the one he wishes by using "soft" keys. This is preferable to the user having to follow a list of steps coordinating screen instructions with different dedicated function keys on a nearby keyboard. There is less distraction and confusion when the user is provided alternatives on the screen. He can be given assistance upon request when he is uncertain. There is no limited reading of keycaps or coordination of key colors or reading of sequen~ial instruction lists posted on the machine.
In a similar fashion the terminal provided by the present invention is menu oriented. The user can get to his desired service quickly (generally with ' selections from 1-2 levels of menus). The combination of "soft" keys and menu branching provides a look and feel very similar to an ATM with which he i8 comfortable and experienced although the terminal provided by the present invention also provides ~everal additional important feature~ which provide increased functionality.

, . .

WO91/09370 . ~ .3 -3 ..3 -3 Pcr/~590/07l~3 4) Services: The ATM primarily provides balance inquiry, cash withdrawal and check deposit accompanied by a receipt. Some ATMs permit limited bill payment and last date of deposit and withdrawal. Instead of printing out a receipt like an ATM, user of the terminal provided by the present invention receives a statement from his bank at the end of the month. In addition, it is unlike an ATM
in that you generally cannot receive money or make deposits through the terminal (unless an additional interface to a debit card or "smart card" is provided). The terminal user is, however, a~le to pay all bills (present and future or pay periodically), transfer funds (today and in future), obtain balance information, look forward and backward at statement activity (payments, deposits and transfers) transfer funds among accounts and banks, obtain information on bank services and rates anywhere there is a standard telephone RJ-ll jack.
With the addition of an alpha keyboard (which may be an expan~ion feature) the terminal can provide E-mail and other alpha-dominated services.

5) Personal Service: The terminal provided by the preferred embodiment of the present invention is compact and portable and is available for use twenty-four hours a day. The list of payees the user ~elects can be anyone, not a preselected li~t as wi~h the few cases where u~ers pay bills from an ATM. The services are available when the user wants, where the user wants. His billpaying time is reduced and he need not contend with stamps, check printing fees, envelope~, and postal delivery.

.' ~
i WO91/09370 ~ i 'J '~ ~ PCr/~rS90/O~Ii3 2~

6) Network Configuration: The ATM machine is usually connected to a bank's computer via telephone or hard line. Accounting information i5 provided by the bank's computer. Transactions that must be passed to other banks are transmitted through the ATM
network. Those ATMs that permit billpaying inventory the bills that are to be paid during the day at the ATM machine and are then posted after the close of the banking day by the bank. The ORL system passes bill payments diractly through the ATM interchange (in the form of point-of-sale transactions) for debit and credit of accounts on a real-time basis.

To use billpaying features, customers provide the service provider in advance with a list of payees (names, account numbers, addresses). A typical household (owning an ATM card) writes 26 checks per month and the list might, for example include payments for:

~utilities - telephone, gas, water, electricity, cable TV;
~residential - rent, mortgage, home, ~ lnsurance;
- ~automotive - gas credit card, auto insurance, auto loan;
~credit card - AMEX, Visa, Master Charge and others;
~retail - major department stores; ~ -~financial - installment loan, taxes, stock broker fees;
~medical - physician, dentist, health insurance;

, ' ~ - ' :

Wo 91/1)~37() ,~, !3 ,, ~ ~ 3 3 5'C~/1,~59(J/0,1~3 ~business - office parking fee, newspapers, magazines; and ~miscellaneous - child care, tuition, church, vacation home, domestic employees, etc.
Users may review past payments and schedule future payments (e.g., timed to meet anticipated funds availability such as a paycheck or check deposit). Users may also have the system provided by the present invention automatically pay fixed, recurring payments, such as rent, mortgages, and installment loans.

The preferred embodiment of the present invention processes information transmitted through the PDN using a fault-tolerant central processor to ensure system integrity. Once the system provided by the present invention processes user payment instructions, it communicates with the user's bank through a regional or national ATM network. Regional ATM networks (which are usually shared banking cooperatives~ have been developed to permit bank customers to access any ATM in their local area.
Users are no longer tied to their own bank's ATMs.
The Cirrus and Pluq ATM networks offer the same service on a national basis by linking required ATM
networks. The ATM network application proYided by th~ present invention preferably requires no new hardware or software modifications to ATM
communication systems. And, very importantly, unlike other home banking systems (which require specialized software in automated clearing house capability), the ~ , WO91/09370 PCT/~S90/a71~3 pre~ent invention requires little or no new software or operating procedural changes a-t a user's bank.

Using an ATM network, the service provider pays customer bills by first debiting the user'~ account at his network bank -- preferably by sending a POS
debit message over the ATM network. Such standard POS messages not only permit the service provider to ~ass payee or other information over the network to the user's bank for use by the bank in generating a unified monthly statement, but also provide an automatic account inquiry/balance check function (so that the user does not overdraw his bank account inadvertently). Funds are transferred ~hrough the ATM network to t~e service provider's holding bank (or a clearing account maintained by the service provider in the user's bank). Payments are -preferably processed immediately electronically, where feasible, either immediately or "warehoused"
for a short time for transmittal with other user payments to a single payee. Otherwise bills are paid by paper check.

Electronic payments can be processed through an Automated Clearing House (ACH) system, ~e.g., Federal Reserve) directly to a payee ~point-to-point), or to the payee's bank (directly or indirectly ~hrough an ATM n~twork or other remittance channel). In racent years, payees have become more receptive to working with electronic payment~ proce~sor~. Aside from ~ini~izing a payee's proce sing costs and float, the pre ent i~ention offers payees more predictable cash flow, lower returns (bad checks), and accounting and .J I J t) .) ',~ 3 W(~91/09370 PCr/US90/0/15 bookkeeping advantages related to consolidated payments.

The invention provides some additional benefits to payees. By processing customer bills as POS
debits, liability for payment immediately shifts from the service provider to the ATM network ~or bank).
Thus, the service provider can advance funds to payees immediately with the comfort that the advance will be covered on the next business day by the customer's bank or the ATM network. This reduces the payee's float by 1-2 days versus electronic billpaying systems. Secondly, payees may hold remittance accounts at banks who are members of the ATM network. Debited funds and billing information may be sent directly to these accounts. Payees who may not otherwise have the capability to accept electronic payments may gain that capability. This reduces the payee's remittance processing costs and permits the bill paying service provider to make fewer, costly paper-based payments.

The cost of processing payment~ is relatively low in terms of equipment and communication costs.
Most costs are incurred in responding to user inguiries, correcting payee posting errors, maintenance of payee databases, and coordination between u~ers, payees, and their banks. Higher c03t3 are incurred by payments made by paper check, although theqe costs are mitigated by interest earned on float duP to postal delivery time.

., ~J J,~ j WO91/09370 PCr/~'S90/Q71;3 Other innovative features provided by the present invention include:

~ A new type of inexpensive ergonomically designed user-friendly dedicated home banking terminal including for example a four line LCD display with associated control buttons "pointing to" the display lines for selection of displayed options and auxiliary "Select One", "Or", "Change Screen", "Enter Number" LED illuminated command prompts that are turned on and off by the central computer system as needed.

~ Advanced "ATM-like" terminal layout: -~ Four line by 24 character liquid crystal display;
~ Four adjacent selection (i.e., "solft", programmable) keys directly referencing the display to be used for selecting alternatives;
~ Two function keys to provide on demand help and cancel functions;
~ Twelve alpha/numeric telephone-type keypad for numeric input and later for limited alpha input plus the "#" and "*" for later communications applications and compliant with present telephone eguipment standards;
and ~ Two screen control keys that permit ~09l/09370 ,7 ' !~ PCT/UiS90/0~

scrolling of the screen forward and backward when permitted by system so~tware.

~ Two level access security consisting of a unique terminal identification ("signature") automatically transmitted upon establishment of the asynchronous communications link and an ATM type PIN
number entered by the user for system verification.

~ Onboard PIN and data encryption (DES or other standard) provided by ROM resident random number qeneration algorithm activated by a seed maintained in RAM and a real-time clock.

~ LED backlit instruction panel adjacent to and working in conjunction with the active LCD display controlled main system software.

Dual purpose terminal operating as a data entry and display device and alternately, as a push button (tone/pulse) telephone communications set -- including a common keypad used for tone generation for telephone co lnications and for data entry.
.
A dual i301ated circuit keypad containing a double contact low cost switch to activate two unrelated circuits as input to :

wo ~I/09370 ' ~ PCT/US90/071;3 the microprocessor and the telephone tone generator.

~ Data terminal that automatically transmits tone blocking signal to prevent intervention by call interrupt service.

~ The visual interface, flexibility and ability to recall information that permits the present invention to enjoy significant demand for automated hillpaying without a telephone's limitations.

~ Look and feel of the so~tware-user'!
interface in coordination with a 4x24 LCD -~
display and selection and control keys to provide rapid communications of financial ~-transaction information to main computer system.
~;
~ A terminal device that can act as a pass-through of analog voice signal to an externally attached on internally provided telephone or alternately transmit data (asynchronously).

A terminal device operating at low power levels permitting the trickle charge of internal ~torage batteries from a telephone 1 i ne source.

A terminal device that can store numerical .

':
':~
, ~ .

WO~3l/09370 ~ 3 3 3 r~ 3 PCT/~S90/07l53 data and transmit from a memory buffer upon command from an internal microprocessor.

~ ~. terminal device employing a 96 (up to 120) character LCD displaying the amount of information capable of being contained in a single common 128 byte packet data network packet.

The terminal is able to transmit a periodic randomly genera~ed code to the main system. The main system is able to verify that this numeric code is correct and assure that terminal communication link security is maintained.

~ The terminal is compact, 8 inches wide by 5.75 inches and 1.75 inches high with the telephone handset. The compact non-telephone model is ~ inches wide by 1 3.75 inches deep by 1.75 inches high. The compact model can aasily clip into a pocket or brie~case, and i5 approximately 53 cubic inches and weighs less than one pound.

~ The compact portable terminal con~ains two -RJ-ll jac~s 80 that a telephone line can be connected to one and a tel~phone to the other thereby permitting use alternati~ely as a terminal or telephone.

~ A terminal with an internal data bus that ' ~37(3 ~ PC~/~;590/07133 will permit direct edge connect retrofitting of an alphabetic keyboard and/or card swipe device;.

A system architecture connecting asynchronous, remotely located (home or office) dedicated purpose terminals (telephone and/or data) passing throu~h asynchronous gateway on~o a packe~ data network to a fault-tolerant computer which is in turn linked to a single bank or group of banks using the bank's ATM interchange network for the purpose of bill payment and funds transfer and balance inquiry and activity t~tement.
.
A system architecture connected to a network of electronic switches and/or payees.

~ Use of an online cornputer which processes customer bill payments and passes payee names and account information through the ATM interchange network to a user's bank for posting to his monthly statement;

~ A system architectur~ that permits immediate credit of funds to the service provider (~pon debit authorization against the user's account, liability for payment of fund pasRes immediately to bank and : interchange network).

WO~1/093~0 ~ PCr/US90/n71 ~ A system architecture that permits a combination of information access (account balances, account transactions) plus settlements (posting, reconciliation and clearing of funds).

o Extraction of bill payer and payee information for demographic and marketing analysis and retention in a database.

~ Maintaining such a database of billpaying information and extracting demographic information from this database for use in targeting advertisements or messages (the advertisements can be sent electronically to each home banking user each time he "signs on" his terminal and/or distributed in other ways such as mass mailings which do not violate user confidentiality).

~ Analysis of bill payer payment patterns for the purpose of directing online advertisements or messages targeted to differentiated groups of users.

~ A terminal screen which permits targeted advertising (or messages) without disclosing the user's name or other confidential information to the adverti~er (until the user request~ disclosure or - permits it).
':
~ A terminal oriented system that permits an WO9l/0937~ J-j j PCT/US~0/07l;3 immediate customer response to targeted, displayed advertisements (or messages), whose responses are then tran3mitted online or in batch mode to the advertisement sponsor.

A methodology of debits and credits for transferring of funds between banks using online remote terminals communicated through the ATM interchange network.

A methodology for debit of bill payments using online, remote terminals communicated through the ATM interchange network.

~ A methodology for use of an ATM
interchange network for payee credits on bills.

~ A remote termin21 oriented system directed at the ATM user population for home, office or other remote location bill payment, funds transfer and account review.

~ Deposit oriented financing for a remote terminal ba~3ed system for bill paym2nt, ~unds transfer and account review; and A cash incentive program for bills paid through a remote terminal based sy~tem for bill payment, funds transfer and account review.

~091~0937~ PC~/~'590/071~3 The present invention extends the convenience of popular automated teller machine (ATM) type service to user (alternatively referred to as customers or consumers) homes, offices and other locations. The present invention provides a highly efficient payments system that offers consumers the following advantages and ~eatures:

~ a low cost (possibly free), easy-to-use ATM-like communication terminal which is portable and simply connects to a telephone;

~ an incentive for every bill payment made through the terminal;

~ additional savings from postage, check printing, envelopes, and other costs for each payment made through the terminal;

~ convenience, privacy and estimated time saving~ of 75% from the drudgery of billpaying.

The added benefît of electronic fund~ transfer, banks and others gain as much as 40% processing cost savings and a new vehicle for remote distribution of services.

To attract volume, the service provider may price services to allow u~ers to ~ave money. The present in~ention provides the possibility of broad market di~tribution by providing users with a low W091/0937~ , PCT/~S90/07l;3 cost (possibly free), familiar ATM-like terminal. In addition to being provided with a low cost or free terminal, users may save $.30 in postage, check and other costs for each payment made electronically via the system. This totals to $7.30 per month savings for the average ATM household writing 26 checks a month. A service provider may therefore charge up to $7.~0 per month and still permit the user to save money.
.

More important than cost savings, however, is the vast amount of time the invention saves its users. Unlike PC's, telephones and prior terminals, the design of the present invention enables the users to intuitively master the terminal without relying on written instructions. Furthermore, the operations and coordination of system components in the form of modems, communications protocols, new securi~y codes, and operating software is obviated. The present invention relieves a common financial headache --!the time-intensive drudgery o~ billpaying. The system provided by the present invention is a quick, extremely easy-to-use alternative to conventional payments. Initial testing indicates that users can pay bills in 25% of the time needed to pay bills conventionally. Users may preferably receive a unified monthly statement ~from their bank) which consolidates and lists terminal-based transactions with conventional banking transactions (e.g., checks, ATM cash withdrawal~, deposits, etc.).

Early home banking efforts discovered that users liked using the systems to pay bills. They had only .,.~." , - ~ :
,~

~~9~/09370 PC~/US~30/07t;3 limited interest in other bank and videotext services, 80 the present invention has reduced its delivery costs by specializing in billpaying. While the present invention provides billpaying services, customers may also use the system to better manage their money. More sophisticated active users may better manage their money by, for example, chec~ing their account balances, viewing payment records, transferring funds between accounts, future dating of bills and funds transfers, and requesting other bank services. Future dating of bills minimizes usPrs float, and users may future date funds transfers to maximize interest bearing balances. Transferring funds betw2en ~anks is possible with immediate debit or credit within one day ~dependlng upon the ATM
network clearing procedures). The present invention thus provides a terminal designed to accommodate additional financial services in the event that users or banks demand (and are willing to pay for) more services. These may include comparative mortgage and CD quotes, tax deduction summaries, loan applications, electronic billing, third party billing, family budgeting tools, tax planning, and insurance services. Limited alphabet-based services (e.g. telephone directory) are also feasible with the terminal of the preferred embodiment and the terminal has the facility to add on an alphabetic keyboard.

By displacing paper checks and employing payee information for marketing purposes, the pre3ent invention of~ers significant benefitq to the major participants in the payments system:

- : ~ ", ~ , , ' ~ , , WO91/093~0 ~ 3 ~, ~ Pcr/~s90/07l53 3a ~ aanks (and other financial institutions) avoid the cost of processing and returning checks and funds transfers. Fully absorbed processing costs range from $.50 to $1.00 per check (marginal costs vary with volume). The present invention can save banks a substantial amount per paper check displaced.

~ Payees (such as utilities, mortgagors, etc.) avoid paper processing costs and improve cash flow. Typical remittances take 5-8 days to arrive by mail and cost from ~.15 to $.7S per payment. The present invention can provide a small charge to payees for each electronic payment and deliver payments in 2-3 days. This saves payees money per payment and compares favorably in cost to bank lockbox services.

~ Marketers (such as retailers and banks) can better advertise (or message) through the terminal. By analyzing users' payments, the present invention can target advertising or messages to users for 5-7 seconds after they SIGNON. Users may then respond if they want more information. Targeted (but low readership) direct mail costs advertisers $.45-$1.00 per piece. Pricing for confirmed leads starts at $5 a~d increases with the products value. T~is aspect of the present invention will off r advertisers ignificant benefits in terms of flexibility and cost savings. The terminal's screen for advertisements permits the 9ervice producer to target adver~isements to groups of . , .
:. - ' ~ ' ' : , 5 ~
~0~I/0937~ PCT/~S9~/071;3 users without disclosing the user's name (and confidential payment data) until the user so indicates his permission (by requesting more information from the advertiser).

Paymen~s processors earn interast on user payment float. The present invention debits a user's bank account on the date of payment. The payment is processed immediately, but interest is earned on the funds (float) until cleared.
When the system of the present invention cannot pay electronically, it earns interest on float for 5-8 days. A service provider will prefer to process payments by low-cost electronic means, however, providing better money management services for customers.

A major obstacle in building any volume-oriented business is the upfront investment required to reach a critical mass of customers. The present invention minimizes this investment by capitalizing on existing systems and customer bases. The present invention piggybacks on the evolving ATM and regional telephone company communications networks.

Most ATM networks ar~ bank-owned cooperativ~s and have exce~s capacity. The~e networks are likely to welcome the additional business provided by a syst~m in accordance with the present invention. By working with ATM networks, the sy~tem provided ~y pre~ent invention be~omes a utility for banks -- not a threat to banks. Eor example, once admitted on to the ~ystem, users can be welcomed in the name of W0~1/0~370 ,~';,r.~ 3 PCr/U590/071~3 their bank. Users also receive a single account statement from their bank, unifying terminal-based activity with conventional banking tran~actions and check payments. Back-office check processing and funds transfer economies can also be priced to provide costs savings to banks. Participating ~anks can be encouraged to advertise over the system provided by the present invention system at sharply reduced rates while back-office savings from reduced paper check volume develops. The advertising medium provided by the present invention offers banks an extremely powerful "cross-selling" tool ~a critical key to success in retail banking which involves increasing profitability by increasing the number of services sold to a single customer).
. , The present invention thus provides a highly advantageous system which offers an attractive proposition to a variety of participants in the payments system. Usars of the invention save time and money and can pay their bills and obtain other banking services wherever there is a telephone jack.
Banks sav~ back-office expense and an efficient means to service their customers. Bank owned ATM networks generate volume and earn fees. Payees improve cash float and save on costly processing of paper checks.
Advertisers gain a powerful, low~cost marketing tool.

BRIEF D~C~T~TION OF TEE DRA~INGS
~, These and other feature~ and advantages W~)1/0~37() ~ '3 , PC~/US90/07153 dsl will become better understood by studying the following detailed description of pre~ently preferred exemplary embodiments in conjunction with the attached APPENDIX (which is incorporated by reference herein) and the sheets of drawings, of which:

FIGURE 1 is a block diagram of a presently preferred exemplary embodiment of a financial services distribution system in accordance with the present invention;

FIGURE lA is a detailed sche~atic block diagram of the FIGURE l CPU.

FIGURE 2 is a block diagram of revenue sources provided to the operator of the FIGURE l system;

FIGURES 3 and 4 are elevated respective ~iews of alternate embodiments of a presently preferred exemplary remote terminal in accordance with the present invention;

FIGURES 3A-3E schematically depict different prompt combination~ provided by the FIGURE 3 terminals.

FIGU~ES 5A and 5B together are a schematic block diagram of the FIGURE 3 terminal;

FIGURE 6A~6C are different views of an exempl~ry keypad contact arrangement incorporated within the FIGURE 3 terminal;

WO9l/09370 ~ , ' 3 ~ Pcr/~is90/o7l~3 FIGURES 7A-8B are schematic flow charts of exempla~y program control steps performed by the terminals shown in FIGURES 3 and 4; and FIGURES 9-22 are schematic flow charts of exemplary program control steps performed by the CPU
shown in FIGURE 1.

DETAILED DESCRIPTION OF '1~ PREFERRED
EMBODIMENT
FIGURE 1 is a schematic block diagram of a presently preferred exemplary embodiment of a financial services distribution system ~0 in accordance with the present invention. System 50 includes a fault-tolerant central computer system 52 (hereafter referred to as "central computer"), a plurality of remote terminals 54, a digital packet network (e.g., "public data network") switch 56 ("PDN
switch"), packet assembler/disassembler 58 and associated asynchironous communications interface 60, and a dialup telephone network 62 selectively connecting remote terminal 54 to the communications interface.

Data is communicated between remote terminal 54 and central computer 52 through the PDN switch 56, the packet a~sembler/disassambler 58, the co~ nications interface 60, and dialup telephone line 62.

In the preferred embodiment, PDN switch 56, packet assembler/disassembler sa, asynchronous W~131/~()37~ '3 ~ PC~/US~/071 communications interface 60 and dialup telephone network 62 are entirely conventional and are preferably operated and maintained by a local or regional telephone cornpany. Switch 56 may comprise, for example, a conventional public data network of the type which communicates packets in CCITT X.25 protocol between central computer 52 and pacXet a~sembler/di3assembler 58. Similarly, packet - assembler/disassembler 58 and asynchronous communications interface 6Q may comprise conventional telephone company operated subsystems which convert the X.25 packet protocol existing on the PDN network into conventional asynchronous data format ~e.g., with seven or eight data bits, a start bit, a stop bit and conventional error checking fields).

Asynchronous communications interface 60 initiates and answers dialup telephone communications with remote terminals 54. Thus, remote terminals 54 interface with the remainder of system 50 using standard asynchronous protocol, central computer 52 interfaces with the remote terminals using standard X.25 protocol, and conversions between the two protocols (as well as distribution of the signals generated by the central computer to specific remote terminal~3 is handled by the conventional PDN switch 56, packet assembler/di~assembler 58 and communications interface 60 provided by the tel~phone company in the preferred embodiment.

Central computer 52 also interfaces with banking institutions and with other financial institutions 64 through the existing conventional automatic teller 4~

machine (ATM) interchange switch 66 (referred to herein as the "AT~ network"). The ATM network is capable of communicating ATM transaction messages as well as point-of-sale (POS) messages in a conventional manner using standard message formats.
As explained above, ATM switches 66 communicate data in a speci~ic, conventional interchange format between member banks or between automatic teller machines (ATMs) and member banks 64. In the preferred embodiment, central computer 52 is connected to ATM switch 66 (e.g., via one or more bisynchronous 9600 baud communications lines) and communicates digital signals to ATM switch using standard bisynchronous (e.g., point-to-point, SNA, etc.) communications protocol. Thus, in the preferred embodiment, central computer 52 "looks like" an ATM or POS node connected to the ATM network and associated switch. Central computer 52 may generate account inquiry commands, commands to debit and credit accounts, and the like -- just as would a bank's computer serving its ATMs or as would a stand-alone ATM or POS terminal. The ATM interchange switch 66 processes such ATM co ~n~ generated by central computer 52 in the same way that thsy process CO; ~n~ generated by ATMs. Although the ATM
interchange i5 ATM oriented, it is able to serve other terminal devices. For example, the ATM
interchange communicates with retail POS terminals which can directly debit and credit a customer's bank account in payment for purchases.

It is also possible to prGvide direct dialup lines for communicating data between member banks 64 o,,,"3 ~
W~(~1/0937~ PCT/~ 7153 and central computer 52 (e.g., using standard communications protocols agreed upon by the bank's data processing system and by central computer 52).
Use of the ATM switch 66 and associated netwark to carry ATM/POS commands generated by central computer 52 avoids the need to pro~ide any software modifications or other overheads within the member banks' data processing systems. Furthermore, use of the ATM switch 66 permits use of the network funds clearing process.

Central computer S2 also electronically communicates with additional remote data processing systems such as the Federal Reserve ACH 72 (e.g., via a Federal Reserve Bank data processing system 74), debit networks 76, wholesalers/remittance processors 78, direct payee computer systems 80, third party information providers 82 and advertisers 84. Such additional communications may be over dialup telephone lines if desired -- or other special communications arrangements/protocols (e.g., magnetic tape tran~fer sr the like) may be used depending upon particular applications. The link between cental computer 52 and the Federal Reserve ACH 72 permits payee c~ ~n~ to be electronically transferred to other banks using tha existiny Eederal Reserve electronic funds transfer system. The link with wholesalers and remittance processors 78 permits the payment of bills to a remittance center who in turn pay~ payees. The direct compl~ter payee link 80 allow~ central computer 52 to contact individual desired payee computer systems and directly effect download of payment related data (e.g., pursuant to a ~ 'J~j ~
WO~1/0937~ PCT/US90/07~;3 daily "clearing" process). The link to advertisers 84 may be used to transfer advertiser copy between the advertiser and the central computer system and to pass back to the advertiser the names of those customers who request information in response to ad~ertisements.

FIGURE lA is a schematic block diagram showing central computer 52 in somewhat more detail and also schematically depicting exemplary software modules used by the central computer to perform financial transaction functions. Central processor 52 in the preferred embodiment is a fault-tolerant mainframe computer of conventional design including, for example, multiple redundant processors, a dual interprocessor interbus, a dual-ported controller, and multiple redundant power supplies to ensure against data loss. Through use of this conventional fault-tolerant architecture, the failure of one processor or component does not stop processing but rather mere~y decreases system throughput.
Additional perip~eral equipment (e.g., tape drive 88, check printer 86, conventional mass storaqe device 84, and conventional communications interface/multiplexer 82) facilitate communications and billpaying transactions.

Central computer 52 is programmed (i.e., with software modules stored on mass storage device 84) to per~orm various billpaying and other financial function~ and to distribute billpaying and other ser~ices to remote terminals 54 on demand. In the preferred embodiment, the software modules executed , ~091/0~37~ PCT/~S9~/0/1~3 by CPU 80 are in large part entirely conventional (within new linkages between them) and perform, among other operations, conventional banking, ATM network communications network interfacing, database maintenance, etc. However, certain new software controlled functions (e.g., the terminal handling and associated functions, and the interfaces between the terminal handling and other, conventional software controlled functions) have been provided in the preferred embodiment to provide home banking and billpaying functions not previously available.

As mentioned above, many or most of the software-controlled operations performed by CPU 80 in the preferred embodiment are conventional and well-known in the banking industry. For example, it is conventional and well known to communicate standard ATM and POS messages between a central computer and an ATM network using conventional off-the shelf ATM and POS software, and central computer 52 in the preferred embodiment utilizes such conventional software to generate and communicate appropriate messages over the ATM network 66.
Conventional banking software packages exist which perform a variety of exceeding complex but entirely conventional functions (e.g., maintaininq audit trails to ensure transaction reliability, maintaining user account and vender files, provide clearing information at night, etc.) and the preferred embodiment central computer 52 executes such conventional banking software modules to perform such standard functisns. Conventional databa3e handling function~ are also typically integrated into banking ~091/09370 ,~ '? ' ~ r/~s~30/07l~3 and POS software modules to maintain customer information.

The following is a brief description of exemplary general functions performed by the various software control modules provided within CPU 80 shown in FIGURE 1~.

The manager 80A schedules and coordinates the flow of transactions through the various sys~em modules. As flow control it sends the transactions to th~ appropriate modules for processing and control of interactions with the external environment.

The device (terminal~ interface 80B enables the system to communicate with user terminals and the ~ystem CRTs. The device interface 80B formats terminal-bound messages for transmission to the terminals 54. In addition, the device interface 80B
is responsible for error processing, starting and stopping transaction response timers, updating any fields which are maintained in the user terminal, decrypting and logging of transactions. A detailed description of the terminal interface 80B will be provided shortly.

The routing module 80C permits efficient routing of transactions to the appropriate module ~or, servicing.

The authorization module 80D is the means by which the ~ystem determines the customer identity (through the PIN and other values transmit~ed by the /',, -,J ", ~
Wo(~1/0937() 1'C~/~90/071~3 terminal). User account number and PIN values are transmitted to the user's bank (over the ATM network 66 in the preferred embodiment) for verification.
When the authorization module 80D receives verification from the bank the user is cleared for transactions.

The settlement module 80E (part of a conventional banking or POS software system) is responsible for closing the current processing day and starting the next. The settlement module 80E
provides for flexible cutover times for the network and payee institutions. In addition, this module updates da'abases files and initiates daily reports by the reporting module.

Reporting involves the calculation and reporting of debits and credits and adjustments for the transactions performed on a daily and periodic basis. In addition, system and network activity, reconciliation, interchange settlement and disputed transaction reports are generated. The reporting module 80F in the preferred embodiment i5 conventional and operates in conjunction with a conventional database guery program which permits analysis and specialized report generation concerning cu~tomer transaction profiles.

The update/refre~h module 80G updates databa~e~
files following batch prvce~sing for a day in a conventional manner. Backup files are generated by this module. A sub-module also permits extracts of WO'31/09370 PCr/US90/071i3 ;J ~ ' J 3 50 database files to be generated and output to tape 88 or disk.

The banking module 80H is conventional and permits customers to pay bills without writing and mailing checks, obtain account balances and conduct funds transfer between accounts. For bill payment the customer's account is debited for the amount of the payment, the payment medium is created (check, ACH tapes, internal transfers) and exception items are segregated for review. The module 80H maintains customer database files, vendor files and transaction files. The banking module 80H provides ~acilities for marketing information analysis, accounting/audit trails, and customar service reports.

The interchange interface module 80I in the preferred embodiment enables the fault-tolerant computer system 52 to interface with the interchange network in a conventional manner. This module aOI
converts internal system transaction information to a format that is compatible with that of the network.
In addition, a log is conventionally maintained of all transaction communicated between the system and the network.

An important feature of the present inve~tion i3 the use of a conventional ATM network and associated standard ATM and POS message format to facilitate financial tran~actions not typically supported ~y the ATM network. As mentioned above, conventional ATM
network~ typically connect bank mainframe computers .;" ~ 3 ~091/1~310 P~T/~0/071~3 and POS (point-of-sale) concentrator computers toyether.

For example, a user having a bank account in bank A (the "on us" bank) connected to the Internet ATM network may use the ATM machine of bank B (a "foreign" bank) to withdraw from his bank A account.
The mainframe computer of bank B generates, in response to the user's request via the ATM message specifying the user's PIN (personal identification number), the user's account number, the user's bank and the amount to be withdrawn. This ATM withdrawal message is then sent over the ATM network and is received by the computer of bank A. Bank A checks the message for validity (i.e., to make sure the PIN
is correct), determines whether the user has a sufficient account balance to honor the withdrawal request (the message processing thus provide an automatic account balance check), and then processes the reguest by posting a debit memo against the user's bank account (the bank A computer does not actually withdraw funds from the user's account at this time, but will process the memo during the posting and settlement process later that day). The bank A computer then sends a confirmation message back over the ATM network to the bank B computer confirming that the user's account has been debited and that at clearing time bank A will pay the funds to bank B. Based on receipt of the confirmation message over the ATM network, the bank B computer controls the bank B ATM machine to dispense the requested funds to the ATM u~er.

. ' WO91/09370 _ PCr/~'S90/07153 An ATM "account inquiry" message also exists to permit the user to determine the balance of his bank account(s). Similarly, an ATM "account transfer"
message allows a user to transfer funds from one account to another in the same bank (but typically does not permit the user to transfer funds between banks).

Similarly, a chain of retail stores may permit processing of so-called "debit cards" (like credit cards, but rather than credit being extended by a lending institution to cover purchases, a debit card results in an immediate electronic debit of the user's bank account). A customer provides the retailer with his debit card which the retailer magnetically reads (e.g., using a "swipe" type magnetic card reader). The customer is then asked by the retailer to secretly key in his PIN into a keyboard, and the retailer keys in the amount of the purchase. A POS debit request digital message is then transmitted either directly over an ATM network (or indirectly via a dialup or dedicated telephone line and a central concentrator computer) for receipt by the user's bank. The POS debit request disital message typically contains the user's bank designation and bank account designation; the user's PIN (which is typically encrypted); the name or other d0signation of the retailer; and the amount of the purchase. The user's bank computer recei~es the POS
debit request mes3age from the ATM network, processes it for validity (i.e., valid PIN, valid account), ensures the user's account balance is in excess of the debit request, and then dehits the user's account , ~:

: .

~91/~9370 ~ J,~ PCr/~'S90/~71~3 (i.e., by posting a debit memo) and credits the retailer's account electronically (this typically requires the retailer to have worXed out an arrangement with the particular user's bank beforehand). The bank transmits a confirmation message to the POS terminal over the ATM network whi~h, when received, assures the retailer that the funds are available and have been transferred to his account.

POS credits are also possible using standard ATM
network messages. If a customer returns merchandise to a retailer that was paid for using a POS debit, the retailer may initiate a POS credit transaction (essentially the same as a POS debit except th~t funds are credited to rather than debited from the user's bank account).

Technically, some ATM networks handle POS debit messages and ATM withdrawal messages differently in that the ATM withdrawal message is not finalized until the end of day settlement process (that is, debits are held in a pending status during a business day until final reconciliation, settlement, and clearing and crediting of funds occurs after the close of a business day). POS debit messages on the other hand r2sult in immediate settlement in real-time (i.e., the payees account is credited immediately and liability shifts to the bank/ATM
network to clear/collect fund~ at a later time). For purpo~es of the arrangements disclosed herein, both types o~ processes are referred to as "real-time"
transactions since the resulting confirmation message ., .

, WV91/{l~370 ~"t~ 1J j ~ 3 PCT/US90/07153 over the ATM is in effect a real-time electronic guarantee that the bank and/or the ATM network will pay. In addition, "POS" and "ATM" type messages are sometimes referred to herein generically as an "ATM
network transaction message", and such term is defined to encompass ~oth types of messages. Some ATM networks are not capable of handling POS type meQsages, but rather process only the standard ATM
messages.

The preferred embodiment of the present invention uses the types of standard messaqes described above to facilitate electronic billpaying and other financial transactions. For example, a funds transfer from an account in bank A to an account in bank B may be accomplished by generating a POS debit message directed to the bank A account and a POS credit message directed to the bank B account and by then applying both of these messages to the ATM network. The service provider may pay bills by first d~termining the total amount of all of the bills to be paid at pre~ent, generating a POS debit message for application to the ATM network (so as to debit the user's account by that amount and credit the service provider's holding account by the same amount), and then disbursing the funds (electronically or by paper) based on receipt of the ATM confirmation me~sage. Account inquiry may be handled as a standard balance inquiry ATM or POS
mes age or pos~ibly a~ a "null" POS debit message.
One advantage of using POS debits/credit~ over ATM
style messages is that the POS mesqages are longer and systems software is de~igned to provide ~/091/09370 ' '~'j PCT/U~90/071;~

sufficient space in the message to transmit the name of the retailer and other Federal Reserve Regulation E information. The user's bank thereby takes a POS debit (with accompanying payee information) and merge it with the user's account file. Users thereby receive their usual bank statement that unifies conventional banking activity with their home banking activity. The home banking service provided need not send users an additional statement. The same result can b,e accomplished with a non-POS ATM message with a payee identifier code located at the ATM switch or the user's bank.

Typically, an independent service provider may operate central computer 52 and distribute terminals 54 as part of an ongoing business independent from the banking business. FIGURE 2 is a schematic block diagram o~ the sources of revenue provided to the service provider operating system 50. In order to make the operation of system 50 economically feasible, the operator of the system must be able to recover equipment a~d development costs and also make an additional profit. FIGURE 2 shows some of the sources of revenues to the service provider operating system 50. First, users o~ remote terminals 54 may pay a relatively nominal charge (e.g., $4.00-$6.00 per month) for the capability of paying bills elect~onically from their home. Users may also be asked to pay a deposit charge for the terminal which may then be u~ed by the ~ervice provider for finance ,, system expansion. The users' banks also are willing to pay a charge for each check or fund~ transfer they do not have to process. As is well known, a wo sl/0~37n , ~ , ,, .,., P~r/usso/07l~3 J ~

relatively high charge is associated with processing each check (or funds transfer), and reduction in the number of debits/credits processed constitutes a substantial savings to banks. The user's payees similarly may pay a nominal charge for electronic payments and consolidated payments due to the costs saved because funds are received quicker and proce~sed for less. The service provider will also earn some interest on its float for paper-based payments (i.e., funds debited immediately from users' accounts upon request for payment but not yet payed to the intended payee). Finally, system 50 may be used to distribute advertisements/messages to users via the re~.ote terminals 54 -- and advertisers can be charged for each advertisement actually distributed.
Furthermore, advertisers probably are willing to pay additional for the identity of those customers that request information in response to advertising. The present invention thus fills a marketing niche by providing services to banks, users, payees and advertisers simultaneously -- and can generate revenue by charging each of these entities an appropriate fee the value of the services provided (while also in certain cases earning interest on the float on the funds used to pay bills~. In addition to hardware, sof~ware and training limitation5, conventional home banking systems have high cost structure~. The~e cost~ must be pa~sed along to users -- further in~ibiting their demand. The invention permit~ low-cost delivery and a variety of revenue ~ources beyond the user. User fees can be kept low -- increasing demand.

/09~7~ PC~/~S')0/~71~3 FIGURES 3 and 4 are elevated respective views of alternate embodiments of remote terminal~ 54 as shown in FIGURE 1. As can be seen from FIGURES 3 and 4, in the preferred embodimen-t, the terminals 54 are available in two different types: a model which contains data entry and voice telephone capability (including a telephone handset 100 and associated telephone electronics); and a smaller, pocket-size version (shown in FIGURE 4) that contains no telephone voice capability. In the preferred embodiment, th~ two models each include a telephone connector, but the connector configurations are slightly different between the two models. In the FIGURE 3 version, an RJ-11 connector and associated wire is used to connect the terminal 54 to a telephone wall outlet. The FIGURE 4 version includes two RJ-ll connectors, one connected the terminal to the wall outlet and the other RJ-ll permits "in-line"
connection (if the user desires) to an exiting telephone device. In the preferred embodiment, the FIGURE 3 and FIGURE 4 terminals operate essentially identically and have similar or identical internal structures -- and therefore, the following discussion applies equally to both terminal embodiments (except where indicated to the contrary).

In the preferred embodiment, terminal 54 i~ an asynchr~nous, portable data proce~sing de~ice operating over un~ecured dialup non-dedicated telephone lines. Termin~l 54 includes an LCD display 102, screen control keyss (including a PRIOR key 104 and a NEXT key 106), an array of ~election control 108, a HELP key 110, a CANCEL key 112, and a standard .. .. : -W09l/0~37() ~l _ i pCT/~5)~/07153 5~

alpha-numeric keypad 114. A power-ON switch (not sho~n) may also be provided if desired.

In the preferred embodiment, LCD display 102 comprises a standard 4-line by 24-character alpha-numeric liquid crystal matrix-type display device. Thus, in the preferred embodiment, four lines of text of 24 characters each may be displayed simultaneously. Select control array 108 in the preferred embodiment includes four momentary ON keys -- each of which "points" to a different line of text currently displayed by display 102. Menu or option selections may thus be effected by displaying the different options on different lines of display 102 and permitting the user to select between the options by depressing the appropriate selection key within array 108 which points to the desired option.

An important feature of the present invention is the use of a multi-line alpha-numeric display of optimal site to alLow a single standard sized data tran~mission packet (e.g., 128 bytes long) to completely de~ine the content of the display. In the preferred embodiment display 102 displays only 4 x 24 = 96 characters -- a sufficiently small ~and optimal) number of characters to allow all of the characterq to be qpecified within a ingle 128-byte packet ~arried by typical PDNs. (The preferred smbodiment represents display characters in standard ASCII format RO t~at ea h character i8 represe~ted by a byte of data.) This not only minimizes cc 1cations co~t~, but also eliminates the need for a "packet assembler" or associated expensive ~V~ )937~3 PC~/~S9~/071;3 5g buffer memory to be incorporated within terminal 54.
In the preferred embodiment, terminal 54 is really "dumb" and need not provide any sophisticated processing of received display data but rather may simply display the data exactly as received -- and central computer 52 may thus completely define the display state of terminal 54 each time it sends any data to the terminal. This feature provides additional flexibility in terms of display formats (since the central computer 52 completely determines and specifies each and every display format displayed by terminal 54) while keeping the costs of ~erminal 54 down and nevertheless providing sufficient information for a user-friendly interface.

In the preferred embodiment, the alphabetic letters Q and Z are found on the "l" key of keypad 114 -- thus providing a full alphabetic character selection when needed similar to an ATM). Keypad 114 may be a standard, conventional keypad or it may preferably be of a special design to be described in connection with FIGURES 6A-6C (for the FIGUR~ 3 embodlment).

In the preferred ~mbodiment, the significance of depressing the PRIOR and NEXT keys 104, 106 depends upon context (i.e., "where the user is" in the software interface at the time he depresse~ the key). For example, PRIOR key 104 may in some cases ~elect the screen di~play which was displayed ju~t prior to the display of the current screen display --and the NEXT key 106 may select display of the next screen display of 6equence of predetermined screen ~ - ', ~'. -: .

. ' - ~ ,':
, W(~9I/0~37() ~ ,J" ,-j P~T/~S9~/07153 displays (assuming there is a "next" screen to be displayed). In other contexts, depres~ing the NEXT
key 106 may serve to confirm a transaction ~hould be performed. In still other con~exts, the PRIOR and NEXT keys 104, 106 act as scroll control keys (e.g., to permit the user to scroll through a list too long to be displayed all at once on four-line display 102). Controls 104,106 may thus be termed user interface navigation keys since they generally allow the user to "navigate" through the user interface comprising one or more sequences of screen displays.

Terminal 54 also includes light-prompt fields 102A-102D not shown in FIGURES 3 and 4 but shown in detail in FIGURES 3A-3E. In the preferred embodiment, these prompt fields are independently illuminated by light emitting diodes controlled by central computer 52, and provide the following four different legends: "Enter Number"; "Select One";
"Change Screen"; and "or" arranged as shown in FIGUR~
3A. In many instances, all four lines of display 102 will be displaying information but the user needs to be prompted as to what inputs he should next provide (e.g., numerical or alpha-numeric information; or selection from one of different display options).
Rather than providing an additional line of relatively costly LCD display 102 to provide this prompt text form, the preferred embodiment includes "light-up" prompt indicators 102a-102d in the form of windows backlit by light-emitting diodes which may be illuminated to provide the desired prompt (or combination of prompts).

'~09l/~9370 PCI/US9~/071~3 There are four different combinations of lighted prompts commonly ~sed in the preferred embodiment: -"Enter Number" alone (see FIGURE 3B); "Select One"
alone (see FIGURE 3C); "Change Screen" alone (see FIGURE 3D); and "Select One", "or" and "Change Screen" all being illuminated simultaneously (see FIGURE 3E).

Illumination of the "Enter Number" prompts as shown in FIGURE 3B would occur, for example, when central computer 52 requests a numerical value from the user to be entered via keypad 114. This value might be a number (e.g., the user's PIN, or a dollar amount or a date which a scheduled payment is to be made). The numerical entry sequence is generally completed by entering a confirmation key (e.g., the lowermost of the "pointer" keys 108 or the NEXT key 106).

Central computer 52 would control the "Select One" prompt to be illuminated (as shown in FIGURE 3C) when the user is to select one of several alternatives displayed on display 102. Typically, the user responds by making a selection -- that is, by depressing the one of "soft" (i.e., programmable3 keys 108 which points to the line of the display on which the option he deYires is displayed.
-The "Change Screen" prompt (see FIGURE 3D3 istypically illuminated when the NEXT key 106 i8 to be depressed (e.g., to confirm a previously entered reque~t, and/or to move on to the next creen in a sequence of screen~).

... . . . .
" , ' . . ~' , ' '~ .

W091/1~937() PCT/U!.590/U71~3 ~ J~ j 62 FIGURE 3E depicts the situation when the prompts "Select One", "or" and "Change Screen" are all illuminated. These prompts would be presented to the user when the user is to either (a~ select one of the options displayed on the display 102 (by pushing one of "soft" keys 108), or (b) move on to the next (or previous) screen (by manipulating navigation keys 104, 106).

To initiate the terminal session using terminal 54, the user need only depress the power-ON switch of the preferred embodiment. In response to this power-ON switch depressio~, terminal 54 automatically initializes display 102 and dials an appropriate internally-stored telephone number corresponding to PDN 56 and central computer 52. A modem (not shown in FIGURES 2 or 3) internal to terminal 54 establishes and maintains this communications link with central computer 52. To communicate through terminal 54, the user operates momentary ON keys 104-112 and/or depresses keys of keypad 114.

If an error occurs during data entry, the terminal user may push a CANCEL key 112 to correct the error. If he pushes CANCEL key 112 successively, he moves out of the function he has selected (e.g., to erase, one at a time, previously entered digits much as occurs when one depresses the CANCEL key on a standard ATM machine) and may eventually return to a main menu. Help key 110 may be pushed at any time to obtain contact sensitive help prompting. The PRIOR
and NEXT keys 104,106 may act as Vo~l/0~370 i''''''~ 3 PCr/~'S90/07l53 scroll up/scroll down keys in the appropriate context as already described.

If during a terminal session a period passes when there is no key activity for a certain time delay, terminal 54 times out and disconnects the telephone link with the PDN switch 56. In the preferred embodiment, transactions requested prior to such communications failure are not processed by central computer 52 unless the user has received a confirmation over terminal 54 that the requested transaction has been processed.

FIGURE 5A and 58 together are a schematic block diagram of terminal 54. Terminal 54 in the preferred -embodiment includes display 102, independently controllable LED prompts 102a,102b,102c and 102d (corresponding to the four independent illuminated prompts described above), user controls 104-114, and microcontroller 116 with associated EPROM 118 and RAM
120, an address latch 122, a bidirectional buffer/driver 124, an encryption functional block 126, an LED driver inverter 128, an associated la ch 130, an internal modem 132, and a data acce~s arrangement/connector 134.

The FIGURE 3 embodiment further includes a telephone module 136 and DTMF tone generator 138 connected to and a~socia~ed with voica handset 100.
The power supply 140 (e.g., a replaceable battery~ i~
also provided to power the various components of terminal 54 (or a conventional trickle charger :
' '.

W091/09370 ~ "~~~';'' ~ PCT/UiS90/07153 circuit may be used to c~arge a rechargeable battery from telephone line voltage).

Microcontroller 116 is the heart of terminal 54. Microcontroller 116 executes program control instructions stored in EPROM 118 in response to clock synchronization signals prov:ided by the crystal clock 142 -- preferably by applying address information on address bus lines A8-A15 and on bidirectional address/data bus PO~P7 (latch 122 may be used to latch this portion of the address) and re~rieving the resulting instructions in a conventional manner via bidirectional buffer 124 and the multiplexed address/data bus. Microcontroller 116 similarly accesses temporary storage locations in RAM 120 and is capable of reading from or writing to RAM in a conventional fashion (although EPROM 118 and RAM 120 are shown connected in series with one another in FIGURE SB, it will be understood that these components may actually reside in the same package, so that microcontroller 116 may independently access any storage location in either the EPROM or the RAM).

Terminal 54 i~ desired may further include a conventional read/write inter~ace to a conventional "swipe" type magnetic card raader or a conventional "~mart card". Such interface may be useful not only to input information to terminal 54 for transmisRion to central computer 52, but also to store in~ormation transmitted by the central computer to the terminal.
In one application, for example, central computer 52 may download a credit order to a magnetic card or "smart card" via terminal 54 -- thu~ in eff~ct ~09l/0937~ PCT/~SgO/071~3 providing electronic cash dispensing. Such downloaded debit cards or "smart cards" may then be used to purchase goods or the like.

In the preferred embodiment, microcontroller 116 controls display 102 by writing parallel information to the display (which in the preferred embodiment is an off-the-shelf LCD display module including a 4x24 character matrix LCD display and associated internal LCD controller) and by providing appropriate control signals to the display. A conventional encryption arrangement which preferably uses the conventional standard DES Data Encryption Standard (described in, for example, FIPS PUB 46, Federal Information Processing Standard Publication 1977 January 15 U.S.
Dept. of Commerce, National Bureau of Standards) may be used to encrypt and/or decrypt data in a conventional manner and provide encrypted/decrypted result to microcontroller or communications or further processing. The encryption arrangement may alternately comprise any other miniaturized encryption system (such as a system developed by Dr.
Ronald Rivest of MIT, Cambridge, Massachusetts and others and described in U.S. Patent NO. 4,405,829).

In the preferred embodiment, secured terminal co ~ications is provided by on-board encryption of the u~er's PIN (per~onal identification number) and financial data. The RSA [Rivest, Shamir and ~lterman) encryption al~orithm (somewhat similar to DES but not requiring passing of keys between the tran~mitter and the receiver) may be stored in EPROM
118 in the form of program control instructions. The :' ~

. 7 -. r~
W(~ ~31/09370 ~ ) Pcr/us~o/o7ls3 RSA encryption algorithm is driven by a 64-bit seed stored in RAM 120 or other RAM (which should be powered on at all timas by a lithium battery) at the time of terminal manufacture. A real-time clock 142 and associated clock power supply 143 are also provided in the preferred embodiment (the ~AM storing the ~eed, the real-time clock, and the clock power supply may be contained within a single package to conserve power if desired). A copy of the seed is preferably also maintained for each terminal 54 by the central computer 52 -- and the seeds are permuted in the same ways by the algorithms to produce random numbers in response to real-time.

During communications with the central computer 52, the terminal 54 may use the seed to periodically generate a pseudo-random number for encryption. This same seed is used by central computer 52 to generate the same pseudo-random number. Because the seeds and the algorithms are the same (assuming the real-time clocks can be periodically resynchroni~ed with one another), the generated random numbers are also identical to one another. The real-time clock 142 of terminal 54 may be periodically adjusted by the central computer 52 to ensure synchronization.

A us2r signing onto terminal 54 enters his PIN
which is added to (or is otherwi~e transformed u~ing a reversible process) the random number generated by the ~eed by microcontroller 116. This composite number is transmitted in encrypted form to central computer 52 where the same random number generated independently by the central computer is used to -V091/0937~ Pcr/uss~/o7l~3 ~7 recover the original PIN. The PI~ and central computer 52 (using standard encryption technigues compatible with those used on the ATM network 66) for transmi~sion over the ATM network.

Preferably, t~e user's PIN, the unique terminal identification ("ID") stored within the terminal EPROM 118, and all financial (i.e., "amount") information passed between the terminal ~4 and the central co~puter 52 is encrypted However, it may not be necessary or desirable to encrypt other information passPd between the terminal and the central computer (e.g., the screen display text information transmitted by the central computer 52 to the terminal 5~ since such encryption adds to the time needed to process the information.

A very high level of security is provided by the techniques discussed above. No key or seed is passed between the terminal 54 and the central computer 52, thus preventing an eavesdropper from obtaining the key and "spooking" the line ("spooking" refers to the -I
process by which an eavesdropper can listen into and follow the exchange between the terminal and the csntral computer long enough to synchronize his -terminal with the real terminal 54 and then capturing the line to replace the real terminal with hi~
terminal -- thereby 'Itaking over" the exchange).
Preferably, the ~AM storing the seed information - within the terminal will lose its stored information if any attempt is made to "peel and read" the RAM and its contents. All ~ensitive information (PIN, terminal ID and financial information~ i3 encrypted .'~"' , WO 91/0~370 PCr/US90/071:33 n .~ n ~ -~ .
h.,~ ;3 so that anyone "listening in" would receive in clear form only standard information available to all u.~ers -- with all of the information needed to perform financial transactions (i.e., PIN, terminal ID, amounts, account numbers) being encrypted.
Preferably, limits would be provided with respect to the real-time adjustment provided by clock 142 so that someone trying to "crack" the encryption algorithm could not derive the seed by supplying a series of known real-times. And, of course, someone stealing a terminal 54 is not provided with access to a user's bank account because the thief would also have to know the user's PIN.

Microcontroller 116 scans using input controls 104-114, and executes appropriate program control instructions in response to depression of such . controls. In the embodiment shown in FIGURE 3, the same keypad 114 preferably used to dial the telephone and to provide alpha-numeric inputs to the terminal microcontroller 116. While it is certainly possible to perform the various telephone functions (including DTMF tone generation) with an appropriately proyL- ed microcontroller 116, in the presently preferred exemplary embodiment of the present invention the voice tel~phone functions are performed independently of microcontroller 116 and associated compon~nts -- with the only overlap between the telephone function~ and the terminal functions being that keypad 114 controls both the teLephone and the terminal.

~' ' ~ J~ :
3 PCT/US90/071~3 Thus, in the FIGURE 3 terminal embodiment, DTMF
tone generator 138, telephone module 136, and handset 100 are used solely for telephone functions -- with terminal telephone dialing being performed independently by microcontroller 116 and modem 132.
An inexpensive way to provide a dual function keypad 114 such that the keypad interfaces essentially independently with both terminal 54 and the telephone DTMF tone generator 138 is shown in FIGURES 6A-6C.
FIGURE 6A is a top view in plan of a single key 200 of keypad 114 including dual electrical contact portions 202,204. Preferably, the dual contact portions 202,204 are identical to one another -- with the only difference being that one of the contact portions 202 s connected to telephone DTMF block 138 while the other contact portion 204 is connected to microcontroller 116. FIGURE 6B is a side view and -cross-section of a single key structure 200 of keypad 114 in the preferred embodiment. Key structure 200 includes a dome 206, a conductive rubber pad 208, a :-separator insulator layer 210, and contact portions 202,204 mounted on a common printed circuit board 212. In the preferred em~odiment, the DTMF block 138 is preferably implemented by circuitry provided on an upp~r surface 212a of printed circuit board 212 facing conductive rubber pad 208. As shown in FIGURE
6A, contact portion 202 preferably comprise~ a conventional interdigitated pair of conductors with contact betw~en the interdigitated conductors being established by conductive rubber pad 208 whenever dome 206 is depressed. Similarly, contact between interdigitated conductors of contact portion ~04 is established by conductive rubber pad 208 whenever WV91/0937~ PCT/US~ 71~3 dome 206 is depressed -- but in the preferred embodiment no circuitry associated with contact portion 204 is located on PC board upper surface 212 (and instead, pass through connections 214 are used to connect the contact portion to microcontroller 116). In tlle preferred embodiment, the distinct conductive rubber contact pads 208a,208b provide electrical isolation between the circuitry of terminal 54 and circuitry of DTMF module 138.

In the preferred embodiment, dome 206 is preferably a flat type with a short stroke and tactile feedback. Conductive rubber pads 208a,208b preferably have contact resistance of less than 50 ohms to provide good electrical contact between the interdigitated contact conductors. The switch shown in FIGURES 6A-6C provides a short stroke, limited tactile feedback, relative simple design, that is, contamination proof and long lasting in operation, provides a low profile and is relatively i inexpensive to manufacture, and provides complete electrical isolation between microcomputer 116 and D~ME block 138.

FIGUR$ 7A-7C are flow charts of exemplary program control steps performed by microcontroller 116 in the pre~erred embodiment terminal 54. Upon initially applying powar to terminal 54, microcontroller 116 clears all flags and interrupts, enables all interrupts, initiali2es a buffer pointer, turns off LEDs 102a,102b,102c and 102d enables a keyboard interrupt, initializes display 102 -- all in a conventional manner (block 250). Microcontroller ~ ~ r~
'~09l/09370 PCrt~S~0/07l53 116 then waits for a key 104-114 to be depressed (deci~ion block 252). FIGURE 7B is a flow chart of a ~eyboard interrupt routine performed by microcontroller 116 to detect when a key 104-114 has been depres~ed (and which key has been depressed).
Whenever a key is depressed, microcontroller 116 sets a keyboard flag (block 254) and then reenables keyboard interrupts (block 256) before turning to the FIGURE 7A routine.

Upon detection by FIGURE 7A decision block 252 that the FIGURE 7B keyboard interrupt routine has detected depression of a key, microcontroller 116 pauses a short time period (to provide for debounce of the key; block 258) and then waits for the key to be released (decision block 260). When the key has been released, all flags are cleared (block 262) and the microprocessor 116 decodes the scanned-in information to determine which key was depressed (block 264). Terminal 54 then transmits the key identity via modem 132 over the telephone line to the FIGURE 1 central computer 52 (block 266) and waits for transmit to be completed (decision block 268).
Once transmission is complete, control returns to decision block 252 to await depression of the next key.

At any time during the FIGURE 7A routine, it is po~sible for terminal 54 to receive data from central computer 52. FIGURE 7C is a flow chart of an exemplary program control step~ per~ormed by microcontroller 116 when modem 132 receives a charact~r from central computer 52. In the preferred WO')I/09370 ~Cr/~S90/07l;3 embodiment, the character input interrupt routine shown in FIGURE 7C simply sets a character input flag (block 270) and then calls an incoming character process routine tblock 272), a detailed flow chart of exemplary program control steps of which is shawn in FIGURES 8A and ~B. In the preferred embodiment, terminal 54 may operate in either the command mode or display mode. In the command mode, characters received by modem 132 are used to initiate various actions by the components of terminal 54. In the display mode, the received characters are simply displayed (i.e., communicated to the display controller for display 102). The terminal ~4 in the preferred embodiment toggles between the command mode and the data mode in response to control signals embedded in the data stream it receives. Thus, for example, all ASCII characters may be displayed on display 102, but terminal 54 may interpret all characters preceded by "escape" characters as command characters and interpret such command characters rather than displaying them. I

Deci ion block 274 tests whether the incoming character is a command or a character to be displayed (preferably based upon a bit or combination of bits preceding or otherwi~e contained within the incoming character, a~ mentioned above). The incoming character is merely to be displayed ("no" exit of decision blocX 274), microcontroller 116 outputs the character to display 102 (block 276), enables the serial port interrupts to permit receipt of the next character (block 280) and returns to the calling program (block 2~2~ (the position at which character~

,.. ., ~, ~,~ ,J 3 ''I/v 91/1)9370 PCr/U~g0/07153 are displayed in determined in the preferred embod.iment based on the position of the last character to be displayed, with an entire replacement screen display being sent to the terminal 54 from the central computer 52 each time any data is transmitted to the terminal). If, on the other hand, the incoming character is a command, microcontroller 116 decodes the command and effects an appropriate respon~e. For example, if the incoming command is to activate LED 102a (decision block 284), microcontroller 116 asserts the appropriate data on the address/databus to latch an appropriate control signal and to latch 130 so that LED 102 is illuminated (block 286). Similarly, if the incoming command indicates that LED 102a is to be turned off (decision block 300), microcontroller 116 causes latch 130 to latch appropriate data such that LED 102a is dark (block 302). LED 102b-102d are controlled independently in a similar manner by blocks 288-298 and blocks 304-314.

If the incoming cs. ~n~ received by modem 132 indicates that di~play 102 is to be turned on (decision block 316), microcontroller 116 generates an appropriate CG- ~n~ signal to activate the display (block 318). Similarly, central computer 52 can command the terminal 54 to turn off display 102 (blocks 320,322~ or to clear the display (blocks 324.326). In the preferred embodiment, a ~tring of characters to be displayed by block 276 i9 followed by an end of line command character and upon receipt of such end of line character (tested for by decision block 328), any characters in excess of the line ,~.i;,~J~
WO91~0~7fl PCr/US90/071~3 length, 24, are ignored (block 330). If the received control character is a carriage return on the other hand (block 332), microcontroller 116 moves the di~play character to the beginning of the next line (block 334) so that the next character output for display by block 276 is displayed at the beginning of the following line of display 102.

EXEMPLARY PROGRAM STEPS PERFORMED BY
CENTRA1 CC~L~ 52 First provided will be a brief overall description of an exemplary remote terminal 54 user session accessing the financial service functions performed by central computer 52. Subsequent to that discussion will be provided a detailed description of exemplary program control steps performed by central computer 52 under control of the steps shown in flowchart form in FIGURE 9 et ~

Briefly, the terminal is powered-up by activating an ON switch preferably on the side of the terminal. The onboard processor initializes the terminal program which resides in an EPROM, clears the display, clears the ~ransmit buffer, co~m~nds the modem section to send a call block code and autodials the central proce~sor's gateway numbar (via the PDN).

Coding in the termin~l's EPROM contains SIGNON
coding and me ~age~. If a link is not e tabli~hed, the microprocessor displays a message questioning whether the redial number should be local or long access di~tance number. If the user responds VO~1/09370 ' ~ 'f' PCr/US~0/07t~3 indicating the number is local, the terminal modem redials th~ local access gateway number; otherwise it dials a long distance access number. Provision may alqo be made for manual dialup.

After an asynchronous communications link is established, a unique EPROM based identification number is transmitted to the central proce~sor, encrypted, indicating the terminal's unique security identification number. The central processor terminal handler searches an authorization file stored on database 84 for the terminal security identification number to determine access conditions, institutional associations, names of authorized users, etc.

After the terminal is identified and authorized, the central processor asks which user (in a particular household) is using the terminal. If only one user is ~uthorized to use the terminal, the central processor defaults to the next menu. The central processor then requests the user to indicate which transaction bank account (i.e., checking, NOW
or other debit account) he wishes to use. If the user has only one transaction account the central proce~sor defaults to the next menu.

After the terminal user and the transaction account ~re identified, the user i 5 reque~ted to enter his ATM PIN (per~onal identifi~ation number).
The PIN is transmitted (encrypted) to the central processor. The PIN i~ then combined with the user's ATM card offset and account number, which is kept on . ~ - . . .

~ - .

WO91/0~370 PCr/US90/071~3 ., 7 6 file in the central processor. This information is combined and reformatted (using the interface module) to conform with ATM interchange formats. The PIN
(and other user identification data) is then transmitted through the ATM interchange to the terminal user that his terminal fully secured.
Provisions can also be made to pass along the PIN
"untouched" by the central processor.

If the bank does not authorize access to the account, indicating incorrect PIN, a message is passed to the terminal user through the terminal display indicating access has been denied. The user is then permitted several additional attempts to enter the correct PIN. With the correct PIN, access will be permitted and the customer will receive a greeting message from his ~ank and his available balance.

The system thereby has two levels of security -- the unigue signature of the terminal and the unigue PIN; each linked to an authorized user.

A timed adver~isement or message is then typically transmitted to the terminal user. This me~sage may be directed to the user based on an analysis of the user's spendin~ patterns (this information is extracted ~rom user bill payments made through the terminal).

After receiving the advertisement, the user is presented (based on an analysis of his transactions hi~tory) w1th the opportunity to request further , S3 r. ~., ,_ ,~, ", ,, VO~1/0~3~ Jij ~J' ' ~ ~3.3 P~T/~IS9O/07l;3 information on the advertisement. If he responds positively, that response indicating customer interest is communicated from th& central processor to the advertiser (either online or in batch mode if preferred). The advertiser can then immediately direct a sales response at the interested customer.

The preferred embodiment, computer system 52 may thus target third party advertisements to users without disclosing user confidential informatian to the advertisers. An advertiser may, for example, pay to have an advertisement directed to all users having an average bank account balance in excess of a certain amount or who make average monthly credit card payments in excess of a certain amount. Central computer 52 may accumulate a long history of user's bill payments and bank account balances and use this accumulated information (in conjunction with preferred information provided by the user when he registers for the home billpaying service) to provide extremely sophisticated useful and valuable demographics analysis possibly never before available due to the lack of such detailed accumulated user information.

Needless to say, the results of such demographic3 analysis are extremely valuable to advertisers but are also extremely confidential;
users would seriously object if any such information wa~ ever related to third parties without their express permission. However, central computer 52 can (in accordance with an important feature of the present invention) target specific ads to users based ' , WO9l/0~371) ~ PCr/US90/07153 7~

on such detailed demographics analysis without ever disclosing any confidential user information to the advertiser. If the user requests further information in response to such received targeted ads, central computer 52 may then provide limited user information (e.g., name and telephone number) to the advertiser based upon the user's positive request for ad~ertisers contact. An especially advantageous way to provide such limited user information is to pass it to the advertiser's telemarketing department immediately in real-time (while the user is still "on-line") since the user is then near his telephone and is recepti~e to the advertiser contact. The advertiser may then call the user as soon as the user disconnects his terminal to free up the telephone line.

The main menu of services is then presented on the terminal display, the user selects one of four major choices (bill paying, account transfer, account information or other services).

When bill pa~ment is selected from the main menu of services the user's account balances is presented, his terminal 54 displays a unique list of payees (preferably specified beforehand by the user in response to a questionaire or the like). After selecting one payee, the amount of payment is entered on khe keypad 114 and the figures appear on di~play 102 (but are not transmitted until a buffer is ready for transmission). The amount (preferably encrypted) is transmitted to the central processor 52. The transmission is logged in on a log file, the , ~ ~ ! '. ' ', . .. ..
'~O~ItO937() " ~~ ;''3j PCT/~S90/071~3 transaction is entered in transaction files by the bill payer module, and account information is obtained from the appropriate payee (payee number, payment instructions/remittance method, payee address and deposit institution) and user account files (the user's name, address, user account number at payee, payment application) stored on mass storage device 84. A confirmation message is displayed to the terminal user indicating that his request for bill payment has been received and logged by the central processor.

If a bill is to be paid today (and sufficient available fund~ are in the user's account), the payee identification number, customer account number and PIN (unless operating in PINless mode of operation using authorization numbers returned by the customers bank at balance request), the amount and date, identification information account, destination bank descriptor information and transaction codes are obtained from database 84 files and reformatted by the interchange module for transmission to the customers bank through the ATM interchange preferably in the form of a POS debit message. At the bank, the customer's account identification information and PIN
(or authorization number) permit access to his account for the purpose of debiting the amount of the bill to be paid. The u~er's bank account is debited, and the payee identification is passed to the bank for li~ting on the user'~ monthly bank ~tatement (paper ~tatements or pa~ment verification are not sent to terminal users directly, but are combined with the terminal user's monthly ban~ checking WO 91/0937~ r/US90/071;3 ~0 account statement in the preferred embodiment). A
message is then sent back through the interchange and ATM network 66 confirming the transaction (at this time using preferred POS debiting the bank and the network assume liability, i.e., guarantee the transaction, and the bank typically debits user account immediately and clears the funds to the source provider's account after close of ~usiness).

After payment authorization is received from the bank (through the ATM interchangej, the bill payment enters the central processor 52 from the terminal, and a series of log and transaction files are updated by the POS and bill payer modules. The payee/véndor information file is accessed to determine his status, electronic or paper payment, the appropriate address is obtained from the address verification file and particular payment information is obtained from the payments descriptor file. If the payment is scheduled for today, it is routed to the appropriats exchange (ACH) or routed to other direct electronic transmitted or remittance tape for delivery to the payee. Pro~isions are also made to aggregate and time payments (from multiple terminal users) to a single payee. If the payment cannot be made by electronic means, a paper check must be cut and mailed. In cases where multiple payments can be made to a single payee, a (single) "check and list" (of payor information) is forwarded. A re~erence number i3 created for each electronic or paper payment (this reference number is used for terminal user and payee servicing).

~ .J3 W091/~370 PCTtUSI)0/071;3 I f the payment is to be paid other than today (a "future payment"), a similar logging procedure is followed, except that the payment (along with certain secured PIN information) is routed to a payment transaction pending file instead of being processed for immediate payment. On the appropriate day of payment, the transaction pending file is accessed and the information necessary to affect an account debit of a user's bank account is retrieved and a corresponding POS debit message is generated and sent over the ATM network at that time.

Information on the amount, payee, banking institution, user account and authorization number are transmitted through the interchange to user's bank. Once the debit has been completed, an acceptance of the account debit transmitted by the bank back to the central processor through the ATM
interchange.

- After a payment has been made, a con~irmation is received for electronic payments, a confirmation entry is placed on the customers file and the transactions ~ile. Similarly, another confirmation is entered upon sending paper payments. When the user views his statement of transactions ~his online statement), the data and amount of payment is available for his information.

Pre-authorized recurring payments are proce3~ed in much the same manner as future payment~. On the appropriate day, the user's payment information is transmitted through the ATM interchange to his bank .

.

wosl/n93~n ~ . Pc~r/~s~o/o7ls3 ~2 ~here his account is debited and a confirmation returned that is posted on the user's online statement.

When payments that have been scheduled are not processed due to insufficient funds in the userls account, a message is posted to the user's online statement file and a message is presented on his screen for viewing at the beginning of the next session. In addition, the terminal user is notified by mail.

The central processor system keeps logs of all session payments scheduled currently or for future dates. This permits a terminal user to review and correct the amount, date or payee for the current session or for future dated transactions.

The transfer o~ funds function permits the transfer of funds within a single bank or between cooperating banks. When the transfer funds function is initiated, a menu of accounts is presented, the user selects the account from which the funds are to be transferred and the amount of the transfer ~the user may also be asked to enter a new PIN if his current PIN is not tied to the applicable account).
The account number and PIN are transmitted through the ATM interchange 66 by the central processor 52 to the customer's bank where a balance is obtained. A
menu is then presented of the user's other accounts and he selects the account to which he wants funds transferred ~again, if necessary, he is asked the PIN
of the account if not tied to his main transaction . :

WO91/0937~ P~T/~S90/~7153 ~3 account). A transfer confirmation message is displayed on the terminal screen after entry of the necessary information indicating that the transfer has been accepted by the central processor. The central processor system keeps logs of all session transfers scheduled currently or for a future date.
This permits a terminal user to review and correct the amount, date or amount of transfer for the current session or for future dates. The central processor then transmits through the intercnange a debit to the source account and than transmits a credit to the receiving account.

If the transfer attempt should fail because of PIN acceptance, inadequate funds or communications problems, the terminal user is notified while online. In the case where the transfer has been scheduled for the future or periodically, the PINs, amounts and dates must be held in a pending transaction file. Should the transfers not take place when scheduled, ja me~sage is posted to the use's online statement file and a message is mailed to the user and a message is presented on his screen next time he turns on his terminal. At the completion of the transfer debit and credits, confirmation messages are transmitted by the bank to the central processor through the ATM interchange.

Thé "account balance" menu selection provides information on account balances for the u~er's indicated transaction account and for other user bank accounts. In addition, there i5 a ~tatement of onlina activity which summarizes the transactions , W~ /0SJ37U ~ P(;-r/us(,~o/07ls3 that were entered during a desired historical period (e.g., the last 45 days including the current session), an opening balance (using the oldest balance stored in the central processor for over the post 45 days) and the ending balance (current balance adjusted for any tr~nsactions processed during a terminal session).

In addition, information on other bank services is also available such as, CD rates, mortgage and loan rates, special promotions, lists of services, etc. A terminal user may then request further information. In certain cases, the user may also request a service (e.g., apply for loans, order new checks, and potentially perform certain non-banking functions). Any service request is passed to the bank directly for service attention similar to the way the central processor treats a user response to directed advertising at SIGNON. The central processor only accesses the interchange when seeking to obtain an account balance, perform a debit or credit, submit adjustments stop payments and rever~als; otherwise, transaction activity is limited to the central processor and its databases.

The final selection permits the user to SIGNOFF
the te~ ; n~l, or move to another account at the same bank or a different bank. If the terminal session i~
end~d, a 3e~sion number and meqsage is transmitted to the terminal (the ~ession number is stored by the central processor and is used for customer servicing ~nd reference). Actual bank debit and credit proce sing that was not initiated during the session - '' . ' ' :.

i/J ~; J~ j J
WO91/09370 PC-r/US90/071~3 is completed after the terminal session ends. The terminal detects an end of session code and the modem is commanded to break the communications. If the terminal session ends abnormally due to a failure in the communications link, those transactions that were not entered up to the point of confirmation are not executed by the central processor. The terminal user, once receiving indications that the communications link is down, must push the ON key to reestablish a communications link and continue with his remaining transactions. He can review his online statement of transactions to conform what transactions have been accepted b~ the central processor:

If the user wishes to sign onto other accounts at his current bank or his accounts in other banks, he signs on the new account (using a new PIN) and conducts business in his new account or new bank.

FIGURE 9 is a flow chart of exemplary program control steps of a main routine performed by central computer 52 to distribute financial services to remote terminal 54 and to communicate with such remote terminals. Preferably, central computer 52 provided a multitasking environment and a version of the main routine show~ in FIGURE 9 executes for each o~ a plurality of remote terminals 54 in communication with central computer 52.

Calling the FIGURE 9 main routine of block 350 starts all procesqes. Upon beginning execution, the main routine first gets the system ~ate at block WO91/09371) PCr/US9V/07l;3 ~ 86 352. The main routine then configures an I/0 port assigned to it (preferably, central computer 52 includes a plurality of I/o ports for communication with a correspondlng plurality of remote terminals 54) and initializes this port (block 354). The main routine then initializes data arrays and other associated data structures stored in the memory of CPU 80, clears a "present payment" temporary storage data structure, and stores past payment information in the database(s) maintained on mass storage device 84 ~block 356~. The main routine then waits for a remote terminal 54 to contact central computer 52 --and upon such contact, performs the start routine which establishes a communication interchange with the calling remote terminal, solicits the user's personal identification encrypted and encryption initialization message, and controls the calling remote terminal to display an advertisement (block 358). A flow chart of exemplary control steps performed by start routine 358 is shown in FIGURE lO.
i Referring now more particularly to FIGURE lO, start routine 358 receives initial information transmitted by terminal 54 and preferably identifies the terminai as corresponding to a particular user or group of users (block 363~. In the preferred embodiment,- when remote terminal 54 contacts central computer 52, the remote terminal tranYmits an internally stored identification number which identi~ies a particular terminal. Central computer 52 in the preferred embodiment associate~ that unique terminal identification it receives with that particular user (or collection of u~ers), accesses 9370 PCT/US9~/07153 the database stored on mass storage device 84 to determine which bank or other financial institution that user(s) is a customer of, and then transmits a string of characters to the remote terminal 54 which cau~es the terminal to display a "welcome" message in the name of the user's ban~ (block 362). This is an important ~eacure of one aspect of the present invention, since the u~er's remote terminal 54 greets the user with a welcome message appearing to come from the user~s own bank rather than from the service provider operating system 52 -- giving the bank "control" with its user relationship and giving the user the familiarity and confidence in dealing with his bank.

Central computer S2 transmits signals to remote terminal 54 using a routine called "TIOT". Flow chart of exemplary program control steps included in this TIOT routine is shown in FIGURES llA-llD. This TIOT routine is the communications routine in the preferred embodiment that transmits signals to remote terminal 54 and receives siqnals transmitted by the remote terminal. The TIOT routine first determines whether only display is required (as is in the case of block 362 of FIGURE lO~ or whether central computer 52 is to receive numeric inputs from terminal 54 as well as provide a display. In the case of the FIGURE lO block 362 call to the TIOT
routine, only a display is required and accordingly, the TIOT routine callq a further routine called TDISPLAYM to build an output a block of data which when received by terminal 54 will cause the ~erminal to di~play a desired display scre~n (in this ca~e, WC~ 91/U93~0 ') , ,' ' ~j 3 PC'T/I,'S90/07153 ~3~

the display will display the message "Welcome to First National Bank" or the like along with copyright message in the preferred embodiment) (block 402).

FIGURES llE-llF are together a flow chart of an exemplary program steps performed by the TDISPLAYM
routine in the preferred embodiment. This routine, which may be called directly from other portions of the central computer ~oftware (although it is typically called by the TIOT routine shown in FIGURES
llA-llD at, for example, block 402 of FIGURE llA) permits central computer 52 to control exactly what is displayed at any given time by remote terminal display 102. Briefly, central computer 52 fills a display buffer having the exact character length of the 4x24-character display 102 of terminal 54, and then communicates this buffer content through the PDN
network 55 to the remote terminal 54. The contents of this buffer constructed by central computer 52 thus completely describes the status of display 102 (as well ais LED prompt indicators 102a-102d) of remote terminal 54).

The following parameters are provided to the TIOT routine in the preferred embodiment:

~Eloating point/integer/display only;
~State of LED 102a;
oState of LED 102b;
State of LED 102c;
oState of LED 102d;
~Line 1 of text, first line displayed;
~Line 1 of text, successive lines displayed;

' ' .
': ' ' ~91/~937~ ~,J~;"~ 7 ,,~ PC~/~;S~0/~7~3 ~Line 2 of text, first line displayed;
~Line 2 of text, successive lines displayed;
~Line 3 of text, first line displayed ~Line 3 of text, successive lines displayed;
~Line 4 of text, first line displayed;
~Line 4 of text, successive lines displayed ~Inhibit/enable pointer key l;
~Inhibit/enable point key 2;
~Inhibit/enable pointer key 3;
~I~hibit/enable pointer key 4;
~Inhibit/enable CANCEL key;
~Inhibit/enable HELP key;
~Inhibit/enable NEXT key; and ~Inhibit/enable PRIOR key.

To display a new display format on terminal -display 102, central computer 52 first reinitializes formats the output for communication with the terminal 54 via PDN network 56 (block 1100), and then transmits appropriate control signals to remote terminal 54 controlling the remote tjerminal to blank LCD display 102 and to de-illuminate all LEDs 102a-102d (blocks 1102,1104). In the preferred embodiment, central computer 52 transmits two types of characters to remote terminal 54 "characters to be displayed" and "control characters". In the preferred embodiment, the control characters may be preceded by an "e~cape sequence" ~o alert ~erminal 54 that the following character is a control character rather than a display character -- or alternatively, control characters may all have formats different from displayable characters to permit terminal 54 to readily distinguish between the two types of W0~l/09370 ~ PCr/US~0/07l~3 J ~

characters. In the preferred embodiment, whenever remote terminal microcontroller 116 recei~es a control character, it interprets the control character rat~er than sending it to LCD display 102.

Central computer 52 then preferably obtains a template ~or the desired screen format to next be displayed ~the name of this screen format is preferably passed to the display routine as a parameter either directly or indirectly and may be obtained from mass storage device 84) and stores this template contents in a screen display buffer having the exact length required to Lully define all characters on the 4x24-character LCD display 102 of remote terminal 54. Certain templates have variable names embedded within them -- and central computer 5 recognizes these variable names according to type ~floating point or integer) and in response to the presence of these variables determines that the corresponding information must be "filled in" to complete the buffer contents. Preferably, the variable contents are already defined extern~lly from the display routine, although the variable contents may be pa~sed to the display routines in the form of additional parameters. Some exemplary templates are depicted in the APPENDIX, which shows an exemplary "script" of various remote terminal transactions using the remote terminal user interf~ce provided by the system of the presen~ invention.

If an emhedded variable requires a floating point number to be filled in to the diRplay format template ~decision block 1106), central computer 52 ~j .?.'~ ;j ~091~ 370 PCT/~'S90/07153 obtains the appropriate value (depending upon the context in which a display routine was called) and inserts that information into the appropriate positions of the display buffer (block 1108) before transmitting the display buffer. Similarly, if an integer number needs to be filled in (decision block 1110), central computer 52 obtains the,integer value and inserts that into the display buffer (block 1112). If no variables are embedded into the corresponding template, the screen format is termed "display only" format (decision block 1114) and central computer 52 simply builds the display buffer .-without inserting any additional variable information (block 1116).

Central computer 52 then transmits the buffer contents to remote terminal 54 beginning with the first character in the buffer and ending with~the last buffer character in the preferred embodiment.
Referring to FIGURE llF, the buffer is preferably structured as four rows with each row including 24 characters (and thus buffer thus constitutes a memory "image" of whàt is to be displayed on display 102).

Assuming the last row has not yet been transmitted (decision block 1118) and that the last character in the current row has not yet been transmitted (decision block 1120), a charactqr count is incremented (blocX 1122) and the "next" character within the display buffer is transmitted to remote terminal 54 (block 1124). This process continues until the last character in the current row is reached (decision block 1120j, at which time central Wo91/0937~ 3 j PCT/~:~90/071~3 computer 52 inserts a carriage return (block 1126), increments a row counter (block li28) and resets the character counter (block 1130). When the end of the last row has been transmitted (decision block 1118), central computer 52 preferably generates commands for each of the four LEDs 102a-102d and transmits those commands to specify the states (on or off) of these LEDs (blocks 1132-1148). Preferably, such LED state information is stored with each display screen template (and/or may be provided at run time based on the current state of the program) so that the transmitted information fully specifies the states of the L~Ds.

Referring once again to FIGURE llA, once the LCD
display screen block is outputted (block 402), central computer 52 always checks the communications port to determine whether the user has depressed an input key (block 404). If an input key has been depressed, the TIOT routine decodes the data transmitted by remote terminal 54 to central computer 52 to determine which key was depressed (for example, number key depression is tested for by decision blocX
406, depression of selection keys 108 is tested for by decision block 408, depression of the NEXT key 106 is tested for by decision block 412, depression of the PRIOR key is tested for by decision bloc~ 416, depression of the CANCEL key is tested for by decision block 420, and depression of the HELP key 110 i tested for by deci~ion block 424). A
temporary storage location called "code" is set to an appropriate value corresponding to the key depre~ed by block 410, 414, 418, 422, 426 in the preferred / 3 ~ f 3 ; 3~
~09l/0937l) ~Cr/~S90/07l53 embodiment, and the TIOT routine then returns to the calling routine ~FIGURE 10 block 364 in this ca~e).

In the preferred embodiment, the user input decoding is simplified by specifying enabled and inhibited user inputs at the time block 402 causes terminal 54 to build a display (such specifying fllnction may be performed, for example, by passing parameters to the TIOT routine specifying which user input key strokes are to be recognized and which key strokes are to be ignored). For example, certain display formats call upon the user to provide numerical data -- and upon displaying such display formats central computer 52 may enable decoding of number keys by block 406 but disable decoding of all other (or certain other) keys. In the preferred embodiment, user depression of a temporarily disabled input key simply causes block 402 to control the t~rminal 54 to again display the same display format.

Referring once again to FIGURE 10, once central computer 52 controls remote terminaI 54 to display the "welcome" message it causes the terminal to display a further message indicating that the terminal is now secure (block 364~. In the preferred embodiment, DES or RSA encryption techniques (or çomparable) are used ~o secure the communica~ions between remote terminal 54 and central computer 52.
Upon succe~sful securing of the communications stream in this manner, central computer 52 pro~ides an output message to remote terminal 54 controlling the remote terminal display 102 to indicate to the user that the terminal is now secure.

W~9l/09~ PCT/US90/071~3 , Central computer 52 then determines from the terminal identification sent to it by the remote 54 whether the remote location at which the remote terminal is located has more than one user (decision block 366). For exampLe, remote terminal 54 may be located in a household or business location including several individuals each having their own separate bank account. If the database information stored on mass storage device 84 indicates that the remote terminal 54 is assigned to more than one user (as tested for by decision block 366), central computer 52 solicits the identity of the particular user using the remote terminal by, for example, outputting a list of user names and controlling the remote terminal to display that name list on LCD display 102 (preferably also with appropriate control characters to cause the "select one" prompt to be illumlnated on the remote terminal) (block 368). Central computer 52 then waits for the user to select one of the options listed. If the user responds with depression of one of select keys 108, the TIOT roultine 408,410 decodes the depression of these select keys. If the user does not depress one of these select keys 108 within a certain time period (or depresses one of keys 104,106 instead), then central computer 52 concludes that the user does not appear on display 102 and that further user names need to be displayed) ~decision block 370, block 368). The user may depress the NEXT key for display of other names.

On the other hand, if the user selects one of the listed names, central computer 52 determines whether the selected user has more than one bank , , . ~ , 4 ~ . i ~
9l/0~370 PCr/US90/07l53 account (e.g., by accessing the database stored on mass storage device 84) and lf so, controls remote terminal display 102 to display a list of accounts (block 372), Central computer 52 then once again waits for the user to select once of those displayed accounts and/or displays further accounts corresponding to the same user if the user is unable to make a selection (decision block 374,372).

Once central computer 52 has identified a user's bank account, the TIOT routine is called to request the user to enter his or her ATM (PIN) number (and preferably also lights up the "Enter Number" prompt at this time). The TIOT routine then receives the user input from terminal 54. Referring once again to FIGURES llA-llD, if input is to be received (the "No"
branch of decision block 400), central computer 52 determines whether a ~1Oating number input is desired (e.g., dollars and cents such as $301.26) (block 428). Upon this call to the TIOT routine, however, no floating point number input is desired and therefore the routine TDISPL~YM is called to display the PIN number user prompt (block 430). Central computer 52 then waits for user input from re~ote terminal 54 (decision block 432) and decodes the response of user input at decision block ' 432,434,440,g44,448,452,45~. Upon the current call ~ of the TIOT routine, the respective input (and in fact, the only valid input) is depres-~ion of number k0ys of keypad 114 (decision block 452). As the user depr~sses keys to keypad 114 indicating his PIN
number, central computer accumulates the digits and calculates the received number (block 454). A

WO~1/09370 , ~ PC~/~s'~o/~ 3 ~''' 96 validity check is preferably al~o included in block g54 at least in some context ~e.g., to ensure that the desired value is of the proper length). In some situations, a further block 456 may control terminal 54 to display an appropriate positive feedback message acknowledging receipt of the entered number so that the user is satisfied that the number he has keyed in was received by central computer 52.

Referring once again to FIGURE 10, decision block 378 tests whether four PIN digits have been entared and may also performs a validity check to ensure that the 4-digit (or other prearranged number greater or less than four digits) PIN number entered correqponds to the identified account number tblock 378; or alternatively, this validity check may be performed by the bank when an ATM/POS message is sent to the user's bank affec~ing this account). If the inputted PIN number does not correspond, one or more retries may be permitted before central computer 52 disconnects telephone conn~ction with remobe terminal 54.

On the other hand, if the inputted nu~ber is valid, cent al computer 52 transmits advertising or messaging text to remote terminal 54 -- this advertising text preferably being targeted to a specific user or user group (block 380).
Specifically, in the preferred embodiment, the user databa~e stored on mass storage device 84 includes demographic and other information about each user, and central computer 52 may be appropriately programmed to transmit different advertising text to , , ~ ', , '~ , ' ', , ,, ~091/()~370 PCr/US90/07153 different users. Thus, for example, all users having a bank account with a particular bank and who owned homes (detected by mortgaqe payments or a lack of rental payments in the database) may be sent advertising text pertaining to home equity loans, while users renting apartments (detected from the rental payments in the database) may be sent advertising pertaining to personal loans or automobile loans instead. Of course, the content of the advertisiny is arbitrary and might be used to advertise any good or service. Moreover, the advertisement can be communicated and targeted to particular users without release of confidential user in~ormation to the advertiser (until the user authorizes such release as described below).

Central computer 52 then preferably sends an additional display screen to remote terminal 54 asking the user whether he wants additional information (block 382) via an additional call to the TIOT routine. Preferably a 3-second time response is initiated at this point so that if the user does not respond within thrse seconds the central computer goes on and executes return 386 to the FIGURE 9 main routine. If the user responds with ~ "yes" response (i.e., by depressing the appropriate one of select keys 108 "pointing to" a line of information displayed on display 102 indicating "yes" response), central computer 52 stores the user address and other appropriate information into a file which is ~ent (e.g., electronically via a dialup line) to the u~er' 8 bank (or other advertiser) so that the adverti er can directly contact the user by mail, U'091/0937rt ,/~,J '_~ ,' "'~'' ~'' ,';1 '~' PCr/US~30/07 telephone (perhaps using autodial to get immediate acce~s to the user after he terminates his terminal session) or otherwise to provide additional information about the advertised service or merchandise (block 384). On executing return block 386, the main menu routine is called to permit the user to select financial transactions to be performed (see EIGURE 9, block 388). A flow chart of exemplary program control steps included in this main menu routine is shown in FIGURE 12.

Main menu routine 388 causes remote terminal 54 to display a "main menu" (preferably using via a call to the TIOT routine) (block 390, FIGURE 12). This main menu display screen lists four options in the preferred embodiment: pay bills; transfer funds; get account information; and exit account session (see FIGURES 3 and 4, which each depict praferred embodiment terminal displaying the main menu). The main menu provides some options of the type users are used to seeing at ATMs (e.g., transfer funds, get account information) as well as additional options not available on an ATM (e.g., pay bills). The user is then expected to press one of select keys 108 to select one of the four displayed options (the "Select One" prompt is prefera~ly illuminated to prompt the user to depress one of pointer keys 108 pointing to the displayed option he would like to select). User selections are received using the TIOT routine and decoded with main menu routine 388 (decision blocks 391, 393, 395, 397). In the preferred embodiment, the number of main menu options available for user selection is limited to four -- that is, ~y the .

:':

'~91/09370 ~ PCT/U~90tO7153 number of different lines of text that may be ~imultaneously displayed by display 102. Each main menu option then has additional "suboptions" which are displayed sequentially after the user selects the des.ired main menu option (as will be explained shortly).

If the user selects the "pay bill" option (decision block 391), central computer 52 executes the "bill process routine" (block 392), a flow chart of which is shown in ~IGURE 13.

Referring now to FIGURE 13, the "bill process"
routine 392 performs the function of processing, reviewing and correcting billing information -- and also permitting the user to electronically request funds to be debited from his bank account and used to pay bills to particular desired creditors on specified dates. Upon selecting the "pay bill" main menu option, bill process routine 392 may provide account balance information to the user by forming a standard account balance ATM or POS type message (or possibly using a "nulll' POS debit message) containing the user's account number and PIN and transmitting this request over the ATM network to the user's bank;
receiving the user's account balance from the user's bank over the ATM network in the form of a return ATM
message; reformatting this received account balance information; and transmitting the account balance to the remote terminal 54 using the TIOT routine discussed earlier (block 502). Central computer 52 may also temporarily store this account balance in ... . . .
. .

, WO9l/09370 ~ P~T/~S90/~7153 J .J ,~

the preferred embodiment for purposes of keeping a runnin~ total, as will be explained.

In the preferred embodiment, central computer 52 appears on the ATM network as simply another ATM
machine or POS node -- and uses the same standard messaging formats used by ATM machines and POS
terminals to obtain and receive information from the user's bank. Included in the ATM/POS communications format/protocol standard used by the ATM interchange network described previously is a command format to request account balance information. Central computer 52 generates such an account balance request using the account number (and preferably also the user PIN number) provided by the user earlier, then receives from the ATM network a response containing the account balance pertaining to the user's bank account. Since this account inquiry request .
generated by central computer 52 "looks like" a request yenerated by any ordinary ATM or POS device, the user's bank's data processing system and the ATM
network are capable of handling this request in a routine, ordinary way (and no software changes at the bank's end are required to respond to such messages).

In the preferred embodiment, the account balance information obtained from the ATM network i5 proYided to the user in the form of a display on remot~
terminal display 102 and is al~o stored in the memory of central computer 52 to enable the central computer to automatically inhibit the user from attempting to disburse more funds than he has available. Tha bill process routine 392 then controls remote terminal 54 ., , . ., . ~ .
-: ' .
- : ~
.
, ~091~937() PcT/~s~o/o7l;3 to display a "submenu" providing the user with three options: pay ~ew bill; review and correct payments;
and exit bill paying. Bill process routine 392 then waits for the user to select one of the three options by depressing one of terminal select keys 108.

The user selections are decoded by decision blocks 504,508,512 and corresponding routines 506,510,514 are called in response. For example, if the user depresses the upper selection key 108 in the preferred embodiment (pointing to the option "pay new bill" or "pay another bill"), bill process routine 392 calls a further routine 506 called "bill pay" a detailed flow chart of exemplary program steps of which is set forth in FIGURES 14A-14C.

Referring now more particularly to FIGURES
14A-14C, the "bill pay" routine 506 processes bill payments by controlling remote terminal 54 to display a list of payees and also controlling the remote terminal to light up the prompts, the "Select One"
prompt "Or" prompt, and the "Cha~ge Screen" (i.e., by sending appropriate control characters to remote terminal 54 to cause those various prompts to become illuminated simultaneously). In the preferrad embodiment, the user is asked thrcugh direct mailings (or in certain cases by telephone~ to provid~, ahead of time, the names, addresses, account numbers, and other in~ormation specifying payees he wishes to pay bill~ to electronically ~the user is also asked for other relevant account information for other services ~uch as funds transfers). Generally, mo-~t paople pay a vast majority of ~heir monthly bills to the same .

W09l/0~370 ~ PCr/US90/07153 ,JiJj~ 3 ~ 102 payee~ every month. For example, recurring monthly bills are typically received from utility companies (gas, telephone, electric), the mortyage company or landlord, lenders, credit card companies (~MEX, Mastercard, Visa), department stores, state and local government authorities (e.g., city or county taxing authorities), etc. Therefore, the user is typically able to define beforehand the dozen or two dozen payees to which he sends recurring payments on a monthly or other periodic basis. Such user-specific payee information is stored by central computer 52 on mass storage device 84 and is accessed by FIGURE l~A
block 516 to display a list of payees. If desired, the initial listing displayed by block 516 may constitute a listing of categories of payees rather than individual payees (although in the preferred embodiment an actual listing of payees is displayed initially).

As mentioned previously, the preferred embodiment remote terminal display 102 is only cap~ble of displaying a limited number of lines of text simultaneously (e.g., four). In the preferred embodimen~, a different payee is displayed on each of these lines to permit the user to select a desired payee by depressing one of select keys 108 pointing to the displayed payee name. Generally, then, a particular user will have a longer list of payees than may be displayed on display 102 simultaneously.
If the user doe3 not select one of the displayed payees (e.y., by either not depressing one of select keys 108 or by pressing the PRIOR or NEXT key 10~,1063 (as tested for by decision block 518), WO~l~093~0 ~ 3 PCr/US90/07l;3 central computer 52 attempts to display the "next" cr "previous" 4-payee sublist of the user's payee list (decision block 520,522,516). Thus, blocks 516-522 may be visualized as defining a 4-line long "window"
scrolling up and down through a user payee list that may be of any desired length. If the user reaches the end of his payee list without making a payee selection, block 524 is programmed to return to the beginning of the bill process routine 392 shown in FIGURE 13.

When decision block 518 determines that the user has selected one of the displayed payees, central ~ computer 52 determines whether the user has already paid a bill to this same payee in the current remote terminal session (block 526). In the preferred embodiment, the result of a given remote terminal bill paying session is an output file containing all of the requested finan~ial and other transactions generated during the terminal session. Only after the session is complete in the preferred embodiment is the output file processed by central computer 52 to effect the various user re~uests. In the preferred embodiment, decision block 526 scans throu~h the output file to determine whether the user has already requested a transaction with respect to the currently selected payee, and if so, controls remote terminal 54 to display a prompt asking the user whether he wishes to make another payment to the ~ame payee (block 528). In this way, the user mujt consciously decide to make multiple payments to the same payee and central computer 52 thu~ prevents the W09]/09370 ;,~ PCT/~IS90/n7l53 10t~

user from inadvertently making a double payment he did not wish to make The "bill pay routine 506" then requests further information from the user regarding the amount to be paid to the selected payee by calling the TIOT
routine (block 530) Referring now once again to FIGURE llB, central computer 52 may control display terminal 54 to display a prompt or other information (e.g., a prescheduled amount or information regarding the last payment made to this par~icular payee), and then awaits user input (blocks 464,466) The user is permitted to enter the amount to be paid (the user inputs this value without the decimal point ~y striking keys or keypad 114 in the style of ATM data e~try). When the user has entered an amount he depresses selection key number 4 (block 472) and the number is compared to a maximum permissible limit (block 474). If the amount entered is within limits (central computer 52 expects a floating point value, generally at least three numerical digits) the routine returns; , otherwise, the display is output (block 476) with a blank line and an error code is set (block 478) and then the routine returns. During number entry, the user may depress the CANCEL key at any time to "delete" or "undo" the last number keyed in, and central computer 52 will in response send a new ~creen ~howing the numerical value the user has keyed in minus the deleted digit.

Referring once again to FIGURE 14A, the cantral computer 52 then cau~e remote terminal 54 to display to the u~er a prompt asking whether the user wishes ~091~0937~) P~T/~59U/07153 the bill to be paid today or in the future (decision block 532). If the user responds affirmatively (e.g., by depressing an ap~ropriate one of select keys 108 pointing to a "Today" dataline displayed on display 102), this information along with the amount of information re~lired by block 530 is logged to the temporary output file and a confirmation message is sent for display by terminal display 102 (preferably indicating the date, the payee and the amount along with the message "confirmed for today") (block 534).
If, on the o-ther hand, the user responds "Future" to the question, central computer 52 asks the user whether the bill is to be paid in the future (decision block 536). Through successive such user prompts (some prompts possi~Ly providing multiple options to redl~ce the total number of prompts that must be displayed by terminal display 102), decision blocks 538, 542,548 determine the time period the user wishes the bill to be paid. For example, in the preferred embodiment, if the user wants the bill to ! be paid in the future, central computer 52 may cause remote te~minal S4 to display a listing of the succeeding two months (e.g., if the current month is September, terminal display 102 may display the month of October and November along with additional options such as "other months" and "periodically"). The user may select one of the displayed options by depressing t~e appropriate one of select keys 108 "pointing to"
the di~played option he desires.

If the user selects one of the displayed months, central computer 52 logs the payment in its output file which it will eventually add to a scheduled WO~ 9370 PCr/~S90/07~53 ~ ~/ sj IJ ~; 'J 3 106 transaction log so that the payment will automatically be processed on the appropriate day (blocks 538-546). If the user wants to schedule bill payment for some other month, on the other hand, (decision block 548), central computer 52 may prompt the user by displaying month names three at a time until the user selects one of the displayed months (blocks 550-552). If the user selects a month that is more than a year away, the instruction is ignored and terminal display iO2 displays a message that system 50 can only schedule initial payments within the current year (decision block 554,556). The preferred embodiment does, however, permit users to schedule non-initial (i.e., pPriodic) payments beyond one year into the future. Otherwise, central computer 52 causes terminal display 102 to display a confirmation message indicating ~he amount, payee and month, and then obtains the day of the month from the user at block 560. Control then returns to bill process routine 392 so the user may either pay another bill, review existing bills constructed to be paid, or exit the bill paying function (block 56~).

Referring now to FIGURE 14C, if the user wants the bill to be paid but does not want the bill to be paid today or at a date in the future, then central computer 52 permits the user to schedule periodic :-bill pa~ment (decision block 564). To schedule periodic bill payment, central computer 52 controls terminal display 102 to display a prompt "start paying bill on" and then expects the user to fill in the month day and year that periodic bill paying is to begin (block 566).

~ ,J ~
WO~1/0~37~ PCT/~S90/07153 ~ routine called CHKDATE is then called at blocX
568 to check for a valid user inputted date (e.g., a date that is equ~l to or later than today). FIGURE
15 is a flow chart of exemplary program control steps included within the CHKDATE routine 568.

Referring now more particularly to FIGURE lS, central computer 52 determines whether the inputted year is later than the current year and also checXs whether the inputted month is later than the current month if the year is the current year (decision blocks 570,572). In the preferred embodiment, scheduled bill payments can begin in any month of any year but cannot begin in the past. If the user requests an invalid data to begin periodic payments, central computer 52 controls terminal display 102 to display an error message (block 574) and sets an ; error flag (block 576). Similarly, block 574 displays an error message if a subsequent validity check on the year and month inputted indicates that the year and mont~ are not "leyal" (as tested for by deci~ion block 578). A flag i5 set upon entry of such an "illegal" date (i.e., a date in the past) and the user is given the opportunity to enter a correct date upon return to calling routine.

Thus, the results returned by the CHXDATE is a date flag (which indicates whether or not a valid date was inputted or not) and a date to be~in periodic payments.
Once a valid ~tart date for scheduling periodic payments has been received by central computer 52 (decision block 579 of FIGURE 14C checks the flag WO9l/09370 S~ . , PCT/~59~f/07153 J ~,' ~i ,,, ,,~ 3 returned by the CH,.CDATE routin~ to ensure the date is legal), the central computer controls terminal 54 to provide a prompt indicating an ending date in terms of day and year (block 500,502). In addition, central computer 52 requests the user for additional information regarding the recurrence of the scheduled payments (e.g., weekly, semi-monthly, monthly or other; block 584). Once the required information has been obtained by central computer 52, the central computer calculates each date on which a seheduled payment is to be made (block 584) calling the DATES
routine a detailed flow chart of which is shown in FIGURES 16A-16B.

Referring now more particularly to FIGURE 16A
and 16B, dates routine 574 calc~lates periodic dates based upon user-inputted data -- and thus allows the user to schedule recurring payments (e.g., loan or mortgage payments, installment payments, etc.).

As mentioned previously, EIGURE 14C blocks 556,580 and 582 obtain from the user the beginning to start the periodic payments and the ending date for ending paymants. Routine 584 shown in FIGURE 16A-16B ~ -calculates each of the scheduled periodic payment~
from this inputted information along with a further input solicited from the user specifying the frequency of the periodic payment ( e . g., monthly, weekly, semi-monthly or other periodicity). Decision 586 fir3t confirms that the end date i5 later then the beginning date (decision block 586~. If this validity check fails, an error message is displayed on terminal display 102 (block 5~8), an error flag is ' ' :. , W(~91~93711 ~ J~ PCT/~S')0/07153 set (590) and a return to the calling program is performed (block 592). Assuming the end date is valid, then routine 584 determines whether the beginning year and the ending year are equal to one another (decision block 594) and if so, whether the beginning month is before the ending month (decision block 596). If the beginning and ending year are equal and the beginning month is not prior to the ending month, then the user has attempted to schedule payments beginning later than they end and an error message is output and an error flag set (block 598,600). Assuming the beginning day-month-year and the ending day-month~year dates are correct, routine 584 then calculates each payment date within that time span based on whether the payments are scheduled weekly, se~i-monthly, quarterly, semi-annually or annually (blocks 602 and on).

The manner in which the schedule of payments is calculated is similar regardless of the frequency of occurrence of the payments. For example, if the period is weekly (as tested for by decision block 602~, a flag is set t~ indicate the periodicity (block 604~ and then each of the individual payments are calculated (blocks 606-610). Routine 504 determines whether the current month/week is the last month/week scheduled for payment (decision block 606), and if not it calculates the next payment date by incrementing a date based on the beginning payment date by the number of days specified in the period (block 608). Blocks 606, 608 are performed repetitively until the end date is approached, at which point the last payment date is calculated ,~

W091/0937() ~ '!'j j Pcr/(~S9()/1)7153 (blocks 610). The counting is performed using calendar information stored on mass storage device 84 ~o that payments are not scheduled on invalid days (e.g., the 31st of February or on bank holidays).
Blocks 612-614, 606-610 similarly calculate biweekly payments; blocks 616-624 calculate monthly payments;
and blocks 626-642 calculate ~uarterly, semiannual and annual payments as will be understood.

Referring once again to FIGURE 14C, after the dates have been calculated a confirmation message is generated confirming the payee begin and end dates that have been encrypted (block 644) and the bill process routine shown FIGURE 13 is called (block 646) to provide the user with the option of paying an additional bill, reviewing the existing bills, or exit the bill paying function.
.
Re~erring once again to FIGURE 13, the user may select to review and correct bills by selecting an option from the "bil~ process" menu described earlier. This user selection (tested for by decision block 508) causes central computer 52 to call the REVCOR routine 510 a flow chart of which is shown in FIGURES 17A-17C.

; Referriny now to FIGURES 17A-17C, the REVCOR
routine allows the user to review and correct bill paying instructions inputted via the "billpaying"
routine 506 de~cribed above. Upon selecting this review and correct option, central computer 52 sends a display to remote terminal 54 providing the u~er with options to select between (a) reviewing or , ~

~J'.,, .f ,f J3'J
~V~91/~937~ PCT/~S90/07153 correcting payment schedules in the current terminal session, and (b) reviewing or correcting payments scheduled in a previous terminal session. As discussed above, payments scheduled in a current terminal session are stored in an output file that is not acted upon by central computer 52 until after the current terminal billpaying session has terminated.
Once the current terminal session has terminated, all requested payments are processed -- and payments requested to occur are immediately acted upon. Thus, the user cannot view and correct and correct payments that have already been transacted in response to his previous requests. However, the user is able to review and/or correct payments he has scheduled in the current session, and may also review and/or correct payments he scheduled during a previous terminal session to occur after the date of the current terminal session.

If the user responds that he wishes to review payments scheduled during the current session (as tested for by decision block 670), central computer 52 first determines whether the user has in fact scheduled any payments during the current session (decision block 672). If no payments have been scheduled for the current session, a message to that effect is sent to remote terminal 54 (block 674) and returned to the bill process routine 3g2 as performed (block 676). If bills have been paid during the current session, on the other hand, a "this ~e~6ion"
flag is set ~block 678). On the other hand, if the user requests review of payments scheduled during a previous session (as tested for by decision block . ~ ,.. .

~O91/09370 PCr/~'S~n/07l53 fJ3,~.J.~ j 112 680), then a "previous session" flag is set and is otherwise not set (blocks 680, 682).

Central computer 52 then accesses appropriate data (depending upon whether previous session or current qession flags are set by block 682,678, respectively) sorts the scheduled payments by date, and displays a list of scheduled payments ~in the preferred embodiment this list specifies month and day, abbreviated payee name, and payment amount) (block 684). Preferably, the first such screen displayed has a header stating "payments this session that you may correct" or "prior scheduled payments that you may correct" on the top two lines of terminal display 102 - but further screens list a different scheduled payment on each line of the display (so that few such payments may be listed on each screen in the preferred embodiment). The user may select any one of the displayed scheduled payments by depressing the corresponding selection key 108 ~tested for by decision block 686). If the end of the list OI scheduled payments has been reached and no selections remain (tested for by decision block 688), program ~ontrol returns to the bill process routine 392 shown in FIGURE 13 (block 590). Otherwise, if no selections have been made but the end of the payment list has not yet been reached (the "no" exit of decision block 688), a list counter is incremented to display the next few entries in the li~t (block 692), and those entries are then displayed by block 684 for user selection.

~ ; t WO9l/~937~ PC~/~'S90/0/1~3 Referring now to FIGURE 17B, once the user selects one of the scheduled payments from the displayed list, ce.ntral computer 52 transmits a display screen to the terminal 54 presenting the user with the following options in the preferred embodiment: "correct amount", "correct payment date", "correct both amount and payment date", and "cancel payment". The user may select one of these options by depressing the corresponding one of select keys 108. If the user requests correction of the amount (as tested for by decision block 694), the preferred embodiment central computer 52 transmits a display format for display on terminal display 102 specifying the available funds remaining in the user' 5 bank account (not including the previously scheduled payment amount), the name of the payee, and a user request to enter desired payment amount (block 696). The user then is expected to use keypad key 114 to enter the desired corrected amount of the payment. Once the user has inputted such information, central computer 52 calls a routine called BALCHECK which checks the user's bank account balance before the scheduled payment to ensure that the user does not inadvertently overdraw his account (block 698).
~' Referring to FIGURE 18, a flow chart of exemplary program control steps performed as part of - the B~r~c~cK routine 698, central computer 52 compares the requested payment amount with the balance remaining in the user's bank account assuming all immediately scheduled payments are processed (decision block 700). As described previously, in , .

, ' WO9l/U9370 ~ PCT/US9~/1)71~3 the preferred embodiment central computer 52 obtains the user's current bank account balance via a "account inquiry" reguest transmitted over the ATM
network 66. Central computer 52 progressively debits the amount of this balance as the user schedules payments to be processed immediately -- so that the central computer maintains a running balance of the user's account without yet actually debiting the user's account electronically. If the desired payment exceeds the user's remaining balance, an error flag is set (block 702). Otherwise, an error message will be sent (block 704) and the error flag is set (block 706) before a return to FIGURE 17 block 708 is performed.

Referring once again to FIGURE 17B, decision block 708 ~ests the value of the error flag returned by balance check routine 698. If the user's account will become overdrawn by the current payment, then the user is requested to reenter the amount (~lock 696). Otherwise, the running account balance maintained by central computer 52 is updated and the corrected payment information is placed into the output file (block 710) before a confirmation message is sent to be displayed by terminal 54 (block 712).

If the user selects a change in payment date (as tested for by decision block 714), central computer 52 controls terminal 54 to display the earlier-described screen display ~pecifying when bill ~: payment is to be scheduled and performs steps similar or identical to the steps described in connection with blocks 532-560 of FIGURES 14A-14B. The updated ~O~1/0~37V PCr/~S~0/071~3 scheduled payment date information replaces the earlier schedule payment information stored in the output file and a confirmation message embodying the updated information is displayed on terminal display 102.

If the user wishes to change both the amount and the date (block 716), then the combination of the steps performed in response to positive results of decision blocks 694,714 are performed. If the user wishes to change both amount and date, a flag is set and he is passed back through the block 694 and 714 coding. He then passes through both sets of coding making the appropriate changes.

Referring now to FIGURE 17C, if the user decides to cancel a scheduled payment (tested for by decision block 718), central computer 52 updates the running user account balance it maintains (e.g., by merely adding the payment amount being cancelled to the user balance amount) and also updates the output flle to remove the scheduled payment (block 720). Central computer then controls terminal display 102 to display a confirmed cancellation message (hlock 722) so the user is assured the scheduled payment has been cancelled.

Referring once again to FIGURE 13, if the user selects to exit billpaying (as tested for by decision block 5123, a bill exit routine 514 is performed.
This "bill exit" routine 514 (shown in more detail in FIGURE 19~ is responsible for proce~sing the payment entries in the output file ~cheduled for immediate WV9l/0937(l , ~ ~C~/~5~0/07153 payment. Referring to FIGUR~ 19, such processing involves calculating the total amount represented by the bill9 scheduled for i~nediate payment (block 750) and then providing a display or summary information to the user (blocks 752,754). Assuming the user requests no other services (blocks 756-760), a debit request is generated in raal-time by central computer 52 and transmitted over the ATM network 66. This request may be in the form of a POS debit message specifying the user's PIN and bank account and the amount of the bill to be paid and requests the calculated total amount to be debited from the user's bank account and credited to a holdin~ account maintained by the service provider at the service provider's or the user's bank (perhaps even debiting the funds directly to the ultimate bill payee in an account at the user's bank). Central computer 52 then writes the output file to appropriate databases maintained on mass storage device 84 for payment processing. Thus, in the preferred embodiment, a single real-time user account debit request is generated, and that debit request representing the amount of the immediately scheduled bill payment.
Central computer 52 then activates additional processe3 which make payments in the user-selected amount to the user-sele~ted payees using electronic funds transfers (e.g., ACH), generation of paper checks using check printer a6, and the like as appropriate. The communications link with terminal 54 may be disconnected at this time (block 768), Once the billpaying function has terminated (and if the user requests additional services; block 7563, WO9l/0937~) PCr/~'S90/071~3 control returns to the main menu routine 388 shown in FIGURE 12. ~t thi 5 point, central computer 52 once again transmits the "main menu" display format for display on terminal display 102. On this main menu, the user may decide to pay additional bills, if desired (tested for by decision block 391), or he may decide to take advantage of other services such as transferring funds between accounts or obtaining information about specific accounts. If the user requests ~unds transfer (as tested for by decision block 393), the routine called TRANSFD is called (block 394). A flow chart of this routine 394 is set forth in EIGURES 20A-20D.

Referring now to FIGUR~5 20A-20D, central computer 52 first controls terminal 54 to display a listing of the user's bank accounts (block 800), which the user had previously submitted to the service provider (along with payments information as described above). The user may then select one of the displayed accounts by depressing the corresponding selection keys 108 (as tested for by decision block 802). If the user does not select one of the displayed accounts, central computer 52 increments an account table pointer (block 804) and then tests whether the end of the user's account list has been reached (decision block 806). If the end of the list has been reached, central computer 52 returns to the main menu routine 388 (block 808).

If the user ~elects one of the displayed accounts, central computer 52 controls terminal display 102 to display a screen format identifying W O 91/09370 j~l,"j,~ ; j PC~r1~S90/07153 il8 the account and the account balance (a request over the ATM network 66 to obtain this account balance may be generated at this point if central computer 52 has not already obtained this account balance information previously) and prompting the user to enter the amount to be transferred (block 806). The user is then expected to enter a dollar amount using keypad 114, which central computer 52 receives (block 808) and compares with the account balance (decision block 810). If the transfer amount exceeds the account balance ("yes" exit of decision bLock 810), an error message is generated for display by terminal display 102 (block 812) and blocks 808,810 are performed again. If, on the other hand, the transfer amount is less than the account balance, a list of user accounts (preferably minus the account from which money is to be transferred) is displayed (block 818) and the user selects a further account to which the funds are to be transferred (blocks 816,822) in a similar manner to the first account selection (blocks 802-808) Central computer 52 then controls terminal display 102 to display a confirmation messaga (block 824) specifying the account selected for funds to be transferred into and requesting user confirmation.
If the user fails to confirm this information (the "no" exit of decision block 826), central computer 52 preferably controls terminal 54 to display an error menu presenting the u er with the options "Retry the transfer", "access other services", or "end this session", ~block 828). If the user requeetts a retry (as tested for by decision block 830), a return to :

... . .

, .

~, , ~ ,' . . 1, 1 ~ ' .
W09l/09370 '~ J-~ PCT/US~ 71 the top of the TRANSFD routine 394 is performed. If the user wants to access other services (tested for by decision block 832), a return to the main menu routine 388 shown in FIGURE 12 is performed (block 834). If the user selects the "end session" option (decision block 836), then a routine called "session exit" to be described .in greater detail shortly is performed.

Referring now to FIGURE 20C, if the user confirms the account transfer request ("yes" exit of decision block 826 of FIGURE 20B), central computer 52 prompts the user whether transfer is to be performed immediately and receives the user's response. If the user requests an immediate transfer (the "yes" exit of decision block 824), the confirmation message is transmitted to remote terminal 54 (block 826). The user may be asked to input the PIN of the account to transfer money into at this time. Central computer 52 then generates a pair of messages to be applied to the ATM network 66: a POS debit to the accGunt to transfer money from and POS credit to the account to transfer money into. These two accounts need not be in the same bank, since central computer 52 may reach any bank on the ATM network with the messages. In effect, the raal-time transaction is to: (a) debit tha user's first bank account and credit the ~ervices provider'~
account; and (b~ credit the user's second bank account and debit the service provider's account (the net result being a funds transfer). In the case where this methodology is not appropriate or feaqible, debits are proce~sed as normal ATM/POS

:

~, ,.

-WO 91/1)937~ , ,, . PCr/1,1~9(1/U71~3 ,, ~, ", transactions and credits are made by ACH, magnetictape or other electronic means to the user's bank.

If, on the other hand, the user responds that the fund transfer is not to be performed immediately (the "no" exit of decision block 824), the preferred embodiment central computer 52 transmits a further display to terminal 54 promp~ing the user as to which month the transfer is to be performed. For example, if the current month is November, the preferred embodiment central computer 52 wiIl transmit a screen for display by terminal display 102 specifying November, December, January and (other month) for selection by the user. If the user selects the current month (tested for by decision block 900), a month~date field is set accordingly (block 902).
Similarly, if the user selects another displayed month (tested for by decision block 904), the same ~~ month field is set in accordance with the monih specified by the user (block 906). Either way, central computer ~2 then prompts the user to specify a day (block 908). In response to receipt of such a date, central computer 52 transmits a confirmation message for display by terminal display 102 (block ; 910) and then schedules the transfer to account in ~- the future at the date specified by logging to the ~ output fil~ (and eventually updating the database files stored sn mass storage 84).

If the user wishes the account transfer to occur in some other month (decision bloc~ 912), central computer 52 displays a list of months three-at-a-time (block 914) and permits the user to scroll through :' ' ' ' ,' ~ J', J., ,1 ,;
~~'09l/~9370 pCT/~59~/07153 this list for month selection (blocks 916-920). In the preferred embodiment, central computer 52 does not permit the user to schedule a payment more than one year in advance (decision block 918) (although this may be changed depending upon the application).
Once the user selects a valid month, central computer 52 obtains a desired payment date from the user (block 922) and transmits a corresponding confirmation message (block 924).
.

. Referring now to FIGURE 20D, in the preferred embodiment it is possible to schedule periodic account transfers (this user selection is tested for by decision block 9Z6). As described previously, central computer 52 obtains a beginning valid date (blocks 928-932) and an ending valid date (blocks 934-936), calculates all of the periodic payment dates by calling the DATES routine shown in FIGURES
16A and 16B (block 938), and then transmits a confirmation message (block 940). The resulting calculated transfers are then logged to the output file for processing on the dates specified. This permits users, for example, to time transfers between accounts in order to maximize interest (such as moving funds into a non-interest bearing checking account at the latest yossible date in order to meet ~: a periodic mortgage payment).

Blocks 942-950 permit the user to select different ways to exit the TRANSFD routine 394 (e.g., by starting the routine from the beginning, block 942; by returning to the main menu routine, blocks WO 91/09371~ ? ~ f~ ,, .. PCr/l~S90/071:~3 v ~ 2 2 944,946; and by ending the terminal session, blocks 948-950).

Referring once again to FIGURE 12, another option provlded for user selection by main menu routine 3B8 is the "account information" option, decision block 395). In response to this selection, central computer 52 calls a routine called ACCINF
(block 396). A detailed flow chart of this routine i5 shown in FIGURES 21A-21C.

Referring now more particularly to FIGURE
21A-21C, central computer 52 sends to terminal 54 a display format announcing that "account information : service" is being provided and then pre~ent the user with various options to select ~e.g., "account balance", "statement of activity", and "other bank information"). If the user selects the account balance option (as tested for by decision block 950), the preferred embodiment central computer 52 transmits the balance of the "primary" account (bloc~
952j. This "primary" account designated by the user ~ in advance (i.e., when he first subscribes to the remote ~inancial distribution s~r~ice or when he logs onto his remote terminal at the beginning of the current session) and is probably the account the balance of which the user is interested in.
:~ Following this account balance display, central computer 52 transmits an additional di~play screen to termin~l 54 presenting the user with the following additional options: "balance for other account", "acces~ other service3" and "end this online banking session". If the user then ~elects the "other , ~

.

'0~/0937(~ P~r/~S~/07l~3 account bal~nce" option (tested for by decision block g54), central computer 52 controls terminal display 102 to display a listing of the user's other accounts (blocX ~56) and permits the user to scroll through the list to select another account (blocks 958-962).
If the end of the list is reached (tested for by decision block 962), control is returned to the "account balance" prompt (block 950). If the user selects another account, on the other hand, central computer 52 transmits a designation of this account along with its balance (and, if necessary, generates a request on ATM's network 66 obtaining this account balance) ~block 964). A request for "other services"
in the preferred embodiment is handled by returning the user to the main menu routine 388 (blocks 966-968), while an "end session" reguest is handled by calling the SESSEXIT routine to be discussed shortly (blocks 970,972).

Referring now to FIGUR~ 21B, if the user selects "statement of activities" (decision block 974), then central computer 52 begins controlling terminal 54 in the preferred embodiment to display a list of all payment transactions beginning with the oldest payment within a "30-45 day lookback" from the current date (block 976). The user may scroll through this listing by depressing the PRIOR and NEXT
navigational keys 104 and 106 as previously described. Following the history of payments proc~ssed during the last month (which, incidentally are obtained from the database stored on mass storage device 84), central computer 52 accesses ~he output file and displays a list of the current session WO~ 9370 t~ ',' ' P~J/~S~0/07153 , ~ ,j " ~

activities ~bloc~ 978~ beginning with the first payment. Such l.ist includes the date, the payee and the amount. Finally, central computer 52 calculates a summary including the following information: the closing balance on the date of the oldest payment ~central computer 52 stores the closing balance at the end every session on mass storage device 84 in the preferred embodiment), the total online banking activity, the total representing all other activity, and the current balance after all the transfers and payments requested in the current terminal session have been processed (block 980). The user may then access other activities via the main menu (blocks ~ 982,984) or may end the current terminal session : (blocks 9~6,988).

If the user selects the option for "other bank services" in the preferred embodiment (block 990), central computer 52 controls terminal display 102 to display an additional submenu presenting the user with the options "other promotions", "service information" and "rate offerings" (as will be under6tood, various additional or different services may be presented to the user at this point). In response to l~qer selection of one of these options (decision blocks 992,994,996 decode the user selection), centraL computer 52 obtains the appropriate respon~ive information from mass storage device 84 and controls terminal display 102 to display such information ~block 99a). Similar to earller described advertlsing routine~, the central computer 52 then prompts the u~er whether he wishes to obtain addltional information on the selected /f ~
~)91/09370 YCT/~S~0/~71;3 service (block 1000). If the user responds in the affirmative, central compu~cer 52 controls terminal display 102 to a message that the bank or other appropriate entity contact the user directly (block 1002) and then creates a request on database ~4 for tran~mission of the user's name, address, telephone number and the subject matter the user is interested in for immediate or later transmission to the bank or other appropriate entity via dialup line 70 or interface/multiplexer 82 or the like (block 1004).
The user may then select to return to the main menu (blocks 1006,1008) or may decide to end the current terminal session (blocks 10~0,1012).

One of the "other services" offerings may, for axample, be completing a loan application. Central computer 52 already stores sufficient personal and financial information about the user to complete most of the loan application form automatically and may need to ask the user only a few questions (e.g., loan amount, type of loan, etc.) to complete the application (to which the user may respond with numeric or alphabetical information as appropriate by depressing keys or keypad 108). Such completed loan applications may then be forwarded electronically or in hard copy form to lending institutions for further processing.

Réferring once again to the main menu routine 388 shown in FIGURE 12, the user at any point may decide to terminate the current terminal 3ession (decision block 397). In response to this user selection, central computer 52 execu~es a routine WO91/09370 PCr/-S'Jn/07l~
;J ~i, , ' j . 126 called SESSEXIT (block 398), a detailed flowchart of which is sho~n in FIGURE 22. Referring now to FIGURE
22, central computer 52 preferably first controls terminal display 102 to display a confirmation screen presenting the user with the options to either end this online banking session or to "move to account in another ~ank" (block 1025). If the user decides to end the terminal session, a confirmation screen is transmitted for display (block 1027), the files maintained in mass storage device 84 are updated by the central computer ~2 (block 1029) and the communications link via PDN network 56 and asynchronous communications interface 60 is terminated (block 1031). If, on the other hand, the user decides to move to another account (as tested for by decision block 1033), central computer 52 transmits a listing of other accounts maintained by the user (block 1035) and permits the user to scroll through this listing to select ano~her bank account (blocks 1037,103~,1041). If the user selects an account (tested for by decision ~lock 1037), the steps describe previously in connection with FIGURE 9 blocks 358,388 are performed again (~locks 1043,1045). If, on the other hand, the end of the user account list has been reached, control returns to the main menu routine shown in FIGURE 9 (block 1047).

While the invention has been described~in cc-nection with what is presently considered to be the most practical and preferred embodiment, it is to be understood that the invention is not to be limited to the disclosed embodiment, but on the contrary, is ''~91/0937f) ~ 3 ,J PCI/~S90/07153 intended to cover various modifications ~nd equivalent arrangements included within the spirit and scope of the appended claims.

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Claims (81)

THE EMBODIMENTS OF THE INVENTION IN WHICH AN EXCLUSIVE
PROPERTY OR PRIVILEGE IS CLAIMED ARE DEFINED AS FOLLOWS:

1. A system for conducting financial transactions using a telecommunications system and financial transaction network connected to at least one financial institution, said financial institution maintaining a financial account for a specific user, said system comprising;
at least one data terminal including user input controls, an alpha-numeric display, and a first modem for coupling said data terminal to said telecommunications system, said data terminal, in use, transmitting over the telecommunications system via the modem: (a) first data representing a payee, (b) second data representing an amount, (c) third data representing an financialnetwork compatible personal identifier, and (d) fourth data identifying said financial account;
a remote computer located remotely to the data terminal, said remote computer including a second modem coupled to said telecommunications system, said remote computer receiving said first, second, third and fourth datafrom said data terminal, said remote computer further including a processor thatgenerates a digital financial network compatible debit message responsive to said communicated first, second, third and fourth data and applies said digital financial network compatible debit message including said financial network compatible personal identifier to said financial transaction network so as to debit said financial account.

2. A system as in claim 1 wherein said data terminal includes:
an alpha-numeric display device capable of displaying a maximum of N lines of text, N being an integer; and a plurality N of pointer keys manipulable by the user, each of said N
pointer keys pointing to a different one of said N display lines.

3. A system as in claim 2, wherein:

said telecommunications system includes a packet data network that frames messages in packets of predetermined length; and said remote computer includes means for generating display data specifying the display content of all of said N lines of said display and for inserting all of said display data into a single one of said packets for display by said data terminal.

4. A system as in claim 1 wherein:
said telecommunications system includes a packet data network that frames messages carried thereby into fixed-length packets of a predetermined size; and said remote computer includes means for specifying substantially all of said characters displayed by said terminal display and formats data controlling said terminal display into a single one of said fixed-length packets.

5. A system as in claim 1 wherein said terminal includes an encryptor that encrypts at least said third data.

6. A system as in claim 1 wherein:
said data terminal includes an alpha-numeric panel-type display and a plurality of selectively activatable visual prompts; and said remote computer includes means for controlling, via said telecommunications system, the information displayed on said display and the activation states of said visual prompts.

7. A system as in claim 1 wherein:
said data terminal further includes a help key and a cancel key;
said remote computer includes means for providing context-sensitive help information for display on said data terminal display in response to user depression of said help key; and said remote computer ignores at least the last keystroke provided by said user in response to depression of said cancel key.

8. A system as in claim 1 wherein said data terminal further includes alpha-numeric keypad means for facilitating input by said user of at least said second data.

9. A system as in claim 1 wherein said terminal further includes screen navigation keys for requesting display of information not currently displayed onthe data terminal display.

10. A method of remotely distributing financial services to plural users having home terminals and also having corresponding financial institution accounts, comprising the following steps:
(a) receiving bill paying requests including user-supplied financial network compatible personal identification information from said home terminals; and (b) at least partially processing said bill paying requests by performing the following steps:
(b1) generating financial network interchange-compatible debit messages including said financial network compatible personal identification information;(b2) transmitting said financial network interchange-compatible debit messages over a financial transaction network;
(b3) debiting said users' financial institution accounts substantially in real-time in response to said debit message; and (b4) paying entities selected by said users via said remote home terminals with funds obtained by debiting the users' financial institution accounts.

11. A method as in claim 10 wherein said bill paying requests receiving step (a) includes the step of receiving a user-inputted personal identifier that is encrypted by said home terminals using DES.

12. A method of allowing people having financial institution accounts in associated financial institutions to pay bills from their homes, said method comprising the following steps:

activating a microprocessor-based home terminal coupled to a telecommunications connection;
inputting a PIN user identification number;
manipulating said terminal to select a payee and an amount to pay said payee;
encrypting said PIN user identification number at said home terminal to provide an financial network compatible encrypted PIN user identification number;
causing and controlling said home terminal to establish communications with a remote computer over said telecommunications connection;
transmitting data representing said financial network compatible encrypted PIN user identification number and said amount from said home terminal to said remote computer over said telecommunications connection;
generating, at said remote computer in response to said transmitted data, an financial network transaction debit message encoding at least said financial network compatible encrypted PIN and said amount;
transmitting said financial network transaction debit message from said remote computer to said user's financial institution over a financial transaction network; and at said user's financial institution, validating and processing said financial network transaction debit message and transferring funds in the amount specified by said financial network transaction debit message.

13. A method as in claim 12 wherein said home terminal includes an alphanumeric multiline display, and said manipulating step includes the step of prompting for inputs by displaying information on said alphanumeric multiline display.

14. A method as in claim 12 wherein said home terminal includes plural user-depressable controls, and said inputting step comprises the step of inputting said PIN user identification number by depressing said controls.

15. A method as in claim 12 wherein said encrypting step includes encrypting said PIN user identification number using DES.

16. A method of transferring money between a user's financial institution account and another party through use of a home terminal coupled by a telecommunications network with a computer remote thereto, said method comprising the following steps:
(a) establishing a telecommunications connection between said home terminal and said remote computer;
(b) requesting, from said home terminal, an PIN number associated with said user's financial institution account;
(c) receiving, from said home terminal with said remote computer over said telecommunications connection, a financial network compatible PIN value in response to said request of step (b);
(d) requesting said user to specify an amount of money to be transferred from said first account to said another party by manipulating said home terminal;
(e) receiving, from said home terminal with said remote computer over said telecommunications connection, an amount value in response to said request of step (d);
(f) generating, with said remote computer in response to said received financial network compatible PIN value and said amount value, a financial network transaction debit or credit message specifying said financial network compatible PIN value and said amount; and (g) applying said financial network transaction debit or credit message to a financial transaction network.

17. A method of providing financial services using home terminals for use by users having associated financial accounts maintained by financial institutions,said method comprising the following steps:
(a) communicating with said home terminals on demand using a remote computer;

(b) receiving financial service requests with said remote computer from said home terminals, said receiving step including receiving, from said terminal, at least a financial network compatible encrypted user identifier, an amount, and a payee selection;
(c) processing said received financial service requests with said remote computer, including the steps of:
(c1) generating and communicating messages from said remote computer to said users' financial institutions resulting in debiting or crediting of said user's financial institution accounts electronically in real-time, including the step of generating a digital financial transaction network transaction message containing at least said financial network compatible encrypted user identifier,and (c2) disbursing payments to payees selected by said users;
(d) obtaining advertising text from advertisers and storing said advertising text on said remote computer; and (e) transmitting said advertising text from said remote computer to said home terminals.

18. A method as in claim 17 wherein said method further includes the steps of:
(f) communicating said payee selection to said users' financial institutions within said digital financial transaction network transaction message; and (g) generating, at said financial institutions, reports specifying said payee selection information.

19. A method as in claim 17 wherein said disbursing step (c2) comprises the step of electronically disbursing said payments by communicating digital money across an electronic network.

20. A method as in claim 17 further including encrypting said financial networkcompatible encrypted user identifier within said home terminals.

21. A method of distributing advertising information remotely to users comprising the following steps:
enabling the users to access financial services from home terminals;
communicating with said home terminals on demand using a remote computer and receiving user requests with said remote computer from said home terminals;
processing said received requests with said remote computer, including the step of generating a financial network compatible debit or credit message and transmitting said message over a financial transaction network;
storing indicia of said processed requests in a database;
obtaining, with said remote computer, information advertising a product or service from an advertiser;
processing said database to target specific users who may be interested in said advertising information;
transmitting said advertising information from said remote computer to the user terminals operated by said targeted specific users;
prompting said targeted specific users to select whether they want further information with respect to said product or service;
receiving and testing user responses to said prompting step; and selecting users for delivery of further information relating to the product or service based at least in part on whether said users provide at least one predetermined response to said prompting step.

22. A method as in claim 21 wherein there is user identifying data corresponding to at least one of said users, the user identifying data representing the identity of said at least one user, and said selecting step comprises:
providing the user identifying data representing the identity of said at least one user to said advertiser in real-time response to receipt of a response from said at least one user; and contacting said at least one user in real time response to receipt of said provided user identifying data.

23. A method as in claim 21 wherein said selecting step comprises:
initiating voice communications with at least one of said users in real-time response to receipt of a response from said at least one user.

24. A method as in claim 21 wherein the user selecting step includes the step, conditioned on user responses to the prompting step, of contacting said advertiser and providing said advertiser with the identity of at least some of said users providing responses.

25. A method as in claim 21 wherein the user selecting step includes the step, conditioned on user responses to the prompting step, of contacting the users providing certain responses to provide additional advertising information.

26. A method of paying bills comprising the following steps:
activating a microprocessor-based home terminal coupled to a standard dial-up telephone line;
causing and controlling said home terminal to establish communications with a remote computer over said telephone line;
inputting a PIN user identification number;
manipulating said terminal to select a payee;
manipulating said terminal to select an amount to pay said payee;
encrypting said PIN within said home terminal to provide a financial transaction network compatible encrypted PIN;
transmitting data representing said financial transaction network compatible encrypted PIN user identification number, said selected payee, and said amount from said home terminal to said remote computer; and at said remote computer, substantially in real-time response to said stored data, generating a financial network debit message specifying at least said financial transaction network compatible encrypted PIN and said amount, and transmitting said financial network debit message from said remote computer to said user's financial institution over a standard financial transaction network to effect a real-time debit of said user's financial institution account.

27. A method as in claim 26 wherein said encrypting step comprises encrypting said PIN within said home terminal using DES.

28. A system for conducting financial transactions using a financial transaction network of the type connected to at least one financial institution,said financial institution maintaining an account for a specific user, said system of the type including a remote computer coupled to a packet data network which carries messages in packets of a fixed predetermined length, said system including;
at least one remote data terminal including user-manipulable input keys and a multi-character display, said data terminal selectively operatively connectable to said packet data network, modem means operatively coupled to said remote data terminal for receiving data packets from said packet data network and for transmitting data packets to said packet data network; and processor means, coupled to said modem means and to said display and input keys, for controlling substantially the entire display content of said terminal display in response to receipt of a single packet data network packet by said modem means.

29. A system as in claim 28 wherein:
said display comprises a two-dimensional display panel capable of displaying up to a predetermined maximum number of characters simultaneously; and said modem means includes means for receiving from said packet data network a single packet specifying substantially all of said predetermined maximum number of characters said maximum number of characters being optimized for the size of said single packets.

30. A system as in claim 28 wherein said processor means includes means for controlling said display to display new contents substantially entirely defined by the data packet last received by said modem means each time said modem means receives a new data packet from said remote computer.

31. A system as in claim 30 wherein said processor means further includes means for:
generating first data representing a payee and second data representing an amount in response to user manipulation of said input keys;
inserting said first and second data into a first of said fixed length packets;
and controlling said modem means to transmit said first packet to said remote computer via a said packet data network and dial-up telephone line.

32. A system as in claim 28 wherein said remote computer further includes:
first data processing means for generating a financial transaction network transaction message responsive to said communicated first and second data and for applying said generated message to said Financial transaction network so as to effect debiting of said user account; and second data processing means for disbursing funds to a payee specified by said first data.

33. A method for delivering at least one electronic service to multiple users at least in part via a telecommunications network and home terminals, said method including the following steps:
(a) obtaining information from at least one information provider;
(b) receiving, from a home terminal over said telecommunications network, an electronic service request and financial network compatible personalidentification information associated with a user;

(c) generating an financial network debit or credit request message encoding said received financial network compatible personal identification information;
(d) applying said financial network debit or credit request message including said financial network compatible personal identification information to a financial transaction network to effect a real-time debiting or crediting of funds from an account associated with said user substantially in real-time response toreceipt of said electronic service request from said user;
(e) delivering, to said home terminal over said telecommunications network in response to said electronic service request, at least a portion of said information provided by said information provider;
(f) repeating said steps (b)-(e) for multiple users; and (g) using at least a portion of funds debited in response to performance of said applying step (d) to compensate said information provider at least in part for said delivered information.

34. A method as in claim 33 further including the step of providing extensive bidirectional interaction between said home terminal and a remote computer substantially in real-time via said telecommunications network so as to provide real-time online interactivity with said user.

35. A method as in claim 33 wherein said receiving step (b) includes receivinga request for home financial services from said user.

36. A method as in claim 33 wherein said receiving step (b) includes receivinga request for electronic bill payment from said user.

37. A method as in claim 33 further including the following steps:
collecting demographic data associated with said multiple users;
targeting advertisements to said multiple users in response to said demographic data; and delivering said targeted advertisements to said multiple users via said telecommunications network.

38. A method as in claim 37 further including prompting said users to indicate interest in additional information regarding said targeted advertisements.

39. A method as in claim 37 further including contacting advertisers substantially in real-time response to said prompted user interest indication.

40. A method as in claim 37 further including:
requesting user consent to release user identity;
receiving a response to said user consent request from said user via said telecommunications network; and conditioning release of user identity to at least one further party based on said received response.

41. A method as in claim 33 wherein:
said method further includes supplying, to each of said multiple users, said home terminal having a display; and said advertisement delivering step comprises transmitting information to said home terminals over said telecommunications network to cause said terminals to display said targeted advertisements in real-time.

42. A method as in claim 33 wherein:
said method further includes the step of permitting the user to select, via said home terminal, any one of plural information providers;
said obtaining step (a) comprises the step of obtaining information from said selected information provider; and said using step (g) includes the step of compensating said selected information provider.

43. A method as in claim 33 further including the steps of encrypting said personal identification number, and transmitting said encrypted personal identification number over said telecommunications network for receipt by a remote computer in said receiving step (b).

44. A method as in claim 43 wherein said encrypting step includes encrypting said personal identifier using DES.

45. A method of targeting information delivery comprising:
establishing connections with terminals used by users;
conducting home financial service transactions with said users via said connections including the steps of interacting with said users via said terminals and authorizing electronic payments based at least in part on said interacting;
generating a database at least in part in response to said home financial service transactions; and targeting information for delivery to said terminals via said connections based on the contents of said database, wherein said method further includes:
prompting one of said users to provide an input;
transmitting a user response to said prompting step interactively in real time over at least one of said connections; and conditionally releasing the identity of said user to a provider associated with said targeted information based on said transmitted response.

46. A method as in claim 45 further including interactively displaying, on displays of said terminals associated with said users, data transmitted to said terminals via said connections.

47. A method as in claim 45 wherein the conducting step comprises transmitting bill paying options to a user terminal and permitting the user to select between the bill paying options by actuating option selectors.

48. A method as in claim 45 wherein the conducting step comprises transmitting bill paying options to a user terminal for display on a display, and permitting the user to select between the bill paying options by actuating different option selectors disposed in proximity to the display, and wherein the generating step comprises recording the user's bill paying option selections in a confidential database.

49. A method of targeting users based at least in part on the users' remote access to financial services over a network via user terminals, the method comprising the following steps:
obtaining, with a remotely located computer, advertising information relating to at least one product or service;
communicating digital information between user terminals and the remotely located computer over a network that enables the users to remotely access financial services from their user terminals;
storing and processing user requests with said remotely located computer and targeting users who may be interested in said advertising information;
transmitting said advertising information from said remotely located computer to the user terminals operated by said targeted users;
prompting said targeted users to select whether they want further information with respect to said product or service;
receiving and testing user responses to said prompting step; and selecting users based at least in part on the results of said testing step.

50. A method as in claim 49 wherein the selecting step includes selecting users for delivery of further information relating to the product or service if said users provide at least one predetermined response to said prompting step.

51. A method as in claim 49 further including the step of delivering, to the selected users, further information relating to the product or service.

52. A method as in claim 49 wherein the communicating step comprises facilitating the users to conduct bill paying transactions on the user terminals.

53. A method as in claim 49 wherein the communicating step comprises facilitating the users to conduct home financial service transactions on the user terminals.

54. A method as in claim 49 wherein the prompting step includes the step of displaying a prompt message on a miniature multi-line liquid crystal display device included within at least one user terminal, and the method further includes the step of sensing user depression of at least one soft key disposed on the user terminal adjacent the liquid crystal display device.

55. A method as in claim 49 further including the step of providing a provider of said product or service with the identities of at least some users who respond to the prompt.

56. A method as in claim 49 wherein the storing and processing step includes the step of generating a database containing user financial transactions, and analysing the database to determine user demographic information.

57. A method as in claim 49 wherein the processing step includes the step of storing user financial transaction data in at least one database.

58. A method for delivering at least one electronic service to multiple users at least in part via a telecommunications network and home terminals including the following steps:
(a) obtaining information from at least one information provider;
(b) receiving, with a computer arrangement from at least one home terminal over said telecommunications network, an electronic service request and financial network compatible personal identification information;

(c) generating, with said computer arrangement, a financial network request message encoding said received financial network compatible personal identification information;
(d) applying, using said computer arrangement, said financial network request message generated by step (c), including said financial network compatible personal identification information to a financial transaction network to effect a real-time transfer of funds;
(e) delivering, to said home terminal over said telecommunications network in response to said electronic service request, at least a portion of said information provided by said information provider; and (f) repeating said steps (b)-(e) for multiple users.

59. A method as in claim 58 wherein said applying step (d) is performed substantially in real-time response to receipt of said electronic service request from said user.

60. A method of facilitating financial transactions comprising:
(a) temporarily coupling a portable storage device to a home terminal;
(b) establishing a connection between said home terminal and a remote computer;
(c) sending financial network compatible personal identification information from said terminal to said remote computer;
(d) applying a financial network request message including said financial network compatible personal identification information to a financial transaction network to effect a real-time funds transfer;
(e) delivering a digital representation of at least part of said funds to said home terminal;
(f) storing said digital representation in said portable storage device; and (g) using said digital representation to pay for goods or services.

61. A method as in claim 60 wherein said method further includes decoupling said portable storage device from said home terminal.

62. A method as in claim 60 further including displaying a message on a screen on said terminal.

63. A method for delivering at least one electronic service to multiple remote terminals at least in part via a telecommunications network, the method including the following steps:
(a) receiving, with a computer arrangement, over the telecommunications network from a remote terminal, at least one service request message including an electronic service request and associated identifying information;
(b) generating, with said computer arrangement, an Automatic Teller Machine (ATM) compatible funds transfer request message based at least in part on the service request message received by step (a);
(c) applying the generated ATM compatible request message to a financial services network so as to effect a financial transaction;
(d) delivering at least one service to the remote terminal over the telecommunications network; and (e) repeating said steps (a)-(d) for multiple remote terminals.

64. A method as in claim 63 wherein generating step (b) includes the step of inserting an ATM compatible personal identifier (PIN) into the funds transfer request message.

65. A method as in claim 63 wherein the receiving step (a) includes the step of receiving an ATM compatible personal identifier (PIN) from the remote terminal.

66. A method as in claim 63 wherein:
(1) the receiving step (a) includes the step of receiving an ATM
compatible personal identifier (PIN) from the remote terminal; and (2) the generating step (b) includes the step of inserting the received ATM
compatible personal identifier (PIN) into the fund transfer request message.

67. A method as in claim 63 wherein the receiving step (a) includes the step of receiving personal identification information that identifies at least one user of the remote terminal.

68. A method as in claim 63 wherein the applying step (c) is performed in real time response to receipt of the electronic service request message.

69. A method as in claim 63 wherein the delivering step (d) is performed in real time association with the applying step (c).

70. A method as in claim 63 wherein the repeating step (e) is performed concurrently for the multiple remote terminals.

71. A method as in claim 63 further including the step of generating at least one service request message at least in part under control of software executed by the remote terminal.

72. A method as in claim 63 further including the step of generating at least one service request message using a screen phone.

73. A method as in claim 63 further including the step of generating at least one service request message in real time interactive response, at least in part,to depression of soft keys disposed adjacent lines of a display.

74. A method as in claim 63 further including the step of generating at least one service request message in response, at least in part, to encryption performed within the remote terminal.

75. A method as in claim 63 further including the step of transmitting the at least one message received by step (a) using a modem associated with the remote terminal.

76. A method as in claim 63 further including the step of communicating the at least one message received by step (a) at least in part over a dial up telephone line.

77. A method as in claim 63 further including performing a real time debit of a financial institution account in response to the message applied by step (c).

78. A method as in claim 65 further including performing a real time credit ofa financial institution account in response to the message applied by step (c).

79. A method of facilitating financial transactions comprising:
(a) establishing a connection between a home terminal and a remote computer;
(b) sending personal identification information from the terminal to said remote computer;
(c) generating, with said remote computer, an Automatic Teller Machine (ATM) compatible request message including an ATM compatible personal identifier (PIN) at least in part in response to the personal identification information sent by step (b);
(d) applying the ATM compatible request message including the ATM
compatible personal identifier (PIN) to a financial services network to effect areal-time funds transfer; and (e) using the transaction to at least in part pay for goods or services.

80. A method as in claim 79 wherein the generating step (c) includes insertingthe personal identification information into the ATM compatible request message as the ATM compatible PIN.

81. A method as in claim 79 further including the step of testing the validityof the personal identification information before performing step (c).