WO2002021377A1

WO2002021377A1 - System and method for cashless transactions

Info

Publication number: WO2002021377A1
Application number: PCT/US2001/027168
Authority: WO
Inventors: Keith Curtis; David Richards; Brett Runion
Original assignee: Ardent Technology
Priority date: 2000-09-08
Filing date: 2001-08-30
Publication date: 2002-03-14
Also published as: AU2001288595A1; WO2002021377A9

Abstract

A system for transmitting and recording the transfer of electronic funds to a payment acceptor includes a personal data unit (8) and transaction node (5). The personal data unit (8) includes a microprocessor (20) having a data storage structure (21) storing an electronic funds balance connected to a data transmitter (26). The transaction node (5) includes a node receiver connected to the payment acceptor. Upon receiving a signal from the data transmitter (26), the node receiver signals receipt of electronic funds to the payment acceptor which in turn, debits of credits the electronic funds received in exchange for goods or services. In an optional embodiment, the system includes a transaction and information database for tracking transactions and, optionally, storing identity validation data (28) to verify the identity of users transacting electronic funds. A transaction hub (11) is optionally used to exchange electronic funds for cash or credit.

Description

SYSTEM AND METHOD FOR CASHLESS TRANSACTIONS

Related Application Data

The present application claims the priority of U.S. Provisional Application

Serial No. 60/231,393, entitled "Safecash System," filed September 8, 2000 by

Applicants herein.

Field of the Invention The present invention relates to an electronic funds and data management system

and apparatus for the secure storage, retrieval, transmission and tracking of electronic

funds, transactions, and customer data.

Background of the Invention

Coins are unclean and cumbersome to handle. Cash, tokens and scrip, the most

common alternatives to coins used in casinos for the play of casino games, quickly

suffer from wear and tear. Furthermore, the mechanical devices associated therewith

need continuous maintenance and are prone to failure. Thus, the replacement of cash

and coin handling through the use of electronic funds has been a goal of many in the

gaming industry and other institutions and business.

The most common electronic funds transfer systems currently available consist

of a magnetic card used in conjunction with a magnetic card reader. Typically, the

owner of the electronic funds accesses and transfers the electronic funds from a remote

location by swiping the card through the card reader and entering a predetermined code or customer Personal Identification Number ("PIN") into the card reader. This system is

commonly implemented in Automatic Teller Machines ("ATMs"), debit card

transaction systems, and credit card transaction systems.

Another type of electronic funds transfer system includes an access control system to control and charge access to various fee-based activities such as amusement

rides, arcade games, cruise ships, and the like. A magnetic card is coupled to a central

processing station and database that creates, stores and verifies customer account files to

determine availability of credit. Pluralities of types of credit are used and the computer issues either approval or disapproval to each transaction based upon the credit or funds

availability of a particular customer in the system.

In the casino gaming industry, there have been proposals and prior art references

discussing implementing electronic fund transfer systems into gaming machines. For

example, prior art references propose retrofitting gaming machines with a read/write

device that can read a credit or debit card to transfer electronic tokens or gaming credits

from a remote bank account to the gaming machine. Some such systems further include

embodiments in which any remaining credits in the gaming machine may be transferred

back to the player's remote bank account. However, it is well known in the art that

these systems have not been implemented on a wide scale because of gaming

regulations, banking regulations, and concerns over security, disavowance of debt,

compulsive gambling, and the like.

Other prior art systems in the gaming industry include systems that utilize

magnetic identification cards that are read into a tracking system. In such systems, payoffs are typically made by printing a voucher redeemable at the casino change

booths.

For example, U.S. Patent No. 4,575,622, discloses a pre-paid card for arcade

games. Players deposit a quantity of funds in exchange for a magnetic card storing an

identifier. The quantity of funds is entered into a data record stored in a data center.

The data center is networked with a plurality of card readers. When the card is swiped

through a reader, the data center determines the quantity of tokens stored for the card. If

the data center determines that the tokens available are sufficient for actuation of the

game, the game attached to the reader is activated. As the tokens are used, the balance

stored at the data center is depleted. When the balance reaches zero, the data center

blocks activation of a game in response to swiping the card.

This system, the system shown in U.S. Patent No. 5,265,874 to Dickenson, et al., as well as any other system in which electronic funds or credits are stored in central

remote accounts, are commonly referred to as "value-stored accounts." These systems

typically utilize magnetic-stripe cards encoded to permit a user to access to a centrally

stored account and transfer electronic funds.

Such value-stored accounts, however, provide the potential for theft and illegal

manipulation. Possession of a person's magnetic-stripe card and the PIN may be used

to transfer substantial amounts of money in a very short time. If the money is used for

gambling and is lost, even if the electronic thief is caught, it may no longer be possible

to recover the money. This sort of theft occurs in connection with systems that store the

electronic funds in the remote computer system itself rather than in a portable unit. Likewise, general-purpose debit or credit cards and smart card type data units are

made of plastic or similar material. Those cards are used in association with magnetic

card readers, which can only be accessed by sweeping the card through a groove or by

inserting the card into a slot thereby causing fast wear and tear of the card and the

interface components due to friction.

Another prior art approach utilizes so-called "smart cards." Such systems are

sometimes referred to as "value-stored card" systems (as opposed to "value-stored

account" systems discussed above). In a smart card system, the account balance is

stored directly on a memory structure on the smart card. As electronic funds are used,

the account balance stored is decreased. However, these systems suffer from

drawbacks. For example, issues such as security, authentication, and difficulty in

recharging an account balance surround such systems.

It therefore can be seen that there is a need in the art for a secure system for

transferring electronic funds in exchange for goods and services in a variety of settings.

Summary of the Invention

A system for transmitting and recording the transfer of electronic funds to a

payment acceptor, such as those used on gaming machines, vending machines, arcade

games, cash registers, and the like, includes at least two components, a personal data

unit and a transaction node. The personal data unit includes a microprocessor having a

data storage structure storing at least an electronic funds balance and a data transmitter

connected to the microprocessor. Optionally, the personal data unit additionally

includes a display to display at least the electronic funds balance and an input actuator to control the quantity of funds transferred. In a further optional embodiment, the

personal data unit includes an input receiver communicating with the microprocessor to

receive signals for processing and storage at the data storage structure, as described in

more detail below. The transaction node includes a node receiver connected to the payment acceptor. The data transmitter may communicate with the transaction node in any

manner known in the art including mutual induction, infrared signals, sonic signals,

visible or invisible light or electromagnetic signals, or the like. Upon receipt of a signal

representing a portion or all of the electronic funds balance from the data transmitter,

the transaction node communicates receipt of electronic funds to the payment acceptor.

In turn, the payment acceptor debits or credits the electronic funds received at the

transaction node in exchange for goods or services. As the data transmitter transmits a

signal representing a portion or all of the electronic fund balance, the microprocessor updates the electronic funds balance stored in the data storage structure. Optionally, the

transaction node also includes a node transmitter to transmit a signal to the input

receiver to transfer electronic funds balance back to the personal data unit.

In a further embodiment, the system may further include a transaction and

information database communicating with the transaction node. In such an

embodiment, the data storage structure additionally stores a unit identifier, optionally a

unique unit identifier, and the data transmitter transmits the unit identifier to the node

receiver in addition to the electronic funds. This unit identifier can be correlated to a

particular customer record or anonymous identifier depending on the application use.

The transaction node, in turn, communicates the quantity of electronic funds and the unit identifier to the transaction and information database for storage therein.

Additionally, in an optional embodiment, the transaction node also includes an identity

validator, such as a keypad for entering a personal identification number ("PIN") or a

device for measuring biometric data such as fingerprints or the like. In such an

embodiment, the transaction and information database additionally stores identity validation data. When the identity validator receives identity input, and the payment

acceptor receives the electronic funds only if the identity input matches the identity

validation data.

In an embodiment in which the personal data unit includes an input receiver, an

optional transaction hub may be provided. The transaction hub includes a hub

transmitter communicating with the input receiver such that the electronic funds balance

stored in the data storage structure may be increased or decreased by a selected quantity.

In this manner, the electronic funds balance may be selectively increased or decreased as

electronic funds are added to or redeemed from the personal data unit. For example, the

transaction hub may include a data entry terminal connected to the hub transmitter such

that the electronic funds balance stored in the data storage structure may be increased or

decreased by an amount entered at the data entry terminal. Similarly, a currency handler

may be connected to the hub transmitter such that the electronic funds balance stored in

the data storage structure may be increased or decreased by an amount inserted into or

dispensed from the currency handler. In yet another optional embodiment, the hub

transmitter communicates with an automatic teller machine linked to a bank server. In

such an embodiment, the electronic funds balance stored in the data storage structure may be increased or decreased by an amount withdrawn from or deposited to the bank

server via the automatic teller machine.

The method of using the system begins by storing at least an electronic funds

balance in the data storage structure at the personal data unit. In an optional embodiment, the personal data unit includes an input receiver and the electronic funds

balance is initially transmitted to the personal data unit using the transaction hub or

transaction node described above.

Electronic funds are used for payment at payment acceptors by transmitting a

signal, such as by mutual induction, infrared signal, sonic signal, or the like,

representing a portion or all of the electronic funds balance from the data transmitter to

a node receiver. Optionally, the signal is encrypted. At the personal data unit, the

microprocessor updates the electronic funds balance stored in the data storage structure

to reflect the transfer of electronic funds. In an optional embodiment including a

display, a confirmation message may be displayed on the personal data unit.

The transaction node signals receipt of the funds to the payment acceptor. The

payment acceptor debits or credits the electronic funds received in exchange for goods

or services. Optionally, the node includes a node transmitter and the personal data unit

includes an input receiver such that the payment acceptor may transmit a portion or all

of any remaining balance back to the personal data unit. The node may also optionally

print a record of each transaction.

In an optional embodiment including a remote transaction and information

database communicating with transaction nodes, a unit identifier may be transmitted by

the personal data unit to the transaction receiver so that each transaction, including the unit identifier and amount of electronic funds transacted, may be recorded at the

database. In a further optional embodiment, identification input is entered at an identity

validator at the transaction node before the electronic funds are accepted. If the

identification input matches identity validation data stored at the transaction and

information database, the electronic funds are accepted. Similarly, in another optional

embodiment, the transaction and information database stores a status for each personal

data unit. Prior to accepting electronic funds, the status is checked to determine whether

the personal data unit is active or has been deactivated. If the personal data unit is

active, the electronic funds are accepted. In an optional embodiment including a

display, a confirmation message may be displayed on the personal data unit.

As an alternative optional security measure, the data storage structure may store

a defined deactivation time. The microprocessor tracks the time and upon reaching the

defined deactivation time, the microprocessor blocks the transmission of electronic

funds from the personal data unit.

To exchange electronic funds for cash or credit, that is, add electronic funds to a

personal data unit or redeem electronic funds from a personal data unit, transaction hubs

may be provided. These transaction hubs may employ many different methods for

conducting the exchange including entering at a data entry terminal the quantity of cash

or credit exchanged, receiving or dispensing currency from a currency handler, and

communicating with an automatic teller machine linked to a bank server to increase or

decrease the electronic funds balance stored in the data storage structure by the selected

amount withdrawn from or deposited to the bank server via the automatic teller

machine. It is an object of the present invention to provide an electronic system for the

secure storage, retrieval, transmission and tracking of electronic funds and customer

data.

Brief Description of the Drawings

FIG. 1 shows a front view of a personal data unit according to an embodiment of

the present invention;

FIG. 2 shows a block diagram of a personal data unit, transaction node, and

transaction and information database according to an embodiment of the present

invention;

FIG. 3 shows a block diagram of a personal data unit, transaction hub, and

transaction and information database according to an embodiment of the present

invention;

FIG. 4 shows a block diagram of a network of transaction hubs and transaction

nodes networked to a transaction and information database according to an embodiment

of the present invention;

FIG. 5 shows a block diagram of a transaction node connected to a gaming

machine according to an optional embodiment of the present invention;

FIG. 6 shows a block diagram of a personal data unit according to an

embodiment of the present invention;

FIG. 7 shows a block diagram of a transaction hub connected to an automatic

teller machine according to an optional embodiment of the present invention FIG. 8 shows a flowchart of a method according to an embodiment of the

present invention.

Description

Reference is now made to the figures wherein like parts are referred to by like numerals throughout. Referring first to FIGS. 1 and 6, a personal data unit 8 includes a

microprocessor 20 having a data storage structure 21 storing at least an electronic funds

balance. The data storage structure 21 may take any form known in the art including

read-only memory ("ROM"), random access memory ("RAM"), electrically

programmable read-only memory ("EPROM"), electrically erasable programmable

read-only memory ("EEPROM"), electrically alterable read-only memory ("EAROM"),

magnetic storage, optical storage or the like. In an optional embodiment, the data

storage structure 21 is readable/writable/rewritable. The personal data unit 8 may

optionally include light emitting diodes to visually cue the user to the transfer of data, an input actuator 3, such as a button or series of buttons, to, for example, actuate displays,

input amounts, actuate transfers, and the like, and a display 2, optionally a liquid crystal

display, for displaying data, prompts, input, and the like. The personal data unit 8 may

optionally include a power source 25, such as a battery, solar cell, or the like. In one

optional embodiment, is a power source that is recharged by induction, thereby

eliminating the need for replacing batteries.

The personal data unit 8 further includes a data transmitter communicating with

the microprocessor 20. It is contemplated that the data transmitter could be compatible

with other remote transmitters such as car remotes or the like and include a manual or automatic switch to control the signal transmitted. In a further optional embodiment, an

input receiver 22 also communicates with the microprocessor 20. Optionally, the input

receiver 22 and data transmitter are combined into a transceiver 22 as shown in FIG. 6.

With reference to FIG. 2, a transaction node 5 includes a node receiver 4 that receives signals from the data transmitter 22. The transaction node 5 interfaces with a payment acceptor 6, such as a gaming machine, vending machine, cash register, toll

booth, arcade game machine, laundry machine, or other application associated with the

sale of goods or services, such that the payment acceptor 6 may be alerted to the receipt

of a signal representing electronic funds at the transaction node 5. For example, FIG. 5

illustrates a transaction node 5 adapted for a gaming machine. Referring again to FIG.

2, in an optional embodiment, the transaction node 5 further includes a node transmitter

26. In one optional embodiment, for example, the node receiver 4 and node transmitter

26 are combined into a mutual induction transceiver data converter and interface.

With reference to FIGS. 2 and 4, in an optional embodiment, transaction nodes 24 communicate with a transaction and information database 13 through a hardwire or

wireless interface. In such an embodiment, the transaction and information database 13

may be utilized for various optional tasks including recording transactions occurring at

the transaction nodes 24, creating redundant records, along with the record stored at the

personal data unit 8, of electronic funds balances, and storing identity verification data.

To maintain the transaction and information database 13, a terminal with direct access

to the transaction and information database 13 may be provided.

For example, to provide a level of security in the transfer of electronic funds, the

transaction node 5 may include an identity validator 28. The identity validator 28 could be any identity validating device known in the art such as a keypad for entry of a

password or personal identification number ("PIN") or biometric device for fingerprint

scanning, retina scanning, facial recognition, or other biometric verification. In such an

optional embodiment, the transaction and information database 13 includes identity

validation data. The identity validator 28 communicates with the transaction and information database 13 and compares the identity input at the identity validator 28 with the validation data stored at the transaction and information database 13. The payment

acceptor 6 only receives the electronic funds if the identity input and validation data

match.

In a further embodiment of the system of the present invention, shown in FIG. 3,

a transaction hub 11 may be provided. The transaction hub 11 includes a hub

transmitter 32 and hub receiver 31 that communicates with the input receiver 22 and

data transmitter 22 of the personal data unit 8. hi this fashion, the transaction hub 11

may be used to increase or decrease the electronic funds balance stored in said data

storage structure 21 by a selected quantity. Thus, the transaction hub 11 may be used to

exchange cash or credit for electronic funds or vice versa. It is contemplated that the

exchange of cash or credit could be performed in a variety of ways.

For example, the transaction hub 11 may optionally include a data entry terminal

10, such as a keyboard, such that the amount of electronic funds transacted can be

entered at the keyboard for transmission from the hub transmitter 32 to the input

receiver 22. Alternatively or additionally, the transaction hub 11 may optionally include

a currency handler. In such an optional embodiment, currency may be inserted into the

currency handler and electronic funds transmitted to the personal data unit 8. In yet another optional embodiment, shown in FIG. 7, the transaction hub 11 may

communicate with an automatic teller machine ("ATM") 34 linked to a bank server. In

this optional embodiment, the user withdraws from or deposits to his or her account at

the bank server via the ATM 34. The hub transmitter 32 then transmits the quantity of

electronic funds transacted to the personal data unit 8. The transaction hub 11 may optionally include a printer 12 to print a record of the electronic funds transaction. In an optional embodiment including a transaction and information database 13, such as that

shown in FIG. 4, the transaction hub 11 may also record the electronic funds transaction at the transaction and information database 13. In any of the above-described

embodiment, it is contemplated that the transaction hub 11 may encode and dispense

personal data units 8 to users who have not yet been issued one. Similarly, it is

contemplated that the transaction hub 11 could incorporate an identity validator like that

used at the transaction node 5 to validate the user's identity when electronic funds are

transacted.

Referring to FIG. 8, in use, a user obtains 40 a personal data unit 8, for example,

by being issued one by an attendant or obtaining one from a transaction hub 11

dispenser, and adds electronic funds to the personal data unit 8. It is contemplated that

the electronic funds could be purchased using cash or credit or that the funds could be

promotional in nature, such as for a slot tournament. In such an optional embodiment, it

is not necessary for the customer to be present at issuance of an personal data unit 8. In

such an optional embodiment, electronic funds and consumer data may be loaded into a

personal data unit 8 and mailed or given to a customer for promotional or marketing

purposes. Alternatively, the personal data unit 8 may be issued with a pre-determined quantity of electronic funds and, optionally, an deactivation time as described below,

but without customer data.

In an embodiment including a transaction hub 11, a user obtains 42 electronic

funds, such as by exchanging cash or credit, at the transaction hub 11 and the hub

transmitter 32 transmits a signal to the input receiver 22 at the personal data unit 8. In

an embodiment requiring identity validation, the identity validation data could also be

entered at the transaction hub 11 and stored at the transaction and information database

13 and, optionally, the data storage structure 21.

For example, the user could insert money into a currency handler or withdraw money using an ATM 34 and receive the electronic funds directly to the personal data

unit 8 through a signal from the hub transmitter 32 to the input receiver 22. Similarly,

an attendant could receive cash or credit from the user and enter the amount to be

credited into a data entry terminal 10 for transfer to the personal data unit 8. In an

optional embodiment, the signal transmitted to the personal data unit 8 is encrypted

prior to transmission and decrypted upon receipt. In an optional embodiment, the

encryption/decryption algorithm includes a public key/private key encryption method in

which the private key is stored only in the transaction nodes 24 and transaction hubs 11

and the public key is a PIN known to the user and stored only in the personal data unit 8

and the transaction and information database 13.

In a similar fashion, a user could redeem 66 electronic funds stored in a personal

data unit 8 at a transaction hub 11 by transmitting a signal from the data transmitter 22

at the personal data unit 8 instructing the transaction hub to redeem a selected quantity

of electronic funds. The transaction hub 11 then dispenses 76 currency, credits a bank or credit account, or prompts an attendant to pay the user. The microprocessor 20

decreases 64 the electronic funds balance stored at the data storage structure 21 to

reflect the redemption of the electronic funds. As with the transaction node 5, an

identity validator could be incorporated into the transaction hub 11. h such an optional embodiment, the user could be required to validate his or her identity through input 68

of identity input data. As discussed above, the identity input could take many forms

including a PIN or biometric data, such as fingerprints or the like. The identity input is

compared 72 to identity validation data stored at the transaction and information

database 13 and the redemption is allowed 76 or denied 74. In an optional embodiment utilizing a transaction and information database 13, a photograph of the user could also

be stored for additional security during electronic funds transactions. In an alternate

optional embodiment, identity verification can be validated using the unit identifier of

the personal data unit, as described below, in cases where the personal data unit was

issued without customer identification information.

Once an electronic funds balance has been stored to the data storage structure 21

of the personal data unit 8, the personal data unit 8 is given to a user. In an optional

embodiment including a display 2, the electronic funds balance and other relevant

information may be displayed to the user.

The user may then transfer all or a portion of the electronic funds balance to

various payment acceptors 6, such as payment acceptors 6 interfaced with vending

machines, gaming machines, arcade games, cash registers, toll booths, or the like. To

transfer funds, the transmits 44 a signal from the data transmitter 22 of the personal data

unit 8 representing the desired quantity of funds to the transaction node 5 interfaced with the payment acceptor 6. In an optional embodiment, the user uses input actuators 3

to select the amount of electronic funds to transfer and initiate the transfer. Alternatively, the transfer may automatically initiate when the personal data unit 8 is

within a predetermined range of a transaction node 5. In yet another embodiment, the transfer may be initiated when the personal data unit 8 is within a predetermined range of a transaction node 5 and an input actuator 3 is actuated. In an embodiment including

a display and/or light emitting diodes, the display may display a message or the light

emitting diodes may flash to alert the user to the transfer of electronic funds.

The transaction node 5 communicates receipt 54 of the electronic funds to the

payment acceptor 6 and the payment acceptor 6 debits or credits 58 the received

electronic funds in exchange for goods and services. Also, the microprocessor 20 of the

personal data unit updates 56 the electronic funds balance stored at the data storage

structure 21 to reflect the transfer of funds. As discussed above, the transaction node 5 may optionally communicate with a transaction and information database 13 to create a

redundant record of the transaction. In such an embodiment, the personal data unit 8

may additionally transmit a unit identifier assigned to, and stored in, the personal data

unit 8 to associate the record with a particular account in the transaction and information

database. The unit identifier is optionally a unique identifier. The unit identifier may be

associated with a specific user profile or, in an embodiment in which the personal data

unit 8 is distributed without customer information encoded therein, the unit identifier

may be associated with an anonymous account. In a further embodiment, upon

receiving the unit identifier, the transaction node 5 may optionally check the access

allowed to the user as stored at the transaction and information database 13. That is, personal data units 8 may be limited in their use in certain ways so that, for example,

certain personal data units 8 could be used for arcade games but not for gambling.

Optionally, the payment acceptor 6 may require validation of the user's identity prior to receiving the electronic funds. In such an embodiment, identity validator 28 receives identity input 46. The transaction node 5 communicates to the transaction and

information database 13 to compare 50 the identity input with identity validation data 48

stored at the transaction and information database 13. If the identity input matches the

identity validation data, the electronic funds are received 54; if not, the transfer is denied

52.

In an optional embodiment, a user may conduct a series of transactions 60 at the

transaction node or transfer 62 electronic funds from a transaction node 5 back to the

personal data unit 8. In such an embodiment, the transaction node 5 transmits a signal

to the input receiver 22 of the personal data unit 8. In response to this signal, the

microprocessor 20 updates 64 the electronic funds balance stored at the data storage

structure 21.

For additional security, a number of security measures can be instituted in the

method of the present invention. For example, the transaction and information database

13 may include a status for each personal data unit 8 indicating whether the personal

data unit 8 is active or deactivated. A number of events could then be used to determine

the status of a specific personal data unit 8. For example, if the personal data unit 8 is

reported lost or stolen, the personal data unit 8 could be deactivated. Similarly, a

defined deactivation time could be specified. When the deactivation time is reached,

the status could be changed to deactivated. In such an embodiment, the payment acceptor would be prevented from receiving electronic funds from any personal data

unit 8 that is determined by the transaction node 5 to be deactivated.

The system and method of the present invention could also be adapted for multi-

property use. In one such an optional embodiment, the personal data unit 8 could

include multiple location settings. In this embodiment, separate accounts could be maintained for each location. The user selects the location or the personal data unit 8

senses the location. Electronic funds transactions taking place after location selection

are tracked in an account for that specific location. In an alternate multi-property

system, the personal data unit 8 could be used a multiple locations using a single

account.

While certain embodiments of the present invention have been shown and

described it is to be understood that the present invention is subject to many

modifications and changes without departing from the spirit and scope of the claims

presented herein.

Claims

I CLAIM:

1. A system for transmitting and recording the transfer of electronic funds to a

payment acceptor, comprising: a personal data unit including a microprocessor having a data storage structure storing at least an electronic funds balance and a data transmitter connected to said

microprocessor to update the electronic funds balance stored in said data storage

structure as said data transmitter transmits a signal representing a portion or all of said

electronic fund balance; and

a transaction node having a node receiver connected to said payment acceptor,

said transaction node communicating receipt of electronic funds to said payment

acceptor upon receipt of a signal representing a portion or all of said electronic funds

balance from said data transmitter, said payment acceptor debiting or crediting the

electronic funds received at said transaction node in exchange for goods or services.

2. The system of claim 1 further comprising a transaction and information database

communicating with said transaction node, wherein said data storage structure

additionally stores a unit identifier and said data transmitter transmits said unit identifier

to said node receiver in addition to said electronic funds, said transaction node

communicating the quantity of electronic funds and said unit identifier to said

transaction and information database.

3. The system of claim 2 in which said transaction node additionally comprises an

identity validator to receive identity input and said transaction and information database additionally stores identity validation data, said payment acceptor receiving said

electronic funds only if the identity input matches the identity validation data.

4. The system of claim 1 wherein said personal data unit further comprises a

display.

5. The system of claim 1 wherein said personal data unit further comprises an input

actuator.

6. The system of claim 1 wherein said data transmitter and said node receiver

communicate to one another via mutual induction.

7. The system of claim 1 wherein said data transmitter and said node receiver

communicate to one another via infrared signals.

8. The system of claim 1 wherein said data transmitter and said node receiver

communicate to one another via high frequency sonic signals.

9. The system of claim 1 wherein said personal data unit further comprises an input

receiver connected to said microprocessor.

10. The system of claim 9 further comprising a transaction hub including a hub

transmitter communicating with said input receiver such that said electronic funds balance stored in said data storage structure may be increased or decreased by a selected

quantity.

11. The system of claim 10 wherein said transaction hub further comprises a data

entry terminal connected to said hub transmitter such that said electronic funds balance

stored in said data storage structure may be increased or decreased by an amount entered

at said data entry terminal.

12. The system of claim 10 wherein said transaction hub further comprises a currency handler connected to said hub transmitter such that said electronic funds

balance stored in said data storage structure may be increased or decreased by an

amount inserted into or dispensed from said currency handler.

13. The system of claim 10 wherein said transaction hub further comprises an

automatic teller machine linked to a bank server, said automatic teller machine

connected to said hub transmitter such that said electronic funds balance stored in said

data storage structure may be increased or decreased by an amount withdrawn from or

deposited to said bank server via said automatic teller machine.

14. The system of claim 9 wherein said transaction node further comprises a node

transmitter communicating with said payment acceptor, said node transmitter

transmitting a signal to said input receiver to increase or decrease the electronic funds

balance stored in said data storage structure by a selected quantity.

15. A system for transmitting and recording the transfer of electronic funds to a

payment acceptor, comprising: a personal data unit including a microprocessor having a

readable/writable/rewritable data storage structure storing at least an electronic funds

balance and a unit identifier, an input receiver connected to said microprocessor, and a data transmitter connected to said microprocessor to update the electronic funds balance

stored in said data storage structure as said data transmitter transmits a signal

representing a portion or all of said electronic funds balance;

a transaction node including a node receiver connected to said payment acceptor,

said transaction node communicating receipt of electronic funds to said payment

balance and a unit identifier from said data transmitter, said payment acceptor debiting

or crediting the electronic funds received at said transaction node in exchange for goods

or services;

a remote transaction and information database communicating with said

transaction node, said transaction node communicating the quantity of electronic funds

and said unit identifier to said transaction and information database; and

a fransaction hub including a hub transmitter communicating with said input

receiver such that said electronic funds balance stored in said data storage structure may

be increased or decreased by a selected quantity.

16. The system of claim 15 in which said transaction node additionally comprises an

electronic funds only if the identity input matches the identity validation data..

17. The system of claim 15 wherein said fransaction node further comprises a node

transmitter communicating with said payment acceptor, said node transmitter

balance stored in said data storage structure by a selected quantity.

18. The system of claim 15 wherein said personal data unit further comprises a

display.

19. The system of claim 15 wherein said personal data unit further comprises an

input actuator.

20. The system of claim 15 wherein said data transmitter and said node receiver

communicate to one another via mutual induction.

21. The system of claim 15 wherein said data transmitter and said node receiver

communicate to one another via infrared signals.

22. The system of claim 15 wherein said data transmitter and said node receiver

communicate to one another via high frequency sonic signals.

23. The system of claim 15 wherein said fransaction hub further comprises a data

entry terminal connected to said hub transmitter such that said electronic funds balance stored in said data storage structure may be increased or decreased by an amount entered

at said data entry terminal.

24. The system of claim 15 wherein said fransaction hub further comprises a

currency handler connected to said hub transmitter such that said electronic funds

amount inserted into or dispensed from said currency handler.

25. The system of claim 15 wherein said transaction hub further comprises an

automatic teller machine linked to a bank server, said automatic teller machine

deposited to said bank server via said automatic teller machine.

26. A method for transmitting and recording the transfer of electronic funds to a

payment acceptor, comprising:

providing a personal data unit including a microprocessor having a

readable/writable/rewritable data storage structure, and a data transmitter connected to

said microprocessor;

providing a transaction node including a node transmitter, said transaction node

in communication with said payment acceptor; storing at least an electronic funds balance at said data storage structure;

said data transmitter transmitting a signal representing a portion or all of said

electronic funds balance to said node receiver at said transaction node;

said transaction node communicating receipt of electronic funds to said payment

acceptor upon receipt of said signal; said microprocessor updating the electronic funds balance stored in said data

storage structure as said data transmitter transmits said signal; and

said payment acceptor debiting or crediting the electronic funds received at said

transaction node in exchange for goods or services.

27. The method of claim 26 further comprising providing in said personal data unit

an input receiver connected to said microprocessor.

28. The method of claim 27 further comprising:

providing in said transaction node a node transmitter communicating with said

payment acceptor; and

said node transmitter transmitting a signal to said input receiver to increase or

decrease the electronic funds balance stored in said data storage structure by a selected

quantity.

29. The method of claim 27 further comprising:

providing a transaction hub including a hub transmitter communicating with said

input receiver; and transmitting a signal from said hub transmitter to said input receiver to increase

or decrease the electronic funds balance stored in said data storage structure by a

selected quantity.

30. The method of claim 29 further comprising: providing in said transaction hub a data entry terminal connected to said hub transmitter;

exchanging cash or credit for electronic funds;

entering at said data entry terminal the quantity of cash or credit exchanged; and

transmitting a signal from said hub transmitter to increase said electronic funds

balance stored in said data storage structure by an amount entered at said data entry

terminal.

31. The method of claim 30 further comprising: redeeming a portion or all of said electronic funds balance stored at said data storage structure; and

the microprocessor decreasing said electronics funds balance stored in said data

storage structure by the amount redeemed.

32. The method of claim 29 further comprising:

providing in said transaction hub a currency handler connected to said hub

transmitter; exchanging currency for electronic funds by inserting currency into said currency

handler; and transmitting a signal from said hub transmitter to increase said electronic funds balance stored in said data storage structure by an amount inserted into or dispensed

from said currency handler.

33. The method of claim 32 further comprising:

redeeming a portion or all of said elecfronic funds balance stored at said data

storage structure;

dispensing currency from said currency handler in the amount redeemed; and

storage structure by the amount redeemed.

34. The method of claim 29 further comprising:

providing in said transaction hub an automatic teller machine linked to a bank

server, said automatic teller machine connected to said hub transmitter;

withdrawing or depositing to said bank server a selected amount; and

transmitting a signal from said hub transmitter to increase or decrease said

elecfronic funds balance stored in said data storage structure by the selected amount

withdrawn from or deposited to said bank server via said automatic teller machine.

35. The method of claim 29 further comprising said transaction hub encrypting said

signal to increase or decrease said electronic funds balance prior to transmission by said

hub transmitter.

36. The method of claim 26 further comprising:

providing in said personal data unit a display; and

displaying at said display the electronic funds balance stored in said data storage

structure.

37. The method of claim 26 further comprising:

providing in said personal data unit an input actuator; and

selecting a portion of said electronic funds balance stored in said data storage

structure for transfer using said input actuator.

38. The method of claim 26 wherein said data transmitter and said node receiver

communicate to one another via mutual induction.

39. The method of claim 26 wherein said data transmitter and said node receiver

communicate to one another via infrared signals.

40. The method of claim 26 wherein said data transmitter and said node receiver

communicate to one another via high frequency sonic signals.

41. The method of claim 26 further comprising:

providing a remote transaction and information database communicating with

said transaction node;

assigning a unit identifier to said personal data unit;

storing said unit identifier at said fransaction and information database;

storing said unit identifier at said data storage structure;

said data fransmitter transmitting said unit identifier to said node receiver; and said fransaction node communicating the quantity of electronic funds received

and said unit identifier to said transaction and information database.

42. The method of claim 41 further comprising:

providing an identity validator in said transaction node;

storing identity validation data at said transaction and information database;

inputting identity input at said identity validator;

comparing said identity input with said stored identity validation data; and

said payment acceptor receiving said electronic funds only if the identity input

matches the identity validation data.

43. The method of claim 42 wherein said identity validation data include a personal

identification number.

44. The method of claim 42 wherein said identity validation data include biomefric

data.

45. The method of claim 41 further comprising:

storing at said transaction and information database a status associated with each

unit identifier, said status indicating whether said personal data unit associated with said

unit identifier is active or deactivated; upon receipt of a unit identifier, checking the status associated with said received

unit identifier; and

said payment acceptor receiving said electronic funds only if said status indicates said personal data unit is active.

46. The method of claim 26 further comprising printing a record of the electronic

funds received at said transaction node.

47. The method of claim 26 further comprising said microprocessor encrypting said

signal representing a portion or all of said electronic funds balance prior to transmission

by said data transmitter.

48. The method of claim 26 further comprising:

said data storage structure storing a defined deactivation time;

said microprocessor tracking the time; and

upon reaching the defined deactivation time, said microprocessor preventing the

transmission of elecfronic funds from said personal data unit.

49. The method of claim 41 further comprising said data storage structure being pre¬

loaded with an electronic funds balance prior to issuance to a user, said transaction and

information database storing no personal user information.