AU8924901A - Method for operating automatic teller machine and apparatus - Google Patents

Description

METHOD FOR OPERATING AUTOMATIC TELLER MACHINE AND

APPARATUS

Field of the Invention The present invention is concerned with a method for providing an automatic teller machine/cash dispenser (ATM/CD) .service and with an apparatus for carrying out the method.

Background to the Invention Traditionally financial institutions such as banks and credit societies have been the only bodies that have deployed and operated ATM/CDs. Due to the fact that such financial institutions operate with significant overheads ATM/CDs have typically only been installed in locations attracting a high rate of transactions. As a result many potential locations, particularly in rural areas, are significantly under-serviced.

In the past attempts have been made by merchants, such as small *businesses, to operate ATM/CDs independent of financial institutions. In order to make independent operation commercially viable the small business 20 operators must charge a convenience fee. The most straightforward way of collecting a convenience fee is as follows. Initially a customer requests $X from the ATM/CD. The customer's identity is verified by reference to their bank issued security card and $X $T $C is deducted from the customer's account. Here $T is a transaction fee that is credited to the bank and $C is a 25 convenience fee that is credited to the business operating the ATM/CD. The amount of $X is transferred from the customer's account to an account of the merchant. The amount of $X is then dispensed to the customer in cash, preferably along with a receipt confirming the transaction and showing the balance of the customer's account.

One problem that is faced by small business operators in implementing the above scheme is that there has been considerable reluctance from financial institutions to transfer the amount of $C to the merchant's account. As a result there has been little financial incentive for small businesses to provide ATM/CDs.

It is an object of the present invention to overcome, or at least ameliorate, the above problems.

Summary of the Invention According to one aspect of the present invention there is provided a method for dispensing cash, to a customer by an automatic teller machine cash dispenser (ATM/CD) operated by a merchant, the method including the steps of: a) reading an identification card or device of the customer verifying the customer's identity; b) requesting that information as to an amount of cash to be dispensed to the customer be entered into the ATM/CD; c) collecting a convenience fee from the customer; d) dispensing cash to the customer.

Preferably the step of collecting a convenience fee from the customer includes deducting the convenience fee from cash dispensed in the dispensing step.

Alternatively the step of collecting a convenience fee may include requesting that the customer tender the convenience fee to the ATM/CD.

go 000 Preferably the method further includes the step of alerting the customer 20 that the convenience fee will be deducted.

.In one embodiment the value of the convenience fee is constant.

Alternatively the value of the convenience fee may be varied. For example the convenience fee may be increased on public holidays or outside of business hours. Another alternative is that the convenience fee be calculated as a percentage of the cash to be dispensed or according to a predetermined formula.

In order that the convenience fee may be less than the smallest """denomination bank note it is preferable that the method be practised with an ATM/CD equipped with a coin dispenser.

Preferably the method further includes the step of dispensing a coupon redeemable at a retail outlet to a customer of the ATM/CD.

The coupon may be printed on the reverse side of a transaction receipt.

According to a further aspect of the present invention there is provided an ATM/CD including: a programmable central processing unit coupled to; a program storage device for storing a software product; a security device reader for reading a customer's identification card or device; a data communications module for communicating with a remote financial institution data system; a data entry device facilitating entry of a cash amount by the customer and of an identification code; a cash dispenser for dispensing cash to the customer; wherein the program storage device contains a software product, executable by the central processing unit, the software product including instructions to collect a convenience fee from the customer.

In a preferred embodiment the instructions to collect a convenience fee from the customer include instructions to deduct the convenience fee from the cash amount entered by the customer.

Alternatively the ATM/CD may further include a cash receptacle for collecting the convenience fee prior to dispensing the cash amount.

Preferably the cash dispenser comprises a note dispenser and a coin o• dispenser.

20 Preferably the ATM/CD further includes a notification to the customer that the convenience fee will be deducted.

Conveniently the notification is made upon a display of the ATM/CD in accordance with instructions included in the software product.

It is desirable that the software contains instructions for printing shopper coupons by means of a printer incorporated into the ATM/CD.

l Brief Description of the Figures In order that this invention may be more readily understood and put into practical effect, reference will now be made to the accompanying drawings which illustrate typical preferred embodiments of the invention and wherein: Figure 1 is a block diagram of a system that is used in carrying out the present invention including an apparatus according to an embodiment of the present invention.

4 Figure 2 is a flowchart of a method according to an embodiment of the present invention.

Detailed Description of Preferred Embodiment With reference to Figure 1, a merchant 13 provides an ATM/CD 9 that, as is well known in the prior art, includes a central processing unit 3 which under control of a software product stored in program storage 1 controls and receives data from: a note dispenser 2; card reader 3; data entry module in the form of a keypad 5; display screen 7; data communications module 4; printer 14; cash receptacle 20; and coin-dispenser 8.

The operation of ATM/CD 9 is under control of CPU 3 in accordance with instructions coded into software product 19 and is typically as follows. A customer 10 presents his identity card 12 to card reader 3. The card reader reads the card, which is usually of the magnetic stripe variety as is well known, the display 7 then prompts the customer to enter their personal identification number (PIN) by means of keypad 5. Software product 19 contains instructions to check that the entered PIN matches details read from card 12. In the event that they do match the customer is then prompted to enter a transaction amount. The customer then enters an amount, for example $X into the keypad.

20 A request for transaction is then forwarded to financial institution 6 via data communications module 4. Financial institution 6 deducts from customer account 11. The amount of being a transaction fee, is taken by the financial institution and credited to the institution's transaction fee account 17. The amount of $X is forwarded to merchant 13, for example as a component of a monthly cheque 16 to the merchant. Alternatively the amount of $X may be credited to a service provider responsible for keeping the ATM/CD topped up with cash to dispense. Furthermore, rather than forwarding a cheque the amount of $X may be electronically credited to the merchant or cash service provider's account In contrast to the prior art methods of operation, the customer is not issued the amount of $X but rather is issued in coins and notes by note dispenser 2 and coin dispenser 8 respectively. Here $C is a convenience fee.

Printer 14 prints out a receipt confirming the transaction and the amount of the convenience fee. Accordingly, on each transaction the merchant accumulates a convenience fee of $C without recourse to the financial institution 6.

The ATM/CD 9 may bear a sign informing the customer that a convenience fee will be charged.

Alternatively software product 9 may include instructions for display 7 to inform the customer that the convenience fee will be deducted from the cash issued.

In the latter case software 19 may include instructions to vary the amount of the convenience fee depending on the hour or day of the transaction. For example, a higher convenience fee may be charged on Sundays or public holidays.

As an incentive to consumers to make use of the ATM/CD an arrangement may be in place with local merchants to issue coupons redeemable at local retail outlets to customers of the ATM/CD. In that case software product 19 may include instructions for printer 14 to print a coupon on the reverse side of a transaction receipt issued to customer It will be noted that cash receptacle 20 is not used according to the previously described operation of Figure 1. A method incorporating its use will be described with reference to Figure 2.

a Referring now to Figure 2 a method of operation of an ATM/CD according to a preferred embodiment of the invention will be explained. At box 20 21 the customer's identification is verified. At box 22 the customer is notified S.that a convenience fee will apply. At box 23 the customer is asked if he/she wishes to proceed. In the event that the customer does wish to proceed then at box 24 the customer is asked if he/she wishes to have the convenience fee deducted from the amount issued. If the client indicates that the convenience fee is not to be deducted then at box 26 the ATM/CD prompts for the amount of cash to be issued, exclusive of the deduction of the convenience fee, to be entered. At box 28 the applicable convenience fee $C is calculated. At box the ATM/CD checks, by means of its data communication link to a supporting financial institution's data system, if the customer has sufficient funds to cover the transaction. In the event that there are sufficient funds then at box 33 the customer is prompted to insert the necessary fee $C into the machine. In order to do this the machine is fitted with a cash receptacle module.

Once it is determined that the correct amount of cash has been tendered the requested amount of $X is dispensed at box 35. Then at box 36 the 6 ATM/CD instructs the remote financial institution's data system to finalise the transaction by transferring funds from the customer's account as required.

A receipt for the transaction is printed out for the customer at box 37.

As previously described the receipt may have printed on its reverse side a shopper coupon for presentation at a local retailer. Alternatively the coupon may be issued independently of the transaction receipt. The. transaction terminates at box 38 at which point the ATM/CD enters a waiting mode until the next customer applies to have cash dispensed.

Returning now to box 24, in the event that the customer indicates that the convenience fee be deducted from the amount issued then, at box 27, the customer is prompted to enter the amount to be dispensed inclusive of a deduction corresponding to the convenience fee. At box 29 the amount of the convenience fee, is calculated and a check is then performed at box 32 that the customer has sufficient funds in their account to cover the requested transaction.

In the event that there are sufficient funds then at box 34 the requested amount of $X minus the convenience fee of $C is dispensed. The method then S proceeds to boxes 36, 37 and 38 as previously described.

It will of course be realised that the above has been given only by way of :0.0 illustrative example of the invention and that all such modifications and variations thereto as would be apparent to persons skilled in the art are deemed to fall within the broad scope and ambit of the invention as set forth herein.

DATED THIS NINTH DAY OF NOVEMBER 2000

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AUSTRALIAN TELLER MACHINES PIV LTD 104 ,10 SBY A o PIZZEYS PATENT TRADE MARK ATTORNEYS