Digital cash and method of commerce

In a broad sense, the present invention relates to the field of e-commerce, and more particularly to the field of e-commerce transmission medium and the medium and methods used to conduct online commerce transactions.

BACKGROUND OF THE INVENTION

In today's economy, much of the value is in the form of electronic balances recorded in government records, corresponding to the value of accounts opened on behalf of consumers. Usually the transmission of such economic value is done electronically. Electronic invoices can be either debit or credit. Sometimes these electronic balances are matched by physical objects such as bank checks, debit cards and credit cards. Credit and debit accounts have been used extensively for decades, but they have a number of shortcomings that are increasingly beginning to hamper the full development of the economic potential of the digital economy.

A small but rapidly growing share of global trade is conducted via the Internet. Currency and coins are a very impractical trading tool in this area of ​​the economy. Credit and debit accounts have also been used for online trading, but the cost of opening, operating and maintaining such accounts has limited their usefulness in digital commerce, especially for low value transactions. In addition, access to a credit or debit account requires the user to be authenticated in a confidential manner in order to prevent fraud. As a result, there is almost no room for buyer privacy in such transactions. In addition, there is a general reluctance in the market to send credit and debit account information over the Internet due to the inevitable internet connection insecurity. These limitations have led inventors to develop alternative ways to exchange data for online transactions.

United States Patents 5,590,197, issued June 1996. December 31, 1998 to Chen and Others, 5,753,899 May 19 Gomm et al., And 5,857,079 issued on 1999. Since January 5, 2007, has been protecting alternative cash transfer systems to support digital age commerce. These systems use special smart cards, that is, debit or credit cards with a small microprocessor containing memory. While these systems enhance the standard debit / credit card system with greater flexibility and security, they still have the same drawbacks - high costs and low user privacy, which are certainly not enough for online shopping.

Similarly, systems patented in the United States - Patent 5,778,737, issued December 1998. May 5 Daggar, and 5,815,657 issued 1998. September 29 For Williams and others - acts like an electronic wallet. An electronic wallet is a handheld device with multiple digital data interfaces and is used to manage billing information and transact electronically. However, these systems are also insufficient for online transactions, due to cost and privacy constraints.

In the United States, 1998 October 6 Kelmer issued a patent 5,816,917 to a gaming device that uses a floppy disk or a special card, which is available from the manufacturer and has a pre-credit balance for use with the gaming device. The use of this device has been restricted by the manufacturer. In addition, there is a high potential for fraud in the use of such a device because the economic value associated with this device is encoded in the device itself, which is used by the user.

In the United States, 1998 January 20 Christensen and others issued a patent for 5,710,886 coupon distribution systems using a floppy disk or CD-ROM program. To use this system, the user needs a telephone to contact a telephone sales representative before the program prints a voucher with commercial value. The use of such systems in the digital environment is very limited.

In the United States, 1998 September 1 Manasse has issued 5,802,497 patents for a computer-aided trading method where an electronic receipt is issued by a broker and / or seller. This receipt is used online and provides products or services to the consumer. Although this method is for the digital environment, it is based on the use of electronic script for data transmission. The electronic receipt must be stored on the buyer's computer and transmitted over the network, with the risk that the receipt may be deleted or incorrectly scanned.

THE SUBSTANCE OF THE INVENTION

The present invention is used in a transmission medium with an optical disc and data encoded on this optical disc and having a monetary value. The present invention further comprises a method of transacting the steps of: assigning a first monetary value to an optical disc by an operator; the buyer transmits the data corresponding to the price and the optical disc to the operator; the operator carries out the approval for the buyer; the buyer sends the confirmation to the seller; the seller verifies the authenticity of the confirmation with the operator; the seller transfers the item to the buyer.

BRIEF DESCRIPTION OF THE DRAWING

FIG. 1 shows a CD used as a transfer medium according to the present invention.

Figure 2 illustrates an e-commerce method according to the present invention.

Figures 3-9 show a buyer's computer screen and how it looks in an electronic transaction according to the present invention:

Fig.3 - the buyer visits a web site where he accepts electronic payment, for example a computer game site;

Fig.4 - the buyer decides to order and chooses the electronic payment method;

Fig.5 - Payment process begins

Fig.6 - the buyer enters the security code from the packaging of his CD-CASH disc, he inserts the CD into the regular CD-ROM driver on the PC;

Fig.7 - shows the buyer the fair value of the CD and asks for final confirmation of payment;

FIG. 8 - transfer complete - the value of the CD has dropped and the amount of money is being credited to the website owners account;

FIG. 9 - The buyer's freezing is done, in the example, the buyer paid $ 2 to the seller for 10 games of the popular compact game.

FIG. Figure 10-12 shows the buyer's computer screen and what it looks like when the buyer checks the value of the CD shown in Fig.1:

FIG. 10 - Two screens showing how the buyer can check the value of the CD-CACH disc;

FIG. 11 - the buyer is asked to enter the security code and insert the CD-CACH disc into the PC driver;

FIG. 12 - Displays the true value of the CD.

Fig.13 shows the buyer's computer screen and what it looks like when the buyer shows the retrospective value of the CD shown in Fig.1.

DETAILED DESCRIPTION OF THE INVENTION

The inventors have created a new way of trading online, using a unique, but known in the digital environment, transmission medium. The data transmission system of the present invention is shown in Figure 1 and is an optical disk drive CD 1 encoding data having a monetary value. Burning data to optical disc 1 and reading data from optical disc 1 are well known to those skilled in the art of optical data storage. As shown in Figure 1, the optical disc 1 is named CD CASH, a non-registered trademark used by the present inventor to identify certain aspects of the present invention.

Fig. 2 shows in what way the optical disk 1 shown in Figs. 1, a trade transaction is made in the network. The network may be in any public or private electronic communication system, such as a telephone system, a satellite network or the Internet. Figure 2 illustrates the sequence of communication by which Seller 2, Buyer 3 and Operator 4 can operate. Seller 2 can be any person or organization wishing to supply goods or services. Buyer 3 can be any person or organization that wants to obtain an item from a seller by transacting online. The function of Operator 4 as a third party is to facilitate the transaction between Seller 2 and Buyer 3.

The first step A of this trading method is done by Operator 4, which issues an optical disc 1 with encrypted data having a monetary value to Buyer 3, when Buyer 3 transfers money to Operator B. This transaction can be done in the mail system, or better by cash, when buyer 3 pays to agent 4 or pays at his point of sale. Since this transaction is cash, there is no need to disclose the identity of the buyer.

Prior to the first step A - the optical disc 1 is handed over to the buyer - the operator 4 assigns a binding monetary value to the optical disc 1. The optical disc 1 is encoded with computer readable data corresponding to this monetary value and / or the optical disc 1 identification code. Operator 4 may use a data processing machine, such as a computer 5, for storing information, to map data encoded on optical disc 1 to a monetary value. As shown in Fig. 1, optical disc 1 is usually labeled with this initial monetary value, such as $ 20. The optical disc 1 may also have a visible identification number 6. The identification number 6 may initially be hidden under the package of the optical disc 1 or hidden under a layer of a scrubbing tape, which is often used in various instant lotteries. When optical disc 1 has identification number 6, the original buyer 3 of optical disc 1 may be confident that the value of optical disc 1 corresponds to the initial value indicated on optical disc 1. If the identification number 6 is visible at the time of sale, the value of optical disc 1 is not less than its initial specified value.

Once the buyer receives the optical disc, the buyer in step 3 C shown in Figs. 2, can obtain information about the goods offered by seller 2 by contacting him through the network. Seller 2 can transmit Buyer 3 displayed in step D on screen. The order form may indicate the item available for purchase and its price. In step D, it is also possible to transmit the software component (not shown) received by vendor 2 from operator 4. This software component is used for the commercial transmission process. The program component instructs the buyer 3 to insert optical disc 1 into the CD driver connected to the buyer's computer and to enter the identification number 6 indicated on the optical disc 1. The program component on the buyer's computer 3 then pre-checks that optical disc 1 is that disk, issued by operator 4 and whether the identification number 6 entered by buyer 3 is in the correct format. The program component on the buyer's computer may be transferred to the buyer 3 together with the optical disc 10.

In step e, the program component on the buyer's computer sends a unique encoded identifier from the optical disc 1 to the operator 4, along with the identification number 6 and the code number obtained from the order form transmitted by the seller 2. Operator 4 checks that optical disc 1 has sufficient monetary value to cover the price of the item being purchased and returns, in step F, a validated code or other form of validation to a program component on the buyer's computer. The buyer 3 then confirms the price and in step G passes the confirmation to the seller 2.

To avoid transaction fraud, the vendor may send confirmation and additional encoded information unique to the optical disc 1, operator 4, for its final approval, in step 2, H. The operator then credits vendor 2 to the account specified and debits the account associated with CD 1, and in step J forwards confirmation to vendor 2. Then vendor 2 hands the item to the buyer and completes the transaction. Each of the steps described above can be performed electronically over a network, such as the Internet. Although the operator, buyer and seller of Fig. 1 are shown as three separate persons, the buyer and the seller can themselves use the present invention and the seller 2 assumes the functions of operator 4. This option is very economically viable when the seller's sales are large.

Similarly, the vendor 2 shown in Fig. 1 may perform additional transactions where the vendor 2 creates its own transmission medium on optical discs with encrypted data having a monetary value. Dealer 2 will then be able to accept transactions via the operator's transfer medium or his own transfer medium.^v · ·

This system can be used for high and low value transactions. In the case of low value transactions, the cost of credit losses and the processing of credit applications make the use of credit and debit cards uneconomical. For example, the economic value of selling a single page of copyrighted material is only a fraction of a penny. Because of the high cost of known deals, these types of deals are not yet evolving in our digital economy. Since Buyer 3 pays in advance for the monetary value of CD 1, there is no credit loss in the system of the present invention. In addition, processing credit applications costs nothing, and unused CD 1 balance helps the operator save time. This residue subsequently reduces the cost of installing and operating the present invention. FIG. 2 The system shown below allows you to benefit even with transactions below $ 1.

Another advantage of using an optical storage device for data transmission is that additional data can be entered into the optical disk 1. For example, market information. Buyer 3 can access this market information when optical disc 1 is used on buyer 3's computer. In order to induce the buyer 3 to read the market information, the optical disc 1 may encode data on the second monetary value that the buyer 3 can use. In addition to the use of the optical disc 1 for the first product from the seller 2, as shown in Figs. 2, the buyer 3 may be given a second value or item when the buyer starts reading market information. For example, a second monetary value as a discount or discount may be given to buyer 3 as soon as buyer 3 makes use of some computer-readable code contained on the optical disc 1. The data stored on optical disc 1 may include a list of advertisers wishing to provide a discount or prize to purchaser 3 using optical disc 1. The value of such advertising would facilitate the introduction of this e-commerce market.

Buyer 3 or another person with optical disc 1 can use the internet to determine the current value of optical disc 1. The software component encoded on the optical disc 1 can be used to communicate with the operator 4 via the Internet and display the value of the optical disc 1 on the buyer's computer 3. This is an important process because the initial monetary value given to the optical disc 1 can be changed by the operator 4 if the transaction has taken place. The operator may give the optical disk a new monetary value after a commercial transaction. The new monetary value can be a function of the initial monetary value and the price of the commodity acquired in the previous transaction. The second monetary value may simply be the first monetary value minus the price. In addition, the operator 4 may again reduce the monetary value by deducting the user fee payable from the value of the optical disc 1 to cover transaction costs. On the other hand, the relationship between the initial monetary value and the second monetary value may be an additional function, that is, the second monetary value may be higher than the first monetary value when the buyer 3 pays for the optical disc 1. he can replenish the disc via the Internet. Similarly, the value of optical disc 1 may be increased after the buyer 3 has access to market information encoded on optical disc 1.

Operator 4 can create a web page where buyer 3 and seller 2 can use other services. Not only will the buyer 3 be able to check the current value of optical disc 1 as described above, but also how the funds of a particular optical disc 1 have been spent. In addition, such information may also be stored on the buyer's 3 computer. Buyer 3 will be notified when optical disc 1 is used on more than one computer, informing them that the information stored on the computer may be inaccurate. Operator 4's website may contain links to other vendors 2 that accept this form of e-commerce payment.

The optical disc 1 may contain data for other types of information, such as music or software. The use of data with monetary value in combination with data on other consumer products enables the introduction of this form of e-commerce at a lower start-up cost. In addition, the monetary value on optical disc 1, together with other consumer products, may give a discount on the purchase of a consumer product. It is the electronic equivalent of a discount coupon for consumer goods.

Optical disk 1 may contain information encoded in multiple locations on the disk to reduce the risk of physical damage to the disk. If the information cannot be retrieved from its original disk space, the software component controlling the validation process will attempt to retrieve the data from another segment of the disk. A limited number of attempts can be made over a period of time to prevent users from guessing passwords . Other protection schemes can also be used to protect the system shown in Fig. 2. However, the maximum stimulus for a potential thief is limited by the initial value of optical disc 1. Since the initial value of Optical Drive 1 can be as little as $ 20 or less, there is little incentive for potential thieves to make fraudulent copies of the process. Because of this inherent security of the system and because buyer 3 has prepaid for the optical disc 1, vendors 2 may want to accept this form of payment. Currently, various forms of information are available on the Internet free of charge, since the economic value of such information is very low if you count it for each transaction. The data medium described here is very efficient and can be used for such small deals, driving a huge market that has so far been uneconomical to develop.

As with real money, there is no compensation for lost or missed money from optical disc 1. Optical drive 1 can only be valid for a limited period, such as six months, in order to simplify financial reporting for operator 4 and to ensure that promotional information encoded in optical drive 1 is up to date. In addition, the buyer 3 may choose to limit the use of the optical disk 1. For example, buyer 3 may contact operator 4 to request a password for accessing a particular optical drive 1. Similarly, buyer 3 may restrict the classes of websites to which payment may be sent. For example, if he wants the optical disc 1 made available to a child to prevent the purchase of products or services from adult-oriented websites.

It is recommended that the online trading system described in Figs. 2, supported by vendor 2. Operator 4 may charge a commission or usage fee on the amount of each payment credited to vendor 2's credit account. Because CD 1 is prepaid and has the economic benefits described above, it is likely that any commissions or usage fees to the seller will be less than what he currently pays for credit card transactions. In addition, the money available to the operator from an unused or lost optical disc 1 further reduces the costs that the seller would have to bear 2.

FIG. Figure 3-9 shows what a screen of a buyer 3 computer looks like when it transacts online in the manner shown in Figure 2. Figure 3 illustrates a visit by a buyer 3 to a website that can be paid for by the method of the present invention. This is indicated by the on-screen logo CD-CASH. One of the features of this site - seller 2 allows buyer 3 to see Figs. 4 shows a list of games available for purchase online. On this screen, buyer 3 can choose the game, its number of rounds and the method of payment, including CD-CASH. Upon completion of the order, the software component received from the seller 2 asks the buyer 3 to confirm the payment method and price as shown in Figs. 5. Upon receipt of such confirmation, the purchaser 3 is asked to enter the identification code 6 from the optical disc 1 as shown in Figs. 6, and insert the optical disc 1 into the computer. The identification code 6 and other data from the optical disc 1 are transmitted to the operator 4. The operator 4 confirms that the current value of the optical disc is greater than the price of the item to be purchased, and the buyer 3 is asked to confirm the purchase. 7. Upon confirming the payment as shown in Fig. 7, the buyer 3 forwards to the seller 2 the confirmation received from the operator 4 described in step G of Fig. 2. At the end of the transaction as shown in Fig.8, buyer 3 can play the purchased game as shown in Fig. 8. 9th

FIG. 10 shows how buyer 3 can check the current monetary value of optical disc 1. FIG. 10 illustrates operator 4's web site where buyer 3 can take advantage of several services including value check of optical drive 1, refill of optical drive 1, request for more information, and links to other sites owned by vendors 2 that accept this form of payment. Fig. 11 shows an image that the buyer 3 sees to check the value of the optical disk 1. Here, the purchaser 3 is required to enter the identification code 6 assigned to the optical disc 1 and insert the optical disc 1 into the computer driver. FIG. 12 shows a response view of operator 4 showing the current value of optical disk 1.

FIG. 13 illustrates how operator 4 can provide cost data from a particular optical disc 1 on a buyer 3 computer.

DEFINITION OF INVENTION