Browse Prior Art Database

Electronic Purse Currency Conversion

IP.com Disclosure Number: IPCOM000119086D
Original Publication Date: 1997-Nov-01
Included in the Prior Art Database: 2005-Apr-01
Document File: 2 page(s) / 31K

Publishing Venue

IBM

Related People

Bublitz, H: AUTHOR [+3]

Abstract

The electronic purse, typically a smart card loadable with funds from an Automatic Teller Machine (ATM), is an increasingly popular type of payment system. Normally, the funds will be converted into the currency of the country in which the card holder resides but, from time to time, for example when the holder is travelling, it is desirable to convert the contents of the purse to another currency.

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Electronic Purse Currency Conversion

      The electronic purse, typically a smart card loadable with
funds from an Automatic Teller Machine (ATM), is an increasingly
popular type of payment system.  Normally, the funds will be
converted into the  currency of the country in which the card holder
resides but, from time  to time, for example when the holder is
travelling, it is desirable to  convert the contents of the purse to
another currency.

      This is currently performed by issuing a command to the card
holding the electronic purse, in which the command includes the new
currency and a conversion factor from the existing currency.

      The problem with this is that the currency conversion rates
need to be available at all devices where currency conversion is
done.  The devices also need to be regulated and provide information
about currency conversions carried out in order to calculate fees.

      This problem may be simply yet effectively overcome by
combining three steps in order to perform a currency conversion:
  1.  Unload of electronic value from the purse to a pool account.
  2.  Conversion of currency at a bank or other foreign exchange
       agent.
  3.  Load purse with electronic value in a new currency.

      This process has the advantage that all conversions are
centralized, providing the essential features of normal currency
conversion transactions carried out in a bank.