Method, system and apparatus for the establishment of a virtual banking environment in a merchant venue while increasing the deposit-based assets of optionally interfaced traditional banking institutions subject to fractional-reserve banking

Abstract

A system, method and associated apparatus for establishing virtual banking in a merchant venue or syndication of merchants to a consumer while optionally increasing the deposit-based assets of a related traditional banking institution, having a consumer portable device for containment of currency amounts linked to the consumer's account and enabled to perform commercial transactions at the direction of the consumer that affect the balance of the consumer's account, which consumer portable device also displays balance and transactional information; a node device for containment of currency amounts accurately reflecting the consumer's account and optionally associated with a captive account at the banking institution and enabled to perform commercial transactions that affect the balance of the consumer's account in accordance with instructions received from the consumer portable device, which node device also optionally provides for balance, statements, transactional information, and profiling of the consumer's transactional activities; an interface between the portable device and the node device for communication therebetween to accurately affect commercial transactions between the two; transacting at least one commercial transaction of the commercial transactions between the two devices; and if there is an optionally related captive account at a financial institution, accurately communicating the transaction to the banking institution such that the balance of said captive account is properly maintained in accordance with the at least one commercial transaction. The commercial transactions also include credit, debit, ATM, money transfers and the like.

1 . A system for establishing a virtual banking environment in a merchant venue to a consumer with a consumer's account while optionally increasing the deposit-based assets of a related traditional banking institution having a captive account therein for fractional-reserve banking at the banking institution, comprising:
 (a) a consumer portable device for containment of currency amounts linked to the consumer's account and enabled to perform commercial transactions at the direction of the consumer that affect the balance of the consumer's account, which consumer portable device also displays balance and transactional information;   (b) a node device for containment of currency amounts accurately reflecting the consumer's account and optionally associated with a captive account at the banking institution and enabled to perform commercial transactions that affect the balance of the consumer's account in accordance with instructions received from the consumer portable device, which node device also optionally provides for balance, statements, transactional information, and profiling of the consumer's transactional activities;   (c) an interface between said portable device and said node device for communication therebetween to accurately affect commercial transactions between the two;   (d) transacting at least one commercial transaction of said commercial transactions between the two devices; and   (e) if there is an optionally related captive account at a financial institution, accurately communicating the transaction to the banking institution such that the balance of said captive account is properly maintained in accordance with the at least one commercial transaction.   
   
   
       2 . The system of  claim 1 , wherein said commercial transactions are selected from the group consisting of general spending and purchases, government benefits, check cashing, child support payments and receipts, credit functions, savings functions, insurance functions, ATM functions, money transfers, travelers' checks, electronic and paper check writing, employee related functions, miscellaneous functions, fractional currency deposits and withdrawals, and combinations thereof. 
   
   
       3 . The system of  claim 1 , wherein the accounts comprise fractional currency. 
   
   
       4 . The system of  claim 1 , wherein the portable device comprises a microprocessor, display means for displaying said balance and transactional information, and communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and wireless communication means for optional communication with the banking institution and direct communication with the node device. 
   
   
       5 . The system of  claim 1 , wherein the portable device further comprises security means for ensuring the accuracy of the transaction and operators of the respective portable and node devices. 
   
   
       6 . The system of  claim 1 , wherein the node device comprises a microprocessor, display means for displaying said balance and transactional information, communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and communication means for communicating with the banking institution and portable device. 
   
   
       7 . The system of  claim 1 , wherein a consumer receives from the merchant a portable device with a predetermined, prepaid amount, which is utilizable solely at the merchant's facility. 
   
   
       8 . The system of  claim 1 , further comprising the steps of:
 (a) receiving a check from a consumer;   (b) cashing the check by adding the funds from the check to the consumer account.   
   
   
       9 . The system of  claim 1 , further comprising inter-bank means wherein a portion of the money represented by the portable device is interchangeable at another bank via an ATM network with another merchant. 
   
   
       10 . A method for increasing the asset base of a banking institution having a merchant account captive therein for fractional-reserve banking, comprising:
 (a) encrypting in a consumer portable device currency amounts linked to a consumer account captive at the banking institution;   (b) encrypting in a node device currency amounts linked to the merchant account at the banking institution;   (c) enabling the performance of commercial transactions wherein one account is debited a specific amount and the second account is credited that amount in accordance with a commercial transaction;   (c) communicating in an encrypted manner between said portable device and said node device for communication therebetween to accurately affect the commercial transaction between the two that comprises a credit to one and a debit to the other in accordance with the specific amount;   (d) transacting a commercial transaction between the two devices such that one of the accounts is debited for the transaction said specific amount and the other account is credited said specific amount commensurate with the commercial transaction; and   (e) communicating the transaction to the banking institution such that the balances of each respective account are properly credited and debited in accordance with the commercial transaction.   
   
   
       11 . The method of  claim 10 , wherein the commercial transaction is selected from the group consisting of general spending and purchases, government benefits, check cashing, child support payments and receipts, credit functions, savings functions, insurance functions, ATM functions, money transfers, travelers' checks, electronic and paper check writing, employee related functions, miscellaneous functions, fractional currency deposits and withdrawals, and combinations thereof. 
   
   
       12 . The method of  claim 10 , wherein the accounts comprise fractional currency. 
   
   
       13 . The method of  claim 10 , further comprising the steps of:
 (a) receiving a check from a consumer;   (b) cashing the check by adding the funds from the check to the consumer account.   
   
   
       14 . The method of  claim 10 , further comprising inter-bank means wherein a portion of the money represented by the portable device is interchangeable at another bank via an ATM network with another merchant. 
   
   
       15 . An apparatus for increasing the asset base of a banking institution having a first and second account captive therein for fractional-reserve banking, comprising:
 (a) portable means for encrypted containment of currency amounts linked to the first account at the banking institution and enabled to perform commercial transactions that affect the balance of the first account;   (b) node device means for encrypted containment of currency amounts linked to the second account at the banking institution and enabled to perform commercial transactions that affect the balance of the second account;   (c) encrypted interface means between said portable device means and said node device means for communication therebetween to accurately affect a commercial transaction between the two that comprises a credit to one and a debit to the other;   (d) such that by transacting a commercial transaction between the two device means one of the accounts is debited for the transaction a specific amount and the other account is credited said specific amount debited commensurate with the commercial transaction; and   (e) communicating means for communicating the transaction to the banking institution such that the balances of each respective account are properly credited and debited in accordance with the commercial transaction.   
   
   
       16 . The apparatus of  claim 15 , wherein the commercial transaction is selected from the group consisting of general spending and purchases, government benefits, check cashing, child support payments and receipts, credit functions, savings functions, insurance functions, ATM functions, money transfers, travelers' checks, electronic and paper check writing, employee related functions, miscellaneous functions, fractional currency deposits and withdrawals, and combinations thereof. 
   
   
       17 . The apparatus of  claim 15 , wherein the accounts comprise fractional currency. 
   
   
       18 . The apparatus of  claim 15 , wherein the portable device means comprises a microprocessor, display means for displaying said balance and transactional information, communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and wireless communication means for communicating with the institution (which may not be subject to Regulation D banking) and node device. 
   
   
       19 . The apparatus of  claim 15 , wherein the portable device means further comprises security means for ensuring the accuracy of the transaction and operators of the respective portable and node devices. 
   
   
       20 . The apparatus of  claim 15 , wherein the node device means comprises a microprocessor, display means for displaying said balance and communications with an operator of the device, operator interface means for entering and receiving transaction related and balance related data, power, memory, and communication means for communicating with the banking institution and portable device.