GB2376124A

GB2376124A - Currency conversion machine

Info

Publication number: GB2376124A
Application number: GB0112465A
Authority: GB
Inventors: Yong Hock Lawrence Sim
Original assignee: Individual
Current assignee: Individual
Priority date: 2001-05-23
Filing date: 2001-05-23
Publication date: 2002-12-04
Also published as: WO2002095696A1; GB0112465D0

Abstract

A currency converter apparatus where the user deposits money of local currency in exchange for a portable token on which the amount deposited is written. The machine can also read an amount of another currency from a token issued by another currency conversion machine, convert the amount to the local currency and dispense the converted amount of cash in local currency. The token can be a magnetic card the data on which is preferably encrypted. The apparatus also allows denomination changes, between notes and coins, conversion of electronic cash to tokens and repayment of unused tokens.

Description

CURRENCY CONVERSION The present invention relates to currency conversion.

A visitor to a foreign country must pay for goods and services in the local currency of that country. Payment is made either using electronic means (for example a credit card) or using cash (notes and coins) of the local currency. Whilst it is common to pay large transactions, for example a hotel bill, using electronic means it is usually more convenient to pay smaller transactions in cash. There are instances in which cash must be used as it is not possible to pay electronically, for example taxi fares. Consequently, it is essential for a visitor to foreign country to have some cash in the local currency of that country.

A visitor may obtain cash in the currency of a foreign country from a bank or currency exchange bureau prior to arriving in the foreign country. The visitor may alternatively, or in addition, obtain cash from an automatic telling machine (ATM) in the foreign country provided that the ATM is part of a network which is affiliated to a bank at which the visitor holds an account.

The visitor will need sufficient cash in the local currency to cover his cash expenses. Given that the precise amount of the cash expenses cannot be known until the end of a visit, the visitor must estimate the expenses that will be incurred and convert an appropriate amount of money into the local currency. The visitor will invariably be left with an excess amount of local currency when leaving the foreign country.

It is common for a visitor to convert foreign currency to his home currency upon arriving home. This is usually done at a bank or dedicated currency exchange bureau. However, it is often the case that a bank or currency exchange bureau will not accept currency of low denominations, especially coins, for conversion to the visitor's home currency. Furthermore, the commission charged by a bank or currency exchange bureau typically includes a minimum fee which may be a sizeable portion,

or even in excess of, the amount of foreign currency to be converted. This may render the conversion uneconomical. Some currencies are not freely traded internationally, and cannot be converted to a different currency outside of the country of issue.

Since it is often uneconomical, inconvenient, and occasionally impossible to convert a small amount of foreign currency to a local currency, it is very common for a visitor to retain a small amount of a foreign currency upon returning home from a foreign country. Often the currency is stored at the visitor's home with the intention of using the currency upon returning to the foreign country. Usually the currency is forgotten and is never used.

The above situation causes two problems. The first problem is that the foreign currency which is retained by the visitor is effectively money lost by the visitor, since he will invariably not use it in the future. The second problem is that the foreign currency is taken out of circulation from the foreign country, necessitating the production of new currency. In the case of coins this problem is especially significant because the cost of producing new coins is high, and indeed in some cases the value of the metal comprising a coin may be a substantial fraction of the face value of the coin.

The above problem is exacerbated when a visitor travels to more than one country prior to returning home. In this situation the visitor may return home with several foreign currencies which it would not be economical to exchange for his home currency.

It is an object of the present invention to provide currency conversion which overcomes or substantially mitigates the above disadvantage.

According to the invention there is provided a currency conversion apparatus comprising means for receiving and counting cash of a first currency input by a user, means for writing onto a portable token the amount of cash input by the user, and means for outputting the token for retention by the user, the currency conversion

apparatus further comprising means for receiving a token onto which a cash amount of a second currency has been written by a currency conversion apparatus, means for reading from the token the amount of the second currency, means for converting the amount of the second currency to an amount of the first currency, and means for outputting cash to the amount of the first currency.

Suitably, the writing means writes onto the token in a format which can be read electronically Suitably, the writing means writes onto a magnetic element provided on the token. The magnetic element may be a magnetic strip.

Suitably, in addition to the amount of cash paid in, the writing means is arranged to write additional data onto the token.

Suitably, the apparatus is provided with encryption means which encrypts the amount of cash paid in before it is written onto the token.

Suitably, the encryption means encrypts the additional data before it is written onto the token.

Suitably, the apparatus is arranged to retain the token once cash has been output to the amount of the first currency, and to reuse the token for a subsequent transaction.

Suitably, the token is a plastic card.

Suitably, the converting means is provided with a pre-set exchange rate for converting the amount of the second currency to the amount of the first currency.

Suitably, the pre-set exchange rate includes a commission.

Suitably, the apparatus is provided with input means which allow a local operator of the apparatus to adjust the pre-set exchange rate.

Suitably, the apparatus is provided with input means which allow remote adjustment of the pre-set exchange rate.

Suitably, the input means is connected to a remote operator via the Internet or via a direct telephone link.

Suitably, the apparatus is provided with output means to output operational data to the remote operator.

Suitably, the writing means is arranged to write onto the token the date upon which the token is output from the apparatus.

Suitably, the apparatus is provided with date comparison means for comparing the date upon which a token is received at the receiving means with the date upon which that token was output, the apparatus being arranged to refrain from outputting cash if the difference between the dates is greater than a pre-set period.

Suitably, the apparatus is connected to an automatic telling apparatus (ATM) bank network such that money may be transferred from a user's bank account instead of the user inputting cash into the apparatus.

Suitably, at the request of the user, the apparatus is arranged to receive cash of the first currency and immediately output cash of the first currency in different denominations.

Suitably, the first currency is the local currency of the country in which the apparatus is located.

Suitably, the second currency is a currency of a country other than the country in which the apparatus is located.

The invention also provides a currency conversion token for use in connection with the currency conversion apparatus referred to above The invention also provides a method of currency conversion comprising receiving and counting cash of a first currency input by a user, writing onto a portable token the amount of cash input by the user, and outputting the token for retention by the user, the currency conversion method further comprising receiving a token onto which a cash amount of a second currency has been written by a currency conversion apparatus, reading from the token the amount of the second currency, converting the amount of the second currency to an amount of the first currency, and outputting cash to the amount of the first currency.

A specific embodiment of the invention will now be described by way of example, with reference to the accompanying figures in which: Figure 1 is a perspective view of a currency conversion apparatus according to the invention; and Figure 2 is a pair of flow charts which illustrate the operation of the apparatus shown in figure 1.

A currency conversion system comprises a series of machines located in different countries, preferably at points of arrival or departure at each country.

Typically machines are located in airports, ports and railway stations.

Each machine accepts cash in the local currency of the country in which that machine is located. The amount and type of currency paid in by a user is recorded electronically on the card together with the place, date and time that the currency was paid in. The card is output from the machine and is retained by the user.

The user carries the card back to his home country, or to the next country which he visits. Upon arriving at that country the visitor inputs the card into a conveniently located currency conversion machine. The currency conversion machine reads the card, converts the amount read from the card into the local currency using a pre-set exchange rate, and then outputs cash of the local currency to the value of the converted amount. The card is retained by the machine and reused for a subsequent transaction.

Since each machine allows local currency to be paid in or withdrawn, the machine is self sufficient in the sense that withdrawals are taken from cash which has been paid in to the machine.

The system is advantageous because it allows a visitor to dispose of his small denomination local currency before leaving a country, converting the currency to a sum held on a conveniently carried card, and allows the visitor to obtain local currency upon arrival at his destination. It is especially useful to have some small denomination currency, as provided by the machine, upon arrival in a country since this may be required for travel from a point of arrival, for example by taxi or bus.

A further advantage of the system is that local currency is retained in circulation in the country of issue. This is advantageous to governments, since the amount of currency that needs to be replaced is reduced.

The currency conversion system is advantageous to an operator of the currency exchange system, since it avoids the need to transfer currency between countries.

A further advantage of the system is that it does not require a user of the system to be a member of a specific bank, or indeed to have a bank account at all. The user is not required to remember a password or personal identification number in order to use the system.

An example of a currency exchange machine is shown in figure 1. The machine comprises receptors for cash (coins and notes) 1, a receptor 2 for receiving a card storing electronically encoded data, a display 3 and an output 4 for outputting currency and optionally outputs receipts.

A user selects a'cash-in'button at the display 3 in order to pay cash of the local currency into the machine. The cash is paid into the coin and note receptors 1, and the value of the cash paid in is determined and shown on the display 3. The user then selects the'cash-in'button again, whereupon a card is output at the slot 2. The card (hereafter referred to as a stored value card) is a plastic card provided with a magnetic element onto which data can be electronically written and read. The data indicates the amount of cash paid in, the currency type, and the place, date and time that the currency was paid in. The user may cancel the transaction by pressing a 'cancel'button instead of the'cash-in'button, whereupon the deposited cash is returned.

A user wishing to convert a stored value card to local currency selects a'cashout'button at the display 3, of the machine shown in figure 1, and inserts the stored value card into the slot 2. The amount of currency indicated by the data on the stored value card is converted into the local denomination according to a pre-set exchange rate, and the amount of local currency is shown on the display. The user presses the 'cash-out'button again in order to receive the local denomination, which is provided at the output 4. The stored value card is retained at the machine to be used for a subsequent transaction. The user may cancel the transaction by pressing a'cancel' button instead of the'cash-out'button, whereupon the stored value card is returned.

The internal operation of the machine is shown schematically in figure 2.

Referring to part A of figure 2, the cash-in process comprises receiving coins at a coin receptor, sorting the coins and counting the coins together with their denomination.

The cash-in process further comprises receiving notes at a note receptor, sorting the notes and counting the notes together with their denomination. The amount and denominations of the notes and coins are added together to provide a total cash-in sum

of the currency input to the machine. The machine accepts only the local currency, and will reject coins and notes of any other currency.

The total cash-in sum, together with the type of currency, the date, time and place of the cash in are encrypted using a security system. The security system provides encryption based upon a coding format hereafter referred to as Portable Universally Recognised Secured Electronic-Money (PURSE) code which is processed by the electronics of the machine. The encrypted data can only be deciphered by other currency conversion machines, which are equipped to process the PURSE code.

The encrypted data is written onto a magnetic element on a stored value card, and the card is then output from the machine.

Referring to part B of figure 2, a cash-out transaction comprises receiving a stored value card, and reading encrypted data from the card. The encrypted data is decrypted by process of the electronics of the machine. The machine determines the amount and currency type indicated by the decrypted data, and converts this into the local currency using a pre-set exchange rate. A suitable combination of notes and coins which make up the amount of local currency to be output is determined. The notes and coins are issued from coin dispensers and note dispensers to the output 4.

The machine may allow a user to select the denominations in which the currency is issued.

The user may cancel a transaction at any point, whereupon his cash/stored value card is returned to him by the machine.

The stored value card may be provided with a limited duration of validity. For example, the system may be set up so that a stored value card will become invalid if it is not used within three months. Where this is implemented, the machine will read the'cash-in'date from the card, and compare it with the current date to determine whether the card is valid. The limited duration of validity will exert some time pressure on a user to convert a stored value card to cash, thereby limiting the pay-out liability of the system.

The machine will charge a commission for the output of local currency. The commission is incorporated into the pre-set exchange rate, and is a minor percentage of the transaction. The effect of the commission is that, on average, each machine will receive more local currency than it pays out. The local currency is collected periodically by machine supervisors. Where a user retains a stored value card beyond its expiry date, the amount stored on the stored value card cannot then be converted to local currency. The effect of the limited duration of validity is that, on average, the difference between the amount received and the amount paid out by each machine is increased.

A user may purchase several stored value cards at his home country before travelling to a foreign country. The user will convert each stored value card to the local currency of the foreign country as currency is required. Any unused stored value cards may be converted back to the user's home currency upon return to his home country. Conversion to the user's home currency will not incur a commission since the commission is a percentage of currency exchange rate, and no exchange has taken place. Thus, the user may buy substantially more stored value cards than he expects to use before leaving home, safe in the knowledge that any unused stored value cards may be converted back to the home currency without incurring any cost.

Where the system is used to provide currency conversion at intervals during a visit to a foreign country, currency conversion machines may be provided in convenient locations, for example in hotel foyers.

The machine may be connected to an automatic telling machine (ATM) bank network. Where this is done, a user inputs their ATM card together with a personal identification number. Money is transferred from the user's bank account to a stored value card at the request of the user, and the stored value card is output by the machine.

The pre-set exchange rate and the commission are set by the supervisor of the machine. This may be done by a supervisor accessing the machine remotely via a direct telephone connection or via the Internet. Password protection may be used to prevent unauthorised amendment of the exchange rate or commission. Alternatively, the exchange rate and commission may be set by the supervisor opening a locked access panel (not shown in figure 1) of the machine and using input buttons to adjust the exchange rate and/or commission.

The machine maintains a record of its operations, including cash paid in and paid out. The record may be periodically transferred to a control centre via a direct telephone link or via the Internet.

The machine may be configured such that, in addition to currency conversion, large denomination local currency may be converted directly into smaller denomination local currency or vice versa, without the use of a stored value card.

Claims

CLAIMS 1. A currency conversion apparatus comprising means for receiving and counting cash of a first currency input by a user, means for writing onto a portable token the amount of cash input by the user, and means for outputting the token for retention by the user, the currency conversion apparatus further comprising means for receiving a token onto which a cash amount of a second currency has been written by a currency conversion apparatus, means for reading from the token the amount of the second currency, means for converting the amount of the second currency to an amount of the first currency, and means for outputting cash to the amount of the first currency.
2. A currency conversion apparatus according to claim 1, wherein the writing means writes onto the token in a format which can be read electronically
3. A currency conversion apparatus according to claim 2, wherein the writing means writes onto a magnetic element provided on the token.
4. A currency conversion apparatus according to any preceding claim, wherein in addition to the amount of cash paid in, the writing means is arranged to write additional data onto the token.
5. A currency conversion apparatus according to any preceding claim, wherein the apparatus is provided with encryption means which encrypts the amount of cash paid in before it is written onto the token.
6. A currency conversion apparatus according to claim 4 and claim 5, wherein the encryption means encrypts the additional data before it is written onto the token.
7. A currency conversion apparatus according to any preceding claim, wherein the apparatus is arranged to retain the token once cash has been output to the amount of the first currency, and to reuse the token for a subsequent transaction.

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8. A currency conversion apparatus according to any preceding claim, wherein the token is a plastic card.
9. A currency conversion apparatus according to any preceding claim, wherein the converting means is provided with a pre-set exchange rate for converting the amount of the second currency to the amount of the first currency.
10. A currency conversion apparatus according to claim 9, wherein the pre-set exchange rate includes a commission.
11. A currency conversion apparatus according to claim 9 or 10, wherein the apparatus is provided with input means which allow a local operator of the apparatus to adjust the pre-set exchange rate.
12. A currency conversion apparatus according to any of claims 9,10 or 11, wherein the apparatus is provided with input means which allow remote adjustment of the pre-set exchange rate.
13. A currency conversion apparatus according to claim 12, wherein the input means is connected to a remote operator via the Internet or via a direct telephone link.
14. A currency conversion apparatus according to claim 13, wherein the apparatus is provided with output means to output operational data to the remote operator.
15. A currency conversion apparatus according to any preceding claim, wherein the writing means is arranged to write onto the token the date upon which the token is output from the apparatus.
16. A currency conversion apparatus according to claim 15, wherein the apparatus is provided with date comparison means for comparing the date upon which a token is received at the receiving means with the date upon which that token was output, the

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apparatus being arranged to refrain from outputting cash if the difference between the dates is greater than a pre-set period.
17. A currency conversion apparatus according to any preceding claim, wherein the apparatus is connected to an automatic telling apparatus (ATM) bank network such that money may be transferred from a user's bank account instead of the user inputting cash into the apparatus.
18. A currency conversion apparatus according to any preceding claim, wherein, at the request of the user, the apparatus is arranged to receive cash of the first currency and immediately output cash of the first currency in different denominations.
19. A currency conversion apparatus according to any preceding claim, wherein the first currency is the local currency of the country in which the apparatus is located.
20. A currency conversion apparatus according to any preceding claim, wherein the second currency is a currency of a country other than the country in which the apparatus is located.
21. A currency conversion token for use in connection with the currency conversion apparatus of any of claims 1 to 20.
22. A method of currency conversion comprising receiving and counting cash of a first currency input by a user, writing onto a portable token the amount of cash input by the user, and outputting the token for retention by the user, the currency conversion method further comprising receiving a token onto which a cash amount of a second currency has been written by a currency conversion apparatus, reading from the token the amount of the second currency, converting the amount of the second currency to an amount of the first currency, and outputting cash to the amount of the first currency.

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23. A currency conversion apparatus substantially as hereinbefore described with reference to the accompanying figures.
24. A method of currency conversion substantially as hereinbefore described with reference to the accompanying figures.