This invention discloses a magnetic stripe card reader/writer apparatus comprising a card reader/writer device and a basic interface circuit. The recording head of the card reader/writer device is mounted on the end of a sensor arm and is driven over the magnetic stripe in an arcuate path by a head drive motor. The card reader/writer device includes a unique card locking mechanism which allows insertion of the card in only one manner and locks the card in place before initiating the reading or writing operation of the device. The interface circuit controls the forward and reverse motion of the head drive motor, converts magnetic data previously recorded on the card into digital information and records digital information onto the magnetic stripe card in the form of magnetic data.

An automated banking system, which comprises at least one remote transaction and cash dispensing unit interconnected with a central unit via a communication network is disclosed. Each remote unit is operable following a single customer card insertion, in either a first mode or a second mode, to process one or more transactions, including cash withdrawal, fund transfer and payment and deposit transactions. The central unit determines the mode of operation of each remote unit. In the first mode, the central unit communicates data to a remote unit following a request from the remote unit. The central unit may transmit information for updating the customer's card. The central unit communicates actual account balances which the remote unit reports to the customer. From other communicated data, which includes account descriptions, the remote unit determines which transactions a customer may perform. The remote unit then processes customer-selected transactions in accordance with additional communicated data, which includes working balances, an extended credit balance and a maximum cash limit. In the second mode, the remote unit does not communicate with the central unit, but itself both determines which transactions a customer may perform and processes customer-selected transactions in accordance with information included on the customer's card. In the first mode, the remote unit communicates customer transaction data to the central unit immediately after the customer completes his transactions. The remote unit, in the second mode, records customer transaction data which it communicates to the central unit when the remote unit becomes operable in the first mode. Line security and customer verification schemes are provided to protect the integrity of the system. Additional features are disclosed.

The subject invention relates to a transaction system wherein the issuer of transaction cards can regulate the type of authorization requests transmitted from the point of transaction. The system includes a plurality of transaction cards, each of which are provided with risk assessment data associated with each cardholder. The system further includes a plurality of terminals, each terminal having the ability to read the information placed on the transaction cards. In operation, the risk assessment data is compared to the transaction amount by the terminal. If the transaction is approved, the terminal will issue an automatic, off-line authorization. If the transaction does not fall within the approval range, the terminal will function to transmit the transaction information to the issuer for evaluation. The issuer can then determine whether to authorize the transaction based on its own data base.

The subject invention relates to a transaction system wherein the issuer of transaction cards can regulate the type of authorization requests transmitted from the point of transaction. The system includes a plurality of transaction cards, each of which are provided with risk assessment data associated with each cardholder. The system further includes a plurality of terminals, each terminal having the ability to read the information placed on the transaction cards. In operation, the risk assessment data is used to generate a pending transaction limit. The amount of the transaction is compared to the pending transaction limit by the terminal. If the transaction is approved, the terminal will issue an automatic, off-line authorization. If the transaction does not fall within the approval range, the terminal will function to transmit the transaction information to the issuer for evaluation. The issuer can then determine whether to authorize the transaction based on its own data base.

A bank of vending machines has an associated debit card reader of vend card reader, with its associated card reader controller. The card reader controller interfaces between the money handling mechanism of one or more of the vending machines, and the vending machine controller circuitry. The vending machine controller does not connect directly to the money accepting or change making equipment. As an incentive to stimulate card purchases rather then cash purchases, the card reader controller can credit the card holder with bonus points when purchases are made. These can be discounts and added directly into the card purchase credit balance, or can be bonus points to be recorded in a separate field on the vend card, and separately redeemed.