Early Automatic Cash Dispenser Using Credit Cards
This 1973 patent describes a machine that dispenses cash using a coded credit card, verifies the card's validity, and updates its code after each transaction to prevent fraud.
Original patent title: “Credit card automatic currency dispenser”
This 1973 patent describes a machine that dispenses cash using a coded credit card, verifies the card's validity, and updates its code after each transaction to prevent fraud. Granted to Docutel Corp in 1973 with 53 claims and 36 forward citations, and it is now in the public domain.
Key facts
Coverage
What does this patent actually cover?
This patent details a method for an automated machine to dispense cash based on a credit card. When a card is presented, the machine reads its coded data and compares it against stored verification codes to check for validity, such as bank code, expiration dateexpiration dateWhen the patent's enforceable term ends. For utility patents, usually 20 years from filing.Read more →, or number of uses. If the card is valid, the machine dispenses the requested currency. Crucially, after dispensing cash, the machine updates the card's coded data to reflect the transaction and then re-scrambles it with a changing key. This updated, scrambled code is then recorded onto a new document (presumably a replacement card or a receipt) that is removed from the machine. This process aims to prevent unauthorized use by ensuring the card's code is always current and unique after each transaction.
The gap
What does this patent NOT cover?
- Dispensing cash without a coded document being presented
- Dispensing cash using a document that has expired or exceeded its usage limit
- Dispensing cash without verifying the coded data against stored codes
- Updating the coded data on the document after a transaction
- Scrambling the coded data after each transaction to prevent reuse
These exclusions are unique to PatentBrief — derived from the actual claim language, not patent-office boilerplate.
What made this novel
The innovation lies in updating and re-scrambling the credit card's code after every single transaction, effectively creating a unique, dynamic identifier that prevents the same card data from being used repeatedly to withdraw cash.
The Patent Drawing
Schematic visualization of the patent's claim structure. Hand-drawn diagrams in progress for each landmark patent.
Where you've seen this
Real-world examples
Docutel Automatic Teller Machine (ATM) prototypes
Why it matters
The bigger picture
This patent represents an early attempt at creating an automated banking machine that could dispense cash using a credit card, a precursor to modern ATMs. It addresses the critical need for security in such machines by incorporating data verification and transaction-specific code updates to deter fraud.
Filed
October 7, 1971
Granted
September 25, 1973
Market context
Who's building on this
Companies in this space
While Docutel Corp was a pioneer, the technology described here laid foundational concepts for the ATM industry. Today, major financial institutions and ATM manufacturers like Diebold Nixdorf and NCR Corporation continue to develop and deploy advanced cash dispensing and transaction processing systems.
Market impact
This patent was filed at the dawn of automated financial transactions. Its concepts of secure card verification and transaction-based data updating were crucial steps toward the development of the modern ATM network, fundamentally changing how consumers access cash and manage their finances.
Claim 1 — Plain English
What this patent covers
This patent details a method for an automated machine to dispense cash based on a credit card. When a card is presented, the machine reads its coded data and compares it against stored verification codes to check for validity, such as bank code, expiration date, or number of uses. If the card is valid, the machine dispenses the requested currency. Crucially, after dispensing cash, the machine updates the card's coded data to reflect the transaction and then re-scrambles it with a changing key. This updated, scrambled code is then recorded onto a new document (presumably a replacement card or a receipt) that is removed from the machine. This process aims to prevent unauthorized use by ensuring the card's code is always current and unique after each transaction.
The clever bit
The innovation lies in updating and re-scrambling the credit card's code after every single transaction, effectively creating a unique, dynamic identifier that prevents the same card data from being used repeatedly to withdraw cash.
What it does not cover
- Dispensing cash without a coded document being presented
- Dispensing cash using a document that has expired or exceeded its usage limit
- Dispensing cash without verifying the coded data against stored codes
- Updating the coded data on the document after a transaction
- Scrambling the coded data after each transaction to prevent reuse
Patent Journey
From filing to expiry
PatentBrief Score
Impact Score
Moderate
Citation count
31/40
Moderately cited
Claim breadth
20/20
Very broad protection
Recency
0/20
Older than 20 years
Assignee scale
0/20
Independent or smaller assigneeassigneeThe entity that owns the patent — usually the inventor's employer or a company.Read more →
PatentBrief Impact Score — based on citation count, claim breadth, recency, and assignee scale. Not a legal assessment.
Heuristic Value Estimate
What this patent might be worth
$32K – $104K
Midpoint $65K · expired or expiring · industry ×1.5
Heuristic only — blends forward/backward citation counts, claim scope, time remaining, litigation history, and CPC-derived industry baseline. Real valuations need a professional appraisal.
The original legal language
Original claims
53 claims as filed with the patent office.
Concepts involved
Citations
Patent lineage
Cite this patent
Barnes, T., Chastain, G., & Wetzel, D. (1973). Early Automatic Cash Dispenser Using Credit Cards (U.S. Patent No. 3,761,682). U.S. Patent and Trademark Office. https://patentbrief.org/patent/us/3761682/atm-cash-dispenser
Auto-generated from the patent record. Double-check author order and the issue date against the official USPTO document before submitting.
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Common Questions
Frequently Asked Questions
What does Early Automatic Cash Dispenser Using Credit Cards cover?
This 1973 patent describes a machine that dispenses cash using a coded credit card, verifies the card's validity, and updates its code after each transaction to prevent fraud.
Who owns patent US 3761682?
Docutel Corp owns this patent, granted in 1973.
When does this patent expire?
This patent has expired and is now in the public domain — anyone can use the invention freely.
What is patent US 3761682 cited by?
This patent has been cited by 36 later patents that build on its ideas.
What problem does this patent solve?
This patent represents an early attempt at creating an automated banking machine that could dispense cash using a credit card, a precursor to modern ATMs. It addresses the critical need for security in such machines by incorporating data verification and transaction-specific code updates to deter fraud.
What does this patent NOT cover?
Dispensing cash without a coded document being presented
Patent monitoring