You can freely build on Early Automatic Cash Dispenser Using Credit Cards

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.

What is now free to use

All 1 claims of US 3761682 are in the public domain. Specifically:

The 1 dependent claim add narrowing limitations and are also free.

What is NOT covered

Patent expiry frees this specific invention. Separately-patented improvements made after expiry may still be protected.

• 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

Who is building on this today

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.

Products built on expired version of this technology

How to cite this patent in your documentation

Docutel Corp. US Patent 3761682. Credit card automatic currency dispenser. Granted 1973, expired 1991. Now in the public domain.

Note: This is a convenience citation. Consult a patent attorney for formal freedom-to-operate analysis.

PatentBrief is an educational resource and does not provide legal advice. Patent expiration information is derived from USPTO records and may not reflect continuation patents, divisional filings, or separately-patented improvements. For commercial use or production decisions, obtain a formal freedom-to-operate (FTO) opinion from a registered patent attorney.