Patent 26 / ATM Offline Processing
01 / 11 US12020224B2
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Siten Sanghvi  ·  Granted Jun 25, 2024

ATM Offline Processing

Before approving an offline ATM withdrawal — when the ATM has no internet connection — the system asks: does the customer's current location match where they normally conduct transactions? If the customer's transaction history is concentrated in New York but they're at an ATM in a different region, that's a fraud signal. Location history becomes the gating mechanism for offline access.

US12020224B2Patent
Nov 18, 2022Filed
7 monthsTime to grant
20 Claims / 3 independentScope
6 InventorsTeam
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Visual patent explainer
02 / The Problem

Offline ATMs can't verify against central servers — but they still need to distinguish legitimate customers from fraud attempts.

When an ATM loses internet connectivity, it can no longer ping the central server to verify: does this account have sufficient balance? Is this card flagged for suspicious activity? Is this customer's pattern consistent? Standard fraud checks become unavailable. The ATM must decide whether to process a cash withdrawal using only local information — but local information typically means nothing more than the card data the customer presents.

No Server VerificationOffline ATM can't validate account balance, fraud flags, or transaction history against central systems — the primary fraud-prevention layer is gone
Card-Only Authentication InsufficientAn offline ATM relying only on card + PIN has no way to detect stolen cards being used in locations far from the cardholder's normal geography
Cash Dispersal RiskOnce cash is dispensed from an offline ATM, it cannot be recalled. False positives are costly; false negatives (approving a fraudulent withdrawal) are irreversible
03 / The Invention

Store the customer's location history on their mobile device. The ATM reads it offline — and uses it as a fraud gate.

Before the ATM goes offline, the secure bank app on the customer's mobile device downloads and stores that customer's recent transaction history — including the location data (zip code granularity, per Claim 3) associated with each transaction. When the customer later approaches an offline ATM, the ATM reads the history from the phone via short-range wireless.

The ATM evaluates: are most recent transactions within a distance threshold of this ATM's location? If yes, the customer's profile is consistent — approve the withdrawal. If most transactions occurred far away — the customer's phone is being used at an anomalous location — deny the request. The customer's own transaction history, carried on their own phone, becomes the offline fraud-detection signal.

04 / Eligibility Logic

Two-variable threshold: most recent transactions within distance of this ATM equals approval.

The eligibility check compares two variables: the locations of the customer's most recent transactions (stored on the phone) and the location of the ATM. If a threshold percentage of recent transactions occurred within a distance threshold of the ATM, the system determines the customer is a legitimate local user.

Claim 2 specifies the full three-factor evaluation: transaction value, location, and date. Location granularity is calibrated to zip code (Claim 3) — precise enough to detect cross-region anomalies without requiring GPS-exact coordinates. The date component adds recency weighting: stale transactions matter less than recent ones in evaluating current customer location patterns.

Eligibility Evaluation — US12020224B2
1
Phone-to-ATM Transfer — customer approaches offline ATM; phone transmits transaction history via short-range wireless (BT/NFC)
2
History Evaluation — ATM computes: what % of recent transactions occurred within [distance threshold] of ATM's zip code?
3
Threshold Comparison — if ≥ threshold: customer profile is locally consistent → proceed to biometric auth. If < threshold: anomalous location → deny
4
Biometric Auth — ATM verifies against biometrics stored on the mobile device (device-local, no server needed)
5
Limit & Capacity Check — approved withdrawal is bounded by trust-tiered limit (Claim 8) and ATM cash capacity (Claims 6–7)
6
Post-Reconnect Notification — when ATM regains connectivity, server reconciles + sends notification to customer to confirm the offline transaction (Claim 9)
05 / Trust Tiers & Capacity

Withdrawal limits adjust dynamically — based on available ATM cash and how much the system trusts the offline context.

Even a customer who passes the location eligibility check faces additional constraints when the ATM is operating offline. The ATM can't verify current balance, so it applies conservative limits. Two separate capacity constraints gate the withdrawal amount: remaining ATM cash (Claim 6) and a combined storage + cash dual-factor cap (Claim 7).

Claim 8 adds a trust-tiered limit: when available cash falls below a threshold, the withdrawal limit is reduced — customers with limited offline transaction history or borderline location matches receive smaller limits. This graceful degradation prioritizes serving more customers with smaller amounts over serving fewer customers with full amounts as the ATM approaches empty.

Dynamic Limit System — US12020224B2

ATM Capacity Cap

Claim 6: withdrawal limit cannot exceed the ATM's remaining cash supply. Prevents the ATM from attempting to dispense cash it doesn't have when it can't check remotely.

Dual-Factor Cap

Claim 7: limit is the lower of both the storage capacity constraint AND the cash capacity constraint. The tighter constraint always wins.

Trust-Tiered Limit

Claim 8: as cash supply runs low, the per-withdrawal limit decreases. Borderline-approved customers get proportionally smaller limits — more customers served at lower risk.

Post-Reconnect Notification

Claim 9: when connectivity returns, server reconciles the offline transactions and pushes a notification to the customer's device — confirming what was processed while offline.

06 / Eligibility Simulator

Four scenarios: local customer, anomalous location, trust-tiered limit, and biometric verification path.

Select a scenario to trace the full offline eligibility determination — from transaction history comparison through final outcome.

Location Eligibility Scenarios
07 / Activity Log Variant

Claim 13 adds a second independent system with an activity log — enabling replay attack prevention via timestamp matching.

Independent Claim 13 extends the system with an activity log stored on the mobile device. This log records the timestamp of each offline transaction the customer has participated in — including transactions where their phone relayed data for ATM-to-server transfers (Patent 23/25).

Claim 14 adds the critical security layer: when the ATM receives a transaction request, it checks the activity log for timestamp matching. If the request's timestamp matches a prior log entry — indicating the same transaction is being re-submitted — the ATM can reject it as a potential replay attack. This prevents an attacker from capturing a legitimate transaction request and re-submitting it to a different offline ATM.

Activity Log Security — US12020224B2

Activity Log Storage

Claim 13: mobile device stores a log of offline transactions — both withdrawals and relay activities — with timestamps. Log is maintained by the secure bank app.

Timestamp Matching Check

Claim 14: before processing a request, ATM compares the request timestamp against all entries in the activity log. A match indicates a replay — request is rejected.

Replay Attack Vector

Without timestamp matching: attacker captures NFC/BT transaction request, moves to second offline ATM, replays request. Second ATM has no way to know the request was already processed.

Log Synchronization

Activity log synchronizes with central server when connectivity is restored — timestamps are validated against server-side records and duplicates are permanently flagged.

08 / Applications

Location-gated offline access for any device-centric transaction system operating in disconnected environments.

The core innovation — using device-stored behavioral history as an offline fraud gate — extends to any system where a device-carried history can signal whether a transaction request is consistent with established patterns.

Use Cases — US12020224B2
Express
Disaster Zone ATM Access Hurricane-damaged ATM offline for 48 hours. Customer whose transaction history shows consistent use in the local zip code area gets approved — they're a local resident needing cash. An unfamiliar phone accessing the same ATM with history concentrated 800 miles away triggers a denial.
Express
Remote Location ATM Rural ATM offline due to connectivity outage. Customers who regularly use ATMs in the county are approved for standard withdrawal limits. Tourists passing through receive lower trust-tiered limits — still served, but with conservative caps calibrated to the offline risk.
Express
Biometric-Only Auth (No PIN) Offline ATM verifies identity using biometrics stored on the customer's mobile device — fingerprint or face match — without any network call. The device acts as a local identity oracle. PIN is not sufficient alone for offline authorization.
Inferred
POS Terminal Offline Approval Retail POS terminal without internet uses the same location-history eligibility gate to approve contactless purchases. Customers with consistent local purchase history approved; unusual cross-region cards flagged. Replay attack prevention via timestamp log prevents double-spend attempts.
09 / Citations

Forward Citations

One third-party citation found. One additional citation omitted. Full list available on Google Patents.

Forward citation check: Jun 22, 2026 · Static fetch; Google Patents citations are JS-rendered
Forward Citations — US12020224B2
Motorola Mobility LLC Mar 17, 2026 US12579537B2 "Digital wallet balance display in an electronic device" — Motorola Mobility cited this patent in the context of device-local financial data management and offline wallet state display.

One additional citation omitted. Full list on Google Patents →

10 / ATM Trilogy

This patent answers a different question than P23 and P25: not "how do we move data?" but "should we process this at all?"

US12299655B2 (Patent 23) defines the outbound data relay — phone carries transaction batch to server. US12051050B2 (Patent 25) closes the loop — server receipt returns to ATM via phone. This patent (US12020224B2) addresses the eligibility decision layer: before any of that infrastructure activates, should this customer's withdrawal be approved offline at all?

The three patents compose: Patent 26 gates eligibility using location history. Patent 23 handles the outbound data transport for approved transactions. Patent 25 provides the confirmation feedback loop when the relay completes. Three patents, three layers of the same offline ATM resilience architecture.

ATM Trilogy — Patent 26 Position

P26 · This Patent — Eligibility Gate

Answers: "Should this customer be allowed to withdraw offline?" Location history check, biometric auth, trust-tiered limits. The decision layer — everything else is downstream.

P23 · Outbound Relay

For approved transactions: phone carries the offline batch from ATM to server. Batch tagging, storage check, multi-phone split, deduplication. The transport layer.

P25 · Confirmation Loop

After server processes the batch: receipt returns to ATM via phone. ATM clears queue. Full closed-loop confirmation. The feedback layer.

Shared Infrastructure

All three: short-range wireless (BT/NFC/ZigBee/LiFi), secure bank app on registered device, central server reconciliation. Three patent layers on one architecture.

11 / Timeline

Patent Lifecycle

Nov 18, 2022
Filed
Application filed — B2 patent
18 months
May 23, 2024
Published
Pre-grant publication US20240169332A1
~1 month
Jun 25, 2024
Granted
US12020224B2 granted — 19 months from filing
~19 years
Mar 4, 2043
Expires
Adjusted expiration with Patent Term Adjustment (~106 days PTA)
End / Patent 26