AU661554B2

AU661554B2 - Credit validation arrangement

Info

Publication number: AU661554B2
Application number: AU33866/93A
Authority: AU
Inventors: John Peter Baee; Ronald Christopher Shaw Fox; Ian Murray Garth; Peter Anton Goode
Original assignee: Alcatel Australia Ltd
Current assignee: Nokia Services Ltd
Priority date: 1992-03-10
Filing date: 1993-03-02
Publication date: 1995-07-27
Anticipated expiration: 2013-03-02
Also published as: AU3386693A

Description

66 I 54 P/00/011 28/5/91 Regulation 3.2

AUSTRALIA

Patents Act 1990 4 4 4 4 *4 *e

ORIGINAL

COMPLETE SPECIFICATION STANDARD PATENT Invention Title: "CREDIT VALIDATION ARRANGEMENT" The following statement is a full description of this invention, including the best method of performing it known to us:- Technical Field This invention relates to an arrangement to enable equipment to operate over a telephone line in co-operation with the telephone. In particular, the invention permits a credit card verification arrangement to be used over the phone line.

The system is particularly useful in conjunction with systems such as the INFOBOT system which provides, at a central location, a means of validating a credit card transaction using recorded or re-constituted voice messages in response to instructions from the retailer. The retailer's instructions can be sent in the form of DTMF signals from the retailer's telephone.

Background Art Present credit card transactions are validated by means of a system where the retailer leases a dedicated phone line which is connected to a central location where one of several operators answers the call, requests the ciedit card number, checks available credit from a computer data bank, and ;ssues a transaction number if the credit is sufficient to cover the transaction.

The lease fee and t. cost of running the system are a significant cost for the users of the system.

Disclosure of the Invention According to the invention there is provided a card-reader arrangement for use 20 in conjunction with a telephone subset, the arrangement including a card-reader, first "and second change-over switches, one on either side of the card reader whereby when the switches are in a first position the card reader is connected across a first voltage source means and in series with the subset, and when the switches are in a second position the card reader is connected to the output of a second voltage source 25 means, the arrangement including a third change-over switch which, in the first *oo position connects the first voltage source means to the telephone line, and in the second position connects the second voltage source means and transmitter circuit to the telephone line.

"In one embodiment, the reader includes means to detect when a card is being inserted in the reader. This may be done optically or by detecting the first character read by the reader.

In a further embodiment means are provided to prevent the reader from transmitting unless the handset is off-hook.

~It is necessary to disconnect the phone from the line while the card information 4, 4 3 is transmitted to prevent the telephone, which has a relatively low impedance, from loading the transmitter and possibly preventing the signals from reaching the central location. Further the signals would be reproduced in the telephone's earpiece at a very loud level. The specification discloses means for powering the equipment and preventing the phone memories being corrupted while the phone is disconnected.

The card detection means can be used to cause the switching means to disconnect the telephone. The transmitter includes means to detect when the card information has been transmitted and to cause the switching means to reconnect the telephone to the line.

Brief Description of the Drawings Figure 1 is a block diagram of an embodiment of the invention.

Figure 2 is a more detailed diagram of an embodimen, of the inventiov.

Figure 3 is a schematic diagram of a system in which the invention can be utilised.

15 Figure 4 is an operation diagram showing steps taken in using an arrangement embodying the invention.

Best Mode of Carrying Out the Invention **The block diagram of Figure 1 shows an arrangement of a card reading device 1 S. connected to a phone line 2, and to a telephone 3. The reading device 1 includes a card reading slot through which a credit card can be moved and the card information V'6° read off. This device also includes means to store the information and means to convert it to a form suitable for transmission, these features preferably being provided by a processor.

The reading device 1 also incorporates card detector means and a line switch to switch the telephone out of circuit when the card information is being transmitted by a transmitter incorporated with the card reading device.

Optionally this circuitry may be incorporated in the telephone subset.

The features of the circuitry will now be described with reference to the embodiment shown in Figure 2.

In Figure 2 the card reader 21 is connected to the phone line via a pair of change-over switches 27 and 28. A voltage supply circuit shows schematically a zener 22, shunts the card reader when the switches 27 and 28 are in position "a" The circuit includes a third change-over switch 26 which connects the ph-,!.a line to the junction 29 of supply circuit 22 and card reader 21 when switch 26 is in position When switch 26 is in position the line is disconnected from junction I It 4 29 and applied to juncO.ion When switch 26 is in position transmitter 25 is looped into the telephone line, and the subset is supplied with a current sufficient to maintain its memory via bleed circuit 23.

Also connected to junction 30 is a power supply circuit 24, having a supply output across lines 27b and 28b, which are connected to the positions of switches 27 and 28 respectively. When switches 27 and 28 are in position the card reader is powered from the line via supply 24.

The operation of the circuit of Figure 2 is as follows.

The switches 26, 27 and 28 are all controlled by card reader 21 as shown schematically by link CLS so that all three are simultaneously in either position or position When the phone is on-hook the switches are in position and no current flows through the phone circuit 3. Thus no power is available for card reader 21. In 15 this condition insertion of a card in reader 21 has no effect.

When the phone is off-hook the line circuit is closed and current flows to the phone 3 via supply circuit 22. Supply circuit 22 provides a voltage drop of up to the maximum allowed by the telephone regulatory authority sufficient to power the card reader which may be, for example, an Omron Manual Type-Magnetic Card Reader Type 3S 4YR-HNR4.

C. The customer, eg a retailer, then dials a centra control location (34 in Figure 3) via the normal telephone network (32 in Figure and in response to a request from the central control operator (or synthetic voice request), the retailer passes the card through the card reader 21.

The card reader 21 detects the card's magnetic strip and generates an output signal on line CLS which causes switches 26, 27 and 28 to switch to position Switch 26 isolates the telephone's transmission circuit.

In this position transmitter 25 is powered from the line via switch 26 and the card reader 21 sends signals representing the information in the card's magnetic strip to the transmitter 25 via line RDP.

When the card reader 21 finishes sending the information to line via transmitter the signal on CLS is changed to return the switches 26, 27 and 28 to position This then permits the retailer to use the telephone keypad to transmit further information to the central controller 34 as required, In Figure 3 a plurality of transaction terminals including telephone subsets are 4 4 represented schematically at 31, these are connected by normal telephone lines to the public telephone exchange 32.

The central location includes a plurality of front end processors 33 connected to the exchange and these carry out the identification of the credit card account as described below. When the account is identified and the value of the transaction ascertained, the front end processor accesses the data base 34 to verify that credit is available.

The flow chart in Figure 4 illustrates the use of the arrangement.

The user, usually a retailer, has a phone with a dial memory. In a first memory the nurrmber of the central location is stored and in a second memory a code identifying the retailer is stored.

The retailer lifts the handset and presses the button to dial the central location.

The central location is equipped with a front end processor and an artificial voice generator which requests the retailer to put the card through the card reader.

15 The card detector detects the card and disconnects the phone.

The card reader reads the card and stores the card information preparatory for transmission. The DTMF generator associated with the card reader then transmits the information. At the end of the transmission the reader's processor reconnects the S"phone.

The central location includes a processor which decodes the card information to ascertain the card number and expiry date.

*The central processor then sends a voice message asking the user to enter his retailer code number.

V. V "•The retailer presses the appropriate button on the telephone set to transmit his code via the telephone's DTMF generator.

This information is also processed at the central location and a voice request for the amount of the transaction is sent to the retailer.

The retailer again uses the phone keypad to enter this information.

The front-end processor receives the DTMF signals, decodes them and accesses the database to verify that credit is available. If credit is available a voice message transmits the authorisation number to the retailer.

Voice messages can also be used to discontinue the process, eg. if the card is on a list of stolen cards.

Claims

1. A card-reader arrangement for use in conjunction with a telephone subset, the arrangement including a card-reader, first and second change-over switches, one on either side of the card reader whereby when the switches are in a first position the card reader is connected across a first voltage source means and in series with the subset, and when the switches are in a second position the card reader is connected to the output of a second voltage source means, the arrangement including a third change-over switch which, in the first position connects the first voltage source means to the telephone line, and in the second position connedcts the second voltage source means and transmitter circuit to the telephone line.

2. An arrangement as claimed in claim 1, wherein the third switch, when in the second position, connects ,he telephone to the line via a bleed circuit.

3. An arrangement as claimed in claim 1 or claim 2, wherein the card reader includes means to detect when a card is inserted, the card reader producing a first output signal to switch the first, second and third switches to the second position when a card is inserted.

4. An arrangement as claimed in claim 3 wherein the first output signal disconnects the telephone transmission circuit. o

5. An arrangement as claimed in any one of claims 1 to 4, wherein the card reader drives 20 the transmitter with signals read from the card. o

6. A card reader arrangement substantially as herein described with reference to the accompanying drawings.

7. An information interchange system including a card reader as claimed in any one of claims 1 to 6, the card reader being connected to a telephone line with a subset, whereby the card reader and subset can be put in communication with a central processor via the telephone 0 •network. .l

8. A system as claimed in claim 7, wherein the central processor is able to authenticate incoming information read from the card and transmit outgoing information relating to the card to the subset using speech signals. 30

9. An information interchange system substantially as herein described with •reference to the accompanying drawings. AiJ~s DATED THIS NINETEENTH DAY OF MAY 1995 UI ALCATEL AUSTRALIA LIMITED ABSTRACT The credit card validation equipment is designed to work in conju.lction with a normal telephone rather than the leased line presently used to communicate with a credit card central data bank. The retailer uses the memory dial facility of the telephone to dial the data bank via the public phone network Change-over switches (27, 28) bypass the card reader (21) during dialling. After dialling the central data base instructs the retailer to put the card in the reader. This causes switch (27) to isolate the telephone transmitter, and a card reader transmitter (25) is powered up to trL.. smit the card information. The telephone memory is kept charged via a charging circuit (23). 5 S o