Classifications

• • G—PHYSICS
  • G07—CHECKING-DEVICES
  • G07F—COIN-FREED OR LIKE APPARATUS
  • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
  • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
  • G07F7/10—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means together with a coded signal, e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06K—GRAPHICAL DATA READING; PRESENTATION OF DATA; RECORD CARRIERS; HANDLING RECORD CARRIERS
  • G06K17/00—Methods or arrangements for effecting co-operative working between equipments covered by two or more of main groups G06K1/00 - G06K15/00, e.g. automatic card files incorporating conveying and reading operations
• • G—PHYSICS
  • G06—COMPUTING; CALCULATING OR COUNTING
  • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
  • G06Q20/00—Payment architectures, schemes or protocols
  • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
  • G06Q20/34—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using cards, e.g. integrated circuit [IC] cards or magnetic cards
  • G06Q20/347—Passive cards
• • G—PHYSICS
  • G07—CHECKING-DEVICES
  • G07F—COIN-FREED OR LIKE APPARATUS
  • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
  • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
  • G07F7/10—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means together with a coded signal, e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
  • G07F7/1025—Identification of user by a PIN code
  • G07F7/1075—PIN is checked remotely

Definitions

• the invention relates generally to the field of gener credit cards, and in particular, to a generic transaction account system utilizing programmable generic transaction account cards.
• Cards similar to credit cards are also issued by financial' institutions such as banks, whereby bank customers can undertake financial transactions at automati teller machines and machines which provide for electronic fund transfer, which are generally more numerous than bank branches and which operate twenty-four hours a day. Credi cards are also issued by many other independent sources, such as retail store chains.
• the system is very much preferred by most consumers, for several important reasons. Firstly, consumers are relieved from the need and risk to always carry large amounts of cash. Secondly, consumers have an easy opportunity to spend more money than might be otherwise on hand at the moment of purchase, knowing that the credit limit of the particular credit card system is equivalent to a line of credit which can be tapped as needed, and can be satisfied by installment payments over time. Thirdly, the credit slips and monthly bills issued by such independent transaction account systems provide a record of purchases and payments.
• Universal or generic credit cards have been described both in the patent literature and technical literature. Universal or multiple company credit cards are disclosed i U.S. Patents Nos. 3,376,661; 3,512,130; 4,443,027; and, 4 r 593,936. In the technical literature, such cards are referred to as "SMART" cards. Smart card is a description generally accorded to a wallet-sized plastic card having microprocessor and memory chips embedded therein. The development of such technology is described at some length in an article entitled “SMART CARDS” which appeared in Hig Technology, July, 1986 pages 34-43 and an article entitled “SMART CARD” which appeared in Electronics December 18, 1986, pages 55-58.
• Various parts of this invention may be constructed integrally with, that is, in combination with existing terminals used for processing credit card transactions. These involve means for communicating by telephone, for example, with a central clearing house for the particular independent transaction account system, to assure that the card has not been reported lost or stolen and to insure tha charges will not exceed credit limits.
• Such apparatus are disclosed in U.S. Patent Nos. 3,564,210 and 3,982,103. The disclosures of the other noted patent references are incorporated herein as well.
• the generic transaction account system solves the first problem noted above by enabling customers of the transaction account system to benefit by convenient substitution of the generic transaction account card for any number of independent transaction account cards which the customer must otherwise carry.
• This invention also provides a comprehensive summary of account transactions undertaken in all of the independent transaction accounts, and thereby enables self-monitoring of spending practices without the need to correlate credit slips and bills from a plurality of different independent transaction account systems.
• the transaction account system according to this invention also enables customers to "read" their account status from the card, by means of customer operable terminals associated with this system, solving the third problem.
• the transaction account system provides an opportunity for system operators to benefit by monitoring and influencing consumer preference patterns of customers and enables issuers of independent transaction account cards to benefit because each customer effectively carries all such independent transaction _ j ⁇ _ ⁇ c d ⁇ s ah - 1 1 times, encouraging use thereof.
• the system itself is fully operable while at all times being completely “transparent" to all transactions utilizing the independent transaction accounts.
• a generic transaction account system comprising in the presently preferred embodiments: a plurality of programmabl generic transaction account cards adapted for use by customers of the transaction account system, each card having means for storing an account log of identity/operating codes for a plurality of transaction accounts and at least one interim ledger of transactions, and means enabling information to be transferred between th
• _. card and a system terminal a central data file for storing a customer account log and a cumulative transaction ledger for each programmed card; and, a plurality of system terminals, each of the system terminals having means for reading the card and automatically updating the interim ledger as necessary and a user interface for controlling t terminal and for displaying information stored on the card, and at least one of the system terminals having means for transferring data between the generic cards and the central data file.
• the transaction accounts are in the nature of credit, debit, automatic teller machine(ATM) , electronic fund transfer(EFT) , promotional incentive and other such accounts.
• the transactions stored in the at least one interim and cumulative transaction ledgers are in the natu of credits, debits, deposits, withdrawals, transfers, promotional incentive use and other such transactions.
• Customers of the generic transaction account system may, b convenient substitution of the generic transaction account card for a plurality of individual account cards, utilize single card to conduct transactions in any number of transaction accounts and, at the same time, automaticallv have maintained for them a comprehensive summary of accoun transactions for self-monitoring spending practices.
• the generic transaction account system further comprises a plurality of first system terminals adapted for use by system operators, a plurality of second system terminals adapted for use by customers and a plurality of third syst terminals adapted for use by independent merchants.
• Each the first system terminals preferably has means for selectively adding and deleting transaction account identity/operating codes to and from the cards, means for automatically reading the the card and updating the centra data file as necessary, means for reading data from independently issued transaction account cards and a user interface for controlling the terminal and for displaying information stored on the card.
• Each of the second terminals preferably has means for selectively adding and deleting transaction account identity codes to and from th cards, means for reading data from independently issued transaction account cards, means for reading the cards and user interface for controlling the terminal and for displaying information stored on the card.
• Each of the third system terminals preferably has means for reading identity codes from the cards, means for automatically updating the at least one interim transaction ledger responsive to a transaction occurrence at the terminal and user interface for controlling the terminal.
• at least some of the system terminals may be integrated with a ATM/EFT terminal having means for transferring information between the ATM/EFT terminal and an independent financial data base.
• At least some of the first system terminals may be integrated with a sales register having means for communicating with at least one financial data base, whereb payment for purchases may be effected directly by use of th generic transaction account card.
• At least some of the second system terminals may be integrated with a sales terminal for catalog houses and the like, having means for communicating with at least one catalog house and the like and means for communicating with at least one financial dat base, whereby purchases and payments for the purchases may be effected directly by use of the generic transaction account card and whereby promotional incentives may be "cashed in" for merchandise and the like.
• At least some o the third system terminals may be integrated with a sales register having means for communicating with at least one financial data base, whereby payment for purchases may be effected directly by use of the generic transaction accoun card.
• at least some of the third system terminals may be integrated with a credit/debit card terminal having means for reading data from independently issued transaction accounts and means for automatically communicating with a credit clearance authorization center.
• system may further comprise means for transferring information betwee the central data file of the system and at least one of th integrated ATM/EFT terminals, and means for transferring information between the central data file of the system an the independent financial data base associated with the integrated ATM/EFT terminal.
• the Figure is a block diagram of a generic transaction account system according to this invention.
• a generic transaction account system according to thi invention is shown in block diagram form, and is within th block designated by reference numeral 10.
• the generic transaction account system 10 comprises a plurality of programmable generic transaction account cards 12 adapted for use by customers of the transaction account system, a central system data file 14 and a plurality of system terminals.
• a first kind of system terminal 16 is an information and transfer terminal adapted for use by system operators.
• a second kind of terminal 18 is adapted for use by custome of the generic transaction account system.
• a third kind o system terminal 20 is adapted for use by independent merchants, who wish to enable their customers the opportunity to use a generic transaction account card in addition to . an independent transaction account card.
• a fourth kind of system terminal 22 is adapted for use in combination with an automatic teller machine(ATM) and/or a electronic fund transfer(EFT) machine. It will be appreciated that although only one of each kind of termina is illustrated in the Figure, a generic transaction accoun system 10 according to this invention will require large numbers of each of the system terminals.
• Information and transfer terminal 16 has means 3 for transferring data between the terminal and the central system data file 14. Every ATM/EFT terminal 22, even thos which do not form part of system 10, have means 26 for communicating with a financial data base 24, which is usually the financial data base of the bank which sponsors the ATM/EFT terminal. Similarly, credit authorization terminals used by independent merchants, whether or not embodied as a system terminal according to this invention, are provided with means 28 for communicating with an independent transaction account data base 78 for each of t independent transaction account systems to which the merchant is a subscriber. Means 64 may also be provided f communicating between customer terminals 18 and a catalog house or the like 80.
• means 38 may be provided for transferring data between the central system data file 14 and the financial data base 24.
• means may also be provided for transferring data between the central system data file 14 and one or more independent transaction account data bases 78.
• the central system data file 14 is managed by the operator of the generic transaction account system 10.
• the central system data file 14 preferably contains at least tw data stores 32 and 34.
• Data store 32 is a customer account log, which stores identity/operating codes for each of the independent transaction accounts which a customer transfers onto a generic transaction account card.
• the transaction accounts are in the nature of credit, debit, automatic teller(ATM), electronic fund transfer (EFT) , promotional incentive and other such accounts.
• Data store 34 is a cumulative transaction ledger for each transaction undertaken with a generic transaction account card.
• the transactions stored are in the nature of credits, debits, deposits, withdrawals, transfers, promotional incentive use and other such transactions.
• the information and transfer terminals 16 are preferably used for loading and reading from central system data file 14, although system operators might choose to embody the central system data file in a computer, which is itself provided with means for controlling data transfer to and from the central system file 14.
• Each generic transaction account card 12 represents, t some extent, a portable version of each customer's part of the central system data file.
• Each generic transaction account card 12 comprises an on-board processor 40.
• the processor 40 is used to transfer transaction data to and from an interim transaction ledger 42 and to and from a system interface connector 46.
• the processor 40 also controls data transfer to and from a plurality of account logs 44, for storing a plurality of identity/operating code for which the generic transaction account card is programmed.
• the use of separate blocks for data stores 42 and 44 is not to be construed as a limitation upon the manner in which the card memory is organized.
• the electronic aspects of the card are at least partially embedded therein, enabling one or both of the large surface of the card to bear visible indicia to assist in identification and validation of the card.
• visible inditia might include photographs, signature lines and the like.
• Visible inditia will also be provided which identify the generic transaction account system operators. Means for encrypting data on credit cards in general, and with regard to identity/operating codes in particular, are already know in the art, and are not described herein. It is preferred that generic- transaction account cards according to this invention will have such encryption means operable as part of the on-board processor 40, to prevent improper use of th cards.
• the information and transfer terminals 16 are intended for use by system operators, and each is preferably provide with a control keypad 52 and a video display 54.
• Card readers 56 and 58 are provided for interfacing with generic transaction account cards 12 and conventional independent transaction account cards, respectively.
• Printer 60 provides hard copy of data which is transferred to and from each card, to and from the central system data file and tha data which is resident on each card.
• each of the information and transfer terminals 16 has means for selectively adding and deleting transaction account identity/operating codes to and from t cards, means for automatically reading the card and updati the central data file as necessary, means for reading data from independently issued transaction account cards and a user interphase for controlling the terminal and for displaying information stored on the card.
• at least some of the first system terminals are integrated with a sales register having means for communicating with at least one financial data base, where payment for purchases may effected directly by use of the generic transaction account card.
• Each of the customer terminals 18 also includes a keypad 52, video display 54, card readers 56 and 58, and printer 60. ' Accordingly, each of the second system terminals 18 preferably has means for selectively adding an deleting transaction account identity codes to and from the cards, means for reading data from independently issued transaction account cards, means for reading the cards and user interphase for controlling the terminal and for displaying information stored the card. It is preferred that at least some of the customer terminals 18 may be integrated with a sales terminal for catalog houses and the like, having means for communicating with at least one catalog house and the like and means for communicating with at least one financial data base, whereby purchases and payments for the purchases may be effected directly by use of the generic transaction account card and whereby promotional incentives may be cashed in for merchandise and the like.
• Each of the merchant terminals 20 is provided with a card reader 56 and a printer 60, as well as, for example, a plurality of buttons 66 for selecting one of the independen transaction accounts for use in purchasing merchandise from the merchant.
• Each button may be provided with a light 68, such that all available independent accounts will be identified by lighted buttons after the generic transaction account card has been inserted into card reader 56. The selection of a particular independent transaction account can be effected as easily as pressing one of the lighted buttons.
• the terminal would function as a conventional credit authorization terminal, establishing communication with an independent transaction account data base 78 and flashing an approval or denial code number in display 72.
• a credit slip can be prepared by printer 60.
• card reader 56 is preferably adapted to read either bind, and there is no need to provide two card readers.
• a "CLEAR" button 70 may be provided for clearing incorrect account choices or for choosing a different account if credit is refused in a first account.
• each o the third system terminals 20 preferably has means for reading identity codes from the generic cards, means for automatically updating the at least one interim transactio ledger responsive to a transaction occurrence at the terminal and a user interphase for controlling the termina It is also preferred that at least some of the merchant terminals 20 be integrated with a sales register having means for communicating with at least one financial data base, whereby payment for purchases may be effected direct by use of the generic transaction account card.
• a consum is likely to secure a generic transaction account card fro a system operated by a chain store retailer or the like.
• the generic card would be a product in and of itself, as opposed to the system operator's medium for financial or other communications between consumer, retailer and card issuer, as is the case with, for example, AMERICAN EXPRESS VISA AND MASTERCARD.
• the issuing company would market the card and related devices to businesses for redistribution t consumers, consumers benefitting from the consolidation of all such cards and/or services into one generic card.
• the generic card would have a product name, although the issuer retailer or other party could very well be identified on th card and receive certain benefits as the issuer or remarketer of the card.
• generic transaction accoun cards might be issued to a consumer by a supermarket chain.
• the card might also be a VISA or MASTERCARD credit card, an might very well contain the supermarket's check validation service, a "frequent shopper" program that rewards the consumer for the amount of purchase.
• the card may also include means for enabling use of automatic teller machine and electronic fund transfer terminals. Each of these functions would be functionally partitioned within the card and would perform the desired function when placed in an appropriate card reader. Integration of system terminals with existing terminals would likely require replacement or modification of the card reader, so as to enable operation with conventional credit cards and the generic transaction account card.
• the consumer may fill out an application form or enter the appropriate information into system terminal located in the store or other location.
• Th application would preferably request certain basic information required for credit card, and through the use o incentives, points in a frequent shopper program as an example, would then grant bonus points for additional information regarding consumer preferences and practices.
• the basic credit information would be forwarded to an underwriting bank, but the additional consumer information would be retained by the retail chain.
• the card would be processed by the underwriting bank a would any other credit card application, and if requested b the customer and supported by the bank, an ATM and/or EFT function may be added.
• the card may then be returned to th issuing store with the consumer identified on the card and the various electronic services capabilities approved by th bank incorporated therein.
• a system operator may then insert the card into an information and transfer terminal t initialize the card with the store's coded information, and to add those services selected by the consumer.
• Those additional services might include check validation, frequen shopper program, food stamps, and any other promotional program currently being provided by the store or participating manufacturer. These services may be incorporated in the card by the bank at the time of issue under an agreement between the bank and the retail store.
• an electronic file would be opened for the consumer containing all the basic consumer preference information contained on the card. If the consumer provided the store with additional information, this information could be used to classify the consumer as a certain category of purchaser. The classification of the consumer would be added to the card and, if appropriate, bonus points added to the card at that time. The central system data file would be updated simultaneously. The customized card, preferably containing a certain amount of "pre-loaded" promotions would then be presented to the consumer. The consumer's file would resid at the store that issued the card, and would be updated eac time the card was used at the store. The interim transaction ledger of the generic transaction account card would be made sufficiently large to handle the number of transactions which could be expected to take place between consumer's visits to a system terminal which acts as information and transfer terminal 16.
• the generic transaction account card is easy to use. If the card is entered into an interactive terminal which i integrated with a sale register, purchases can be charged directly to the generic card. If the card is entered at a remote terminal, the consumer may determine the status of his bank account, incentive program or any other services integral in the card; may convert incentive "points" into merchandise through catalog purchases; may select of numbe of coupons or other incentives and receive a printed shopping list; may add or subtract independent transaction service accounts to and from the card; and may perform conventional banking services at ATM/EFT terminals.
• the consumer may still use the card to pay for the transaction by credit access or electronic funds transfer; may select coupons selected by video display that are related to the items purchased during that transaction, which coupons may be stored electronically on the card for use at a later date; may accumulate incentive points based upon items purchased; and, may perform other financial services required at the point of purchase. Consumers migh also print a shopping list of coupons stored on the card, so as to be certain that all available coupons are utilized.
• the card Whenever a consumer shops at a store other than one operated by the system operator, the card functions as a portable data base. The consumer may insert the card in th terminal in the second store, and perform all of the same functions noted above. At the end of the transaction, the interim transaction ledger would be updated. Whenever the consumer returned next to a system store, the card would automatically be read to update the cumulative transaction ledger 34. Even should a consumer lose the card, the issuing store would still have a record of all transactions except of course for those transacted after the last transfer of information from the card to the central system data file.
• Customer interactive terminals are a preferred embodiment for the system terminals of this invention.
• System terminals can be integrated with existing kinds of terminals without undue difficulty.
• the operation of consumer interactive terminals is described in some detail in U.S. Patent No. 4,676,343, the teachings of which are incorporated herein by reference.
• the invention may be embodied in other specific forms without departing from spirit or essential attributes thereof. Accordingly, reference should be made to the appended claims, rather than to the foregoing specification as indicating the scope of the invention.

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• Physics & Mathematics (AREA)
• General Physics & Mathematics (AREA)
• Engineering & Computer Science (AREA)
• Theoretical Computer Science (AREA)
• Business, Economics & Management (AREA)
• Microelectronics & Electronic Packaging (AREA)
• Computer Networks & Wireless Communication (AREA)
• Accounting & Taxation (AREA)
• Strategic Management (AREA)
• General Business, Economics & Management (AREA)
• Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
• Cash Registers Or Receiving Machines (AREA)

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• 1989
  • 1989-05-04 AU AU37500/89A patent/AU3750089A/en not_active Abandoned
  • 1989-05-04 BR BR898906949A patent/BR8906949A/pt unknown
  • 1989-05-04 EP EP19890906982 patent/EP0370104A4/en not_active Withdrawn
  • 1989-05-04 WO PCT/US1989/001946 patent/WO1989011130A1/en not_active Application Discontinuation
  • 1989-05-04 JP JP1506286A patent/JPH03500705A/ja active Pending

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