GB2114348A - Credit card checking method and apparatus - Google Patents
Credit card checking method and apparatus Download PDFInfo
- Publication number
- GB2114348A GB2114348A GB08202914A GB8202914A GB2114348A GB 2114348 A GB2114348 A GB 2114348A GB 08202914 A GB08202914 A GB 08202914A GB 8202914 A GB8202914 A GB 8202914A GB 2114348 A GB2114348 A GB 2114348A
- Authority
- GB
- United Kingdom
- Prior art keywords
- card
- check
- read
- person presenting
- check number
- Prior art date
- Legal status (The legal status is an assumption and is not a legal conclusion. Google has not performed a legal analysis and makes no representation as to the accuracy of the status listed.)
- Withdrawn
Links
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
- 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
- G07F7/1058—PIN is checked locally
- G07F7/1066—PIN data being compared to data on card
Landscapes
- Physics & Mathematics (AREA)
- General Physics & Mathematics (AREA)
- Credit Cards Or The Like (AREA)
- Control Of Vending Devices And Auxiliary Devices For Vending Devices (AREA)
- Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
Abstract
A method and apparatus for checking that a person presenting a credit card is entitled to use that card, the card having a card number which can be read from the card and an associated check number known only to the authorised user of the card. The card number is related to the check number by a predetermined formula. The card number is read, the check number associated with the read card number is calculated in accordance with said formula, and the calculated check number is compared with a check number received from the person presenting the card, the establishment of a predetermined relationship between the compared check numbers indicating that the person presenting the credit card is to be accepted as the authorised user of the credit card.
Description
SPECIFICATION
Credit card checking method and apparatus
The present invention relates to a method and apparatus for checking that a person presenting a credit card to effect a payment is entitled to use that card.
The term credit card is used herein to mean any token carrying its own number which can be used to obtain goods or services, the cost of the goods or services supplied being charged to an account with which the token is associated. Such tokens are known by a variety of names, e.g. credit cards, cash cards, account cards etc.
Credit cards generally support a strip of material upon which the authorised user writes his or her signature as soon as the card is received. When the card is used a pre-printed slip is prepared onto which the card number is entered with details of the purchase concerned including the name and address of the vendor. Usually the card has raised numbers and letters on its surface giving details of the authorised users account and this information is transferred to the pre-printed slip in a simple machine which also adds the vendors details automatically.
If a credit card is lost by the authorised user it can fall into the hands of a criminal who will use the card to make purchases. As the card carries the authorised users signature the criminal can copy it sufficiently accurately to convince the vendor to part with goods. In short, the card itself carries all the information needed by an unauthorised user to obtain goods and services at no expense to himself.
As a result in the United Kingdom alone losses due to unauthorised use of credit cards amount to many millions of pounds annually.
Many banks now issue customers with so-called cash-cards that can be used to draw cash from the customers current account. The cash-card includes a magnetic strip carrying coded information identifying the customers account. The account number may or may not be shown on the card. When the cash-card is inserted into a cash dispensing machine the customer keys in a four digit check number and the amount of cash he wishes to withdraw. The machine compares the keyed-in check number with a stored check number associated with the customers account and if the check numbers are identical dispenses the required cash, assuming the account can stand it of course.
If a criminal finds a cash-card it is of no use to him unless he knows the associated check number.
Except in very unusual circumstances this is not the case as there is nothing on the card from which the check number can be derived. As a result unauthorised use of cash-cards is not a widespread problem.
The cash-card system requires every cash dispenser to be linked to a central computer from which the customer's account balance can be read so that withdrawals by customers without adequate funds in their accounts can be prevented. It therefore does not involve any great additional expense to store a check number with the account information and read the check number with the required account information each time a customer wishes to withdraw cash. Only a relatively small number of dispensers are in use and as they are filled with cash they must be relatively massive and expensive arrangements in any event.
Theoretically a similar system to that operated in respect of cash-cards could also be operated in respect of ordinary credit cards but in practice such a system could not be economically operated. There are many tens of thousands of establishments accepting payment by credit cards and to provide each of them with a terminal linked tb a central computer would be grossly expensive. Check numbers could be vertified verbally over the telephone by the person presented with a card reading out the card number and a check number supplied by the card user to the credit card company for verification, but even this would involve considerably telephone costs and much unacceptable delay.
It is an object of the present invention to provide a method and apparatus for preventing unauthorised use of credit cards by operating a check number system which does not require access to centrally held information for vertification.
According to the present invention, there is provided a method for checking that a person presenting a credit card is entitled to use that card, the card having a card number which can be read from the card and an associated check number known only to the authorised user of the card, characterised in that the check number is related to the card number by a predetermined formula, the method comprising reading the card number, calculating the check number associated with the read card number in accordance with said formula, and comparing the calculated check number with a check number received from the person presenting the card, the establishment of a predetermined relationship between the compared check numbers indicating that the person presenting the credit card is to be accepted as the authorised user of the credit card.
The invention also provides an apparatus for checking that a person presenting a credit card is entitled to use that card, the card having a card number which can be read from the card and an associated check number known only to the authorised user of the card, characterised in that the check number is related to the card number by a predetermined formula, and the apparatus comprises means for receiving the card number read from the card, means for calculating the check number associated with the read card number, means for receiving a check number from the person presenting the card, means for comparing the calculated check number with the received check number, and means for indicating whether or not a predetermined relationship has been established between the compared check numbers.
Preferably the predetermined relationship to be established between the compared check numbers is identity.
The card number may be visually read and entered into the apparatus via a keyboard or may be read automatically directly from the card. In the latter case the card number may be incorporated on for example a magnetic strip secured to the card and need not be visually readable.
It is of course necessary for the formula relating the check number to the card number to be relatively complex to prevent a criminal working out the check number. The necessary degree of complexity can however be readily achieved using microelectronic components of the type commonly used in electronic calculators. A formula which would take several hours to work through manually using an electronic calculator can be automatically worked through in an acceptably short time by an appropriately designed electronic circuit. It would be extremely difficult to work out the formula even if one was aware of several card number/check number combinations even with access to considerable computing power.
Preferably the apparatus is associated with a printer which prints out the card number and any other required information after a checking procedure has been completed. This makes it possible to provide a hard copy record of a transaction indicating that the checking procedure has been followed.
Credit card companies could then encourage the use of the checking apparatus by charging more for handling transactions effected without use of the checking apparatus to cover the increased risk of frauds with such transactions.
Each apparatus could have stored in it information specific to the premises at which it is used, a number specific to the apparatus, and even a clock/calender so that the printer could complete preprinted slips with at least as much information as is printed by the mechanical devices currently in use. If automatic card reading is also available, the use of the checking apparatus will be at least as easy as current procedures which do not involve any checking.
Embodiments of the present invention will now be described, by way of example, with reference to the accompanying drawings, in which Figure l is a schematic diagram of one embodiment of the present invention made up from discrete components;
Figure 2 is a flow chart illustrating a sequence of steps to be taken in any embodiment of the invention utilising a central processor;
Figures 3 to 6 illustrate in greater detail certain of the steps shown in Figure 2; and
Figure 7 is a schematic diagram of the components forming the embodiment of the invention for impementing the steps shown in Figure 2.
Referring to Figure 1, the illustrated embodiment of the invention comprises an input device 1 enabling a card number to be entered. The input device 1 may be a simple keyboard if cards are used which cannot be read automatically or for example a magnetic strip reader or bar-code reader if automatic reading of the card number is possible. The card number input via the device 1 is stored in a card number register 2.
The card number will in accordance with normal practice include a check digit such that its validity can be checked by performing a relatively simple arithmetic operation. Accordingly, a validity check network 3 is provided which performs the appropriate operation on the number stored in the register 2 and illuminates a lamp 4 and enables a comparator 5 if the stored number is valid. This initial procedure alerts the user of the apparatus if an error has been made in introducing the card number.
The stored card number is supplied to a hash network 6 which performs a relatively complex arithmetic operation to derive from the card number a check number. For example, if the card number has twelve digits, each digit could be multiplied by a different four digit prime number, the resultant numbers could be added together, and the resultant sum could be reduced in a predetermined manner to produce a four digit check number. Considerably more complex operations than this can be performed with available microelectronic components however and it would simply be a matterforthe credit card company to decide upon the degree of complexity required.
The person presenting a card to effect a transaction then keys in his check number via keyboard 7.
The check number is stored in register 8 and compared with the calculated check number by comparator 5. If the two compared numbers are identical, the comparator 5 illuminates a lamp 9 to indicate that the card should be accepted and enables a printer 10 which prints out the card number stored in the register 2. The output of the printer constitutes a hard copy record of the fact that the checking procedure has been carried out. If desired, a further register (not shown) may be provided which stores information for example specific to the premises at which the apparatus is located. This information can then be printed out with the card number onto pre-printed stationery.
The above described embodiment is assembled from a number of discrete components. It will be appreciated however that the invention may be put into effect more economically by using available microprocessor components suitably programmed.
Indeed, if produced in large quantities it would be economically sensible to produce a "custom chip" designed specifically for the purpose.
Figure 2 is a flow diagram illustrating a program which could be used to put the present invention into effect. The term "long number" identifies the card number and the term "short number" identifies the check number. It will be seen that the two numbers are introduced, their self-consistency is checked, and then the short number is checked for consistency with a locally generated check number derived from the long number. If and only if all three consistency checks produce a positive result, the long number and local information will be printed.
Figure 3 shows in more detail the portion of the program shown in Figure 2 as "read long number".
A similar arrangement is provided for "read short number" in Figure 2.
Figure 4 shows in more detail the portion of the program shown in Figure 2 as "check self consistency of long number", it being assumed that all card numbers that are issued by the card company will if correctly entered satisfy the relationship shown.
Figure 5 shows the "check self consistency of short number" portion of Figure 2. As the short number has no check digit all that can be checked is that the entered number has the correct number of digits, in this case four.
Figure 6 shows the "check long number is consistent with short number" portion of Figure 2. It will be seen that the internally generated check number is calculated by multiplying each digit by a respective prime number, forming the sum of the resultant number, reducing the sum by modulo 9973, (i.e.
taking away 9973 from the sum a sufficient number of times to leave a remainder which is less than 9973) and comparing the remainder with the short number. Identity between the remainder (that is the locally generated check number) and the short number (that is the check number received from the person presenting the card) is taken to mean that the card has been presented by the authorised user of the card.
Figure 7 diagrammatically illustrates a microprocessor based embodiment of the invention which can be programmed to implement the sequence of steps illustrated in Figure 2. This embodiment comprises a central processor 11, a read only memory 12, a random access memory 13, a keyboard 14, a printer 15, an array of indicators 16, and the necessary interfaces and input/output devices. It will be apparent to persons skilled in the application of microprocessors how to program the system of Figure 7 to implement the sequences of
Figure 2.
CLAIMS (Filed on 14.1.83)
1. A method for checking that a person presenting a credit card is entitled to use that card, the card having a card number which can be read from the card and an associated check number known only to the authorised user of the card, characterised in that the check number is related to the card number by a predetermined formula, the method comprising reading the card number, calculating the check number associated with the read card number in accordance with said formula, and comparing the calculated check number with a check number received from the person presenting the card, the establishment of a predetermined relationship between the compared check numbers indicating that the person presenting the credit card is to be accepted as the authorised user of the credit card.
2. An apparatus for checking that a person presenting a credit card is entitled to use that card, the card having a card number which can be read from the card and an associated check number known only to the authorised user of the card, characterised in that the check number is related to the card number by a predetermined formula, and the apparatus comprises means for receiving the card number read from the card, means for calculating the check number associated with the read card number, means for receiving a check number from the person presenting the card, means for comparing the calculated check number with the received check number, and means for indicating whether or not a predetermined relationship has been established between the compared check numbers.
3. An apparatus according to claim 2, wherein the predetermined relationship to be established between the compared check numbers is identity.
4. An apparatus according to claim 2 or 3, wherein the receiving means comprises a keyboard through which a visually read card number may be entered.
5. An apparatus according to claim 2 or 3, wherein the receiving means is adapted to read the card number automatically directly from the card.
6. An apparatus according to claim 5, comprising a magnetic strip reader for reading a magnetic strip secured to the card.
7. An apparatus according to any one of claims 2 to 6, comprising a printer which prints out at least the card number after a checking procedure has been completed.
8. An apparatus according to claim 7, comprising means for storing information specific to the premises at which it is used and/or information specificto the apparatus and/or a clock/calendar providing information for printing out by the printer.
9. A method for checking that a person presenting a credit card is entitled to use that card substantially as hereinbefore described with reference to the accompanying drawings.
10. An apparatus for checking that a person presenting a credit card is entitled to use that card substantially as herein before described with reference to the accompanying drawings.
**WARNING** end of DESC field may overlap start of CLMS **.
Claims (10)
1. A method for checking that a person presenting a credit card is entitled to use that card, the card having a card number which can be read from the card and an associated check number known only to the authorised user of the card, characterised in that the check number is related to the card number by a predetermined formula, the method comprising reading the card number, calculating the check number associated with the read card number in accordance with said formula, and comparing the calculated check number with a check number received from the person presenting the card, the establishment of a predetermined relationship between the compared check numbers indicating that the person presenting the credit card is to be accepted as the authorised user of the credit card.
2. An apparatus for checking that a person presenting a credit card is entitled to use that card, the card having a card number which can be read from the card and an associated check number known only to the authorised user of the card, characterised in that the check number is related to the card number by a predetermined formula, and the apparatus comprises means for receiving the card number read from the card, means for calculating the check number associated with the read card number, means for receiving a check number from the person presenting the card, means for comparing the calculated check number with the received check number, and means for indicating whether or not a predetermined relationship has been established between the compared check numbers.
3. An apparatus according to claim 2, wherein the predetermined relationship to be established between the compared check numbers is identity.
4. An apparatus according to claim 2 or 3, wherein the receiving means comprises a keyboard through which a visually read card number may be entered.
5. An apparatus according to claim 2 or 3, wherein the receiving means is adapted to read the card number automatically directly from the card.
6. An apparatus according to claim 5, comprising a magnetic strip reader for reading a magnetic strip secured to the card.
7. An apparatus according to any one of claims 2 to 6, comprising a printer which prints out at least the card number after a checking procedure has been completed.
8. An apparatus according to claim 7, comprising means for storing information specific to the premises at which it is used and/or information specificto the apparatus and/or a clock/calendar providing information for printing out by the printer.
9. A method for checking that a person presenting a credit card is entitled to use that card substantially as hereinbefore described with reference to the accompanying drawings.
10. An apparatus for checking that a person presenting a credit card is entitled to use that card substantially as herein before described with reference to the accompanying drawings.
Priority Applications (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| GB08202914A GB2114348A (en) | 1982-02-02 | 1982-02-02 | Credit card checking method and apparatus |
Applications Claiming Priority (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| GB08202914A GB2114348A (en) | 1982-02-02 | 1982-02-02 | Credit card checking method and apparatus |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| GB2114348A true GB2114348A (en) | 1983-08-17 |
Family
ID=10528044
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| GB08202914A Withdrawn GB2114348A (en) | 1982-02-02 | 1982-02-02 | Credit card checking method and apparatus |
Country Status (1)
| Country | Link |
|---|---|
| GB (1) | GB2114348A (en) |
Cited By (6)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| FR2558622A1 (en) * | 1984-01-19 | 1985-07-26 | Caille Roger | Device for checking the authenticity of the writer of a cheque |
| FR2566152A1 (en) * | 1984-06-19 | 1985-12-20 | Valade Jean | Method for identification and authentication, by anti-fraud mathematical code, which can be affixed to documents or objects and provides absolute protection against false use and protection for lost or stolen items |
| FR2577704A1 (en) * | 1985-02-18 | 1986-08-22 | Systemes Sud | Method and machine for checking bank or postal cheques |
| FR2616937A1 (en) * | 1987-06-17 | 1988-12-23 | Bonnaval Lamothe Michel | Transcoder for monitoring the process of reading/comparison of a coded document |
| WO1991003801A1 (en) * | 1989-09-08 | 1991-03-21 | Martin Reef | Fraud detection in credit cards |
| EP0718812A1 (en) * | 1994-12-21 | 1996-06-26 | VDO Adolf Schindling AG | Method for identification of the user of a taximeter |
-
1982
- 1982-02-02 GB GB08202914A patent/GB2114348A/en not_active Withdrawn
Cited By (6)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| FR2558622A1 (en) * | 1984-01-19 | 1985-07-26 | Caille Roger | Device for checking the authenticity of the writer of a cheque |
| FR2566152A1 (en) * | 1984-06-19 | 1985-12-20 | Valade Jean | Method for identification and authentication, by anti-fraud mathematical code, which can be affixed to documents or objects and provides absolute protection against false use and protection for lost or stolen items |
| FR2577704A1 (en) * | 1985-02-18 | 1986-08-22 | Systemes Sud | Method and machine for checking bank or postal cheques |
| FR2616937A1 (en) * | 1987-06-17 | 1988-12-23 | Bonnaval Lamothe Michel | Transcoder for monitoring the process of reading/comparison of a coded document |
| WO1991003801A1 (en) * | 1989-09-08 | 1991-03-21 | Martin Reef | Fraud detection in credit cards |
| EP0718812A1 (en) * | 1994-12-21 | 1996-06-26 | VDO Adolf Schindling AG | Method for identification of the user of a taximeter |
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Legal Events
| Date | Code | Title | Description |
|---|---|---|---|
| WAP | Application withdrawn, taken to be withdrawn or refused ** after publication under section 16(1) |