GB2276746A

GB2276746A - Transaction card verification system

Info

Publication number: GB2276746A
Application number: GB9306983A
Authority: GB
Inventors: Malcolm Gold
Original assignee: Individual
Current assignee: Individual
Priority date: 1993-04-03
Filing date: 1993-04-03
Publication date: 1994-10-05
Also published as: GB9306983D0

Abstract

A transaction card verification system comprises a card scanning unit 6 and an identification code input unit 2 and means for connecting the system to a remote computer. In operation the scanning unit is used by a first user, such as a user offering goods for sale and the identification input unit is used by a second user such as a prospective purchaser of the goods. The second user inputs an identification code which is checked against a code associated with the details of the card in a remote computer and a transaction verification signal issued when the codes match. Conflicting codes stop the transaction proceeding. <IMAGE>

Description

TRANSACTION CARD VERIFICATION SYSTEM Background This invention relates to a transaction card verification system.

The use of credit cards for purchasing goods is now a well established means of carrying out transactions.

However, the use of credit cards creates problems that do not exist with cash purchases. Unlike the use of cash, credit cards necessitate verifying that the card actually belongs to the user. Usually, the system employed for verification involves obtaining a signature from the user and checking this against the signature on the back of the card. If the signatures match the transaction goes ahead.

Unfortunately, signatures are not always difficult to counterfeit and transactions involving stolen cards and forged signatures are frequently reported. It is estimated that the credit card companies lose many millions by this means every year. In order to try and partially overcome this problem the credit card companies provide a service whereby the credit available on a card can be ascertained by accessing a central system and giving the credit card number. A check is performed on the card number and the credit situation on the card is made available. If cards are reported as lost or stolen all credit is removed and thus the central system will effectively stop transactions for cards that have been reported as lost or stolen as no credit will be available on such cards.Unfortunately, the system does not overcome the problem of counterfeited signatures if the stolen or lost card has not yet been reported to the credit card company. In addition, the system relies on a checking system which many retailers either do not use or only use for large transactions. Small transactions are not always monitored in such a strict way and thus no effective verification system exists that is universally applicable.

Another attempt at surmounting the security problems associated with the use of credit cards is for the retailer to request further identification from the purchaser. Such identification is often in the form of a driving licence or passport. However it will be appreciated that this method is somewhat inconvenient for the bone fida purchaser.

Furthermore, in many cases the credit card is lost or stolen together with the forms of identification and these could be provided by the prospective fraudulent user if requested.

It is an object of the present invention to try and overcome these problems. Furthermore, it will be appreciated that the apparatus of the present invention provides a portable verification system for credit cards that is convenient and easy to use and also provides a very secure check that the purchaser is the authorised user of the card.

It will be appreciated that the present system applies to all types of transaction cards such as credit cards, charge cards, bank cards and any other cards used for purchasing goods or services.

According to the present invention there is provided a transaction card verification system comprising; a card scanning unit, an identification code input unit, and means for connecting the system to a remote computer, wherein in operation the scanning unit is used by a first user and the identification code input unit is used by a second user such that details from the card may be combined with a code from the identification unit by the computer and a transaction verification signal issued when the code is correct.

The central computer finds the unique secret identification code for the card scanned. The identification code in the central system and the identification code input from the second user are compared.

Matching codes cause the transaction to be cleared but conflicting codes stop the transaction proceeding.

Typically, the said first user is a person offering goods for sale and the said second user is a prospective purchaser.

Typically, the scanning unit is fitted with a display that gives appropriate instructions to both users during the course of the transaction.

Preferably, the personal identification code input unit is a keyboard linked to the scanning unit preferably by means of a flexible cable, although the unit could be separate and employ a radio transmitter in which case the remainder of the system would incorporate a receiver.

Typically, the identification unit is fitted with a slit for "swiping" the card and a scanner within the slit for reading the card during the swiping action.

The scanning unit may also be so linked to a central system that the credit available on the card can also be ascertained before clearing the transaction.

Additionally, the personal identification code input unit can have a guard extending around the periphery so that it is difficult to observe the inputting of the code other than from the view point of the said second user.

The invention will now be described with reference to the accompanying drawings wherein: Figure 1 shows an example of a verification system with a display and a connection to a central computer.

In Figure 1 a keyboard (2) is connected via a cable (4) to an identification unit (6). The identification unit comprises a rectilinear housing with an elongate slit (8) extending laterally below and aligned to the housing upper surface, the said slit being adapted to receive a transaction card (10). A display (12) is mounted above the upper surface of the identification unit housing, spaced from and connected to the upper surface by an elongate support rod (14) extending vertically above the upper surface. Output and input cables (16, 18) are shown connecting the identification unit to a central computer.

The slit houses a scanner (not shown) for reading the transaction card. Electronic circuitry housed within the scanning unit and display passes digital information obtained from the card and from the second user via input port (20), to the central system and then receives clearance or refusal therefrom.

A method of using the verification system will now be described. The card (10) is "swiped" through slit (8) wherein the scanner reads the card. The cards number is then passed to the central system and the display prompts the purchaser to input the personal identification code via the keyboard. The personal identification code is passed via the input port (20) to the central system wherein it is compared with the personal identification code of the card.

If the card personal identification code matches the user personal identification code the central system clears the transaction and sends a signal to the scanning unit, and the display (12) indicates that the transaction can go ahead. If the codes do not match the central system sends a negative signal and the display (12) indicates that the transaction can not go ahead. In that case the card can be retained by the first user.

It will be appreciated that the above embodiment has been described by way of example only and that many variations are possible without deparing from the invention.

Claims

1. A transaction card verification system comprising; a card scanning unit, an identification code input unit, and means for connecting the system to a remote computer, wherein in operation the scanning unit is used by a first user and the identification code input unit is used by a second user such that details from the card may be combined with a code from the identification unit by the computer and a transaction verification signal issued when the code is correct.

2. A transaction card verification system as claimed in claim 1, wherein the said first user is a person offering goods or services for sale and the said second user is a prospective purchaser.

3. A transaction card verification system as claimed in claim 1 or claim 2, wherein the scanning unit is fitted with a display that gives appropriate instructions to both users during the course of the transactions.

4. A transaction card verification system as claimed in claims 1,2 and 3, wherein the personal identification code input unit is a keyboard linked to the scanning unit.

5. A transaction card verification system according to claim 4, wherein the personal identification code input unit is linked to the scanning unit by means of a flexible cable.

6. A transaction card verification system according to claim 5, wherein the personal identification code input unit is a remote device.

7. A transaction card verification system according to claim 6, wherein the personal identification code input unit employs a radio transmitter and the remainder of the system incorporates a receiver.

8. A transaction card verification system according to claim 1 to 7, wherein the identification unit is fitted with a slit for swiping the card and a scanner within the slit for reading the card during the swiping action.

9. A transaction card verification system according to claim 1 to 8 wherein the scanning unit is linked to a central system so that the credit available on the card can also be ascertained before clearing the transaction.

10. A transaction card verification system according to claims 1 to 9, wherein the identification code input unit has a guard extending around the periphery thereof so that it is difficult to observe the inputting of the code other than from the view point of the said second user.