GB2388459A

GB2388459A - Payment card with revealable code

Info

Publication number: GB2388459A
Application number: GB0208761A
Authority: GB
Inventors: Nigel Graham Walters
Original assignee: Individual
Current assignee: Individual
Priority date: 2002-04-17
Filing date: 2002-04-17
Publication date: 2003-11-12
Also published as: GB0208761D0

Abstract

The payment card (1) has machine readable data storage such as a magnetic strip (2) stored or storable on which are data uniquely identifying the payment card (1). Indicia representing pass code means or a PIN number are covered by a zone (4) of opaque material which is removable for use.

Description

1 2388459

PAYMENT CARD AND SYSTEM FOR USE, THEREOF

The present invention relates to the field of secure payment systems and means to implement

them. More particularly but not exclusively. it relates to a prepayment card and a system for use thereon adapted for secure use both in a shop and over the Internet.

Traditional retail organisations are increasingly expanding into ecommerce. providing their customers with the option of purchasing the organisation's products via a dedicated Internet we,site oi- Ll,c like. This is already an estabiisiled significant market sector though in some regards. it is only in its infancy and is predicted to have the potential to grow much further.

One issue which has restricted the achievement of the full potential of such systems is secure payment. Particularly when e-commerce is used in parallel with a traditional system of retail oiicis. there its a reiremcnt lor a singic means ol payment which can he used troth ill store and over the Internet Standard credit or debit cards are usable in this way. hut there is c-idc.hi. csunc resi.rance lo using a credit or cicihit card over Bloc Internet. prompted.

for example, by concerns about the liabilities which could ensue from the misuse of a nefariously intercepted credit card number. It is also a problem that a significant number of target customers. particularly children. will not hold credit or debit cards (and few parents will wish to give children access to their cards).

Traditional systems such as book tokens or gift vouchers provide a means of payment which is reasonably secure, as they can only be used in the intended type of outlet. They are thus particularly suitable as gifts t'or children. However, such vouchers are not well suited tor use over the InterneL nor when making purchases by telephone.

Pre-paid cash cards'', such as phone cards' are well known, but they require dedicated terminals for use. and so are also not adapted for general use over the Internet.

Retail outlets are normally equipped with dedicated terminals which read data from credit or debit cards. and communicate with a central computer of the organization which issued the card to obtain authorization for a transaction using the card. Data held on the card can be used to cause the terminal to contact the appropriate central computer. Such terminals are at present based on magnetic-tape or electronic chip technology. although it is quite possible that other technologies will be used to perform the same functions in future. Such terminals are known by a variety of names, such as Swipe-card" terminals, EFTP()S terminals (electronic Funds Transfer at Point ot'Salc) or just 'point of sale" terminals. 'I'hey will be referred to herein under the name 'point of sale terminal" as a convenient generic term t'or Àucl1 a dCNiCL'. WhL'ihL'r or not it is physically present at a point ot' safe. Ace such point ol sale terminals are so widespread, it would he convenient for a novel means of payment to be US.thlC tile! L'\h ittI. \\ itilOUt IllOdi t iCatiOll.

( 3 It is therefore an object of the present invention to provide a means of payment which may be used when malting, purchases both in retail outlets and more securely when shopping bV teieEhone or over the internet. It is a further object of the present invention to provide a payment system utilising such a means of payment.

According to a first aspect of the present invention, there is provided a payment card comprising machine readable data storage means stored or storable on which are data uniquely identifying said payment card. indicia representing pass code means, and a zone of opaque material removably covering said indicia.

Pret'erably. said machine-readahle data storage means comprises a magnetic storage means, t'or example. a strip of magnetic storage tape.

Alternatively, the machine-readable data storage means comprises electronic chip means.

The hldicia may be readable by eye and pret'erably comprise a code or PIN number, imprinted on to the payment card.

Second indicia may advantageously be provided which are also readable by eye and may comprise a serial or account number. unique to a particular payment card, which may he imprinted or embossed on to the payment card.

he Cone of' opaque material may comprise a layer ot' coaling material, such as an opaque 1; ' paint.

Prci'erably, the zone of opaque material is adapted to be removable by scraping Edith a hard object, such as a key or a coin.

I'he machine-readable data storage means may be adapted to store instructions for a point of sale terminal, such as instructions to cause the terminal to contact a specific central computer.

I'hc machine-readable data storage may be adapted to store activation data denoting whether the payment card has been activated for use in a payment system. and additionally or alternatively, usage data denoting that the card has been used either fully or in parts or is no longer activated.

/iccording to a second aspect of the present invention, there is provided a payment system adapted for use in transactions both in retail outlets and over the Internet, comprising a plurality of payment cards as described above in the first aspect of the invention. at least tone point of sale terminal adapted to read data stored on said payment cards, a central computing means connectable with said at least one point of sale terminal and an e-commerce processing means connected to the central computing means, the central computing means storing account data corresponding to each said payment card including an unique identifier therefore the corresponding pass code means as indicated on the payment card, and a monetary value ascribed to the payment card wherein a user of the payment card may employ all or part of said monetary value either by causing, the payment card to be passed tl?''"l, p<,i't,i'slc term < h! ipitti'g to the e-conterce pr't';sir,L' ramp Alec unique identifier ot'the payment card and the corresponding pass code means revealed by cow ilk, talc / \l't1c ateril 1'r tale pavement coral.

( s Preferably, the payment system further comprises a card activating means, connected or connectable with the central computing means adapted to register that a particular payment card has been activated for use, for example on the sale inereof, and the account data stored on the central computing means includes a record of whether or not each payment card has been activated.

Advantageously. the card activating means may comprise means to select a monetary value to be ascribed to the payment card. and may pass this value to the central computing means t'or inclusion in the account data for the payment card.

Optionally. the card activating means is adapted to input to the machinereadable data storage means of'the payment card. activation data denoting that the payment card has been activated for use.

Preferably. the or each said point of' sale terminal comprises means to enter a transaction value, said transaction value and the identity of' a payment card prof'f'ered are transmitted to the central computing means' and the central computing, means is adapted to compare the transaction value to the monetary value stored for the proffered payment card.

I'he central computing means may be adapted to decrement the monetary value of a prof't'ered payment card by an amount corresponding to a transaction value less than or equal to the monetar! \aluc stored Or said payment card. and to transmit a signal to the point of' sale terminal that the transaction is authorized.

The central computing means may be adapted to reduce the monetary value of a proffered payment card to zero when a transaction value exceeds the monetary value stored for said payment card, and to transmit a signal to the point of sale terminal that the transaction is authorisetf as part payment.

Alternatively, the central computing means may be adapted to reject a transaction the value elf' which exceeds the value of' the monetary value stored for said payment card, and to transmit a signal to the point of sale terminal accordingly.

The central computing means may he adapted so that when the monetary value stored for a particular payment card is reduced to zero. it records that the payment card has been deactivated and transmits a signal to the point of sale terminal, which may optionally be adapted to input this data to the machine-readable data storage means of the payment card and/or to print this information on to the payment card in a form readable by eye.

Preferably. the e-commerce processing means comprises an Internet wcbsite, accessible by a consumer. Advantageously, the website is provided with means to input the unique identifier of' the payment card and the corresponding pass code means, for example a PIN numUcr' such that they may he transmitted to the central computing means along with a transaction value, and the central computing means is adapted to compare the pass code with that stored in the account data lor the payment card proffcreti. and to reject time transaction il the! do not match.

The e-commerce processing means may alternatively or additionally be provided with means for a telephone sales operator to enter thereinto data from a payment card, supplied over the telephone h\ a consumer.

The payment system may t'urther comprise card recharging means so adapted that the monetary value ascribed to a payment card presented thereto may be increased, the account data stored by the central computing means for said payment card being amended accordingly. Embodiments of the invention will now be more particularly described, by way of example and with reference to the accompanying drawings, in which: Figure 1 shows a payment card embodying the invention; and Figure 2 is a schematic view of a payment system using the payment card of Figure 1.

Referring now to the drawings and to Figure 1 in particular, a payment card 1 comprises a plastics material. such as PVC' sheets or laminated cardboard. or any other such material sufficecntly durable to stand up to handling without deforming or becoming significantly dog-

cared. The payment card I is provided with a magnetic tape strip 2. an individual account or serial number 3 printed or embossed onto the surface of the card and a zone 4 of opaque removable material such as a metallic ink concealing a code or PIN number for the payment c. c! 1.

( 8 The tape strip 2 can be encoded with data such as the account or serial number 3 of the payment card 1, a quantity of money which the payment card currently "holds" or represents.

and sucl1 other information as will permit the payment card 1 to interact with a conventional on-line card authorization system via a point of sale terminal. This authorization system may use the APACS or ISO formats which are standards within the banking industry. The tape strip 2 also bears a code to denote that the payment card 1 has been activated and duly entered into a payment system.

The zone 4 of opaque material may be scratched off, for example with a coins when the code or PIN number that it conceals is required to make an Internet or telephone purchase. as described below.

Figure 2 shows, in outline, a payment system using payment cards I as described above. A payment card I A is supplied to a retailer with the serial or account number 3 and the zone 4 of opaque material concealing a code or PIN number already applied. The tape strip 2A of this payment card IA is already encoded with the serial or account number 3, and may be encoded with a prc-detcrmined value. t'or example. ú20 or ú50. This value may be marked on the card itself. A customer may then purchase such a card l'or the value. optionally plus a premium. In an alternative, the card may be stored in an unactivated condition and when the customer pays the retailer l'or the payment card 1A, the retailer may then pass it through a card ucti\ator a. the card ictiw.,or c<,mmunicatec With a central host computer 6, inI'omlin it that the payment card I A has hecn paid for and has been activated. 'I'he card activator 5 then

magnetically writes on the tape strip 2A a code to denote that the payment card 1 A has been activated. The host computer 6 also records this information.

In another alternative. the payment card 1A may be supplied without a predeterrnined value encoded on to the tape strip 2A' and the retailer then uses the card activator to encode a value on to the tape strip 2A depending on the customer's payment. and to inform the host computer 6 of that value. The card activator 5 may then be provided with means to imprint the value chosen on to the payment card 1A.

I lowever it is activated' the customer thus has a payment card 1 holding" a set amount of money. while the host computer 6 holds a record of the individual serial fir account numher of'the payment card 1, the amount ol' money that it ' holds" and the code or PIN number of that payment card. The customer may use the payment card 1 him- or herself, or may, for example. Drive it to a third party as a 'ift.

silo use the payment card I B in a retail outlet. which may be an outlet of the retailer who sold the payment card 1 A. or optionally an outlet of a second retailers which is a fellow member alone, with the first mentione1 retailer of a common schcmc. a cusioiner hantis the payment card 1 B to the retailers in payment for a selected item. I'he retailer passes the payment card 13 through a card authorization terminal 7. which may be a standard point of sale terminal.

such as is used for credit and debit card transaction. The information encoded on to the tape strip SIB of the payment card I B causes the authorization terminal 7 to make contact with an uth,risation unlit X. viich is dedicated to the retailer or scheme in queti'n I he authorization unit 8 is linked to the host computer 6.

The authorisation terminal 7 passes the serial or account number 3 of the payment card I Be i and the value of the payment to be made, to the authorisation unit 8. The authorisation unit 8 then passes the serial or account number 2 to the host computer 6, which checks that the payment card IN has been properly activated, and what value it represents, and passes this information back to the authorisation unit 8.; If the payment card 1 B has been properly activated, and the payment required is less than or equal to the value recorded tor the payment carol 1 B. the host computer 6 reduces the value recorded lor the payment card IB by the appropriate amount and transmits an authorisation cocie via the authorisation unit 8 to the authorisation terminal 7, allowing the transaction to be completed. 'I'he value ot' the transaction is credited to an account assigned to the retailer making the sale. In some embodiments of the invention, the reduced value of the payment card 1 Ps after the transaction may he displayed by the authorisation terminal 7, or it may be imprinted thereby on the payment card I B itself'.

If the payment required is greater than the value recorded on the host computer 6 for the payment card I B. the transaction may optionally be cancelled, or the entire recorded value of the payment card I B may he accepted in part-payment. I In further embodiments of the invention if the value of the transaction is less than the value recorded on the host computer 6 for the payment card I B. the retailer may choose to give the customer cash as change and take the l'ull value of the payment card I B as credit to their own ciCCOlillt.

If the payment card IB has not been activated and recorded as such, for example if it has been stolen during distribution to the retailer, the tape strip 2B will not bear the appropriate activation code. Additionally or alternatively. the host computer 6 will have no record oJ'the particular payment card I B having been activated, and will signal this feet via the authorization unit to the authorization terminal 7. Thus. even if a miscreant manages to forge an activation code on the tape strip 2B. the payment card I B cannot be used. In either case the authorization terminal 7 will cancel the transaction and alert the retailer.

When the net value c,1'a payment card has been reduced to zero. in one or a plurality of' transactions. the payment card may be permanently inactivated. The host computer 6 will rec,rd this i:act. and the payment card will he marked as having been used.

To use the payment card 1 C' in a transaction made over the Internet, the consumer removes the zone 4C of opaque material from the payment card iC'. so that he can read the code or PIN number I] therebcneath. Using a personal computer 9 the consumer connects via the Intcrnct, preferably via a dedicated website. to a purchasing module 10. He may select an item to purchase and then to pay for it. enter the serial or account number 3C of' the payment card' l'ollowed by the collie or PIN number 1'' optionally repeatedly for added security. The purchasing module I () is linked to the host computer 6. so that the serial or account number 3C' and the code or PIN number 11 may be checked against the records held by the host computer 6. to ensure that they match. The host computer 6 also signals to the purchasing module 1() ii'the payment card 1C'has not been validly activated.

()nce the host computer 6 has recognized the payment card] C as authentic and activated. the il.ulhaciiolmra proceed as described above tor a p'rchasc in a shop.

( 12 Purchases may be made over the telephone using such a payment card IC, as long as an oincrator taking an order for the purchase has access to a computer connected to a purchasing; nodule 1). The consumer quotes the serial or account number 3C and the code or PIN number I I of the payment card 1(:' over the telephone' and the transaction then proceeds as described above for an Internet transaction.

In alternative embodiments of the invention, facilities may be provided for a consumer to top ups an existing payment card I by making a further payment to a retailers and causing the value of' the payment card I recorded on the host computer 6 to be incremented appropriately. 'ihe system may also have facilities for extra value to be credited to a third party's payment card 1, the serial or account number 3 of which is known to a person paying theref'or. In such embodiments in which the payment card 1 may continue to have value for a prolonged period. it may be beneficial for a PIN number to be supplied to a holder ol' the I payment card 1 in addition to or instead ot' the code or PIN number 11 imprinted on the payment card I itself. This reduces the security risk of carrying for a long time a payment card 1 from which the zone 4 ol'opaciue material may have been removed to reveal the code or PIN number 11.

While the invention is described above in terms of a card bearing a strip of magnetic tape it is cicarl\ possibi. to Corm to same Unctions using an electronic chip on the card. gi\Cn a card activator S and a card authorization terminal 7 capable of interacting with such a chip. It

is even possible to employ optically-readable means, such as a bar-code, in place of the strip of magnetic tape.

Furthermore. the configuration shown for the payrr.ent card, generally resembling, a conventional credit carol, is merely a convenient form, readily recognisable by users and adapted to be used with conventional point of'sale units. Other shapes and sizes of' payment card'' are feasible. as long as card activators and authorization terminals cooperable therewith are provided. The card" need not even be thin or flat as long as it is conveniently handlcable. The term payment card'' in this specification should theret'ore be interpreted

accordingly. payment means and system is thus provided which a consumer may use with equal t'acility and confidence in a retail outlet or when making purchases over the Internet or by telephone.

The payment means has a limited value, restricting the potential financial loss if it is stolen or its identity is divulged to a third party. It may also be freely transferred to a third party for example as a gift. and it ensures that the value of'the payment means is spendable only within the hounds of' the payment system in question.

For an operator of'the payment system. it has the benefit that payments by a consumer to obtain a payment card are made in advance. as for gift vouchers and the likes assisting cash thou. The security and convenience provided by the payment card and system should encourage increased use. particularly over the Internet.

Claims

' i: t CLAIMS

1. A payment card comprising machine-readable data storage means, stored or storable on which are data uniquely identifying said payment card, indicia representing pass code means, and a zone of opaque material removably covering said indicia.

2. A card as claimed in claim 1, wherein said machine-readable data storage means comprises a magnetic storage means, for example, a strip of magnetic storage tape.

3. A card as claimed in claim 1, wherein said machine-readable data storage means comprises electronic chip means.

4. A card as claimed in any one of the preceding claims, wherein the indicia are readable by eye and preferably comprise a code or PIN number, imprinted on to the payment card. 5. A card as claimed in any of the preceding claims, wherein the zone of opaque material comprises a layer of coating material, such as an opaque ink or paint, which is adapted to be removable by scraping with a hard object.

6. A card as claimed in any of the preceding claims, further comprising second indicia which are also readable by eye and may comprise a serial or account number, unique to a particular payment card, which may be imprinted or embossed on to the payment card.

Id; f F r e : l 7. A card as claimed in any one of the preceding claims, wherein the machine-readable data storage means is adapted to store instructions for a point of sale terminal, such as instructions to cause the terminal to contact a specific central computer.

8. A card as claimed in any one of the preceding claims, wherein the machine-readable data storage means is adapted to store activation data, such as whether the payment card has been activated for use in a payment system, and additionally or alternatively, usage data denoting that the card has been used either fully or in part, or is no longer activated. 9. A payment card substantially as described herein with reference to the Figures of the accompanying drawings.

10. A payment system adapted for use in transactions both in retail outlets and over the Internet, comprising a plurality of payment cards, each as claimed in any one of the preceding claims, at least one point of sale terminal adapted to read data stored on said payment cards, a central computing means connectable with said at least one point of sale terminal and an e-commerce processing means, connected to the central computing means, the central computing means storing account data corresponding to each said payment card including an unique identifier therefor, the corresponding pass code means as indicated on the payment cards and a monetary value ascribed to the payment card, wherein a user of the payment card may employ all or part of said monetary value either by causing the payment card to be passed through a point of sale terminal or by inputting to the e-commerce processing means the unique

identifier of the payment card and the corresponding pass code means, revealed by removing the zone of opaque material from the payment card.

( A payment system as claimed in claim 10, further comprising a card activating means, connected or connectable with the central computing means adapted to register that a particular payment card has been activated for use, for example on the sale thereof, and the account data stored on the central computing means includes a record of whether or not each payment card has been activated. i ] 2. A payment system as claimed in claim I 1, wherein the card activating means comprises means to select a monetary value to be ascribed to the payment card, and to: pass this value to the central computing means for inclusion in the account data for the payment card.

13. A payment system as claimed in either claim 11 or claim 12, wherein the card activating means is adapted to input to the machine-readable data storage means of the payment card activation data denoting that the payment card has been activated for use.

14. A payment system as claimed in any of claims 10 to 13, wherein the or each said i point of sale terminal comprises means to enter a transaction value, said transaction value and the identity of a payment card proffered being transmitted to the central computing means, and the central computing means is adapted to compare the transaction value to the monetary value stored for the proffered payment card.

t,! fi 1I' 'l 15. A payment system as claimed in any one of claims 10 to 14, wherein the central computing means is adapted to decrement the monetary value of a proffered payment card by an amount corresponding to a transaction value less than or equal to the monetary value stored for said payment card, and to transmit a signal to the point of sale terminal that the transaction is authorized.

16. A payment system as claimed in any one of claims 10 to 14, wherein the central computing means is adapted to reduce the monetary value of a proffered payment card to zero when a transaction value exceeds the monetary value stored for said payment card, and to transmit a signal to the point of sale terminal that the transaction is authorised as part payment.

17. A payment system as claimed in claim 16, wherein the central computing means is adapted so that when the monetary value stored for a particular payment card is reduced to zero, it records that the payment card has been deactivated and transmits a signal to the point of sale terminal, which may optionally be adapted to input this data to the machine-readable data storage means of the payment card and/or to print this information on to the payment card in a form readable by eye.

18. A payment system as claimed in any one of claims 10 to 17, wherein the e-commerce processing means comprises an Internet website, accessible by a consumer, said website being provided with means to input the unique identifier of the payment card and the corresponding pass code means or a PIN number, such that they may be transmitted to the central computing means along with a transaction value, and the central computing means is adapted to compare the pass code with that stored in the

( À l ( ( account data for the payment card proffered, and to reject the transaction if they do not match.

19. A payment system as claimed in claim 18, wherein the e-commerce processing means is alternatively or additionally provided with means for a telephone sales operator to enter thereinto data from a payment card, supplied over the telephone by a consumer.

20. A payment system as claimed in any one of claims 10 to 19, further comprising card recharging means, so adapted that the monetary value ascribed to a payment card presented thereto may be increased, the account data stored by the central computing means for said payment card being amended accordingly.

21. A payment system substantially as described herein with reference to the Figures of the accompanying drawings.