WO2001009855A1 - Transactions electroniques securisees - Google Patents

Transactions electroniques securisees Download PDF

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Publication number
WO2001009855A1
WO2001009855A1 PCT/AU2000/000902 AU0000902W WO0109855A1 WO 2001009855 A1 WO2001009855 A1 WO 2001009855A1 AU 0000902 W AU0000902 W AU 0000902W WO 0109855 A1 WO0109855 A1 WO 0109855A1
Authority
WO
WIPO (PCT)
Prior art keywords
card
transaction
processor
cardholder
software
Prior art date
Application number
PCT/AU2000/000902
Other languages
English (en)
Inventor
V. Morgante
Original Assignee
Morgan Feetham & Associates Pty Ltd
Priority date (The priority date 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 date listed.)
Filing date
Publication date
Application filed by Morgan Feetham & Associates Pty Ltd filed Critical Morgan Feetham & Associates Pty Ltd
Priority to AU61393/00A priority Critical patent/AU6139300A/en
Publication of WO2001009855A1 publication Critical patent/WO2001009855A1/fr

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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
    • 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
    • G06Q20/04—Payment circuits
    • 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
    • G06Q20/08—Payment architectures
    • G06Q20/12—Payment architectures specially adapted for electronic shopping systems
    • 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
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/40—Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
    • G06Q20/403—Solvency checks
    • G06Q20/4037—Remote solvency checks
    • 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
    • G07F7/1016—Devices or methods for securing the PIN and other transaction-data, e.g. by encryption

Definitions

  • the invention relates to a method and apparatus for providing secure electronic transactions using a novel transaction card.
  • the card may be of the credit or debit type.
  • the invention relates to a transaction system encompassing the distribution and use of the transaction card.
  • the invention relates to a system for checking the validity of transaction cards when they are issued and used so as to prevent credit cards from being issued and/or used illegally.
  • Transactions may be in retail outlets, via voice and/or data telecommunications channels or via the Internet.
  • a magnetic strip on the card is used for swiping through dedicated electronic magnetic card readers at the point of purchase.
  • the card is used in a similar fashion as an Automatic Teller Machine card and the cardholder must provide a PIN (Personal Identification Number) by entering the number into the electronic machine that has read the magnetic strip on the card.
  • PIN Personal Identification Number
  • a correct PIN is accepted as verification of the identity of the cardholder and the transaction is completed.
  • An impression of the card is taken with embossed writing on the credit card leaving an impression on a transaction slip (via a carbon paper sheet).
  • the embossed impression includes the name of the credit card holder, the credit card number on the credit card, card issuance date and the expiry date of the credit card.
  • the cardholder then signs the copy impression of the credit card to verify the transaction. Generally a copy of the cardholder's signature is held on the reverse side of the credit card from which to verify the signature of the cardholder.
  • the cardholder provides the number of the credit/debit card by way of electronic, paper or telecommunications media to the retail organisation with which a transaction is to take place.
  • the retail organisation uses the card number to place a financial transaction against the cardholder's account within the financial institution that issued the card (hereinafter known as the "finance company").
  • the retail organisation or an unauthorised person
  • they can use this number to issue a financial transaction against the cardholder's account (within the finance company) without the cardholder needing to provide verification.
  • security codes are stored on the cardholder's computer, perhaps in the form of a cookie.
  • the information stored on the cardholder's computer is used to verify the identity of the purchaser.
  • the limitation of this approach is that the cardholder is restricted to making purchases from the computer storing the security information. A more versatile system is needed.
  • United States patent number 5485510 assigned to AT&T Corp, describes a security system for making a credit/debit card purchase without revealing the card number to the vendor of services or goods.
  • the cardholder is connected to a data base and provides the card number, plus holder identity verification, to the data base.
  • the data base then verifies whether the cardholder is authorized to incur the expense of the purchase, and, if so, provides an authorisation indication or code to the vendor; the card number cannot be derived from the authorisation information, thus helping to preserve the secrecy of the card number.
  • the AT&T system does not provide any physical security since the purchaser need not be in actual possession of the card to make a transaction. Reference may also be had to United States patent number 5590197, assigned to V-One Corporation.
  • the V-One system provides a cyber wallet that may be stored in a portable electronic storage medium, such as a smart card, along with browser software. Security of the information contained in the wallet is provided by a public key file containing public keys to be used for encrypting the payment information into an authorisation ticket. The key for decrypting the ticket is only held by the credit company.
  • the V-One system provides security since the retailer never has access to unencrypted card information. Nonetheless, all the information necessary for a transaction to be authorised is transmitted by the cardholder to the credit company. This information can be intercepted and used for fraudulent transactions.
  • the invention resides in an electronic security system comprising: a transaction card storing identifying information relating to a cardholder; card software associated with the transaction card; a local processor executing the card software, there being a card reader associated with said local processor for reading said identifying information from said card and display means associated with said local processor for displaying said identifying information and information processed by the card software; a retail processor accessible from said local processor to display products for purchase; a finance processor executing card management software, there being a memory means associated with said finance processor for storing cardholder information; and communication means providing communication between said local processor, said retail processor and said finance processor; wherein all information required for completing said electronic transaction is unavailable to said retail processor.
  • the identifying information is preferably selected from one or more of card number, card key, password, balance amount, credit limit, card status, credit status, cardholder name and similar information.
  • the card software is stored on the transaction card in readable media.
  • the card reader suitably reads the card software from the card.
  • the readable media is suitably CD ROM media and the card reader is suitably a CD ROM drive.
  • the retail processor preferably runs purchase management software.
  • the cardholder information stored in the memory means associated with the finance processor includes at least some of said information stored on the transaction card.
  • the invention resides in a method of making a secure electronic transaction by a cardholder including the steps of: initiating a transaction by said cardholder selecting a product for purchase from a retail processor; running card software associated with a local processor; reading a first identification code from a transaction card, said transaction card also storing a second identification code; transmitting from the local processor to said retail processor the first identification code; transmitting from the retail processor to a finance processor the first identification code and transaction data; said finance processor calculating an expected response code; transmitting from the finance processor to the local processor a transaction code and storing the expected response code in memory means associated with said finance processor; displaying at the local processor a request for a third identification code; said cardholder inputting the third identification code to the card software; said card software generating a response code from the third identification code, the second identification code and the transaction code and transmitting the response code to the finance processor; said finance processor
  • the step of said cardholder initiating a transaction preferably includes the step of the cardholder identifying the product displayed by display software on display means associated with the local processor.
  • the step of running card software includes the steps of loading the card software from said transaction card loaded in a card reader.
  • the step of reading a first identification code may be a manual step or an automatic step performed electronically.
  • the first identification code is suitably a card number, which may be a public key of a public key/private key encryption system.
  • the second identification code is suitably a card key, which may be a private key of a public key/private key encryption system.
  • the third identification code is suitably a password known to the cardholder.
  • the step of transmitting the transaction code from the finance processor to the local processor may include the additional steps of transmitting the transaction code from the finance processor to the retail processor and then transmitting the transaction code from the retail processor to the local processor.
  • the step of transmitting the response code to the finance processor may include the additional steps of transmitting the response code from the local processor to the retail processor and then transmitting the response code from the retail processor to the finance processor.
  • the transaction code can be displayed as a 'number' or as a 'visual object' displayed in the display software that the cardholder copies over to the card software. As a number it can be re-typed into a section of the card software or copied and pasted to the card software; as a 'visual object' the transaction code is copied over as a 'computing object' where the transaction code is embedded within the object and not necessarily visible to the cardholder.
  • the response code can be handled in a similar manner.
  • the step of comparing the response code with the expected response code is performed at the finance processor (server).
  • the second identification code or the third identification code transmitted by the card software from the local processor is only used locally to generate the response code that is compared to the expected response code to authorise the transaction.
  • the card software may be stored on the card and is therefore completely portable to any local processor that has a card reader.
  • a transaction card comprising: a card bearing identifying indicia; a recording medium associated with the card; and software stored in the medium, said software reading identification codes from said recording medium and displaying said identification codes on a display means.
  • the recording medium is suitably formed on the card or is formed as part of the card.
  • the recording medium is preferably inseparable from the card.
  • the software stored in the medium suitably stores card software for use in the method described herein.
  • said identification code may be a public key of a public key/private key encryption system.
  • the transaction card is preferably suitable for reading in known CD
  • the card is similar to known CD ROM's but made in the shape of a known credit/debit card.
  • the transaction card may suitably be a hybrid of CD ROM (Compact Disk - Read Only Memory) technology and magnetic media technology.
  • CD ROM Compact Disk - Read Only Memory
  • magnetic media technology The two media combined on the one device allow for the current benefits that are not available today with the current design of credit cards.
  • the identifying indicia may suitably be indicia providing identifying particulars of the card and the cardholder.
  • the indicia are suitably embossed.
  • Fig 1 is a schematic block diagram of an electronic transaction security system
  • Fig 2 shows a front view of a transaction card according to the invention
  • Fig 3 shows a rear view of the transaction card of Fig 2;
  • Fig 4 shows schematically the information stored on the transaction card whether by means electronic, magnetic, written or otherwise;
  • Fig 5 shows a front view of a transaction card according to a third embodiment of the invention in which information about the cardholder is stored on the front face of the transaction card in a raised format for embossing purposes;
  • Fig 6 shows schematically the information relating to a transaction card that is stored at the finance processor
  • Fig 7 is a schematic block diagram of an electronic transaction security system for using transaction cards
  • Fig 8 is an event trace diagram of a transaction using the secure electronic transaction card system
  • Fig 9 shows the main data flows in a transaction using the secure electronic transaction card system
  • Fig 10 is a schematic block diagram of an electronic transaction security system for issuing transaction cards.
  • a block schematic diagram of a secure electronic transaction system is shown in Fig 1.
  • a transaction card 1 Central to the system is a transaction card 1 that is the same or similar size and shape as known credit cards but which includes a storage media 10 able to be read by a card reader 2 which may be a common device such as a CDROM drive, a PCMCIA slot, a zip drive etc.
  • the transaction card 1 is described in greater detail below.
  • the transaction card 1 is readable by a card reader 2, under the control of a local processor 3.
  • the local processor 3 is normally a personal computer, although it could be any form of processor incorporating a display means and memory.
  • the local processor 3 reads and runs card software 4 stored on the transaction card 1.
  • the tasks of the card software 4 are described in greater detail below.
  • the cardholder In order to complete a transaction, the cardholder must place the card 1 in the card reader 2 but must also provide a password, such as a personal identification number (PIN) at the appropriate time. The steps involved in completing a transaction are described below for various situations.
  • PIN personal identification number
  • the local processor 3 also displays products (goods and services) for purchase by the cardholder.
  • the products are displayed by display software 5 running on the local processor 3. In one embodiment this may be by a web page displayed in browser software running on the local processor.
  • the inventor recognises this embodiment as an important application of the system to address security problems in existing web-based purchases but the invention is not limited to this specific embodiment.
  • Another embodiment may include database software that accesses a local database of products or a remote database.
  • the system also includes a retail processor 6 that runs purchase management software 7.
  • the purchase management software 7 is operated by the entity offering the products for sale.
  • the software 7 monitors the purchase and controls the flow of information between the local processor 3 and a finance processor 8.
  • the purchase management software 7 may be part of a larger software package that performs multiple product management tasks such as stock control, dispatch tracking etc.
  • the finance processor 8 runs card management software 9 that processes a transaction request and authorises the transaction based on the financial status of the cardholder.
  • the finance processor 8 maintains a cardholder information file 21 which is described in detail below with reference to Fig 6.
  • a transaction cannot be completed unless the card management software 9 issues a transaction validation code.
  • the transaction validation code cannot be issued unless the cardholder provides both the card and a password.
  • the password is never available to the retail processor and is never transmitted across the various data links. Security of the transaction card and the electronic transaction is therefore maintained.
  • a transaction card 1 useable in the secure electronic transaction system is shown in Fig 2.
  • the transaction card may be issued on CD ROM media 10 being of standard credit card size and shape.
  • the card has a hole 1 1 (and related seating grooves 12) in the middle of the card 1 to support the card within the cradle of a CD ROM reader or reader/writer.
  • the rear side of the card may have a magnetic strip 13 of the type commonly incorporated into standard credit cards and debit cards currently used by financial institutions.
  • the embodiment of the two technologies (CD ROM media and magnetic strip media) together on the one card allows the transaction card to continue to be used in prior art transaction systems as well as the secure system described herein.
  • the information includes a first identification code (such as the card number) 14, a second identification code (such as a card key) 15, an expiry date 16, an issue date 17, an issuer code 18, and a credit limit 19.
  • a first identification code such as the card number
  • a second identification code such as a card key
  • the transaction card 1 can have any type of writing and/or graphic art on the front surface, as shown in Fig 5.
  • the information may include the card number 14, issue date 17, expiry date 16 and cardholder name 20.
  • the information may be raised to facilitate use of the transaction card in prior art transaction systems that employ physical recording of card information on carboned transaction slips.
  • the card number 14 is unique for each transaction card issued. It may be the public key component of a public key/private key encryption regime whereby the card number 14 can be safely released by the cardholder to any person or organisation to use for the purposes of encrypting information to send back to the cardholder. It will be appreciated that reference to a card number is for ease of description, the card number may be a symbol, or other identifying means;
  • the card key 15 is used to modify card information such that the retail organization cannot derive any of the card information as supplied by the cardholder and the card software. It is never visible on the transaction card nor available to any party other than the cardholder.
  • the card key 15 may be the private key component in a public key/private key encryption regime whereby only the private key can be used to decrypt any information that has been encrypted by the encryption regime using the public key.;
  • the expiry date 16 is the date after which use of the transaction card is no longer allowable
  • the issue date 17 is the date of issue of the transaction card
  • the issuer code 18 identifies the organisation (financial institution or retail outlet) that has issued the transaction card;
  • the credit limit 19 is the limit amount (in fiscal terms) to which the cardholder can use the card to purchase goods.
  • the transaction card 1 is issued to a cardholder by either a finance company or a retail organisation. Where the transaction card is issued by the retail organisation a retail organisation stocks the credit cards in house.
  • the card number 14 and card key 15 are stored on the transaction card on (or soon after) manufacture, but prior to issue. In a further ⁇ mbodiment, the card number and card key are stored on the transaction card subsequent to issue of the card.
  • the cardholder information file 21 includes information about the cardholder and the transaction card 1.
  • the card information may include the card number 14, card key 15, cardholder's password 23, current balance 24, credit limit 19, card status 25 and credit status 26.
  • the cardholder information may include name 20, age 27, date of birth 28, address 29, telephone numbers 30 and sex 31.
  • the transaction card has the major advantage of being able to be used with personal computers via the use of a CD ROM reader device for highly secure financial transactions performed over the Internet.
  • the cardholder can use the transaction card on their home personal computer to perform financial transactions by inserting the transaction card in their card reader 2 which can be a CD ROM drive.
  • the home computer operating as a local processor 3, loads the card software 4 specific to the transaction card 1.
  • the card software reads the card details and displays these details to the cardholder on the display unit 32.
  • the card software may be stored on the card or may be stored in local memory associated with the local processor.
  • Retail organisations post advertising material and an invitation to treat on a web page on the Internet.
  • the cardholder views the material in display software 5 running on the local processor 3.
  • the display software 5 is conveniently browser software such as Internet Explorer ® or Netscape Navigator ® .
  • the cardholder decides that they wish to purchase a particular item advertised for sale on a web page of a particular retail organisation.
  • the retail organisation with which the cardholder wishes to make a financial transaction will have purchase management software 7 running on a retail processor 6.
  • the retail processor 6 may also host the retailer's web page.
  • the main purpose of the purchase management software is to relay information between the display software 5 on the local processor 3 and the card management software 9 on the finance processor 8 and to log successful sales purchases by a cardholder against a sales register.
  • the retail processor 6 may also have associated memory 43, display means 42 and keyboard 41.
  • the card management software running on the finance processor is constantly running and processing electronic financial transactions as and when they are presented to the finance processor for processing.
  • the card management software acts as a gatekeeper to the issue and use of transaction cards issued by the finance company. For all transactions that are successful, the card management software makes adjustments to the cardholder information file 21.
  • the finance processor 8 may also have associated memory 44, display means 45 and keyboard 46.
  • Cardholder selects item to purchase on the display software 5 (web site/web page)on the local processor 3 from the retail organisation;
  • the display software 5 displays a message on display unit 32 requesting the cardholder to enter their card number 14.
  • Cardholder inserts transaction card 1 in card reader 2 of the local processor 3 and the card software 4 loads in local memory 34.
  • Cardholder starts the card software 4 which reads the card number 14 from the transaction card 1 and displays the card number 14 on the display unit 32.
  • the cardholder enters the card number 14 into the display software 5 via keyboard 33 or by means electronic and/or manual whereby the card number 14 is copied to the display software.
  • a field for entry of the card number is displayed on the web page offering the products for sale.
  • the cardholder may type the card number into the field or may drag and drop the number or a token.
  • Card management software 9 on the finance processor 8 generates a transaction code and returns it to the local processor 3.
  • the transaction code is based on a randomly generated number, and may also include a unique merchant id (identifying the merchant) and the purchase price.
  • a description of the merchant (as stored in the card management system) may be included in the transaction code so that the cardholder can confirm the identity of the merchant with whom they are dealing.
  • the finance company checks the cardholder's information file 21 to decide if they have sufficient account balance or credit limit for the transaction. This information is returned to the merchant by any means, secured, encrypted or otherwise for the merchant to advise the cardholder whether the transaction is successful.
  • the manner of returning this information to the merchant is outside the scope of the invention described herein, and is inconsequential to the manner of uniquely identifying the cardholder and merchant.
  • the card management software 9 also generates an expected return code.
  • the expected return code is value based on a function of the card key 15 and password 23 stored within the cardholder information file 21 for the unique card number 14, and the transaction code.
  • the expected return code is stored in memory 44.
  • Display software 5 receives the transaction code and displays the transaction code to the cardholder on display unit 32.
  • Cardholder enters the transaction code into the card software 4 via keyboard 33 or by other means electronic and/or manual, such as drag and drop.
  • Cardholder enters password 23 for the transaction card into card software 4 via keyboard 33.
  • Card software 4 calculates a return code (being a value based on a function of the card key 15 stored on the transaction card , the transaction code and the password 23 known to the cardholder) and displays the return code to the cardholder via the display unit 32.
  • a return code being a value based on a function of the card key 15 stored on the transaction card , the transaction code and the password 23 known to the cardholder
  • the cardholder enters the return code into the display software which passes the return code to the purchase management software 7 and on to the card management software 9.
  • the card management system 9 validates the return code and if the return code corresponds to the expected return code (stored in memory 44 for the unique financial transaction in progress for card number 14) then the transaction validation is positive (ie an authorised person who has possession of the credit card, the correct transaction code and the unique password 23 for the credit card has made the transaction). The financial transaction is passed. If the return code does not correspond to the expected return code the transaction validation is negative (because an unauthorised person has tried to make a transaction either without possession of the transaction card, with an incorrect transaction code or without a valid password) and the financial transaction is rejected.
  • the card management software sends the transaction validation to the purchase management software via communication adaptor 37 and communication adaptor 36.
  • the purchase management software receives the transaction code and if the transaction validation is positive the purchase management software can post a successful transaction against a "sales register" for the item purchased by the cardholder, and dispatch the products.
  • the purchase management software sends the transaction validation to the display software for display to the cardholder on display unit 32.
  • the retail organisation only receives the transaction card number but never the password nor the card key of the transaction card. Because the password is needed in conjunction with the card number the retail organisation cannot fraudulently use the card to make further financial transactions against the cardholders account.
  • the only password that the retail organisation is ever able to intercept (when a transaction is in process) is a value based on a function that is irreversible without the key pieces of information.
  • the card management software (at the financial institution) sends a transaction code that is different each time a transaction is made, and the response code is a value based on a irreversible function of the transaction code, the card key and the password, the retail broker will not be able to decrypt the password or the card key.
  • the cardholder merely issues a request to the financial institution issuing the card to suspend trading with the card. No further transactions using the transaction card will be authorised by the issuer of the card.
  • the cardholder may also elect to change the password on their account with the credit company.
  • the transaction card can be used as a debit card holding small balances of cash credit against the cardholder's account within the finance company.
  • the transaction card may be used as a debit card by increasing balance of the card at any time by transferring money from another financial vehicle (financial account of the cardholder) within or outside the issuing finance company to the account of the transaction card within the finance company.
  • the transaction card is a hybrid of CDROM technology and magnetic media technology, as shown in FIG 3.
  • the two media combined on the one device allow the transaction card to be used in conventional credit/debit transactions as well as the secure transactions described above.
  • the magnetic strip can be used to store some or all of the information stored on the card in the first embodiment but exclusive of the computer software stored on the transaction card.
  • the transaction card is used at a retail organisation's premises for conducting a conventional financial transaction, wherein the magnetic strip component of the transaction card is swiped through an electronic device that reads the magnetic card strip on the card in order to read the card details.
  • the mechanisms of providing a pin number and authorising the transaction through the finance company (issuer) of the card by electronic means is then the same as current credit card/ATM card transactions.
  • the transaction card has information about the cardholder visible on the front face, as depicted in FIG 5.
  • the information is either raised or printed on the card.
  • This embodiment can be used in the same manner as conventional cards.
  • the password 23 is generated by the finance company and delivered with the transaction card sealed in an envelope.
  • the envelope is only opened on or after the transaction card has been issued otherwise the transaction card is rejected by the prospective cardholder.
  • the card status 25 within the cardholder information file 21 for that particular transaction card will be "unopened".
  • no transactions can be made using the transaction card.
  • the password 23 stored within the cardholder information file 21 is unique to the transaction card identified by the unique card number 14.
  • the password is automatically generated by the card management software at the same time as the card number and the card key.
  • the card status stored within the cardholder information file 21 is updated to "debit & credit allowed", at which point the card status 25 is set to "opened".
  • the retail store may accept cash from the prospective cardholder and the retail store owner then passes the equivalent amount of money to the credit company for the account of the cardholder. In this case the credit status is updated to "debit only” and the balance is incremented by the cash amount transferred to that card number, and card status 25 is set to "opened”.
  • the transaction card does not store the card number and card key on (or soon after) manufacture but at the time of issuance.
  • the card number 14 and the card key 15 are forwarded from the card management software 9 to the card software 4 on the local processor 3 (at time of issue) and the card number 14 and the card key 15 are written to the transaction card using a card writing device.
  • the sixth embodiment is similar to the previous embodiments except that the card number is never supplied to the retail organisation. This embodiment requires some initial hand-shaking between the retail organisation and the finance organisation. The preliminary steps are :
  • the finance company sends an encryption key to the retailer processor (web server) which the retailer sends off to the web-site being viewed by the cardholder;
  • the cardholder enters the password for the card into the card software and the card software uses the encryption key and the password to produce a unique encryption of the card number.
  • the encrypted card number is displayed on the card software as a number or within a visual object.
  • the retailer processor receives the encrypted card number and sends it to the finance company;
  • the finance company decrypts the encrypted card number using the public key/private key methodology; (the cardholder will need to have known the appropriate password to create the response that the finance company was expecting); i) The rest of the transaction proceeds as described above.
  • the initial hand-shaking is the only time when true public key/private key encryption is needed. Furthermore, only the finance company needs to have a public key. All other transactions described herein need not necessarily use public key/private key encryptions. The card number and card key may simply be copy book encryption keys that rely on the retailer not knowing the "copy book”.
  • the transaction card finds particular advantage in transactions conducted over the Internet.
  • a transaction card Before a transaction card can be used in the secure electronic transaction system it must be issued to the cardholder. This may be done by a financial institution, such as a bank or a credit union, or by a retail outlet. The process is similar in both cases and is described in detail below with reference to Fig 10.
  • the first method is most relevant where a retail organisation applies for credit on behalf of the prospective cardholder that is seeking credit. This method follows the steps listed below:
  • the prospective cardholder gives required details to a cashier at the retail organisation in order for the cashier to commence the process of performing a credit check on the prospective cardholder in order to issue a transaction card;
  • the cashier places the transaction card to be issued in a card reader (CD ROM Drive or other) 2 connected to the local processor 3;
  • the card software 4 (loaded from the credit card into the local memory 34) reads the card number 14 of the transaction card land displays the card number 14 on a display unit 32;
  • the cashier starts card issue software, which is loaded from the memory 39 into local memory 34.
  • the card issue software is specific to the art of issuing the transaction card and communicating with the card management software 9. It may be a module in the purchase management software 7 or a separate software program. The software can run independently in the local processor 3 or may run in the retail processor 6.
  • the cashier enters the card number 14 of the transaction card 1 and the appropriate information required to perform a credit check against the prospective cardholder into the issue management software within the local processor 3 using the keyboard 33 or reads the card number directly from the card electronically.
  • the card issue software forwards the information to the card management software 9 running at the finance processor 8 using communication adaptor 35 and communication link 40.
  • the card management software 9 receives the card number 14 of the transaction card 1 to be issued and the information about the prospective cardholder. g) The card management software 9 performs a credit check on the prospective cardholder.
  • the card management software 9 sends back a negative transaction validation, which is displayed on the display unit 32.
  • the cashier reads the negative transaction validation and the issue transaction is terminated.
  • the card management software 9 sends back a unique and random transaction code to the issue management software using communication adaptor 37, which the issue management software displays on the display unit 32.
  • the transaction code also contains the public key of the credit company.
  • the issue management software receives the transaction code via communication adaptor 35.
  • the cashier then copies the transaction code to the card software 4 and asks the prospective cardholder to enter a password 23 for the new transaction card to be issued.
  • the prospective cardholder uses the keyboard 33 to enter a password into the card software.
  • the password entered by the prospective cardholder is only known to the prospective cardholder and does not appear on the display unit 32 in any manner that may be able to be reused by anybody viewing the display unit).
  • the card software uses the public key of the credit company to encrypt the password and the transaction code, returning a response code.
  • the card management software 9 receives the response code via communication adaptor 37 and decrypts the response code using the private key of the finance company returning the password of the new cardholder and the transaction code.
  • the transaction code is used to verify the unique transaction relating to the transaction card held by the cardholder.
  • the card management software 9 records the password against the cardholder information file 21 in the field password 23.
  • Password 23 is used to validate future transactions against the transaction card held by the cardholder.
  • the card management software 9 sets the credit status 26 field within the cardholder information file 21 to a value indicating "credit & debit allowed” and sets the card status 25 within the cardholder information file 21 to "opened” because all security checks for opening the new transaction card account have passed successfully.
  • the second method of issuing a transaction card is for the prospective cardholder to "purchase" a transaction card to use as a debit card.
  • the card software 4 reads the card number 14 and displays the card number 14 on the display unit 32.
  • the cashier starts the issue management software, which is loaded from memory 39 into working memory 34.
  • the issue management software operates in the manner described above.
  • An electronic funds transaction is made from the retail organisation's financial account to the account within the card management system for the amount given to the cashier and sent to the card management software 9 by the issue management software. The amount is credited to the account corresponding to the card number 14 for which the deposit was made.
  • the card management software 9 records the amount deposited by the cardholder (as sent over by the issue management software) within the balance amount 24 field within the cardholder information file 21 within the memory 22.
  • the card management software 9 sets the credit limit amount 19 to zero, the credit status field 26 to a value indicating debit only and the card status 25 to "opened, within the cardholder information file 21 (because the card is not being used as a credit card rather only as a debit-card and because all security checks for opening the new credit card account have passed successfully).
  • the credit company sends a over the Internet the public key of the finance company to the cardholder as a transaction code (using secure socket technology if necessary) and obtains the card number of the card;
  • the cardholder starts a section of the software dedicated to registration of the card and copies the transaction code to the software.
  • the transaction code can be displayed as a 'number' or as a 'visual object' that the cardholder copies over to the software. As a number it can be re-typed into a section of card software or copied and pasted to the card software; as a 'visual object' the transaction code is copied over as a 'computing object' where the transaction code is embedded within the object and not necessarily visible to the cardholder.
  • the card software accepts the transaction code and reads the card number 14 from the card 1 ;
  • the cardholder is then required to enter a password 23 into the card software; (ie the cardholder enters a password to uniquely identify the card and themselves).
  • the card software then creates an encrypted return code based on a public key, the card number, the password of the cardholder and displays that to the cardholder (through the display device) either as a number or as a 'visual object'
  • the cardholder copies the return code to the relevant place holder on the finance company's web-site and 'sends' the return code back to the finance company's card management software.
  • the credit company checks (decrypts and checks) the return code to identify the card number of the card and the password. If the card number is a valid and "unused" card number (ie has been actually issued by the finance company and has not been previously registered, and/or has not been reported stolen) then the finance company sends back to the web-page on the cardholder's personal computer a request that they enter relevant personal details about the cardholder, for registration into the cardholder information file.
  • a facility such as the Bpay method of payment may be used.
  • the transaction is a money transfer where the company code (of the receiving company) is the finance company and the account number is the cardholder's account within the finance company.
  • the third method of issuing transaction cards is the most preferred embodiment of the issuing mechanism for the card, because it is simple and inexpensive.
  • the main benefit to the general public, offered by the invention is the ability to have extremely safe financial transactions over the Internet while still being able to use the transaction card for standard, day to day, financial transactions at retail outlets or via other telecommunications media (other than the Internet).
  • the benefits of the transaction card include :
  • the transaction card can be safely used "from home" over the internet for secure financial transactions, whereby the transaction card can be inserted in the CD ROM drive (electronic device common to modern day personal computers) of the cardholder's personal computer from which software embedded on the transaction card itself is used to assist in the transaction with a company selling goods over the internet, and achieving a high level of security by never allowing the company selling the goods access to all of the information necessary to complete any transaction using the card;
  • CD ROM drive electronic device common to modern day personal computers
  • One form of the transaction card can be used at the premises of a retail organisation for conducting a financial transaction, whereby the magnetic strip component of the transaction card can be swiped through an electronic device that reads the magnetic card strip on the card in order to read the card details.
  • the mechanisms of providing a pin number and authorising the transaction through the finance company (issuer) of the card by electronic means is then the same as current credit card/atm card transactions.
  • impressions of the embossed indicia on the transaction card can be made in the same way as standard credit cards are made in order to initiate the financial transaction.
  • the financial transaction is closed by the cardholder signing the paper impression of the card and this signature verified against a copy of the cardholders signature stored on the card.
  • the proposition is for a new and highly-safe method of issuing a transaction card to a cardholder and method of performing electronic banking transactions whereby the user of the transaction card must be physically in possession of the transaction card and know the password to use the transaction card (even when using the transaction card over the Internet).
  • the invention extends to the particular transaction card design and to the method of use, which allows the transaction card to be used with most new personal computer systems on the market today.

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  • Business, Economics & Management (AREA)
  • General Physics & Mathematics (AREA)
  • Accounting & Taxation (AREA)
  • Physics & Mathematics (AREA)
  • Engineering & Computer Science (AREA)
  • General Business, Economics & Management (AREA)
  • Theoretical Computer Science (AREA)
  • Strategic Management (AREA)
  • Finance (AREA)
  • Computer Security & Cryptography (AREA)
  • Cash Registers Or Receiving Machines (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
  • Control Of Vending Devices And Auxiliary Devices For Vending Devices (AREA)

Abstract

L'invention concerne un système de sécurité électronique destiné aux transactions financières utilisant une carte de transaction portant un logiciel pouvant être lu par un lecteur de cartes associé à un processeur local. Le lecteur de carte est de préférence un lecteur de CD ROM, et la carte de transaction utilise une mémoire optique pouvant être lue par le lecteur de carte. Le système de sécurité électronique comprend un processeur local ; un processeur de vente au détail offrant des biens et des services à la vente ; un processeur comptable qui traite les transactions financières ; et des moyens de communications entre le processeur local, le processeur de vente au détail et le processeur comptable. A aucun moment, au cours d'une transaction financière, le processeur de vente au détail a accès aux informations nécessaires au bon déroulement de la transaction.
PCT/AU2000/000902 1999-07-29 2000-07-28 Transactions electroniques securisees WO2001009855A1 (fr)

Priority Applications (1)

Application Number Priority Date Filing Date Title
AU61393/00A AU6139300A (en) 1999-07-29 2000-07-28 Secure electronic transactions

Applications Claiming Priority (2)

Application Number Priority Date Filing Date Title
AUPQ1915 1999-07-29
AUPQ1915A AUPQ191599A0 (en) 1999-07-29 1999-07-29 Secure electronic transactions

Publications (1)

Publication Number Publication Date
WO2001009855A1 true WO2001009855A1 (fr) 2001-02-08

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PCT/AU2000/000902 WO2001009855A1 (fr) 1999-07-29 2000-07-28 Transactions electroniques securisees

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AU (1) AUPQ191599A0 (fr)
WO (1) WO2001009855A1 (fr)

Cited By (5)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO2002101671A2 (fr) * 2001-06-13 2002-12-19 Tenfield S.A. Carte tout terrain
US6749114B2 (en) 2001-05-15 2004-06-15 Inadam Corporation Universal authorization card system and method for using same
US7810735B2 (en) 2001-05-15 2010-10-12 Inadam Corporation Computer readable universal authorization card system and method for using same
US8403228B2 (en) 2001-05-15 2013-03-26 Inadam Corporation Computer readable universal authorization card system and method for using same
US9342832B2 (en) 2010-08-12 2016-05-17 Visa International Service Association Securing external systems with account token substitution

Citations (1)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO1998049658A1 (fr) * 1997-04-30 1998-11-05 Visa International Service Association Systeme de paiement et de chargement par internet a l'aide d'une carte a puce

Patent Citations (1)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
WO1998049658A1 (fr) * 1997-04-30 1998-11-05 Visa International Service Association Systeme de paiement et de chargement par internet a l'aide d'une carte a puce

Non-Patent Citations (1)

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Title
DYSON P.E.: "Toward electronic money: Some internet experiments", SEYBOLD REPORT ON DESKTOP PUBLISHING, vol. 9, no. 10, 10 June 1995 (1995-06-10), pages 3 - 11 *

Cited By (10)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US6749114B2 (en) 2001-05-15 2004-06-15 Inadam Corporation Universal authorization card system and method for using same
US7299980B2 (en) 2001-05-15 2007-11-27 Inadam Corporation Computer readable universal authorization card system and method for using same
US7810735B2 (en) 2001-05-15 2010-10-12 Inadam Corporation Computer readable universal authorization card system and method for using same
US8403228B2 (en) 2001-05-15 2013-03-26 Inadam Corporation Computer readable universal authorization card system and method for using same
WO2002101671A2 (fr) * 2001-06-13 2002-12-19 Tenfield S.A. Carte tout terrain
WO2002101671A3 (fr) * 2001-06-13 2003-10-30 Tenfield S A Carte tout terrain
US9342832B2 (en) 2010-08-12 2016-05-17 Visa International Service Association Securing external systems with account token substitution
US10726413B2 (en) 2010-08-12 2020-07-28 Visa International Service Association Securing external systems with account token substitution
US11803846B2 (en) 2010-08-12 2023-10-31 Visa International Service Association Securing external systems with account token substitution
US11847645B2 (en) 2010-08-12 2023-12-19 Visa International Service Association Securing external systems with account token substitution

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