WO2008041861A1

WO2008041861A1 - Method and system for replenishing electronic purses offline

Info

Publication number: WO2008041861A1
Application number: PCT/NO2007/000349
Authority: WO
Inventors: Yngve Lillehagen; Torstein BjØRNSTAD
Original assignee: Tyblon As
Priority date: 2006-10-06
Filing date: 2007-10-05
Publication date: 2008-04-10

Abstract

Electronic purses embedded in chip cards or smart cards represent a secure and versatile method of payment that is not only limited to provide cash, but also to function as loyalty program cards, as a ticket on busses, etc. wherein the content of the electronic purse represents value items. The present invention discloses a method and system for replenishing electronic purses with an off line card reader. According to the present invention, an electronic purse can be updated by inserting the card with the embedded electronic purse into a card reader, and by inputting a code associated with the amount for the updating via an attached keyboard, the electronic purse can be updated off line. According to the present invention, the card holder can obtain the necessary code via a mobile phone, stationary phone, PDA, lap top computer or Internet.

Description

Method and system for replenishing electronic purses offline

The present invention is related to a method and system for replenishing electronic purses, and especially to a method and system for replenishing electronic purses offline according to the independent claims 1 and 20.

Electronic cash or cash equivalents transfer systems or financial transaction systems have grown to an important sector in modern society due to the widespread use of the Internet. However, providing the necessary security of financial transactions over networks is generally a difficult technical challenge. Commercial transactions involving point of sale terminals are secured by the use of PIN codes as known to a person skilled in the art. The same technique is applied when withdrawing cash from Automatic Teller Machines (ATM) in banks. However, many consumers experience attempts of fraud, for example, copying of the electronic information stored on an electronic payment cards possible for a technical skilled person. Spying on customers at the point of sale terminals or ATM machines identifying their PIN codes is also widespread involving many ingenious arrangements of hidden video cameras etc.

Prior Art has many solutions to these problems, but the security systems and the routines that are necessary requires expensive equipment that consequently leads to high transaction costs for preventing misuse of such electronic cash or cash equivalents transfer systems. The underlying benefits of using electronic means for recording financial transactions are enormous. The ability for computers to exactly, and in real time, to know the exact financial status of a company is any managers dream, for example. Therefore there is an issue to develop cheap, simple but secure electronic transaction systems.

One such example in prior art is the development of the electronic purse. Examples of such electronic purses are found in areas such as smart card technology, wherein a programmable microcontroller with memory embedded in the plastic card is ₍ programmed to act as an electronic purse, as known to a person skilled in the art. Such electronic purses are also installed in other microcontroller carrying devices like Mobil telephones and PDA's. There is also international standards providing protocols and data formats for such devices. For example, Near Field Communication (NFC) is an open platform standard defined in ECMA-340 and ISO/IEC 18092. There is also a standard for contact less cards, ISO/IEC 1443. The benefits of such an arrangement is mainly that the electronic purse itself contains real cash or cash equivalents. The replenishing of cash or cash equivalents is done by inserting the card comprising the electronic purse into an ATM machine, or especially designed terminal for this purpose, and then actually transferring an amount of cash or cash equivalents out of the user's bank account and storing the same amount in the electronic purse. Whenever a person is s shopping and wants to pay with his electronic cash or cash equivalents, the point of sale terminal may actually draw the amount of cash or cash equivalents from the electronic purse without contacting the cardholder's bank to verify the transaction, for example. The cash or cash equivalents have already been withdrawn from the cardholder's bank account. The deposit of the cash or cash equivalents in the bank account belonging toC the shop is equivalent to a transaction between the card acting as the cardholder's bank account and the account belonging to the shop, as known to a person skilled in the art. Therefore, the use of electronic purses may decrease transaction costs, especially when the amount of cash or cash equivalents involved represents small values. Areas of special interest for use of electronic purses are situations such as when a consumer byes tickets for busses etc., parking, and stamps etc., being situations where consumers usually use coins. The electronic purse may replace use of coins in many application areas.

Even though it is not always possible to use the electronic purse as such for paying for0 such examples of items mentioned above, it is easy to understand that the cardholder can withdraw cash form the electronic purse without actually being in contact with his bank account. An ATM machine or especially designed terminal simply draw cash or cash equivalents offline from the card when the cardholder inserts the card into the machine. Since the transaction costs are small, it is possible to draw small amounts of5 cash or cash equivalents from such cards without any significant added transaction costs for using the card.

Generally, the electronic purse is beneficial in use in application areas such as cash withdrawal, goods and services. 0

If the card is lost or stolen, it is only the amount of cash or cash equivalents in the purse that can be stolen, not the access to the actual bank account itself.

However, the problem with the electronic purse system is that consumers must go in5 person to an ATM machine or especially designed machine for example, to be able to replenish cash or cash equivalents into the electronic purse. Therefore, whenever a consumer is far away from such "replenishing stations", the consumer looses the benefits of the system if he needs to update his electronic purse. Therefore, there is a need for a method and system for replenishing cash or cash equivalents in electronic purses that can be performed offline, and that can be performed at any location of choice.

US 20050044020 Al disclose a method for identification and replenishment of an electronic card by using a computer system with a keyboard, wherein the keyboard is used to read and write data to and from the card, and the computer system in its turn communicates with a banking server computer or any other server in communication with a financial institution. The user will then be able to draw cash from an account the user has access to, and then updating the card via the keyboard with the amount.

JP 20066133857 disclose an electronic purse that can be updated with cash via information provided on a credit card that enables the user to contact and access a money server providing the cash for online updating of the electronic purse via a card reader device.

According to an aspect of the present invention, an electronic purse may be updated by using a mobile terminal (mobile phone, laptop, PDA etc.) for obtaining information about the amount for replenishing the electronic purse, and an offline card reader with an attached keyboard for entering the information into an inserted card in the offline card reader.

In prior art there are many examples of such card reader devices. For example, Digipass 800 from the company Vasco can be characterized as a trusted unconnected Personal Card Reader Product Platform. The DP800 is a 'no-nonsense', robust and trustworthy device designed to be used for non-face-to-face strong authentication in Internet banking, e-commerce, telephone banking, corporate network access, etc. Today the DP800 is in use by millions of cardholders, mainly for e-banking security.

The Digipass 800 can be delivered with a wide variety of application software, for example the MasterCard Secure Code (CAP) system, Visa Dynamic Passcode Authentication (DPA) system, and various domestic and proprietary schemes. The reader leverages the inherent security of chip cards (smart cards) to store secrets and (optionally) for secure computing (cryptographic calculations). In prior art the security elements and applications of a card reader device is also implemented in a mobile terminal (mobile phone, laptop, PDA etc.) as software.

According to another aspect of the invention, the microcontroller carrying the electronic 5 purse could be installed in the mobile terminal (mobile phone, laptop, PDA etc.).

The inventors of the present invention has understood that this type of card reader devices can be used together with a mobile terminal such as a mobile telephone, laptop computer Personal Digital Assistant etc., to achieve the goal of the present invention too replenish cash or cash equivalents into an electronic purse offline at any location of choice.

According to an example of embodiment of the present invention, a smart card or chip card or similar information carrying device is inserted into an off-line card reader, ands the card holder is contacting a front-end server with a communication device, such as a mobile phone, PDA, lap top computer, or similar type of device, communicating to the front-end server with the communication device, a request for replenishing cash or cash equivalents or a similar value item such as fare payments, stamps, etc. into the electronic purse, whereby the front-end server provides an authentication of the request0 by sending back to the communicating device a code that the card holder can write into the information carrying device inserted into the card reader through an attached key board to the card reader, wherein a program running in the card reader, or in a processor embedded into the information carrying device, or in both devices, that decode the code which results in an operation that updates the electronic purse in the information₅ carrying device with an amount provided by the code for cash or cash equivalents or value items related to goods or services.

According to yet another aspect of the present invention, the front-end computer system can be an interactive voice controlled system, as known to a person skilled in the art. By0 using a mobile phone or a stationary phone, the card holder can get the necessary code as a voice message form the interactive voice system. For example, many banks offer banking services over so called telebanks, which can be modified according to the present invention. S According to yet another example of embodiment of the present invention, the necessary codes for updating the electronic purse can be obtained over a so called Internet banking system. By using a computer system, for example a stationary computer in the card holders home, for example, or by using a mobile phone with for example a WAP interface, PDA, lap top computer etc., the card holder can reach the Internet bank and receive the necessary code via the Internet banking interface.

Access to for example an Internet bank is usually secured with a nonrecurring code, which can be generated as known to a person skilled in the art by the card reader according to the present invention. However, there are also examples of security systems in prior art wherein the nonrecurring codes for gaining access to the Internet bank account is only a list of nonrecurring codes on a piece of printed material sent a priori to the bank customer. According to an example of embodiment of the present invention, such nonrecurring codes can also be used for updating the card holder's electronic purse. Each nonrecurring code is equivalent to a certain amount of cash or cash equivalents or similar value item, and whenever the card holder inserts his information carrying device into the offline card reader, the card holder can input one of the nonrecurring codes. Software running in the card reader itself, in a processor embedded into the information carrying device itself (for example chip card, smart card), or in both devices, can decode the nonrecurring code, and authenticate the code, update the electronic purse, and then delete the used code form a list of possible codes that can be used as an updating request stored in a memory accessible by the processor in the card reader or chip card, respectively.

According to yet another example of embodiment of the present invention, the necessary code for updating the electronic purse may be obtained from a front-end server belonging to an organization providing customer loyalty programs. Customer loyalty program cards are well known in the prior art. By combining a customer loyalty program card with an electronic purse, the purse can be updated with value items according to the loyalty program, and the customer can realize his accumulated value in his electronic purse whenever he wants in an offline manner.

According to yet another example of embodiment of the present invention, the front-end server may contact a back-office system to validate a credit that is issued for updating the card holder's electronic purse. When a cardholder has received his code, the updated value in the electronic purse is flagged as a credit item. When the credit is used in a point of sale terminal, for example, the point of sale terminal contacts the front-end server to verify the credit. In the meantime, the front-end computer has received a reply form the back-office system that the credit is ok. Therefore, the front-end computer will tell the point of sale terminal system that the cash or cash equivalents is authenticated. The front end computer then receives a message about the use of the credit and issues a transaction between the credits issuing system to the bank account belonging to the shop having the point of sale terminal that is used.

According to yet another aspect of the present invention, embodiments of the present invention can be provided for in environments defined by international standards such as Near Field Communication (NFC) open platform standard, ISO/IEC 1443 etc.

Figure 1 depicts an example of prior art.

Figure 2 illustrates components in a system according to an example of embodiment of the present invention.

Figure 3 illustrates another example of embodiment of the present invention.

The term electronic purse in the context of the present invention is used as known to a person skilled in the art, but is not limited to this, but includes any arrangement of storage elements in an information carrying device that can be used to store data elements representing cash, cash equivalents, or value elements, thai can be used in electronic transaction systems for cash withdrawal, goods and services.

The term information carrying device is directed towards any type of media or device that can comprise an electronic purse as defined above, including but not limited to smart cards, chip cards etc., comprising electronic contacts that provides a connection between the information carrying device and a card reader that can be used to manipulate information stored, or that is to be stored, in the information carrying device, but also any type of information carrying device that provides contact less access to the information stored, or that is to be stored, in the contact less information carrier.

Throughout this disclosure, the terms insert, inserting, inserted etc. is not limited to the action of bringing the information carrier in physical contact with the card reader when the information carrier comprises electronic contacts, but include also the action of accessing a contact less information carrier.

The invention as such is not limited to how the components necessary to accomplish the replenishment of the electronic purse are configured or organized as a system. It is neither limited to how the device carrying the electronic purse is configured or organized as a system or unit.

Figure 1 illustrates a typical scenario in prior art when a card holder wants to update his electronic purse. An information carrying device 20, such as a chip card or smart card is inserted into an ATM (Automated Teller Machine) machine 21. The ATM machine 21 is in direct contact with the banking system 22. Usually, the card holder must enter a PIN code on a keyboard in the ATM machine 21. When the banking system 22 has authenticated the card holder, a menu of selectable transactions is displayed on a screen in the ATM machine 21. One such selection can be made to update the electronic purse in the information carrying device inserted into the ATM machine 21. The transaction takes place when the card holder selects this action. The amount of cash or cash equivalents, or generally speaking, the amount of value elements that is to be updated in the electronic purse is selected by the card holder.

Figure 3 illustrates another typical scenario in prior art when a card holder wants to update his electronic purse by transferring information over the Internet. It follows same procedure as in figure 1. Here the information carrying device 30, such as a chip card or smart card is inserted into a card reader 31 connected to a personal computer 32. The personal computer is in contact with the banking system 33 via the Internet. Usually, the card holder must enter a PIN code to the software program running on the PC. When the banking system 33 has authenticated the card holder, a menu of selectable transactions is displayed on the screen of the personal computer 32. One such selection can be made to update the electronic purse in the information carrying device inserted into the card reader 31. The transaction takes place when the card holder selects this action. The amount of cash or cash equivalents, or generally speaking, the amount of value elements that is to be updated in the electronic purse is selected by the card holder.

Figure 2 illustrates an example of embodiment of a system according to the present invention, wherein an example of method according to the present invention is performed. A card reader "A" comprises a keyboard 8, a display 2, and that is operated offline by the card holder. The information carrying device, for example a chip card is inserted into the card reader. According to an example of embodiment of the present invention, the card reader then starts an authentication process. The card holder is asked through a message displayed on the display 2, to input on the keyboard a PIN code. In another example of embodiment of the present invention, a secure code is generated and displayed on the display 2 if the PIN code is verified to be correct. The card holder will then start a session with a communication device "B", which can be a mobile phone 3, a PDA 3, a lap top computer 3, etc. establishing a session over the network with a front- end system "C" using the secure code generated by the card reader. In this manner, the ^■ card holder and his card is authenticated by the front- end system, as known to a person skilled in the art. The result of the authentication process is that the card holder issues a request for a certain amount of cash or cash equivalents or value items that is to be updated in his electronic purse. In an example of embodiment of the present invention, the front end system "C" sends a message back to the communication device "B" comprising an updating code the card holder can input to the information carrying device in the card reader "A" via the key board of the card reader, hi another example of embodiment of the present invention, the front end system "C" can contact a back office system "D" to either verify the transaction or to issue the actual code for the updating of the electronic purse according to the present invention.

It is an aspect of the present invention that the components or parts of the system according to the present invention can be operated as stand alone equipment or in any combination as long as the card holder obtains a code he can enter into the card reader for updating the electronic purse with cash or cash equivalents or other types of value items.

Another example of embodiment of the present invention is related to buying tickets, for example for a bus, train etc. According to an aspect of the present invention as system comprising elements as depicted in figure 2 may perform a method comprising the following steps:

1. The information carrying device, such as a chip card, is read in the card reader "A", wherein the card reader "A" validates the card. If not validated the card will be rejected.

2. If approved, the PIN is entered and verified in the card processor. Results are: a. If not OK: i. The card is rej ected. b. If OK PIN, then the card is accessible for manipulation, i. The card reader generates a secure code, ii. The secure code is displayed in the card reader's display. 3. A communication device, such as a mobile telephone, PC, PDA etc. "B" is used.

4. The secure code is input with other data such as method of payment, amount, type of fare payment etc. in a predefined device interface displayed in the communication device to the portal system's".

5. The portal system validates the secure code and generates an authentication request and forwards the request to the banking system (back-office) "D" for validation. 6. The banking system processes the authentication request and returns an authentication message comprising the result of the authentication process (either approved or declined).

7. The authentication message is processed in the portal system "C". If the request is approved, a secure code is generated and shown in the display of the card holder's communication device, for instance, a message like "Approved, secure fare payment ID XXX XXX XXX XXX." May be displayed.

8. The secure code is input to the card reader.

9. The Card reader validates the secure code, and generates a "load transaction", that results in an update of the electronic purse with a certain number of fare payments.

The card has now been loaded with fare payment information. The purchase amount is withdrawn from the banking account depending on the chosen payment method.

According to yet another example of embodiment of the present invention a system comprising elements as depicted in figure 2 can perform a method updating values related to funds, wherein the example of method comprise the steps of:

1. The information carrying device, such as a chip card, is read in the card reader

"A" which then validates the card. If not validated the card will be rejected.

2. If approved, the PIN is entered and verified in the card processor. Results are: c. If not OK: i. The card is rejected. d. If OK PIN, then the card is open for communication. i. The card reader generates a secure code, ii. The secure code is displayed in the card reader's display.

3. A communication device, such as mobile telephone, PC, PDA etc. "B" is used.

4. The secure code is input with other data such as method of payment, amount, type of goods etc. in a predefined device interface in the communication device

"B" to the portal system "C".

5. The portal system "C" validates the secure code and generates an authentication request and forwards the request to the banking system (back-office) "D" for validation. 6. The banking system process the authorization request and returns an authentication message comprising result of the authentication process (either approved or declined).

7. The authentication message is processed in the portal system "C". If approved, a secure code is generated and displayed in the display of the communication device "B", for instance, "Approved, secure ID XXX XXX XXX XXX.

8. The secure code is input to the card reader.

9. The Card reader validates the secure code, and generates a "load transaction", which results into an updating of funds in the electronic purse. The card has now been loaded with the proper value of the goods purchased. The purchase amount is withdrawn from the banking account depending on the chosen payment method.

^' According to another example of embodiment of the present invention, the portal system "C" as depicted in system 2 may be an interactive voice system providing a voice message comprising the secure code. Such voice messages may be submitted to a mobile phone, a stationary phone etc. as known to a person skilled in the art. The interactive voice system may communicate with a back office system as described above, and therefore be capable of performing the illustrated method steps. In this manner, any voice terminal can be used according to the present invention.

According to yet another example of embodiment of the present invention, the card holder may use an ordinary telephone connected to the public switched telephone line system, whereby an operator working at the code issuing organization can tell the card holder by voice the code associated with the amount of cash or cash equivalents or value items that the card holder is requesting for his electronic purse.

According to yet another example of embodiment of the present invention, a card holder can obtain the code as an SMS message. According to another example of embodiment of the present invention, the card holder can obtain the code by sending a request as a SMS message to the issuing organization, wherein the organization sends back a SMS message comprising the code.

According to yet another example of embodiment of the present invention, a list of secure codes can be handed to the card holder from an issuing organization (bank, shop, loyalty program organization, etc.) in advance that can be used to update the electronic purse offline. The amount of cash or cash equivalents or the cash or cash equivalents for value items can be drawn from the card holder's bank account when the codes are issued by the issuing organization. According to another example of embodiment of the present invention, the cash or cash equivalents that are drawn from the card holder's account is not actually drawn from the account, but only reserved for this purpose. When the electronic purse is used, a front end server that is contacted when the card holder is actually using his purse, for example, a point of sale terminal can start such a session, the reservation of the cash or cash equivalents is converted to cash or cash equivalents that has been drawn from the account. According to yet another example of embodiment of the present invention, whenever an updated secure code transferred to the electronic purse is used, for example in a point of sale terminal, the point of sale terminal can act as the communication device in the examples of systems and steps of methods as described above.

According to an example of embodiment of the present invention, a card reader, for example a DP800 device, is programmed to provide the necessary functionality of a card reader according to the present invention. Routines that can be implemented are for example user authentication. As known to a person skilled in the art, a chip card or smart card can have "hidden" memory locations that only are accessible through a master key encryption scheme, hi such locations it is possible to store authentication information, for example a PIN code. The authentication routine can then compare a PIN code stored in the "hidden" location with a typed PIN code on the key board of the card reader.

According to an aspect of the present invention, the authentication can be a Visa Dynamic Passcode process, or a MasterCard Secure Code process.

Another essential functionality provided by the card reader according to the present invention is to decode secure codes representing update information for the electronic purse. Such secure codes can be encrypted, and a copy of the encryption key may be stored in a "hidden" location in the chip card or smart card. By using the "hidden" encryption key the card reader or processor in the chip card or smart card may decode the secure code which reveals the amount of cash or cash equivalents or equivalent value items for updating the electronic purse.

According to yet another example of embodiment of the present invention, the authentication of the card and card holder as described above may result in displaying an access code for a network session with the code issuing organization. In this respect, the system and method according to the present invention provides secure handling of the transfer of cash or cash equivalents, even when the transfer actually happens off line. According to an example of embodiment of the present invention, codes displayed on the card readers display may either be calculated or be pre stored in the- information carrying device.

According to yet another example of embodiment of the present invention, any means of payment as defined by the NFC open platform standard can utilize the method of replenishing an electronic purse according to the present invention. None of the method steps according to the present invention is non-compliant or makes a device performing steps of the present invention non-compliant with the NFC standard, as known to a person skilled in the art.

According to yet another aspect of the present invention, any ISO/DEC 1443 compliant device, embedded as a stand alone device, or as a device for attachment or integration into a mobile phone, lap top computer or similar device etc. may be used as an information carrying device according to the present invention.

Claims

C l a i m s :

1.

Method for replenishing an electronic purse comprised in an information carrying device, comprising the steps of:

a) obtaining a code associated with an amount of cash or cash equivalents or equivalent value items from a code issuing organization, b) inserting the information carrying device into an offline card reader, c) inputting the obtained code to the information carrying device through an attached keyboard on the card reader, whereby the card reader initiate an updating of the electronic purse comprised in the information carrying device with the amount of cash or cash equivalents or equivalent value items associated with the obtained code.

2.

Method according to claim 1, wherein step a) further comprises obtaining the code via a mobile telephone by contacting the issuing organization with the mobile phone either via a mobile telephone connection, or via an Internet session over the mobile telephone connection.

3.

Method according to claim 1, wherein step a) further comprises obtaining the code via a Personal Digital Assistant (PDA) by contacting the issuing organization with the PDA over a wireless local area session.

4.

Method according to claim 1, wherein step a) further comprises obtaining the code via a stationary computer system by contacting the issuing organization with the stationary computer system over a wireless local area session.

5.

Method according to claim 1, wherein step a) further comprises obtaining the code via a lap top computer by contacting the issuing organization with the lap top computer over a wireless local area session.

6.

Method according to claim 1, wherein step a) further comprises obtaining the code via a stationary telephone by contacting the issuing organization with the stationary telephone over the public switched telephone lines.

5

7.

Method according to claim 1, wherein step a) further comprises obtaining the code from a list of codes issued a priori by the issuing organization. Q

8.

Method according to claim 1, wherein the information carrying device is a smart card

9.

Method according to claim 1, wherein the information carrying device is a chip card.5

10.

Method according to claim 1, wherein the information carrying device is a means of payments as defined in a Near Field Communication compliant system. Q

11.

Method according to claim 1, wherein the information carrying device is a mobile telephone.

12. 5 Method according to claim 1, wherein the information carrying device is a contact less card, NFC compliant telephone or other ISO 14443 compliant device.

13.

Method according to claim 1, wherein the card reader is a DP800 device. 0

14.

Method according to claim 1, wherein the security element is a software implementation of a DP800 or DP800-equivalent device.

15.

Method according to claim 1, wherein step c) further comprises initiating an authentication session wherein a card holder input an authentication code on the attached keyboard of the card reader.

16.

Method according to claim 15, wherein the authentication session is a Visa Dynamic

Passcode Authentication process.

17.

Method according to claim 15, wherein the authentication session is a MasterCard Secure Code process.

18. Method according to claim 1, wherein step c) further comprises decrypting the code with an encryption key read from a hidden storage location in the information carrying device.

19. Method according to any claim 1 to 18, further comprising inputting an authentication code via an attached keyboard to the card reader, whereby information stored or calculated in the information carrying device is displayed on a display attached to the card reader if the authentication is verified, and the displayed information is then used to obtain the code from the issuing organization.

20.

Method according to claim 18, wherein the displayed information is transferred over an Internet session to a server computer system that returns the code associated with the amount of cash or cash equivalents or equivalent value items.

21.

Method according to claim 1, wherein step b) is performed before step c), and then step a) is performed.

22.

Method according to claim 1, wherein step a) comprises contacting an Interactive Voice machine that functions as a front end system for the issuing organization, and wherein a card holder can obtain a code associated with the amount of cash or cash equivalents or value items the card holder wants as a voice message.

23. Method according to claim 1, wherein step a) comprises obtaining the code via SMS (Simple Message System) contact with the code issuing organization.

24.

System for replenishing an electronic purse comprised in an information carrying device, comprising following elements:

an information carrying device comprising the electronic purse, a card reader, a communication terminal, and wherein the elements of the system is used and operated according to a method according to claim 1 to 22.

25.

System according to claim 22, wherein the information carrying device is either a smart card, a chip card or means of payments used in Near Field Communication compliant system.

26.

System according to claim 22, wherein the communication terminal is either a mobile phone, a Personal Digital Assistant, lap top computer, stationary telephone, or a piece of printed material comprising codes associated with amounts of cash or cash equivalents or value items to be updated into the electronic purse in the information carrying device.