U.S. patent application number 09/864442 was filed with the patent office on 2002-11-28 for community concept for payment using rf id transponders.
Invention is credited to Burchell, Michael, Gravelle, Kelly, Pinkus, Ron.
Application Number | 20020178063 09/864442 |
Document ID | / |
Family ID | 25343293 |
Filed Date | 2002-11-28 |
United States Patent
Application |
20020178063 |
Kind Code |
A1 |
Gravelle, Kelly ; et
al. |
November 28, 2002 |
Community concept for payment using RF ID transponders
Abstract
Payment systems and methods using wireless transponders in a
community of retailers are disclosed. The disclosed systems and
method include a community of retailers, an RFID transponder card,
a number of readers for reading an identification number from the
RFID transponder card when a subscriber carrying the card enters
the community, a local computer in communication with the plurality
of points of sale for receiving the identification number and
associating the identification number with a subscriber account,
and a Clearinghouse computer for validating the transponder card
and notifying the local computer of the card's validation.
Inventors: |
Gravelle, Kelly; (San Diego,
CA) ; Pinkus, Ron; (Plano, TX) ; Burchell,
Michael; (Plano, TX) |
Correspondence
Address: |
BLANK ROME COMISKY & MCCAULEY, LLP
900 17TH STREET, N.W., SUITE 1000
WASHINGTON
DC
20006
US
|
Family ID: |
25343293 |
Appl. No.: |
09/864442 |
Filed: |
May 25, 2001 |
Current U.S.
Class: |
705/17 |
Current CPC
Class: |
G06Q 20/02 20130101;
G06Q 30/0633 20130101; G06Q 20/3278 20130101; G06Q 30/0215
20130101; G06Q 20/04 20130101; G06Q 20/204 20130101; G06Q 20/20
20130101; G06Q 20/023 20130101 |
Class at
Publication: |
705/17 |
International
Class: |
G06F 017/60 |
Claims
What is claimed is:
1. A payment system comprising: a community comprised of a
plurality of points of sale; a wireless identification tag; at
least one reader for interrogating the wireless identification tag
and reading information from the tag when the tag is in a vicinity
of the community; and a local computer for receiving the
information from the at least one reader and authorizing payment
with the tag at a first point of sale, being any point of sale from
the plurality of points of sale, upon validation of the tag.
2. The system of claim 1, further comprising: a remote computer for
selecting a source of funds for the payment with the tag.
3. The system of claim 2, wherein the remote computer conducts the
validation of the wireless identification tag and sends a
notification of said validation to the local computer.
4. The system of claim 1, wherein the local computer conducts the
validation of the wireless identification tag.
5. The system of claim 2, wherein the source of funds is a credit
card account.
6. The system of claim 2, wherein the source of funds is a check
card account.
7. The system of claim 2, wherein the source of funds is a pre-paid
balance in a subscriber account.
8. The system of claim 1, further comprising a reader connected to
the first point of sale for reading information from the tag at the
time of payment.
9. The system if claim 1, further comprising a data input connected
to the first point of sale for reading secondary data provided by a
carrier of the tag.
10. The system of claim 9, wherein the local computer
cross-correlates the secondary data with the information read from
the tag before authorizing payment with the tag.
11. The system of claim 9, wherein the secondary data comprises a
personal identification number.
12. The system of claim 9, wherein the secondary data comprises a
bar code and the data input comprises a bar code reader.
13. The system of claim 9, wherein the data input comprises a key
fob reader.
14. The system of claim 10, wherein the data input comprises a
magnetic stripe card reader.
15. The system of claim 1, wherein the information read from the
tag comprises an account index number.
16. A payment method comprising: reading information from a
wireless identification tag when the tag is located in a vicinity
of a plurality of points of sale; validating the wireless
identification tag; authorizing a payment with the tag at a first
point of sale, the first point of sale being any point of sale from
the plurality of points of sale; and selecting a source of funds
for payment with the tag.
17. The method of claim 16, wherein validating comprises: searching
for active subscriber account numbers; and approving the payment if
the information from the tag corresponds to an active subscriber
account.
18. The method of claim 16, wherein the selecting a source of funds
comprises selecting a subscriber account when a pre-paid balance in
the subscriber account exceeds an amount due at payment.
19. The method of claim 16, wherein the selecting a source of funds
comprises selecting a credit card account when a pre-paid balance
in a subscriber account does not exceed an amount due at
payment.
20. The method of claim 16, wherein the selecting a source of funds
comprises selecting a check card account when a pre-paid balance in
a subscriber account does not exceed an amount due at payment.
21. The method of claim 18, further comprising topping up a
subscriber account and selecting the subscriber account.
22. The method of claim 21, wherein topping up the subscriber
account comprises: transferring funds from a secondary account into
the subscriber account when a balance in the subscriber account
does not exceed an amount due at payment.
23. The method of claim 21, wherein the topping up the subscriber
account comprises: transferring funds from a secondary account into
the subscriber account when a balance in the subscriber account is
below a predetermined threshold.
24. The method of claim 16, further comprising: cross-correlating
secondary data provided by a carrier of the tag to the information
read from the tag.
25. The method of claim 16, further comprising: forwarding a
subscriber account status to a local computer associated with the
plurality of points of sale immediately after reading information
from the tag.
26. The method of claim 16, further comprising: consolidating
payments with the tag into a single payment before selecting the
source of funds.
Description
BACKGROUND OF THE INVENTION
[0001] 1. Field of the Invention
[0002] The present invention relates to automatic payment systems,
and more particularly, to a payment system that uses RF ID
transponders.
[0003] 2. Description of the Prior Art
[0004] One way that merchants attract consumers to their businesses
is by offering convenient and superior service. One example is the
drive-through lane of a fast food restaurant which allows a
customer to place an order, pay for the order, and receive the
ordered food without leaving his or her vehicle. Other businesses
such as gas stations and dry cleaners offer similar types of
conveniences that are also based on the knowledge that many of
their customers will likely be arriving in a vehicle. For example,
a dry cleaner may have a drive-through service or convenient
short-term parking stalls near the entrance of the establishment,
providing the customer with easy access to the business.
[0005] Another convenience generally offered to consumers is the
ability to use credit cards or bank debit cards for the payment of
goods and services. Such cashless systems allow the consumer to
remit payment without having to manually withdraw and carry cash
from a bank. One drawback with credit cards is the lengthy
processing time required to complete a credit card transaction.
Although current processing times of cashless systems are
considered acceptable in many environments, especially when large
transactions are involved, most cashless systems are inefficient
for applications such as fueling vehicles where the size of the
transaction is small, the customer arrives in a vehicle, and/or the
customer expects fast service.
[0006] Cashless systems have been developed to overcome some of the
deficiencies of a standard credit card transaction. For example, in
certain automated parking garages a customer is provided with a
radio frequency identification (RFID) tag which identifies the
customer to the proprietor of the parking garage. The RFID tag may
take many forms, for example it may be attached to the vehicle,
provided in a card, or in a key fob. When the customer enters the
parking facility, the RFID tag is interrogated by a card reader
which is located at the entrance of the parking garage close to an
entrance gate. The card reader is connected to a host computer
which checks stored user information associated with the ID number,
authorizes the car to enter, and tracks the time that the car is
parked in the garage. A local host computer maintains account
information for the identified vehicle, which can be used to
prepare periodic billing statements that are mailed to the
customer. A proprietor may have more than one parking garage, with
each local host computer connected to a single remote computer for
the centralized production of billing statements.
[0007] Another example of this type of system is MOBIL
SPEEDPASS.TM. which is used for the purchase of gasoline. The
company issues RFID tags to its customers which identify the
customer by an ID number. When a customer pulls up to a gas pump,
the RFID tag is interrogated to receive the ID number of the tag.
That number is sent via satellite to a host computer which
authenticates the tag. If authorized, the host computer returns an
authorization signal to enable the gasoline pump. The host computer
charges a previously selected credit or bank debit card to pay for
the gasoline that was actually pumped. After the credit or the bank
debit card transaction is complete, a receipt is printed for the
customer. The final transaction is then recorded in a central
database which is used to track customer buying patterns.
[0008] A problem associated with the prior art is that for each
register used by a merchants, there needs to be a an RFID tag
reader associated with it. For example, each gas pump in a gas
station that accepts payment through RFID tags must carry a tag
reader. Therefore, there is a need in the art to simplify the
system architecture of the existing cashless payment systems.
SUMMARY AND OBJECTS OF THE INVENTION
[0009] Systems and methods of the present invention enable
real-time transactions between a subscriber carrying a wireless or
RFID transponder card, and any retailer that is part of a community
of retailers. More particularly, the payment system of the present
invention includes a community comprised of a plurality of points
of sale; a wireless transponder; at least one reader for
interrogating the wireless transponder and for reading information
from the transponder when the transponder is in a vicinity of the
community; a local computer in communication with the plurality of
points of sale for receiving the information from the at least one
reader and associating the information with a subscriber account;
and a Clearinghouse computer for conducting a validation of the
transponder and sending a notification of said validation to the
local computer.
[0010] The payment method of the present invention includes the
steps of reading information from a wireless transponder when the
transponder is located in a vicinity of a plurality of points of
sale; relaying the information to a validating processor;
identifying a subscriber account corresponding to the transponder
information; and authorizing the wireless transponder corresponding
to the identified subscriber account to make transactions with any
points of sale from the plurality of points of sale.
[0011] An object of the present invention is to facilitate and
expedite transactions, such as the payment of products, that are
requested by a subscriber when the subscriber is in a community of
retailers, such as a shopping mall. Another object of the present
invention is to consolidate transactions such that the associated
cost per transaction is reduced. Still another object of the
present invention is to add security to a conventional payment
transaction by requesting the input of secondary data from a
subscriber before the transaction is completed.
[0012] With these and other objects, advantages and features of the
invention that may become hereinafter apparent, the nature of the
invention may be more clearly understood by reference to the
following detailed description of the invention, the appended
claims and to the accompanying drawings.
BRIEF DESCRIPTION OF THE DRAWINGS
[0013] The preferred embodiments of this invention will be
described in detail, with reference to the following figures,
wherein:
[0014] FIG. 1 is a view of the first embodiment of the payment
system of the present invention; and
[0015] FIG. 2 is a view of the payment method of the present
invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[0016] The payment system of the present invention includes an RFID
transponder mounted on a vehicle or carried by a person, an RFID
reader, and a secondary data input device. The transponder ID is
read from the transponder by a tag reader when it enters a
community. After the read takes place, the secondary data input
device is activated to finalize an electronic transaction, for
example, a payment. For example, an RFID transponder mounted on a
vehicle might be read at the entrance to a gas station. A
validating processor or computer communicating with the reader then
validates that RFID transponder as having a valid ID and account,
and the information read is then stored in a file or database
located at the validating computer. That validating computer may be
local PC 109 in FIG. 1 or a processor located in the Clearinghouse
101. The preferred embodiment involves maintaining a simple and
efficient (from a lookup time and memory perspective) flat file in
the local PC 109. This is maintained with periodic update messages
from the Clearinghouse 101. Updates to the flat file occur as
frequently as required to deliver the required fidelity in the
database. The advantage of this approach is that if communications
are down or corrupted, the system will continue to be able to
operate and validate transactions, albeit somewhat degraded by the
aging of the data contained in the flat file.
[0017] Alternatively, validation could be done directly at the
Clearinghouse 101. One disadvantage of this is that the network
connection must be up all the time, dictating the need for a more
reliable communication link that could be more expensive to
operate. Further, the needs for an "always up" link might make it
difficult to use the Internet as the dissemination network, since
an always up connection increases the risk of being hacked in the
current environment.
[0018] The data used for corroborating the identity of the RFID
transponder, for example the ID number and the account number
associated with that ID, may also be stored locally in the
validating computer.
[0019] Once the transaction has been requested, it can be completed
by cross-correlating the RFID transponder read with the secondary
input data. That is, in order to complete a transaction, the
secondary data input device accepts data from the carrier of the
RFID transponder and that secondary data is cross-correlated
against the transponder ID to verify the identity of the carrier
and thus complete the transaction.
[0020] In one embodiment of the present invention, the secondary
data provided to the secondary data input device is a personal
identification number (PIN). The PIN is part of the validation
file. The PIN may be entered, for example, into an existing keypad
at a fueling pump. If the entered PIN matches one of those in the
local computer corresponding to a tag that has been read into the
community, the associated account is used to settle the
transaction. This feature of the present invention differs from the
prior art (e.g., ATM machine) in which only one card is
corroborated against one PIN. By having multiple active PINs, a
more convenient use of the system is allowed because people can
remember their own PIN, not an arbitrary number assigned to them.
This PIN permits inexpensive localization of the transaction to a
specific point, like a fuel pump, and it also provides high
security against fraud and counterfeiting. A system to fully
localize the transponder is more expensive to implement.
[0021] Other types of secondary data that may be used to
cross-correlate the RFID transponder read include a bar code
printed on a key fob, which may in turn be read by an in-store bar
code reader, a low cost inductive key fob, another RFID
transponder, a biometric sensor (such as one that encodes
fingerprints or finger geometry) or a magnetic stripe card,
etc.
[0022] Since the RFID transponder is identified well in advance of
the transaction, all necessary authorizations and account checks
with respect to the account corresponding to the transponder card
can be made before the actual transaction takes place. As a result,
the time that a customer waits to complete the transaction is
reduced due to the pre-authorization, which in essence turns the
transaction into a real-time transaction. That is, on-line
verification at the time of finalizing the transaction is not
required.
[0023] Patrons desiring to use the RFID transponder for
effectuating the electronic transactions may sign up for activation
of the RFID transponder card by registering over the Internet. As a
condition for activation, a prepayment may be required as a
precautionary measure against overcharging the account associated
with the RFID transponder card. The card may be picked up at a
participating retailer in the community. It is important to point
out that the community may consist of a single retailer.
[0024] The system of the present invention may also include a
service center that supports the participating retailers. The
participating retailers are the primary interface for customer
queries and concerns. The service center may also guarantee payment
for all transactions validated, but all account management is done
via participating retailers. No statements or bills are sent to the
subscriber, but they will be made available through the
Internet.
[0025] The method of the present invention involves the issuance of
the RFID transponder card to a subscriber and the transactions
involving the transponder card. The RFID transponder card includes
an account index number electronically encoded in it. When applying
for a subscriber account, a subscriber provides a choice of
electronic settlement means such as a credit card or a debit card.
The subscriber may also agree to a nominal initial deposit to his
account of a certain amount which is debited from his settling
account. The subscriber may also agree that as soon as the balance
on the subscriber's account drops below a predetermined threshold,
the service center is authorized to "top up" (i.e., replace the
debited amount) the subscriber account from the settlement account.
The subscriber will authorize that the threshold and the "top up"
amounts may vary according to usage, for example. In this manner,
the subscriber account balance will seldom become negative awaiting
an authorization from the corresponding settling account.
[0026] When subscribers enter the community, their corresponding
RFID transponder cards are read by any of the readers located in
the community and connected to the point of sale systems of
participating retailers. The information read is then relayed to a
real-time validator. The real-time validator is a data processor
that determines that the account identified is authorized to make
transactions within the community.
[0027] When payment is due at one of the participating retailers in
the community, the subscriber may only need to offer the
cross-correlating input data to a secondary data input device. As
mentioned before, this may be as simple as entering a PIN. The
validator will then provide the participating retailer with an
authorization code that guarantees the transaction. Transactions
are posted to the service center until the subscriber's account
falls below the specified threshold. The subscriber's account is
subsequently topped up by debiting the associated settlement
account.
[0028] FIG. 1 shows a first embodiment of the payment system 100 of
the present invention. The system 100 includes an RFID transponder
card (the card 103), a vehicle having the card 103 attached to its
windshield; an RFID transponder card reader (reader 107); a local
personal computer (PC 109); a number of participating retailers,
namely, a central tollway 111, an airport 113, a parking garage
115, and a retail outlet 117. The system 100 further includes a
Clearinghouse 101 and a banking facility 121.
[0029] The Clearinghouse 101, which is also referred to as the
service center, may include computers and personnel to support the
participating retailers for all transactions validated. The
transactions may be validated in real-time by a dedicated processor
("the validator") located at the Clearinghouse location 101.
Alternatively, the validator may be located at any of the locations
of the participating retailers 111-117, or may be implemented as a
software module running on the local PC 109.
[0030] The Clearinghouse 101 is also responsible for issuing a
subscriber account. The card 103 associated with that subscriber
account may be issued by the Clearinghouse 101 or by any one of the
participating retailers 111-117. In the embodiment of FIG. 1, the
card 103 is in the form of a windshield sticker. Any other
embodiment that may carry an RFID tag may also be used as a
potential transponder card that can be used with the payment system
of the present invention. Once a vehicle 105 carrying the card 103
enters a community of participating retailers, the reader 107 reads
information from the card 103 and forwards the information to a
local PC 109. Only one local PC 109 is shown on FIG. 1 to
illustrate the use of PC 109 by participating retailers 111-117,
assuming they comprise the community. Alternatively, if the
community is comprised of one participating retailer (e.g., that
retailer location is too far from other participating retailers),
then FIG. 1 would show a local PC 109 for each of the individual
participating retailers 111-117. The local PC 109 reads the
subscriber information from the card 103 and attempts to match the
information to information in a subscriber database. The subscriber
database resides at the Clearinghouse, although as mentioned above
a limited sub-set of the data in the database may also be stored as
a flat file in the local PC 109. The subscriber database includes
the identification number of active cards and the corresponding
account numbers of current subscribers. If a match between a read
card 103 and one of the active cards in the database is found, the
local PC validates the card 103. Once a card has been validated, a
transaction can be requested through any POS terminal in the
community. Further, the transaction will be authorized in real-time
upon entering a secondary data input.
[0031] An account status corresponding to card 103 is sent to the
community as soon as the card 103 is read. After the card has been
validated and the transaction has been authorized, the transaction
information is sent to the Clearinghouse 101. The Clearinghouse 101
serves as an intermediary between the POS and the ultimate source
of funds (i.e., a settlement account such as a credit card, debit
card, or bank account). Instead of requesting a withdrawal from
that settlement account each time a transaction is completed, the
Clearinghouse 101 may consolidate all the transactions finalized
within a given community for a certain period of time, and request
a single withdrawal. The user of the card 103 would still be able
to view a record with individual transactions via statements 123
produced by the Clearinghouse 101. The statements 123 may be
accessed through a web site.
[0032] The preferred embodiment of the present invention does not
consolidate all the transactions into a single request for
withdrawal. Instead, the preferred embodiment is to request a
single withdrawal before any transaction involving the card 103
takes place. That single withdrawal is used to establish the
subscriber account.
[0033] Regardless of when the single withdrawal from the settlement
account takes place, the consolidation of transactions results in
lower costs. For example, fees charged in connection to payment
with a credit or debit card can also be consolidated. While debit
card (ACH) transactions are based on a fixed fee, credit card
transactions are based on a fixed fee and a percentage of the
transaction. The method of the present invention consolidates, for
example, low value transactions such that the fixed portion of the
settlement cost is spread over multiple transactions, thus reducing
the per transaction cost. The settlement cost may be defined as the
cost to open subscriber's account paid in a single transaction by
either debit or credit card or the amount of a single withdrawal
after the transactions have been consolidated.
[0034] For small dollar value transactions this can be dramatic. A
typical debit card transaction cost is $0.20. On a $2.00
transaction, this represents 10% of the total value of the
transaction. If ten such transactions are consolidated, however,
and a $20.00 withdrawal from the credit or debit card is made to
deposit it into the subscriber's account, the cost drops to one
percent (1%) of the value of the transaction. Further, because the
Clearinghouse 101 processes a large volume of transactions, the
operator of the Clearinghouse 101 may negotiate better fees than
the individual participating retailers. The same advantage applies
for credit card settlement at low dollar values, but is less
dramatic at higher dollar transactions.
[0035] The Clearinghouse 101 essentially holds the account data
that is required to clear the transaction from the transponder in
the lane, and then routes that transaction for final settlement
according to the data on the account associated with the
transponder. In some cases this can be also done at the front end,
where for example the flat file may have a credit card number
associated with the tag. If the tag is set up as a pass-through
account, this data will be routed to the participating bank for
clearance. This may occur in the back office for each transaction.
Alternatively, a pre-paid account may be used and when a low
balance threshold is crossed the Clearinghouse 101 will then top up
the account from a designated source such as a credit or debit
transaction with a Bank 119, or via an ACH transaction directly
into the customer's bank 121 account. Essentially the Clearinghouse
101 is a big switch that applies business rules associated with the
settlement of a given transaction.
[0036] FIG. 2 illustrates a process for conducting transactions
with the system of FIG. 1. The first step 201 in the process is to
have applicants subscribe to the system by filling out an
application. The application may be completed by telephone or via
the Internet. As part of the application process, the potential
subscriber may provide a credit card number or debit card number
which may be used to establish the subscriber's account. The funds
required as part of the completion of each transaction within the
community 203 will be withdrawn from the subscriber's account.
[0037] After the application is processed, the applicant becomes a
subscriber and can thus receive card 103. Once the subscriber
receives the card 103, the subscriber may enter the community 203
to carry out transactions with card 103. At least one of a number
of readers in the community will read the card 103 when the card is
in the vicinity of those readers, thus indicating that the
subscriber is in the community. The information in card 103 is then
passed from the reader 107 to the local PC 109.
[0038] In the local PC 109, the reader card information is
associated with an account. That account number is then sent to the
Clearinghouse 101, where it is validated. The Clearinghouse sends
the local PC 109 a notification of the validation. Alternatively,
the tag may be validated at the local PC 109.
[0039] When the subscriber decides to complete a transaction, for
example a purchase, the subscriber need only show the card 103 to a
primary data input device, such as a reader 107, connected to the
POS device to complete the transaction. After a merchant enters the
price of the transaction in the POS device, the transaction is
completed in real-time upon a reading of the card 103 since the
card has already been validated. For security purposes, a PIN may
be entered by the subscriber into the POS device for corroboration
against the subscriber's account.
[0040] The card 103 may have a duplicate that is placed on the
windshield of the subscirber's car. In this manner, the windshield
card is first read to indicate the presence of the subscriber in
the community, while the card being carried by the subscriber is
read when the transaction takes place.
[0041] Once completed, the transaction information is passed from
the POS to the local PC 109, to the Clearinghouse 101. The
Clearinghouse may in turn pass the transaction information to the
credit/debit card service provider 119 or may consolidate several
transactions before doing so.
[0042] While this invention has been described in conjunction with
the specific embodiments outlined above, it is evident that many
alternatives, modifications and variations are apparent to those
skilled in the art. Accordingly, the preferred embodiments of the
invention as set forth above are intended to be illustrative and
not limiting. Various changes may be made without departing from
the spirit and scope of the invention.
* * * * *