U.S. patent application number 11/290903 was filed with the patent office on 2006-08-10 for system and method for transponder-enabled account transactions.
This patent application is currently assigned to First USA Bank N.A.. Invention is credited to Gerald A. JR. Beechum, Scott Philp Bertetti, Scott W. Rau.
Application Number | 20060178937 11/290903 |
Document ID | / |
Family ID | 24527802 |
Filed Date | 2006-08-10 |
United States Patent
Application |
20060178937 |
Kind Code |
A1 |
Rau; Scott W. ; et
al. |
August 10, 2006 |
System and method for transponder-enabled account transactions
Abstract
A transponder-initiated transaction system is
electromagnetically coupled to an account transponder device at the
point of sale. The account transponder device may be embedded
within a watch, key chain or other personal article for convenience
or affinity. The transponder device may communicate account
information to an RF-enabled point of sale device, enabling
transactions to take place without resort to remote data processing
facilities. In other embodiments partial or complete account
information may be accessed or stored at co-located or remote
sources. New account registrants may access a Web site to enter a
transponder ID and activate a new account, which may be a credit
account, debit account, cash account, special purpose vending
account, or other types of accounts.
Inventors: |
Rau; Scott W.; (Pottstown,
PA) ; Bertetti; Scott Philp; (Wilmington, DE)
; Beechum; Gerald A. JR.; (Chicago, IL) |
Correspondence
Address: |
HUNTON & WILLIAMS LLP;INTELLECTUAL PROPERTY DEPARTMENT
1900 K STREET, N.W.
SUITE 1200
WASHINGTON
DC
20006-1109
US
|
Assignee: |
First USA Bank N.A.
|
Family ID: |
24527802 |
Appl. No.: |
11/290903 |
Filed: |
November 29, 2005 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
|
09630595 |
Aug 1, 2000 |
|
|
|
11290903 |
Nov 29, 2005 |
|
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Current U.S.
Class: |
705/18 ;
705/23 |
Current CPC
Class: |
G06F 21/00 20130101;
G06Q 20/04 20130101; G06Q 20/206 20130101; G06Q 20/327 20130101;
G06Q 40/12 20131203; G06Q 20/204 20130101; G06Q 20/3674 20130101;
G06Q 20/202 20130101; G06Q 20/208 20130101; G06Q 20/20 20130101;
G06Q 20/26 20130101; G06Q 40/02 20130101 |
Class at
Publication: |
705/018 ;
705/023 |
International
Class: |
G06Q 20/00 20060101
G06Q020/00 |
Claims
1-20. (canceled)
21. A transponder-reader payment system comprising: a transponder
system responsive to a Radio Frequency (RF) interrogation signal,
the transponder system including a transponder database, the
transponder database storing at least a transponder system
identifier; a Radio Frequency Identification (RFID) reader in RF
communication with the transponder system, the RFID reader
providing an interrogation signal to the transponder system and
receiving the transponder system identifier; a merchant system for
receiving the transponder system identifier, the merchant system
including a merchant system identifier and a merchant point of
interaction device in communication with the RFID reader, the
merchant system configured to match the transponder system
identifier and the merchant system identifier to a user transaction
request forming a merchant transaction request; an issuer system
comprising: an issuer system server in communication with the
merchant point of interaction device for receiving the merchant
transaction request; and an issuer system database including a
funding source data file containing a funding source value for
satisfying the merchant transaction request and a funding account
protocol, the funding source data file associated with the
transponder system identifier; and a primary funding source
containing a primary funding source value, the primary funding
source in communication with the issuer system server, the primary
funding source configured for one of providing value to and
receiving value from the funding account data file, the primary
funding source associated with the transponder system identifier,
wherein the issuer system retrieves at least a portion of the user
transaction request value from the funding source data file and
provides at least a portion of the funding source value to the
merchant system in accordance with the funding protocol.
22. The transponder-reader system of claim 21, further comprising a
secondary funding source containing a secondary funding source
value, the secondary funding source in communication with the
issuer system server, the secondary funding source configured for
one of providing value to and receiving value from the funding
source data file, the secondary funding source associated with the
transponder system identifier.
23. The transponder-reader system of claim 21, wherein the funding
source data file comprises a preloaded value data file and a reload
protocol data file, the preloaded value data file and reload
protocol data file associated with the transponder system
identifier, the preload value data file storing a predetermined
value for use in satisfying a user transaction request.
24. The transponder-reader system of claim 23, wherein the primary
funding source is associated with the preloaded value data
file.
25. The transponder-reader payment system of claim 23 wherein the
issuer system server retrieves the portion of the funding source
value from the primary funding source in accordance with the reload
protocol data file.
26. The transponder-reader payment system of claim 25, wherein the
primary funding source comprises a stored value account, charge
card account, loyalty account, phone card account, credit card
account or debit card account, or combinations thereof.
27. The transponder-reader payment system of claim 21, wherein the
RFID reader receives the transponder system identifier in Track
1/Track 2 format.
28. A transponder-reader payment system comprising: a transponder
system responsive to a Radio Frequency (RF) interrogation signal,
the transponder system including a transponder database, the
transponder database storing at least a transponder system
identifier; a Radio Frequency Identification (RFID) reader in RF
communication with the transponder system, the RFID reader
providing an interrogation signal to the transponder system and
receiving the transponder system identifier; a merchant system for
receiving the transponder system identifier, the merchant system
including a merchant system identifier and a merchant point of
interaction device in communication with the RFID reader, the
merchant system configured to match the transponder system
identifier and the merchant system identifier to a user transaction
request forming a merchant transaction request; an issuer system
comprising: an issuer system server in communication with the
merchant point of interaction device for receiving the merchant
transaction request; and an issuer system database including a
funding source data file containing a funding source value for
satisfying the merchant transaction request and a funding account
protocol, the funding source data file associated with the
transponder system identifier; and a primary funding source
containing a primary funding source value, the primary funding
source in communication with the issuer system server, the primary
finding source configured for one of providing value to and
receiving value from the funding account data file, the primary
funding source associated with the transponder system identifier,
wherein the issuer system retrieves at least a portion of the user
transaction request value from the funding source data file and
provides at least a portion of the finding source value to the
merchant system in accordance with the funding protocol, wherein
further the primary funding source comprises a stored value
account, charge card account, loyalty account, phone card account,
credit card account or debit card account, or combinations
thereof.
29. A method of transponder-reader payment comprising: providing a
transponder system identifier to a merchant system via radio
frequency signal; matching the transponder system identifier to the
merchant system identifier and a user transaction request to form a
merchant transaction request, the user transaction request
containing a transaction value and a transaction identifying
marker; providing the merchant transaction request to an issuer
system server, the issuer system server comprising a funding
account; and retrieving value from at least one of a primary
funding source and a secondary funding source and providing the
value to the funding account in accordance with a user defined
funding protocol.
30. The method of claim 29 further comprising retrieving at least a
portion of the user transaction value from the funding account and
providing the retrieved portion of the user transaction value to a
merchant system in accordance with the user defined funding
protocol.
31. The method of claim 30, wherein the funding account comprises a
preloaded value data file, wherein a value substantially equivalent
to the retrieved portion of the user transaction value is added to
the value in the preloaded value data file according to a preload
protocol.
32. The method of claim 29, wherein the funding account comprises a
stored value account, charge card account, loyalty account, phone
card account, credit card account or debit card account, or
combinations thereof.
33. The method of claim 29, wherein the transponder system
identifier is provided to the merchant system in Track 1/Track 2
format.
34. A system for completing a transaction using a transaction
device comprising: a RFID transaction device associated with a
transaction device proxy code, the RFID transaction device
comprising a transaction device storage for storing the transaction
device proxy code; a merchant system, the merchant system including
a merchant system database, and a point of interaction device in
communication with the RFID transaction device for transmitting and
receiving data from the RFID transaction device in a contactless
environment, the point of interaction device in RF communication
with the RFID transaction device; a transaction device account
issuer system for maintaining a unique transaction account
associated with the RFID transaction device, the transaction
account correlated to a unique transaction account identifier, the
transaction account for use in completing a transaction request,
wherein the transaction device account issuer system provides the
unique transaction account identifier to the transaction device
database, wherein further the RFID transaction device provides the
transaction device identifier to the merchant system point of
interaction, the merchant system associating the transaction device
identifier to the transaction request, wherein further the merchant
system provides at least the transaction device identifier and the
transaction request to the issuer system, wherein further the
issuer system correlates the transaction device identifier to the
unique transaction account, the issuer system satisfying the
transaction request relative to the unique transaction account.
35. The method of claim 34, wherein the unique transaction account
comprises a stored value account, charge card account, loyalty
account, phone card account, credit card account or debit card
account, or combinations thereof.
36. The method of claim 34, wherein the transponder device proxy
code is provided to the point of interaction device in Track
1/Track 2 format.
37. A method for completing a transaction in a contactless
environment comprising: providing a proxy code to a RFID
transaction device; facilitating the providing of the proxy code to
a merchant system; facilitating the providing of the proxy code to
a transaction device issuer system, the transaction device issuer
system maintaining a transaction device account correlative to the
proxy code; and facilitating the completion of a transaction
request correlative to the transaction device account.
38. The method of claim 37, wherein the transaction account
comprises a stored value account, charge card account, loyalty
account, phone card account, credit card account or debit card
account, or combinations thereof.
39. The method of claim 37, wherein the proxy code is provided to
the merchant system in Track 1/Track 2 format.
40. A method of transmitting data for transaction completion
comprising: receiving a proxy transaction device account
identifier, wherein the proxy account transaction device identifier
includes at least one portion of a transaction device identifier
associated with a transaction account; providing a transaction
account identifier in accordance with a portion of the proxy
transaction device identifier, the portion of the proxy transaction
device identifier corresponding to a portion of the transaction
account identifier; and correlating the transaction account
identifier with a transaction account for use in satisfying a
transaction.
41. The method of claim 40, wherein the transaction account
comprises a stored value account, charge card account, loyalty
account, phone card account, credit card account or debit card
account, or combinations thereof.
42. The method of claim 40, wherein the proxy transaction device
account identifier is received in Track 1/Track 2 format.
43. A computer implemented service for updating a merchant customer
account database over a network for RF payment devices, comprising:
a first database of information having a plurality of merchant
customer records; a remote merchant customer database having a
first plurality of customer account records, each of the account
records associated with a corresponding recurring billing account
record; a merchant process server for appending a merchant
processing request to at least one of the first plurality of
customer accounts to produce a merchant processing request data
file for seeking approval of a transaction, the merchant process
server receiving the transaction from an RF payment device,
identifying one of the account records with the RF payment device,
correlating the one account record with the corresponding recurring
billing account record; and a process server for receiving the
first database of information and the merchant processing request
data file, the process server configured to compare the first
database of information and the merchant processing request data
file to produce a first comparison data file, the first comparison
data file comprising a first record including a compilation of the
merchant processing requests accepted for processing by the process
server for the requested transaction, the first comparison data
file further comprising a second record including a compilation of
the merchant processing requests rejected for processing by the
process server, the process server further configured to update the
first database of information in accordance with the merchant
processing request data file to include approved transactions from
the RF payment device on the corresponding recurring billing
record.
44. The service of claim 43, wherein the recurring billing record
is associated with a stored value account, charge card account,
loyalty account, phone card account, credit card account or debit
card account, or combinations thereof.
45. The service of claim 43, wherein information received by the
merchant process server from the RF payment device that identifies
one of the account records with the RF payment device is received
in Track 1/Track 2 format.
46. A method of updating a merchant customer transaction account
database using a computer network for RF payment devices,
comprising: receiving a first plurality of customer transaction
account records, each of the account records being associated with
a corresponding recurring billing account record; storing the first
plurality of customer transaction account records on a local
database, the local database being maintained by a local process
server; storing the first plurality of customer transaction account
records in a remote database, the remote database being accessed
through a remote process server; receiving by a merchant process
server the transactions from an RF payment device, identifying one
of the account records corresponding with the RF payment device,
and correlating the one account record with the corresponding
recurring billing account record; providing a periodic registry
file to the remote process server, the periodic registry file
comprising an update request to the plurality of customer
transaction account records for transactions requesting approval by
the merchant system, the process server comparing the periodic
registry file to the first plurality of customer transaction
account record and updating the first plurality of customer
transaction account records according to an order of process steps,
the remote process server generating a maintenance file in response
to the comparison of the periodic registry file to the first
plurality of customer transaction account records; providing the
maintenance file to the local process server, the local process
server comparing the maintenance file to the first plurality of
customer transaction account records on a local database; and
updating the first plurality of customer transaction account
records on a local database in response to the maintenance file to
include approved transactions from the RF payment device on the
corresponding recurring billing record.
47. The method of claim 46 further comprising pre-authorizing the
first plurality of customer transaction account records.
48. The method of claim 46, wherein the recurrent billing account
record is associated with a stored value account, charge card
account, loyalty account, phone card account, credit card account
or debit card account, or combinations thereof.
49. A method for facilitating the re-association of an account
number associated with a first transaction account to a second
transaction account comprising: providing a second transaction
account; receiving an account number associated with a first
transaction account; associating the account number with the second
transaction account; wherein the account number is a proxy account
number associated with a transponder, wherein the proxy account
number within a proxy system is configured to associate the proxy
account number to more than one transaction account, and wherein
the proxy account number is authorized to be used for multiple
transactions.
50. The method of claim 49 wherein the first transaction account
comprises a stored value account, charge card account, loyalty
account, phone card account, credit card account or debit card
account, or combinations thereof.
51. The method of claim 49 wherein the second transaction account
comprises a stored value account, charge card account, loyalty
account, phone card account, credit card account or debit card
account, or combinations thereof.
52. The method of claim 49, wherein the account number is received
in Track 1/Track 2 format.
Description
FIELD OF THE INVENTION
[0001] The invention relates to the field of electronic commerce,
and more particularly to the use of transponder-activated account
transactions at point of sale or other locations.
BACKGROUND OF THE INVENTION
[0002] The use of electromagnetically-coupled transducers for
commercial transaction processing has become increasingly popular
in recent times. The advent of compact, inexpensive electronics,
transponder-equipped point of sale equipment, and attendant
information processing assets have enabled a variety of vendors to
offer account-linked transaction systems. Those systems include,
for example, subway or other transportation devices, telephone
calling devices, and others such as the SpeedPass.TM. offered by
Mobil Corp. for gasoline point of sale transactions. In that and
other systems, a receiver emits electromagnetic signals to a device
in proximity to a gasoline pump over radio frequencies (RF),
activating an embedded transponder within the transaction device.
The transaction device is identified by some sort of identification
information, which information is then relayed from the point of
sale to an offsite information processing facility. However, these
types of distributed systems suffer from more than one
disadvantage.
[0003] For one, transactions made according to that technology
require that separate offsite computing facilities be accessed,
since the transponder in encoded with information identifying the
transponder but not the account information necessary to complete
the transaction. Processing times and time to completion of
transactions are therefore increased, and the expense of linking
and maintaining information processing facilities to service the
point of sale request is significant. Moreover, the initiation of
new accounts to use such wireless vending points requires backend
processing facilitates to enter a new user's account to the remote
data processing facility, as well as to encode and associate the
transponder with particular new accounts. More streamlined,
convenient and flexible transaction technology is desirable.
SUMMARY OF THE INVENTION
[0004] The invention overcoming these and other drawbacks in the
art relates to a system and method for transponder-activated
transactions, generally involving the presentation and sensing of
an electromagnetically coupled transponder to an RF-enabled point
of sale system. In the practice of the invention, the transponder
may be preferably encoded with not merely identifying or
serializing information, but also account information which may be
used to authorize or record transactions at the instant of sale, so
that remote data processing may not be necessary. Users of the
transponder of the invention may link the device to more than one
type of account, and activate the transponder using Web or other
network-enabled interfaces.
BRIEF DESCRIPTION OF THE DRAWINGS
[0005] The invention will described with reference to the
accompanying drawings, in which like elements are referenced by
like numerals.
[0006] FIG. 1 illustrates an overall transaction architecture
according -to one embodiment of the invention.
[0007] FIG. 2 illustrates an overall architecture of the invention
according to a second embodiment of the invention.
[0008] FIG. 3 illustrates an activation architecture for the
initiation of user accounts according to the invention.
[0009] FIG. 4 illustrates a flowchart of transaction processing
according to the invention.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS
[0010] As illustrated in FIG. 1, in a first embodiment of the
invention, an overall point of sale architecture includes a
transponder 102 which communicates via an RF link 104 to a receiver
106. The transponder 102 may be or include any of several known
electromagnetically coupled devices, generally activated by
proximity to an RF-enabled receiving unit, such as receiver 106.
Transponder 102 may, for instance, contain an electromagnetic coil
antenna for inductive coupling to receiver 106, thereby being
energized with small but sufficient electric current to activate
embedded electronics within transponder 102. Those electronics may
include memory such as CMOS memory, logic gates, filters for
isolating discrete transmission frequencies and other elements
known in the art. In one embodiment, transponder 102 may be
programmable and able to receive updated programmable instructions
via RF link 104, as well as to have electronic memory erased or
updated during transactions. Receiver 106 may include an
electromagnetic antenna to couple with transponder 102, generally
within the range of a few feet of the device.
[0011] In the embodiment illustrated in FIG. 1, the receiver 106 is
connected to a point of sale (POS) device 108 for conducting a
commercial or other transaction. For instance, the point of sale
device 108 may be or include any of several commercially known
electronic cash registers or related transaction processing
equipment, such as point of sale terminals manufactured by Sharp
Corp. or others. In one embodiment of the invention, transponder
102 may be embedded within a personal article for convenience,
aesthetic and affinity purposes. In that regard, the invention has
been integrated in one implementation within a fully functional
watch manufactured by the Swatch Corporation. Embedding in other
personal articles, such as key chains, pavers, clothing or other
items is also possible.
[0012] In the operation of the invention, a user who has subscribed
to the account system of the invention may approach the receiver
106 at the point of sale device 108 to initiate and complete a
purchase or other transaction, such as at a restaurant or grocery
market checkout line, or other points of sale. In the embodiment
illustrated in FIG. 1, transponder 102 contains an encoded
transponder ID 110, which may for instance be a 5-digit number or
other identifying information. In this embodiment, transponder 102
may also store an account table 112 directly recording account
information for the subscribed user of the transponder 102. The
account table 112 may be or include, for instance, an indication of
an account number, balance, limit and other information for a debit
account, a cash account, a credit card account, special premises
account for internal use such as by employees, or other account
information associated with users of the system.
[0013] In the implementation of this embodiment of the invention,
receiver 106 is configured to receive the account table 112 and
apply an amount being executed at the point of sale device 108 to
the account reflected within the account table 112. For instance, a
patron who has subscribed to an account according to the system of
the invention may approach receiver 106 in a restaurant line and
wave a watch or other article containing transponder 102 in
proximity of the receiver 106. When transponder 102 comes within
range of receiver 106, transponder. 102 may be inductively coupled
to the coils of an electromagnetic antenna within receiver 106
inducing electrical energy within transponder 102, to establish the
RF link 104 with the receiver 106. Upon activation of transponder
102 and radiation of transponder ID 110 to the receiver 106, the
receiver 106 may respond with an acknowledge signal to the
transponder 102. The point of sale device 108 may indicate on a
display screen or otherwise that a transaction is ready to be
commenced. Once the point of sale device 108 generates total amount
due for the transaction, the receiver 106 may interrogate
transponder 102 to obtain account table information from account
table 112 for application to the sale.
[0014] For instance, if a patron has purchased a meal in a
restaurant line at point of sale device 108, the total purchase
price may be validated against available credit, available cash or
other account-specified balances within account table 112 for
completion of the transaction. Conversely, if the amount of the
transaction cannot be validated against account table 112, the
point of sale device 108 may indicate "cash required" or another
message that transponder validation or authorization has failed. If
the transaction amount is validated, receiver 106 enters the
transaction amount, recalculates an account balance for storage
within account table 112 and transmits the revised account table
112 information over the RF link 104 to the transponder 102. A
transaction completion signal may be emitted by receiver 106, which
in one embodiment may turn off or decouple the transponder 102 via
RF link 104.
[0015] Among other advantages, because the receiver 106 and other
transaction elements do not need to resort to offsite transaction
processing, conduct of the transaction from initiation through
approval and completion are completed quickly, often virtually
instantaneously to a subscriber at the point of sale. It may be
noted that receiver 106 and point of sale device 108 may be
configured to execute a variety of other types of transactions,
such as retail checkouts of books, movies, other media, and other
transaction events.
[0016] In terms of new accounts registration as illustrated in FIG.
3, in the invention a network-based activation architecture may be
advantageously employed. As shown in the figure, a new user may
access a client work station 118 connected via communications link
120 to a registration server 122. The communications link 120 may
be, include or access any one or more of, for instance, the
Internet, an intranet, a PAN (Personal Area Network), a LAN (Local
Area Network), a WAN (Wide Area Network) or a MAN (Metropolitan
Area Network), a fame relay connection, an Advanced Intelligent
Network (AIN) connection, a synchronous optical network (SONET)
connection, a digital T1, T3 or E1 line, Digital Data Service (DDS)
connection, DSL (Digital Subscriber Line) connection, an Ethernet
connection, an ISDN (Integrated Services Digital Network) line, a
dial-up port such as a V.90, V.34 or V.34bis analog modem
connection, a cable modem, an ATM (Asynchronous Transfer Mode)
connection, or FDDN (Fiber Distributed Data Networks) or CDDI
(Copper Distrbuted Data Interface) connections.
[0017] Communications link 120 may furthermore be, include or
access any one or more of a WAP (Wireless Application Protocol)
link, a GPRS (General Packet Radio Service) link, a GSM (Global
System for Mobile Communication) link, a CDMA (Code Division
Multiple Access) or TDMA (Time Division Multiple Access) link such
as a cellular phone channel, a GPS (Global Positioning System)
link, CDPD (cellular digital packet data), a Rf (Research in
Motion, Limited) duplex paging type device, a Bluetooth radio link,
or an IEEE 802.11-based radio frequency link. Communications link
120 may yet further be, include or access any one or more of an
RS-232 serial connection, an IEEE-1394 (Firewire) connection, an
IrDA (infrared) port, a SCSI (Small Computer Serial Interface)
connection, a USB (Universal Serial Bus) connection or other wired
or wireless, digital or analog interface or connection.
[0018] The registration server 122 may be or include, for instance,
a workstation running the Microsoft Windows.TM.0 NT.TM.
Windows.TM.2000, Unix, Linux, Xenix, IBM AIX, Hewlett-Packard UX,
Novell Netware.TM., sun Microsystems Solaris.TM., OS/2.TM.,
BeOS.TM., Mach, Apache, OpenStep.TM. or other operating system or
platform.
[0019] The registration server 122 may communicate with client
workstation 118 to receive preassigned information related to
transponder 102, such as transponder ID 110 which may be printed by
sticker on a watch or other article housing the device, for entry
into a database 126 within registration server 122 and the setting
up of an account. The account may illustratively include or be more
than one type of account 124a . . . 124n, such as cash accounts,
debit accounts, credit card accounts, special purpose vending
accounts, telephone card accounts, or others. The registration
server 122 may validate the transponder ID 110, and interrogate a
new subscriber at client work station 118 to identify or select
which one or more of accounts 124a . . . 124n the user wishes to
associate with the transponder 102.
[0020] For instance, the registration 122 may accept a preexisting
credit card number for registration with the transponder 102 and
execution of future transactions. Once new account information is
established, the registration server 122 may communicate via
network connection to receiver 106 to update subscriber
registration tables within the database 126, receiver 106, point of
sale device 108 or other associated hardware to authorize
transactions at the point of sale. The paperwork, delay,
possibility for error and other drawbacks of paper-based back end
account registration is thereby avoided.
[0021] A second illustrative embodiment of the invention is shown
in FIG. 2, generally involving a processing architecture similar to
that of FIG. 1. In this embodiment, a transponder 102 again
communicates via RF link 104 with receiver 106 to effectuate point
of sale or other tractions. However, in the embodiment of FIG. 2 a
portion or all of account table 112 or other information stored in
transponder 102 in the first embodiment may be offloaded to
economize on the necessary electronics, power consumption and other
properties of transponder 102. In the embodiment illustrated in
FIG. 2, the point of sale device 108 is additionally connected to a
transaction server 116 via communications link 114, for the purpose
of authorizing in whole or in part transactions presented for
payment using transponder 102. Communications link 114 may be,
include or access communications resources similar to
communications link 120.
[0022] In this embodiment, part or all of the information of
account table 112 may be stored in hard disk or other storage of
transaction server 116. Transaction initiation begins in the same
manner as the embodiment illustrated in FIG. 1, however, after
acknowledgments are exchanged between point of sale device 108 and
transponder 102 and a transaction is set up, the point of sale
device 108 may communicate with transaction server 116 to validate
a transaction amount or other information against account
information stored in the transaction server 116.
[0023] While this implementation involves additional hardware and
communications link 114, if transaction server 116 is co-located
with the point of sale device 108, such as in a restaurant or
retail outlet, communication delays may be minimal. Furthermore if
the transaction server 116 is dedicated to processing transactions
only at the site of point of sale device 108 or closely grouped
facilities, processing burdens may be comparatively modest In
another embodiment of the invention, transaction server 116 may
communicate with remote credit file databases or other information
resources before authorizing or completing a transaction initiated
over RF link 104 at receiver 106, when circumstances may permit
some execution delay to be acceptable. Alternatively, in another
embodiment of the invention the point of sale device 108 may
perform a preliminary authorization for transactions presented at
the receiver 106, to collect and temporarily store transactions,
for instance over 2 or 3 hour periods, for batch processing
remotely via transaction server 116. Since the majority of
transactions typically reconcile without difficulty, this
implementation permits more-immediate completion while still
checking on account validations at frequent intervals.
[0024] Overall transaction processing is illustrated in the
flowchart of FIG. 4. In step 202, processing begins. In step 204,
the receiver 106 is presented with transponder 102 within range of
electromagnetic coupling, such as inductive coupling. In step 206,
transponder 102 is activated, for instance by inductive
energization of its circuitry. In step 208 transponder 102 may
communicate transponder ED 110, which the receiver 106 acknowledges
with an acknowledge signal over RF link 104 in step 210.
[0025] In step 212, transaction information such as purchase amount
is entered at point of sale device 108, for instance by a check out
clerk or other attendant. In step 214, transaction table 112 or
other account information may be interrogated to determine whether
account balances or other account parameters permit the pending
transaction at the point of sale device 108. If the transaction is
not validated, in step 216 a "cash required" or other message is
signaled at point of sale device 108, and processing proceeds to
step 224 whole processing ends.
[0026] If the account to be applied to the pending transaction is
validated at step 214, in step 218, the point of sale device 108
and receiver 106 communicate with transponder 102 to indicate
transaction acceptance, and modify information within account table
112 if appropriate. In step 220, an end of transaction signal is
sent to transponder 102 and in step 222, transponder 102 decouples
from the receiver 106. In step 224, processing ends.
[0027] The foregoing description of the system and method for
transponder-activated transactions is illustrative, and variations
in configuration and implementation will occur to persons skilled
in the art. For instance, while transponder 102 has been described
as electromagnetically coupling with the receiver 106, or other
types of detection and coupling could be used. For instance, an
infrared device, a biometrically enabled or other device may be
presented to corresponding detecting apparatus at the point of
sale. Similarly, transponder 102 may contain or store other types
or forms of information other than transponder D 110 and account
table 112. The scope of the invention is accordingly intended to be
limited only by the following claims.
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