U.S. patent application number 11/734216 was filed with the patent office on 2007-11-29 for payment system and methods.
Invention is credited to Danilo Portal, JOSEPH R. RANDAZZA.
Application Number | 20070272739 11/734216 |
Document ID | / |
Family ID | 46327700 |
Filed Date | 2007-11-29 |
United States Patent
Application |
20070272739 |
Kind Code |
A1 |
RANDAZZA; JOSEPH R. ; et
al. |
November 29, 2007 |
PAYMENT SYSTEM AND METHODS
Abstract
Disclosed are payment system and methods.
Inventors: |
RANDAZZA; JOSEPH R.; (Boca
Raton, FL) ; Portal; Danilo; (Miramar, FL) |
Correspondence
Address: |
JEROME D. JACKSON (JACKSON PATENT LAW OFFICE)
211 N. UNION STREET, SUITE 100
ALEXANDRIA
VA
22314
US
|
Family ID: |
46327700 |
Appl. No.: |
11/734216 |
Filed: |
April 11, 2007 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11539636 |
Oct 8, 2006 |
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11734216 |
Apr 11, 2007 |
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60724806 |
Oct 11, 2005 |
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60786830 |
Mar 29, 2006 |
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60791217 |
Apr 12, 2006 |
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Current U.S.
Class: |
235/380 |
Current CPC
Class: |
G06Q 20/023 20130101;
G06Q 20/20 20130101; G06Q 40/12 20131203; G06Q 20/4014 20130101;
G06Q 20/02 20130101; G06Q 20/40 20130101 |
Class at
Publication: |
235/380 |
International
Class: |
G06K 5/00 20060101
G06K005/00 |
Claims
1. A method for a system having a plurality of persons; a plurality
of cards issued under authority of an entity; a retail site
configured with a first signal, the first signal being common to
the plurality of cards; the system further including a second
signal on a first card in the plurality of cards; and a second
system storing an association between the second signal and account
information, the entity and an owner of the second system being
non-affiliated, the method comprising: the steps, performed at the
retail site, of: receiving the first and second signals from the
first card; responsive to the first signal, making a routing
decision; responsive to the routing decision, conditionally sending
the second signal into a first hardware path, to cause the second
system to perform the steps of determining whether the first card
can effect payment, responsive to the determining step,
conditionally sending a message to cause an institution to send an
ACH entry to Federal Reserve ACH system, to pass the entry to a
bank, where an account is issued a debit, to cause a transfer of
funds to the owner of the retail site, and making an entry in an
accounting system, to effectively increment an amount owed by the
owner of the retail site to the owner of the second system, wherein
the method further includes the step, performed at the retail site,
of: conditionally effecting a transaction with a holder of the
first card, depending on a signal received from the second
system.
2. The method of claim 1 wherein the signal received from the
second system includes an indication whether the card is authorized
to effect payment.
3. The method of claim 1 wherein the second system is in the United
States of America.
4. The method of claim 1 wherein the account is a demand
account.
5. The method of claim 1 wherein the system further includes a
plurality of vehicles, the entity is a government, and each card
evidences a license for a person to operate a vehicle.
6. The method of claim 5 wherein the entity is a first state
government, and the second system is in the territory of a second
state government.
7. The method of claim 1 wherein the information corresponding to
the account includes an account number previously presented to a
consumer.
8. The method of claim 1 wherein the information corresponding to
the account includes an account number previously presented to a
consumer user on a paper statement generated by the financial
institution managing the account.
9. The method of claim 8 wherein the financial institution is a
bank or credit union.
10. The method of claim 1 wherein receiving the second signal from
the first card includes receiving the second signal via a point of
sale terminal, and the method further includes receiving a third
signal from the holder of the first card; and sending the third
signal out of the point of sale terminal, without applying an
encryption key to the third signal.
11. The method of claim 10 wherein the third signal includes a PIN
typed by the holder of the first card.
12. The method of claim 1 further including receiving a number from
the holder of the first card, wherein sending the second signal
includes sending the second signal to cause a debit to a selected
one of multiple accounts associated with the holder, the account
being selected by the number.
13. The method of claim 12 wherein the card is a driver
license.
14. The method of claim 12 wherein the number is a personal
identification number selected by the user, the number having less
digits than the account number.
15. The method of claim 12 wherein the number is a personal
identification number selected by the user, the number having a
least 4 digits, and less digits the account number.
16. A method for a system having a plurality of persons; a
plurality of vehicles; a plurality of cards issued under authority
of government, each card evidencing a license for a person to
operate a vehicle; a retail site configured with a first signal,
the first signal including a license card IIN number, the first
signal being common to the plurality of cards; the system further
including a second signal on a first card in the plurality of
cards, the second signal including a personal ID number; and a
server storing an association between the second signal and account
information, the method comprising: the steps, performed at the
retail site, of: receiving the first and second signals from the
first card; responsive to the first signal, making a routing
decision; responsive to the routing decision, conditionally sending
the second signal into a first hardware path, to cause the server
to perform the steps of determining whether the first card can
effect payment, responsive to the determining step, conditionally
sending a message to cause an institution to send an ACH entry to
Federal Reserve ACH system, to pass the entry to a bank, where an
account is issued a debit, to cause a transfer of funds to the
owner of the retail site, and making an entry in an accounting
system, to effectively increment an amount owed by the owner of the
retail site to the owner of the second system, wherein the method
further includes the step, performed at the retail site, of:
conditionally effecting a transaction with a holder of the first
card, depending on a signal received from the server.
17. The method of claim 16 wherein the signal received from the
server includes an indication whether the card is authorized to
effect payment.
18. The method of claim 16 wherein the server is in the United
States of America.
19. The method of claim 16 wherein the account is a demand
account.
20. The method of claim 16 wherein the government is a first state
government, and the server is in the territory of a second state
government.
21. The method of claim 16 wherein the information corresponding to
the account includes an account number previously presented to a
consumer.
22. The method of claim 16 wherein the information corresponding to
the account includes an account number previously presented to a
consumer user on a paper statement generated by the financial
institution managing the account.
23. The method of claim 22 wherein the financial institution is a
bank or credit union.
24. The method of claim 16 wherein receiving the second signal from
the first card includes receiving the second signal via a point of
sale terminal, and the method further includes receiving a third
signal from the holder of the first card; and sending the third
signal out of the point of sale terminal, without applying an
encryption key to the third signal.
25. The method of claim 24 wherein the third signal includes a PIN
typed by the holder of the first card.
26. The method of claim 16 further including receiving a number
from the holder of the first card, wherein sending the second
signal includes sending the second signal to cause a debit to a
selected one of multiple accounts associated with the holder, the
account being selected by the number.
27. The method of claim 26 wherein the number is a personal
identification number selected by the user, the number having less
digits than the account number.
28. The method of claim 26 wherein the number is a personal
identification number selected by the user, the number having a
least 4 digits, and less digits the account number.
29. A transaction system for operating with a system having a
plurality of persons; a plurality of cards issued under authority
of an entity; a retail site configured with a first signal, the
first signal being common to the plurality of cards; the system
further including a second signal on a first card in the plurality
of cards; and a second system storing an association between the
second signal and account information, the entity and an owner of
the second system being non-affiliated, the transaction system
comprising: means for receiving the first and second signals from
the first card; means, responsive to the first signal, for making a
routing decision; means, responsive to the routing decision, for
conditionally sending the second signal into a first hardware path,
to cause the second system to perform the steps of determining
whether the first card can effect payment, responsive to the
determining step, conditionally sending a message to cause an
institution to send an ACH entry to Federal Reserve ACH system, to
pass the entry to a bank, where an account is issued a debit, to
cause a transfer of funds to the owner of the retail site, and
making an entry in an accounting system, to effectively increment
an amount owed by the owner of the retail site to the owner of the
second system; and means for conditionally effecting a transaction
with a holder of the first card, depending on a signal received
from the second system.
Description
[0001] This application claims the benefit of U.S. Application Ser.
No. 60/791,217 of JOSEPH R. RANDAZZA AND DANILO PORTAL Apr. 12,
2006 for PAYMENT SYSTEMS AND METHODS, the contents of which are
herein incorporated by reference.
[0002] This application is a continuation-in-part of U.S.
application Ser. No. 11/539,636 of JOSEPH R. RANDAZZA AND DANILO
PORTAL filed Oct. 8, 2006 for PAYMENT SYSTEMS AND METHODS, the
contents of which are herein incorporated by reference.
BACKGROUND OF THE INVENTION
Field of the Invention
[0003] This invention relates generally to payment systems and
methods and, more particularly, to payment systems and methods
deployed in a retail environment.
SUMMARY OF THE INVENTION
[0004] According to an aspect of the present invention, there is a
method for a system having a plurality of persons; a plurality of
cards issued under authority of an entity; a retail site configured
with a first signal, the first signal being common to the plurality
of cards; the system further including a second signal on a first
card in the plurality of cards; and a second system storing an
association between the second signal and account information, the
entity and an owner of the second system being non-affiliated. The
method comprises the steps, performed at the retail site, of
receiving the first and second signals from the first card;
responsive to the first signal, making a routing decision;
responsive to the routing decision, conditionally sending the
second signal into a first hardware path, to cause the second
system to perform the steps of determining whether the first card
can effect payment, responsive to the determining step,
conditionally sending a message to cause an institution to send an
ACH entry to Federal Reserve ACH system, to pass the entry to a
bank, where an account is issued a debit, to cause a transfer of
funds to the owner of the retail site, and making an entry in an
accounting system, to effectively increment an amount owed by the
owner of the retail site to the owner of the second system, wherein
the method further includes the step, performed at the retail site,
of conditionally effecting a transaction with a holder of the first
card, depending on a signal received from the second system.
[0005] According to another aspect of the present invention, there
is a method for a system having a plurality of persons; a plurality
of vehicles; a plurality of cards issued under authority of
government, each card evidencing a license for a person to operate
a vehicle; a retail site configured with a first signal, the first
signal including a license card IIN number, the first signal being
common to the plurality of cards; the system further including a
second signal on a first card in the plurality of cards, the second
signal including a personal ID number; and a server storing an
association between the second signal and account information. The
method comprises the steps, performed at the retail site, of
receiving the first and second signals from the first card;
responsive to the first signal, making a routing decision;
responsive to the routing decision, conditionally sending the
second signal into a first hardware path, to cause the server to
perform the steps of determining whether the first card can effect
payment, responsive to the determining step, conditionally sending
a message to cause an institution to send an ACH entry to Federal
Reserve ACH system, to pass the entry to a bank, where an account
is issued a debit, to cause a transfer of funds to the owner of the
retail site, and making an entry in an accounting system, to
effectively increment an amount owed by the owner of the retail
site to the owner of the second system, wherein the method further
includes the step, performed at the retail site, of conditionally
effecting a transaction with a holder of the first card, depending
on a signal received from the server.
[0006] According to yet another aspect of the present invention, A
transaction system for operating with a system having a plurality
of persons; a plurality of cards issued under authority of an
entity; a retail site configured with a first signal, the first
signal being common to the plurality of cards; the system further
including a second signal on a first card in the plurality of
cards; and a second system storing an association between the
second signal and account information, the entity and an owner of
the second system being non-affiliated, the transaction system
comprising means for receiving the first and second signals from
the first card; means, responsive to the first signal, for making a
routing decision; means, responsive to the routing decision, for
conditionally sending the second signal into a first hardware path,
to cause the second system to perform the steps of determining
whether the first card can effect payment, responsive to the
determining step, conditionally sending a message to cause an
institution to send an ACH entry to Federal Reserve ACH system, to
pass the entry to a bank, where an account is issued a debit, to
cause a transfer of funds to the owner of the retail site, and
making an entry in an accounting system, to effectively increment
an amount owed by the owner of the retail site to the owner of the
second system; and means for conditionally effecting a transaction
with a holder of the first card, depending on a signal received
from the second system.
BRIEF DESCRIPTION OF THE DRAWINGS
[0007] References are made to the following text taken in
connection with the accompanying drawings, in which:
[0008] FIG. 1 shows a retail system according to a first exemplary
embodiment of the present invention.
[0009] FIGS. 2A and 2B show another aspect of the first exemplary
system.
[0010] FIGS. 3A and 3B show a driver's license card in the first
exemplary system.
[0011] FIGS. 4A, 4B, and 4C are a flowchart of a process performed
in the first exemplary system.
[0012] FIG. 5 shows another aspect of the exemplary system.
[0013] FIGS. 6A, 6B, and 6C show a retail grocery store in the
first exemplary system.
[0014] FIG. 7 is a diagram showing transaction flows in the first
exemplary system.
[0015] FIG. 8 shows another retail site in the first exemplary
system.
[0016] FIG. 9 is a representation of a table in a database in the
first exemplary system.
[0017] FIG. 10 is a diagram emphasizing certain features of the
circuitry shown in FIG. 7.
[0018] FIG. 11 shows a system according to a second exemplary
embodiment of the present invention.
[0019] FIG. 12 shows another data structure in an exemplary
system.
[0020] FIG. 13 shows another data structure in an exemplary
system.
[0021] FIG. 14 shows another data structure in an exemplary
system.
[0022] FIG. 15 shows a system according to a third exemplary
embodiment of the present invention.
[0023] FIG. 16 shows another data structure in an exemplary
system.
[0024] FIG. 17 shows a system according to a fourth exemplary
embodiment of the present invention.
[0025] FIGS. 18A and 18B show a driver's license card in the fourth
exemplary system.
[0026] FIG. 19 is a diagram emphasizing certain features of
circuitry in an exemplary system.
[0027] The accompanying drawings which are incorporated in and
which constitute a part of this specification, illustrate
embodiments of the invention and, together with the description,
explain the principles of the invention, and additional advantages
thereof. Certain drawings are not necessarily to scale, and certain
features may be shown larger than relative actual size to
facilitate a more clear description of those features. Throughout
the drawings, corresponding elements are labeled with corresponding
reference numbers.
DETAILED DESCRIPTION OF EXEMPLARY EMBODIMENTS
[0028] First Exemplary System
[0029] FIG. 1 shows exemplary system 1 according to a first
exemplary embodiment of the present invention. System 1 includes
multiple persons, such as person 290 and person 470. System 1 also
includes a plurality of vehicles, such as automobile 103 owned by
person 290 and automobile 104 owned by person 470. Person 290
operates automobile 103 to travel from her home 106 to various
locations such as her place of employment, and store 55 in retailer
6. Person 290 carries a driver's license card 295 evidencing a
license to operate a vehicle such as automobile 103. Person 470
operates automobile 104 to travel from her home to various
locations such as store 55 in retailer 6. Person 470 carries a
driver's license card 215 evidencing a license to operate a vehicle
such as automobile 104.
[0030] These licenses and license cards 215 and 295 license were
issued under the authority of a government agency, such as the
Florida Department of Motor Vehicles (DMV) by Motor Vehicle
Department 108, which is a part of the Florida State Government.
Occasionally, persons 290 and 470 must display their driver's
license cards to state officials, such as policeman 110 to prove
they are authorized to operate an automobile.
[0031] FIGS. 2A and 2B emphasize other aspects of System 1. System
1 includes system 5, communicating with retailer 6, retailer 10,
retailer 11, and other retailers, via circuitry at retail sites, as
described in more detail below. System 5, located in Reston, Va.,
receives signals from the retailers, to validate customer
authorization at the time of a retail transaction, and to debit a
customer account later. A signal from a retailer to system 5 is
represented by a directed line going from the retailer to system 5;
and a signal from system 5 to a retailer is represented by a
directed line going from system 5 to the retailer.
[0032] In response to a signal from retailer 6, for example, system
5 conditionally generates a transaction authorization signal.
[0033] In response to the transaction authorization signal from
system 5, retailer 6 allows a customer transaction to proceed.
[0034] System 5 is owned and operated by a private entity that is
under the general control of neither the Florida State Government
nor the Virginia State Government. Of course the private entity
that owns and controls system 5 may have certain statutory,
regulatory, contractual, or common law obligations to these state
governments, as any persons resident in a state would have.
[0035] The owner of system 5 and the owner of retailer 11 are
non-affiliated, meaning that they are not affiliates with respect
to each other. Is this patent application, concerns are affiliates
of each other when one concern controls or has the power to control
the other, or a third party or parties controls or has the power to
control both. Power to control is described in Section 121 of the
U.S. regulations of the Small Business Administration.
[0036] The owner of system 5 and the owner of retailer 6 are
non-affiliated.
[0037] The owner of system 5 and the owner of retailer 10 are
non-affiliated.
[0038] FIG. 3A shows a front, plan view of card 215 carried by
person 470, who is a customer in system 1, and FIG. 3B shows a
back, plan view of card 215. In this example, card 215 is a
state-issued driver's license including a photograph 217 of person
470, and magnetic stripe 219 storing the ID number and other
information on the reverse side. Track 2 of stripe 219 also stores
the number 636010, indicating the jurisdiction of Florida, in
accordance with International Standard ISO 7812.
[0039] FIGS. 4A, 4B, and 4C show a process performed by circuitry
in system 1. Steps 5, 10, and 15 are performed for multiple
persons, in a store of a retailer, such as retailer 10. In order to
enroll in the program, the customer enters a card number and bank
account number at a web site. Alternately, the customer is
processed at the retailer customer service area, where the magnetic
stripe 219 of card 215 is scanned (step 5), a personal
identification number (PIN) entry is received from the consumer
into the terminal (step 10), and a personal check is scanned (step
15). The collection of the card identification number, PIN, the
bank routing and account number read from the check, then becomes
part of transmitted packet to system 5, in which they are stored in
association in a database (step 20). The method and protocol for
this transmission is uses ISO 8583 or Web-based URLs via a Secure
Socket Layer (SSL) link.
[0040] FIGS. 6A, 6B, and 6C show a context in which subsequent
steps of the flow chart of FIGS. 4A, 4B, and 4C are performed.
FIGS. 6A, 6B, and 6C are each a partial view of store 55 in
retailer 10. Store 55 has a plurality of product areas, each
corresponding to a respective product, and checkout stations 900,
901, and 902. Each checkout station includes a bar code reader that
detects an optical (electromagnetic) signal reflected from a bar
code, and a magnetic stripe reader that scans a magnetic card.
Checkout station 900 includes payment terminal 920 having a card
interface slot 914, checkout station 901 includes payment terminal
921 having a card interface slot 914, and checkout station 902
includes payment terminal 922 having a card interface slot 914.
Each payment terminal includes a button 919 labeled "CREDIT" and a
button 949 labeled "DEBIT". Each of these buttons is one kind of
user interface object.
[0041] Upon completion of shopping, each customer brings selected
products from the shelves to checkout station 900, 901, or 902.
[0042] Each customer presents her customer card. In this example,
customer 490 presents credit card 495, which is associated with an
installment payment account of customer 490. Customer 480 presents
debit card 485, which is associated with a demand bank account of
customer 480. Customer 470 presents system-5-registered driver's
license card 215.
[0043] Customer 490 completes the purchase of her selected products
493 by transferring products 493 from her cart 492 to station 902,
and by presenting card 495. A checkout clerk (not shown) scans each
selected product past bar code reader 910, or enters the product
selection information manually via keyboard 918. Checkout station
902 determines a total amount due and prints the total amount due
on display 917. Customer 490 activates credit button 919. In
response to the activation of credit button 919, circuitry in
retailer 10 transmits the account number of card 495 to a
credit/debit card authorization provider, such as credit card
system 4 shown in FIG. 6, via routing system 120. Credit card
system 4 could be operated by the VISA corporation.
[0044] Routing system 120 has been configured, in accordance with a
network address, or network position, of systems 4 and 7, so that
certain signals will be sent to systems 4 and 7, as described in
more detail below. Services from payment processors--such as First
Data Corporation, RBS Lynk, or Fifth Third--may implement routing
system 120.
[0045] In this patent application, the word circuitry encompasses
dedicated hardware, and/or programmable hardware, such as a CPU or
reconfigurable logic array, in combination with programming data,
such as sequentially fetched CPU instructions or programming data
for a reconfigurable array.
[0046] Customer 480 completes the purchase of her selected products
483 by transferring products 483 from her cart 482 to station 902,
and by presenting card 485. The checkout clerk scans selected
products past bar code reader 910. Checkout station 902 determines
a total amount due and prints the total amount due on display 917.
Customer 480 activates debit button 949. In response to the
activation of debit button 949, circuitry in payment terminal 922
prompts customer 480 to enter a PIN into a keypad on terminal 922.
Terminal 922 then applies an encryption key to the entered PIN, to
generate an encrypted PIN. Circuitry in retailer 10 then transmits
the encrypted PIN and the account number of card 485 to a
credit/debit card authorization provider, such as Honor, Star, or
Interlink shown in FIG. 6, via routing system 120.
[0047] Customer 470 completes the purchase of her selected products
473 by transferring products 473 from her cart 472 to station 902,
and by presenting driver's license card 215. The checkout clerk
scans selected products past bar code reader 910. Checkout station
902 determines a total amount due and prints the total amount due
on display 917. Station 902 reads the ID information of person 470
from card 215, and reads the Issuer Identification Number, 636010,
indicating the State of Florida, from driver's license card 215.
(step 25) (FIG. 3B). Customer 470 or the clerk activates credit
button 919. In response to the activation of credit button 919,
circuitry 151 (FIG. 7) in retailer 10 sends a signal to terminal
922, causing terminal 922 to prompt customer 470 to enter a PIN
into a keypad on terminal 922. Terminal 922 then sends the entered
PIN to circuitry 151, without applying the encryption key to the
entered PIN. Circuitry 151 then applies an encryption key to the
PIN received from terminal 922, to generate an encrypted PIN.
Circuitry in retailer 10 then transmits the encrypted PIN and the
license identification of driver's license card 215 to system 5,
via circuitry 151. At this time the circuitry also transmits
retailer ID, store ID date, time, lane ID, cashier ID, transaction
amount.
[0048] Alternatively, station 902 may be configured so that
customer 470 need not activate the credit button 919. In this
alternative, station 902 detects the IIN of the card and
conditionality applies an encryption key to the entered PIN
depending on the detected IIN. In other words, in this example,
station 902 word detects the IIN of card 215 and sends the entered
PIN without applying the encryption key to the entered PIN.
[0049] Circuitry in system 5 uses the ID number of the card,
transmitted by the server, to access the associated PIN stored in
the database. (step 35). System 5 thus compares the PIN,
transmitted by the store server, to the PIN read from the database.
(step 40). Depending upon the result of step 40, system 5
conditionally responds to the store server with a card-authorized
signal, causing station 902 to allow customer 470 to carry away
products 473. (step 45).
[0050] Otherwise system 5 sends a card-not-authorized signal to the
store server.
[0051] Step 40 may also include real-time communication to an
external database to validate the card against a negative check
database.
[0052] It is presently preferred that system 5 validate incoming
transactions and respond back to the store within several
seconds.
[0053] FIG. 8 shows retailer 6 in system 1 in more detail. Retailer
6 is a gas station. The gas station includes gas pump point of
scale (POS) terminal 132 with card interface 133, gas pump POS
terminal 134 with card interface 135, telecommunications circuitry,
and a network cable coupling POS terminal 132, POS terminal 134 and
telecommunications circuitry together.
[0054] Customer 470 buys gas by presenting card 215, either at the
payment terminal 132 or elsewhere in the gas station. The gas
station reads the ID information from card 215.
[0055] Circuitry in system 5 uses the ID number of the card,
transmitted by circuitry in retailer 6, to access the associated
PIN stored in the database. System 5 conditionally responds to the
server in retailer 6 with a card-authorized signal, or a
card-not-authorized signal. If the server receives a
card-authorized signal, the transaction proceeds and the server
then transmits a transaction amount to system 5.
[0056] Automated Clearing House (ACH) Settlement transmission
occurs daily in batch fashion. (step 50). More specifically, system
5 compiles a file at end of day for submission to the ACH services.
The required fields that this file contain are: date, time,
transaction type, retailer ID, store ID, bank routing #, bank
account #, amount of transaction. The specifics and file format is
further defined with the ACH processor.
[0057] Status from ACH is collected and logged for review.
[0058] FIG. 7 shows another aspect of the first exemplary system,
including circuitry in store 55. Point of Sale (POS) system 142
receives data read from cards presented by customers in store 55.
POS system 142 includes data structure 145, accessed by programs in
system 142. Data structure 145 allows system 142 to select the path
of a card data received from a checkout, as a function of an issuer
identification number (IIN) in the card data. POS System 142 may be
a Verifone Ruby system, for example, and data structure 145 maps
ranges of IIN numbers to a port.
[0059] For example, when system 142 receives card data containing
an IIN in the range 451252 to 451257, or 549035 to 549035, system
142 accesses IIN ranges 147, to send a transaction request to
routing system 120, via port 143 on system 142.
[0060] When system 142 receives card data containing an IIN in the
range 563200 to 563207, 636010 to 636010, or 532720 to 532727,
system 142 accesses IIN ranges 149, to send a transaction request
to circuitry 151, via port 144 on system 142.
[0061] Routing system 120 includes a data structure 112, accessed
by programs in routing system 120. Data structure 112 allows
routing system 120 to select the path of a transaction request
packet received from a retailer, as a function of a routing field
in the packet. The routing field may contain an issuer
identification number (IIN). For example, when routing system 120
receives a transaction request packet containing the number 451252
in the routing field, routing system 120 accesses entry 114, to
send the packet to credit card system 4, allowing system 4 to
authorize a credit card transaction. When routing system 120
receives a transaction request packet containing the number 549035
in the routing field, routing system 120 accesses entry 116, to
send the packet to debit card system 7, allowing system 7 to
authorize a debit card transaction.
[0062] When circuitry 151 receives a transaction request packet on
port 153 of circuitry of 151, circuitry 151 sends a corresponding
packet out on port 155 of circuitry 151 if the IIN is 636010, or
out on port 157 otherwise.
[0063] FIG. 10 shows other aspects of circuitry 151 in more detail.
Circuitry 151 receives transaction messages, each including an IIN,
from POS 142. Circuitry 151 includes data structure 165, accessed
by programs in circuitry 151. Data structure 165 allows circuitry
151 to select the path of a transaction message, as a function of
an issuer identification number (IIN) in the message.
[0064] For example, when circuitry 151 receives a message
containing an IIN of 636010, circuitry 151 detects this fact by
accessing data structure 165, to send the message to system 5 via
port 155. On the other hand, when circuitry receives a message
containing an IIN that is not represented in data structure 165,
circuitry 151 sends the message out on port 157, to system 163 via
telecommunications circuitry 161.
[0065] Alternatively, these switching decisions could be made
outside of the store, but still within the confines of the
retailer, as described in U.S. Application Ser. No. 60/724,806 of
JOSEPH R. RANDAZZA AND DANILO PORTAL filed Oct. 11, 2005 for
PAYMENT SYSTEMS AND METHODS, the contents of which are herein
incorporated by reference.
[0066] FIG. 9 is a representation of a table 7 in a disk-resident
database in system 5. Each row in table 7 is an association between
a card ID and other data such as an account number associated with
the card ID, and a PIN associated with the account.
[0067] The application will have user interface to
activate/inactivate/delete and reissue a card. Transaction logging
contains detail information for each payment transaction. For
example, the detail includes time stamp: store ID: lane ID: cashier
ID: card #: payment amount: swiped vs. bar-coded.
[0068] In summary, a point-of-sale payment transaction is effected
via a State issued motor vehicle driver's license card and a
personal identification number (PIN) as a mechanism of payment for
a retail store transaction. A process by which a State issued motor
vehicle driver's license is effected to identified a consumer for
initiating a payment at the Point of Sale, without the use of any
other form of payment.
[0069] The POS allows the driver's license to be used as a form of
payment to debit a consumer checking account or savings account as
a electronic fund transfer using the Federal Reserve Automatic
Clearing House (ACH) for settlement.
[0070] The system utilizes the driver's license card; a PIN for
authentication; POS/payment terminal equipment; a communications
network to link to retailers POS system to a ACH host processor; a
data base with registered consumers banking information; the ACH
system for settlement. The system can be used at any retail
facility that installs the system. These include Supermarkets,
Convenience stores, gas stations, General Merchants or Restaurants
etc.
[0071] FIG. 5 is a diagram emphasizing other aspects of the
exemplary system.
[0072] ODFI (Originating Depository Financial Institution) 174
originates a PPD (Prearranged Payment and Deposits) ACH entry at
the request of system 5. ODFI 174 sends the PPD entry to the
Federal Reserve ACH system 175, which passes the entry to bank 178,
which acts as a Receiving Depository Financial Institution (RDFI),
where account 477 is issued debit, provided there are sufficient
funds. Thus ODFI 174 effects an Electronic Funds Transfer
(EFT).
[0073] When system 5 settles a transaction by causing the transfer
of funds from account 477 of consumer 470 to account 61 of retailer
6, system 5 makes an entry in accounting system 170, to effectively
increment an amount 173 owed by the retailer 6 to the owner of
system 5. This amount is a fee for settling the transaction.
[0074] Second Exemplary System
[0075] FIG. 11 shows exemplary system 1 including system 5'
according to a second exemplary embodiment of the present
invention. System 5' has all the circuitry for effecting the
functionality of system 5 in the first preferred embodiment. System
5' has circuitry to perform additional processing, including a
retailer-specific velocity check as described below. Velocity
thresholds may vary with the retailer or type of industry. For
example, the threshold for grocery stores may be different from the
threshold for gas stations.
[0076] FIG. 12 is a representation of a data structure 181 in
system 1'. Data structure 181 is in a disk-resident database in
system 5'. Each row in data structure 181 represents an association
between a card ID and a set of velocity thresholds. Each threshold
corresponds to a retailer set. A retailer set may contain one or
more retailers.
[0077] In this example, the first column after card ID is a
velocity threshold for a grocery retailer set, the second column is
a velocity threshold for a gas station retailer set, and the third
column is a velocity threshold for another set of retailers.
[0078] A retailer may be alone in its own set.
[0079] A retailer may belong to more than one set.
[0080] Thus, system 1 may have a threshold specific to a particular
retailer. The system may also have a threshold specific to a market
sector, encompassing multiple retailers. For examples, the system
may have a threshold that is compared to the sum of gasoline
purchases occurring in the Texaco.TM., Sonoco.TM., and other
gasoline stations.
[0081] FIG. 13 shows data structure 183 representing the sets
corresponding to the columns of FIG. 12. Each row in data structure
183 represents a retailer set. Each retailer set includes one or
more retailers.
[0082] FIG. 14 shows data structure 185 storing a transaction
history for each card ID. Each row of data structure 185 represents
a transaction.
[0083] For example, customer 470 buys gas by presenting card 215,
either at the payment terminal 132 or elsewhere in the gas station.
The gas station circuitry reads the ID information from card 215. A
server in retailer 6 recognizes the identification number of card
215 to be that of a system-5'-registered card and, in response to
this recognition, sends the identification number of card 215 to
system 5'.
[0084] Circuitry in system 5' uses the ID number of the card to
select a row in data structure 181. Circuitry in system 5' uses the
retailer ID to select a row in data structure 183, thereby
selecting a retailer set. The selected retailer set thereby
determines a column in data structure 181, thereby selecting a
velocity threshold for this consumer at this retail site (row 3,
column 3 of data structure 181).
[0085] System 5', for a given transaction date range in data
structure 185, adds the transaction amounts for the retailer IDs
that are present in the list of the row selected data structure
183. System 5' conditionally responds to the server in retailer 6
with a card-authorized signal, or a card-not-authorized signal,
depending upon whether the sum is above the velocity threshold for
this consumer at this retail site.
[0086] If the server receives a card-authorized signal, the
transaction proceeds and the server then transmits a transaction
amount to system 5'. Circuitry in system 5' then adds a row, to
data structure 185, to record the transaction that just occurred in
retailer 6.
[0087] Third Exemplary System
[0088] FIG. 15 shows exemplary system 5'' according to a third
exemplary embodiment of the present invention. System 5'' has all
the circuitry for effecting the functionality of system 5 in the
first preferred embodiment. System 5'' has circuitry to perform
additional processing, including selecting from multiple accounts
associated with a common card as described below.
[0089] FIG. 16 is a representation of a data structure 187 in
system 5''. Data structure 187 is a disk resident database in
system 5''. Each row in data structure 187 is an association
between a card ID and one or more account numbers associated with
the card ID, and a respective PIN number associated with each
account.
[0090] System 5'' has circuitry to select the account depending
upon the PIN entered at the POS.
[0091] In an enrollment process in the third exemplary system,
circuitry receives personal ID information from a driver license;
and receives information corresponding to multiple accounts, each
account corresponding to a respective first number (account number)
previously displayed to a user, on a bank statement for example.
System 5'' stores a link between the ID information and the account
information.
[0092] To effect the transaction at retailer 6, system 5'' receives
the ID information from the driver license, and receives a PIN from
the holder of the license. System 5' uses the received ID
information to debit a selected one of the accounts, the account
being selected by the second number (PIN).
[0093] The account number has more digits than the PIN. The account
number presented to the user on a paper statement, and the PIN is
selected by the user. The account number has a first number of
digits, and the PIN has a second number of digits less than the
first number of digits. The first number of digits is at least 12,
and the second number of digits is at least 4.
[0094] Fourth Exemplary System
[0095] FIG. 17 shows exemplary system 1''' including system 5'''
according to a fourth exemplary embodiment of the present
invention. System 5''' has all the circuitry for effecting the
functionality of system 5 in the first preferred embodiment. System
5 has circuitry to perform additional processing, as described
below.
[0096] FIGS. 18A and 18B show plan view of card 215' carried by a
customer in system 1''' in accordance with a fourth preferred
embodiment of the present invention. Card 215' has all the features
of card 215 described in connection with the first preferred
embodiment.
[0097] The radio frequency identification (RFID) tag contains the
consumer finger print pattern template, which is validated by a
fingerprint bio terminal at POS. The RFID tag also contains the
driver license Government ID number.
[0098] Thus the fourth preferred system allows for the capturing of
the consumer fingerprint, the consumer is provided with adhesive
RFID tag, that is placed on the back of the driver license card not
interfering with the magnetic stripe of the 2D barcode. The
consumer is then asked to provide a finger into the bio terminal
for registration of the fingerprint. The capture fingerprint
template is then transferred to the RFID tag along with the license
number by providing the Driver License and RFID tag in close
proximity to the RFID reader for storage.
[0099] Thus the biometric circuitry of the fourth preferred
embodiment validates the fingerprint against a recorded image on an
RFID tag affixed to the payment of loyalty card. There is no
special communication scheme to the host, since the validation is a
one to one relationship locally at the reader. Once validation is
done the bioscrypt terminal sends the stored card number and a
positive authorization flag. The system transmission is the same
except that the field PIN contains no data.
[0100] More Detailed Description of an Exemplary System
[0101] FIG. 19 shows other aspects of circuitry 151 in more detail.
Circuitry PIN encryption circuitry 194 in circuitry 151 applies an
encryption key 193 to the PIN, to generate an encrypted PIN 191'
that is inserted into transaction packet 195. Other portions of
transaction packet 195 are not encrypted by encryption circuitry
194. SSL (secure socket layer) encryption circuitry 196 encrypts
the entire transaction packet 195 and sends the encrypted packet
toward the Internet.
[0102] System 5 includes the encryption key 193' corresponding to
encryption key 193, allowing system 5 to generate an unencrypted
PIN. The encryption key 193' may be an asymmetric key corresponding
to encryption key 193, or may be a symmetric key.
[0103] Thus, a method conditionally applies a first encryption key
to a PIN, using first encryption circuitry (encryption software in
terminal 922), depending on a whether a card is in a class of
cards. The method conditionally applies a second encryption key to
the PIN, using second encryption circuitry (circuitry 151),
depending on whether the first encryption circuitry applied the
first encryption key.
[0104] To enroll in the program, the customer will be processed at
the retailer customer service area, where the card will be scanned,
a pin entry will be asked from the consumer into a pin pad and a
personal check will be imaged, the collection of the Loyalty
account #, PIN, the bank routing and account # read from the check,
will then become part of transmitted packet to the Payment Host
Database via a secure SSL connection.
[0105] The Check readers use for reading the check information will
be from Digital Check Corp, model TS-220 and MICRImage from Magtek.
The PC provided by the retailer requires a USB port to attach a
check reader and a keyboard inline barcode reader and pin pad. The
optional biometric reader will connect to the com port of the PC.
The application will register the fingerprint and save the template
onto an RFID tag of the consumer card.
[0106] To effect a POS transaction, the retailer POS system accepts
a new form of payment. A first option is a generic form accepted by
the host, and a second option is a bit map format using ISO
standard 8583.
[0107] According to the generic form, the transaction is switched
out to our host according to the specifications below using HTTPS
(Secure HyperText Transfer Protocol) The HTTPS standard supports
certificates. We use a SSL digital certificate from a third-party
certificate provider that ensures that our site is valid. This
certificate gets installed on our site, and verifies that our
server is a proper secure server.
[0108] To submit a transaction, a call is made to the following
URL: https://www.paymentcard.com.com/transsubmit.asp
[0109] It expects the following data: TABLE-US-00001 FieldName
Description Data type cardnumber Card Number 12-19 digits PIN PIN
Number, Bio 5 digits dollaramount Dollar Amount of Transaction
numeric merchantcode Merchant Code Alphanumeric Store # Store # 5
digits Date Date of transaction Date Time Time of transaction
hh:mm:ss POStrans# POS transaction # from POS 8 digits system Lane#
POS lane # 2 digits Cashier# cashier ID 4 digits ud1 User Defined
Field Alphanumeric ud2 User Defined Field Alphanumeric
[0110] For applications using biometrics, there is no PIN number.
The field must still exist, but it should contain no data in this
case.
[0111] Merchant Code will be assigned by system 5
[0112] ud1-ud2 are User Defined fields. The data in these fields
can be whatever the merchant wants. For example, if they wish to
have lane # (for a supermarket) associated with a transaction, that
could be in one of the User Defined fields.
EXAMPLES
[0113] For a transaction with a PIN #:
[0114] https://www
nccswitch.com/shtranssubmit.asp?cardnumber=12345&PIN=1234&d
ollaramount=27.4&merchantcode=ABCD&store#=10000&date=17072005&time=10:25:-
15&PO Strans#1740&ud1=&ud2=&
[0115] For a transaction without a PIN # (biometric verification of
identity)
[0116] https://www
nccswitch.com/shtranssubmit.asp?cardnumber=12345&PIN=&dollar
amount=27.4&merchantcode=ABCD&store#=10000&date=17072005&time=10:25:15&PO-
Stra ns#1740&ud1=&ud2=&
[0117] Response Codes
[0118] The following is a list of the possible response codes from
the server: TABLE-US-00002 Code Meaning AAAA Transaction Submitted
Successfully NNNNNNNN Auth# This is an 8 character authorization
number return from the host for a successful transaction. XMCN Card
Number Missing From Request XMDA Dollar Amount Missing From Request
XMMC Merchant Code Missing From Request XICN Invalid data in Card
Number field XIPI Invalid data in PIN Number field XIDA Invalid
data in Dollar Amount field XIMC Invalid data in Merchant Code
field XDAT Invalid Date XTIM Invalid Time XIU1 Invalid data in User
Defined Field 1 XIU2 Invalid data in User Defined Field 2 XPIN PIN
Number in Request Does Not Match Database XNEN Cardholder Not
Enrolled XHLD Cardholder Account On Hold XOVL Cardholder Account
Over Velocity Limits XBLK Cardholder Account Blocked XNMA No
matching Cardholder Account Information on File XDUP Duplicate
transaction - The transaction was accepted previously.
The length of the response is a multiple of 4 characters. It is
possible to get more than one X code returned from a specific
transaction. For example, if a transaction request contains invalid
data in the card number field, and also the merchant code is
missing, the response would be: XICNXMMC.
[0119] Further Description of Exemplary Enrollment Processes
[0120] The system allows the consumer to enroll into this system at
a merchant location operated by store personnel, a self-service
kiosk, or an interactive voice response telephone enrollment
system, for example.
[0121] Thus, although consumer 470 uses a driver's license as the
access mechanism for payment via system 5, other mechanisms may be
used, such as association membership cards, and retailer branded
cards.
[0122] The consumer enrollment process captures information
identifying the consumer, to form an electronic record that is
stored in a remote or local computer. Once the enrollment is
complete, the consumer can use the driver's license to pay for
goods and services.
[0123] System 1 provides a process mechanism (Enrollment) for
linking, the consumer driver's license card, based on national
standard, magnetic and 2d format to be scanned or swipe, capturing
the content of the magnetic data or the decoded barcode data, using
a parsing algorithm that presents the data necessary to build the
electronic record required by this system. This includes the
driver's license number, date of birth, age, address, state issued,
date driver's license is issued, date driver's license expires,
gender.
[0124] Once the driver's license card information is captured, the
consumer is asked to enter a PIN. The PIN is encrypted and made
part of the electronic record. Next the consumer is asked to
present a blank commercial bank check; this check is scanned by
check reader that will capture the image of the check, the bank
routing number and the bank account. Once the above process is
completed the electronic record is formed and stored in a local or
remote computer depending on the merchant network
infrastructure.
[0125] In accordance with an alternate enrollment process, the
consumer enters his driver's license number into the enrollment
website or a paper application. Background software, executing in
system 5, captures the license number and builds the encoded ID
number that is contained in track 2 of the driver's license. This
is the number seen by computer systems, which is different than
what is printed on the DL card.
[0126] For example, for a drivers license having face value ID of
"P634-160-55-448-0", the consumer will enter this number as they
see in the front of the card. The data on track 2 of the magnetic
strip is 6360101663416055448, wherein 636010 is the IIN number for
Florida, 16 represents the decimal value of the letter P in the
alphabet, and 63416055448 is the actual number in the font of the
card without the last 0. Thus, in this alternate enrollment
process, the system reads the enrolled ID and state jurisdiction,
such as Florida or Georgia, entered by the consumer, and then
builds the encoded ID to match the data in track 2 of the magnetic
strip.
[0127] Throughout this patent application, certain processing may
be depicted in serial, parallel, multiplexed, or other fashion, for
ease of description. Actual hardware and software realizations,
however, may be varied depending on desired optimizations apparent
to one of ordinary skill in the art.
[0128] Other systems and options for enrollment and transaction
processes may be found in U.S. Application Ser. No. 60/724,806 of
JOSEPH R. RANDAZZA AND DANILO PORTAL filed Oct. 11, 2005 for
PAYMENT SYSTEMS AND METHODS, the contents of which are herein
incorporated by reference; and U.S. Application Ser. No. 60/786,830
of JOSEPH R. RANDAZZA AND DANILO PORTAL Mar. 29, 2006 for PAYMENT
SYSTEMS AND METHODS, the contents of which are herein incorporated
by reference.
[0129] Benefits, other advantages, and solutions to problems have
been described above with regard to specific examples. The
benefits, advantages, solutions to problems, and any element(s)
that may cause any benefit, advantage, or solution to occur or
become more pronounced are not critical, required, or essential
feature or element of any of the claims.
[0130] Additional advantages and modifications will readily occur
to those skilled in the art. The invention in its broader aspects
is therefore not limited to the specific details, representative
apparatus, and illustrative examples shown and described.
Accordingly, departures may be made from such details without
departing from the spirit or the scope of Applicants' general
inventive concept. The invention is defined in the following
claims. In general, the words "first," "second," etc., employed in
the claims do not necessarily denote an order.
* * * * *
References