U.S. patent application number 13/538524 was filed with the patent office on 2013-01-03 for electronic transaction verification system.
This patent application is currently assigned to BIOMETRIC PAYMENT SOLUTIONS, LLP. Invention is credited to Joan Tibor.
Application Number | 20130002400 13/538524 |
Document ID | / |
Family ID | 36498481 |
Filed Date | 2013-01-03 |
United States Patent
Application |
20130002400 |
Kind Code |
A1 |
Tibor; Joan |
January 3, 2013 |
ELECTRONIC TRANSACTION VERIFICATION SYSTEM
Abstract
An electronic transaction verification system for use with
transaction tokens such as checks, credit cards, debit cards, and
smart cards that gathers and transmits information about the
transaction token and biometric data is described herein. The
electronic verification system includes a biometric data device for
recording and/or transmitting biometric data taken at the
transaction location. The electronic system is adapted to accept or
deny a transaction based on the comparison result generated by
comparing the biometric data and the information obtained from the
transaction token at the transaction location with information
previously stored in one or more databases.
Inventors: |
Tibor; Joan; (Waycross,
GA) |
Assignee: |
BIOMETRIC PAYMENT SOLUTIONS,
LLP
Newport Beach
CA
|
Family ID: |
36498481 |
Appl. No.: |
13/538524 |
Filed: |
June 29, 2012 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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12050772 |
Mar 18, 2008 |
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13538524 |
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10994934 |
Nov 22, 2004 |
7349557 |
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12050772 |
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10816037 |
Apr 1, 2004 |
7231068 |
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10994934 |
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09335649 |
Jun 18, 1999 |
6728397 |
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10816037 |
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60089959 |
Jun 19, 1998 |
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Current U.S.
Class: |
340/5.82 |
Current CPC
Class: |
H04L 63/0861 20130101;
G07F 7/122 20130101; G06K 9/00154 20130101; G06K 9/00006 20130101;
G07F 7/0813 20130101; G06Q 20/26 20130101; G06Q 20/4016 20130101;
G06Q 20/206 20130101; G06Q 20/10 20130101; G06Q 20/382 20130101;
G07F 7/08 20130101; G06Q 20/40 20130101; G07C 9/37 20200101; G06Q
20/042 20130101; G06Q 20/04 20130101; G06Q 20/40145 20130101 |
Class at
Publication: |
340/5.82 |
International
Class: |
G06F 7/04 20060101
G06F007/04 |
Claims
1. An electronic system for processing a transaction at a
transaction location, the electronic system comprising: a biometric
data device for obtaining biometric information from an individual
at a transaction location; one or more databases configured to
store biometric information and information for a transaction
instrument associated with the individual; and one or more
processors in communication with the one or more databases, the one
or more processors configured to : receive biometric information
obtained from the individual; receive information associated with a
transaction instrument issued to the individual; generate a first
comparison result by comparing the obtained biometric information
with a biometric information stored in the one or more databases;
generate a second comparison result by comparing the received
transaction instrument information with transaction instrument
information stored in the one or more databases and transmit a
decision to accept or deny the transaction based on the first and
second comparison results to the transaction location.
2. The system of claim 1, wherein the transaction instrument is a
check.
3. The system of claim 1, wherein the transaction location is a
point of sale.
4. The system of claim 1, wherein the one or more databases and the
one or more processors are located remote to the transaction
location.
5. The system of claim 1, wherein the one or more databases and the
one or more processors are located at the transaction location.
6. The system of claim 1, further comprising a transaction
instrument reading device configured to read and obtain the
transaction instrument information.
7. The system of claim 1, further comprising a signature scanning
device to obtain a signature from the individual.
8. The system of claim 1, further comprising an identity document
scanning device to obtain identity information of the individual
from an identity document.
9. The system of claim 1, wherein the transaction instrument is
associated with a financial account and the individual is the
account holder.
10. The system of claim 1, wherein the transaction instrument is
associated with a financial account and the individual is not the
account holder.
11. A method for verifying the identity of an individual involved
in a transaction, the method comprising: obtaining biometric data
of the individual; obtaining information associated with a
transaction instrument provided by the individual; processing the
obtained biometric data and the transaction instrument information
to verify that the individual is an authorized user of the
transaction instrument, wherein the processing includes: generating
a first comparison result by comparing the obtained biometric data
to biometric data previously stored in one or more information
stores; and generating a second comparison result by comparing the
obtained transaction instrument information to transaction
instrument information previously stored in the one or more
information stores.
12. The method of claim 11, wherein the transaction instrument is a
check.
13. The method of claim 11, wherein processing comprises
associating the biometric data with the transaction instrument
information.
14. The method of claim 11, wherein processing further comprises
accepting or denying the transaction based on the first and second
comparison result.
15. An electronic system for processing an instrument associated
with an account, the electronic system comprising: a biometric data
device for obtaining biometric information from an individual at a
transaction location; one or more databases configured to store
biometric information and information for the instrument; and one
or more processors in communication with the one or more databases,
the one or more processors configured to : receive biometric
information obtained from the individual; receive information
associated with the instrument; generate a first comparison result
by comparing the obtained biometric information with a biometric
information stored in the one or more databases; generate a second
comparison result by comparing the received instrument information
with the instrument information stored in the one or more databases
and transmit a decision to accept or deny the transaction based on
the first and second comparison results to the transaction
location.
16. The system of claim 15, wherein the instrument is a check.
17. The system of claim 15, wherein the individual is the account
holder.
18. The system of claim 15, wherein the second comparison result
verifies the condition of the account.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] This application is a continuation of U.S. patent
application Ser. No. 12/050,772 filed Mar. 18, 2008, which is a
continuation of U.S. patent application Ser. No. 10/994,934 filed
Nov. 22, 2004, now U.S. Pat. No. 7,349,557, which is a
continuation-in-part of U.S. patent application Ser. No.
10/816,037, filed Apr. 1, 2004, now U.S. Pat. No. 7,231,068, which
is a continuation-in-part of U.S. patent application Ser. No.
09/335,649, filed Jun. 18, 1999, now U.S. Pat. No. 6,728,397, which
in turn, claims the benefit of U.S. Provisional Application No.
60/089,959 filed Jun. 19, 1998. This application incorporates U.S.
Pat. No. 6,728,397 by reference into this description as fully as
if here represented in full. The entire disclosure U.S. patent
application Ser. No. 12/050,772 filed Mar. 18, 2008 is hereby
incorporated by reference herein and made a part of this
specification.
BACKGROUND OF THE INVENTION
[0002] 1. Field of the Invention
[0003] The present invention generally relates to credit and
identity verification systems. More particularly, the present
invention relates to credit approval and fraud protection at the
point-of-sale for a transaction wherein biometric information is
used to verify the identity of a person presenting a token for
payment as an authorized user for the associated account and that
the account is in order for the transaction. Transaction tokens can
include a negotiable instrument, a credit card, a smart card, a
loyalty card and a debit card. Information on the authorized
accounts can be stored in either a token-based or tokenless
electronic transaction system.
[0004] 2. Description of the Related Art
[0005] There are devices known in the art that gather biometric
data from persons for storage or for comparison with stored
biometric data for purposes of identity verification. An example of
storing biometric data for identity verification is U.S. Pat. No.
4,213,038 to Silverman, et al., for an access security system.
Silverman, et al., discloses storing a fingerprint on a card, in
either an actual print or "micropattern," and the card is read by a
control means. The fingerprint recordation is ancillary to the
preferred function of the card which is identification based upon
solely the microperforation of the card, which is not directly
related to the fingerprint.
[0006] Check funds verification systems are also known in the art
that allow merchants and others to verify that customers have funds
available in a specific checking account. U.S. Pat. No. 5,484,988
to Hills, et al., discloses a check-writing point-of-sale system
that provides for remote verification of funds availability. Hills,
et al., is particularly directed to the purchase of goods through
an electronic funds transfer.
[0007] U.S. Pat. No. 4,253,086 to Szwarcbier discloses a process
and apparatus for positive identification of customers that is
particularly disclosed as using a fingerprint on a credit card and
comparing the fingerprint of the customer to that on the card, and
selectively, with a master print on file. Szwarcbier also discloses
a printed fingerprint card.
[0008] There are "smart cards" known in the art which include
fingerprint identification means, such as U.S. Pat. No. 4,995,086
to Lilley, et al., U.S. Pat. No. 4,582,985 to Lofberg, U.S. Pat.
No. 4,993,068 to Piosenka, et al., and U.S. Pat. No. 5,180,901 to
Hiramatsu. All of these references disclose smart cards that have,
at least, a stored fingerprint in a local memory (such as magnetic
tape or integrated circuit) that interacts with a reading means at
the point-of-sale to assist in customer identification.
[0009] An example of an actual fingerprint sensor is U.S. Pat. No.
5,745,096 to Hsumi, et al., which is for a surface-shaped sensor
identification device. The Hsumi, et al. device is focused on the
specific element of sensing and recording the fingerprint, as
opposed to a complete identity verification system.
[0010] There are various types of biometric measurements in common
use today. The types of biometric measurements include fingerprint
verification, hand geometry, voice recognition, retinal scanning,
iris scanning, signature verification, and facial recognition. Each
biometric device and system has its own operating methodology. The
process for any given individual usually begins with an enrollment
process. The system captures one or more samples of the biometric.
The samples are stored in a "biometric template" (also referred to
herein as a biometric database), and are used for future comparison
during authentication. Once enrollment and storage are complete,
users authenticate themselves by matching the template against
current input ("live data"). Comparison of the live data and the
template results in a simple binary yes/no match.
[0011] Fingerprint verification is a well-known type of biometric
measurement. If properly implemented, fingerprints provide high
accuracy and at relatively low cost. Hand geometry measures
physical characteristics of the individual's hand and fingers and
is most widely used in physical access control systems. Voice
recognition remains difficult to implement. Despite recent advances
in voice recognition technology, background noise, microphone
quality, the common cold, and anxiety can alter the human voice
enough to make voice recognition difficult, if not impossible.
Voice recognition technologies include telephone authentication.
Extraction and pattern matching algorithms embedded on computer
chips are used to analyze voices. Retinal scanning is well
established and highly accurate, however, it requires that the
individual look directly into the retinal reader. Retinal scans
shoot a low-intensity beam of light into the eye and record the
pattern of veins in the eye. Iris scanning overcomes most of the
problems of retinal scanners and does not require direct contact
with the scanner, nor does it require the individual to remove
eyeglasses. The technology works by scanning the unique random
patterns of the iris. Unlike retinal vein patterns that can change
over time, the iris is unique and does not change during a person's
lifetime. Facial recognition systems measure characteristics such
as the distance between facial features (e.g., pupil to pupil) or
the dimensions of the features themselves (such as the width of the
mouth). Neural network technology or statistical correlations of
the facial geometric shapes are used with this kind of system.
Signature verification is a relatively accurate system and is
treated separately from the other forms of biometric systems
described herein.
[0012] With fraudulent check losses alone reaching ten billion
dollars annually, the banking industry is striving for ways to
reduce these losses. Many proposals have been presented over the
last five to ten years. One of the least sophisticated approaches
is placing the individual's fingerprint on a sticker and attaching
the sticker to the check being presented. Among the more
sophisticated approaches is the use of smart cards that have a chip
containing biometric information of the account holder. The
biometric information stored on the chip can be compared with the
biometric information of the person presenting the smart card at
the transaction location. However, these alternative methods of
reducing fraudulent activity are not meeting the needs of industry.
The use of fingerprint stickers are a deterrent for the least
sophisticated forger, but the process of identifying the
fingerprint on a sticker can take a long time in crime labs due to
their backlog and their obvious priority of processing fingerprints
obtained from crime scenes in which felonies involving violence
occurred. Smart cards with embedded biometric chips are used with
credit cards or debit cards, but still do not prevent the more
sophisticated identity thief. The more sophisticated identity thief
steals account information and then produces his own credit card
containing his own biometric information embedded in the chip. When
the identity thief presents his biometric information at the
transaction location, the verification is being made against an
already faulty biometric sample stored on the chip.
[0013] Tokenless point-of-sale payment processing systems have also
been developed recently. One such system is described in U.S. Pat.
No. 6,581,042 to Pare, et al. that uses biometrics obtained at the
point-of-sale for verifying the identity of an individual as an
authorized user of the tokenless payment system. Tokenless
processing systems are intended to speed up the process of
check-out at a transaction location by not requiring the person to
present a physical token and by verifying the identity of the
person presenting payment with the tokenless processing system. A
drawback of current tokenless systems is that they only verify
tokenless transactions. Tokenless systems do not verify the
individual's identity or cross compare with a token-based
transaction processing system when a transaction token is presented
for payment at the point-of-sale. Therefore, unless the tokenless
transaction system can be combined with verification of token
transactions presented at the point-of-sale the tokenless
transaction system does not prevent and is vulnerable to fraud. For
example, a person registers with the tokenless processing system by
providing account information and a biometric for identification
during the processing of purchases at the point-of-sale by the
tokenless processing system. The person registering with the
tokenless system believes that all purchases will be authenticated
by his biometric. However, this does not prevent a thief from
either stealing or fabricating the registered person's physical
token (e.g., check, credit card, etc.) and presenting it at a
location that uses the tokenless processing system. Unless the
physical token presented is checked against the tokenless
processing payment system to determine if the account being
accessed needs to be authenticated by a biometric, the physical
token could be accepted without verifying the identity of the
person presenting the token for payment.
SUMMARY OF THE INVENTION
[0014] The present invention, in its simplest form, combines the
use of valid biometric samples obtained from authentic
identifications (IDs) with biometric samples provided by a person
at a transaction location, thereby verifying that the biometric
information presented for a transaction is a valid biometric for a
particular person. In addition, the ID and the biometric sample can
also be checked against known invalid users. Although it is
possible for someone to counterfeit what is believed to be the
authentic ID, in such cases, the identity thief provides an actual
fingerprint that has been taken and placed on the token or on the
transaction slip. When the token is returned to the transaction
location as forged, counterfeit, stolen, etc., the fingerprint is
entered into the database of known invalid users, thus preventing
any further identity theft activity by this person on the
verification system. The present invention, in its most complex
form, adds additional safeguards, such as verifying the ID with
information from the state. This ensures that an ID has not been
altered, and is in fact an authentic state-issued ID (e.g.,
driver's license). Another such safeguard is verifying the
information at the processing center of the token with the original
information that a bank or token company obtained at the creation
of the bank or token account.
[0015] The present invention, in one exemplary embodiment thereof,
comprises a verification system for check/negotiable instruments or
other form of tokens, which has the ability to scan the information
from negotiable instruments such as the magnetic ink character
recognition (MICR) line, and gather biometric data such as
fingerprints. The system alternately scans driver's licenses or
other identification cards, and obtains and transmits a signature
of a customer, preferably all occurring at a transaction location
(e.g., point-of-sale) for purposes of identity and fund
verification. However, the electronic transaction can occur at
places other than a point-of-sale. For example, the electronic
transaction can occur over the Internet, as part of an
Internet-based transaction and include transmission of biometric
data or signatures for user verification. Therefore, in general,
transaction location refers to the place where the user or customer
enters his information, such as account data or biometric data into
the electronic transaction verification system. The verification
system preferably digitizes various indicia of the check, the
preferred indicia being the magnetic ink (MICR line) on the check,
tendered by the customer at the transaction location, and transmits
the data through a communications medium, to a processing system
including a negotiable instrument information database, whereby the
inputted data is compared with an existing database of information
to determine if the customer at the point-of-sale is in fact
authorized to use the account, and if the account is in
satisfactory condition for transaction approval. The communications
medium can be a broadband connection, a dial-up connection, a
direct communications link, a satellite link, or fiber optic cable
or any other communication link that allows communications between
a transaction location and a central or local processing system and
database.
[0016] In this exemplary embodiment, the verification system
alternatively includes a device and method for recording and/or
transmitting a biometric measurement of the customer at the
location of the transaction and, in the case of a fingerprint
biometric, printing the fingerprint on the negotiable instrument,
either in actual or digitally encoded form, such that the
fingerprint can be later checked against a biometric database of
existing fingerprints at such time as the instrument is processed
at a bank, which provides an added means of security in the event
that fraudulent activity has been discovered between the time of
receiving the token at the transaction location and the time it is
presented at the processing center. If the system includes a device
for scanning an information card that contains biometric data, such
as a proper fingerprint printed on a driver's license, and/or
signature, then the fingerprint and signature of the user can
alternatively be compared to the recorded data on the card, in
addition to or instead of, transmission of the various
databases.
[0017] In another embodiment of the verification system, a
negotiable instrument or other token is swiped and the fingerprint
is simultaneously taken and digitized whereby the combined data is
transmitted to a central (or local) processing system that includes
an account information database and a biometric database, and the
transmitted data is compared with identification data already on
file, and the central (or local) processing system determines if
the identification data of an authorized user on file matches with
the transmitted data from the user at the transaction location.
Local system, in the present context refers to a system that is in
physical proximity to the transaction location (e.g., same store).
The system then returns the results of the decision on approval to
the transaction location. A device at the transaction location
displays the decision data and/or prints out a hard copy indicating
whether the negotiable instrument/token was approved or denied.
[0018] As is well known in the banking industry, the MICR line on a
check includes the bank routing number, account number, check
number, check amount, and other information, that can be printed
near the bottom of the check in magnetic ink in accordance with
generally applicable industry standards. In operation, the central
(or local) processing system receives data from the transaction
location and then determines if the "ABA" magnetic number on the
MICR line of the check is a valid number, if the fingerprint data
is that of an account owner authorized to use that account, and/or
if the signature is that of the authorized account owner, whereby
any negative response to these decisions preferably causes return
of the data indicative of the negative response to the transaction
location. Upon affirmative indications in the decisions, the
central (or local) system retrieves the frequency of the account
accesses to determine if the current requested access is in excess
of a pre-determined limit of an allowable number of accesses. If
the current access is in excess of the pre-determined allowable
limit, then the data is returned to the transaction location
indicating the unacceptable request to exceed the limit, and thus,
disapproval of the transaction. If the current access is not in
excess of the allowable determined limit, then the verification of
the check is approved and such verification is used to update the
frequency of account access database, and the approval is returned
to the transaction location. Various account conditions can be
used, alternatively, to verify the condition of an account. Such
conditions can include "outstanding checks," "returned checks," and
"account closed" among others. For example, if there are
outstanding checks on the system for a user's account, then the
present invention can return an indication to the transaction
location that the user's account is not in condition to satisfy the
negotiable instrument. Likewise, if the token is a credit card,
debit card, loyalty card, smart card or similar-type token, the
condition of an account can include "exceeding credit limit,"
unpaid balance," "insufficient funds," etc.
[0019] In a further exemplary embodiment, the transaction database
and/or the biometric database within a tokenless payment system can
be used to verify or authenticate the person presenting a token at
the transaction location. The token being presented at the
transaction location is swiped obtaining the necessary account
information and sent to a processor for comparison with account
information stored in the transaction information database within
the tokenless processing system. If a match occurs with account
information stored in the transaction database of the tokenless
system, the token system then requires the token to be
authenticated by a biometric. The biometric information is then
sent either separately or in parallel with the transaction
information to the tokenless system for approval.
[0020] The verification system preferably includes the capability
to provide reports on user/customer activity to a merchant or
business upon request. The merchant directs an inquiry to the
central (or local) system which is in communication with a series
of databases and which preferably includes databases indicative of:
a number of transactions for a specific account; the location of
the transactions for such account; and a user/customer list and
relevant data associated with the user/customer. Depending upon the
inquiry generated from the merchant, the main (or local) system
retrieves the requested information to generate a report on a
specific customer, and then returns the report to the merchant.
[0021] Alternatively, the verification system can be used in
conjunction with a bank proofing machine during batch processing of
checks. When the proofing machine scans the magnetic number from
the check, the identification data imprinted on a check at the
transaction location is compared with account owner identification
data as recorded and maintained by the bank to determine if the
correct account owner submitted the check. The verification system
can also be used in conjunction with an Electronic Check Exchange
(ECE) system in which the check information is exchanged
electronically, in lieu of or in addition to the exchange of paper
checks. For forward presentment, an ECE system is usually referred
to as an Electronic Check Presentment (ECP) system. The
verification system can be used in conjunction with Automatic
Clearinghouse (ACH) processing systems. Furthermore, the
verification system can be used in conjunction with a token
processing system such as a credit card or debit card processing
center to verify the information read from the magnetic strip on
the token with information recorded and maintained by the credit or
debit card processing center.
[0022] Accordingly, the present invention has a practical
application in that it provides an electronic transaction
verification system to a merchant for use at a transaction
location, which determines if the user/customer is authorized to
use a specific account, and if the account is in satisfactory
condition to remit funds for the negotiable instrument drawn
against it.
[0023] The present invention of the electronic transaction
verification system further has industrial applicability in that it
provides a computer system which correlates biometric data that is
precise with not easily forgeable measurements of a customer, such
as fingerprints and/or data from identification cards, and that can
be digitally encoded and processed along with the information
relative to a negotiable instrument such that the risk of the
merchant accepting a bad instrument is greatly reduced. Thus, the
present invention can be quite economically beneficial to a
merchant utilizing the system.
[0024] More generally, the invention is applicable to electronic
transaction verification of a person initiating a transaction with
a token at a transaction location. In the context of the invention,
without limitation, a transaction token can include a negotiable
instrument, a check payable on demand, a substitute check, a
traveler's check, a debit card, a credit card, a smart card, a
promissory note, food stamps, or any other token presented at the
point-of-sale for payment. The point-of-sale can be a physical or
virtual (i.e., web site) store location. The token is presented at
a transaction location to a vendor or merchant. The transaction is
initiated by the user presenting a token at the transaction
location along with a biometric measurement being taken to verify
the identity of the individual against information stored in a
database. Information read electronically from the token is used to
determine the condition of a user account.
[0025] A substitute check, as used herein, has the meaning given to
it in the "Check Clearing for the 21.sup.st Century Act," Public
Law 108-100, Oct. 28, 2003. A substitute check is a legal
equivalent of the original check that has been truncated. It
contains an image of the front and back of the original check and
bears a MICR line containing all information appearing on the MICR
line of the original check.
BRIEF DESCRIPTION OF THE DRAWINGS
[0026] The invention is better understood by reading the following
detailed description of the invention in conjunction with the
accompanying drawings.
[0027] FIG. 1 is a block diagram of an exemplary embodiment of the
electronic transaction verification system illustrating a
verification unit in communication with a central processing system
and identification database.
[0028] FIG. 2 is a block diagram illustrating an alternate
embodiment of the present invention whereby the electronic
transaction verification unit is in communication with a central
database that returns an approval decision to the electronic
transaction verification unit.
[0029] FIG. 3 is a flow chart of an alternate embodiment of the
verification system illustrating the electronic transaction
verification unit transmitting the identifying data of a check and
a fingerprint to the central system for processing.
[0030] FIG. 4 is a flow chart illustrating the processing of
transmitted data by the central system upon receipt of the data
from the electronic transaction verification unit at the
transaction location.
[0031] FIG. 5 is a block diagram illustrating the main system
generating a customer report based upon receipt of an inquiry from
a retailer.
[0032] FIG. 6 is a block diagram illustrating a proofing machine
interacting with the biometric data scanner at the transaction
location, with the interrelation of a first biometric database for
known customers and a second biometric database for known invalid
data.
[0033] FIG. 7 illustrates an exemplary embodiment of the electronic
transaction verification system including a verification unit
operating in conjunction with a tokenless processing system having
its own transaction and biometric databases.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
[0034] The following description of the invention is provided as an
enabling teaching of the invention in its best, currently known
embodiment. Those skilled in the relevant art will recognize that
many changes can be made to the embodiments described, while still
obtaining the beneficial results of the present invention. It will
also be apparent that some of the desired benefits of the present
invention can be obtained by selecting some of the features of the
present invention without utilizing other features. Accordingly,
those who work in the art will recognize that many modifications
and adaptations to the present invention are possible and may even
be desirable in certain circumstances and are a part of the present
invention. Thus, the following description is provided as
illustrative of the principles of the present invention and not in
limitation thereof, since the scope of the present invention is
defined by the claims.
[0035] Referring now in greater detail to the drawings, in which
like numerals represent like components throughout the several
views, FIG. 1 illustrates a block diagram of an exemplary
embodiment of the verification system illustrating an electronic
transaction verification unit 10 in communication with a central
processing system 12 that includes an identification database 14.
The identification database can include a number of databases used
in the identification process such as a biometric database of known
customer data, as well as a separate database of known invalid
users. The database of known invalid users can be established by
correlating a biometric presented at a transaction location that is
used with a fraudulently obtained transaction token, and storing
the biometric as invalid. Central processing system 12 can be a
main system remote from the transaction location. While a check is
disclosed as one type of token to be processed in an exemplary
embodiment of the present inventive system, other tokens can be
processed in the same manner as disclosed herein. Negotiable
instrument, as the term is used herein is defined in Article 3
.sctn.104 of the Uniform Commercial Code. An instrument is
negotiable if it is: (1) a written instrument signed by the
endorser or maker; (2) an unconditional promise to pay a certain
amount of money, either on demand or at a future date; and (3)
payable to the holder or bearer. Examples of negotiable instruments
are checks, bills of exchange, and promissory notes. A check as
used herein means a draft, payable on demand and drawn on a bank,
or a cashier or teller's check. This is the customary definition of
a check. The exemplary embodiment of the electronic transaction
verification unit 10 is comprised of, at least, a check scanner or
token reader 16 and a biometric data-gathering device 18, such as a
fingerprint recording device.
[0036] Many check scanning devices are known in the art that scan
the magnetic ink on the bottom of checks and such devices range in
use from point-of-sale devices to scanners used at banks, where the
more advanced devices are referred to as bank "proofing" machines.
However, such device alternately includes the capability of video
digitization of the check or gathering of other characteristics of
the check that are useful for comparison.
[0037] The biometric recording device 18 preferably digitizes the
fingerprint of a customer at the point-of-sale for transmission to
a remote biometric database. Many devices for digitization and
transmission of fingerprints are well known in the art, such as the
devices of digital biometrics. Other biometric devices such as
retinal scanners and voiceprints are alternately used with, or in
lieu of, the exemplary fingerprint scanner. Such biometric devices
are commercially available and adaptable for use with the
invention. The electronic transaction verification unit 10 also
preferably includes a card reader/scanner, such as a driver's
license scanner 20 which scans information from a driver's license,
which is especially useful in states that put information, such as
fingerprints, in a computer-readable medium such as a magnetic
strip (e.g., a California license) or a bar code (e.g., a Georgia
license) on the driver's license. When the license contains this
information, the electronic transaction verification unit 10 can
perform an initial comparison between the biometric recorder device
18 and the device's license scanner 20 for determination of the
user's/customer's identity, in addition to or instead of,
transmitting biometric data to the biometric database of the
central processing system 12. The information gathered from the
license scanner 20 can also be verified with information licensed
from a state division of motor vehicles in order to authenticate a
driver's license. Finally, the electronic transaction verification
unit 10 preferably includes a signature-taking device 22 that
allows a customer to write his or her signature on the device that
then encodes the signature into digital format for transmission.
Such transmissions can occur with or separately from the
transmission of the check identification and biometric data. There
are many devices known in the art that allow a signature to be
digitized for storage and comparison, and any of such devices will
work satisfactorily in the present inventive system.
[0038] The electronic transaction verification unit 10 is
preferably a computer platform which has the capability to receive,
digitize and process the incoming data from the devices, shown by
block 24, for transmission to a central processing system 12. The
central processing system 12 can be remotely located from the
electronic transaction stations or can be at the same location as
the electronic transaction station, e.g., an in-store central
processor and database connected to electronic transaction stations
by a local area network. The other devices can be integrated with
the computer platform of the electronic transaction verification
unit 10, however, the devices can also be independent from the
computer platform as long as they are in connection with the
electronic transaction verification unit 10 sufficient to transmit
and have received by the unit 10 the relevant data from the
devices. The central processing system 12 is in connection with, at
least, an identification database 14, which at a minimum contains
the relevant specific identification data related to various
checking and/or credit accounts. The identification database 14 can
be a hard drive on the central processing system 12, computer
platform, or other type of memory device located either locally or
remotely, but in connection with, the central processing system 12.
Thus, in its most basic form, the present invention solely
generates and records identification data of the customer relevant
to a single sale and acceptance of a token at a transaction
location through recordation of the specific token identification
and biometric data of the customer at the transaction location,
which is then transmitted by the various devices of the electronic
transaction verification unit 10 for recordation. When the simple
recordation of the event is effected, it is preferable that the
electronic transaction verification unit 10 output a fingerprint
(or other biometric data) for inputting on the specific check,
negotiable instrument, or in conjunction with another type of token
at the transaction location, shown by output 26, either in actual
or digitally encoded form, whereby this identifying characteristic
of the person cashing or tendering the check is contained upon the
check itself and banks processing the check have the capability to
compare that imprinted fingerprint with fingerprints on file for
the actual account holders, if necessary. However, the printing of
the fingerprint on the check or in conjunction with the token
(e.g., credit card receipt) can be alternately used in any
embodiment of the present inventive verification system.
[0039] FIG. 2 illustrates an alternative embodiment of the
electronic transaction verification unit 10 in communication with a
central database 30 such that the central database 30 allows the
data stream of the electronic transaction verification unit 10 to
be acted upon by decision block 32 to determine if the token
verification is approved or denied, and then returns the approval
decision to the electronic transaction verification unit 10. In
such embodiment, the computer platform receives, processes, and
transmits the data of the various devices, shown by logic block 28,
to the processor 12 for comparison with information stored in
identification database 14 included in the central database 30, via
a communications link, for a simple comparison step to determine
approval. The central database 30 can include a customer account
information database (i.e., transaction information database), a
biometric database of known customer biometric data, as well as a
separate database of known invalid users. The database of known
invalid users can be established by correlating a biometric
presented at a transaction location with a fraudulently obtained
transaction token and storing the biometric as invalid.
[0040] At the central processor 12, the incoming data is compared,
either in parallel with or separately with token identification
data, with the existing known data for authorized users of accounts
stored in central database 30, shown by decision block 32, and an
approval is made as to whether or not to accept the token. Either a
yes decision 34 or a no decision 36 on approval is then
re-transmitted back to the computer hardware platform 28 of the
check verification unit 10. While the check verification unit 10 is
shown in communication with a processor 12 and database 30 remotely
located thereto, it is not necessary that the central processing
system 12 or the database 30 be located remotely to the electronic
transaction verification unit 10. In fact, the electronic
transaction verification unit 10 and central processing system 12
can be self-contained at the transaction location whereby the
central database 30, or the account information and biometric
databases are continually updated within the electronic transaction
verification unit 10 through either a data connection to a master
database or through periodic manual updates from storage media such
as floppy disks or CD ROMs. In such an embodiment, the electronic
transaction verification system is preferably self-contained and
includes all the necessary devices for scanning drivers' licenses
20, gathering biometric data (e.g., fingerprints) 18, or scanning
checks/reading tokens 16 (gathering check or token information
data) within one unit comprising the system.
[0041] FIG. 3 is a flow chart of an exemplary embodiment of the
processing logic of the electronic transaction verification system
showing the electronic transaction verification unit 10 where a
check or token is swiped, shown by logic block 38, and a
fingerprint is taken, shown by logic block 18, with the fingerprint
then being digitized, shown by logic block 19. Both the check
information data and the biometric fingerprint data are unified at
the transmitting data platform, shown by logic block 40, for
parallel transmission. The transmitted data then reaches the
central processing system 12 that is in communication with a check
or token account and biometric identification database 14 such that
a decision is made within the central processing system 12 in
regard to check or token approval. As discussed previously, the
identification database 14 can include a plurality of databases
used in the identification process. One of these is the biometric
database of known customer data. An additional biometric database
of known invalid users can also be established. The identification
database 14 collectively refers to the one or more biometric
databases. The central processing system 12 performs a decision
determining if the check/token information and biometric data are
consistent with an authorized user for the account against which
the check is drafted or token is provided, shown by decision block
42, whereby a yes decision 44 or a no decision 46 is returned to
the transaction location, shown by logic block 48. Upon return of
the data from the central processing system 12, the data indicative
of the decision is displayed, shown by display block 52, and/or a
hard copy is printed out, shown by document block 50, indicative of
the decision made, and alternatively, the grounds for acceptance or
rejection.
[0042] The present invention accordingly utilizes an inventive
digital process whereby a dataset originates from the transaction
location from the electronic transaction verification unit 10,
shown by logic block 54, as shown in the processing logic flow
chart of FIG. 4, and is preferably processed on the central
processing system 12. A decision is made as to whether information
on the MICR line (e.g., "ABA" number) or on the token is valid,
shown by decision block 56, and then a decision is made as to
whether the biometric data (e.g. fingerprint) is that of an
authorized user, shown by decision block 62, Next, a decision
(optional) is made as to whether the signature presented is that of
an authorized user, shown by decision block 68. An authorized user
is an individual authorized to use the system. An authorized user
can be the account owner. An authorized user can also be the payee
of a check, a subsequent payee or any other individual authorized
to access an account in the system. Affirmative responses to these
decisions in blocks 56, 62 and 68, shown by "yes" arrows 58, 64,
and 70, respectively, preferably allow further processing of the
data. Negative responses, shown by arrows 60, 66, and 72,
respectively, preferably effect a return of data to the transaction
location indicating that the transaction is disapproved, shown by
block 74.
[0043] Once affirmative responses have been received to decisions
56, 62, and 68, then the data can be further processed by accessing
a frequency of access database 78 which has information on accounts
based upon the numbers of inquiries to the system for a specific
account, shown by logic block 76, and such information is
maintained and updated in the frequency of account access database,
shown by database 78, which can be either integrated with or remote
to the central processing system 12. Then a decision is made as to
whether the current access is in excess of a predetermined
allowable amount of access inquires to the system for a specific
account, shown by decision block 80, and if the current access is
in excess of the allowable pre-determined amount, shown by "yes"
arrow 82, then the data is returned to the transaction location
indicating that the requested access exceeds the allowable amount,
shown by logic block 84, and thus that the transaction is
disapproved. Otherwise, if the current access is not in excess of
the allowable pre-determined amount, shown by "no" arrow 86, then
the electronic transaction verification request is approved, shown
by logic block 88. Other measures can also be used in lieu of, or
in addition, to these steps, to verify the condition of the
account. Several of the measures were identified above.
[0044] Upon approval, the information regarding approval is
transmitted, shown by arrow 90, to the frequency of account access
database 78 for updating of the records contained therein. The
information regarding the approval of the electronic transaction is
then returned to the transaction location and electronic
transaction verification unit 10, shown by logic block 92.
[0045] The steps of the processes set forth in FIG. 4 are
preferably performed by software being executed on the computer
platform comprising the central processing system 12, located
either at the transaction location and integrated with the
electronic transaction verification unit 10, or located remotely
thereto. One of skill in the art of computer programming can
determine from the present disclosure and the flow charts disclosed
herein the objects sufficient to write a program for the computer
platform sufficient to perform the tasks as disclosed herein.
[0046] In the exemplary embodiment illustrated in FIG. 7, the
transaction database 33 and/or the biometric database 35 within a
tokenless payment system can be used to verify or authenticate
(decision block 37) the person presenting a token for payment at
the transaction location. The token being presented at the
transaction location is swiped (logic block 16) obtaining the
necessary account information and sent to a processor 15 for
comparison with account information stored in the transaction
information database 33 within the tokenless processing system. If
a match occurs with account information stored in the transaction
database 33 of the tokenless system, the token system then requires
the token to be authenticated by a biometric (decision block 37).
The biometric information is gathered (logic block 18) and then
sent either separately or in parallel with the transaction
information (logic block 28) to the tokenless system for
approval.
[0047] If the account information is sent to the tokenless system
transaction processor 15 and there is no existing account in
transaction database 33, then the transaction information would be
processed by the normal procedures for handling the token at the
transaction location by electronic verification unit 10. If the
transaction location normally requires a biometric for the
processing of a token then the check/token account information 16
and the biometric information 18 can be gathered at the onset of
the transaction and the tokenless databases 33, 35 then would be
additional databases that would be checked. The transaction
information database 33 and the biometric database 35 can be the
same databases for both token-based and tokenless systems.
Likewise, the central processor 12 handling token-based
transactions (arrow 29) can be a separate processor or the same
processor handling the tokenless transactions.
[0048] The present invention of the electronic transaction
verification system preferably includes the capability to return a
report to a merchant/vendor upon request, as shown in FIG. 5. As so
embodied, an inquiry and/or request is made from a merchant
directed towards the central processing system 12, shown by logic
block 94, which requests a specific report or series of reports.
The central processing system 12 preferably includes access to a
variety of databases 96, which preferably contains separate
databases including a database indicative of a number of checks
cashed for a given account, shown by database 98, locations of
checks cashed for a specific account, shown by database 100, and a
database containing various information regarding the customers of
the account, shown by database 102. The central processing system
12 selectively accesses and interacts with these databases in
response to the inquiry from the merchant at logic block 94, and
generates a report on the specific customer or customers, shown by
processed data logic block 104. The processed data then is returned
in report form to the specific merchant, shown by logic block 106,
which made the inquiry and request to generate the report. Such
information generated by the verification system can prove highly
informative as to customer trends such as drops in frequencies of
purchases, customer dissatisfaction, or other trends that can then
be effectively targeted by marketing efforts.
[0049] The present inventive electronic transaction verification
system further provides that after the biometric identification
data, such as a fingerprint, has been imprinted on the check, the
present invention can alternately be used at a bank in conjunction
with the proofing machine to determine if the biometric
identification data on the check is that of the account owner. As
shown in FIG. 6, the biometric data from the biometric scanning
device 110, preferably at the transaction location 112, is sent,
either electronically or physically, to the proofing machines for
checks or negotiable instruments 114, typically at a bank
processing center 116. In the past, checks were typically sent
physically to a bank or processing center and the magnetic line of
the check physically scanned by the proofing machine 114.
Currently, many checks are being truncated electronically and the
information contained therein is being processed directly or
indirectly by host computers at the bank or processing centers.
[0050] In the embodiment shown in FIG. 6, the biometric data is
printed on the check by the biometric scanning device 110 and the
printed biometric data is scanned, and thus gathered, in addition
to the magnetic numbers of the check. A comparison step preferably
occurs within the proofing machine 114 during the batch processing
and scanning of the magnetic numbers of the checks for transfer of
funds from the accounts. The biometric data is retrieved and
updated from a first biometric database 118 that contains the
biometric data for known customers having accounts. The proofing
machine 114 also preferably perform a comparison step with a second
biometric database 120 containing biometric data for known invalid
users who have perpetrated, or attempted to perpetrate, fraudulent
activity with regard to tendering checks/negotiable instruments.
Databases 118 and 120 can reside on the proofing machine 114, or
can be located remotely. Such information in biometric database 120
is preferably also accessible by the biometric scanning device 110
at the transaction location 112 for updating and comparing, either
separately from or in conjunction with, the proofing machine 114.
If the check/negotiable instrument being compared was tendered
fraudulently, the biometric database 120 is useful for determining
the perpetrator's actual identity, and comparison between databases
118 and 120 can also be made for identity determination. In that
regard, biometric database 120 is also accessible by central
processing system 12, identification database 14, central database
30, as well as electronic transaction verification unit 10 for
detection of known fraudulent users.
[0051] The present invention can be utilized in a variety of forms
with a variety of sources of information other than those described
in detail herein. As an example, the electronic transaction
verification system can be interfaced to various transaction and
identification information databases containing customer account
information and biometric information.
[0052] While there have been shown a preferred and alternate
embodiments of the present invention, it is to be understood that
the invention may be embodied otherwise than is herein specifically
shown and described, and that within the embodiments, certain
changes may be made in the form and arrangement of the parts
without departing from the underlying ideas or principles of the
present invention of an electronic transaction verification system
set forth in the claims appended herewith.
* * * * *