U.S. patent application number 14/061533 was filed with the patent office on 2014-02-13 for system and method for managing a transaction protocol.
This patent application is currently assigned to American Express Travel Related Services Company, Inc.. The applicant listed for this patent is American Express Travel Related Services Company, Inc.. Invention is credited to Peter D. Saunders.
Application Number | 20140046835 14/061533 |
Document ID | / |
Family ID | 49919315 |
Filed Date | 2014-02-13 |
United States Patent
Application |
20140046835 |
Kind Code |
A1 |
Saunders; Peter D. |
February 13, 2014 |
SYSTEM AND METHOD FOR MANAGING A TRANSACTION PROTOCOL
Abstract
The invention teaches a system and method for managing a
transaction account using the BIN number included in a transaction
account number. The transaction account number is provided to a
transaction account issuer configured to retrieve the BIN number
from the transaction account. A portion of the BIN number, called
the BIN identifier, is retrieved by the transaction account issuer
and used to locate a corresponding use or issuer-defined
transaction processing protocol stored on the account issuer
system. The account issuer may then process the transaction request
in accordance with the protocol located.
Inventors: |
Saunders; Peter D.; (Salt
Lake City, UT) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
American Express Travel Related Services Company, Inc. |
New York |
NY |
US |
|
|
Assignee: |
American Express Travel Related
Services Company, Inc.
New York
NY
|
Family ID: |
49919315 |
Appl. No.: |
14/061533 |
Filed: |
October 23, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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10711968 |
Oct 15, 2004 |
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14061533 |
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10192488 |
Jul 9, 2002 |
7239226 |
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10711968 |
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10340352 |
Jan 10, 2003 |
7889052 |
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10711968 |
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10318480 |
Dec 13, 2002 |
7249112 |
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10340352 |
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60512424 |
Oct 17, 2003 |
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60512297 |
Oct 17, 2003 |
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60304216 |
Jul 10, 2001 |
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60396577 |
Jul 16, 2002 |
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Current U.S.
Class: |
705/39 |
Current CPC
Class: |
G06Q 20/04 20130101;
G06Q 20/3278 20130101; G06Q 20/352 20130101; G06Q 20/14 20130101;
G06Q 20/10 20130101; G06Q 20/40 20130101 |
Class at
Publication: |
705/39 |
International
Class: |
G06Q 20/10 20060101
G06Q020/10 |
Claims
1. A method comprising: retrieving, by a computer-based system for
facilitating management of a transaction request, bank
identification number (BIN) identifier from a portion of a BIN, the
BIN identifier identifying a funding protocol for a transaction
account; in response to a transaction request satisfying predefined
parameters of the funding protocol, processing, by the
computer-based system, the transaction request in accordance with
the funding protocol identified by the BIN identifier, and in
response to the transaction request not satisfying the predefined
parameters of the funding protocol, processing, by the
computer-based system, the transaction request with a
non-customer-defined protocol.
2. The method of claim 1, further comprising receiving, by the
computer-based system, a funding protocol parameter from a
customer.
3. The method of claim 1, wherein the transaction request includes
a transaction account number associated with a transaction
account.
4. The method of claim 1, further comprising retrieving, by the
computer-based system, a BIN from the transaction account number,
wherein the BIN indicates a transaction account issuer of a
transaction account number.
5. The method of claim 1, further comprising routing, by the
computer-based system, a transaction request to a transaction
account issuer identified by the BIN.
6. The method of claim 1, wherein the predefined parameters define
a class of transactions to be processed according to the funding
protocol, wherein a first transaction class is associated with a
first funding source and a second transaction class is associated
with a second funding source.
7. The method of claim 1, further comprising associating the BIN
identifier to at least one of a first funding source and a second
funding source.
8. The method of claim 1, comprising associating a transaction
account number of the transaction account to a transaction
device.
9. The method of claim 1, further comprising defining the BIN
identifier as a fixed portion of the BIN, the BIN being fixed for a
particular funding source.
10. The method of claim 1, further comprising updating the funding
protocol prior to processing the transaction request.
11. The method of claim 1, further comprising defining the funding
protocol in accordance with at least one of a first funding source
and a second funding source.
12. The method of claim 1, comprising forwarding a portion of the
transaction request to at least one of a first funding source and a
second funding source for processing in accordance with the funding
protocol.
13. The method of claim 1, further comprising forwarding a portion
of the transaction request to at least one of a first funding
source and a second funding source in accordance with the BIN.
14. The method of claim 1, further comprising receiving the
transaction request from a merchant system, wherein the merchant
system receives a transaction account number at least one of via
radio frequency and in magnetic stripe format.
15. The method of claim 1, wherein a transaction account issuer
determines if the transaction request is part of a class of
transactions predetermined to be processed according to the funding
protocol.
16. The method of claim 1, wherein a transaction account issuer
determines if the funding protocol requires the transaction account
issuer to switch funding the transaction request from a first
funding source to a second funding source.
17. The method of claim 1, wherein the transaction account issuer
combines funds from a first funding source and a second funding
source to satisfy the transaction request, in response to a
spending limit on the first funding source being exceeded.
18. The method of claim 1, wherein a transaction account issuer
switches funding of the transaction request from a first funding
source to a second funding source, in response to a spending limit
on the first funding source being exceeded.
19. An article of manufacture including a non-transitory, tangible
computer readable storage medium having instructions stored thereon
that, in response to execution by a computer-based system for
facilitating management of a transaction request, cause the
computer-based system to perform operations comprising: retrieving,
by the computer-based system, bank identification number (BIN)
identifier from a portion of a BIN, the BIN identifier identifying
a funding protocol for a transaction account; in response to a
transaction request satisfying predefined parameters of the funding
protocol, processing, by the computer-based system, the transaction
request in accordance with the funding protocol identified by the
BIN identifier, and in response to the transaction request not
satisfying the predefined parameters of the funding protocol,
processing, by the computer-based system, the transaction request
with a non-customer-defined protocol.
20. A system comprising: a processor for facilitating management of
a transaction request, a tangible, non-transitory memory configured
to communicate with the processor, a retrieving module in
communication with the processor and configured to retrieve a bank
identification number (BIN) identifier from a portion of a BIN, the
BIN identifier identifying a funding protocol for a transaction
account; a processing module in communication with the processor
and configured to, in response to a transaction request satisfying
predefined parameters of the funding protocol, process the
transaction request in accordance with the funding protocol
identified by the BIN identifier, and the processing module
configured to, in response to the transaction request not
satisfying the predefined parameters of the funding protocol,
process the transaction request with a non-customer-defined
protocol.
Description
RELATED APPLICATIONS
[0001] This application is a continuation of, claims priority to
and the benefit of, U.S. Ser. No. 10/711,968 filed Oct. 15, 2004
and entitled "SYSTEM AND METHOD FOR MANAGING A TRANSACTION
PROTOCOL." The '968 application claims priority to and the benefit
of U.S. Provisional Application No. 60/512,424, filed Oct. 17,
2003. The '968 application also claims priority to and the benefit
of U.S. Provisional Application No. 60/512,297, filed Oct. 17,
2003. The '968 application is also a continuation-in-part of,
claims priority to and the benefit of, U.S. Pat. No. 7,239,226
issued Jul. 3, 2007 (aka U.S. patent application Ser. No.
10/192,488 filed Jul. 9, 2002) and entitled "SYSTEM AND METHOD FOR
PAYMENT USING RADIO FREQUENCY IDENTIFICATION IN CONTACT AND
CONTACTLESS TRANSACTIONS." The '226 patent claims priority to and
the benefit of U.S. Provisional Application No. 60/304,216 filed
Jul. 10, 2001. The '968 application is also a continuation-in-part
of, claims priority to and the benefit of, U.S. Pat. No. 7,889,052
issued Feb. 15, 2011 (aka U.S. patent application Ser. No.
10/340,352 filed Jan. 10, 2003) and entitled "SYSTEM AND METHOD FOR
INCENTING PAYMENT USING RADIO FREQUENCY IDENTIFICATION IN CONTACT
AND CONTACTLESS TRANSACTIONS." The '052 patent is a
continuation-in-part of, claims priority to and the benefit of,
U.S. Pat. No. 7,249,112 issued Jul. 24, 2007 (aka U.S. patent
application Ser. No. 10/318,480 filed Dec. 13, 2002) and entitled
"SYSTEM AND METHOD FOR ASSIGNING A FUNDING SOURCE FOR A RADIO
FREQUENCY IDENTIFICATION DEVICE." The '112 patent claims priority
to and the benefit of U.S. Provisional Application No. 60/396,577,
filed Jul. 16, 2002. All of the above-mentioned applications are
incorporated herein by reference in their entirety.
FIELD OF INVENTION
[0002] This invention generally relates to a system and method for
completing a transaction, and more particularly, managing a
transaction request which may be associated with a Radio Frequency
transaction device.
BACKGROUND OF THE INVENTION
[0003] Like barcode and voice data entry, RF is a contactless
information acquisition technology. RF systems are wireless, and
are usually extremely effective in hostile environments where
conventional acquisition methods fail. RF has established itself in
a wide range of markets, such as, for example, the high-speed
reading of railway containers, tracking moving objects such as
livestock or automobiles, and retail inventory applications. As
such, RF technology has become a primary focus in automated data
collection, identification and analysis systems worldwide.
[0004] Of late, companies are increasingly embodying RF data
acquisition technology in a fob or tag for use in completing
financial transactions. A typical fob includes a transponder and is
ordinarily a self-contained device which may be contained on any
portable form factor. In some instances, a battery may be included
with the fob to power the transponder. In which case the internal
circuitry of the fob (including the transponder) may draw its
operating power from the battery power source. Alternatively, the
fob may exist independently of an internal power source. In this
instance the internal circuitry of the fob (including the
transponder) may gain its operating power directly from an RF
interrogation signal. U.S. Pat. No. 5,053,774, issued to
Schuermann, describes a typical transponder RF interrogation system
which may be found in the prior art. The Schuermann patent
describes in general the powering technology surrounding
conventional transponder structures. U.S. Pat. No. 4,739,328
discusses a method by which a conventional transponder may respond
to a RF interrogation signal. Other typical modulation techniques
which may be used include, for example, ISO/IEC 14443 and the
like.
[0005] In the conventional fob powering technologies used, the fob
is typically activated upon presenting the fob in an interrogation
signal. In this regard, the fob may be activated irrespective of
whether the user desires such activation. Inadvertent presentation
of the fob may result in initiation and completion of an unwanted
transaction. Thus, a fob system is needed which allows the fob user
to control activation of the fob to limit transactions being
undesirably completed.
[0006] One of the more visible uses of the RF technology is the
radio frequency identification technology (RFID) found in the
introduction of Exxon/Mobil's Speedpass.RTM. and Shell's
EasyPay.RTM. products. These products use transponders placed in a
fob or tag which enables automatic identification of the user when
the fob is presented at a Point-of-Sale (POS) device. Fob
identification data is typically passed to a third-party server
database, where the identification data is referenced to a customer
(e.g., user) credit or debit account. In an exemplary processing
method, the server seeks authorization for the transaction by
passing the transaction and account data to an authorizing entity.
Once authorization is received by the server, clearance is sent to
the point-of-sale device for transaction processing.
[0007] Traditional transponder-reader systems, however, are limited
in that they do not permit the user to manage the system user
account data. This is extremely problematic where the user wishes
to change a transponder-reader system funding source to a source
which provides more available spending room, or where the user
wishes the pre-identity of a particular funding source for a
particular transaction.
[0008] Thus a need exists for a transponder-reader system which
will allow the user limited access to the transponder-reader
account for managing account data.
SUMMARY OF THE INVENTION
[0009] Described herein is a system and method for managing a
transaction protocol using a unique BIN number. The unique BIN
identifier may be, for example, a portion of a BIN number
associated with a particular funding source. The unique BIN
identifier may be an identifier ordinarily included in the BIN
number, that may be used to establish a transaction processing
protocol. In one exemplary embodiment, the unique BIN identifier
may be used to indicate a product family, type of transaction, or
the like, and to establish transaction protocol associated
thereto.
[0010] In another exemplary embodiment, the unique BIN identifier
may be provided to a RF operable transaction device. The RF
transaction device may then be presented for transaction
completion, wherein the transaction device provides the BIN
identifier for transaction completion. A transaction request,
including the BIN number, is provided to a RF transaction device
account provider for transaction processing. The RF transaction
device account provider may receive the BIN number and retrieve the
BIN identifier therefrom. The RF transaction account provider may
then process the transaction request under a pre-established
transaction processing protocol associated with the BIN
identifier.
[0011] The RF transaction device may be configured to transmit the
BIN number within the confines of a RF transaction device-reader
transaction system. The RF transaction device-reader transaction
system described herein may include a RFID reader operable to
provide a RF interrogation signal for powering a transponder system
included in the RF transaction device, receiving RF transaction
device user account data, and providing the account data to a
merchant system for transaction processing. The system may include
a RFID reader protocol/sequence controller in electrical
communication with one or more transponders for providing an
interrogation signal to a RF transaction device transponder. The
RFID reader may include a authentication circuit for authenticating
the signal received from the RF transaction device transponder, and
a serial or parallel interface for interfacing with a
point-of-interaction device.
[0012] The RF transaction device according to the present invention
may include a RF operable transponder which may be embodied in a
fob, tag, card or any other form factor (e.g., wristwatch,
keychain, cell phone, etc.), which may be capable of being
presented for interrogation. In that regard, although the
transponder is described herein as embodied in a fob, the invention
is not so limited.
[0013] During operation, the fob may be placed within proximity to
the RFID reader such that the RFID signal may interrogate the fob
and initialize fob identification procedures.
[0014] In one exemplary embodiment, as a part of the identification
process, the fob and the RFID reader may engage in mutual
authentication. The RFID reader may identify the fob as including
an authorized system transponder for receiving encrypted
information and storing the information on the fob memory.
Similarly, the fob, upon interrogation by the RFID reader, may
identify the RFID reader as authorized to receive the encrypted and
stored information. Where the RFID reader and the fob successfully
mutually authenticate, the fob may transmit to the RFID reader user
account data for identifying the transaction account or accounts to
which the fob is associated. The mutual authorization process
disclosed herein aids in ensuring fob RF transaction device reader
transaction system security.
[0015] In another exemplary embodiment, the fob according to the
present invention, includes means for completing transactions via a
computer interface. The fob may be connected to the computer using
a USB or serial interface fob account information may be
transferred to the computer for use in completing a transaction via
a network (e.g., the Internet).
[0016] In still another exemplary embodiment of the invention, a
system is disclosed which permits the user to manage the account
associated with the fob. The user is provided limited access to the
fob account information stored on the RF transaction device account
provider database for updating, for example, account funding
source, and/or account restrictions (e.g., spending limits,
personal identification number, etc.).
[0017] In yet another exemplary embodiment of the invention, a
system is provided whereby the user is permitted to select one or
more funding sources for use in satisfying a merchant request. The
user may designate a funding source using the aforementioned BIN
identifier. The user may switch funding sources manually by, for
example, contacting the fob account provider and indicating that a
particular funding source is to be associated with a particular
class of transactions. In this way, the user is permitted to change
funding sources from a primary funding source to a secondary
funding source. In this context, a "primary" funding source may be
the funding source which the account provider may primarily use to
retrieve funds and satisfy all or a portion of a merchant
transaction request. A "secondary" funding source may be any
alternate funding source from which value may be retrieved for
satisfying all or a portion of a transaction request. It should be
noted that primary and secondary are used herein to illustrate that
more than one funding source may be chosen by the user for
association with the fob, and that any number of sources may be
selected.
[0018] In addition, the fob user may provide the fob account
provider with a funding protocol for use in determining which
funding source to use in accordance with the BIN identifier. For
example, the fob user may designate that for a particular type of
transaction, a selected funding source identified by the BIN
identifier is to be automatically used. In this way, the fob user
is assured that particular transactions will be satisfied (e.g.,
completed) using an identified funding source and/or the fob
account provider may send all similar transactions to an identified
funding source, thereby facilitating tracking of the similar
transactions.
[0019] The funding protocol may additionally include guidelines for
automatically changing to a secondary funding source when the
requested transaction amount meets or exceeds the available value
of the primary funding source. That is, the funding protocol
indicates to the account provider that the funds for satisfying a
merchant request should be retrieved from a secondary funding
source when the value in the primary funding source is insufficient
for completing the transaction. Alternatively, the funding protocol
may indicate to the account provider that the transaction should be
completed using value from both the primary and secondary funding
sources. The amount retrieved from the primary and secondary
funding sources may be based on a calculated formula defined by the
fob user or fob issuer. In a typical example, where a particular
BIN identifier is identified by the account provider, the account
provider may seek to retrieve a percentage of the value needed from
the primary funding source with the balance of the transaction
retrieved from the secondary funding source. Alternatively, the
value in the primary funding source may be depleted prior to
retrieving the balance of the requested transaction from the
secondary funding source.
[0020] In a further exemplary embodiment, the invention provides
methods for processing a transaction request whereby the amount of
the transaction request may be approved prior to requesting funding
from the funding source and/or verifying that the amount for
completing the transaction is available by referencing the BIN
identifier included in a transaction request. In this way, the
transaction may be approved provided the transaction and/or account
meets certain predetermined authorization criteria. Once the
criteria is met, the transaction is authorized and authorization is
provided to the requesting agent (e.g., merchant). In one instance
the payment for the transaction is requested from the funding
source simultaneously to, or immediately following, the providing
of the authorization to the merchant. In another instance the
payment for transactions is requested at a time period later than
when the authorization is provided to the merchant.
[0021] These features and other advantages of the system and
method, as well as the structure and operation of various exemplary
embodiments of the system and method, are described below.
BRIEF DESCRIPTION OF THE DRAWINGS
[0022] The accompanying drawings, wherein like numerals depict like
elements, illustrate exemplary embodiments of the present
invention, and together with the description, serve to explain the
principles of the invention. In the drawings:
[0023] FIG. 1 illustrates an exemplary RFID-based system in
accordance with the present invention, wherein exemplary components
used for fob transaction completion are depicted;
[0024] FIG. 2 is a schematic illustration of an exemplary fob in
accordance with the present invention;
[0025] FIG. 3 is a schematic illustration of an exemplary RFID
reader in accordance with the present invention;
[0026] FIG. 4 is an exemplary flow diagram of an exemplary
authentication process in accordance with the present
invention;
[0027] FIG. 5 is an exemplary flow diagram of an exemplary decision
process for a protocol/sequence controller in accordance with the
present invention;
[0028] FIG. 6 depicts an exemplary personalization system useful
with the present invention;
[0029] FIGS. 7A-B are an exemplary flow diagram of a fob
personalization process in accordance with the present
invention;
[0030] FIG. 8 is a flow diagram of an exemplary payment/transaction
process in accordance with the present invention; and
[0031] FIG. 9 is an exemplary flow diagram of a funding protocol
for use by the fob account provider in satisfying a transaction
request.
DETAILED DESCRIPTION
[0032] The present invention may be described herein in terms of
functional block components, screen shots, optional selections and
various processing steps. Such functional blocks may be realized by
any number of hardware and/or software components configured to
perform to specified functions. For example, the present invention
may employ various integrated circuit components (e.g., memory
elements, processing elements, logic elements, look-up tables, and
the like), which may carry out a variety of functions under the
control of one or more microprocessors or other control devices.
Similarly, the software elements of the present invention may be
implemented with any programming or scripting language such as C,
C++, Java, COBOL, assembler, PERL, extensible markup language
(XML), JavaCard and MULTOS with the various algorithms being
implemented with any combination of data structures, objects,
processes, routines or other programming elements. Further, it
should be noted that the present invention may employ any number of
conventional techniques for data transmission, signaling, data
processing, network control, and the like. For a basic introduction
on cryptography, review a text written by Bruce Schneier entitled
"Applied Cryptography: Protocols, Algorithms, and Source Code in
C," published by John Wiley & Sons (second edition, 1996),
herein incorporated by reference.
[0033] In addition, many applications of the present invention
could be formulated. The exemplary network disclosed herein may
include any system for exchanging data or transacting business,
such as the Internet, an intranet, an extranet, WAN, LAN, satellite
communications, and/or the like. It is noted that the network may
be implemented as other types of networks, such as an interactive
television network (ITN).
[0034] Where required, the system user may interact with the system
via any input device such as, a keypad, keyboard, mouse, kiosk,
personal digital assistant, handheld computer (e.g., Palm
Pilot.RTM., Blueberry.RTM.), cellular phone and/or the like.
Similarly, the invention could be used in conjunction with any type
of personal computer, network computer, work station, minicomputer,
mainframe, or the like, running any operating system such as any
version of Windows, Windows NT, Windows 2000, Windows 98, Windows
95, MacOS, OS/2, BeOS, Linux, UNIX, Solaris, or the like. Moreover,
although the invention may frequently be described as being
implemented with TCP/IP communications protocol, it should be
understood that the invention could also be implemented using SNA,
IPX, Appletalk, IPte, NetBIOS, OSI or any number of communications
protocols. Moreover, the system contemplates, the use, sale, or
distribution of any goods, services or information over any network
having similar functionality described herein.
[0035] The present invention provides a system and method for using
a portion of a BIN number to establish a funding protocol for
transaction processing. In this context, the BIN number is an
identifier included in a transaction account number that is used to
identify the transaction account issuer to which a transaction is
to be forwarded for processing. In this sense, the BIN number is
ordinarily an ordinary type of routing number enabling a merchant
system to route a transaction request to the proper transaction
account issuer for processing. In accordance with the invention, as
described more fully below, the transaction account issuer may use
a portion of the BIN number received (e.g., BIN identifier) to
determine the transaction processing protocol associated therewith.
The BIN identifier may be used to define a funding protocol for the
funding source associated with it.
[0036] FIG. 1 illustrates an exemplary RFID transaction system 100
in accordance with the present invention, which is described to
facilitate understanding of the invention. System 100 includes a
fob 102 in RF communication with a RFID reader 104 to transfer user
account information. The RFID reader 104 is in communication with a
merchant POS 110, which is in communication with a RF module
account issuer via a network for transmitting user account data
thereto for transaction processing. In general, the operation of
system 100 may begin when fob 102 is presented for payment, and is
interrogated by RFID reader 104 or, alternatively, interface 134.
Fob 102 and RFID reader 104 may then engage in mutual
authentication after which the transponder 102 may provide the
transponder identification and/or account identifier to the RFID
reader 104 which may further provide the information to the
merchant system 130 POS device 110.
[0037] Although the present invention is described with respect to
a fob 102, the invention is not to be so limited. Indeed, system
100 may include any device having a transponder which is configured
to communicate with a RFID reader 104 via RF communication. Typical
devices may include, for example, a key ring, tag, card, cell
phone, wristwatch or any such form configured with a transponder
capable of being presented for interrogation.
[0038] The RFID reader 104 may be configured to communicate with
fob 102 using a RF internal antenna 106. Alternatively, RFID reader
104 may include an external antenna 108 for communications with fob
102, where the external antenna may be made remote to the RFID
reader 104 using a suitable cable and/or data link 120. RFID reader
104 may be further in communication with a merchant system 130 via
a data link 122.
[0039] The system 100 may include a transaction completion system
including a point-of-interaction device such as, for example, a
merchant point-of-sale (POS) device 110 or a computer interface
(e.g., user interface) 134. In one exemplary embodiment the
transaction completion system may include a merchant system 130
including the POS device 110 in communication with a RFID reader
104 (via data link 122). As described more fully below, the
transaction completion system may include the user interface 134
connected to a network 136 and to the transponder via a USB
connector 132.
[0040] Although the point-of-interaction device is described herein
with respect to a merchant point-of-sale (POS) device, the
invention is not to be so limited. Indeed, a merchant POS device is
used herein by way of example, and the point-of-interaction device
may be any device capable of receiving fob account data. In this
regard, the POS may be any point-of-interaction device enabling the
user to complete a transaction using a fob 102. POS device 110 may
be in further communication with a customer interface 118 (via data
link 128) for entering at least a customer identity verification
information. In addition, POS device 110 may be in communication
with a merchant host network 112 (via data link 124) for processing
any transaction request. In this arrangement, information provided
by RFID reader 104 is provided to the POS device 110 of merchant
system 130 via data link 122. The POS device 110 may receive the
information (and alternatively may receive any identity verifying
information from customer interface 118 via data link 128) and
provide the information to host system 112 for processing.
[0041] A variety of conventional communications media and protocols
may be used for data links 120, 122, 124, and 128. For example,
data links 120, 122, 124, and 128 may be an Internet Service
Provider (ISP) configured to facilitate communications over a local
loop as is typically used in connection with standard modem
communication, cable modem, dish networks, ISDN, Digital Subscriber
Lines (DSL), or any wireless communication media. In addition, the
merchant system 130 including the POS device 110 and host network
112 may reside on a local area network which interfaces to a remote
network (not shown) for remote authorization of an intended
transaction. The merchant system 130 may communicate with the
remote network via a leased line, such as a T1, D3 line, or the
like. Such communications lines are described in a variety of
texts, such as, "Understanding Data Communications," by Gilbert
Held, which is incorporated herein by reference.
[0042] An account number, as used herein, may include any
identifier for an account (e.g., credit, charge debit, checking,
savings, reward, loyalty, or the like) which may be maintained by a
transaction account provider (e.g., payment authorization center)
and which may be used to complete a transaction. A typical account
number (e.g., account data) may be correlated to a credit or debit
account, loyalty account, or rewards account maintained and
serviced by such entities as American Express.RTM., Visa.RTM.
and/or MasterCard.RTM. or the like. For ease in understanding, the
present invention may be described with respect to a credit
account. However, it should be noted that the invention is not so
limited and other accounts permitting an exchange of goods and
services for an account data value is contemplated to be within the
scope of the present invention.
[0043] In addition, the account number (e.g., account data) may be
associated with any device, code, or other identifier/indicia
suitably configured to allow the consumer to interact or
communicate with the system, such as, for example,
authorization/access code, personal identification number (PIN),
Internet code, digital certificate, biometric data, and/or other
identification indicia. The account number may be optionally
located on a rewards card, charge card, credit card, debit card,
prepaid card, telephone card, smart card, magnetic stripe card, bar
code card, and/or the like. The account number may be distributed
and stored in any form of plastic, electronic, magnetic, and/or
optical device capable of transmitting or downloading data to a
second device. A customer account number may be, for example, a
sixteen-digit credit card number, although each credit provider has
its own numbering system, such as the fifteen-digit numbering
system used by American Express.RTM..
[0044] Each company's credit card numbers comply with that
company's standardized format such that the company using a
sixteen-digit format will generally use four spaced sets of
numbers, as represented by the number "0000 0000 0000 0000". In a
typical example, the first five to seven digits (e.g., BIN number)
are reserved for processing purposes and identify the issuing bank
to which a transaction request is to be forwarded, card type and,
etc. In this example, the last sixteenth digit is used as a sum
check for the sixteen-digit number. The intermediary eight-to-ten
digits are used to uniquely identify the customer. In one exemplary
embodiment, the account number may include a unique fob serial
number and user identification number, as well as specific
application applets. The account number may be stored on fob 102 as
Track 1 and Track 2 data as defined in ISO/IEC 7813, and further
may be made unique to fob 102. As noted, the first five to seven
digits are typically used to identify the issuing bank (e.g.,
funding source), card type or the like. As used herein, the first
five to seven digits are termed the BIN number. Ordinarily the BIN
number for a particular funding source is fixed. Thus, under the
present invention, a portion of the BIN number, called the BIN
identifier may be used to establish a funding protocol for a
particular funding source, as described in detail below.
[0045] FIG. 2 illustrates a block diagram of the many functional
blocks of an exemplary fob 102 in accordance with the present
invention. Fob 102 may be a RF operable fob 102 which may be
presented by the user to facilitate an exchange of funds or points,
etc., for receipt of goods or services. As described herein, by way
of example, the fob 102 may be a RFID fob which may be presented
for facilitating payment for goods and/or services.
[0046] Fob 102 may include an antenna 202 for receiving an
interrogation signal from RFID reader 104 via antenna 106 (or
alternatively, via external antenna 108). Fob antenna 202 may be in
communication with a fob transponder 114. In one exemplary
embodiment, transponder 114 may be a 13.56 MHz transponder
compliant with the ISO/IEC 14443 standard, and antenna 202 may be
of the 13 MHz variety. The transponder 114 may be in communication
with a transponder compatible modulator/demodulator 206 configured
to receive the signal from transponder 114 and configured to
modulate the signal into a format readable by any later connected
circuitry. Further, modulator/demodulator 206 may be configured to
format (e.g., demodulate) a signal received from the later
connected circuitry in a format compatible with transponder 114 for
transmitting to RFID reader 104 via antenna 202. For example, where
transponder 114 is of the 13.56 MHz variety, modulator/demodulator
206 may be ISO/IEC 14443-2 compliant.
[0047] Modulator/demodulator 206 may be coupled to a
protocol/sequence controller 208 for facilitating control of the
authentication of the signal provided by RFID reader 104, and for
facilitating control of the sending of the fob 102 account number.
In this regard, protocol/sequence controller 208 may be any
suitable digital or logic driven circuitry capable of facilitating
determination of the sequence of operation for the fob 102
inner-circuitry. For example, protocol/sequence controller 208 may
be configured to determine whether the signal provided by the RFID
reader 104 is authenticated, and thereby providing to the RFID
reader 104 the account number stored on fob 102.
[0048] Protocol/sequence controller 208 may be further in
communication with authentication circuitry 210 for facilitating
authentication of the signal provided by RFID reader 104.
Authentication circuitry 210 may be further in communication with a
non-volatile secure memory database 212. Secure memory database 212
may be any suitable elementary file system such as that defined by
ISO/IEC 7816-4 or any other elementary file system allowing a
lookup of data to be interpreted by the application on the chip.
Database 212 may be any type of database, such as relational,
hierarchical, object-oriented, and/or the like. Common database
products that may be used to implement the databases include DB2 by
IBM (White Plains, N.Y.), any of the database products available
from Oracle Corporation (Redwood Shores, Calif.), Microsoft Access
or MSSQL by Microsoft Corporation (Redmond, Wash.), or any other
database product. Database 212 may be organized in any suitable
manner, including as data tables or lookup tables. Association of
certain data may be accomplished through any data association
technique known and practiced in the art. For example, the
association may be accomplished either manually or automatically.
Automatic association techniques may include, for example, a
database search, a database merge, GREP, AGREP, SQL, and/or the
like. The association step may be accomplished by a database merge
function, for example, using a "key field" in each of the
manufacturer and retailer data tables. A "key field" partitions the
database according to the high-level class of objects defined by
the key field. For example, a certain class may be designated as a
key field in both the first data table and the second data table,
and the two data tables may then be merged on the basis of the
class data in the key field. In this embodiment, the data
corresponding to the key field in each of the merged data tables is
preferably the same. However, data tables having similar, though
not identical, data in the key fields may also be merged by using
AGREP, for example.
[0049] The data may be used by protocol/sequence controller 208 for
data analysis and used for management and control purposes, as well
as security purposes. Authentication circuitry may authenticate the
signal provided by RFID reader 104 by association of the RFID
signal to authentication keys stored on database 212. Encryption
circuitry may use keys stored on database 212 to perform encryption
and/or decryption of signals sent to or from the RFID reader
104.
[0050] In addition, protocol/sequence controller 208 may be in
communication with a database 214 for storing at least a fob 102
account data, and a unique fob 102 identification code.
Protocol/sequence controller 208 may be configured to retrieve the
account number from database 214 as desired. Database 214 may be of
the same configuration as database 212 described above. The fob
account data and/or unique fob identification code stored on
database 214 may be encrypted prior to storage. Thus, where
protocol/sequence controller 208 retrieves the account data, and or
unique fob identification code from database 214, the account
number may be encrypted when being provided to RFID reader 104.
Further, the data stored on database 214 may include, for example,
an unencrypted unique fob 102 identification code, a user
identification, Track 1 and 2 data, as well as specific application
applets.
[0051] FIG. 3 illustrates an exemplary block diagram of a RFID
reader 104 in accordance with an exemplary embodiment of the
present invention. RFID reader 104 includes, for example, an
antenna 106 coupled to a RF module 302, which is further coupled to
a control module 304. In addition, RFID reader 104 may include an
antenna 108 positioned remotely from the RFID reader 104 and
coupled to RFID reader 104 via a suitable cable 120, or other wire
or wireless connection.
[0052] RF module 302 and antenna 106 may be suitably configured to
facilitate communication with fob 102. Where fob 102 is formatted
to receive a signal at a particular RF frequency, RF module 302 may
be configured to provide an interrogation signal at that same
frequency. For example, in one exemplary embodiment, fob 102 may be
configured to respond to an interrogation signal of about 13.56
MHz. In this case, RFID antenna 106 may be 13 MHz and may be
configured to transmit an interrogation signal of about 13.56 MHz.
That is, fob 102 may be configured to include a first and second RF
module (e.g., transponder) where the first module may operate using
a 134 kHz frequency and the second RF module may operate using a
13.56 MHz frequency. The RFID reader 104 may include two receivers
which may operate using the 134 kHz frequency, the 13.56 MHz
frequency or both. When the reader 104 is operating at 134 kHz
frequency, only operation with the 134 kHz module on the fob 102
may be possible. When the reader 104 is operating at the 13.56 MHz
frequency, only operation with the 13.56 MHz module on the fob 102
may be possible. Where the reader 104 supports both a 134 kHz
frequency and a 13.56 MHz RF module, the fob 102 may receive both
signals from the reader 104. In this case, the fob 102 may be
configured to prioritize selection of the one or the other
frequency and reject the remaining frequency. Alternatively, the
reader 104 may receive signals at both frequencies from the fob
upon interrogation. In this case, the reader 104 may be configured
to prioritize selection of one or the other frequency and reject
the remaining frequency.
[0053] RFID antenna 106 may be in communication with a transponder
306 for transmitting an interrogation signal and receiving at least
one of an authentication request signal and/or an account data from
fob 102. Transponder 306 may be of similar description as
transponder 114 of FIG. 2. In particular, transponder 306 may be
configured to send and/or receive RF signals in a format compatible
with antenna 202 in similar manner as was described with respect to
fob transponder 114. For example, where transponder 306 is 13.56
MHz RF rated antenna 202 may be 13.56 MHz compatible. Similarly,
where transponder 306 is ISO/IEC 14443 rated, antenna 106 may be
ISO/IEC 14443 compatible.
[0054] RF module 302 may include, for example, transponder 306 in
communication with authentication circuitry 308 which may be in
communication with a secure database 310. Authentication circuitry
308 and database 310 may be of similar description and operation as
described with respect to authentication circuitry 210 and secure
memory database 212 of FIG. 2. For example, database 310 may store
data corresponding to the fob 102 which are authorized to transact
business over system 100. Database 310 may additionally store RFID
reader 104 identifying information for providing to fob 102 for use
in authenticating whether RFID reader 104 is authorized to be
provided the fob account number stored on fob database 214.
[0055] Authentication circuitry 308 may be of similar description
and operation as authentication circuitry 210. That is,
authentication circuitry 308 may be configured to authenticate the
signal provided by fob 102 in similar manner that authentication
circuitry 210 may be configured to authenticate the signal provided
by RFID reader 104. As is described more fully below, fob 102 and
RFID reader 104 engage in mutual authentication. In this context,
"mutual authentication" may mean that operation of the system 100
may not take place until fob 102 authenticates the signal from RFID
reader 104, and RFID reader 104 authenticates the signal from fob
102.
[0056] Protocol/sequence controller 314 may be of similar
description as protocol/sequence controller 208. That is,
protocol/sequence controller 314 may be configured to control the
operation of the RFID reader inner circuitry (e.g., authentication
circuits, encryption circuits, databases, modulators/demodulators,
etc.).
[0057] FIG. 4 is a flowchart of an exemplary authentication process
in accordance with the present invention. The authentication
process is depicted as one-sided. That is, the flowchart depicts
the process of the RFID reader 104 authenticating the fob 102,
although similar steps may be followed in the instance that fob 102
authenticates RFID reader 104.
[0058] As noted, database 212 may store security keys for
encrypting or decrypting signals received from RFID reader 104. In
an exemplary authentication process, where RFID reader 104 is
authenticating fob 102, RFID reader 104 may provide an
interrogation signal to fob 102 (step 402). The interrogation
signal may include a random code generated by the RFID reader
authentication circuit 210, which is provided to the fob 102 and
which is encrypted using an unique encryption key corresponding to
the fob 102 unique identification code. For example, the
protocol/sequence controller 314 may provide a command to activate
the authentication circuitry 308. Authentication circuitry 308 may
provide from database 310 a fob interrogation signal including a
random number as a part of the authentication code generated for
each authentication signal. The authentication code may be an
alphanumeric code which is recognizable (e.g., readable) by the
RFID reader 104 and the fob 102. The authentication code may be
provided to the fob 102 via the RFID RF interface 306 and antenna
106 (or alternatively antenna 108).
[0059] Fob 102 receives the interrogation signal (step 404). The
interrogation signal including the authorization code may be
received at the RF interface 114 via antenna 202. Once the fob 102
is activated, the interrogation signal including the authorization
code may be provided to the modulator/demodulator circuit 206 where
the signal may be demodulated prior to providing the signal to
protocol/sequence controller 208. Protocol/sequence controller 208
may recognize the interrogation signal as a request for
authentication of the fob 102, and provide the authentication code
to authentication circuit 210. The fob 102 may then encrypt the
authentication code (step 406). In particular, encryption may be
done by authentication circuit 210, which may receive the
authentication code and encrypt the code prior to providing the
encrypted authentication code to protocol/sequence controller 208.
Fob 102 may then provide the encrypted authentication code to the
RFID reader 104 (step 408). That is, the encrypted authentication
code may be provided to the RFID reader 104 via
modulator/demodulator circuit 206, RF interface 114 (e.g.,
transponder 114) and antenna 202.
[0060] RFID reader 104 may then receive the encrypted
authentication code and decrypt it (step 410). That is, the
encrypted authentication code may be received at antenna 106 and RF
interface 306 and may be provided to authentication circuit 308.
Authentication circuit 308 may be provided a security
authentication key (e.g., transponder system decryption key) from
database 310. The authentication circuit may use the authentication
key to decrypt (e.g., unlock) the encrypted authorization code. The
authentication key may be provided to the authentication circuit
based on the fob 102 unique identification code. For example, the
encrypted authentication code may be provided along with the unique
fob 102 identification code. The authentication circuit may receive
the fob 102 unique identification code and retrieve from the
database 310 a transponder system decryption key correlative to the
unique fob 102 identification code for use in decrypting the
encrypted authentication code.
[0061] Once the authentication code is decrypted, the decrypted
authentication code is compared to the authentication code provided
by the RFID reader 104 at step 402 (step 412) to verify its
authenticity. If the decrypted authorization code is not readable
(e.g., recognizable) by the authentication circuit 308, the fob 102
is deemed to be unauthorized (e.g., unverified) (step 418) and the
operation of system 100 is terminated (step 420). Contrarily, if
the decrypted authorization code is recognizable (e.g., verified)
by the fob 102, the decrypted authorization code is deemed to be
authenticated (step 414), and the transaction is allowed to proceed
(step 416). In one particular embodiment, the proceeding
transaction may mean that the fob 102 may authenticate the RFID
reader 104 prior to the RFID reader 104 authenticating fob 102,
although, it should be apparent that the RFID reader 104 may
authenticate the fob 102 prior to the fob 102 authenticating the
RFID reader 104.
[0062] It should be noted that in an exemplary verification
process, the authorization circuit 308 may determine whether the
unlocked authorization code is identical to the authorization code
provided in step 402. If the codes are not identical then the fob
102 is not authorized to access system 100. Although, the
verification process is described with respect to identicality,
identicality is not required. For example, authentication circuit
308 may verify the decrypted code through any protocol, steps, or
process for determining whether the decrypted code corresponds to
an authorized fob 102.
[0063] Authentication circuitry 308 may additionally be in
communication with a protocol/sequence controller 314 of similar
operation and description as protocol/sequence controller 208 of
FIG. 2. That is, protocol/sequence device controller 314 may be
configured to determine the order of operation of the RFID reader
104 components. For example, FIG. 5 illustrates and exemplary
decision process under which protocol/sequence controller 314 may
operate. Protocol/sequence controller 314 may command the different
components of RFID reader 104 based on whether a fob 102 is present
(step 502). For example, if a fob 102 is not present, then
protocol/sequence controller 314 may command the RFID reader 104 to
provide an uninterrupted interrogation signal (step 504). That is,
the protocol/sequence controller may command the authentication
circuit 308 to provide an uninterrupted interrogation signal until
the presence of a fob 102 is realized. If a fob 102 is present, the
protocol/sequence controller 314 may command the RFID reader 104 to
authenticate the fob 102 (step 506).
[0064] As noted above, authentication may mean that the
protocol/sequence controller 314 may command the authentication
circuit 308 to provide fob 102 with an authorization code. If a
response is received from fob 102, protocol/sequence controller may
determine if the response is a response to the RFID reader 104
provided authentication code, or if the response is a signal
requiring authentication (step 508). If the signal requires
authentication, then the protocol/sequence controller 314 may
activate the authentication circuit as described above (step 506).
On the other hand, if the fob 102 signal is a response to the
provided authentication code, then the protocol/sequence controller
314 may command the RFID reader 104 to retrieve the appropriate
security key for enabling recognition of the signal (step 510).
That is, the protocol/sequence controller 314 may command the
authentication circuit 308 to retrieve from database 310 a security
key (e.g., transponder system decryption key), unlock the signal,
and compare the signal to the signal provided by the RFID reader
104 in the authentication process (e.g., step 506). If the signal
is recognized, the protocol/sequence controller 314 may determine
that the fob 102 is authorized to access the system 100. If the
signal is not recognized, then the fob 102 is considered not
authorized. In which case, the protocol/sequence controller 314 may
command the RFID controller to interrogate for authorized fobs
(step 504).
[0065] Once the protocol/sequence controller determines that the
fob 102 is authorized, the protocol/sequence controller 314 may
seek to determine if additional signals are being sent by fob 102
(step 514). If no additional signal is provided by fob 102, then
the protocol/sequence controller 314 may provide all the components
of RFID reader 104 to remain idle until such time as a signal is
provided (step 516). Contrarily, where an additional fob 102 signal
is provided, the protocol/sequence controller 314 may determine if
the fob 102 is requesting access to the merchant point-of-sale
terminal 110 (e.g., POS device) or if the fob 102 is attempting to
interrogate the RFID reader 104 for return (e.g., mutual)
authorization (step 518). Where the fob 102 is requesting access to
a merchant point-of-sale terminal 110, the protocol/sequence
controller 314 may command the RFID reader 104 to open
communications with the point-of-sale terminal 110 (step 524). In
particular, the protocol/sequence controller 314 may command the
point-of-sale terminal communications interface 312 to become
active, permitting transfer of data between the RFID reader 104 and
the merchant point-of-sale terminal 110.
[0066] On the other hand, if the protocol/sequence controller
determines that the fob 102 signal is a mutual interrogation
signal, then the protocol/sequence controller may command the RFID
reader 104 to encrypt the signal (step 520). The protocol/sequence
controller 314 may command the encryption authentication circuit
318 to retrieve from database 320 the appropriate encryption key in
response to the fob 102 mutual interrogation signal. The
protocol/sequence controller 314 may then command the RFID reader
104 to provide the encrypted mutual interrogation signal to the fob
102. The protocol/sequence controller 314 may command the
authentication circuit 318 to provide an encrypted mutual
interrogation signal for the fob 102 to mutually authenticate. Fob
102 may then receive the encrypted mutual interrogation signal and
retrieve from authentication circuitry 212 a RFID reader decryption
key.
[0067] Although an exemplary decision process of protocol/sequence
controller 314 is described, it should be understood that a similar
decision process may be undertaken by protocol/sequence controller
208 in controlling the components of fob 102. Indeed, as described
above, protocol/sequence controller 314 may have similar operation
and design as protocol/sequence controller 208. In addition, to the
above, protocol/sequence controllers 208 and 314 may incorporate in
the decision process appropriate commands for enabling USB
interfaces 222 and 316, when the corresponding device is so
connected.
[0068] Encryption/decryption component 318 may be further in
communication with a secure account number database 320 which
stores the security keys necessary for decrypting the encrypted fob
account number. Upon appropriate request from protocol/sequence
controller 314, encryption/decryption component (e.g., circuitry
318) may retrieve the appropriate security key, decrypt the fob
account number and forward the decrypted account number to protocol
sequence controller 314 in any format readable by any later
connected POS device 110. In one exemplary embodiment, the account
number may be forwarded in a conventional magnetic stripe format
compatible with the ISO/IEC 7813 standard. Upon receiving the
account number in magnetic stripe format, protocol/sequence
controller 314 may forward the account number to POS device 110 via
a communications interface 312 and data link 122, as best shown in
FIG. 1. POS device 110 may receive the decrypted account number and
forward the magnetic stripe formatted account number to a merchant
network 112 for processing. In this way, the present invention
eliminates the need of a third-party server. Further, where the POS
device 110 receives a response from network 112 (e.g., transaction
authorized or denied), protocol/sequence controller 314 may provide
the network response to the RF module 302 for optically and/or
audibly communicating the response to the fob 102 user.
[0069] RFID reader 104 may additionally include a USB interface
316, in communication with the protocol/sequence controller 314. In
one embodiment, the USB interface may be a RS22 serial data
interface. Alternatively, the RFID reader 104 may include a serial
interface such as, for example, a RS232 interface in communication
with the protocol/sequence controller 314. The USB connector 316
may be in communication with a personalization system 116 (shown in
FIG. 1) for initializing RFID reader 104 to system 100 application
parameters. That is, prior to operation of system 100, RFID reader
104 may be in communication with personalization system 116 for
populating database 310 with a listing of security keys belonging
to authorized fobs 102, and for populating database 320 with the
security keys to decrypt the fob 102 account numbers placing the
account numbers in ISO/IEC 7813 format. In this way, RFID reader
104 may be populated with a unique identifier (e.g., serial number)
which may be used by fob authentication circuitry 210 to determine
if RFID reader 104 is authorized to receive a fob 102 encrypted
account number. For a detailed discussion of an exemplary
personalization process useful with the invention please see U.S.
patent application Ser. No. 10/192,480, entitled "SYSTEM AND METHOD
FOR PAYMENT USING RADIO FREQUENCY IDENTIFICATION IN CONTACT AND
CONTACTLESS TRANSACTIONS," filed Jul. 9, 2002.
[0070] FIG. 6 illustrates an exemplary personalization system 101,
in accordance with the present invention. In general, typical
personalization system 101 may be any system for initializing the
RFID reader 104 and fob 102 for use in system 100. With reference
to FIG. 6, the similar personalization process for fob 102 may be
illustrated. For example, personalization system 116 may be in
communication with fob 102 via RF ISO 14443 interface 114 for
populating fob database 212 with the security keys for facilitating
authentication of the unique RFID reader 104 identifier. In
addition, personalization system 116 may populate on database 212 a
unique fob 102 identifier for use by RFID reader 104 in determining
whether fob 102 is authorized to access system 100. Personalization
system 116 may populate (e.g., inject) the encrypted fob 102
account number into fob database 214 for later providing to an
authenticated RFID reader 104.
[0071] In one exemplary embodiment, personalization system 116 may
include any standard computing system as described above. For
example, personalization system 116 may include a standard personal
computer containing a hardware security module operable using any
conventional graphic user interface. Prior to populating the
security key information account number and unique identifying
information into the fob 102 or RFID reader 104, the hardware
security module may authenticate the fob 102 and RFID reader 104 to
verify that the components are authorized to receive the secure
information.
[0072] FIGS. 7A-B illustrate an exemplary flowchart of a
personalization procedure which may be used to personalize fob 102
and/or RFID reader 104. Although the following description
discusses mainly personalization of fob 102, RFID reader 104 may be
personalized using a similar process. The personalization process,
which occurs between the personalization system 116 and the device
to be personalized (e.g., fob 102 or RFID reader 104), may begin,
for example at step 602. Mutual authentication may occur between
the personalization system 116 and the device to be authenticated
in much the same manner as was described above with regard to fob
102 mutually authenticating with RFID reader 104. That is,
personalization system 116 may transmit a personalization system
116 identifier to the device to be authenticated which is compared
by the device authentication circuitry 210, 308 against
personalization system identifiers stored in the device database
212, 310. Where a match does not occur (step 604), the
personalization process may be aborted (step 612). Where a match
occurs (step 604), the personalization system may prepare a
personalization file to be provided to the device to be
personalized (step 606). If the personalization system is operated
manually, the personalization file may be entered into the
personalization system 116 using any suitable system interface such
as, for example, a keyboard (step 606). Where the personalization
system 116 operator elects to delay the preparation of the
personalization files, the system 116 may abort the personalization
process (step 610). In this context, the personalization file may
include the unique fob 102 or RFID reader 104 identifier, security
key for loading into database 212 and 310, and/or security keys for
decrypting a fob account number which may be loaded in database
320.
[0073] Fob 102 may be personalized by direct connection to the
personalization system 116 via RF ISO/IEC 14443 interface 114, or
the fob 102 may be personalized using RFID reader 104.
Personalization system 116 and RFID reader 104 may engage in mutual
authentication and RFID reader 104 may be configured to transmit
the fob personalization file to fob 102 via RF. Once the fob 102 is
presented to RFID reader 104 (steps 608, 614) for personalization,
fob 102 and RFID reader 104 may engage in mutual authentication
(step 614). Where the fob 102 is not presented to the RFID reader
104 for personalization, the personalization process may be aborted
(step 610).
[0074] If the fob 102 is detected, the personalization system 116
may create as a part of the personalization file, a unique
identifier for providing to the fob 102 (step 616). The identifier
is unique in that one identifier may be given only to a single fob.
That is, no other fob may have that same identifier. The fob may
then be configured and loaded with that identifier (step 618).
[0075] The encrypted fob 102 account number may be populated into
fob 102 in the same manner as is described with respect to the fob
102 unique identifier. That is, personalization system 116 may
pre-encrypt the account data (step 620) and inject the encrypted
account into fob database 214 (step 622). The encrypted account
data may be loaded (e.g., injected) into the fob 102 using RFID
reader 104 as discussed above.
[0076] Once the personalization file is populated into the fob 102,
the populated information is irreversibly locked to prevent
alteration, unauthorized reading and/or unauthorized access (step
624). Personalization system 116 may then create a log of the
personalization file information for later access and analysis by
the personalization system 116 user (step 626).
[0077] It should be noted that in the event the personalization
process is compromised or interrupted (step 628), the
personalization system 116 may send a security alert to the user
(step 630) and the personalization process may be aborted (step
612). On the other hand, where no such compromising or interruption
exists, the personalization system 116 may be prepared to begin
initialization on a second device to be personalized (step
632).
[0078] FIG. 8 illustrates an exemplary flow diagram for the general
operation of system 100. The operation may be understood with
reference to FIG. 1, which depicts the elements of system 100 which
may be used in an exemplary transaction. The process is initiated
when a customer desires to present a fob 102 for payment (step
802). Upon presentation of the fob 102, the merchant initiates the
RF payment procedure via an RFID reader 104 (step 804). In
particular, the RFID reader sends out an interrogation signal to
scan for the presence of fob 102 (step 806). The RF signal may be
provided via the RFID reader antenna 106 or optionally via an
external antenna 108. The customer then may present the fob 102 for
payment (step 808) and the fob 102 is activated by the RF
interrogation signal provided.
[0079] The fob 102 and the RFID reader 104 may then engage in
mutual authentication (step 810). Where the mutual authentication
is unsuccessful, an error message may be provided to the customer
via the RFID optical and/or audible indicator (step 814) and the
transaction may be aborted (step 816). Where the mutual
authentication is successful (step 812), the RFID reader 104 may
provide the customer with an appropriate optical and/or audible
message (e.g., "transaction processing" or "wait") (step 818). The
fob protocol/sequence controller 208 may then retrieve from
database 214 an encrypted fob account number and provide the
encrypted account number to the RFID reader 104 (step 820).
[0080] The RFID reader 104 may then decrypt the account number and
convert the account number into magnetic stripe (ISO/IEC 7813)
format (step 822) and provide the unencrypted account number to the
merchant system 130 (step 828). In particular, the account number
may be provided to the POS 110 included in the merchant system 130.
The merchant system 130 may form a transaction request, including
the account number, and forward the transaction request to
transaction account issuer 107 for transaction processing. Upon
processing, the POS device 110 may then send an optical and/or
audible transaction status message to the RFID reader 104 (step
830) for communication to the customer (step 832).
[0081] The methods for processing the transactions may include one
of several transaction processing protocols as required by the fob
issuer or account holder.
[0082] In one exemplary transaction method according to the
invention, the transaction account may be associated with a funding
source 109, for use in satisfying the transaction request. The
transaction account issuer 107 may receive the account number and
retrieve from the account number the BIN number identifying the
funding source 109 for transaction processing. As noted, contained
within the BIN number is the BIN identifier. The transaction
account issuer 107 retrieves the BIN identifier and processes the
transaction request in accordance with the user or issuer defined
protocol associated with the BIN identifier.
[0083] The transaction account provider 107 may use any method for
obtaining the BIN identifier and the method may be issuer defined.
For example, the transaction account issuer 107 may designate a
fixed portion of the BIN number as the BIN identifier so that the
BIN identifier may be retrieved by referencing the fixed portion.
For example, if the BIN number consists of the first seven digits
of an account number, the transaction account issuer 107 may
designate the sixth digit as the BIN identifier. The transaction
account issuer 107 may then process the transaction in accordance
with the transaction processing protocol associated with that sixth
digit. The protocol may be contained on the transaction account
issuer 107 system. The protocol may be stored, for example, in a
computer-readable memory as a set of commands to be followed in
processing the merchant's transaction request. Once the protocol is
performed, the transaction account issuer notifies the funding
source 107 of the transaction results (e.g., transaction approved,
transaction denied, transaction account adjustment, etc.) and
informs the merchant system 130 of the actions to be taken.
[0084] The transaction protocol associated with the BIN number may
include usage restrictions, such as, for example, a per purchase
spending limit, a time of day use, a day of week use, certain
merchant use and/or the like, wherein an additional verification is
required when using the fob outside of the restriction. The
restrictions may be personally assigned by the fob 102 user, or the
account provider. For example, in one exemplary embodiment, the
account may be established such that purchases above $X (i.e., the
spending limit) must be verified by the customer. Such verification
may be provided using a suitable personal identification number
(PIN) which may be recognized by the RFID reader 104 or a payment
authorization center (not shown) as being unique to the fob 102
holder (e.g., customer) and the correlative fob 102 transaction
account number. Where the requested purchase is above the
established per purchase spending limit, the customer may be
required to provide, for example, a PIN, biometric sample and/or
similar secondary verification to complete the transaction.
[0085] Where a verification PIN is used as secondary verification
the verification PIN may be checked for accuracy against a
corroborating PIN which correlates to the fob 102 transaction
account number. The corroborating PIN may be stored locally (e.g.,
on the fob 102, or on the RFID reader 104) or may be stored on a
database (not shown) at the payment authorization center. The
payment authorization center database may be any database
maintained and operated by the fob 102 transaction account
provider.
[0086] The verification PIN may be provided to the POS device 110
using a conventional merchant (e.g., POS) PIN key pad 118 in
communication with the POS device 110 as shown in FIG. 1, or a RFID
keypad in communication with the RFID reader 104. PIN keypad may be
in communication with the POS device 110 (or alternatively, RFID
reader 104) using any conventional data link described above. Upon
receiving the verification PIN, the RFID reader 104 may seek to
match the PIN to the corroborating PIN stored on the RFID reader
104 at database 310 or 320. Alternatively, the verification PIN may
be provided to a payment authorization center to determine whether
the PIN matches the PIN stored on the payment authorization center
database which correlates to the fob 102 account. If a match is
made, the purchase may no longer be restricted, and the transaction
may be allowed to be completed.
[0087] In accordance with another exemplary embodiment of the
invention, the fob user is provided limited access to a fob user
data file maintained on an issuer system 107 for managing the
transaction processing protocol. The fob user may access the fob
user data file to change, for example, the funding source (e.g.,
credit account, charge account, rewards account, barter account,
etc.) associated with a BIN identifier, view the transaction
history, etc.
[0088] With reference to FIG. 1, the fob user may connect the fob
102 to a computer interface 134 via the USB interface 132. The fob
user may then use the computer interface 134 to access the fob user
data file via the network 136. In particular, the network 136 may
be in communication with an transaction account issuer system (e.g.
system 107 of FIG. 1) and may be provided limited access to an
issuer system 107 for managing the fob. The issuer system 107 may
be in communication with an issuer system database (not shown)
which stores the information to be managed relative to the user fob
user data file. The changes made to the fob user data file by the
fob user may be made in real-time, after a brief delay, or after an
extended delay. In one instance, changes may be stored in a batch
changes file on the issuer database for later batch processing.
[0089] The fob user may be provided limited access to all or a
portion of the issuer system 107 to define the transaction
processing protocol (e.g., funding protocol) for use in satisfying
a transaction request. The fob user may be permitted access to all
or a portion of the issuer database for defining the protocol for
determining the funding source to be used for a particular
transaction. The fob user may be permitted to select one or more
particular funding source for use with the fob depending on the
conditions of the transaction request. For example, the funding
protocol may indicate to the issuer 107 (e.g., account provider)
that a particular funding source is to be used for an identified
class of transactions or for a particular merchant. Alternatively,
the funding protocol may indicate that a combination of sources may
be used to satisfy a transaction request. In this arrangement, the
primary, secondary, tertiary funding sources may have similar
descriptions as any one of funding sources 109 described above.
[0090] FIG. 9 depicts an exemplary funding protocol 1400 which the
user or transaction account issuer 107 may define for a particular
BIN number. As shown, the funding protocol may be initiated when
the fob 102 is presented for payment (step 1402). The fob 102 may
be presented to a RFID reader 104. The RFID reader 104 or the
computer interface 134 may provide an account number to the
merchant system 130 and the merchant system 130 may seek
satisfaction of a transaction request from an issuer system 107
(step 1404). As noted, the transaction request includes the BIN
number and BIN identifier used to determine the corresponding
protocol to be used for transaction processing.
[0091] The account issuer 107 may receive the transaction request
and obtain the BIN identifier as discussed above (step 1405) for
transaction satisfaction using a particular funding source. The
transaction account issuer 107 may use the BIN identifier to
retrieve the corresponding funding protocol illustrated by funding
protocol 1450 on FIG. 9 from the transaction account issuer system.
The funding protocol 1450 illustrates a protocol designed to
effectuate transaction processing for a particular funding source
109 identified by the BIN identifier as it relates to a merchant
system 130 or a class of transactions.
[0092] The transaction account issuer 107 may receive the
transaction request and determine if the transaction request falls
into a class of transactions predetermined to be processed
according to the protocol identified by the BIN identifier (step
1407). The transaction account provider may also determine whether
the merchant system 130 providing the transaction request is
identified for processing under the transaction protocol (step
1409). If the class of transactions or the merchant system 130 are
not within the protocol parameters, the transaction processing
system processes the transaction request under the business as
usual standards defined by the transaction processing system 107
(step 1411).
[0093] For example, if a merchant (or transaction) is identified,
the protocol transaction account issuer 107 may determine whether
the protocol requires the transaction account issuer 107 to switch
the funding source associated with the fob 102 from a primary
funding source to a secondary funding source (step 1408). The
transaction account issuer 107 may additionally determine whether
the spending limit for the secondary funding source has been
reached or exceeded (step 1410). If the spending limit for the
secondary funding sources is not exceeded, then the server may
retrieve the appropriate value for satisfying a transaction request
from the secondary funding source (step 1414). The funds may then
be transferred to the merchant system 130 under any business as
usual standard (step 1416), completing the merchant's transaction
request.
[0094] In some instances, the funding may be switched from the
primary funding source to the secondary funding source (step 1408),
and the spending limit for the secondary sources is reached or
exceeded (step 1410). In which case, the transaction account issuer
107 may use the protocol to determine whether the fob user has
indicated that the merchant transaction request is to be satisfied
using funds retrieved from a combination of funds received from the
primary and secondary funding sources (step 1412). The combination
of funds may be retrieved using any formula determined by the fob
user or fob account issuer (step 1430), and the funds may be
transferred to the merchant system 130, satisfying the merchant
transaction request.
[0095] In another embodiment, the transaction account issuer 107
may determine if a switch is to be made to yet a tertiary funding
source (step 1432). In which case, the transaction account issuer
107 may determine if the spending limit for the tertiary funding
source has been reached or exceeded (step 1436). If the funds are
exceeded, the merchant request may be terminated and a "transaction
denied" message may be forwarded to the merchant system 130 (step
1434).
[0096] Where the funding source is not to be switched (step 1406),
the transaction account issuer 107 may not switch from a primary
funding source to a secondary funding source. Instead, the
transaction account issuer 107 may determine whether the spending
limit on the primary source is reached or exceeded (step 1420). If
the spending limit on the primary source is not exceeded, then the
appropriate funds for satisfying the merchant request may be
retrieved from the primary funding source (step 1422) and
transferred to the merchant system 130 under business as usual
standards (step 1424).
[0097] Contrarily, where the spending limit on the primary funding
source is reached or exceeded (step 1420), in one embodiment, the
transaction account issuer 107 may determine whether to combine
funds retrieved from a primary funding source and a secondary
funding source to satisfy the merchant transaction request (step
1426). If the primary and secondary funding sources are to be
combined, funds may be retrieved from the multiple funding sources
using any formula as determined by the fob user or fob account
issuer (step 1430). The funds may then be transferred to the
merchant system 130 under business as usual standards (step
1424).
[0098] If the funds from the primary and secondary funding sources
are not to be combined, the transaction account issuer 107 may
determine whether to switch from a primary funding source to a
secondary funding source (step 1428). If no switch is to be made
and the transaction request exceeds the primary funding source
limit, then the transaction request may be terminated and a
"transaction denied" may be provided to the merchant under business
as usual standards (step 1434).
[0099] On the other hand, should the funding source be switched
from a primary funding source to a secondary funding source, the
transaction account issuer 107 may determine whether the spending
limit for the secondary funding source is reached or exceeded (step
1440). If the spending limit for the secondary funding source is
reached or exceeded, then the transaction may be terminated and a
"transaction denied" message maybe provided to the merchant system
130 under business as usual standards (step 1434). If the spending
limit for the secondary funding source is not reached or exceeded,
the appropriate funds for satisfying the transaction request may be
retrieved from the secondary funding source (step 1442) and
transferred to the merchant system 130 (step 1424), satisfying the
transaction request.
[0100] Although the present invention depicts a protocol 1450
useful with the invention, the invention contemplates other
transaction processing protocols.
[0101] The preceding detailed description of exemplary embodiments
of the invention makes reference to the accompanying drawings,
which show the exemplary embodiment by way of illustration. While
these exemplary embodiments are described in sufficient detail to
enable those skilled in the art to practice the invention, it
should be understood that other embodiments may be realized and
that logical and mechanical changes may be made without departing
from the spirit and scope of the invention. For example, the steps
recited in any of the method or process claims may be executed in
any order and are not limited to the order presented. Further, the
present invention may be practiced using one or more servers, as
necessary. Thus, the preceding detailed description is presented
for purposes of illustration only and not of limitation, and the
scope of the invention is defined by the preceding description, and
with respect to the attached claims.
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