US20060178937A1 - System and method for transponder-enabled account transactions - Google Patents

Abstract

A transponder-initiated transaction system is electromagnetically coupled to an account transponder device at the point of sale. The account transponder device may be embedded within a watch, key chain or other personal article for convenience or affinity. The transponder device may communicate account information to an RF-enabled point of sale device, enabling transactions to take place without resort to remote data processing facilities. In other embodiments partial or complete account information may be accessed or stored at co-located or remote sources. New account registrants may access a Web site to enter a transponder ID and activate a new account, which may be a credit account, debit account, cash account, special purpose vending account, or other types of accounts.

Description

FIELD OF THE INVENTION
• The invention relates to the field of electronic commerce, and more particularly to the use of transponder-activated account transactions at point of sale or other locations.
BACKGROUND OF THE INVENTION
• The use of electromagnetically-coupled transducers for commercial transaction processing has become increasingly popular in recent times. The advent of compact, inexpensive electronics, transponder-equipped point of sale equipment, and attendant information processing assets have enabled a variety of vendors to offer account-linked transaction systems. Those systems include, for example, subway or other transportation devices, telephone calling devices, and others such as the SpeedPass™ offered by Mobil Corp. for gasoline point of sale transactions. In that and other systems, a receiver emits electromagnetic signals to a device in proximity to a gasoline pump over radio frequencies (RF), activating an embedded transponder within the transaction device. The transaction device is identified by some sort of identification information, which information is then relayed from the point of sale to an offsite information processing facility. However, these types of distributed systems suffer from more than one disadvantage.
• For one, transactions made according to that technology require that separate offsite computing facilities be accessed, since the transponder in encoded with information identifying the transponder but not the account information necessary to complete the transaction. Processing times and time to completion of transactions are therefore increased, and the expense of linking and maintaining information processing facilities to service the point of sale request is significant. Moreover, the initiation of new accounts to use such wireless vending points requires backend processing facilitates to enter a new user's account to the remote data processing facility, as well as to encode and associate the transponder with particular new accounts. More streamlined, convenient and flexible transaction technology is desirable.
SUMMARY OF THE INVENTION
• The invention overcoming these and other drawbacks in the art relates to a system and method for transponder-activated transactions, generally involving the presentation and sensing of an electromagnetically coupled transponder to an RF-enabled point of sale system. In the practice of the invention, the transponder may be preferably encoded with not merely identifying or serializing information, but also account information which may be used to authorize or record transactions at the instant of sale, so that remote data processing may not be necessary. Users of the transponder of the invention may link the device to more than one type of account, and activate the transponder using Web or other network-enabled interfaces.
BRIEF DESCRIPTION OF THE DRAWINGS
• The invention will described with reference to the accompanying drawings, in which like elements are referenced by like numerals.
• FIG. 1 illustrates an overall transaction architecture according -to one embodiment of the invention.
• FIG. 2 illustrates an overall architecture of the invention according to a second embodiment of the invention.
• FIG. 3 illustrates an activation architecture for the initiation of user accounts according to the invention.
• FIG. 4 illustrates a flowchart of transaction processing according to the invention.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS
• As illustrated inFIG. 1, in a first embodiment of the invention, an overall point of sale architecture includes atransponder102 which communicates via anRF link104 to areceiver106. Thetransponder102 may be or include any of several known electromagnetically coupled devices, generally activated by proximity to an RF-enabled receiving unit, such asreceiver106.Transponder102 may, for instance, contain an electromagnetic coil antenna for inductive coupling toreceiver106, thereby being energized with small but sufficient electric current to activate embedded electronics withintransponder102. Those electronics may include memory such as CMOS memory, logic gates, filters for isolating discrete transmission frequencies and other elements known in the art. In one embodiment,transponder102 may be programmable and able to receive updated programmable instructions viaRF link104, as well as to have electronic memory erased or updated during transactions.Receiver106 may include an electromagnetic antenna to couple withtransponder102, generally within the range of a few feet of the device.
• In the embodiment illustrated inFIG. 1, thereceiver106 is connected to a point of sale (POS)device108 for conducting a commercial or other transaction. For instance, the point ofsale device108 may be or include any of several commercially known electronic cash registers or related transaction processing equipment, such as point of sale terminals manufactured by Sharp Corp. or others. In one embodiment of the invention,transponder102 may be embedded within a personal article for convenience, aesthetic and affinity purposes. In that regard, the invention has been integrated in one implementation within a fully functional watch manufactured by the Swatch Corporation. Embedding in other personal articles, such as key chains, pavers, clothing or other items is also possible.
• In the operation of the invention, a user who has subscribed to the account system of the invention may approach thereceiver106 at the point ofsale device108 to initiate and complete a purchase or other transaction, such as at a restaurant or grocery market checkout line, or other points of sale. In the embodiment illustrated inFIG. 1,transponder102 contains an encodedtransponder ID110, which may for instance be a 5-digit number or other identifying information. In this embodiment,transponder102 may also store an account table112 directly recording account information for the subscribed user of thetransponder102. The account table112 may be or include, for instance, an indication of an account number, balance, limit and other information for a debit account, a cash account, a credit card account, special premises account for internal use such as by employees, or other account information associated with users of the system.
• In the implementation of this embodiment of the invention,receiver106 is configured to receive the account table112 and apply an amount being executed at the point ofsale device108 to the account reflected within the account table112. For instance, a patron who has subscribed to an account according to the system of the invention may approachreceiver106 in a restaurant line and wave a watch or otherarticle containing transponder102 in proximity of thereceiver106. Whentransponder102 comes within range ofreceiver106, transponder.102 may be inductively coupled to the coils of an electromagnetic antenna withinreceiver106 inducing electrical energy withintransponder102, to establish theRF link104 with thereceiver106. Upon activation oftransponder102 and radiation oftransponder ID110 to thereceiver106, thereceiver106 may respond with an acknowledge signal to thetransponder102. The point ofsale device108 may indicate on a display screen or otherwise that a transaction is ready to be commenced. Once the point ofsale device108 generates total amount due for the transaction, thereceiver106 may interrogatetransponder102 to obtain account table information from account table112 for application to the sale.
• For instance, if a patron has purchased a meal in a restaurant line at point ofsale device108, the total purchase price may be validated against available credit, available cash or other account-specified balances within account table112 for completion of the transaction. Conversely, if the amount of the transaction cannot be validated against account table112, the point ofsale device108 may indicate “cash required” or another message that transponder validation or authorization has failed. If the transaction amount is validated,receiver106 enters the transaction amount, recalculates an account balance for storage within account table112 and transmits the revised account table112 information over theRF link104 to thetransponder102. A transaction completion signal may be emitted byreceiver106, which in one embodiment may turn off or decouple thetransponder102 viaRF link104.
• Among other advantages, because thereceiver106 and other transaction elements do not need to resort to offsite transaction processing, conduct of the transaction from initiation through approval and completion are completed quickly, often virtually instantaneously to a subscriber at the point of sale. It may be noted thatreceiver106 and point ofsale device108 may be configured to execute a variety of other types of transactions, such as retail checkouts of books, movies, other media, and other transaction events.
• In terms of new accounts registration as illustrated inFIG. 3, in the invention a network-based activation architecture may be advantageously employed. As shown in the figure, a new user may access aclient work station118 connected viacommunications link120 to aregistration server122. Thecommunications link120 may be, include or access any one or more of, for instance, the Internet, an intranet, a PAN (Personal Area Network), a LAN (Local Area Network), a WAN (Wide Area Network) or a MAN (Metropolitan Area Network), a fame relay connection, an Advanced Intelligent Network (AIN) connection, a synchronous optical network (SONET) connection, a digital T1, T3 or E1 line, Digital Data Service (DDS) connection, DSL (Digital Subscriber Line) connection, an Ethernet connection, an ISDN (Integrated Services Digital Network) line, a dial-up port such as a V.90, V.34 or V.34bis analog modem connection, a cable modem, an ATM (Asynchronous Transfer Mode) connection, or FDDN (Fiber Distributed Data Networks) or CDDI (Copper Distrbuted Data Interface) connections.
• Communications link120 may furthermore be, include or access any one or more of a WAP (Wireless Application Protocol) link, a GPRS (General Packet Radio Service) link, a GSM (Global System for Mobile Communication) link, a CDMA (Code Division Multiple Access) or TDMA (Time Division Multiple Access) link such as a cellular phone channel, a GPS (Global Positioning System) link, CDPD (cellular digital packet data), a Rf (Research in Motion, Limited) duplex paging type device, a Bluetooth radio link, or an IEEE 802.11-based radio frequency link.Communications link120 may yet further be, include or access any one or more of an RS-232 serial connection, an IEEE-1394 (Firewire) connection, an IrDA (infrared) port, a SCSI (Small Computer Serial Interface) connection, a USB (Universal Serial Bus) connection or other wired or wireless, digital or analog interface or connection.
• Theregistration server122 may be or include, for instance, a workstation running the Microsoft Windows™0 NT™ Windows™2000, Unix, Linux, Xenix, IBM AIX, Hewlett-Packard UX, Novell Netware™, sun Microsystems Solaris™, OS/2™, BeOS™, Mach, Apache, OpenStep™ or other operating system or platform.
• Theregistration server122 may communicate withclient workstation118 to receive preassigned information related totransponder102, such astransponder ID110 which may be printed by sticker on a watch or other article housing the device, for entry into adatabase126 withinregistration server122 and the setting up of an account. The account may illustratively include or be more than one type ofaccount124a. . .124n, such as cash accounts, debit accounts, credit card accounts, special purpose vending accounts, telephone card accounts, or others. Theregistration server122 may validate thetransponder ID110, and interrogate a new subscriber atclient work station118 to identify or select which one or more ofaccounts124a. . .124nthe user wishes to associate with thetransponder102.
• For instance, theregistration122 may accept a preexisting credit card number for registration with thetransponder102 and execution of future transactions. Once new account information is established, theregistration server122 may communicate via network connection toreceiver106 to update subscriber registration tables within thedatabase126,receiver106, point ofsale device108 or other associated hardware to authorize transactions at the point of sale. The paperwork, delay, possibility for error and other drawbacks of paper-based back end account registration is thereby avoided.
• A second illustrative embodiment of the invention is shown inFIG. 2, generally involving a processing architecture similar to that ofFIG. 1. In this embodiment, atransponder102 again communicates via RF link104 withreceiver106 to effectuate point of sale or other tractions. However, in the embodiment ofFIG. 2 a portion or all of account table112 or other information stored intransponder102 in the first embodiment may be offloaded to economize on the necessary electronics, power consumption and other properties oftransponder102. In the embodiment illustrated inFIG. 2, the point ofsale device108 is additionally connected to atransaction server116 via communications link114, for the purpose of authorizing in whole or in part transactions presented forpayment using transponder102. Communications link114 may be, include or access communications resources similar to communications link120.
• In this embodiment, part or all of the information of account table112 may be stored in hard disk or other storage oftransaction server116. Transaction initiation begins in the same manner as the embodiment illustrated inFIG. 1, however, after acknowledgments are exchanged between point ofsale device108 andtransponder102 and a transaction is set up, the point ofsale device108 may communicate withtransaction server116 to validate a transaction amount or other information against account information stored in thetransaction server116.
• While this implementation involves additional hardware and communications link114, iftransaction server116 is co-located with the point ofsale device108, such as in a restaurant or retail outlet, communication delays may be minimal. Furthermore if thetransaction server116 is dedicated to processing transactions only at the site of point ofsale device108 or closely grouped facilities, processing burdens may be comparatively modest In another embodiment of the invention,transaction server116 may communicate with remote credit file databases or other information resources before authorizing or completing a transaction initiated over RF link104 atreceiver106, when circumstances may permit some execution delay to be acceptable. Alternatively, in another embodiment of the invention the point ofsale device108 may perform a preliminary authorization for transactions presented at thereceiver106, to collect and temporarily store transactions, for instance over 2 or 3 hour periods, for batch processing remotely viatransaction server116. Since the majority of transactions typically reconcile without difficulty, this implementation permits more-immediate completion while still checking on account validations at frequent intervals.
• Overall transaction processing is illustrated in the flowchart ofFIG. 4. Instep202, processing begins. Instep204, thereceiver106 is presented withtransponder102 within range of electromagnetic coupling, such as inductive coupling. Instep206,transponder102 is activated, for instance by inductive energization of its circuitry. Instep208transponder102 may communicatetransponder ED110, which thereceiver106 acknowledges with an acknowledge signal over RF link104 instep210.
• Instep212, transaction information such as purchase amount is entered at point ofsale device108, for instance by a check out clerk or other attendant. Instep214, transaction table112 or other account information may be interrogated to determine whether account balances or other account parameters permit the pending transaction at the point ofsale device108. If the transaction is not validated, in step216 a “cash required” or other message is signaled at point ofsale device108, and processing proceeds to step224 whole processing ends.
• If the account to be applied to the pending transaction is validated atstep214, instep218, the point ofsale device108 andreceiver106 communicate withtransponder102 to indicate transaction acceptance, and modify information within account table112 if appropriate. Instep220, an end of transaction signal is sent totransponder102 and instep222,transponder102 decouples from thereceiver106. Instep224, processing ends.
• The foregoing description of the system and method for transponder-activated transactions is illustrative, and variations in configuration and implementation will occur to persons skilled in the art. For instance, whiletransponder102 has been described as electromagnetically coupling with thereceiver106, or other types of detection and coupling could be used. For instance, an infrared device, a biometrically enabled or other device may be presented to corresponding detecting apparatus at the point of sale. Similarly,transponder102 may contain or store other types or forms of information other thantransponder D110 and account table112. The scope of the invention is accordingly intended to be limited only by the following claims.

Claims (33)

1-20. (canceled)

21. A transponder-reader payment system comprising:

a transponder system responsive to a Radio Frequency (RF) interrogation signal, the transponder system including a transponder database, the transponder database storing at least a transponder system identifier;

a Radio Frequency Identification (RFID) reader in RF communication with the transponder system, the RFID reader providing an interrogation signal to the transponder system and receiving the transponder system identifier;

a merchant system for receiving the transponder system identifier, the merchant system including a merchant system identifier and a merchant point of interaction device in communication with the RFID reader, the merchant system configured to match the transponder system identifier and the merchant system identifier to a user transaction request forming a merchant transaction request;

an issuer system comprising:

an issuer system server in communication with the merchant point of interaction device for receiving the merchant transaction request; and

an issuer system database including a funding source data file containing a funding source value for satisfying the merchant transaction request and a funding account protocol, the funding source data file associated with the transponder system identifier; and

a primary funding source containing a primary funding source value, the primary funding source in communication with the issuer system server, the primary funding source configured for one of providing value to and receiving value from the funding account data file, the primary funding source associated with the transponder system identifier,

wherein the issuer system retrieves at least a portion of the user transaction request value from the funding source data file and provides at least a portion of the funding source value to the merchant system in accordance with the funding protocol.

22. The transponder-reader system ofclaim 21, further comprising a secondary funding source containing a secondary funding source value, the secondary funding source in communication with the issuer system server, the secondary funding source configured for one of providing value to and receiving value from the funding source data file, the secondary funding source associated with the transponder system identifier.

23. The transponder-reader system ofclaim 21, wherein the funding source data file comprises a preloaded value data file and a reload protocol data file, the preloaded value data file and reload protocol data file associated with the transponder system identifier, the preload value data file storing a predetermined value for use in satisfying a user transaction request.

24. The transponder-reader system ofclaim 23, wherein the primary funding source is associated with the preloaded value data file.

25. The transponder-reader payment system ofclaim 23 wherein the issuer system server retrieves the portion of the funding source value from the primary funding source in accordance with the reload protocol data file.

26. The transponder-reader payment system ofclaim 25, wherein the primary funding source comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

27. The transponder-reader payment system ofclaim 21, wherein the RFID reader receives the transponder system identifier in Track 1/Track 2 format.

28. A transponder-reader payment system comprising:

a transponder system responsive to a Radio Frequency (RF) interrogation signal, the transponder system including a transponder database, the transponder database storing at least a transponder system identifier;

a Radio Frequency Identification (RFID) reader in RF communication with the transponder system, the RFID reader providing an interrogation signal to the transponder system and receiving the transponder system identifier;

a merchant system for receiving the transponder system identifier, the merchant system including a merchant system identifier and a merchant point of interaction device in communication with the RFID reader, the merchant system configured to match the transponder system identifier and the merchant system identifier to a user transaction request forming a merchant transaction request;

an issuer system comprising:

an issuer system server in communication with the merchant point of interaction device for receiving the merchant transaction request; and

an issuer system database including a funding source data file containing a funding source value for satisfying the merchant transaction request and a funding account protocol, the funding source data file associated with the transponder system identifier; and

a primary funding source containing a primary funding source value, the primary funding source in communication with the issuer system server, the primary finding source configured for one of providing value to and receiving value from the funding account data file, the primary funding source associated with the transponder system identifier,

wherein the issuer system retrieves at least a portion of the user transaction request value from the funding source data file and provides at least a portion of the finding source value to the merchant system in accordance with the funding protocol,

wherein further the primary funding source comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

29. A method of transponder-reader payment comprising:

providing a transponder system identifier to a merchant system via radio frequency signal;

matching the transponder system identifier to the merchant system identifier and a user transaction request to form a merchant transaction request, the user transaction request containing a transaction value and a transaction identifying marker;

providing the merchant transaction request to an issuer system server, the issuer system server comprising a funding account; and

retrieving value from at least one of a primary funding source and a secondary funding source and providing the value to the funding account in accordance with a user defined funding protocol.

30. The method ofclaim 29 further comprising retrieving at least a portion of the user transaction value from the funding account and providing the retrieved portion of the user transaction value to a merchant system in accordance with the user defined funding protocol.

31. The method ofclaim 30, wherein the funding account comprises a preloaded value data file, wherein a value substantially equivalent to the retrieved portion of the user transaction value is added to the value in the preloaded value data file according to a preload protocol.

32. The method ofclaim 29, wherein the funding account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

33. The method ofclaim 29, wherein the transponder system identifier is provided to the merchant system in Track 1/Track 2 format.

34. A system for completing a transaction using a transaction device comprising:

a RFID transaction device associated with a transaction device proxy code, the RFID transaction device comprising a transaction device storage for storing the transaction device proxy code;

a merchant system, the merchant system including a merchant system database, and a point of interaction device in communication with the RFID transaction device for transmitting and receiving data from the RFID transaction device in a contactless environment, the point of interaction device in RF communication with the RFID transaction device;

a transaction device account issuer system for maintaining a unique transaction account associated with the RFID transaction device, the transaction account correlated to a unique transaction account identifier, the transaction account for use in completing a transaction request,

wherein the transaction device account issuer system provides the unique transaction account identifier to the transaction device database,

wherein further the RFID transaction device provides the transaction device identifier to the merchant system point of interaction, the merchant system associating the transaction device identifier to the transaction request,

wherein further the merchant system provides at least the transaction device identifier and the transaction request to the issuer system,

wherein further the issuer system correlates the transaction device identifier to the unique transaction account, the issuer system satisfying the transaction request relative to the unique transaction account.

35. The method ofclaim 34, wherein the unique transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

36. The method ofclaim 34, wherein the transponder device proxy code is provided to the point of interaction device in Track 1/Track 2 format.

37. A method for completing a transaction in a contactless environment comprising:

providing a proxy code to a RFID transaction device;

facilitating the providing of the proxy code to a merchant system;

facilitating the providing of the proxy code to a transaction device issuer system, the transaction device issuer system maintaining a transaction device account correlative to the proxy code; and

facilitating the completion of a transaction request correlative to the transaction device account.

38. The method ofclaim 37, wherein the transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

39. The method ofclaim 37, wherein the proxy code is provided to the merchant system in Track 1/Track 2 format.

40. A method of transmitting data for transaction completion comprising:

receiving a proxy transaction device account identifier, wherein the proxy account transaction device identifier includes at least one portion of a transaction device identifier associated with a transaction account;

providing a transaction account identifier in accordance with a portion of the proxy transaction device identifier, the portion of the proxy transaction device identifier corresponding to a portion of the transaction account identifier; and

correlating the transaction account identifier with a transaction account for use in satisfying a transaction.

41. The method ofclaim 40, wherein the transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

42. The method ofclaim 40, wherein the proxy transaction device account identifier is received in Track 1/Track 2 format.

43. A computer implemented service for updating a merchant customer account database over a network for RF payment devices, comprising:

a first database of information having a plurality of merchant customer records;

a remote merchant customer database having a first plurality of customer account records, each of the account records associated with a corresponding recurring billing account record;

a merchant process server for appending a merchant processing request to at least one of the first plurality of customer accounts to produce a merchant processing request data file for seeking approval of a transaction, the merchant process server receiving the transaction from an RF payment device, identifying one of the account records with the RF payment device, correlating the one account record with the corresponding recurring billing account record; and

a process server for receiving the first database of information and the merchant processing request data file, the process server configured to compare the first database of information and the merchant processing request data file to produce a first comparison data file, the first comparison data file comprising a first record including a compilation of the merchant processing requests accepted for processing by the process server for the requested transaction, the first comparison data file further comprising a second record including a compilation of the merchant processing requests rejected for processing by the process server, the process server further configured to update the first database of information in accordance with the merchant processing request data file to include approved transactions from the RF payment device on the corresponding recurring billing record.

44. The service ofclaim 43, wherein the recurring billing record is associated with a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

45. The service ofclaim 43, wherein information received by the merchant process server from the RF payment device that identifies one of the account records with the RF payment device is received in Track 1/Track 2 format.

46. A method of updating a merchant customer transaction account database using a computer network for RF payment devices, comprising:

receiving a first plurality of customer transaction account records, each of the account records being associated with a corresponding recurring billing account record;

storing the first plurality of customer transaction account records on a local database, the local database being maintained by a local process server;

storing the first plurality of customer transaction account records in a remote database, the remote database being accessed through a remote process server;

receiving by a merchant process server the transactions from an RF payment device, identifying one of the account records corresponding with the RF payment device, and correlating the one account record with the corresponding recurring billing account record;

providing a periodic registry file to the remote process server, the periodic registry file comprising an update request to the plurality of customer transaction account records for transactions requesting approval by the merchant system, the process server comparing the periodic registry file to the first plurality of customer transaction account record and updating the first plurality of customer transaction account records according to an order of process steps, the remote process server generating a maintenance file in response to the comparison of the periodic registry file to the first plurality of customer transaction account records;

providing the maintenance file to the local process server, the local process server comparing the maintenance file to the first plurality of customer transaction account records on a local database; and

updating the first plurality of customer transaction account records on a local database in response to the maintenance file to include approved transactions from the RF payment device on the corresponding recurring billing record.

47. The method ofclaim 46 further comprising pre-authorizing the first plurality of customer transaction account records.

48. The method ofclaim 46, wherein the recurrent billing account record is associated with a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

49. A method for facilitating the re-association of an account number associated with a first transaction account to a second transaction account comprising:

providing a second transaction account;

receiving an account number associated with a first transaction account;

associating the account number with the second transaction account;

wherein the account number is a proxy account number associated with a transponder, wherein the proxy account number within a proxy system is configured to associate the proxy account number to more than one transaction account, and wherein the proxy account number is authorized to be used for multiple transactions.

50. The method ofclaim 49 wherein the first transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

51. The method ofclaim 49 wherein the second transaction account comprises a stored value account, charge card account, loyalty account, phone card account, credit card account or debit card account, or combinations thereof.

52. The method ofclaim 49, wherein the account number is received in Track 1/Track 2 format.

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