US20100325041A1 - System and method for encoding information in magnetic stripe format for use in radio frequency identification transactions - Google Patents

Abstract

A transaction device system is associated with a transaction device proxy account identifier, which may be stored in a database on the transaction device system. The proxy transaction device identifier may be stored on the database in any conventional merchant recognizable format. Additionally, the proxy transaction device identifier may be associated with a transaction account identifier for use in completing a transaction. The proxy transaction device identifier may include at least a first portion which corresponds to a portion of the transaction device identifier. The first portion of the proxy transaction device identifier may be segmented into proxy fields where a first segment includes a portion of a transaction account data set, and a second segment has encoded therein an account provider desired information. The proxy account identifier segments are undetectable by receiving systems such that the proxy account identifier emulates a merchant recognizable data transfer format. The account provider system may receive the proxy account identifier and uses the first portion of the transaction device identifier in a predetermined algorithm to reassemble the transaction device identifier for use in transaction completion.

Description

RELATED APPLICATIONS
• This invention is a continuation of, and claims priority to, U.S. patent application Ser. No. 10/810,473, entitled “SYSTEM AND METHOD FOR ENCODING INFORMATION IN MAGNETIC STRIPE FORMAT FOR USE IN RADIO FREQUENCY IDENTIFICATION TRANSACTIONS,” filed on Mar. 26, 2004. The '473 invention is a continuation-in-part of, and claims priority to U.S. Pat. No. 7,239,226, entitled “SYSTEM AND METHOD FOR PAYMENT USING RADIO FREQUENCY IDENTIFICATION IN CONTACT AND CONTACTLESS TRANSACTIONS,” issued on Jul. 3, 2007 (aka U.S. patent application Ser. No. 10/192,488, filed on Jul. 9, 2002), which itself claims priority to U.S. Provisional Patent Application No. 60/304,216, filed Jul. 10, 2001. The '473 invention is also a continuation-in-part of and claims priority to U.S. patent application Ser. No. 10/340,352, entitled “AUTHORIZING PAYMENT SUBSEQUENT TO RF TRANSACTIONS,” filed Jan. 10, 2003, which itself claims priority to U.S. Provisional Patent Application No. 60/396,577, filed Jul. 16, 2002. All of which are incorporated herein by reference.
FIELD OF INVENTION
• This invention generally relates to a system and method for completing a transaction, and more particularly, to completing a transaction using a proxy transaction account identifier which emulates a transaction account number in a merchant recognizable format.
BACKGROUND OF THE INVENTION
• Like barcode and voice data entry, RFID is a contactless information acquisition technology. RFID systems are wireless, and are usually extremely effective in hostile environments where conventional acquisition methods fail. RFID 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, RFID technology has become a primary focus in automated data collection, identification and analysis systems worldwide.
• Of late, companies are increasingly embodying RFID 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 independent 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.
• In the conventional fob systems, the fob is provided a fob identifier. The fob may be activated or powered upon presenting the fob in an interrogation signal provided by a fob reader. Once the transaction device is interrogated, the transponder included in the fob may provide the fob identifier to an authorizing entity who may correlate the fob identifier to a customer account number which is recognizable by a merchant system. That is, the information stored on the traditional fob ordinarily must be translated by an authorizing entity in order for the merchant system to be able to process the transaction request.
• The customer account number may be stored on an authorizing entity database. An authorizing entity server may receive the fob identifier and correlate the fob identifier to a customer account number, which is ordinarily maintained in the authorizing entity's system database. Since the customer account number is typically a conventional credit, debit or loyalty account number, the fob may be presented to complete a transaction whereby the authorizing agent translates the fob identifier to a customer account number and provides the customer account number to the merchant system for processing under business as usual standards. The merchant system ordinarily provides the customer account number to a customer account provider which uses the number to locate the corresponding transaction account to be used to satisfy the customer's transaction request.
• One of the more visible uses of the RFID technology is found in the introduction of Exxon/Mobil's Speedpass® and Shell's EasyPay® 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 or translated into a customer (e.g., user) credit or debit account. In an exemplary processing method, the third-party server seeks authorization for the transaction by passing a transaction request and account data to an authorizing entity. Once authorization is received by the server, clearance is sent to the point of sale device for completion of the transaction. In this way, the conventional transaction processing method involves an indirect path which causes undue overhead due to the use of the third-party server to correlate the fob identification data to a customer account prior to providing the accompanying transaction request to the merchant POS for completion.
• A need exists for a transaction authorization system which allows fob transactions to be authorized while eliminating the cost associated with using third-party servers.
SUMMARY OF THE INVENTION
• Described herein is a system and method for securing a transaction using a proxy transaction account identifier stored in the database of a transaction device. The proxy transaction account identifier may be segmented into multiple portions used to provide to a transaction account provider data corresponding to the a customer transaction account. The customer transaction account may include various data relevant to the account or the accountholder. For example, the customer transaction account data may include such data as the account expiration date, account identifier, account provider routing number, authentication tag, secondary security code (e.g., Personal Identification Number), effective date, and the like as is commonly found. At least one of the multiple portions of the proxy transaction account identifier may have portions of a merchant recognizable customer transaction account data stored therein.
• The portions of the transaction account data included in the proxy transaction account identifier may be encrypted. The account data may be encrypted using a cryptogram generated by the transaction device to which the proxy transaction account identifier is associated. The transaction device may calculate a complete cryptogram using changing values from the transaction device and data received from a point of sale device (POS) linked to a merchant system. Once the transaction device calculates the cryptogram and encrypts the various portions of account data, the encrypted account data and a portion of the cryptogram may then be sent to the transaction account provider as a part of at least one of the multiple portions of the proxy account identifier. In this way, the space requirements for sending the proxy transaction device information is reduced.
• The transaction account provider receives the proxy account identifier and recalculates the cryptogram using the encrypted account identifier data. The account provider may then verify the portion of the cryptogram included in the proxy account identifier, by for example comparing the portion of the cryptogram with the recalculated cryptogram to determine if a match exists. The account provider may decrypt the portions of the proxy account identifier and locate the corresponding account using the portions of the transaction account data. For example, the portions of the transaction account data may be subjected to an account provider defined algorithm used to generate the complete transaction account data from the portions of the account data provided in the proxy account identifier.
• The proxy account identifier may take the form of any suitable data transmission which is recognizable by the merchant system. That is, the merchant system does not detect that the proxy account identifier includes only partial account information. This is true because the invention includes the partial account information in any traditional account information format. For example, if the merchant system is configured to receive information in magnetic stripe format, the proxy account identifier is provided to the merchant system in magnetic stripe format. As such, the present invention is more advantageous than conventional fob devices in that the proxy transaction account identifier does not have to be sent to a third-party authorizing entity for correlation to a customer number formatted in magnetic stripe which may then be sent to a merchant system for processing. The present invention eliminates the cost associated with involving a third-party server to translate the account fob data into a merchant recognizable format (e.g., magnetic stripe).
• In addition, the transaction device according to the present invention may include a transponder system for using RFID technology to initiate and complete financial transactions. The transaction system described herein may include a RFID reader operable to provide a RF interrogation signal for powering a transponder system, receiving a transponder system RF signal, and providing proxy account identifier account data relative to the transponder system RF signal. The transponder-reader payment system may include a RFID protocol/sequence controller in electrical communication with one or more interrogators for providing an interrogation signal to a transponder, and a RFID authentication circuit for authenticating the signal received from the transponder. The transponder-reader payment system may further include a fob including one or more transponders (e.g., modules) responsive to the interrogation signal and for providing an authentication signal for verifying that the transponder and/or the RFID reader are authorized to operate within the transponder-reader payment system. In this way, the transponder may be responsive to multiple interrogation signals provided at different frequencies. Further, the transponder may include a USB or serial interface for use with a computer network or with the RFID reader.
• The RFID system and method according to the present invention may include a RFID-ready terminal and a transponder which may be embodied in a transaction device taking any suitable form capable of being presented for interrogation, such as, a fob, tag, card or any other form factor (e.g., wristwatch, keychain, cell phone, etc.), or the like. In that regard, although the transaction device is described herein as embodied in a fob, the invention is not so limited.
• The system may further include a RFID reader configured to send a standing RFID recognition signal which may be transmitted from the RFID reader via radio frequency (or electromagnetic) propagation. 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.
• 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
• 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:
• FIG. 1 illustrates an exemplary RFID-based system in accordance with the present invention, wherein exemplary components used for fob transaction completion are depicted;
• FIG. 2 is a schematic illustration of an exemplary transponder system in accordance with the present invention;
• FIG. 3 is a schematic illustration of an exemplary RFID reader in accordance with the present invention;
• FIG. 4 is an exemplary flow diagram of an exemplary authentication process in accordance with the present invention;
• FIG. 5 is an exemplary flow diagram of an exemplary decision process for a protocol/sequence controller in accordance with the present invention;
• FIG. 6 is a flow diagram of an exemplary payment/transaction process in accordance with the present invention;
• FIG. 7 illustrates an exemplary layout of data fields for encoding data in traditionalmagnetic stripe track1;
• FIG. 8 illustrates an exemplary layout of data fields for encoding data in traditionalmagnetic stripe track2;
• FIG. 9 illustrates an exemplary layout of proxy fields for encoding data inproxy track1 format;
• FIG. 10 illustrates an exemplary layout of proxy fields for encoding data inproxy track2 format;
• FIG. Ills an illustration of an exemplary proxy transaction account identifier transaction, in accordance with an exemplary embodiment of the present invention;
• FIG. 12 is an example of a conventionalmagnetic stripe track2 layout for MasterCard; and
• FIG. 13 is an example of aproxy track2 layout for MasterCard in accordance with the present invention.
DETAILED DESCRIPTION
• 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 or platforms such as C, C++, Java, JavaCard applets, MULTOS Executive Language, 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.
• 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).
• 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®, Blueberry®), 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.
• FIG. 1 illustrates an exemplaryRFID transaction system100 in accordance with the present invention, wherein exemplary components for use in completing a fob transaction are depicted. In general, the operation ofsystem100 may begin when fob transponder system102 (e.g., fob102) is presented for payment, and is interrogated byRFID reader104 or, alternatively,interface134.Fob102 andRFID reader104 may then engage in mutual authentication after which thetransponder102 may provide the transponder identification and/or account identifier to theRFID reader104 which may further provide the information to themerchant system130POS device110.
• System100 may include afob102 having atransponder114 and aRFID reader104 in RF communication withfob102. Although the present invention is described with respect to afob102, the invention is not to be so limited. Indeed,system100 may include any transaction device configured to communicate data for transaction completion. In one exemplary embodiment the transaction device may be configured to communicate with aRFID reader104 via RF communication. Typical devices may include, for example, a key ring, tag, card, cell phone, wristwatch or any such form capable of being presented for interrogation.
• TheRFID reader104 may be configured to communicate using a RFIDinternal antenna106. Alternatively,RFID reader104 may include anexternal antenna108 for communications withfob102, where the external antenna may be made remote to theRFID reader104 using a suitable cable and/ordata link120.RFID reader104 may be further in communication with amerchant system130 via adata link122. Thesystem100 may include a transaction completion system including a point of interaction device such as, for example, a merchant point of sale (POS)device110 or a computer interface (e.g., user interface)134. In one exemplary embodiment the transaction completion system may include amerchant system130 including thePOS device110 in communication with a RFID reader104 (via data link122). As described more fully below, the transaction completion system may include theuser interface134 connected to anetwork136 and to the transponder via aUSB connector132.
• 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 data relative to fob102. In this regard, thePOS device110 may be any point of interaction device enabling the user to complete a transaction using afob102.POS device110 may be in further communication with a customer interface118 (via data link128) for entering at least a customer identity verification information. In addition,POS device110 may be in communication with a merchant host network112 (via data link124) for processing any transaction request. In this arrangement, information provided byRFID reader104 is provided to thePOS device110 ofmerchant system130 viadata link122. ThePOS device110 may receive the information (and alternatively may receive any identity verifying information fromcustomer interface118 via data link128) and provide the information tohost system112 for processing.
• A variety of conventional communications media and protocols may be used fordata links120,122,124, and128. For example,data links120,122,124, and128 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, themerchant system130 including thePOS device110 andhost network112 may reside on a local area network which interfaces to a remote network (not shown) for remote authorization of an intended transaction. Themerchant system130 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.
• 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 financial 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, Visa and/or MasterCard 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.
• 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. 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”. Additionally, the first five to seven digits may be reserved for processing purposes and identify the issuing bank, card type and etc. In a typical example, the first digit of the account number may be a common character which may correspond to a particular account provider. For example, account numbers beginning with the common character 4 may correspond to transaction accounts provided by VISA; account numbers beginning with the number 5 may correspond to transaction accounts provided by MASTERCARD; account numbers beginning with thecommon character 3 may correspond to transaction accounts provided by AMERICAN EXPRESS. In this example, the last sixteenth digit, sometimes called the “Longitudinal Redundancy Check” character, is used as a sum check for the sixteen-digit number. The intermediary eight-to-ten digits are used to uniquely identify the customer.
• The account number may be stored asTrack1 andTrack2 data as defined in ISO/IEC 7813, and further may be made unique tofob102. 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 infob102 inside adatabase214, as described more fully below.Database214 may be configured to store multiple account numbers issued to thefob102 user by the same or different account providing institutions. Where the account data corresponds to a loyalty or rewards account, thedatabase214 may be configured to store the attendant loyalty or rewards points data.
• FIG. 2 illustrates a block diagram of the many functional blocks of anexemplary fob102 in accordance with the present invention.Fob102 may be aRFID fob102 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, thefob102 may be a RFID fob which may be presented for facilitating payment for goods and/or services.
• Fob102 may include anantenna202 for receiving an interrogation signal fromRFID reader104 via antenna106 (or alternatively, via external antenna108).Fob antenna202 may be in communication with atransponder114. In one exemplary embodiment,transponder114 may be a 13.56 MHz transponder compliant with the ISO/IEC 14443 standard, andantenna202 may be of the 13 MHz variety. Thetransponder114 may be in communication with a transponder compatible modulator/demodulator206 configured to receive the signal fromtransponder114 and configured to modulate the signal into a format readable by any later connected circuitry. Further, modulator/demodulator206 may be configured to format (e.g., demodulate) a signal received from the later connected circuitry in a format compatible withtransponder114 for transmitting toRFID reader104 viaantenna202. For example, wheretransponder114 is of the 13.56 MHz variety, modulator/demodulator206 may be ISO/IEC 14443-2 compliant.
• Modulator/demodulator206 may be coupled to a protocol/sequence controller208 for facilitating control of the authentication of the signal provided byRFID reader104, and for facilitating control of the sending of thefob102 account number. In this regard, protocol/sequence controller208 may be any suitable digital or logic driven circuitry capable of facilitating determination of the sequence of operation for thefob102 inner-circuitry. For example, protocol/sequence controller208 may be configured to determine whether the signal provided by theRFID reader104 is authenticated, and thereby providing to theRFID reader104 the account number stored onfob102.
• Protocol/sequence controller208 may be further in communication withauthentication circuitry210 for facilitating authentication of the signal provided byRFID reader104. Authentication circuitry may be further in communication with a non-volatilesecure memory database212.Secure memory database212 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.Database212 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.Database212 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.
• The data may be used by protocol/sequence controller208 for data analysis and used for management and control purposes, as well as security purposes. Authentication circuitry may authenticate the signal provided byRFID reader104 by association of the RFID signal to authentication keys stored ondatabase212. Encryption circuitry may use keys stored ondatabase212 to perform encryption and/or decryption of signals sent to or from theRFID reader104.
• In addition, protocol/sequence controller208 may be in communication with adatabase214 for storing at least afob102 account data, and aunique fob102 identification code. Protocol/sequence controller208 may be configured to retrieve the account number fromdatabase214 as desired.Database214 may be of the same configuration asdatabase212 described above. The fob account data and/or unique fob identification code stored ondatabase214 may be encrypted prior to storage. Thus, where protocol/sequence controller208 retrieves the account data, and or unique fob identification code fromdatabase214, the account number may be encrypted when being provided toRFID reader104. Further, the data stored ondatabase214 may include, for example, an unencryptedunique fob102 identification code, a user identification,Track1 and2 data, as well as specific application applets.
• Fob102 may be configured to respond to multiple interrogation frequency transmissions provided byRFID reader104. That is, as described more fully below,RFID reader104 may provide more than one RF interrogation signal. In this case,fob102 may be configured to respond to the multiple frequencies by including infob102 one or more additional RF signal receiving/transmittingunits226. RF signal receiving/transmittingunit226 may include anantenna218 andtransponder220 where theantenna218 andtransponder220 are compatible with at least one of the additional RF signals provided byRFID reader104. For example, in one exemplary embodiment,fob102 may include a 134KHz antenna218 configured to communicate with a 134KHz transponder220. In this exemplary configuration, an ISO/IEC 14443-2 compliant modulator/demodulator may not be required. Instead, the 134 KHz transponder may be configured to communicate directly with the protocol/sequence controller208 for transmission and receipt of authentication and account number signals as described above.
• In another embodiment,fob102 may further include a universal serial bus (USB)connector132 for interfacingfob102 to auser interface134.User interface134 may be further in communication with aPOS device110 via anetwork136.Network136 may be the Internet, an intranet, or the like as is described above with respect tonetwork112. Further, theuser interface134 may be similar in construction to any conventional input devices and/or computing systems aforementioned for permitting the system user to interact with the system. In one exemplary embodiment,fob102 may be configured to facilitate online Internet payments. AUSB converter222 may be in communication with aUSB connector232 for facilitating the transfer of information between the modulator/demodulator206 andUSB connector132. Alternatively,USB converter222 may be in communication with protocol/sequence controller208 to facilitate the transfer of information between protocol/sequence controller208 andUSB connector132.
• Wherefob102 includes aUSB connector132,fob102 may be in communication with, for example, a USB port onuser interface134. The information retrieved fromfob102 may be compatible with credit card and/or smart card technology enabling usage of interactive applications on the Internet. No RFID reader may be required in this embodiment since the connection toPOS device110 may be made using a USB port onuser interface134 and anetwork136.
• Fob102 may include means for enabling activation of the fob by the user. In one exemplary embodiment, aswitch230 which may be operated by the user of thefob102. Theswitch230 onfob102 may be used to selectively or inclusively activate thefob102 for particular uses. In this context, the term “selectively” may mean that theswitch230 enables the user to place thefob102 in a particular operational mode. For example, the user may place thefob102 in a mode for enabling purchase of a good or of a service using a selected account number. Alternatively, the fob may be placed in a mode as such that the fob account number is provided by USB port132 (or serial port) only and thefob transponder114 is disabled. In addition, the term “inclusively” may mean that thefob102 is placed in an operational mode permitting thefob102 to be responsive to the RF interrogation and interrogation via theUSB connector132. In one particular embodiment, theswitch230 may remain in an OFF position ensuring that one or more applications or accounts associated with thefob102 are non-reactive to any commands issued byRFID reader104. As used herein, the OFF position may be termed the “normal” position of theactivation switch230, although other normal positions are contemplated.
• In another exemplary embodiment, when theswitch230 is moved from the OFF position, thefob102 may be deemed activated by the user. That is, theswitch230 may activate internal circuitry infob102 for permitting the fob to be responsive to RF signals (e.g., commands from RFID reader104). In this way, switch230 may facilitate control of the active and inactive states of thefob102. Such control increases the system security by preventing inadvertent or illegal use of thefob102.
• In one exemplary embodiment, switch230 may be a simple mechanical device in communication with circuitry which may electrically prevent the fob from being powered by a RFID reader. That is, whenswitch230 is in its normal position, switch230 may provide a short to thefob102 internal circuitry, preventingfob102 from being responsive to interrogation by RF or via theUSB connector230. In this arrangement, theswitch230 may be, for example, a “normally closed” (NC) configured switch, which may be electrically connected to theantenna202 at the interface of theantenna202 and thetransponder114. Theswitch230 may be depressed, which may open theswitch230 fully activating theantenna202.
• In yet another exemplary embodiment, thefob102 may include a biometric sensor and biometric membrane configured to operate asswitch230 and activate thefob102 when provided biometric signal from thefob102 user. Such biometric signal may be the digital reading of a fingerprint, thumbprint, or the like. Typically, where biometric circuitry is used, the biometric circuitry may be powered by an internal voltage source (e.g., battery). In this case, the switch may not be a simple mechanical device, but a switch which is powered. In yet another exemplary embodiment, switch230 may be battery powered though no biometric circuitry is present in thefob102.
• In yet another embodiment, theswitch230 may be a logic switch. Whereswitch230 is a logic switch theswitch230 control software may be read from thesequence controller208 to selectively control the activation of thevarious fob102 components.
• FIG. 3 illustrates an exemplary block diagram of aRFID reader104 in accordance with an exemplary embodiment of the present invention.RFID reader104 includes, for example, anantenna106 coupled to aRF module302, which is further coupled to acontrol module304. In addition,RFID reader104 may include anantenna108 positioned remotely from theRFID reader104 and coupled toRFID reader104 via asuitable cable120, or other wire or wireless connection.
• RF module302 andantenna106 may be suitably configured to facilitate communication withfob102. Wherefob102 is formatted to receive a signal at a particular RF frequency,RF module302 may be configured to provide an interrogation signal at that same frequency. For example, in one exemplary embodiment,fob102 may be configured to respond to an interrogation signal of about 13.56 MHz. In this case,RFID antenna106 may be 13 MHz and may be configured to transmit an interrogation signal of about 13.56 MHz. That is,fob102 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. TheRFID reader104 may include two receivers which may operate using the 134 kHz frequency, the 13.56 MHz frequency or both. When thereader104 is operating at 134 kHz frequency, only operation with the 134 kHz module on thefob102 may be possible. When thereader104 is operating at the 13.56 MHz frequency, only operation with the 13.56 MHz module on thefob102 may be possible. Where thereader104 supports both a 134 kHz frequency and a 13.56 MHz RF module, thefob102 may receive both signals from thereader104. In this case, thefob102 may be configured to prioritize selection of the one or the other frequency and reject the remaining frequency. Alternatively, thereader104 may receive signals at both frequencies from the fob upon interrogation. In this case, thereader104 may be configured to prioritize selection of one or the other frequency and reject the remaining frequency.
• Further, protocol/sequence controller314 may include an optional feedback function for notifying the user of the status of a particular transaction. For example, the optional feedback may be in the form of an LED, LED screen and/or other visual display which is configured to light up or display a static, scrolling, flashing and/or other message and/or signal to inform thefob102 user that the transaction is initiated (e.g., fob is being interrogated), the fob is valid (e.g., fob is authenticated), transaction is being processed, (e.g., fob account number is being read by RFID reader) and/or the transaction is accepted or denied (e.g., transaction approved or disapproved). Such an optional feedback may or may not be accompanied by an audible indicator (or may present the audible indicator singly) for informing thefob102 user of the transaction status. The audible feedback may be a simple tone, multiple tones, musical indicator, and/or voice indicator configured to signify when thefob102 is being interrogated, the transaction status, or the like.
• RFID antenna106 may be in communication with atransponder306 for transmitting an interrogation signal and receiving at least one of an authentication request signal and/or an account data fromfob102.Transponder306 may be of similar description astransponder114 ofFIG. 2. In particular,transponder306 may be configured to send and/or receive RF signals in a format compatible withantenna202 in similar manner as was described with respect tofob transponder114. For example, wheretransponder306 is 13.56 MHz RF ratedantenna202 may be 13.56 MHz compatible. Similarly, wheretransponder306 is ISO/IEC 14443 rated,antenna106 may be ISO/IEC 14443 compatible.
• RF module302 may include, for example,transponder306 in communication withauthentication circuitry308 which may be in communication with asecure database310.Authentication circuitry308 anddatabase310 may be of similar description and operation as described with respect toauthentication circuitry210 andsecure memory database214 ofFIG. 2. For example,database310 may store data corresponding to thefob102 which are authorized to transact business oversystem100.Database310 may additionally storeRFID reader104 identifying information for providing to fob102 for use in authenticating whetherRFID reader104 is authorized to be provided the fob account number stored onfob database214.
• Authentication circuitry308 may be of similar description and operation asauthentication circuitry210. That is,authentication circuitry308 may be configured to authenticate the signal provided byfob102 in similar manner thatauthentication circuitry210 may be configured to authenticate the signal provided byRFID reader104. As is described more fully below,fob102 andRFID reader104 engage in mutual authentication. In this context, “mutual authentication” may mean that operation of thesystem100 may not take place untilfob102 authenticates the signal fromRFID reader104, andRFID reader104 authenticates the signal fromfob102.
• 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 theRFID reader104 authenticating thefob102, although similar steps may be followed in the instance that fob102 authenticatesRFID reader104.
• As noted,database214 may store security keys for encrypting or decrypting signals received fromRFID reader104. In an exemplary authentication process, whereRFID reader104 is authenticatingfob102,RFID reader104 may provide an interrogation signal to fob102 (step402). The interrogation signal may include a random code generated by the RFIDreader authentication circuit308, which is provided to thefob102 and which is encrypted using an unique encryption key corresponding to thefob102 unique identification code. For example, the protocol/sequence controller314 may provide a command to activate theauthentication circuitry308.Authentication circuitry308 may provide from database310 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 theRFID reader104 and thefob102. The authentication code may be provided to thefob102 via theRFID RF interface306 and antenna106 (or alternatively antenna108).
• Fob102 receives the interrogation signal (step404). The interrogation signal including the authorization code may be received at theRF interface114 viaantenna202. Once thefob102 is activated, the interrogation signal including the authorization code may be provided to the modulator/demodulator circuit206 where the signal may be demodulated prior to providing the signal to protocol/sequence controller208. Protocol/sequence controller208 may recognize the interrogation signal as a request for authentication of thefob102, and provide the authentication code toauthentication circuit210. Thefob102 may then encrypt the authentication code (step406). In particular, encryption may be done byauthentication circuit210, which may receive the authentication code and encrypt the code prior to providing the encrypted authentication code to protocol/sequence controller208.Fob102 may then provide the encrypted authentication code to the RFID reader104 (step408). That is, the encrypted authentication code may be provided to theRFID reader104 via modulator/demodulator circuit206, RF interface114 (e.g., transponder114) andantenna202.
• RFID reader104 may then receive the encrypted authentication code and decryption it (step410). That is, the encrypted authentication code may be received atantenna106 andRF interface306 and may be provided toauthentication circuit308.Authentication circuit308 may be provided a security authentication key (e.g., transponder system decryption key) fromdatabase310. 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 thefob102 unique identification code. For example, the encrypted authentication code may be provided along with theunique fob102 identification code. The authentication circuit may receive thefob102 unique identification code and retrieve from the database310 a transponder system decryption key correlative to theunique fob102 identification code for use in decrypting the encrypted authentication code.
• Once the authentication code is decrypted, the decrypted authentication code is compared to the authentication code provided by theRFID reader104 at step402 (step412) to verify its authenticity. If the decrypted authorization code is not readable (e.g., recognizable) by theauthentication circuit308, thefob102 is deemed to be unauthorized or not authenticated (e.g., unverified) (step418) and the operation ofsystem100 is terminated (step420). Contrarily, if the decrypted authorization code is recognizable (e.g., verified) by thefob102, the decrypted authorization code is deemed to be authenticated and thefob102 is considered authenticated (e.g., verified) (step414), and the transaction is allowed to proceed (step416). In one particular embodiment, the proceeding transaction may mean that thefob102 may authenticate theRFID reader104, although, it should be apparent that theRFID reader104 may authenticate thefob102 prior to thefob102 authenticating theRFID reader104.
• It should be noted that in an exemplary verification process, theauthorization circuit308 may determine whether the unlocked authorization code is identical to the authorization code provided instep402. If the codes are not identical then thefob102 is not authorized to accesssystem100. Although, the verification process is described with respect to identicality, identicality is not required. For example,authentication circuit308 may verify the decrypted code through any protocol, steps, or process for determining whether the decrypted code corresponds to an authorizedfob102.
• Authentication circuitry308 may additionally be in communication with a protocol/sequence controller314 of similar operation and description as protocol/sequence controller208 ofFIG. 2. That is, protocol/sequence device controller314 may be configured to determine the order of operation of theRFID reader104 components. For example,FIG. 5 illustrates and exemplary decision process under which protocol/sequence controller314 may operate. Protocol/sequence controller314 may command the different components ofRFID reader104 based on whether afob102 is present (step502). For example, if afob102 is not present, then protocol/sequence controller314 may command theRFID reader104 to provide an uninterrupted interrogation signal (step504). That is, the protocol/sequence controller may command theauthentication circuit308 to provide an uninterrupted interrogation signal until the presence of afob102 is realized. If afob102 is present, the protocol/sequence controller314 may command theRFID reader104 to authenticate the fob102 (step506).
• As noted above, authentication may mean that the protocol/sequence controller314 may command theauthentication circuit308 to providefob102 with an authorization code. If a response is received fromfob102, protocol/sequence controller may determine if the response is a response to theRFID reader104 provided authentication code, or if the response is a signal requiring authentication (step508). If the signal requires authentication, then the protocol/sequence controller314 may activate the authentication circuit as described above (step506). On the other hand, if thefob102 signal is a response to the provided authentication code, then the protocol/sequence controller314 may command theRFID reader104 to retrieve the appropriate security key for enabling recognition of the signal (step510). That is, the protocol/sequence controller314 may command theauthentication circuit308 to retrieve from database310 a security key (e.g., transponder system decryption key), unlock the signal, and compare the signal to the signal provided by theRFID reader104 in the authentication process (e.g., step506). If the signal is recognized, the protocol/sequence controller314 may determine that thefob102 is authorized to access thesystem100. If the signal is not recognized, then the fob is considered not authorized. In which case, the protocol/sequence controller314 may command the RFID controller to interrogate for authorized fobs (step504).
• Once the protocol/sequence controller determines that thefob102 is authorized (step512), the protocol/sequence controller314 may seek to determine if additional signals are being sent by fob102 (step514). If no additional signal is provided byfob102, then the protocol/sequence controller314 may provide all the components ofRFID reader104 to remain idle until such time as a signal is provided (step516). Contrarily, where anadditional fob102 signal is provided, the protocol/sequence controller314 may determine if thefob102 is requesting access to the merchant point of sale terminal110 (e.g., POS device) or if thefob102 is attempting to interrogate theRFID reader104 for return (e.g., mutual) authorization (step518). Where thefob102 is requesting access to a merchant point ofsale terminal110, the protocol/sequence controller314 may command the RFID reader to open communications with the point of sale terminal110 (step524). In particular, the protocol/sequence controller may command the point of saleterminal communications interface312 to become active, permitting transfer of data between theRFID reader104 and the merchant point ofsale terminal110.
• On the other hand, if the protocol/sequence controller determines that thefob102 signal is a mutual interrogation signal, then the protocol/sequence controller may command theRFID reader104 to encrypt the signal (step520). The protocol/sequence controller314 may command theencryption authentication circuit318 to retrieve fromdatabase320 the appropriate encryption key in response to thefob102 mutual interrogation signal. The protocol/sequence controller314 may then command theRFID reader104 to provide the encrypted mutual interrogation signal to the fob102 (step522). The protocol/sequence controller314 may command theauthentication circuit318 to provide an encrypted mutual interrogation signal for thefob102 to mutually authenticate.Fob102 may then receive the encrypted mutual interrogation signal and retrieve from authentication circuitry212 a RFID reader decryption key.
• Although an exemplary decision process of protocol/sequence controller314 is described, it should be understood that a similar decision process may be undertaken by protocol/sequence controller208 in controlling the components offob102. Indeed, as described above, protocol/sequence controller314 may have similar operation and design as protocol/sequence controller208. In addition, to the above, protocol/sequence controllers208 and314 may incorporate in the decision process appropriate commands for enabling USB interfaces222 and316, when the corresponding device is so connected.
• Encryption/decryption component318 may be further in communication with a secureaccount number database320 which stores the security keys necessary for decrypting the encrypted fob account number. Upon appropriate request from protocol/sequence controller314, encryption/decryption component (e.g., circuitry318) may retrieve the appropriate security key, decrypt the fob account number and forward the decrypted account number toprotocol sequence controller314 in any format readable by any later connectedPOS device110. 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 controller314 may forward the account number toPOS device110 via acommunications interface312 and data link122, as best shown inFIG. 1.POS device110 may receive the decrypted account number and forward the magnetic stripe formatted account number to amerchant network112 for processing under the merchant's business as usual standard. In this way, the present invention eliminates the need of a third-party server. Further, where thePOS device110 receives a response from network112 (e.g., transaction authorized or denied), protocol/sequence controller314 may provide the network response to theRF module302 for optically and/or audibly communicating the response to thefob102 user.
• RFID reader104 may additionally include aUSB interface316, in communication with the protocol/sequence controller314. In one embodiment, the USB interface may be a RS22 serial data interface. Alternatively, theRFID reader104 may include a serial interface such as, for example, a RS232 interface in communication with the protocol/sequence controller314. TheUSB connector316 may be in communication with a personalization system (not shown) for initializingRFID reader104 tosystem100 application parameters. That is, prior to operation ofsystem100,RFID reader104 may be in communication with a personalization system for populatingdatabase310 with a listing of security keys belonging to authorizedfobs102, and for populatingdatabase320 with the security keys to decrypt thefob102 account numbers placing the account numbers in ISO/IEC 7813 format. In this way,RFID reader104 may be populated with a unique identifier (e.g., serial number) which may be used byfob authentication circuitry210 to determine ifRFID reader104 is authorized to receive afob102 encrypted account number.
• FIG. 6 illustrates an exemplary flow diagram for the operation ofsystem100, in accordance with the present invention. The operation may be understood with reference toFIG. 1, which depicts the elements ofsystem100 which may be used in an exemplary transaction. The process is initiated when a customer desires to present afob102 for payment (step602). Upon presentation of thefob102, the merchant initiates the RF payment procedure via an RFID reader104 (step604). In particular, the RFID reader sends out an interrogation signal to scan for the presence of fob102 (step606). The RF signal may be provided via theRFID reader antenna106 or optionally via anexternal antenna108. The customer then may present thefob102 for payment (step608) and thefob102 is activated by the RF interrogation signal provided.
• Thefob102 and theRFID reader104 may then engage in mutual authentication (step610). Where the mutual authentication is unsuccessful (step612), an error message may be provided to the customer via the RFID optical and/or audible indicator (step614) and the transaction may be aborted (step616). Where the mutual authentication is successful (step612), theRFID reader104 may provide the customer with an appropriate optical and/or audible message (e.g., “transaction processing” or “wait”) (step618). The fob protocol/sequence controller208 may then retrieve fromdatabase214 an encrypted fob account number and provide the encrypted account number to the RFID reader104 (step620).
• The account number may then be provided to themerchant system130 for processing. In one exemplary embodiment, theRFID reader104 may decrypt the account number and convert the account number into magnetic stripe (ISO/IEC 7813) format (step622) prior to providing the account number to the merchant system130 (step628). In particular, the account number may be provided to thePOS110 device for transmission to themerchant network112 for processing under known business transaction standards. ThePOS device110 may then send an optical and/or audible transaction status message to the RFID reader104 (step630) for communication to the customer (step632).
• In another exemplary embodiment, thefob102 may provide the account number to the merchant system130 (step624) in magnetic stripe format, so that thereader104 does not need to convert the account number to magnetic stripe format. In this embodiment, the account number may or may not be encrypted prior to providing the account number to the merchant system for processing.
• One key concern with providing an unencrypted account number to themerchant system130 is that the unencrypted account number may be intercepted and later used to complete fraudulent transactions. As such, the present invention employs a proxy account number (e.g., proxy account identifier), which is provided to themerchant system130 for transaction processing under the merchant business as usual standards (or with minimal changes or customizations). The proxy account identifier according to the present invention may be in similar format as is the account number so that themerchant system130 is unaware that it is receiving proxy data. For example, if the account number is typically provided to themerchant system130 in magnetic stripe format, then the proxy account identifier may also be in magnetic stripe format. It should be noted that the magnetic stripe format is discussed herein by way of example, and the present invention contemplates that the account number and the proxy account identifier may take any form recognizable by themerchant system130.
• As noted, the account number may ordinarily contain several portions reserved for predetermined information. For example, where the account number is in magnetic stripe format, the account number portions are governed by the International Standards Organization ISO/IEC 7811, et al. standard, which are hereby incorporated by reference. The standard requires the magnetic stripe information to be encoded in three “tracks,” i.e.,track1,track2, andtrack3.
• Data stored intrack1 is typically used to verify the user's identity.Track1 may be reserved for encoding the transaction account identifier, the name of the account holder, and at least the expiration date of the transaction account or the transaction device. The information encoded intrack1 may be alpha-numeric and may be encoded at about 7 Bits/Character.FIG. 7 illustrates an exemplary layout of the data stored intrack1, whereintrack1 is segmented into several distinct predetermined portions (e.g., “fields”) for encoding the various account identifying information. The following table may be useful for determining the field definitions of the information provided.

• TABLE 1
  Table of Field Codes forTrack 1

  	SS = Start Sentinel “%”
  	FC = Format Code
  	PAN = Primary Acct. # (19 digits max)
  	FS = Field Separator “{circumflex over ( )}”
  	Name = 26 alphanumeric characters max.
  	Additional Data = Expiration Date, offset, encrypted PIN, etc.
  	ES = End Sentinel “?”
  	LRC = Longitudinal Redundancy Check

• Track2 is the track most commonly used by the American Banking Association associated banking institutions.Track2 is typically reserved for a duplicate version of the transaction account identifier and the expiration date of the transaction account or the transaction device stored intrack1. In addition,track2 may include an encrypted Personal Identification Code, and other discretionary data. However, the data intrack2 is encoded at a lower Bit per Character density than the data encoded intrack1. The data intrack2 may be numeric only and may be encoded at about 5 Bits/Character. The lower density ratio intrack2 is designed to ensure compatibility with older technology readers and to provide redundancy when reading with newer technology readers.FIG. 8 illustrates an exemplary layout of the data stored intrack2, whereintrack2 is segmented into several distinct predetermined portions for encoding the various account identifying information. As shown, the following table may be useful for determining the definitions of the information provided.

• TABLE 2
  Table of Field Codes forTrack 2

  	SS = Start Sentinel “%”
  	SS = Start Sentinel “;”
  	PAN = Primary Acct. # (19 digits max)
  	FS = Field Separator “=”
  	Additional Data = Expiration Date, offset, encrypted PIN, etc.
  	ES = End Sentinel “?”
  	LRC = Longitudinal Redundancy Check

• Track3 is of similar description asTrack2. With the International Standards Organization adoption of standard ISO/IEC 4909,track3 of the magnetic stripe format was no longer used by the banking industry. However, other transaction devices including a magnetic stripe, such as drivers licenses,use track3, which may include both numeric only and alpha numeric characters.Track3 is unique in thattrack3 was intended to have data read and WRITTEN on it. Cardholders would have account information UPDATED right on the magnetic stripe. Unfortunately,track3 is almost an orphaned standard, since most readers currently in operation are not configured to write data onto a magnetic stripe. The original design oftrack3 was to control off-line ATM transactions by recording transaction data for later reference by the banking institution. But since ATMs are now on-line, the usage oftrack3 has been drastically reduced.
• The most common technique used to encode data in magnetic stripe format is known as Aiken Biphase, or ‘two-frequency coherent-phase encoding.’ The American National Standards Institute (ANSI) and the International Standards Organization (ISO) have chosen two standards to guide the encoding process. The ISO encoding protocol specifies that each oftracks1,2 and3 must begin and end with a length of all Zero bits, called CLOCKING BITS. These are used to synch the self-clocking feature of bi-phase decoding. In addition, most transaction devices which use magnetic stripe encoding protocol use either the ANSI/ISO ALPHA Data format or the ANSI/ISO BCD Data format. For example,track1 is typically encoded in ANSI/ISO ALPHA Data format which is a 7 bit, 6 data bits+1 parity bit (odd) format, where the data is read least significant bit first. The ANSI/ISO ALPHA format character set contains 64 characters, 43 alphanumeric, 3 framing/field characters and 18 control/special characters. On the other hand, tracks2 and3 are typically encoded in ANSI/ISO BCD Data format, which is a 5 bit, 4 data bits+1 parity bit(odd) format. The character set for the ANSI/ISO BCD Data format character set contains 16 characters, 10 alphanumeric, 3 framing/field characters and 3 control/special characters.
• The present invention takes advantage of the traditional encoding formats in the generation of the proxy transaction account identifier. In general, the proxy transaction account identifier is formatted using similar formatting as is used by the account provider such that the proxy account identifier emulates the account provider's preferred account identifier format. In the exemplary embodiment described herein, the proxy account identifier may be formatted using the encoding protocol and standards discussed above. The proxy account identifier may be encoded into “proxy tracks”1,2 and3 according to the ISO/IEC 7811 et al. standard. The three separate portions ortracks1,2 and3 are called “proxy tracks”1,2 and3, herein for consistency with magnetic stripe terminology. However, the present invention contemplates that the proxy tracks are further segmented into sub-portions or sub-fields (“proxy fields”) which are undetectable (or substantially undetectable) to the reader or the merchant system. For example, the proxy transaction account identifier may include threeproxy tracks1,2,3 of the magnetic stripe data which are encoded with a plurality of proxy fields without (or minimally) disturbing the manner in which the proxy tracks are received by the merchant system or reader. Each proxy field may have any field length as determined by the account provider so long as the proxy track containing the proxy fields meets the character bit density of the corresponding magnetic stripe track as defined by the magnetic stripe standard used by the account provider. The proxy fields in accordance with the present invention are shown as PF1-PFn shown inFIGS. 9 and 10.
• Proxy tracks1,2, and3 may be of similar description as traditional magnetic stripe tracks1,2, and3 described above. As such, the information encoded in the proxy tracks ordinarily conforms to the American National Standards Institute and International Standards Organization noted above. That is, proxy tracks may be encoded with data using one of the ANSI/ISO ALPHA Data format or the ANSI/ISO BCD Data format.
• The proxy tracks may be encoded with the relevant transaction account identifying data by the account provider. The encoding is preferably completed prior to populating the proxy account identifier into thefob database214. The proxy account identifier may be provided to thefob database214 prior to providing thefob102 to an accountholder for usage. Alternatively, thefob102 may add the proxy account identifier to thefob database214 at a later date, for example, using the method described in the U.S. patent application Ser. No. 10/708,550 entitled “SYSTEMS AND METHODS FOR PROVIDING A RF TRANSACTION DEVICE OPERABLE TO STORE MULTIPLE DISTINCT ACCOUNT,” which was filed on Mar. 10, 2004, and which is commonly owned by the assignee of the present invention and is hereby incorporated by reference.
• The proxy account identifier is useful for securing the related account identifier, because only subparts or portions of the data sets encoded in the related account identifier are encoded in the proxy account identifier proxy tracks. The portions may be encrypted prior to providing the portions to the proxy track using any method as desired by the account provider. The portions of the account identifier which are encoded in the proxy tracks may be used by the account provider to regenerate the complete corresponding data set, for use in locating the corresponding transaction account for use in transaction completion. In this context, a data set may be groups of information. For example, one data set may be the account number, while anther data set may be the accountholder name, while yet another data set may be the transaction account expiration date, while still another data set may be the transaction account expiration date.
• A more complete understanding of method for encoding the portions of account identifier data into the proxy account identifier may be understood with reference toFIGS. 10, and11, whereFIG. 11 illustrates an exemplary method for encoding proxyaccount identifier track1, which may be encoded using the ANSI/ISO ALPHA Data format.
• An exemplary method for encoding the proxy tracks may begin with a customer opening a transaction account with a transaction account provider (step1102). In opening the account, the customer provides the account provider with personal information such as, for example, the customer's name, street address, city and state. In other embodiments, thefob102 may include other personal information, such as, for example, the customer's driver's license number, birth date, sex, height, weight, hair color, eye color, or the like.
• Once the information is received, the account provider may open a transaction account and assign the transaction account a transaction account identifier and a transaction account expiration date or effective date (step1104). The transaction account identifier, effective date, expirations date, and any other information provided by the customer or the account provider, which relates to the transaction account, may be stored on the provider system database such that each piece of information is correlated to the customer transaction account identifier (step1106).
• Ordinarily, the account provider may provide the customer with an account identifier associated with a transaction device using the information provided by the user and the information from the account provider. The account identifier may be in any format recognizable by the entity receiving the information. For example, where the account identifier is provided to afob102, the account identifier is ordinarily received by areader104 ormerchant system130. Consequently, the account identifier typically is configured in a format recognizable by thereader104 or themerchant system130.
• In a banking context, the account identifier is formatted in accordance with the ANSI/ISO encoding standard. As such, the associated proxy account identifier will also employ the ANSI/ISO encoding standard, except that, as noted, the proxy account identifier only encodes portions of the information data sets that are encoded in the traditional account identifier.
• For example,track1 of the traditional account identifier is generally reserved for encoding the account number, expiration date and name of the accountholder (e.g., “customer”). That is, the full and complete data set encoded intraditional track1 may include all characters which comprise a full data set of thetraditional track1 information. However, in accordance with the present invention, theproxy track1 may only have portions of thetraditional track1 data set encoded in theproxy track1 location. As noted,FIG. 11 illustrates anexemplary proxy track1 layout, wherein the proxy fields (PF1-PFN) are shown.
• Where thetraditional track1 may include a field PAN for encoding the transaction account number,proxy track1 may only encode a predetermined portion of the account number therein (step1108). The predetermined portion of the account number may be stored in a proxy field such as proxy field PF5. Thus, if the account number is a sixteen-digit credit card account number, the proxy field PF5 may have only the first eight digits of the account number (or any eight digits), thereby freeing up the remaining eight digit positions located in proxy field PF6 for use in storing alternate information. The account provider may then choose to encode any desired alternate information in the remaining digit positions at proxy field PF6 (step1108). In one example, the account provider may encode authentication tag data, personal security data, customer health or demographic information or the like in proxy field PF6 (step1112). In similar manner as is discussed with the account number, only portions of the alternate information may be encoded inproxy track1 at proxy field PF6. Otherwise, the proxy account identifier is populated into thefob database214.
• The above process of encoding only portions of a data set may be repeated with respect toproxy track2 andproxy track3, if required (step1116). Once the account provider encodes the desired information in the available proxy track character fields, the account provider may populate the proxy account identifier into a transaction device for use in completing a transaction (step1114). For example, wherefob102 is the transaction device, the proxy account identifier may be populated on thefob database214.
• Ordinarily, the proxy account number (e.g., a portion of the transaction account number) includes essential identifying information, such as, for example, any information that is common to the account provider. The common information (also called “common character,” herein) may include the account provider routing number, or common source indicator such as the character spaces reserved to indicate the identification of the issuing bank. Thus, where the proxy transaction account identifier corresponds to an American Express account, the proxy transaction account identifier may include thecommon character number 3, encoded the field location where such common character is ordinarily encoded in traditional magnetic stripe format.
• FIG. 12 illustrates the encoding of which would ordinarily be done by an entity, such as, for example, MasterCard intrack2 format.FIG. 12 shows the encoding of a MasterCard account number 3111 2222 3333 4444 withexpiration date 12/99 intraditional track1 format. Since MasterCard uses thenumber 3 to identify its transaction accounts, the proxy account identifier will also use thenumber 3 so that the receiving system (e.g.,reader104 ormerchant system130, or account provider) further recognizes that the proxy account identifier is from a MasterCard transaction device. It should be noted that in this example, the “3” and the “101” may be common characters to all MasterCard transaction accounts.
• FIG. 13 shows the identical account number, 3111 2222 3333 4444, encoded in the proxy account identifier proxy field PF3, which is reserved for account number data. The PF3 may only store the first four digits and the last four digits, or any combination which includes the common character of the issuing institution identifier thenumber 3. Thus, the remainder of the character locations (designated in PF4 by “*”) for that account number location PAN is left for the account provider to store any information as desired.
• Once the information is encoded in the transaction device (e.g., fob102), thefob102 may be presented for transaction completion using any method described herein (step1120). For example, themerchant system130 may receive the proxy transaction account identifier from thefob102 in similar manner as was discussed with reference to completing a transaction inFIG. 6. The merchant system recognizes the proxy transaction account identifier as referenced to a MasterCard account number because of thecommon number 3 and processes the proxy transaction account identifier under business as usual standards employed for MasterCard accounts.
• Once a merchant transaction request is received at the account provider location, the account provider may decode the proxy transaction account identifier and reassemble the information contained in the proxy fields (step1122). The account provider may reassemble or reconstruct the information using one or more account provider algorithms. The algorithms may be specific to a particular proxy field, or the algorithm may be operated on the entire proxy transaction account identifier. The reassembled data may be used to reference the corresponding transaction account on the account provider database for use in completing the transaction (step1124). The account provider may then locate the appropriate corresponding account and satisfy the merchant transaction request under the account provider's business as usual standard (step1126).
• As such, it can be readily seen that the present invention has the added advantage over the prior art of being able to store more information in the same character spacing than is currently stored in atraditional track1 field F3. In addition, the information may be transmitted in traditional magnetic stripe format without the disadvantage of engaging a third party to configure the information in a merchant recognizable format.
• 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. Thus, the preceding detailed description is presented for purposes of illustration only and not of limitation, and the scope of the invention is defined solely by the appended claims and their legal equivalents when properly read in light of the preceding description. 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.

Claims (18)

1. A transaction device system comprising:

an account identifier including a first account identifier portion and a second account identifier portion;

a transaction device database including a proxy account identifier storage area operable for storing a proxy account identifier, said proxy account identifier including said first account identifier portion, wherein said proxy account identifier is provided to an account identifier provider system;

said proxy account identifier storage area including a first proxy account identifier storage area and a second proxy account identifier storage area, said second proxy account identifier storage area configured to store said first account identifier portion; and

said account identifier provider system configured for receiving said proxy account identifier including said first account identifier portion, said account identifier provider system operable to associate said first account identifier portion to said account identifier, said account identifier being associated with a transaction account, and said account identifier provider system operable to receive said first account identifier portion and provide a corresponding account identifier to an account identifier provider server for transaction completion.

2. The system ofclaim 1, wherein said account identifier provider system is operable to provide said account identifier to said account identifier provider server in accordance with said first account identifier portion.

3. The system ofclaim 2, wherein said account identifier provider system is operable to generate said second account identifier portion in accordance with a predetermined algorithm operated on said first account identifier portion, said account identifier provider system is operable to provide said account identifier to said account identifier provider server in accordance with said first account identifier portion and said generated second account identifier portion.

4. The system ofclaim 2, wherein said account identifier provider system further includes an account identifier provider database, said account identifier provider database operable to store said account identifier, wherein said account identifier provider system is operable to locate said stored account identifier in accordance with a predetermined algorithm operated on said first account identifier portion.

5. The system ofclaim 2, wherein said account identifier provider system further includes an account identifier provider database, said account identifier provider database operable to store said second account identifier portion, wherein said account identifier provider system is operable to locate said stored second account identifier portion in accordance with a predetermined algorithm operated on said first account identifier portion, said account identifier provider system is operable to provide said account identifier to said account identifier provider server in accordance with said first account identifier portion and said located second account identifier portion.

6. The system ofclaim 1, wherein said proxy account identifier is provided to a merchant system, said merchant system in further communication with said account identifier provider system, said merchant system operable to provide said proxy account identifier including said first account identifier portion to said account identifier provider system.

7. The system ofclaim 6, wherein said proxy account identifier is provided in a merchant system recognizable format.

8. The system ofclaim 6, further comprising a transaction device reader in further communication with said merchant system, said transaction device reader operable to receive said proxy account identifier and to provide said proxy account identifier to said merchant system.

9. The system ofclaim 7, wherein said proxy account identifier is in International Standards Organization (ISO) compatible magnetic stripe format.

10. The system ofclaim 7, wherein said proxy account identifier includes said first account identifier portion in at least one track of an ISO compatible magnetic stripe format.

11. The system ofclaim 1, wherein said proxy account identifier including said first account identifier portion is provided to said account identifier provider system in a contactless transmission medium.

12. The system ofclaim 11, wherein said contactless transmission medium is radio frequency.

13. A method, comprising:

associating, by a computer-based system for transmitting data for transaction completion in a payment system, a first proxy account identifier portion with a transaction account identifier, said transaction device identifier including first and second transaction account identifier portions, wherein a transaction device is associated with a proxy account identifier, and wherein said proxy account identifier has said first proxy account identifier portion;

storing, by the computer-based system, said first transaction account identifier portion in said first proxy account identifier portion; and

providing, by the computer-based system, said first transaction account identifier portion to a transaction account provider for use in determining said transaction account identifier for completing a transaction.

14. A method ofclaim 13, wherein said proxy account identifier is in International Standards Organization (ISO) compatible magnetic stripe format.

15. A method ofclaim 13, wherein said proxy account identifier includes said first account identifier portion in at least one track of an ISO compatible magnetic stripe format.

16. An article of manufacture including a non-transitory, tangible computer readable medium having instructions stored thereon that, in response to execution by a computer-based system for transmitting data for transaction completion in a payment system, cause the computer-based system to perform operations comprising:

associating, by the computer-based system, a first proxy account identifier portion with a transaction account identifier, said transaction device identifier including first and second transaction account identifier portions, wherein a transaction device is associated with a proxy account identifier, and wherein said proxy account identifier has said first proxy account identifier portion;

storing, by the computer-based system, said first transaction account identifier portion in said first proxy account identifier portion; and

providing, by the computer-based system, said first transaction account identifier portion to a transaction account provider for use in determining said transaction account identifier for completing a transaction.

17. A method ofclaim 16, wherein said proxy account identifier is in International Standards Organization (ISO) compatible magnetic stripe format.

18. A method ofclaim 16, wherein said proxy account identifier includes said first account identifier portion in at least one track of an ISO compatible magnetic stripe format.

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