SYSTEM AND METHOD FOR TRANSFERRING VALUE TO A MAGNETIC STRIPE ON A TRANSACTION CARD

• US 20010013542A1
• Filed: 07/02/1998
• Published: 08/16/2001
• Est. Priority Date: 07/03/1997
• Status: Active Grant

• Current Assignee: Citicorp Credit Services Incorporated (Citigroup Incorporated)
• Original Assignee: Citicorp Development Center Incorporated (Citigroup Incorporated)
• Inventors: HOROWITZ, EDWARD, KAWAN, JOSEPH C., LICHSTEIN, HENRY
• Granted Patent: US 6,510,983 B2
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/341 Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
• CPC Class Codes: G06Q 20/3437 the counter having non-monetary units, e.g. trips
• CPC Class Codes: G06Q 20/357 Cards having a plurality of specified features
• CPC Class Codes: G06Q 20/3572 Multiple accounts on card
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07F 9/001 Interfacing with vending machines using mobile or wearable devices
• CPC Class Codes: G07F 9/002 Vending machines being part of a centrally controlled network of vending machines

Abstract

The present invention discloses a system and method enabling value stored in an advanced technology memory on a transaction card to be utilized in a magnetic stripe transaction with the card. The invention provides a special transaction number that is encrypted and recorded on the magnetic stripe of the card. The special transaction number may comprise the value to be transferred or transaction amount, a personal identification number (“PIN”), as well as other pertinent information. The special transaction number may be recorded in a discretionary data field, non-discretionary data field, or in a combination of both. Further, an indicator character may also be recorded on the magnetic stripe to alert a host system of a financial institution of the existence of the special transaction number. The present invention provides a number of techniques for encrypting the special transaction number. These techniques comprise using the security of the advanced technology memory, such as an integrated circuit memory, an optical memory and a thin film semi-conductor memory, to provide a public key/private key system and a synchronized clock system. Additionally, the special transaction number may be provided in an industry standard format, or in additional formats including binary and hexadecimal codes. Thus, the special transaction number is read during a magnetic stripe transaction and the value represented by the special transaction number may be utilized to perform the transaction.

Claims

1. A method for performing a secure financial transaction utilizing the magnetic stripe memory of a transaction card, having a magnetic stripe memory and at least one advanced technology memory, comprising the steps of:

(a) modifying data necessary to effect a funds transfer to form an special transaction number; and

(b) storing the special transaction number on the magnetic stripe memory of the card.

2. A method for performing a secure financial transaction as recited in

claim 1

, wherein the special transaction number provides access to at least a portion of a value held within the at least one advanced technology memory on the card.

3. A method for performing a secure financial transaction as recited in

claim 2

, wherein the memory comprises at least one of an integrated circuit memory, an optical stripe memory, and a thin film semi-conductor memory.

4. A method for performing a secure financial transaction as recited in

claim 1

, wherein the modifying step comprises generating the special transaction number with the encryption capability of the at least one advanced technology memory on the card.

5. A method for performing a secure financial transaction as recited in

claim 4

, wherein the at least one advanced technology memory comprises at least one of an integrated circuit memory, an optical memory and a thin film semi-conductor memory.

6. A method for performing a secure financial transaction as recited in

claim 4

, wherein the at least one advanced technology memory comprises an integrated circuit memory.

7. A method for performing a secure financial transaction as recited in

claim 1

, wherein the modifying step comprises generating the special transaction number with the encryption capability of device capable of reading and writing to an advanced technology memory and a magnetic stripe memory.

8. A method for performing a secure financial transaction as recited in

claim 7

, wherein the reading and writing device comprise a device selected from the group consisting of a personal digital assistant, an automated teller machine, a customer access terminal, and a merchant terminal.

9. A method for performing a secure financial transaction as recited in

claim 1

, wherein the modifying data step comprises encrypting the data using a public key/private key encryption system.

10. A method for performing a secure financial transaction as recited in

claim 1

, wherein the modifying data step comprises encrypting the data using a synchronized clock encryption system.

11. A method for performing a secure financial transaction as recited in

claim 1

, wherein the storing step comprises recording the special transaction number in a discretionary data field on the magnetic stripe memory.

12. A method of performing a secure financial transaction as recited in

claim 1

, wherein the storing step comprises recording the special transaction number in a non-discretionary data field in place of at least a portion of a personal account number.

13. A method of performing a secure financial transaction as recited in

claim 12

, further comprising recording a indicator character in a discretionary data field on the magnetic stripe memory.

14. A system for transferring value on a multi-memory transaction card from an advanced technology memory to a magnetic stripe memory, comprising:

a transaction card having an advanced technology memory and a magnetic stripe memory;

said advanced technology memory with an electronic purse having an electronic purse value;

said magnetic stripe memory having non-discretionary data fields for recording a personal account number, and having discretionary data fields;

a reader/writer device in communication with said advanced technology memory and said magnetic stripe memory; and

an encrypted special transaction number recorded on said magnetic stripe memory, said special transaction number effecting the transfer of at least a portion of said electronic purse value.

15. A system for transferring value on a multi-memory transaction card as recited in

claim 14

, wherein said advanced technology memory comprises at least one of an integrated circuit memory, an optical memory and a thin film semi-conductor memory.

16. A system for transferring value on a multi-memory transaction card as recited in

claim 14

, wherein said reader/writer device comprises at least one of a personal digital assistant, an automated teller machine, a customer access terminal and a merchant terminal.

17. A system for transferring value on a multi-memory transaction card as recited in

claim 14

, wherein said special transaction number comprises a cash value and a personal identification number.

18. A system for transferring value on a multi-memory transaction card as recited in

claim 14

, wherein said special transaction number is encrypted by said advanced technology memory.

19. A system for transferring value on a multi-memory transaction card as recited in

claim 14

, wherein said special transaction number is encrypted by said reader/writer device.

20. A system for transferring value on a multi-memory transaction card as recited in

claim 14

, further comprising an indicator character recorded in said discretionary data field of said magnetic stripe memory.

21. A system for using value stored in an advanced technology memory on a multi-memory transaction card utilizing a magnetic stripe memory on said card, comprising:

a transaction card having an advanced technology memory and a magnetic stripe memory;

said advanced technology memory comprising an integrated circuit memory with an electronic purse having an electronic purse value;

said magnetic stripe memory having non-discretionary data fields for recording a personal account number, and having discretionary data fields;

a special transaction number recorded on said magnetic stripe memory, said special transaction number representing at least a portion of said electronic purse value;

a reader/writer device in communication with said advanced technology memory and said magnetic stripe memory, wherein said reader/writer device generates said special transaction number, and

a terminal device that dispenses credit for an amount equivalent to said portion of said electronic purse value represented by said special transaction number.

22. A system as recited in

claim 21

, wherein said reader/writer device and said terminal device are the same device.