System and method for incenting payment using radio frequency identification in contact and contactless transactions

• US 20030167207A1
• Filed: 01/10/2003
• Published: 09/04/2003
• Est. Priority Date: 07/10/2001
• Status: Active Grant

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Williamson, John R., Perry, Trevor J., Isenberg, Susan E., Mayers, Alexandra, Berardi, Michael J., Scheding, Kathryn D., Elwood, Jennifer Anne, Bliman, Michal, VonWald, Kristin L., Saunders, Peter D., Hood, Matthew C., Shah, Sejal Ajit, Bonalle, David
• Granted Patent: US 7,889,052 B2
• Time in Patent Office: Days
• US Class Current: 705/16
• CPC Class Codes: G06Q 10/025 Coordination of plural reservations, e.g. plural trip segments, transportation combined with accommodation
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/40145 Biometric identity checks
• CPC Class Codes: G07C 9/28 the pass enabling tracking or indicating presence
• CPC Class Codes: G07C 9/29 the pass containing active electronic elements, e.g. smartcards
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered
• CPC Class Codes: H04L 2209/56 Financial cryptography, e.g. electronic payment or e-cash
• CPC Class Codes: H04L 2209/805 Lightweight hardware, e.g. radio-frequency identification [RFID] or sensor
• CPC Class Codes: H04L 9/3234 involving additional secure or trusted devices, e.g. TPM, smartcard, USB or software token network architectures or network communication protocols for supporting authentication of entities using an additional device in a packet data network H04L63/0853

Abstract

A transponder-reader payment system includes a fob including a transponder, and a RFID reader for interrogating the transponder. The system may further include a payment device separate and distinct from the fob, but associated with payment account mutually shared with the fob. In exemplary operation, the fob identifying information, or the payment device information, may be presented to the RFID reader for completion of a transaction request. A process server may receive the transaction request and satisfy the transaction request in accordance with a predetermined payment criteria. The process server may additionally augment a rewards account based on fob or payment device usage, thereby incenting fob usage in one instance and payment device usage in the other.

Claims

1. A transponder-reader payment system comprising:

a. a transponder system responsive to a Radio Frequency interrogation signal, said transponder system including a transponder database, said transponder database storing at least a transponder system identifier, said transponder system identifier including a marker for identifying said transponder system as one of a prepaid transponder and a direct link transponder;

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

c. a merchant system associated with merchant identifier, said merchant system including a point of interaction device, said point of interaction device in communication with said RFID reader;

wherein said RFID reader provides said transponder system identifier to said point of interaction device, said point of interaction device associating said merchant identifier and transponder system identifier to a user transaction request, forming a merchant transaction request, said point of interaction device providing said merchant transaction request to an issuer system server; and

d. an issuer system comprising,

i. an issuer system server, said issuer system server in communication with said point of interaction device, and

ii. an issuer system database including preloaded value, said preloaded value associated with said transponder system identifier.

2. A transponder-reader payment system according to claim 1 wherein said predetermined value is preloaded into said preloaded value data file prior to transponder system usage, said predetermined value greater than zero.

3. A transponder-reader payment system according to claim 2 wherein said issuer system server identifies said transponder system as prepaid transponder system.

4. A transponder-reader payment system according to claim 3 wherein said issuer system server compares said user transaction value to said predetermined value.

5. A transponder-reader payment system according to claim 4 wherein said user transaction request is one of less than and equal to said predetermined values.

6. A transponder-reader payment system according to claim 5 wherein said issuer system provides a transaction approved transmission to said merchant system.

7. A transponder-reader payment system according to claim 6 wherein said issuer system server retrieves at least a portion of said predetermined value from said preloaded value data file and provides said portion of said predetermined value to said merchant system, resulting in said preloaded value data storing a depletion value of at least said predetermined value minus said portion of said predetermined value.

8. A transponder-reader payment system according to claim 7 wherein said depletion value is less than a minimum depletion level, said issuer server reloading said preloaded value to said predetermined value in response thereto.

9. A transponder-reader payment system according to claim 8 wherein said issuer system server is in communication with a funding source, said funding source associated with said transponder system identifier and said preloaded value, said funding source including a funding source value.

10. A transponder-reader payment system according to claim 9 wherein said issuer server retrieves a portion of said funding source value for use in reloading said preloaded value data file.

11. A transponder-reader payment system according to claim 4 wherein said user transaction request exceeds said predetermined value, said issuer system server providing a transaction denied transmission to said merchant system in response to said comparison.

12. A transponder-reader payment system according to claim 2 wherein said point of interaction device is offline, said point of interaction device comparing said user transaction request to a predetermined approval protocol for one of approving or denying said user transaction request.

13. A transponder-reader payment system according to claim 1 wherein said issuer system server identifies said transponder system as a direct link transponder system.

14. A transponder-reader payment system according to claim 13 wherein said predetermined value is zero value.

15. A transponder-reader payment system according to claim 14 wherein said issuer system server evaluates said merchant transaction request for approval in accordance to at least one predetermined criteria.

16. A transponder-reader payment system according to claim 15 wherein said issuer system server provides a transaction denied transmission in accordance with at least one of said predetermined criteria, said transaction denied transmission provided to said merchant system.

17. A transponder-reader payment system according to claim 15 wherein said issuer system server provides a transaction approved transmission in accordance with at least one of said predetermined criteria, said transmission approved transmission provided to said merchant system.

18. A transponder-reader payment system according to claim 17 further comprising a funding source in communication with said issuer system server, said funding source associated with said transponder system identifier, said funding source including a funding source value.

19. A transponder-reader payment system according to claim 18 wherein said issuer system server credits said funding source in response to said user transaction request, wherein at least a portion of said user transaction request is added to said funding source value.

20. A transponder-reader payment system according to claim 18 wherein said issuer system server charges said funding source in accordance with said user transaction request, said issuer system server receiving at least a portion of said funding source value in response thereto, said portion of said funding source value received later in time than said issuer system server provides said transaction approved transmission.

21. A transponder-reader payment system according to claim 13 further including a contact form factor presentable for satisfaction of said merchant transaction request, said contact form factor including a contact form factor marker, said contact form factor associated with said transponder system identifier and said preloaded value.

22. A transponder-reader payment system according to claim 21 wherein said contact form factor is one of a charge card, credit card, debit card, loyalty card, and a direct debit authorization card.

23. A transponder-reader payment system according to claim 21 wherein said contact form factor marker is presented to said merchant system, said merchant system associating said contact form factor marker to a contact user transaction request forming a merchant contact transaction request, said merchant system providing said merchant contact transaction request to said issuer system server.

24. A transponder-reader payment system according to claim 23 wherein said issuer system server receives said merchant contact transmission request and provides at least one of a second transaction approved transmission and a second transaction denied transmission to said merchant system in response thereto.

25. A transponder-reader payment system according to claim 24 wherein said issuer system database further comprises a transaction approved datafile said issuer system server generating said transaction approved in response to transmission of said transaction approved transmission and said second transaction approved transmission, said transaction approved datafile segregating said transaction approved transmission from said second transaction approved transmission.

26. A transponder-reader payment system according to claim 25 wherein said issuer system database further comprises a rewards points datafile, said rewards points datafile associated with said transponder system identifier and said contact form factor marker, said rewards points datafile including a loyalty value indicia.

27. A transponder-reader payment system according to claim 26 wherein said issuer system server increments said loyalty value indicia a loyalty value in response to at least one of said transaction approved transmission, said second transaction approved transmission, said merchant identifier, said merchant transaction request and said merchant contact transaction request.

28. A transponder-reader payment system according to claim 26 wherein said issuer system server increments said loyalty value indicia a loyalty value in accordance with issuer predetermined incentive criteria.

29. A transponder-reader payment system according to claim 1 further comprising:

a. a user system in communication with said issuer system server, said user system remote from said issuer system; and

b. wherein said transponder system further comprises a universal serial bus interface in communication with said user system; and

c. said issuer system database further comprises a user profile datafile including at least one of a user demographic subfile and transponder system usage subfile, said demographic subfile and said transponder system usage subfile manageable by said issuer system server, said demographic subfile storing a plurality of user demographic identifiers and said transponder system usage subfile storing at least one limitation placed on transponder system usage.

30. A transponder-reader payment system according to claim 29, wherein said user system provides at least one of an update demographic identifier and an update limitation to said issuer system server, said update demographic identifier corresponding to at least one of said plurality of user demographic identifiers, and said update limitation corresponds to said at least one limitation, said issuer system server replacing at least one of said plurality of user demographic identifiers and said at least one limitation with said corresponding update demographic identifier and said corresponding update limitation.

31. A transponder-reader payment system according to claim 30 wherein said replacing at least one of said plurality of user demographic identifiers and said at least one limitation is done in real-time.

32. A method of Radio Frequency Identification transponder-reader payment comprising:

a. providing a transponder system identifier to a merchant system via a radio frequency signal, the transponder system identifier including one of a preloaded transponder system marker and a direct link transponder marker, the merchant system including a merchant system identifier;

b. associating the transponder system identifier with a user transaction request and the merchant system forming a merchant transaction request, the user transaction request, containing a transaction value;

c. providing the merchant transaction request to an issuer system server;

d. distinguishing between the preloaded transponder system marker and the direct link transponder marker; and

e. associating at least one of the preloaded transponder system markers and the direct link transponder marker to a corresponding preloaded value, the preloaded value datafile containing a preloaded value.

33. A method according to claim 32, further comprising preloading the preloaded value datafile with a preloaded value of greater than zero value;

a. comparing the user transaction value to the preloaded value;

b. providing a transaction approved transmission to the merchant system where the transaction value is less than or equal to the preload value;

c. deducting from the preloaded value the transaction value;

d. providing the transaction value to the merchant system; and

e. reloading the preloaded data file where a predetermined minimum depletion level is reached.

34. A method according to claim 32 of further comprising:

a. preloading the preloaded value data file with a preloaded value;

b. comparing the user transaction value to the preloaded value; and

c. providing a transaction denied transmission to the merchant system where the transaction value is greater than the preloaded value.

35. A method of according to claim 33, further comprising:

a. associating a contact form factor identifier to the transponder system identifier;

b. providing the contact form factor identifier to a merchant system;

c. associating the contact form factor identifier with a second user transaction request forming a second merchant transaction request, the user transaction request containing a second transaction value;

d. providing the second merchant transaction request to an issuer system server; and

e. comparing the second user transaction request to the preloaded value.

36. A method according to claim 35, further comprising providing a second transaction approved transmission to the merchant system where the second user transaction request is less than or equal to the preloaded value.

37. A method according to claim 35, further comprising providing a transaction denied transmission to the merchant system where the second user transaction request is greater than the preloaded value.

38. A method according to claim 36, further comprising generating a transponder system usage data file, including record of the transaction approved transmission and the second transaction approved transmission, the transaction approved transmission segregated from the second transaction approved transmission.

39. A method according to claim 38, further comprising:

a. providing a rewards points data file;

b. incrementing the rewards points data file a reward value in response to the transaction approved transmission.

40. A method according to claim 38, further comprising:

a. providing a rewards points data file;

b. incrementing the rewards points data file a rewards value in response to the second transaction approved transmission.

41. A method according to claim 38, further comprising providing a rewards points data file;

and incrementing the rewards points data file a rewards value in response to at least one of the transaction approved transmission and the second transaction approved transmission.

42. A method according to claim 41 further comprising reloading the preloaded value data file in response to at least one of the transmission approved transmission and second transmission approved transmission.

43. A method according to claim 42, further comprising incrementing the rewards points data file in response to at least one of the reloading of the preloaded value data file, the merchant transaction request, the user transaction request, the transponder system identifier, and the merchant system identifier.

44. A Radio Frequency Identification transponder system comprising:

a. accessing an issuer system using a transponder system identification using a transponder system identifier and a user point of interaction device, the user point of interaction device remote from the user system;

b. updating a data file including one of the user demographic indicia and a transponder system usage restriction, the data file associated with the transponder system identifier.

45. A method according to claim 44 further comprising updating the data file in real-time.