System and method for encoding information in magnetic stripe format for use in radio frequency identification transactions

• US 20040260646A1
• Filed: 08/30/2004
• Published: 12/23/2004
• 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: Berardi, Michael J., Bonalle, David S., Bliman, Michal, Saunders, Peter D.
• Granted Patent: US 7,805,378 B2
• Time in Patent Office: Days
• US Class Current: 705/39
• 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 20/0855 involving a third party
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 30/0633 Lists, e.g. purchase orders, compilation or processing
• 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

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.

Claims

1. A payment system comprising:

a transaction device system, said transaction device associated with an account identifier, said account identifier including at least a first account identifier portion and a second account identifier portion, said transaction device further including a transaction device database including a proxy account identifier storage area, said transaction device database proxy account identifier storage area operable for storing a proxy account identifier, said proxy account identifier storage area including a first proxy account identifier storage area and a second proxy account identifier storage area, wherein said proxy account identifier storage area is operable to store a proxy account identifier, wherein said proxy account identifier includes said first account identifier portion, said second proxy account storage area configured to store at least said first account identifier portion, said transaction device operable to provide said proxy account identifier including said account identifier first portion to an account identifier provider system; and

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

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

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

4. A system according to claim 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 account identifier first portion.

5. A system according to claim 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 second portion, wherein said account identifier provider system is operable to locate said stored account identifier second portion in accordance with a predetermined algorithm operated on said account identifier first portion, said account identifier provider system is operable to provide said account identifier to said account identifier provider server in accordance with said account identifier first portion and said located account identifier second portion.

6. A system according to claim 1, further including a merchant system in communication with said transaction device system, transaction device system operable to provide said proxy account identifier to said 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 account identifier first portion to said account provider system.

7. A system according to claim 6, wherein said transaction device system is operable to provide said proxy account identifier in a merchant system recognizable format.

8. A system according to claim 6, further comprising a transaction device reader in communication with said transaction device system, said 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. A system according to claim 7, wherein said proxy account identifier is in International Standards Organization (ISO) compatible magnetic stripe format.

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

11. A system according to claim 1, wherein said transaction device is operable to provide said proxy account identifier including said account identifier first portion to an account identifier provider system in a contactless transmission medium.

12. A system according to claim 11, wherein said contactless transmission medium is radio frequency.

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

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

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

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

14. A method according to claim 13, further including receiving the proxy transaction device identifier in International Standards Organization magnetic stripe format, wherein the proxy transaction device identifier includes at least a first proxy identifier portion and a second proxy identifier portion, wherein at least the first proxy identifier portion includes a portion of transaction account identifier.

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

providing a transaction device associated with a proxy account identifier, the proxy account identifier having at least a first proxy account identifier portion;

providing a database for storing the proxy account identifier;

associating the first proxy account identifier portion with a transaction account identifier;

the transaction device identifier including first and second transaction account identifier portions;

storing the first transaction account identifier portion in the first proxy account identifier portion; and

providing the first transaction account identifier portion to a transaction account provider for use in determining the transaction account identifier for use in completing a transaction.