Methods and systems for electromagnetic initiation of secure transactions

• US 20050137986A1
• Filed: 11/23/2004
• Published: 06/23/2005
• Est. Priority Date: 12/17/2003
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Kean, Brian T.
• Granted Patent: US 7,831,519 B2
• Time in Patent Office: Days
• US Class Current: 705/65
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G07F 7/1016 Devices or methods for securing the PIN and other transaction-data, e.g. by encryption arrangements for secret communication, see H04L9/00

Abstract

Methods and systems are provided for processing secure transactions. An electromagnetic transmission packet is received from a portable device at a processing device. The electromagnetic transmission packet includes an encrypted magnetic-stripe image and an encrypted version of an alphanumerical identifier. A keyed nonencrypted version of the alphanumerical identifier is received at the processing device, and the encrypted version of the alphanumerical identifier is decrypted. The decryption of the encrypted version of the alphanumerical identifier is compared with the nonencrypted version of the alphanumerical identifier. Thereafter, a decryption of the encrypted magnetic-stripe image is transmitted to a host system for processing the secure transaction using an account identified by the decryption of the magnetic-stripe image.

Claims

1. A method for processing a secure transaction, the method comprising:

receiving, at a processing device, an electromagnetic transmission packet from a portable device, wherein the electromagnetic transmission packet includes an encrypted magnetic-stripe image and an encrypted version of an alphanumerical identifier;

receiving a keyed nonencrypted version of the alphanumerical identifier at the processing device;

decrypting the encrypted version of the alphanumerical identifier;

comparing the decryption of the encrypted version of the alphanumerical identifier with the nonencrypted version of the alphanumerical identifier; and

thereafter, transmitting a decryption of the encrypted magnetic-stripe image to a host system for processing the secure transaction using an account identified by the decryption of the magnetic-stripe image.

2. The method recited in claim 1 wherein the electromagnetic transmission packet is received at a radio frequency.

3. The method recited in claim 1 further comprising:

receiving a barcode scan of a barcode; and

transmitting a barcode value corresponding to the barcode with the decryption of the encrypted magnetic-stripe image.

4. The method recited in claim 3 further comprising verifying a validity of the barcode.

5. The method recited in claim 4 further comprising:

activating an antenna to receive the electromagnetic transmission packet after verifying the validity of the barcode; and

deactivating the antenna after receiving the electromagnetic transmission packet.

6. The method recited in claim 4 wherein verifying the validity of the barcode comprises:

calculating a check digit from characters comprised by the scanned barcode; and

comparing the calculated check digit with a comparison check digit comprised by the scanned barcode.

7. The method recited in claim 1 further comprising transmitting the alphanumerical identifier with the decryption of the encrypted magnetic-stripe image.

8. The method recited in claim 1 further comprising transmitting an identification of the processing device and a transaction identifier to the portable device, wherein the electromagnetic transmission packet further includes an encryption of the transaction identifier and the identification of the processing device.

9. The method recited in claim 8 further comprising:

decrypting the encryption of the transaction identifier and the identification of the processing device; and

comparing the decryption of the transaction identifier and the identification of the processing device with the identification of the processing device and the transaction identifier transmitted to the portable device.

10. The method recited in claim 9 further comprising:

receiving a symmetric-key encrypted portable-device transaction counter and incremented processing-device transaction counter;

decrypting the portable-device transaction counter and the incremented processing-device transaction counter;

calculating a difference between the decrypted portable-device transaction counter and the decrypted incremented processing-device transaction counter.

11. The method recited in claim 10 further comprising transmitting the portable-device transaction counter to a host for fraud detection.

12. The method recited in claim 1 wherein the electromagnetic transmission packet further includes a digital signature, the method further comprising verifying an authenticity of the digital signature.

13. The method recited in claim 1 wherein the encrypted magnetic-stripe image is encrypted using an elliptic-curve cryptographic technique.

14. The method recited in claim 1 further comprising incrementing a counter at the processing device.

15. The method recited in claim 1 wherein the electromagnetic transmission packet further includes nonencrypted information.

16. The method recited in claim 15 wherein the nonencrypted information comprises a key identification, the method further comprising decrypting the encrypted magnetic-stripe image using a key identified by the key identification.

17. A processing device for processing a secure transaction, the processing device comprising:

a radio-frequency antenna;

a keypad equipped for receipt of entry of alphanumerical strings;

a communications system;

secure-access memory; and

a processor in communication with the radio-frequency antenna, the keypad, and the communications system, the processor coupled with a computer-readable storage medium having a computer-readable program embodied therein for directing operation of the processor in accordance with the following;

receiving, with the radio-frequency antenna, a radio-frequency transmission packet from a portable device, wherein the radio-frequency transmission packet includes an encrypted magnetic-stripe image and an encrypted version of an alphanumerical identifier;

receiving a keyed nonencrypted version of the alphanumerical identifier with the keypad;

decrypting the encrypted version of the alphanumerical identifier with the processor;

comparing, with the processor, the decryption of the encrypted version of the alphanumerical identifier with the nonencrypted version of the alphanumerical identifier; and

thereafter, transmitting, with the communications system, a decryption of the encrypted magnetic-stripe image to a host system for processing the secure transaction using an account identified by the decryption of the magnetic-stripe image.

18. The processing device recited in claim 17 further comprising a barcode reader, wherein the computer-readable program further includes:

instructions for receiving a barcode scan of a barcode with the barcode reader; and

instructions for transmitting, with the communications system, a barcode value corresponding to the barcode with the decryption of the encrypted magnetic-stripe image.

19. The processing device recited in claim 17 wherein the computer-readable program further includes instructions for transmitting the alphanumerical identifier with the decryption of the encrypted magnetic-stripe image.

20. The processing device recited in claim 17 wherein the computer-readable program further includes instructions for transmitting, with the radio-frequency antenna, an identification of the processing device and a transaction identifier to the portable device, wherein the radio-frequency transmission packet further includes an encryption of the transaction identifier and the identification of the processing device.

21. The processing device recited in claim 17 further comprising an input device in communication with the processor, the computer-readable program further including instructions for receiving data from the input device.

22. The processing device recited in claim 21 wherein the input device comprises a smart-card reader.

23. The processing device recited in claim 17 further comprising an interface with a point-of-sale terminal equipped for processing the secure transaction with the magnetic-stripe image.

24. A portable device for use in processing a secure transaction, the portable device comprising:

a radio-frequency antenna;

a memory device;

an activation switch; and

a processor in communication with the radio-frequency antenna, the memory device, and the activation switch, the memory device having a computer-readable program embodied therein for transmitting to a processing device, with the radio-frequency antenna and in accordance with a state of the activation switch, a radio-frequency transmission packet that includes an encrypted magnetic-stripe image and an encrypted version of an alphanumerical identifier.

25. The portable device recited in claim 24 wherein the computer-readable program further includes:

instructions for receiving, with the radio-frequency antenna, an identification of the processing device and a transaction identifier;

instructions for encrypting the identification of the processing device and the transaction identifier; and

instructions for transmitting the encryption of the identification of the processing device and the transaction identifier to the processing device as part of the radio-frequency transmission packet.

26. The portable device recited in claim 24 wherein states of the activation switch define on and off states of the portable device.

27. The portable device recited in claim 24 wherein states of the activation switch define which of a plurality of accounts is to be used for the secure transaction.

29. The portable device recited in claim 24 wherein the activation switch comprises a membrane switch.

30. The portable device recited in claim 24 further comprising a plurality of input ports for payment modules, wherein the encrypted magnetic-stripe image defines at least one of the payment modules.

28. The portable device recited in claim 28 wherein a default of the plurality of accounts requires correct identification of the alphanumerical identifier.

31. A system for processing secure transactions, the system comprising:

a host system;

a plurality of processing devices in communication with the host system, each of the processing devices comprising;

a processing-device radio-frequency antenna;

a keypad equipped for receipt of entry of alphanumerical strings;

a communications system; and

a processing-device processor in communication with the processing-device radio-frequency antenna, the keypad, and the communications system; and

a plurality of portable devices, each of the portable devices comprising;

a portable-device radio-frequency antenna;

a memory device;

an activation switch; and

a portable-device processor in communication with the portable-device radio-frequency antenna, the memory device, and the activation switch,

wherein the processors are configured to process the secure transactions by;

exchanging electromagnetic transmission packets between the portable devices and the processing devices, each such electromagnetic transmission packet including an encrypted magnetic-stripe image and an encrypted version of an alphanumerical identifier;

decrypting the encrypted version of the alphanumerical identifier;

comparing the decryption of the alphanumerical identifier with a purported alphanumerical identifier keyed with the keypad, and

thereafter, exchanging a decryption of the encrypted magnetic-stripe image with the host system.

32. The system recited in claim 31 wherein:

at least some of the processing devices further include a barcode reader; and

the processors are further configured to receive a scan of a barcode and to exchange a barcode value corresponding to the barcode with the host system.

33. The system recited in claim 31 wherein the processors are further configured to exchange the alphanumerical identifier with the host system.

34. The system recited in claim 31 wherein the processors are further configured to exchange an identification of a respective processing device and a respective transaction identifier for each transaction between the respective processing device and a respective portable device used to initiate the transaction.

35. The system recited in claim 34 wherein at least the identification of the respective processing device and respective transaction identifier are unencrypted during a first portion of the exchange and encrypted during a second portion of the exchange.