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

• US 20050165695A1
• Filed: 12/13/2002
• Published: 07/28/2005
• Est. Priority Date: 07/09/2002
• 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: Bonalle, David S., VonWald, Kristin L., Perry, Trevor W., Isenberg, Susan E., Mayers, Alexandra, Berardi, Michael J., Williamson, John R., Scheding, Kathryn D., Elwood, Jennifer Anne, Bliman, Michal, Saunders, Peter D., Hood, Matthew C., Shah, Sejal Ajit
• Granted Patent: US 7,249,112 B2
• Time in Patent Office: Days
• US Class Current: 705/64
• 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 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/08 Payment architectures
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• 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 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• 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 20/401 Transaction verification
• CPC Class Codes: G07C 9/29 the pass containing active electronic elements, e.g. smartcards

Abstract

A transponder-reader payment system includes a RFID reader for interrogating a transponder, and a fob including a transponder which is associated with fob data file funded by one or more funding sources. In exemplary operation, the fob identifying information may be presented to the RFID reader for completion of a transaction request. The transaction request may be provided to a fob issuer system which may process the transaction request in accordance with a funding protocol wherein the transaction request is satisfied according to a fob issuer predefined funding criteria relative to the multiple funding sources.

Claims

1. A transponder-reader payment system comprising:

a. a transponder system responsive to a Radio Frequency (RF) interrogation signal, said transponder system including a transponder database, said transponder database storing at least a transponder system identifier;

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

c. a merchant system for receiving said transponder system identifier, said merchant system including a merchant system identifier and a merchant point of interaction device in communication with said RFID reader, said merchant system configured to match said transaction system identifier and said merchant system identifier to a user transaction request forming a merchant transaction request;

d. an issuer system comprising;

an issuer system server in communication with said merchant point of interaction device for receiving said merchant transaction request; and

ii. an issuer system database including a funding account data file containing a funding account value for satisfying said merchant transaction request and a funding account protocol, said funding account data file associated with said transponder system identifier;

e. a primary funding source containing a primary funding source value, said primary funding source in communication with said issuer system server, said primary funding source configured for one of providing value to and receiving value from said funding account data file, said funding source associated with said transponder system identifier; and

f. a secondary funding source containing a secondary funding source value, said secondary funding source in communications with said issuer system server, said secondary funding source configured for one of providing value to and receiving value from said funding account data file, said secondary funding source associated with said transponder system identifier.

2. A transponder-reader payment system according to claim 1, wherein said issuer system provides at least a portion of said funding account value to said merchant system in accordance with said funding protocol.

3. A transponder-reader payment system according to claim 2, wherein said funding account protocol includes providing at least one of a portion of said primary funding source value and a portion of said secondary funding source value to said merchant system in accordance with said merchant system identifier.

4. A transponder-reader payment system according to claim 2, wherein said funding account protocol includes providing at least one of a portion of said primary funding source value and a portion of said secondary funding source value to said funding account data file in accordance with said user transaction request.

5. A transponder-reader payment system according to claim 2, wherein said funding account protocol includes providing at least one of a portion of said primary funding source value and a portion of said secondary funding source value to said funding account data file in accordance with a predetermined formula.

6. A transponder-reader payment system according to claim 2, wherein said funding account protocol includes providing at least one of a portion of said secondary funding source value to said funding account data file where said primary funding source value is one of equal to and less than a minimum depletion value.

7. A transponder-reader payment system according to claim 1, wherein said issuer system provides at least a portion of said funding account value to at least a portion of said funding account value to at least one of said primary funding source and said secondary funding source in accordance with said funding protocol and said user transaction request.

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

a user system including a user system interface for receiving said transponder system identifier, said user system in communication with said issuer system server said user system remote from said issuer system;

said transponder system further comprising a transponder system interface with said user system interface, said transponder system interface configured to provide said transponder system identifier to said user system interface.

9. A transponder-reader payment system according to claim 8, wherein said user system provides an update funding protocol indicia to said issuer system server, said issuer system server replacing a corresponding funding account protocol in response to said funding protocol indicia.

10. A method of transponder-reader payment comprising:

a. providing a transponder system identifier to a merchant system via radio frequency signal;

b. matching the transponder system identifier to a merchant system identifier and a user transaction request; and

c. retrieving value from at least one of a primary funding source and a secondary funding source and providing the value to a funding account in accordance with a user defined funding protocol.

11. A method according to claim 10, further comprising:

retrieving a transaction value from the funding account and providing the transaction value to a merchant system in accordance with the user defined funding protocol.

12. A method according to claim 10, further comprising:

retrieving a transaction value from the funding account and providing the value to at least one of the primary funding source and the secondary funding source in accordance with a user transaction request and the funding protocol.

13. A method according to claim 10, further comprising:

a. providing the transponder system identifier to a user system and an update funding protocol in communication with an issuer system, the issuer system configured to manage the funding protocol, the user system remote from the issuer system;

b. updating the funding protocol in accordance with the update funding protocol.