Transaction card system having security against unauthorized usage

• US 20060118621A1
• Filed: 01/30/2006
• Published: 06/08/2006
• Est. Priority Date: 11/19/2001
• Status: Abandoned Application

• Current Assignee: Robert L. Burchette Jr
• Original Assignee: Robert L. Burchette Jr
• Inventors: Burchette, Robert L. Jr.
• Application Number:
  US11/342,964
• Publication Number:
  US 20060118621A1
• Time in Patent Office: Days
• US Class Current: 235/380
• 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 20/40145 Biometric identity checks
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/0873 Details of the card reader
• 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

Abstract

A system having a host having information regarding at least one transaction card account. The host functions to transfer card data to a drone card carried within the host. The host includes a biometric sensor or other suitable identification means for authentication of the user prior to use of the drone card. Once the user is authenticated, the drone card provides a readable identifier that corresponds to a transaction card account selected by the user. The functions of the host can be integrated into a portable electronic device such as a cellular telephone.

Claims

1. A transaction card system, said system comprising:

a drone card;

a host adapted to physically receive a portion of said drone card during a data transfer operation from said host to said drone card, said host having;

a host memory configured to store account information regarding at least one transaction card;

an output circuit configured to generate a readable identifier corresponding to a transaction card stored in said host memory;

a user input device configured to select a transaction card stored in said host memory; and

a processor operatively coupled to said host memory, output circuit and user input device, wherein said output circuit generates a readable identifier responsive to input received from said user input device; and

wherein said readable identifier includes a security code that is automatically generated by said host and is transferred to said drone card changing with each transaction, said security code being capable of being transmitted to a remote computer to authenticate a transaction.

2. The system as recited in claim 1, wherein said host is integrated into a portable electronic device having other functions.

3. The system as recited in claim 2, wherein said portable electronic device is a cellular telephone device.

4. The system as recited in claim 1, further comprising an authentication sensor operatively coupled to said processor, wherein said authentication sensor limits access to account information stored in said memory based upon the input received by said security input device.

5. The system as recited in claim 4, wherein said authentication sensor is a biometric sensor.

6. The system as recited in claim 4, wherein a first user has access to a first set of account information stored in said host memory based upon input received by said authentication sensor and a second user has access to a second set of account information based upon input received by said authentication sensor.

7. The system as recited as claim 1, wherein said readable identifier generated by said output circuit is a magnetic signal.

8. A transaction card system, said system comprising:

a memory configured to store account information regarding at least one transaction card;

an output circuit configured to generate a readable identifier corresponding to a transaction card stored in said memory;

a user input device configured to select a transaction card stored in said memory;

a processor operatively coupled to said memory, output circuit and user input device, wherein said output circuit generates a readable identifier responsive to input received from said user input device; and

wherein said readable identifier includes an automatically generated security code that is capable of being transmitted to a remote computer to authenticate a transaction, said security code being a randomly changing code pattern which is known by said host and said remote computer.

9. The system as recited in claim 8, further comprising an authentication sensor operatively coupled to said processor, wherein said authentication sensor limits access to account information stored in said memory based upon the input received by said security input device.

10. The system as recited in claim 9, wherein said authentication sensor is a biometric sensor.

11. The system as recited in claim 9, wherein a first user has access to a first set of account information stored in said memory based upon input received by said authentication sensor and a second user has access to a second set of account information based upon input received by said authentication sensor.

12. The system as recited as claim 8, wherein said readable identifier generated by said output circuit is a magnetic signal.

13. The system as recited in claim 8, wherein said security code sequentially changes for each transaction.

14. The system as recited in claim 8, wherein said security code is based upon an encryption algorithm.

15. The system as recited in claim 8, further comprising a status indicator operatively coupled to said processor, said status indicator configured to switch between a disabled state and an enabled state wherein said status indicator becomes enabled when said output circuit generates a readable identifier.

16. The system as recited in claim 15, wherein said status indicator becomes disabled upon being read by a card reader.

17. The system as recited in claim 15, wherein said status indicator becomes disabled when a predetermined period of time elapses after said output circuit generates a readable identifier.

18. The system as recited in claim 8, further comprising an interface operatively coupled to said processor for downloading account information.

19. The system as recited in claim 8, further comprising a display operatively coupled to said processor, said display showing account information stored in said memory responsive to said user input device.

20. A transaction card system, said system comprising:

a drone card having a readable identifier;

a host having a slot for receiving said drone card, said host being operative to transfer account information to said drone card such that said readable identifier will be indicative thereof;

an enroller having a card-like portion configured to be received within said slot of said host, said enroller having a user input device capable of communicating with said host; and

wherein said host is configured to switch between a disabled state that prevents use of said host and an enabled state that allows use of said host, said host switching to said enabled state responsive to input received from said user input device of said enroller.

21. The system as recited in claim 20, further comprising a biometric sensor.

22. The system as recited as claim 20, wherein said readable identifier is a magnetic stripe.

23. The system as recited in claim 20, wherein said readable identifier is a bar code.

24. The system as recited in claim 20, wherein said enroller has an interface for communicating with said host so as to store account information into said host memory.

25. The system as recited in claim 20, further comprising a user input device configured to select account information for a transaction card stored in said host memory.