SYSTEM AND METHOD FOR ACTIVATING TELEPHONE-BASED PAYMENT INSTRUMENT

• US 20070262134A1
• Filed: 05/10/2006
• Published: 11/15/2007
• Est. Priority Date: 05/10/2006
• Status: Active Grant

• Current Assignee: First Data Corporation (Fiserv Incorporated)
• Original Assignee: First Data Corporation (Fiserv Incorporated)
• Inventors: Dewan, Sunil, Humphrey, Wendy, Oswald, Daniel
• Granted Patent: US 7,562,813 B2
• Time in Patent Office: Days
• US Class Current: 235/379
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/1085 involving automatic teller machines [ATMs]
• CPC Class Codes: G06Q 20/305 using wired telephone networks
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3226 Use of secure elements separate from M-devices
• CPC Class Codes: G06Q 20/3278 RFID or NFC payments by means of M-devices
• 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 20/353 Payments by cards read by M-devices
• CPC Class Codes: G06Q 20/4014 Identity check for transactions
• CPC Class Codes: G07F 19/00 Complete banking systems; Coded card-freed arrangements adapted for dispensing or receiving monies or the like and posting such transactions to existing accounts, e.g. automatic teller machines data processing equipment for bank accounting G06Q40/02
• CPC Class Codes: G07F 19/20 Automatic teller machines [ATMs]
• 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 payment instrument in the form of a cell phone is loaded with account information and activated as a payment instrument by reading account information from a nearby RFID device, and entering a user PIN or password. In one embodiment, the account information is read from an RFID tag provided to the user, and the password is entered on the phone keypad. In a second embodiment, the account information is read from an RFID device at an ATM or kiosk after the user inserts a card into a card reader at the ATM or kiosk and enters the password at the ATM or kiosk keypad.

Claims

1. A method for activating a payment instrument in the form of a mobile device, wherein the mobile device employs telecommunications signaling and has a payment instrument module that employs separate wireless signaling for storing and transmitting an account identifier, the method comprising:

associating a personal identifier with the account identifier and providing that personal identifier to a user prior to activation of the payment instrument;

placing the mobile device in proximity to an external wireless device;

transmitting an account identifier from the external wireless device to the payment instrument module;

requesting a personal identifier be provided by the user; and

enabling the payment instrument to use the transmitted account identifier if the requested personal identifier provided by the user matches the personal identifier associated with the account identifier.

2. The method of claim 1, wherein the personal identifier is requested from the user prior to transmitting the account identifier from the external wireless device.

3. The method of claim 1, wherein the personal identifier is requested from the user after transmitting the account identifier from the external wireless device.

4. The method of claim 1, wherein the payment instrument module and the external wireless device each include an RFID device.

5. The method of claim 4, wherein the RFID device in the payment instrument module and in the external wireless device employs near field communications (NFC).

6. The method of claim 1, wherein the mobile device is a wireless telephone.

7. The method of claim 6, wherein the external wireless device is a passive RFID tag.

8. The method of claim 7, wherein the RFID tag is provided to the user prior to activation.

9. The method of claim 8, wherein the RFID tag is mailed to the user.

10. The method of claim 9, wherein the telephone includes a keypad, and where in the user initiates the activation by using a key on the keypad.

11. The method of claim 10, wherein the personal identifier associated with the account identifier is a personal identification number (PIN) provided to the user separately from the RFID tag.

12. The method of claim 11, wherein the PIN associated with the account identifier is mailed to the user separately from the RFID tag.

13. The method of claim 11, wherein the PIN associated with the account identifier is provided to the user with instructions for activating the payment instrument, wherein the consumer in accordance with such instructions places the wireless device in close proximity to the RFID tag, and wherein the user receives further instructions on the display of the telephone, including an instruction to enter the PIN at the keyboard.

14. The method of claim 6, wherein the external wireless device is an active or hybrid RFID device located at a publicly accessible terminal.

15. The method of claim 14, wherein the terminal is a self-service terminal.

16. The method of claim 15, wherein the self-service terminal is an ATM.

17. The method of claim 16, wherein the user receives a card for use in activating the payment instrument, the card including the account identifier.

18. The method of claim 17, wherein the account identifier is stored on a magnetic stripe on the card.

19. The method of claim 18, wherein the card is inserted into a card reader at the ATM in order to initiate the activation of the payment instrument.

20. The method of claim 19, wherein the requested PIN is provided by the user at a keyboard at the ATM.

21. The method of claim 1, wherein the account identifier includes data identifying either the user or an account of the user.

22. A system for activating an payment instrument in the form of an RFID enabled telephone, the telephone including an RFID device for storing and transmitting an account identifier, the system including;

a PIN associated with the account identifier;

an external RFID device for transmitting the account identifier to the telephone; and

a programmed processor for instructing a user to enter a PIN at a keypad associated with either the external device or the telephone, and activating the payment instrument if the PIN entered at the keypad matches the PIN associated with the account identifier.

23. The system of claim 22, wherein external RFID device is a passive RFID tag provided to the user, wherein the programmed processor is part of the telephone and instructs the user to enter a PIN on the keypad of the telephone.

24. The system of claim 22, further comprising a financial host storing a record of the PIN associated with the account identifier, wherein the telephone transmits the user entered PIN to the financial host, and wherein the financial host provides an acceptance message to the telephone if the PIN stored at the financial host matches the user entered PIN.

25. The system of claim 24, wherein the telephone includes a payment instrument module, wherein the payment instrument module comprises the RFID device, a security processor and a memory, and wherein the programmed processor is the security processor.

26. The system of claim 24, wherein telephone comprises a master control processor and wherein the programmed processor is the master control processor.

27. The system of claim 22, wherein the external RFID device is an active or hybrid RFID device located at a self-service terminal, wherein the self-service terminal includes a display and a keypad, and wherein the programmed processor instructs the user at the self-service display to enter a PIN on the keypad of the self-service terminal.

28. The system of claim 27, wherein the self-service terminal is an ATM.

29. The system of claim 28, wherein the user is provided a card having the account identifier stored thereon, and wherein the user provides the card to a card reader at the ATM in order to initiate the activation of the payment instrument.

30. A system for activating a payment instrument in the form of a mobile device, wherein the mobile device employs telecommunications signaling and has a payment instrument module that employs separate wireless signaling for storing and transmitting an account identifier, the system comprising:

means for associating a personal identifier with the account identifier and providing that personal identifier to a user prior to activation of the payment instrument;

means for transmitting an account identifier from the external wireless device to the payment instrument module when the mobile device is placed in proximity to an external wireless device;

means for requesting a personal identifier be provided by the user; and

means for activating the payment instrument to use the transmitted account identifier if the requested personal identifier provided by the user matches the personal identifier associated with the account identifier.

31. A method for activating a payment instrument for use by a consumer, wherein the payment instrument comprises a wireless telecommunications device using telecommunications signaling, and an RFID unit integrated with the wireless device, the RFID unit using short range proximity signaling separate from the telecommunications signaling and for providing an account identifier to an RFID reader in order to conduct transactions, the method comprising:

associating a personal identification number (PIN) with an account identifier and providing that PIN to the consumer;

placing the wireless unit in close proximity to an external RFID device;

transmitting the account identifier from the external RFID device to the integrated RFID device,

requesting a PIN be provided by the consumer;

activating the payment instrument to use the transmitted account identifier if the requested PIN provided by the consumer matches the PIN associated with the account identifier.