System and Method for Secure Transactions
First Claim
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1. A system for secure transactions, comprising:
- a transaction card having a self-programming region configured for periodic update of a verification code;
a server comprising a means for authenticating a transaction based on the periodically updated verification code; and
a network for transmitting data between the card and the server;
wherein track bit patterns are disabled during the verification code update such that a card read during verification code update causes a read error and not a validation failure.
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Abstract
A system and method for conducting secure transactions are disclosed. The system includes a transaction card having a self-programming region for periodic update of a verification code, a server used for authenticating the card, and a network for transmitting data between the transaction card and the server. The method includes transmitting a current verification code and a current timestamp from the card to a transaction clearinghouse. Authentication of the transaction card is done by comparing the current verification code received and a reference verification code generated by the server, and a decision is made by the clearinghouse whether to approve the transaction.
58 Citations
15 Claims
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1. A system for secure transactions, comprising:
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a transaction card having a self-programming region configured for periodic update of a verification code; a server comprising a means for authenticating a transaction based on the periodically updated verification code; and a network for transmitting data between the card and the server; wherein track bit patterns are disabled during the verification code update such that a card read during verification code update causes a read error and not a validation failure. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8)
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9. A method for conducting a transaction, comprising:
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initiating a transaction request by presenting a transaction card having a current verification code, the current verification code being updated by a self-programming region of the transaction card at predetermined times; transmitting a card identification number and the current verification code to a transaction clearinghouse; comparing the current verification code received by the clearinghouse with a reference verification code generated for the transaction card by a server at the clearinghouse; and deciding whether to approve the transaction request based on whether a match exists between the current verification code and the reference verification code; wherein track bit patterns are disabled during the verification code update such that a card read during verification code update causes a read error and not a validation failure.
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10. (canceled)
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11. The method of 10, wherein the current verification code is computed by executing an algorithm residing on the transaction card and the algorithm comprises a pseudo-random number generator.
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12. The method of 11, wherein the algorithm further comprises the current time as a parameter for computing the verification code.
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13. The method of 11, wherein the reference verification code is generated by the server at the clearinghouse using a copy of the algorithm.
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14. The method of 11, further comprising:
generating the reference verification code at the time of receiving the transaction request.
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15. The method of 11, further comprising:
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prior to receiving the transaction request, generating a plurality of the reference verification codes corresponding to the predetermined times; storing the plurality of the reference verification codes in a database at the clearinghouse; and retrieving the reference verification code corresponding to the current time.
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Specification