METHOD OF AND APPARATUS FOR CREDIT VERIFICATION

• US 3,727,186 A
• Filed: 02/26/1971
• Issued: 04/10/1973
• Est. Priority Date: 02/26/1971
• Status: Expired due to Term

• Current Assignee: George D. Telepko, Kenrick O. Stephenson Jr, Strakosch C. Philip
• Original Assignee: George D. Telepko, Kenrick O. Stephenson Jr, Strakosch C. Philip
• Inventors: Stephenson, Kenrick O. Jr., Telepko, George D., Strakosch, C. Philip
• Primary Examiner(s): Yusko, Donald J.
• Application Number:
  US05/119,254
• Time in Patent Office: 774 Days
• Field of Search: 235/61.7B,61.11A,61.11C 340/149R,149A,152R 179/2CA
• US Class Current: 340/5.4
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02

Abstract

A credit verification system comprising a multiplicity of pointof-sale terminals and a programmed central processing unit with data storage equipment communicating with the terminals for automatically performing a credit check on the accounts corresponding to the credit cards inserted in the terminals. Each of the terminals is adapted to receive and operate with a plurality of different credit cards representing different credit card plans with the data storage equipment storing account information for each of the credit plans. After the various credit checks are performed by the central processing unit, the transaction authorization is communicated to the terminals. In certain instances, the central processing unit may refer the transaction to a video display terminal where an operator establishes voice communication with an external authorization center.

Claims

1. A system for verifying the credit of credit card holders prior to transactions:

a plurality of credit card sets corresponding to a plurality of credit card plans, each credit card in each of said sets carrying indicia identifying a credit card plan and an account number in said credit card plan;

a plurality of point-of-transaction terminals, each of said terminals adapted to generate signals representing transaction data including the account number, the dollar amount of the transaction and the credit card plan;

a communication link between each of said terminals and a central location for transmitting said signals representing the transaction data to said central location;

a central processing means located at said central location and connected to said communication link, said central processing means receiving the transmitted signals representing the transaction data, said central processing means including;

a means for storing transaction authorization requirements for each credit card plan, said requirements differing for different credit card plans and being the same for a substantial number of credit cards in a given credit card plan for various transactions at a given terminal;

a means for retrieving the stored transaction authorization requirements of a transmitted credit card plan; and

a means for determining if the transmitted dollar amount satisfies said stored authorization requirements for said transmitted credit card plan.

2. A system of claim 1 wherein said central processing means generates signals representing transaction authorization and refusal and said communication link transmits said transaction authorization and refusal signals to the appropriate terminal.

3. A system of claim 2 including visual display authorization means adapted to be attended by an operator;

and an additional communication link between said visual display means and said central processing means for transmitting operator authorization of a transaction.

4. The system of claim 1 wherein said central processing means further comprises:

a means for storing the status of account numbers in each of said credit card plans; and

a means for retrieving the stored status of a transmitted account number.

5. The system of claim 4 wherein each of said terminals is adapted to generate signals identifying said terminals, said stored transaction requirements for a given credit card plan varying as a function of the particular terminal involved in each transaction.

6. The system of claim 1 wherein said central processing means comprises means for storing a log of each of said transactions occurring at each of said terminals.

7. The system of claim 2 wherein said central processing means including buffer storage means for each of said terminals for indicating the pendency of transactions at the terminals.

8. The system of claim 1 wherein each of said terminals comprises means for applying machine readable transaction data to a transaction draft.

9. The system of claim 8 wherein each of said terminal means comprises means for applying transaction authorization data from said central processing means to said transaction draft.

10. A method of checking credit of cRedit card holders belonging to different credit card plans by utilizing a single remote terminal located at each remote transaction point and a central processing means comprising a digital computer and digital storage means located at a central location, said method comprising the steps of:

storing transaction authorization requirements for each of said credit card plans in said digital storage means, said transaction authorization requirements varying as a function of the particular credit card plan involved in the transaction;

generating signals at said remote terminals representing transaction data, said transaction data including the credit card plan involved in a transaction and the dollar amount of the transaction;

transmitting said signals representing said transaction data from said remote terminals to said central processing means;

retrieving from said digital storage means transaction authorization requirements for each transmitted credit card plan; and

determining with said digital computer if the transmitted transaction data satisfies the retrieved transaction authorization requirements.

11. A method of claim 31 wherein said transaction authorization requirements for a given credit card plan vary as a function of the particular terminal involved in each transaction, said method further including the steps of:

generating signals at said terminals representing transaction data including the remote terminal involved in each transaction;

transmitting from said terminals said signals representing the terminal involved in each transaction to said central location so as to permit a determination by said digital computer of whether the transmitted dollar amount of the transaction satisfies the transaction authorization requirements for the particular terminal and particular credit card plan involved in each transaction.

12. The method of claim 11 further comprising the steps of:

storing the status of accounts in each of said credit plans at said digital storage means, generating signals representing transaction data including the account number involved in each transaction at said remote terminals, transmitting said signals representing said transaction data including each said account number to said central location, determining with said digital computer the status of each transmitted account number.

13. The method of claim 10 including the step of performing a check-digit validation on the identified account for the transmitted credit card plan at said central processing means.

14. The method of claim 13 including the step of determining extraordinary activity for the identified account at said central processing means.