Off line cash card system and method

• US 4,650,978 A
• Filed: 02/18/1986
• Issued: 03/17/1987
• Est. Priority Date: 01/23/1985
• Status: Expired due to Term

• Current Assignee: RMH Systems, Inc.
• Original Assignee: RMH Systems, Inc.
• Inventors: Fernandez, Alberto, Hudson, Robert M.
• Primary Examiner(s): NOT, DEFINED
• Application Number:
  US06/829,982
• Time in Patent Office: 392 Days
• Field of Search: 235/379, 235/381, 235/492, 235/493, 235/437, 235/438, 235/455, 235/380, 235/382, 250/569, 340/825.33, 340/825.34, 340/825.35
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/343 Cards including a counter
• CPC Class Codes: G06Q 20/347 Passive cards
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• CPC Class Codes: G07F 7/0873 Details of the card reader
• CPC Class Codes: G07F 7/125 Offline card verification

Abstract

A "bank" cash card system for handling fund transfer transactions between a payor and a payee having a magnetic "hysteresis" security arrangement. A cash card has a magnetic stripe on which the available cash balance, the identification and security information are scramble recorded. A transaction register machine reads data from the card, carries out the transaction and records the new account balance on the card. The modified information is "restored" on the card is in the form of a rescrambled code. The transaction register machine also includes a magnetic tape of the cassette type or disk for storing each transaction thereon for further processing of the information at a remote data processing center. The transaction register machine further includes a main keyboard on the side of the payee for displaying the cash balance, entering the total amount of the sale and recording the new cash balance on the card. The main keyboard is responsive to the card holder'"'"'s or customer'"'"'s keyboard which has a slot for insertion of the card for verification by entering the correct identification number known only to the card holder. A random surface pattern on a given portion of the card is preferably scanned to produce a digital number uniquely identifying the card.

Claims

1. An electronic fund transfer system for handling a card bearer'"'"'s fund transfer transaction in a trade sale comprising:

a cash card having machine sensitive information recorded thereon, including information representing an available cash balance in an account of the bearer, and a randomly mutated first enciphering key; and

a transaction register machine at the location of trade sale including means for receiving said cash card from said bearer and recording information to and reading information from said cash card,

randomly generating said first enciphering key and recording said first enciphering key on said cash card with a random mutation by recording with no a.c. or d.c. bias and no saturation,

receiving personal identification number (PIN) data from said bearer independent of said cash card, said PIN data constituting a second enciphering key,

enciphering and deciphering data to be recorded on and read from said cash card using said first and second enciphering keys,

verifying the validity of said cash card is an authorized card bearer by determining whether said received PIN data successfully deciphers information previously enciphered and recorded onto the card,

modifying said available cash balance and other information recorded on said cash card in accordance with said transaction, and

magnetically recording and storing information of the trade sale cash transaction for later processing.

2. A system according to claim 1, wherein said data processing center includes an automatic magnetic tape reader for reading the information on said tape.

3. A system according to claim 2, wherein said data processing center includes a disk file for maintaining permanent records of personal identification numbers of lost, stolen and voided cash cards.

4. A system according to claim 1, further comprising modem means, connected to said transaction register machine, for transmitting information of the cash card transactions by telephone to the data processing center for updating the cash balance in the respective accounts accordingly.

5. A system according to claim 1, wherein said magnetic recording means comprises a disk for storing thereon all cash card transactions at said transaction register machine.

6. A system according to claim 4, further comprising a timer for presetting a certain time for the transmitting of information of each transaction from said magnetic recording means to the data processing center via a telephone line.

7. A system according to claim 1, wherein said enciphering means includes:

means for combining said first and second enciphering keys in a random sequence generator array to produce a first pseudo-random string;

means for modifying data to be enciphered using said first pseudo-random string;

means for transforming said first pseudo-random string into a second pseudo-random string; and

means for scrambling components of the data to be enciphered using said second pseudo-random string as a key to the new position of each of said components.

8. A system according to claim 7, wherein said transaction register machine includes means for programming said machine to decipher said enciphered coded information stored on said cash card.

9. A system according to claim 1, wherein said means for receiving PIN data comprises a keyboard operable by the card bearer.

10. A system according to claim 9, wherein said transaction register machine includes a main keyboard operable by the seller and responsive to the entry of the correct identification number for selectively entering the cash amounts of each transaction in said register machine which in turn records the new cash balance on said cash card and simultaneously records said cash transaction on said magnetic recording means for delivery to a data processing center for transferring the information thereon to the respective cash card accounts.

11. A system according to claim 9, wherein said cash card bearer operable keyboard includes a slot for inserting said cash card thereby engaging said cash card with said transaction register.

12. A system according to claim 10, wherein said seller operable main keyboard includes a query key for displaying the cash balance on said cash card, an enter key for entering the amount of the sale into said register machine, a sale key for displaying the total amount of the transaction, a credit key and a debit key, a code key and arithmetic functions keys for selecting the operation of said register machine in completing the sale transaction.

13. A system according to claim 12, wherein said seller operable main keyboard has display windows for displaying by lighting a personal identification number error, a void card, and other information for security and for operation of said transaction register machine.

15. A system of claim 12, further comprising a data processing center including a computer unit, an automatic cassette tape or disk reader, a disk file and a printer for maintaining records of the cash card system transactions.

16. The system according to claim 13, wherein said cash transaction register machine is interconnected with a data processing center by a data transmission network.

14. An electronic fund transfer system for carrying out cash transfer transactions in business and trade sale dealings comprising:

a plastic card having a magnetic stripe containing information representing an available cash balance and other information including a first enciphering key recorded with no a.c. or d.c. bias and no saturation;

a transaction cash register machine for register recording an amount of money received and exhibiting an amount of each sale, said transaction cash register machine including

means for reading said magnetic stripe,

means for verifying the validity of said card,

means for verifying that a user of said card is an authorized card bearer,

means for modifying said cash balance and other information recorded on said magnetic stripe, and

means for magnetically recording and storing information of each transaction for further processing at a data processing center.

17. The system according to claim 14, wherein said transaction register machine includes a main keyboard operable by the seller and responsive to the entry of the correct identification number in for selectively entering the cash amounts of each transaction in said register machine which in turn records the new cash balance on said cash card and simultaneously records said cash transaction on said magnetic recording means for delivery to the data processing center for transferring the information thereon to the respective cash card accounts.

18. A system according to claim 17, wherein said seller operable main keyboard includes a query key for displaying the cash balance on a cash card, an enter key for entering the amount of the sale in said register machine, a sale key for displaying the total amount of the transaction, a credit key and a debit key, a code key and arithmetic functions keys for selecting the operation of said register machine in completing the sale transaction.

19. A system according to claim 18, wherein said seller operable main keyboard has display windows for displaying with tight emitting elements a personal identification number error, a void card, and other information for security and for operation of said transaction register machine.

20. An electronic fund transfer system for transferring funds from a bearer'"'"'s to a transferee'"'"'s account comprising:

a card having enciphered information recorded thereon including at least an available cash balance and a first enciphering key recorded with no a.c. or d.c. bias and no saturation to carry out a money transfer transaction independent of any other source of information, and

a cash card terminal machine including means for reading, recording, and displaying said information on said card.

21. A cash card system according to claim 20, wherein said cash card terminal machine includes means for transmitting said recorded information through a telephone line to a transaction register machine for carrying out the cash transfer transaction.

22. A cash card system according to claim 21, further comprising a transaction register machine which includes

means for reading information recorded on said cash card, enciphering and deciphering data, verifying the validity of said cash card, verifying that a user of said cash card is an authorized card bearer, and

modifying said information recorded on said cash card.

23. A cash card system according to claim 22, wherein said register machine includes magnetic recording means for permanently storing information regarding said cash transaction thereon.

24. A cash card system according to claim 20 further comprising a keyboard for entering a personal identification number.

25. A method of uniquely identifying a card by enciphering information thereon comprising the steps of:

randomly generating a digital number,

converting said digital number to an analog signal, and

recording said analog signal onto said card with a random mutation by recording with no a.c. or d.c. bias and no saturation.

26. A method of verifying the validity any one of a plurality of presented cards each having information enciphered thereon in an analog signal comprising the steps of:

reading said analog signal from said card, and

determining whether said analog signal contains any a.c. or d.c. bias.

27. A method of verifying that a user of an electronic fund transfer system card is an authorized card bearer, comprising the steps of:

(a) upon a first presentation of said card to the system, randomly generating a digital number;

converting said digital number to an analog signal;

recording said analog signal onto said card with a random mutation by recording with no a.c. or d.c. bias and no saturation;

reading said randomly mutated analog signal from said card;

converting said randomly mutated analog signal to a digital representation thereof; and

using said digital representation as a first enciphering key along with personal identification number (PIN) data supplied by said user as a second enciphering key to encipher onto said card an identifying datum which is uniformly used throughout said system, and

(b) and upon a subsequent presentation of said card to the system,

reading said enciphered identifying datum from said card;

reading said randomly mutated analog signal from said card;

converting said randomly mutated analog signal to a digital representation thereof; and

using said digital representation as a first enciphering key along with PIN data supplied by said user as a second enciphering key to attempt to decipher said identifying datum,

whereby a successful deciphering of said identifying datum indicates that said user is an authorized card bearer.

28. A method of enciphering and recording onto a card information used in an electronic fund transfer system, including an available cash balance, comprising the steps of:

randomly generating a digital number;

converting said digital number to an analog signal;

recording said analog signal onto said card with a random mutation by recording with no a.c. or d.c. bias and no saturation;

reading said randomly mutated analog signal from said card;

converting said randomly mutated analog signal to a digital representation thereof;

using said digital representation as a first enciphering key along with personal identification number (PIN) data supplied by a bearer of said card as a second enciphering key to encipher said electronic fund transfer system information; and

recording said enciphered information onto said card.

29. A method according to claim 28, wherein said steps are repeated with each subsequent use of said card.