Account transaction system

• US 5,231,569 A
• Filed: 06/12/1990
• Issued: 07/27/1993
• Est. Priority Date: 06/12/1990
• Status: Expired due to Fees

• Current Assignee: Associates Commerce Solutions Incorporated
• Original Assignee: Sears Payment Systems Incorporated
• Inventors: Rhoads, Bruce C., Myatt, Larry H.
• Primary Examiner(s): Envall, Jr., Roy N.
• Assistant Examiner(s): BODENDORF, ANDREW
• Application Number:
  US07/537,082
• Time in Patent Office: 1,141 Days
• Field of Search: 364/401, 364/402, 364/408, 364/405, 364/406, 235/379, 235/380, 235/382.5, 235/375
• US Class Current: 705/38
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• 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 system for performing transaction from an account such as a checking account which adds a measure of assurance of payment to the account issuer is provided. The system includes a remote transaction terminal located at the point of the transaction. The terminal reads data on a card which identifies the card holder. The amount and type of the transaction are inputted into the transaction terminal. A transaction processor is provided which accesses two negative data files. One of the negative data files is compiled by the account issuer and the other of the negative data files is compiled by a number of account issuers such as by a number of different merchants. The data identifying the card holder is compared to the data in both of the negative files and an authorization or denial signal is generated in response to the comparison.

Claims

1. An account transaction system for performing a transaction at a transaction point from an account issued by an account issuer to an account holder, said system servicing a plurality of account issuers, said system comprising:

a transaction card carrying account holder data identifying the account holder;

a remote transaction terminal located at the transaction point, said terminal having means for reading the account holder data carried on said card, and a means for inputting transaction terminal information, said transaction terminal information identifying a type of transaction, and an amount for said transaction, such that a unit of transaction information data is generated by combination of the account holder data and the transaction terminal information, said remote transaction terminal having means for generating an authorization request signal for said transaction information data;

memory means including a first database having a first set of negative data of a plurality of account holders identifying account holders that present an unacceptable risk of non-payment to account issuer, said first database compiled from data only from said account issuer, and a second database having a second set of negative data of a plurality of account holders identifying account holders that present on unacceptable risk of non-payment to account issuer, said second set of negative data compiled from data from said plurality of account issuers;

an authorization processor operatively connected to receive said authorization request signal from said remote transaction terminal, said authorization processor including a logic means for;

a) comparing said transaction information data for said account holder to said data in said first and second sets of negative data;

b) generating an authorization response signal, said response signal comprising one of a first signal and second signal, said first signal indicating authorization of an account transaction if there is no match between said transaction information data and both of said first and second sets of negative data and a second signal indicating non-authorization of said transaction if there is a match between said transaction information and said first set or said second set of negative data, said authorization processor operatively connected to transmit said responsive signal to said remote transaction terminal.

7. An account transaction system as defined in claim 1 wherein said transaction terminal further includes a logic means for batching a plurality of authorized transactions occurring at said transaction terminal over a predetermined time period.

8. An account transaction system of claim 1 wherein said logic means of said authorization processor further includes a means for limiting to plurality of times determined by said account issuer the number of account transactions said authorization processor authorizes for the card holder over a time period determined by said account issuer.

9. An account system as claimed in claim 1 wherein said transaction card includes a magnetic stripe containing account holder data identifying said card holder.

10. An account transaction system of claim 1 wherein said transaction terminal further includes a logic means for limiting to a plurality of times determined by said account issuer the number of account transactions said authorization processor authorizes for the card holder over a time period determined by said account issuer.

2. An account transaction system for performing a transaction at a transaction point from an account issued by an account issuer to an account holder, said system being operatively connected to be accessible by a plurality of account issuers, said system comprising:

a transaction card carrying account holder data identifying an account holder;

means for entering and storing in a first database a first set of negative file data identifying account holders that present an unacceptable risk of non-payment to account issuer, said first set of data compiled from data only from said account issuer;

memory means including a second independent database having a second set of negative data of a plurality of account holders identifying account holders that present an unacceptable risk of non-payment to account issuer, said second set of negative data compiled from data from said plurality of account issuers;

a remote transaction terminal located at the point of the transaction, said terminal having

(a) means for reading the account holder data carried on said card,

(b) means for inputting and recording transaction terminal information said transaction terminal information, identifying a type of transaction, and an amount for said transaction,

(c) means for generating a unit of transaction information data, said transaction information data combining said account holder data and said transaction terminal information, and

(d) means for transmitting an authorization request signal;

an authorization processor operatively connected to receive said authorization request signal from said remote transaction terminal, said authorization processor including a logic means for;

a) comparing said data for said account holder to said data in said first and second sets of negative data;

b) generating an authorization response signal, said response signal comprising one of a first signal and second signal, said first signal indicating authorization of an account transaction if there is no match between said transaction information data and both of said first and second sets of negative data and a second signal indicating non-authorization of said transaction if there is a match between said transaction information data and said first set or said second set of data; and

a means for communicating said response signal to said remote transaction terminal.

3. An account transactions system as defined in claim 2 wherein said transaction terminal further includes logic means for batching a plurality of authorized transactions occurring at said transaction terminal over a predetermined time period.

4. An account transaction system of claim 2 wherein said logic means of said authorization processor further includes a means for limiting to plurality of times determines by said account issuer the number of account transactions said authorization processor authorizes for the card holder over a time period determined by said account issuer.

5. An account system as claimed in claim 2 wherein said transaction card includes a magnetic stripe containing account holder data identifying said card holder.

6. An account transaction system of claim 2 wherein said transaction terminal further includes a logic means for limiting to a plurality of times determined by said account issuer the number of account transactions said authorization processor authorizes for the card holder over a time period determined by said account issuer.