System and method for tracking memory card transactions

• US 5,521,363 A
• Filed: 02/16/1994
• Issued: 05/28/1996
• Est. Priority Date: 02/16/1994
• Status: Expired due to Term

• Current Assignee: Union Beach Limited Partnership
• Original Assignee: David H Tannenbaum
• Inventors: Tannenbaum, David H.
• Primary Examiner(s): Hajec, Donald T.
• Assistant Examiner(s): Frech, Karl D.
• Application Number:
  US08/197,234
• Time in Patent Office: 832 Days
• Field of Search: 235/375, 235/379, 235/380
• US Class Current: 235/379
• 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 20/4093 Monitoring of device authentication
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

There is disclosed a system and method of allowing a memory card user to keep track of all pertaining to the account identified by the memory card electronically in a manner separate from the central credit processing center. Under one embodiment of the system each time a credit transaction occurs itemized credit transactions are temporarily stored on the users credit card for subsequent transfer by the user to a user controlled processing system, such as a PC, for electronic entry into the users processing system. The user then may reconcile information from time to time stored on the card with information obtained from the central processing center. The system also allows for the information that is stored on the card to be used to provide information and control capabilities to the user (for example, to control a telephone network) under selective control of the user.

Claims

1. A method for use in controlling transactions pertaining to the permanent account of a user identified by a card assigned to said user by an issuer of the card where the user at the point of a card transaction usage has at least a portion of data previously stored on said card by the issuer of said card and pertaining to said permanent account sent to a central processor;

said method comprising the steps of;

receiving at said card as part of each said card transaction usage, data unique to each said card transaction usage, said card usage data being itemized transaction data pertaining to a credit transaction, said itemized data including an identification of the individual transactions and the amounts thereof; and

storing said received card transaction usage data on said card; and

transferring said card usage data, including said individual transactions and the amounts thereof, from a card on which said data has been recorded to a data storage device remote from said card and comparing said transferred data with itemized transaction data obtained from the central processor on a transaction by transaction basis.

2. The method set forth in claim 1 wherein said central processing is located remote from said point of card usage and wherein said card usage data is received from a processing unit also located remote from said point of card usage.

3. The method set forth in claim 1 wherein said data storage device has associated within it a processor containing a program which manipulates financial data and wherein said transferring step further includes the step of:

merging said data removed from said card with data previously contained within said data storage device under control of said program.

4. The method set forth in claim 3 further comprising the step of displaying said stored card usage data under control of said user.

5. The method of tracking credit transactions for individual credit card users wherein each said credit card user from time to time uses a credit card at a merchant'"'"'s place of business to pay for goods or services received and wherein said merchant, as part of the credit card payment transaction, itemizes each said purchase, said method comprising the steps of:

placing a credit card of a user in proximity to an electronic data transfer device;

transmitting information stored on said card and accessed therefrom by said transfer device to a data processing center;

transmitting to said data processing center information under control of said merchant and pertaining to said itemized purchases of said user, said information containing amounts to be debited from said user'"'"'s account and containing an identification of the reason for each such debit;

storing on said user'"'"'s card via said transfer device said information pertaining to said itemized transaction;

transferring credit card information pertaining to said user from said central processing center to a user controlled processing device; and

comparing under control of said user controlled processing device said transferred data with said user'"'"'s card stored data.

6. The method set forth in claim 5 further comprising the step of:

selectively transferring under said user'"'"'s control said stored itemized transaction data from said card to said particular user controlled processing device.

7. The method set forth in claim 5 further comprising the step of:

storing on said card as part of said storing step data pertaining to the credit card balance available to said card.

8. The method set forth in claim 5 wherein said second transmitting step includes the step of:

transferring to said processing center data previously stored on said card pertaining to itemized transactions.

9. The method set forth in claim 5 further comprising the step of:

selectively displaying to said particular user certain combinations of data stored on said card.

10. The method set forth in claim 5 further comprising the step of:

displaying to said particular user under control of data contained in said card credit warning signals at preestablished levels.

11. The method of managing a credit card system in which credit cards are made available to individual users by a central processing source and wherein each user, by presenting the credit card assigned to that user to a vendor, can obtain items of value from that vendor who in turn uses information, including account numbers embedded in the credit card by the central processing source prior to delivery of the credit card to that user, for communicating to the central source the specific transactional details of each commercial transaction involving the credit card and wherein the central source credits the account of the vendor for the amount of each transaction and debits the account of the assigned user for each transactional item communicated from the vendor and wherein on a periodic basis the central processing source delivers a payment statement to the user, the payment statement itemizing in machine readable form the details of each transaction that has occurred with respect to all vendors within a defined period, the improvement comprising the steps of

contemporaneously with certain vendor transactions storing on the credit card the specific transactional details of that transaction that are communicated to the central source;

machine comparing the stored specific transactional details from the credit card against the specific transactional details as contained on the periodic statement; and

providing an indication to the user that a match has occurred as a result of the last-mentioned step.

12. The method set forth in claim 11 further including the step of:

removing from the credit card all stored transactional details that have been matched against the periodic statement.