Supervision of transactions with chip cards

• US 5,770,844 A
• Filed: 10/25/1996
• Issued: 06/23/1998
• Est. Priority Date: 10/26/1995
• Status: Expired due to Term

• Current Assignee: PayPal, Inc. (PayPal Holdings, Inc.)
• Original Assignee: International Business Machines Corporation
• Inventors: Henn, Horst
• Primary Examiner(s): PITTS, HAROLD I
• Application Number:
  US08/736,888
• Time in Patent Office: 606 Days
• Field of Search: 235/379, 235/380, 902/26
• US Class Current: 235/380
• 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 7/082 Features insuring the integrity of the data on or in the card
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

Abstract

A transaction audit system is disclosed comprising a chip card, for completing a transaction between the holder of the chip card and a transaction partner such as a merchant. During the transaction, a transaction identifier is generated uniquely identifying the transaction. For completing execution of the transaction by posting of the payment amount to the merchants account, the chip card transmits a transaction receiver data record comprising the transaction identifier, and further data, if required, to a third party. To allow auditing the transaction settlement posting accuracy, the transaction provider also transmits a transaction provider data record comprising the corresponding transaction identifier to the third party. The third party is then able compare the receiver data record and the provider data record and identify possible irregularities, such as possible errors or manipulations in the transaction system, or intentional or non-intentional manipulation by the participants to the transaction, particularly the transaction receiver. The transaction identifier identifies both the transaction receiver data record and the transaction provider data record as being data records belonging to the same transaction.

Claims

1. Method for supervising a transaction between a transaction provider and a transaction receiver, using a chip card comprising the steps of:

providing a connection between the transaction provider and the transaction receiver, the connection including the chip card communicating with a chip card transceiver;

performing the transaction wherein a transaction identifier is generated to identify the transaction;

storing the transaction identifier in the chip card;

transmitting a transaction receiver data record, comprising the transaction identifier to a third party for completion of the transaction; and

transmitting a transaction provider data record, comprising the transaction identifier to the third party for audit of the transaction.

2. Method of claim 1, further comprising the step of:

comparing a transaction receiver data record with a transaction provider data record using a transaction identifier of a respective transaction to check that the transaction has been correctly settled.

3. Method of claim 2, further comprising the step of:

setting a check parameter, so that the transfer of the transaction provider data record to the third party by the transaction provider is carried out only when the check parameter for the transaction is set.

4. Method of claim 3, wherein the check parameter is set by the third party.

5. Method of claim 3, wherein the check parameter is set by a holder of the chip card.

6. Method of claim 4, wherein the check parameter is set so that the transaction provider data record is transmitted by the transaction provider to the device of third party only if the transaction meets a presettable criterion.

7. Method of claim 6, wherein the check parameter is set according to stochastic criteria.

8. Method of claim 4, wherein the transmission of the transaction provider data record to the third party occurs during an on-line contact with a transceiver device following the transaction.

9. Method of claim 2, further comprising the step of;

evaluating information obtained from comparison of the transaction receiver data record and transaction provider data record and from the system in which the transaction is executed.

10. Method of claim 9, wherein the transaction identifier and the transaction provider data record do not contain information identifying the transaction provider.

11. Method of claim 5 wherein the transaction provider receives a voucher of the executed transaction after the transmission of the transaction provider data record to the third party.

12. A system for supervising a transaction between a payor and a payee using a chip card, comprising:

a payee device including a transceiver for providing a payment connection between the chip card of the payor and the payee device of the transaction receiver;

means in the card for generating a transaction identifier to identify the transaction;

a storage in the card for storing the transaction identifier;

a transmission path for transmitting a transaction receiver data record comprising the transaction identifier from the payee device to a third party facility for a completing settlement of the transaction;

a transmission path for transmitting a transaction provider data record comprising the transaction identifier from the card of the payor to the third party facility;

whereby the third party may supervise transfer of the transaction amount to the account of the payee.

13. Apparatus for supervising a transaction between a transaction provider and a transaction receiver in a system comprising a transaction provider chip card and a transaction receiver facility for communicating with the chip card and for performing the transaction between the transaction provider and the transaction receiver comprising:

means in the chip card for generating a transaction identifier from a random number, the transaction amount, and a transaction receiver identifier;

a supervising facility for receiving a transaction receiver data record, comprising the transaction identifier, from the transaction receiver facility;

the supervising facility also receiving a transaction provider data record comprising the transaction identifier, from the transaction provider chip card;

a comparator in the supervising facility comparing the transaction receiver data record with the transaction provider data record using the transaction identifier.