Method and apparatus for generating personal identification numbers for use in consumer transactions

• US 5,892,827 A
• Filed: 06/14/1996
• Issued: 04/06/1999
• Est. Priority Date: 06/14/1996
• Status: Expired due to Term

• Current Assignee: Catalina Marketing Corporation
• Original Assignee: Catalina Marketing International Incorporated (Catalina Marketing Corporation)
• Inventors: Beach, Kirk W., Mercer, George E.
• Primary Examiner(s): Tarcza, Thomas H.
• Assistant Examiner(s): Laufer, Pinchus M.
• Application Number:
  US08/663,680
• Time in Patent Office: 1,026 Days
• Field of Search: 395/214, 380/24, 380/51, 340/825.34, 705/14, 705/1
• US Class Current: 705/76
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/3821 Electronic credentials
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0225 Avoiding frauds
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G06Q 30/0238 at point-of-sale [POS]
• CPC Class Codes: G06Q 30/0248 Avoiding fraud
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered
• CPC Class Codes: G07G 1/145 PLU-management

Abstract

A system for generating authorization codes, such as personal identification numbers, at the point of distribution of certificates of value on which the authorization codes are to be printed or otherwise encoded. Because the authorization codes are generated in real time, there is no need to store and safeguard an inventory of preprinted certificates, or even an inventory of activated authorization codes. The principles of the invention apply both to systems for generating incentive award certificates and to systems for generating purchased certificates of value. The incentive awards or certificates of value are tokens of prepayment for a service, such as long-distance telephone service or other service. The authorization codes generated for inclusion with the value certificates are unique and seemingly random. They are generated by taking a non-random unique code, such as a sequence code, and encrypting it to obtain seemingly random, but unique, authorization codes. Because each authorization code is not generated until immediately prior to distribution of the certificate with which the code is associated, security and other problems pertaining to preprinted certificates and cards are eliminated.

Claims

1. A method for generation of a certificate, in a retail store, the certificate providing valuable credit or services, the method comprising the steps of:

detecting the occurrence of an event at a point of sale in a retail store, the event having been preselected as an event to trigger the generation of a certificate of value for distribution to a customer of the retail store;

generating for a consumer in the retail store a certificate of value in response to the foregoing detecting step;

generating a unique authorization code at the same time that the certificate is generated; and

including the authorization code in the certificate, wherein the authorization code must be presented by the consumer to validate the certificate, and wherein the certificate is self-validating and has no existence or value prior to its generation, and no value until the authorization code is validated, and whereby there is no requirement to keep an inventory of either certificates or authorization codes prior to their distribution.

2. A method as defined in claim 1, wherein:

the step of generating a unique authorization code includes forming a unique code and encrypting it to obtain the unique authorization code.

3. A method as defined in claim 2, wherein:

the step of forming a unique code includes combining a unique sequence number with other codes.

4. A method as defined in claim 3, wherein the step of encrypting includes:

combining the unique code with a key code; and

positionally rearranging the code obtained from the combining step, to obtain the unique and seemingly random authorization code.

5. A method as defined in claim 2, and further comprising the step of:

validating the authorization code when the certificate is presented to claim its value, wherein the validating step includes decrypting the authorization code to recover the unique code, and then verifying that the unique code is valid.

6. A method as defined in claim 1, and further comprising the step of:

using the authorization code on the certificate to obtain a valuable service.

7. A method as defined in claim 1, wherein:

the step of detecting the occurrence of an event includes detecting the purchase of at least one triggering product in the retail store; and

the certificate is in the nature of a reward for purchasing the triggering product.

8. A method as defined in claim 1, wherein:

the step of detecting the occurrence of an event includes detecting a request to purchase a selected certificate of value in the retail store.

9. Apparatus for generating a certificate providing valuable credit or services to a customer of a retail store, the apparatus comprising:

an in-store computer to detect the occurrence of an event that has been preselected to trigger the generation of a certificate of value for distribution to a customer;

a certificate generator for generating a certificate in response to the detection of a triggering event; and

an authorization code generator, for generating a unique authorization code at the same time that the certificate is generated;

wherein the authorization code is included in the generated certificate, for use by the customer in deriving something of value from the certificate, which becomes self-validating on generation, but has no value until the authorization code is verified, and whereby there is no requirement to keep an inventory of either certificates or authorization codes prior to their distribution.

10. Apparatus as defined in claim 9, wherein the authorization code generator includes:

encryption logic, for encrypting a unique code to obtain the unique authorization code.

11. Apparatus as defined in claim 10, wherein the encryption logic includes:

a code combiner, for combining the unique code with a key code to obtain a first-level encrypted code; and

code sequence rearrangement logic, for changing the sequence of digits in the first-level encrypted code, to obtain the unique authorization code.

12. Apparatus as defined in claim 10, and further comprising:

validation logic, for decrypting the authorization code to recover the unique code, and then verifying that the unique code is valid.

13. Apparatus as defined in claim 9, wherein:

the certificate generator operates in response to the purchase of a preselected triggering product, and generates a reward certificate.

14. Apparatus as defined in claim 9 wherein:

the certificate generator operates in response to a request to purchase a certificate of value.

15. A method for generation of a token evidencing prepayment for a service, for distribution to a consumer in a retail store, the method comprising the steps of:

detecting the occurrence of an event that has been preselected to trigger generation of a token of prepayment for distribution to a consumer; and

generating the token of prepayment token in response to the foregoing detecting step, wherein the step of generating the token of prepayment includes generating a unique authorization code for inclusion as part of the token;

wherein the token is self-validating and has no existence or value prior to its generation, and no value prior to verification of the authorization code when the token is used, and whereby there is no need to maintain an inventory of tokens or authorization codes.