Fraud resistant personally activated transaction card

• US 5,907,142 A
• Filed: 05/28/1996
• Issued: 05/25/1999
• Est. Priority Date: 12/12/1995
• Status: Expired due to Fees

• Current Assignee: Craig E. Kelsey
• Original Assignee: Craig E. Kelsey
• Inventors: Kelsey, Craig E.
• Primary Examiner(s): Porta, David P.
• Assistant Examiner(s): Rodriguez, Douglas X.
• Application Number:
  US08/655,428
• Time in Patent Office: 1,092 Days
• Field of Search: 235/380
• US Class Current: 235/380
• CPC Class Codes: G06K 19/073 Special arrangements for circuits, e.g. for protecting identification code in memory protection against unauthorised use of computer memory G06F12/14
• CPC Class Codes: G06K 19/07703 the interface being visual
• 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 20/3415 Cards acting autonomously as pay-media
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• CPC Class Codes: G07F 7/1008 Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system
• CPC Class Codes: G07F 7/1025 Identification of user by a PIN code

Abstract

A method and apparatus for preventing transaction card fraud. A transaction card has a keypad display, and a microprocessor for receiving and processing numbers and symbols entered through the keypad. A transaction access code and a corresponding transaction approval code are provided by the card issuer to the seller at the time of a transaction. The cardholder entering the transaction access code into the keypad of the card causes an authentically used card to display a symbol identical to the transaction approval code provided by the issuer. Comparison of the symbol and the transaction approval code can thus be used to authenticate a card transaction. The access code and corresponding approval code are changed by the issuer after each transaction to further aid in fraud prevention.

Claims

1. A method for preventing transaction card fraud in card-purchase transactions involving a purchase by a cardholder from a seller using a card issued by a card issuer, comprising:

issuing a transaction card to the cardholder, along with a corresponding card activation number;

the card issuer providing a transaction access code and a corresponding transaction approval code to the seller at the time each transaction is initiated, said access code and said approval code being changed after each transaction;

providing a keypad and display means on said transaction card;

providing means for receiving and processing numbers or symbols entered into said keypad;

providing said transaction access code to the cardholder and requiring the cardholder to enter said transaction access code and said card activation number into said keypad;

said receiving and processing means being pre-programmed to respond to the cardholder entering the card activation number and transaction access code by providing a symbol to be displayed by said display means, said symbol necessarily being identical to said-transaction approval code provided by the issuer when the card transaction is valid; and

verifying the authenticity of said card transaction by comparing said symbol to said transaction approval code.