Smart card system and method for transferring value

• US 5,936,221 A
• Filed: 10/02/1997
• Issued: 08/10/1999
• Est. Priority Date: 10/02/1997
• Status: Expired due to Fees

• Current Assignee: Bridgepoint Systems, Inc. (DeWaay Financial Network LLC)
• Original Assignee: Bridgepoint Systems, Inc. (DeWaay Financial Network LLC)
• Inventors: Sturm, Gary, Corder, Thomas E.
• Primary Examiner(s): Le, Thien Minh
• Assistant Examiner(s): FUREMAN, JARED
• Application Number:
  US08/942,748
• Time in Patent Office: 677 Days
• Field of Search: 235/375, 235/379, 235/380, 235/381, 235/382, 235/382.5, 235/384, 235/451, 235/492, 902/26, 340/825.3, 340/825.31, 340/825.32, 340/825.33, 340/825.34, 340/825.35, 705/39, 705/41, 705/42, 705/44, 380/24
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence

Abstract

A stored value system and method comprising a central server apparatus (10), one or more value added terminals (12), and one or more money-activated machines (14). The value added terminal (12) is designed to read smart cards (16) and to add cash value to the cards upon customer (18) input of an appropriate authorization code (22). The money-activated machine (14) is designed to read smart cards, and reprogram them by deducting a cash value amount corresponding to the customer'"'"'s use of the machines. The central server apparatus (10) receives calls from customers requesting an authorization code for use with a value added terminal, and in response thereto, verifies funds in a pre-established customer account and provides an active authorization code.

Claims

1. A system for transferring value from an account of a customer to a smart card for use in operating money-activated machines, comprising

a central server apparatus having a storage device with a plurality of active authorization codes each having a cash value associated therewith,

a value added terminal remote to the central server apparatus and including on-board secure memory storing the authorization codes and associated cash values of the central server apparatus and an input device responsive to customer input of the authorization code associated with the customer'"'"'s request, the total number of possible authorization code inputs being substantially greater than the number of authorization codes stored in the secure memory,

and the value added terminal further adapted to add cash value onto the smart card in an amount equal to the cash value associated with the inputted authorization code and deactivate the inputted authorization code so that subsequent input of the deactivated authorization code will not cause cash value to be added onto the smart card,

whereby a customer can telephone the central server apparatus and obtain an authorization code that corresponds with a requested cash value transfer, which authorization code the central server apparatus provides upon verifying the availability of funds in the customer'"'"'s account, and the customer can then input the authorization code into the input device of the, value added terminal, whereafter the value added terminal adds the cash value associated with the inputted authorization card onto the smart card and dispenses the programmed smart card to the customer, whereafter the customer can use the smart card to operate a money-activated machine.

2. The system of claim 1 wherein,

the central server apparatus also including a communications device for receiving a communication from the customer requesting transfer of value and verifying the availability of funds in the account of the customer and upon verification providing an authorization code with a cash value corresponding to the customer'"'"'s request and deactivating the provided authorization code.

3. The system of claim 1 and further comprising,

portable means for transferring active authorization codes with associated cash values from the central service center to each value added terminal.

4. The system of claim 1 wherein,

the smart card has an onboard memory device for storing, a screening code for verifying that the smart card is associated with the system, the screening code being unique to the money-activated machine of the system,

and the value added terminal is adapted to read the screening code prior to adding cash value onto the smart card, in order to verify that the smart card is authorized for use with the system.

5. A method for transferring value from an account of a customer to a smart card for use in operating money-activated machines, comprising the steps of,

receiving a communication at a central server apparatus from a customer requesting transfer of value from the account to a smart card,

verifying from the central server apparatus the availability of funds in the account of the customer,

upon verification of available funds, providing an authorization code to the customer, the authorization code having a cash value associated therewith that equals the requested transfer of value, and deactivating the authorization code so that authorization code is no longer available to be provided to customers, the authorization code being selected from a plurality of active authorization codes, each with associated cash values, and which are stored in a memory device of the central server apparatus,

providing a value added terminal remote to the central server apparatus, the value added terminal including a memory device that stores the authorization codes and their associated cash values,

inputting the authorization code into an input device of the value added terminal that is capable of receiving a total number of authorization code inputs that is substantially greater than the number of authorization codes stored in memory,

adding cash value onto the smart card in an amount equal to the cash value associated with the inputted authorization code, and

deactivating the inputted authorization code in the memory device of the value added terminal, so that an attempt to re-input the same authorization code will not cause cash value to be added onto the smart card.

6. The method of claim 5 and further comprising the steps of,

storing a screening code on the smart card for verifying that the smart card is authorized for use with the system, the screening code being unique to the money-activated machine of the system,

and verifying the screening code prior to adding cash value onto the smart card.

7. The method of claim 5 and further comprising the step of,

activating additional authorization codes in the memory device of the central server apparatus, each additional authorization code having a cash value associated therewith, and

transferring the additional authorization codes to the memory device of the value added terminal.