Method and apparatus for recording magnetic information on traveler's checks
First Claim
1. A method for preventing fraudulent use of a cash document of the type having a first face with a first region for containing a signature, a second region for containing a countersignature, and a third region containing a denomination value, said method comprising the steps of:
- encoding a unique identifying code in a magnetic stripe prior to issuance of said cash document, said magnetic stripe positioned on a face of said cash document and parallel to one edge of said cash document;
recording in a database at a central location said unique identifying code and a status code indicating a status at issuance of said cash document to a bearer;
altering said status code of said cash document in said database if the status of said cash document changes prior to encashment;
swiping said cash document through a swipe reader at a point of encashment, said swipe reader having means to read said unique identifying code encoded in said magnetic stripe;
transmitting said unique identifying code to said central location;
based on said transmitted unique identifying code, determining from said database said status of said cash document;
transmitting a status indication from said central location to said point of encashment;
receiving said status indication at said point of encashment; and
processing said cash document dependent on said status indication.
1 Assignment
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Accused Products
Abstract
A method and apparatus for recording magnetic information on traveler'"'"'s checks. The invention is directed to a method of making it easier to validate traveler'"'"'s checks and to identify stolen or counterfeit traveler'"'"'s checks. The method utilizes an information carrying medium, such as a magnetic "stripe," on the surface of, or embedded into, the traveler'"'"'s check itself. The information carrying medium is encoded with the unique identifying code of the check. Further, a database object corresponding to the unique identifying code is stored along with check status information in a central database. At the time of encashment, the traveler'"'"'s check is run through a swipe-style reader, and the unique identifying code is sent to a central database for verification. The central database returns an indication to the merchant as to whether the traveler'"'"'s check is valid.
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Citations
19 Claims
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1. A method for preventing fraudulent use of a cash document of the type having a first face with a first region for containing a signature, a second region for containing a countersignature, and a third region containing a denomination value, said method comprising the steps of:
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encoding a unique identifying code in a magnetic stripe prior to issuance of said cash document, said magnetic stripe positioned on a face of said cash document and parallel to one edge of said cash document; recording in a database at a central location said unique identifying code and a status code indicating a status at issuance of said cash document to a bearer; altering said status code of said cash document in said database if the status of said cash document changes prior to encashment; swiping said cash document through a swipe reader at a point of encashment, said swipe reader having means to read said unique identifying code encoded in said magnetic stripe; transmitting said unique identifying code to said central location; based on said transmitted unique identifying code, determining from said database said status of said cash document; transmitting a status indication from said central location to said point of encashment; receiving said status indication at said point of encashment; and processing said cash document dependent on said status indication. - View Dependent Claims (2, 3, 4, 5, 6)
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7. An apparatus for preventing fraudulent use of a cash document, comprising:
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said cash document having a front face and a rear face; wherein said front face comprises a first region for containing a signature, a second region for containing a countersignature, and a third region containing a denomination value; wherein said rear face comprises a magnetic information carrying medium bearing encoded information, said encoded information comprising a unique identifying code for said cash document; a central database having a database object referenced by said unique identifying code, said database object including status information uniquely associated with said cash document; a swipe reader coupled to said central database, said swipe reader having means for reading said encoded information from said information carrying medium and for transmitting and receiving information with said central database, said swipe reader transmitting at least said unique identifying code to said central database, wherein said central database uses said unique identifying code to identify a status of said cash document, said central database causing said at least said status code to be sent to said swipe reader, and said swipe reader receiving at least said status code from said central database; and an indicator, responsive to said status code received from said central database, for indicating an attempted fraudulent use of said cash document. - View Dependent Claims (8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18)
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19. A method for purchasing goods or services using a cash document of the type having a first face with a first region for containing a signature, a second region for containing a countersignature, and a third region containing a denomination value, said method comprising:
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(a) presenting said cash document at a point of purchase, said cash document having a magnetic stripe including a unique identifying code that uniquely identifies said cash document said point of purchase having a magnetic stripe reading device coupled to a processor, said processor selectively coupled to transmit and receive information from a central database; (b) swiping said cash document through said magnetic stripe reader; (c) transmitting said unique identifying code read from said magnetic stripe to said central database; (d) determining if said unique identifying code is resident in said central database; (e) checking a status code associated with said unique identifying code; and if said status code indicates that said cash document has not been reported as stolen or previously cashed, transmitting an authorization code to said point of purchase.
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Specification