Method system and portable data medium for paying for purchases

• US 6,047,888 A
• Filed: 05/08/1998
• Issued: 04/11/2000
• Est. Priority Date: 01/08/1996
• Status: Expired due to Fees

• Current Assignee: Juergen Dethloff
• Original Assignee: Juergen Dethloff
• Inventors: Dethloff, Juergen
• Primary Examiner(s): LEE, MICHAEL GUNYOUNG
• Application Number:
  US09/074,802
• Time in Patent Office: 704 Days
• Field of Search: 235/380, 235/381, 235/375, 235/379, 235/492, 902/25, 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 20/3572 Multiple accounts on card
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G07F 7/0886 the card reader being portable for interacting with a POS or ECR in realizing a payment transaction
• 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 data medium in the form of a check card is known. Such check cards include a memory in which at least one amount of money is stored. If the user wishes to purchase or use a product or service, the amount of money is debited by the vendor. If the vendor intents to defraud the user, or simply makes an unintentional error, too much money may be debited from the data medium by a vendor terminal without the user noticing immediately that this has occurred. This type of fraud or error may also occur when using other data mediums, including credit cards, debit cards, special purpose cards such as telephone cards and transportation cards, and the like. In order to avoid such fraud or error, further memories are provided in the data medium according to the present invention, wherein one internal memory serves solely for the purpose of accepting amounts of money from outside. The amount needed for a purchase is input by a vendor terminal into a special input memory on the medium. With the aid of a small terminal which the user carries with him, the amount is read and if acceptable, the user uses one key stroke to authorize loading that amount into an externally accessible memory. Since from outside, amounts can only be deducted from this externally accessible memory, it is impossible for erroneous or fraudulent amounts to be deducted from the data medium. Several externally accessible memories can be provided.

Claims

1. A method for paying for purchases including goods and services of vendors, by means of a portable pocket terminal comprising a first terminal, and a portable data medium having a memory with a plurality of memory sections, the method comprising:

providing at least one first memory section and a second memory section for receiving data representing selected amounts of money;

operatively connecting the data medium to the first terminal;

using the first terminal to deduct, as a function of a first operation of the first terminal, a first selected amount of money from the second memory section and to write the first selected amount of money into the at least one first memory section; and

for receiving a purchase, operatively connecting the data medium to a second terminal and deducting only from the at least one first memory section, a selected amount of money required for a purchase;

the method including providing an input memory in the data medium, in which data specifying said selected amount of money required for the purchase is entered without being keyed in by a holder of the first terminal and the data medium, and wherein after establishing an operational connection between the data medium and the first terminal, the amount of money specified in the input memory is displayed and after a confirmation signal is supplied from the first terminal, the displayed amount of money is transferred from the second memory section into the at least one first memory section.

2. A method according to claim 1 wherein, during a first initial connection of the data medium to the first terminal, an unequivocal, irreversible and checkable relationship is established between the data medium and the first terminal by transmitting a first secret information from one of the terminal and medium to the other of the terminal and medium, for deriving or releasing a second secret information and storing the second secret information in said other one of the terminal and medium.

3. A method as stated in claim 2, including, before an initial connection between the data medium and the first terminal, allowing the second terminal, during a connection of the data medium to the second terminal, to deduct amounts of money from the second memory section.

4. A method as stated in claim 1, including, before an initial connection between the data medium and the first terminal, allowing the second terminal, during a connection of the data medium to the second terminal, to deduct amounts of money from the second memory section.

5. A method as stated in claim 1, wherein the data medium has at least contactless means and contact means for transferring data to and from the first memory section and the input memory, the second terminal having at least contactless means and contact means for transferring data to and from the first memory section and the input memory, the method including inputting the data specifying the selected amount of money required for the purchase by bringing the data medium near the contactless means of the second terminal to enter the selected amount of money into the input memory from the second terminal, thereafter establishing the operational connection between the data medium and the first terminal for displaying the amount of money specified in the input memory and for the data medium to receive the confirmation signal from the first terminal to transfer the displayed amount of money from the second memory section into the at least one first memory section, and thereafter operatively connecting the data medium to the contact means of the second terminal for deducting only from the at least one first memory section, the selected amount of money for receiving the purchase.

6. A method as stated in claim 1 wherein the first terminal and the data medium both contain secret information, the method comprising the step of checking an unequivocal, irreversible relationship between the data medium and the first terminal and to release the transfer of an amount of money in the data medium only after a successful check.

7. A system for secure payments to vendors, comprising:

a portable data medium;

a first terminal;

at least one second terminal of a vender;

said data medium including;

a control unit,

a memory with an input memory for receiving data specifying an amount of money, a plurality of memory sections connected to the control unit, the memory sections including at least one first memory section and a second memory section, an interface for exchanging information between said data medium and one of the terminals;

said first terminal being adapted to trigger, after connection with said data medium, the control unit of said data medium to change mutually dependent data representing amounts of money, corresponding to the contents of the input memory, in the second memory section and in one of the first memory sections;

the second terminal being adapted to trigger, after connection with said data medium, to change the data of only the at least one first memory sections and the input memory, without being capable of changing data of the second memory section.

8. A system as stated in claim 7 wherein the memory of the data medium comprises several first memory sections and said first terminal is equipped to trigger, as a function of an operation of the first terminal, the control unit of the data medium to write into a selected first memory section a plurality of value units, the control unit of the data medium being further equipped to write data identifying said writing into a third memory section, and at least one second terminal being equipped to change data only in a first memory section which is allocated to a particular vendor.

9. A system as stated in claim 7, including validation means in the data medium and the first terminal, for exchanging unique validation information only during a first initial connection between the data medium and the first terminal, and recognition means in the data medium for recognizing the unique validation information to permit operation of the control unit to change data in the memories.

10. A system as stated in claim 7, wherein the data medium and the first terminal each contain a secret information memory and are equipped to transfer upon a first initial connection of the data medium to the first terminal, automatically, from the secret information memory of the data medium, a first secret information to the secret information memory of the first terminal, and the control unit of the first terminal is equipped to derive a second information from the first secret information and to store the second secret information, the control unit of the data medium being equipped to receive the second secret information from the first terminal and to compare the second secret information with the first secret information and only upon a determination of a selected relationship between the secret information, the mutually dependent changes of the data in the second memory section and in the selected first memory section is enabled.

11. A system as stated in claim 7 wherein the second terminal of the vendor and the data medium both have contactless means for transferring data to and from the input memory for effecting a transfer of the selected amount to the input means when the data medium is brought near the contactless means of the second terminal, the second terminal and the data medium both have means for transferring the selected amount from the first memory section to the second terminal when the data medium is brought in operational connection with the second terminal.

12. A portable data medium for a system and method of securing payment to vendors, comprising:

a control unit;

a memory with an input memory at least one first memory section and only one second memory section connected to the control unit; and

an interface to the outside which is coupled with the memory and with the control unit in order to supply data representing selected amounts of money and to supply control commands to the control unit;

the input memory being adapted for receiving data specifying an amount of money;

the control unit being equipped, upon receiving a first control command, to change data representing amounts of money only in a first memory section, and upon receiving a second command, to deduct data representing selected amounts of money corresponding to the contents of the input memory from the second memory section and to write them into a first memory section, the control unit being further equipped so that upon receiving a third control command from the interface, the control unit writes data representing selected amounts of money and supplied via the interface, into the second memory section.

13. A portable data medium as stated in claim 12, wherein the control unit is program-controlled and comprises a program memory and, as a function of the control commands supplied at least through a first terminal, the control unit executes selected program portions in the program memory.

14. A portable data medium as stated in claim 12, including an information memory for storing information and a comparison device which enables the control unit, only after being supplied with the second control command, to deduct data representing amounts of money from the second memory section if a supplied information of the second command fulfills a selected relationship to the stored information.

15. A portable data medium as stated in claim 12, including data input means for inputting data into the memory, and display means for displaying data, which are both connected to the control unit.

16. A portable data medium as stated in claim 12, wherein a second terminal of a vendor for use with the portable data medium and the portable data medium itself both have contactless memory for transferring data to and from the input memory for effecting a transfer of a selected amount of money to the input memory when the data medium is brought near the contactless means of the second terminal, the second terminal and the data medium both have means for transferring the selected amount from the first memory section to the second terminal when the data medium is brought in operational connection with the second terminal.

17. A portable data medium as stated in claim 12, further comprising a memory for storing a secret number and a comparator for comparing said secret number with a further secret number transferred from a terminal connected with the portable data medium, the control unit in the data medium being equipped to transfer data from the second memory section to a first memory section only after a successful comparison of the secret numbers.