Data processing system including transaction authorization device

• US 6,064,988 A
• Filed: 05/21/1998
• Issued: 05/16/2000
• Est. Priority Date: 08/17/1987
• Status: Expired due to Fees

• Current Assignee: Harold K. Thomas
• Original Assignee: Harold K. Thomas
• Inventors: Thomas, Harold K.
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): Irshadullah, M.
• Application Number:
  US09/082,496
• Time in Patent Office: 726 Days
• Field of Search: 705/26, 705/38, 705/39, 705/44, 705/41, 235/379, 235/380
• US Class Current: 705/44
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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 20/357 Cards having a plurality of specified features
• CPC Class Codes: G06Q 20/363 with the personal data of a user
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• 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 supersmart card system is provided for authorizing transactions between a transaction card user and a merchant. The supersmart card system includes a plurality of conventional transaction cards such as a debit cards, credit cards, or phone service cards, and a transaction authorization device. The transaction authorization device is user-carried and constructed to be separate and apart from the transaction card. The transaction authorization device includes logic means for storing data relating to the identity of the transaction card user and data relating to the authorization of transactions between a user and financial institutions or service providers. Preferably, the transaction authorization card also includes means enabling a user to select a particular transaction card for processing a transaction. The supersmart card system therein provides the simple to manufacture and use structure which reduces the potential for fraud arising from theft of a transaction card and which enables a user to carry about a single authorization device for authorizing transactions involving a large number of transaction cards and their corresponding financial institutions and service providers between a transaction card user and merchant.

Claims

1. A supersmart card system for operation with a data processing system, the data processing system including a central computer and means for transmitting transaction specific data between the central computer and the supersmart card system, the supersmart card system comprising:

a plurality of transaction cards corresponding to a plurality of different financial institutions or service providers; and

a portable, user-carried transaction authorization device separate from said plurality of transaction cards, said transaction authorization device including;

(1) logic means having a memory for storing identifier data relating to the identity of a user and authorization data relating to the authorization of transactions between a user and financial institutions or service providers;

(2) data entry means for enabling a user to enter into said logic means;

(a) identifier data relating to the identity of a user;

(b) authorization data relating to the authorization of transactions between a user and financial institutions or service providers; and

(c) transaction specific data,

(3) transaction card selection means for enabling a user to select a particular transaction card for processing a particular transaction; and

(4) a program for comparing said transaction specific data with said authorization data, for generating a transaction specific authorization signal if said comparison satisfies authorization requirements of said program, for furnishing the authorization signal to merchant, and for modifying the authorization data with every use of said supersmart card.

2. The supersmart card system of claim 1 wherein said plurality of transaction cards are selected from the group consisting of credit cards, debit cards, and phone cards.

3. The supersmart card system of claim 1 wherein said transaction authorization device has a thickness of greater than 1/32 inch so as to be incapable of being read by conventional ISO standard remote magstripe readers.

4. The supersmart card system of claim 1 wherein said transaction authorization device further includes a display means for displaying said authorization signal.

5. A method of effecting off-line authorization for transaction card transactions between a customer and a merchant, comprising:

(a) providing each of a plurality of customers with a plurality of transaction cards corresponding to a plurality of financial institutions or service providers;

(b) providing each of the plurality of customers with a transaction authorization device to be carried by the customer, said device including,

(1) logic means, including memory;

(2) data entry means for entering data into said memory, including

(a) identifier data,

(b) authorization data, and

(c) transaction-specific data;

(3) transaction card selection means for enabling a user to select a particular transaction card for processing a particular transaction; and

(4) a program for

(a) comparing said transaction-specific data with said authorization signal if said comparison satisfies authorization requirements of said program;

(b) generating a transaction specific authorization signal if said comparison satisfies authorization requirements of said program, and;

(c) updating the authorization data with use of the transaction card;

(c) selecting a transaction card of said plurality of transaction cards for processing a particular transaction;

(d) reading the selected transaction card to provide the merchant with transaction card issuer identification and customer account number;

(e) inputting the identification of the selected transaction card into the transaction card selection means of the transaction authorization device;

(l) inputting the customer PIN and transaction specific data to the transaction authorization device; and

(g) furnishing the authorization signal to the merchant.