Systems for authenticating the use of transaction cards having a magnetic stripe

• US 6,089,451 A
• Filed: 02/17/1995
• Issued: 07/18/2000
• Est. Priority Date: 02/17/1995
• Status: Expired due to Term

• Current Assignee: Arthur A. Krause
• Original Assignee: Arthur A. Krause
• Inventors: Krause, Arthur A.
• Primary Examiner(s): LE, THIEN MINH
• Application Number:
  US08/390,539
• Time in Patent Office: 1,978 Days
• Field of Search: 235/380, 235/379, 235/449, 235/492, 235/486, 235/493
• US Class Current: 235/380
• CPC Class Codes: G06K 7/084 sensing magnetic material by relative movement detecting flux changes without altering its magnetised state
• 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 20/347 Passive cards
• CPC Class Codes: G07F 7/10 together with a coded signal , e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
• 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
• CPC Class Codes: G07F 7/1058 PIN is checked locally

Abstract

Transaction cards operable as "smart cards"; credit cards; debit cards; access cards; et cetera, having an self-enabling and self-disabling feature provides for authentication and proper user verification. The card receives input from a user and determines if the input is valid. If the user input is valid, the card responds by enabling a magnetic stripe thereon. The magnetic stripe is enabled for a limited time after which it is then disabled. A disabled magnetic stripe is then inoperable for activating card readers. A card which is lost or stolen cannot be used by unauthorized users as it would have a magnetic stripe in a disabled state and only an authorized user would have the ability to enable it. The card possesses a high level of compatibility with known methodology in the art and does not require additional equipment and systems to attain its high security level.

Claims

1. A transaction card comprised of a magnetic stripe and a transducer in magnetic communication with said magnetic stripe, said card being responsive to user activity, further comprised of:

an energy source;

a keypad;

a logic processor;

a transducer; and

a magnetic stripe, each incorporated into the card,

said energy source being a battery in electrical contact with said logic processor;

said keypad being a plurality of switches operable for converting tactile user input into an electrical signal processable by;

said logic processor being a microcircuit operable for receiving the electrical signal, comparing it to a stored code, and enabling said transducer in accordance with that comparison;

said transducer in communication with said logic processor being an electrical conductor operable for converting electrical energy to magnetic energy in a spatial pattern;

said magnetic stripe in proximity and responsive to said transducer being operable for maintaining a magnetic field thereon

said energy source further comprising a thin, flat energy cell having a thickness less than about 3 mm and greater than about 0.2 mm whereby the cell can be incorporated between the two flat surfaces of a standard transaction card;

said keypad further comprising a thin, flat element having a plurality of switches, each switch being operable for providing a unique signal to the logic processor;

said logic processor further comprising a microcircuit having;

a first portion operable for receiving user inputs;

a second portion for storing and recalling a reference code;

a third portion in communication with the first and second portions operable for executing a logic program including comparing user inputs to reference codes;

a fourth portion for generating an enable signal in accordance with the comparison; and

a fifth portion in communication with the transducer operable for delivering the enable signal thereto

said logic processor being a microcircuit operable for receiving the electrical signal, comparing it to a stored code, and enabling said transducer in accordance with that comparison.

2. A method of authenticating a transaction card having a magnetic stripe responsive to user activity comprising the steps:

a) receiving user input;

b) comparing the user input to a stored reference signal; and

c) enabling a magnetic media in accordance with said comparison with prescribed data.

3. A method of claim 2,

said receiving user input step further comprising receiving an electrical signal representing a user input at a logic processor;

said comparing the user input to a stored reference signal step further comprising determining if a coincidence exists between the user input and the stored reference signal;

said enabling a magnetic media with prescribed data step further comprising writing a magnetic signal to the magnetic media in accordance with the determination of coincidence such that if coincidence is detected the magnetic medium is enabled with prescribed data, and if coincidence is not detected the magnetic medium is not enabled.

4. A method of claim 2, further comprising the steps:

d) storing a reference signal in a logic processor memory;

e) initiating the magnetic stripe in a disabled state;

f) allowing a period of time to pass; and

g) disabling the magnetic stripe.

5. A method of claim 4,

the a) storing a reference signal in a memory step being further defined as:

providing to a storage means, and storing therein, a predetermined reference signal whereby authorized persons could have knowledge of the predetermined reference signal;

the b) initiating the magnetic stripe in a disabled state step being further defined as;

applying a decreasing amplitude sinusoidal electronic signal to a microcircuit arranged to create a spatial distribution of magnetic fields whereby a signal on a magnetic recording material is erased and the magnetic material is disabled;

the c) receiving user input step being further defined as;

converting a physical tactile user input at a transduction means to an electronic signal processable by a logic processor;

the d) comparing the user input to a stored reference signal step being further defined as;

comparing the electronic signal representing the user input to the predetermined reference signal to detect a coincidence between those signals;

the e) enabling a magnetic media with prescribed data step being further defined as;

if a coincidence is detected, enabling the magnetic stripe by writing a spatially modulated magnetic signal to the magnetic stripe by applying an energetic electrical pulse to a spatially distributed microcircuit; and

if a coincidence is not detected, take no action allowing the magnetic stripe to remain dialed;

the f) allowing a period of time to pass step being further defined as;

allowing a period of time to pass which is sufficient for a user to use the transaction card'"'"'s magnetic stripe in a manner consistent with use of magnetic stripes, a period between 30 seconds and 5 minutes; and

the g) disabling the magnetic stripe step being further defined as;

applying a decreasing amplitude sinusoidal electronic signal to a microcircuit arranged to create a spatial distribution of magnetic fields whereby a signal on a magnetic recording material is erased and the magnetic material is disabled.