Transaction system and method therefor

• US 6,434,159 B1
• Filed: 11/19/1999
• Issued: 08/13/2002
• Est. Priority Date: 10/15/1996
• Status: Expired due to Term

• Current Assignee: Google Technology Holdings LLC (Alphabet Inc.)
• Original Assignee: Motorola, Inc. (Motorola Solutions, Inc.)
• Inventors: Woodward, Ernest Earl, Harris, Jeffrey Martin, Borgstahl, Ronald William
• Primary Examiner(s): Olms, Douglas
• Assistant Examiner(s): HOM, SHICK C
• Application Number:
  US09/443,855
• Time in Patent Office: 998 Days
• Field of Search: 370/259, 370/310, 370/313, 370/315, 370/401, 370/402, 379/102.01, 379/102.02, 379/106.01, 455/414, 455/418, 455/411, 455/406, 455/407, 455/408, 235/472, 235/462, 235/493, 235/383, 340/825.35, 340/928
• US Class Current: 370/401
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/3265 characterised by personalisation for use
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: H04L 2463/102 applying security measure for e-commerce data processing systems or methods, specially adapted for e-commerce G06Q30/00
• CPC Class Codes: H04L 63/0492 by using a location-limited connection, e.g. near-field communication or limited proximity of entities
• CPC Class Codes: H04L 63/08 for authentication of entities cryptographic mechanisms or cryptographic arrangements for entity authentication H04L9/32
• CPC Class Codes: H04L 63/104 Grouping of entities
• CPC Class Codes: H04W 12/06 Authentication
• CPC Class Codes: H04W 28/14 using intermediate storage
• CPC Class Codes: H04W 48/18 Selecting a network or a communication service
• CPC Class Codes: H04W 76/10 Connection setup
• CPC Class Codes: H04W 8/22 Processing or transfer of terminal data, e.g. status or physical capabilities
• CPC Class Codes: H04W 84/10 Small scale networks; Flat hierarchical networks
• CPC Class Codes: H04W 84/18 Self-organising networks, e.g. ad-hoc networks or sensor networks

Abstract

A peer device (132) is arranged and programmed for handling a transaction at a point of sale provided by a merchant, and a personal presence identifier (122) is carried by a user and coupled to the peer device by a short-range two-way wireless link. The peer device and the personal presence identifier are arranged and programmed to establish a two-way personal area network (22) with one another when the personal presence identifier is within wireless transmission range of the peer device. The personal presence identifier and the peer device are also arranged and programmed to exchange needs specifications (70) and capability specifications (72) with one another after establishing the two-way personal area network.

Claims

1. A transaction system using proximity-based short-range wireless links, the transaction system comprising:

a peer device arranged and programmed for handling a transaction at a point of sale provided by a merchant; and

a personal presence identifier carried by a user and coupled to the peer device by a short-range two-way wireless link,

wherein the peer device and the personal presence identifier are arranged and programmed to establish a two-way personal area network with one another when the personal presence identifier is within wireless transmission range of the peer device, and

wherein the personal presence identifier and the peer device are also arranged and programmed to exchange needs specifications and capability specifications with one another after establishing the two-way personal area network, each needs specification is a list of network needs currently experienced by a broadcasting entity and each capability specification is a list of network capabilities that the broadcasting entity may provide to other peers of the network.

2. The transaction system of claim 1, wherein the personal presence identifier comprises a reader for reading a product identification code on an article of merchandise.

3. The transaction system of claim 1, wherein the personal presence identifier is arranged and programmed to:

scan a product identification code on an article of merchandise;

indicate a purchase price of the article of merchandise; and

cooperate with the peer device to authorize payment of the purchase price in response to an action by the user of the personal presence identifier.

4. The transaction system of claim 1, wherein the peer device is arranged and programmed to:

accept a payment authorization from the personal presence identifier identifying an article of merchandise and a purchase price; and

cooperate with a banking institution to transfer an amount equal to the purchase price from a first account belonging to the user to a second account belonging to the merchant.

5. The transaction system of claim 1, further comprising:

an exit alarm system coupled to the peer device for receiving a confirmation identifying an article of merchandise which has been purchased by the user of the personal presence identifier, the exit alarm system comprising;

a processing system for processing and storing the confirmation;

an exit reader coupled to the processing system for reading a product identification code on the article of merchandise as it exits the point of sale; and

an exit alarm coupled to the processing system for generating an alarm when the article of merchandise exits the point of sale and the confirmation corresponding to the article of merchandise has not been received from the peer device.

6. The transaction system of claim 1,

wherein the personal presence identifier comprises an encoder for encoding information onto a product identification tag attached to an article of merchandise, and

wherein the personal presence identifier and the peer device are further arranged and programmed, after receiving payment for the article of merchandise, to:

send a first cryptographic key and a product identification code from the peer device to an exit alarm system;

send a second cryptographic key from the peer device to the personal presence identifier;

encode the second cryptographic key onto the product identification tag; and

wherein the exit alarm system is arranged and programmed to allow the article of merchandise to pass the exit alarm system without generating an alarm, when the first and second cryptographic keys properly decrypt an integrity-check value.

7. The transaction system of claim 1, wherein the personal presence identifier and the peer device are further arranged and programmed to allow the user to:

accumulate a plurality of articles of merchandise to be purchased; and

pay for the plurality of articles of merchandise through a single payment transaction.

8. The transaction system of claim 1, wherein the personal presence identifier and the peer device are further arranged and programmed to:

handle a plurality of purchases from a plurality of users carrying a plurality of personal presence identifiers; and

sort the plurality of purchases by means of a unique identification code pre-programmed into each of the plurality of personal presence identifiers.

17. The transaction system of claim 1, wherein the list of network needs of one of the personal presence identifier and the peer device is compared to the list of network capabilities of the other of the personal presence identifier and the peer device to determine whether there is at least one match between the lists.

9. A method for facilitating a transaction at a point of sale provided by a merchant in a transaction system using proximity-based short-range wireless links, the transaction system including a peer device and a personal presence identifier carried by a user and coupled to the peer device by a short-range two-way wireless link, the method comprising the steps of:

establishing a two-way personal area network between the personal presence identifier and the peer device when the personal presence identifier is within wireless transmission range of the peer device, and

exchanging needs specifications and capability specifications between the personal presence identifier and the peer device after establishing the two-way personal area network, each needs specification is a list of network needs currently experienced by a broadcasting entity and each capability specification including is a list of network capabilities that the broadcasting entity may provide to other peers of the network.

10. The method of claim 9, wherein the personal presence identifier includes a reader, and wherein the method further comprises the step of reading a product identification code on an article of merchandise.

11. The method of claim 9, further comprising in the personal presence identifier the steps of:

scanning a product identification code on an article of merchandise;

indicating a purchase price of the article of merchandise; and

cooperating with the peer device to authorize payment of the purchase price in response to an action by the user of the personal presence identifier.

12. The method of claim 9, further comprising in the peer device the steps of:

accepting a payment authorization from the personal presence identifier identifying an article of merchandise and a purchase price; and

cooperating with a banking institution to transfer an amount equal to the purchase price from a first account belonging to the user to a second account belonging to the merchant.

13. The method of claim 9, wherein the transaction system further comprises an exit alarm system coupled to the peer device, and wherein the method comprises in the exit alarm system the steps of:

receiving a confirmation identifying an article of merchandise which has been purchased by the user of the personal presence identifier;

processing and storing the authorization;

reading a product identification code on the article of merchandise as it exits the point of sale; and

generating an alarm when the article of merchandise exits the point of sale and the confirmation corresponding to the article of merchandise has not been received from the peer device.

14. The method of claim 9,

wherein the personal presence identifier includes an encoder for encoding information onto a product identification tag attached to an article of merchandise, and

wherein, after receiving payment for the article of merchandise, the method comprises the steps of:

sending a first cryptographic key and a product identification code from the peer device to an exit alarm system;

sending a second cryptographic key from the peer device to the personal presence identifier;

encoding the second encryption key onto the product identification tag, and

allowing, by the exit alarm system, the article of merchandise to pass the exit alarm system without generating an alarm, when the first and second cryptographic keys properly decrypt an integrity-check value.

15. The method of claim 9, further comprising the step of allowing the user to:

accumulate a plurality of articles of merchandise to be purchased; and

pay for the plurality of articles of merchandise through a single payment transaction.

16. The method of claim 9, further comprising the steps of:

handling a plurality of purchases from a plurality of users carrying a plurality of personal presence identifiers; and

sorting the plurality of purchases by means of a unique identification code pre-programmed into each of the plurality of personal presence identifiers.

18. A transaction system using proximity-based short-range wireless links, the transaction system comprising:

a peer device arranged and programmed for handling a transaction at a point of sale provided by a merchant; and

a personal presence identifier carried by a user and coupled to the peer device by a short-range two-way wireless link,

wherein the peer device and the personal presence identifier are arranged and programmed to establish a peer-to-peer communication network with one another when the personal presence identifier is within wireless transmission range of the peer device, and

wherein the personal presence identifier and the peer device are also arranged and programmed to exchange needs specifications and capability specifications with one another after establishing the peer-to-peer communication network.

19. The transaction of claim 18, wherein the personal presence identifier is capable initiating a connection with the peer device, and the peer device is capable initiating a connection with the personal presence identifier.