System and method for transferring value to a magnetic stripe on a transaction card

• US 6,510,983 B2
• Filed: 07/02/1998
• Issued: 01/28/2003
• Est. Priority Date: 07/03/1997
• Status: Expired due to Term

• Current Assignee: Citicorp Credit Services Incorporated (Citigroup Incorporated)
• Original Assignee: Citicorp Development Center Incorporated (Citigroup Incorporated)
• Inventors: Horowitz, Edward, Lichstein, Henry, Kawan, Joseph C.
• Primary Examiner(s): Lee, Michael G.
• Assistant Examiner(s): FUREMAN, JARED
• Application Number:
  US09/109,372
• Publication Number:
  US 20010013542A1
• Time in Patent Office: 1,671 Days
• Field of Search: 235/380, 235/379, 235/375, 235/487, 235/488, 235/493, 235/492, 902/25, 902/26, 902/27, 705/64, 705/67, 705/75
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• 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 20/3437 the counter having non-monetary units, e.g. trips
• CPC Class Codes: G06Q 20/357 Cards having a plurality of specified features
• 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: G06Q 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07F 7/08 by coded identity card or credit card or other personal identification means without personal verification means G07F7/02
• 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
• CPC Class Codes: G07F 9/001 Interfacing with vending machines using mobile or wearable devices
• CPC Class Codes: G07F 9/002 Vending machines being part of a centrally controlled network of vending machines

Abstract

The present invention discloses a system and method enabling value stored in an advanced technology memory on a transaction card to be utilized in a magnetic stripe transaction with the card. The invention provides a special transaction number that is encrypted and recorded on the magnetic stripe of the card. The special transaction number comprises the value to be transferred or transaction amount, a personal identification number (“PIN”), and an account number. The special transaction number is recorded in a non-discretionary data field. Further, an indicator character may also be recorded on the magnetic stripe to alert a host system of a financial institution of the existence of the special transaction number. Thus, the special transaction number is read during a magnetic stripe transaction and the value represented by the special transaction number may be utilized to perform the transaction.

Claims

1. A method for performing a secure financial transaction utilizing a transaction card, having a magnetic stripe memory and at least one advanced technology memory, comprising the steps of:

(a) generating a special transaction number by modifying transaction data, wherein the transaction data includes a personal identification number, an account number, and a transaction amount;

(b) formatting the special transaction number according to one of a binary and hexadecimal coding system;

(c) storing the special transaction number in a non-discretionary data field of the magnetic stripe memory that is normally reserved for a single account number, wherein the special transaction number provides access to at least a portion of a value held within the at least one advanced technology memory on the card; and

(d) recording an indicator character in the non-discretionary data field on the magnetic stripe memory.

2. A method for performing a secure financial transaction as recited in claim 1, wherein the advanced technology memory comprises at least one of an integrated circuit memory, an optical stripe memory, and a thin film semi-conductor memory.

3. A method for performing a secure financial transaction as recited in claim 1, wherein the modifying step comprises generating the special transaction number with the encryption capability of the at least one advanced technology memory on the card.

4. A method for performing a secure financed transaction as recited in claim 3, wherein the at least one advanced technology memory comprises at least one of an integrated circuit memory, an optical memory and a thin film semi-conductor memory.

5. A method for performing a secure financial transaction as recited in claim 3, wherein the at least one advanced technology memory comprises an integrated circuit memory.

6. A method for performing a secure financial transaction as recited in claim 1, wherein the modifying step comprises generating the special transaction number with the encryption capability of a device capable of reading and writing to an advanced technology memory and a magnetic stripe memory.

7. A method for performing a secure financial transaction as recited in claim 6, wherein the reading and writing device comprises a device selected from the group consisting of a personal digital assistant n automated teller machine, a customer access terminal, and a merchant terminal.

8. A method for performing a secure financial transaction as recited in claim 1, wherein the modifying data step comprises encrypting the data using a public key/private key encryption system.

9. A method for performing a secure financial transaction as recited in claim 1, wherein the modifying data step comprises encrypting the data using a synchronized clock encryption system.

10. A system for transferring value on a multi-memory transaction card from an advanced technology memory to a magnetic stripe memory, comprising:

a transaction card having an advanced technology memory and a magnetic stripe memory;

the advanced technology memory including an electronic purse having an electronic purse value;

the magnetic stripe memory having a non-discretionary data field for recording a personal account number and an indicator character and having discretionary data fields;

a reader/writer device in communication with the advanced technology memory and the magnetic stripe memory for facilitating data transfers therebetween; and

an encrypted special transaction number generated by the advanced technology memory by modifying a personal identification number, the personal account number, and a transaction amount and recorded in the non-discretionary data field in lieu of the personal account number according to one of a binary and hexadecimal coding system, the special transaction number effecting the transfer of at least a portion of the electronic purse value.

11. A system for transferring value on a multi-memory transaction card as recited in claim 10, wherein said advanced technology memory comprises at least one of an integrated circuit memory, an optical memory and a thin film semi-conductor memory.

12. A system for transferring value on a multi-memory transaction card as recited in claim 10, wherein said reader/writer device comprises at least one of a personal digital assistant, an automated teller machine, a customer access terminal, and a merchant terminal.

13. A system for transferring value on a multi-memory transaction card as recited in claim 10, wherein said special transaction number is encrypted by said advanced technology memory.

14. A system for transferring value on a multi-memory transaction card as recited in claim 10, wherein said special transaction number is encrypted by said reader/writer device.