Account/asset activation device and method

• US 6,829,596 B1
• Filed: 05/23/2000
• Issued: 12/07/2004
• Est. Priority Date: 05/23/2000
• Status: Expired due to Fees

• Current Assignee: Steve Frazee
• Original Assignee: Steve Frazee
• Inventors: Frazee, Steve
• Primary Examiner(s): Trammell, James P.
• Assistant Examiner(s): WINTER, JOHN M
• Application Number:
  US09/577,733
• Time in Patent Office: 1,659 Days
• Field of Search: 705/1, 705/66, 705/65, 379/114.01, 379/121, 379/124, 379/125, 379/126, 379/127, 379/130, 379/131, 235/380
• US Class Current: 705/66
• CPC Class Codes: G06Q 20/0457 the tickets being sent electronically
• CPC Class Codes: G06Q 20/28 Pre-payment schemes, e.g. "pay before"
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-devices]
• CPC Class Codes: G06Q 20/342 Cards defining paid or billed services or quantities
• CPC Class Codes: G06Q 20/354 Card activation or deactivation
• CPC Class Codes: G06Q 20/3558 Preliminary personalisation for transfer to user
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• CPC Class Codes: G06Q 20/3672 initialising or reloading thereof
• CPC Class Codes: G06Q 20/403 Solvency checks
• CPC Class Codes: G06Q 20/4037 Remote solvency checks
• CPC Class Codes: G06Q 20/425 using two different networks, one for transaction and one for security confirmation
• CPC Class Codes: G07F 17/42 for ticket printing or like apparatus , e.g. apparatus for dispensing of printed paper tickets or payment cards
• CPC Class Codes: G07F 7/025 by means, e.g. cards, providing billing information at the time of purchase, e.g. identification of seller or purchaser, quantity of goods delivered or to be delivered
• 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 7/1008 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
• CPC Class Codes: H04M 15/48 Secure or trusted billing, e.g. trusted elements or encryption
• CPC Class Codes: H04M 15/68 Payment of value-added services
• CPC Class Codes: H04M 17/20 with provision for recharging the prepaid account or card, or for credit establishment
• CPC Class Codes: H04M 2215/0156 : Secure and trusted billing, e.g. trusted elements, encryption, digital signature, codes or double check mechanisms to secure billing calculation and information
• CPC Class Codes: H04M 2215/0196 : Payment of value-added services, mainly when their charges are added on the telephone bill, e.g. payment of non-telecom services, e-commerce, on-line banking

Abstract

An asset/account activation device and method are provided. According to a first preferred method, an asset may be activated by a point of sale device utilizing multiple security mechanisms. Activation codes are sent by secure electronic transmission from an activation host to the activation device. Upon execution of the asset purchase, the activation device dispenses the activation code. Prior thereto, a physical representation of the asset, in the form of a card or the like, has printed thereon an asset ID. To activate the asset, the asset owner contacts a processing device wherein the activation code and asset ID are compared based on time constraints, retailer location constraints and other constraints. Other security checks may be incorporated to include velocity checks. The apparatus of the invention includes an activation host, an activation device, a processing device or VRU, and an activation database. The activation database stores multiple data elements regarding accounts corresponding to specified assets, along with other system data such as retailer information, and security data. The activation host includes a central processor or computer which is able to manipulate the data to control the flow of data. The activation device is installed at a distributor location to distribute activation IDs. Asset activation occurs by interaction of the asset owner with the processing device which makes an activation approval request to the activation host. The activation host approves/disapproves the activation request with the asset host actually activating the asset. The asset host may communicate with the distributor'"'"'s computer system to create a billing record or tracking report. A second preferred method is disclosed for distributing activation codes through the use of preprinted paper based sheets of activation IDs. Activation of assets in the second method is achieved in the same way as in the first method.

Claims

1. An apparatus for activation of an asset comprising:

an activation host residing at a first location for controlling and exchanging information regarding each asset of a plurality of assets purchased by an asset owner from a distributor, said activation host comprising a centralized computer for controlling and exchanging said information regarding each said asset;

an activation database for storing said information regarding each said asset, said activation database having a plurality of data records corresponding to said plurality of assets, said plurality of records including a unique activation code corresponding to each asset, and a unique account assigned each asset;

an activation device residing at a second location remote from said activation host, for exchanging information regarding said plurality of assets with said activation host, said activation device having means for printing data including said unique activation code, said activation device further including means for communicating with said activation host and processor means for processing data exchanged with said activation host;

a processing device residing at a third location remote from said activation host and said activation device for processing activation requests initiated from said asset owner, said processing device electronically communicating said activation requests to said activation host;

a plurality of physical mediums representing corresponding assets, each medium of said plurality of mediums having a unique asset ID thereon corresponding to said unique account in said activation database; and

wherein

a plurality of activation codes are transmitted to said activation device by said activation host and are stored in said activation device on a periodic basis, upon purchase of an asset by said asset owner from said distributor, at least one medium of said plurality of mediums being engaged with said activation device wherein said activation device transfers a corresponding activation code to said at least one medium, said activation code not being magnetically encoded on the medium and being visibly observable on the medium and wherein said processing device, upon prompting by said as set owner, communicates said asset ID and said activation code for comparison by said activation host to determine whether to activate said asset.

2. An apparatus, as claimed in claim 1, wherein:

said activation device further records the date and time of a purchase transaction for purchase of an asset by said asset owner, and said date and time being recorded on said at least one medium, said activation code and said date and time comprising a unique activation ID corresponding to each asset.

3. An apparatus as claimed in claim 1, wherein:

said processing device includes a voice response unit that prompts the asset owner for the asset ID and activation code of the corresponding asset, said voice response unit then transmitting said asset ID and activation code to said activation host to determine whether to approve said asset for activation.

4. An apparatus, as claimed in claim 1, wherein:

said processing device comprises a personal computer including means for accessing and using a worldwide web browser, said asset owner interacting with said web browser which prompts the asset owner to provide the asset ID and activation code, and said asset ID and activation code being transmitted to said activation host via the worldwide web.

5. An apparatus, as claimed in claim 1, wherein:

at least one of said plurality of mediums is in the form of a card.

6. An apparatus, as claimed in claim 1, wherein:

said at least one of said plurality of mediums is in the form of material which can receive printing from said means for printing data.

7. An apparatus, as claimed in claim 1, wherein:

said asset corresponds to a preset number of long distance calling minutes.

8. An apparatus, as claimed in claim 1, wherein:

said asset corresponds to a gift certificate of a preset value.

9. An apparatus, as claimed in claim 1, wherein;

said medium corresponds to a transit ticket of a preset value.

10. An apparatus, as claimed in claim 1, wherein:

said asset corresponds to a redeemable certificate for a preset value of gasoline.

11. An apparatus, as claimed in claim 1, wherein:

said asset corresponds to prepaid values of cellular phone service.

12. An apparatus, as claimed in claim 1, wherein:

said asset corresponds to prepaid paging services.

13. An apparatus, as claimed in claim 1, wherein:

said asset corresponds to prepaid worldwide web access.

14. An apparatus, as claimed in claim 1, wherein:

said asset corresponds to cable or satellite TV access.

15. An apparatus, as claimed in claim 1, further comprising:

an asset host communicating with said activation host, said asset host including a centralized computer for receiving and sending information regarding said plurality of assets, said activation host generating data to said asset host reflective of activation approvals of said plurality of assets, and said asset host recording said approvals which correspond to assets having said unique accounts.

16. An apparatus, as claimed in claim 1, wherein:

said plurality of data records of said activation database further include activation device records enabling said activation host to identify each activation device communicating with said activation host and further enabling said activation host to match each activation device with corresponding activation codes and asset IDs which are handled by said activation device.

17. An apparatus, as claimed in claim 1, wherein:

said plurality of data records of said activation database further include identifying records in the form of distributor ID a for each distributor having activation devices installed at corresponding locations of said distributors, said distributor IDs enabling said activation host to further identify and match each activation device with corresponding distributors, and further enabling said activation host to identify each activation code and asset ID with each distributor ID and each activation device.

18. An apparatus, as claimed in claim 1, wherein:

activation codes transmitted by said activation host are encrypted, and said activation codes are decrypted by said activation device upon receipt from said activation host.

19. A method of activating an asset purchased by an asset owner from a distributor, said method comprising the steps of:

providing an activation host residing at a first location including a centralized computer and an activation database,

creating and storing a plurality of data records in said activation database, said data records including a plurality of account records, each account record corresponding to a unique asset, said data records further including a plurality of activation codes;

providing a physical medium as a tangible representation of the asset;

placing an asset ID on the medium, each medium having a unique asset ID;

distributing the medium to the distributor;

providing at least one activation device for each distributor, said at least one activation device residing of a second location remote from said activation host, said activation device communicating with said activation host;

electronically transferring a plurality of activation codes by said activation host to said activation device;

temporarily storing said plurality of activation codes in said activation device;

executing a purchase transaction wherein the asset owner purchases an asset from the distributor;

engaging the medium representing the asset of the purchase transaction with the activation device;

dispensing a unique activation code on the medium by said activation device, said activation code not being magnetically encoded on the medium and being visibly observable on the medium;

requesting activation of the asset by the asset owner communicating with the activation host;

comparing information from said medium having the asset ID and the activation code thereon to determine whether the asset can be activated; and

transmitting a message indicating approval or disapproval of activation of the asset.

20. A method, as claimed in claim 19, further including the step of:

dispensing a time/date stamp by the activation device and placing the time/date stamp on the medium along with the activation code; and

comparing the asset ID and activation code along with said time/date stamp by said activation host to determine approval or disapproval of the activation request.

21. A method, as claimed in claim 19, further comprising the steps of:

providing a plurality of retailer ID records in said plurality of data records corresponding to unique distributors; and

further comparing the distributor IDs with said asset ID and said activation code to determine approval or disapproval of the activation request.

22. A method, as claimed in claim 19, further comprising the steps of:

providing a processing device for processing activation requests generated by the asset owner; and

communicating said activation request through said processing device to said activation host.

23. A method, as claimed in claim 19, further comprising the steps of:

assigning predetermined asset IDs to selected distributors.

24. A method, as claimed in claim 19, further comprising the step of:

assigning a predetermined asset value to each account record.

25. A method, as claimed in claim 19, further comprising the steps of:

assigning a predetermined number of activation codes to predetermined distributors.

26. A method, as claimed in claim 19, further comprising the steps of:

assigning predetermined activation codes to designated activation devices.

27. A method, as claimed in claim 19, further comprising the steps of:

encrypting activation codes transmitted by the activation host to said activation device; and

decrypting the activation codes by the activation device prior to dispensing the activation codes.

28. A method, as claimed in claim 19, further comprising the steps of:

recording the time and date when an activation code is dispensed, and placing the time and date on the medium along with the activation code during said dispensing step; and

further comparing information from said asset ID, said activation code, and said time/date stamp to determine approval or disapproval of the activation request.

29. A method, as claimed in claim 19, further comprising the steps of:

providing an asset host including an asset provider'"'"'s computer system;

transmitting data from said activation host reflective of approved activations to said asset providers computer system; and

creating a billable record from said asset provider'"'"'s computer system reflective of activated assets corresponding to the respective plurality of account records, and sending the billable record to an invoicing computer of the distributor.

30. A method of activating an asset purchased by an asset owner from a distributor, said method comprising the steps of:

providing an activation host including a centralized computer and an activation database;

creating and storing a plurality of data records in said activation database, said data records including a plurality of account records, each account record corresponding to a unique asset, said data records further including a plurality of activation codes;

providing a medium as a tangible representation of the asset;

placing an asset ID on the medium, each medium having a unique asset ID;

distributing the medium to the distributor;

providing at least one activation device for each distributor, said activation device communicating with said activation host;

electronically transferring a plurality of activation codes by said activation host to said activation device;

temporarily storing said plurality of activation codes in said activation device;

executing a purchase transaction wherein the asset owner purchases an asset from the distributor;

engaging the medium representing the asset of the purchase transaction with the activation device;

dispensing a unique activation code on the medium;

requesting activation of the asset by the asset owner communicating with the activation host;

comparing information from said medium having the asset ID and the activation code thereon to determine whether the asset can be activated;

transmitting a message indicating approval or disapproval of activation of the asset;

determining a threshold value for an allowed number of activation attempts per asset;

recording the number of activation attempts for each asset; and

transmitting a message from said activation host to said asset owner indicating approval or disapproval of the activation request based upon the number of activation attempts.

31. A method of activating an asset purchased by an asset owner from a distributor, said method comprising the steps of:

providing an activation host including a centralized computer and an activation database;

creating and storing a plurality of data records in said activation database, said data records including a plurality of account records, each account record corresponding to a unique asset, said data records further including a plurality of activation codes;

providing a medium as a tangible representation of the asset;

placing an asset ID on the medium, each medium having a unique asset ID;

distributing the medium to the distributor;

providing at least one activation device for each distributor, said activation device communicating with said activation host;

electronically transferring a plurality of activation codes by said activation host to said activation device;

temporarily storing said plurality of activation codes in said activation device;

executing a purchase transaction wherein the asset owner purchases an asset from the distributor;

engaging the medium representing the asset of the purchase transaction with the activation device;

dispensing a unique activation code on the medium;

requesting activation of the asset by the asset owner communicating with the activation host;

comparing information from said medium having the asset ID and the activation code thereon to determine whether the asset can be activated; and

transmitting a message indicating approval or disapproval of activation of the asset;

determining an average number of asset purchase transactions occurring at a distributor site for a given period of time in the activation database;

recording the number of asset purchase transactions occurring at the distributor site for the given time period in the activation database;

determining a threshold value of maximum asset purchase transactions allowable at the distributor site for the given period of time;

monitoring the asset purchase transactions at the distributor site to determine if an excess number of asset purchase transactions have occurred; and

transmitting a message from said activation host to the distributor via the activation devices indicating approval or disapproval of an asset purchase transaction based upon comparison of the recorded number of asset purchase transactions and the value of maximum asset purchase transactions allowable.

32. A method of activating an asset purchased by an asset owner from a distributor, said method comprising the steps of:

providing an activation host including a centralized computer and an activation database;

creating and storing a plurality of data records in said activation database, said data records including a plurality of account records, each account record corresponding to a unique asset, said data records further including a plurality of activation codes;

providing a medium as a tangible representation of the asset;

placing an asset ID on the medium, each medium having a unique asset ID;

distributing the medium to the distributor;

providing at least cone activation device for each distributor, said activation device communicating with said activation host;

electronically transferring a plurality of activation codes by said activation host to said activation device;

temporarily storing said plurality of activation codes in said activation device;

executing a purchase transaction wherein the asset owner purchases an asset the distributor;

engaging the medium representing the asset of the purchase transaction with the activation device;

dispensing a unique activation code on the medium;

requesting activation of the asset by the asset owner communicating with the activation host;

comparing information from said medium having the asset ID and the activation code thereon to determine whether the asset can be activated; and

transmitting a message indicating approval or disapproval of activation of the asset;

determining an average number of asset purchase transactions occurring at each activation device for a given period of time;

recording said average number for each activation device in the activation database;

monitoring the asset purchase transactions occurring at each activation device by said activation host to determine if an excess number of asset purchase transactions have occurred at a particular activation device; and

transmitting a message from said activation host to the activation device locking out the activation device from dispensing activation codes when an excess number of asset purchase transactions have occurred.

33. A method of activating an asset purchased by an asset owner from a distributor, said method comprising the steps of:

providing an activation host including a centralized computer and an activation database;

creating and storing a plurality of data records, said data records including a plurality of account records, each account record corresponding to a unique asset to be distributed by the distributor, and sold to an asset owner, said data records further including a plurality of activation codes, each activation code of said plurality of activation codes corresponding to a unique account record of said plurality of account records;

providing a physical medium as a tangible representation of the asset;

placing an asset ID on the medium, each medium having a unique asset ID, each asset ID placed on each medium corresponding to a unique account record in said plurality of account records;

distributing the medium to the distributor;

transferring a plurality of activation codes to the distributor;

enabling the plurality of activation codes by the distributor contacting the activation host, and said activation host confirming the distributor has received the intended plurality of activation codes;

executing a purchase transaction wherein the asset owner purchases an asset from the distributor;

placing an activation code on the medium by engaging the medium with the activation device;

providing a processing device remote from said activation host for processing activation requests by electronic communications with said activation host;

requesting activation of the asset by the asset owner using the processing device which electronically communicates with the activation host;

comparing information from said medium having the asset ID and the activation code thereon to determine whether the asset is authorized for activation; and

transmitting a message to the asset owner indicating approval or disapproval of activation of the asset.

34. A method, as claimed in claim 33, further including the step of:

transmitting the current value of the asset during said transmitting step.