Transaction card system having security against unauthorized usage

• US 6,991,155 B2
• Filed: 11/19/2002
• Issued: 01/31/2006
• Est. Priority Date: 11/19/2001
• Status: Expired due to Fees

• Current Assignee: Laser Band LLC
• Original Assignee: Laser Band LLC
• Inventors: Burchette, Jr., Robert L.
• Primary Examiner(s): Stcyr, Daniel
• Assistant Examiner(s): Hess, Daniel A.
• Application Number:
  US10/300,010
• Publication Number:
  US 20030106935A1
• Time in Patent Office: 1,169 Days
• Field of Search: 235/379, 235/380, 235/492, 235/382, 235/436
• US Class Current: 235/379
• 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 20/40145 Biometric identity checks
• CPC Class Codes: G07F 7/00 Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
• CPC Class Codes: G07F 7/0866 by active credit-cards adapted therefor G07F7/1008 takes precedence
• CPC Class Codes: G07F 7/0873 Details of the card reader
• 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 system having a host having information regarding at least one transaction card account. The host functions to transfer card data to a drone card carried within the host. The host includes a biometric sensor or other suitable identification means for authentication of the user prior to use of the drone card. Once the user is authenticated, the drone card provides a readable identifier that corresponds to a transaction card account selected by the user. The functions of host could alternatively be integrated into the drone card.

Claims

1. A transaction card system, said system comprising:

a host;

a drone card having drone memory;

said host being adapted to physically receive a portion of said drone card during a data transfer operation from said host to said drone card;

said host having;

a host memory configured to store account information regarding at least one transaction card;

an output circuit configured to generate an electronically readable identifier corresponding to said at least one transaction card stored in said memory;

a user input device configured to select a transaction card stored in said memory;

a processor operatively coupled to said memory, output circuit and said user input device, wherein said output circuit generates a readable identifier responsive to input received from said user input device; and

wherein said readable identifier includes an automatically generated security code that is transferred to said drone card and is capable of being transmitted to a remote computer to authenticate a transaction, said security code being a randomly changing code pattern which is known by said host and said remote computer, said security code changing with each transaction.

2. The system as recited in claim 1, further comprising a security input device operatively coupled to said processor, wherein said security input device limits access to account information stored in said memory based upon the input received by said security input device.

3. The system as recited in claim 2, wherein said security input device is an authentication sensor.

4. The system as recited in claim 3, wherein said authentication sensor is a biometric sensor.

5. The system as recited in claim 3, wherein a first user has access to a first set of account information stored in said memory based upon input received by said authentication sensor and a second user has access to a second set of account information based upon input received by said authentication sensor.

6. The system as recited in claim 5, wherein said authentication sensor is a fingerprint sensor.

7. The system as recited as claim 1, wherein said readable identifier generated by said output circuit is a magnetic signal.

8. The system as recited in claim 1, wherein said readable identifier generated by said output circuit is a bar code.

9. The system as recited in claim 1, wherein said security code is based upon an encryption algorithm.

10. The system as recited in claim 1, further comprising a status indicator operatively coupled to said processor, said status indicator configured to switch between a disabled state and an enabled state wherein said status indicator becomes enabled when said output circuit generates a readable identifier.

11. The system as recited in claim 10, wherein said status indicator becomes disabled upon being read by a card reader.

12. The system as recited in claim 10, wherein said status indicator becomes disabled when a predetermined period of time elapses after said output circuit generates a readable identifier.

13. The system as recited in claim 10, wherein said status indicator is a light that is illuminated when said status indicator is enabled.

14. The system as recited in claim 10, wherein said status indicator is a light that illuminates a first color when said status indicator is enabled and a second color when said status indicator is disabled.

15. The system as recited in claim 10, wherein said status indicator provides a first audible sound when said status indicator is enabled and a second audible sound when said status indicator is disabled.

16. The system as recited in claim 1, further comprising an interface operatively coupled to said processor for downloading account information.

17. The system as recited in claim 1, further comprising a display operatively coupled to said processor, said display showing account information stored in said memory responsive to said user input device.

18. The system as recited in claim 1, wherein said security code randomly changes based upon said internal clock residing on said host.

19. The system as recited in claim 1, wherein said security code changes after a predetermined time interval.

20. The system as recited in claim 19, wherein said security code changes at least every twenty seconds.

21. A transaction card system, said system comprising:

a drone card having a drone memory, a drone interface and an output circuit configured to generate a readable identifier corresponding to account information stored in said drone memory;

a host having a slot for receiving said drone card, said host having;

a host memory configured to store account information for at least one transaction card,

a host interface configured to communicate with said drone interface to transfer account information to said drone card,

a biometric sensor;

a processor operatively connected to said host memory, said host interface and said biometric sensor, wherein said host transfers account information to said drone memory when a user has been verified via said biometric sensor;

an enroller having a card-like portion configured to be received within said slot of said host, said enroller having a user input device capable of communicating with said host; and

wherein said host is configured to switch between a disabled state that prevents use of said host and an enabled state that allows use of said host, said host switching to said enabled state responsive to input received from said user input device of said enroller.

22. The system as recited in claim 21, wherein said biometric sensor is a fingerprint sensor.

23. The system as recited in claim 21, wherein a first user has access to a first set of account information stored in said host memory based upon input received by said biometric sensor and a second user has access to a second set of account information based upon input received by said biometric sensor.

24. The system as recited as claim 21, wherein said readable identifier generated by said output circuit of said drone card is a magnetic signal.

25. The system as recited in claim 21, wherein said readable identifier generated by said output circuit of said drone card is a bar code.

26. The system as recited in claim 21, wherein said readable identifier generated by said drone card includes a security code.

27. The system as recited in claim 26, wherein said security code differs for each transaction.

28. The system as recited in claim 26, wherein said security code sequentially changes for each transaction.

29. The system as recited in claim 26, wherein said security code is based upon an encryption algorithm.

30. The system as recited in claim 21, wherein said drone card further comprises a status indicator, said status indicator configured to switch between a disabled state and an enabled state wherein said status indicator becomes enabled when said output circuit of said drone card generates a readable identifier.

31. The system as recited in claim 30, wherein said status indicator becomes disabled when a predetermined period of time elapses after output circuit generates a readable identifier.

32. The system as recited in claim 30, wherein said status indicator is a light that is illuminated when said status indicator is enabled.

33. The system as recited in claim 21, wherein said drone interface and said host interface communicate using electrical contacts.

34. The system as recited in claim 21, wherein said drone interface and said host interface communicate using wireless communications.

35. The system as recited in claim 21, wherein said drone interface and said host interface communicate using laser communications.

36. The system as recited in claim 21, wherein said drone interface and said host interface communication using infrared communications.

37. The system as recited in claim 21, wherein said host includes a solar cell as a source of power.

38. The system as recited in claim 37, further comprising a light amplifier operatively connected to said solar cell.

39. The system as recited in claim 38, wherein said light amplifier is at least one prism overlying said solar cell.

40. The system as recited in claim 21, wherein said host includes anti-tampering means for erasing said host memory in the event that said host becomes damaged.

41. The system as recited in claim 21, wherein said drone card includes anti-tampering means for erasing said drone memory in the event that said drone card becomes damaged.

42. The system as recited in claim 21, wherein said drone card has approximately the same thickness as a standard credit card.

43. The system as recited in claim 42, wherein said host has approximately three-times the thickness of a standard credit card.

44. The system as recited in claim 21, further comprising a user input device configured to select account information for a transaction card stored in said host memory.

45. The transaction card system as recited in claim 21, wherein said enroller becomes disabled upon enabling said host.

46. The system as recited in claim 21, wherein said enroller is electronically keyed to said host.

47. A method for enrolling a transaction card system having a drone card and a host adapted to receive a portion of said drone card during a data transfer operation from said host to said drone card, said method comprising the steps of:

(a) sending a drone card and disabled host to a user;

(b) receiving a communication from said user;

(c) requiring said user to answer at least one security question; and

(d) upon satisfactory completion of step (c), providing said user with a security code which will enable said host, such that once enabled, said host functions transfer card data to said drone card.

48. The method as recited in claim 47, wherein said communication of step (b) is a phone call.

49. The method as recited in claim 47, wherein said host is preprogrammed with account information.

50. The method as recited in claim 47, wherein an enroller having a user input device is also sent in step (a).

51. The method as recited in claim 50, wherein said user enters said security code into said user input device of said enroller to enable said host.

52. A transaction card system, said system comprising:

a drone card having a drone memory, a drone interface and an output circuit configured to generate a readable identifier corresponding to account information stored in said drone memory, said drone card having a display;

a host having a slot for receiving said drone card, said host having;

a host memory configured to store account information for at least one transaction card,

a host interface configured to communicate with said drone interface to transfer account information to said drone card,

a biometric sensor;

a processor operatively connected to said host memory, said host interface and said biometric sensor, wherein said host transfers account information to said drone memory when a user has been verified via said biometric sensor; and

wherein said display on said drone card, shows a photograph of the user based upon biometric information received from the biometric sensor of said host.

53. A transaction card system, said system comprising:

a drone card having a drone memory, a drone interface and an output circuit configured to generate a readable identifier corresponding to account information stored in said drone memory;

a host having a slot for receiving said drone card, said host having;

a host memory configured to store account information for at least one transaction card,

a host interface configured to communicate with said drone interface to transfer account information to said drone card,

a biometric sensor,

a display showing a photograph of the user based upon biometric information received from said biometric sensor; and

a processor operatively connected to said host memory, said host interface and said biometric sensor, wherein said host transfers account information to said drone memory when a user has been verified via said biometric sensor.

54. A method for enrolling a transaction card having a drone card and a host adapted to receive a portion of said drone card during a data transfer operation from said host to said drone card, said method comprising the steps of:

(a) sending a drone card, disabled host, and an enroller having a user input device to a user;

(b) receiving a communication from said user;

(c) requiring said user to answer at least one security question;

(d) upon satisfactory completion of step (c), providing said user with a security code that can be inputted into said user input device of said enroller to enable said host, such that once enabled, said host functions transfer card data to said drone card; and

wherein said enroller becomes disabled upon enabling said host.

55. A method for enrolling a transaction card having a drone card and a host adapted to receive a portion of said drone card during a data transfer operation from said host to said drone card, said method comprising the steps of:

(a) receiving a drone card, disabled host, and an enroller having a user input device;

(b) answering at least one security question to obtain an unlock code;

(c) entering said unlock code into said user input device of said enroller to enable said host, such that once enabled, said host functions transfer card data to said drone card; and

(d) entering account information for at least one transaction card into said host.

56. A transaction card system, said system comprising:

a host;

a drone card having drone memory;

said host being adapted to physically receive a portion of said drone card during a data transfer operation from said host to said drone card;

said host having;

a host memory configured to store account information regarding at least one transaction card;

an output circuit configured to generate an electronically readable identifier corresponding to said at least one transaction card stored in said memory;

a user input device configured to select a transaction card stored in said memory;

a processor operatively coupled to said memory, output circuit and said user input device, wherein said output circuit generates a readable identifier responsive to input received from said user input device; and

wherein said readable identifier includes an automatically generated security code that is transferred to said drone card and is capable of being transmitted to a remote computer to authenticate a transaction, said security code being chosen from a set of multiple security codes stored in said memory based on an internal clock residing in said host.