Portable electronic authorization system and method

• US 7,003,495 B1
• Filed: 09/28/2000
• Issued: 02/21/2006
• Est. Priority Date: 09/28/1999
• Status: Expired due to Term

• Current Assignee: Kioba Processing, LLC (IP Investments Group LLC)
• Original Assignee: Chameleon Network Incorporated
• Inventors: Cohen, Rob, Jessen, Karlin, Hassol, Joshua, Lipoff, Stuart, Burger, Todd O.
• Primary Examiner(s): Reagan, James A
• Application Number:
  US09/675,438
• Time in Patent Office: 1,972 Days
• Field of Search: 705/67, 705 39- 41, 705/26, 705/14, 705/27, 705/68, 705/44, 705/50, 705/75, 713/200, 713/201, 713/202, 713/172, 235/375, 235/379, 235/380, 235/487, 235/492, 710/33, 380/30
• US Class Current: 705/50
• CPC Class Codes: G06F 21/6218 to a system of files or objects, e.g. local or distributed file system or database
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• 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 20/3576 Multiple memory zones on card
• CPC Class Codes: G06Q 20/3676 Balancing accounts
• CPC Class Codes: G06Q 20/40 Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
• CPC Class Codes: G06Q 20/401 Transaction verification
• CPC Class Codes: G06Q 30/0207 Discounts or incentives, e.g. coupons or rebates
• CPC Class Codes: G06Q 30/0277 Online advertisement
• CPC Class Codes: G06Q 30/0641 Shopping interfaces
• 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

In one embodiment an apparatus includes a housing; a user authenticator, supported by the housing, that authenticates an identity of a user; at least one memory, supported by the housing, that stores transaction information for at least first and second media; and at least one output, supported by the housing, that releases at least a portion of the transaction information to a point-of-sale (POS) terminal after the user authenticator has authenticated the identity of the user. In another embodiment, a method involves steps of: storing transaction information for at least first and second media in a memory of a device; receiving as input a user'"'"'s selection of one of the at least first and second media; displaying a visual indication to the user regarding which of the at least first and second media has been selected; and transferring at least a portion of the transaction information from the device to a point-of-sale (POS) terminal.

Claims

1. A method, comprising steps of:

(A) storing at least first account information for a first media issued by a first media issuer and second account information for a second media issued by a second media issuer in a database in communication with a transfer server so that the first account information and the second account information exist simultaneously in the database;

(B) establishing a communication link via a non-dedicated public communications channel between a controller associated with the database and a portable electronic device distinct and remotely located from the database, and transferring at least the first account information and the second account information from the database to a memory of the portable electronic device via the communication link so that at least the first account information and the second account information are caused to exist simultaneously in the memory of the portable electronic device;

(C) transporting the portable electronic device to a vicinity of a first point-of-sale (POS) terminal;

(D) when the portable electronic device is in the vicinity of the first POS terminal, manipulating a user input of the portable electronic device to select the first media for use in a first transaction at the first POS terminal;

(E1) causing a token attached to the portable electronic device to embody at least a portion of the first account information;

(E2) after performing the step (E1), detaching the token from the portable electronic device, with the token continuing to embody at least the portion of the first account information after the token has been detached from the portable electronic device;

(E3) after performing the step (E2), and when the token is still detached from the portable electronic device, interfacing the token with the first POS terminal and transferring at least the portion of the first account information from the token to the first POS terminal;

(E4) after performing the step (E3), reattaching the token to the portable electronic device;

(F) transporting the portable electronic device to a vicinity of a second POS terminal;

(G) when the portable electronic device is in the vicinity of the second POS terminal, manipulating the user input on the portable electronic device to select the second media for use in a second transaction at the second POS terminal;

(H1) causing the token to embody at least a portion of the second account information;

(H2) after performing the step (H1), detaching the token from the portable electronic device, with the token continuing to embody at least the portion of the second account information after the token has been detached from the portable electronic device;

(H3) after performing the step (H2), and when the token is still detached from the portable electronic device, interfacing the token with the second POS terminal and transferring at least the portion of the second account information from the token to the second POS terminal; and

(H4) after performing the step (H3), re-attaching the token to the portable electronic device.

2. The method of claim 1, further comprising steps of:

(I) employing a user-authenticator included in the first portable electronic device to authenticate an identity of a user of the first portable electronic device; and

(J) enabling each of the steps (E2) and (H2) to be performed only after the user authenticator has authenticated the identity of the user.

3. The method of claim 2, wherein the step (I) comprises:

measuring a biometric characteristic of the user of the portable electronic device; and

comparing the measured biometric characteristic with a representation of a biometric characteristic stored in memory of the portable electronic device.

4. The method of claim 1, wherein the first and second media issuers are unrelated.

5. The method of claim 1, further comprising steps of:

(I) storing at least third account information for a third media issued by a third media issuer and fourth account information for a fourth media issued by a fourth media issuer in the database so that the first account information, second account information, third account information, and fourth account information exist simultaneously in the database;

(J) establishing a second communication link via a non-dedicated public communications channel between the controller associated with the database and a second portable electronic device distinct and remotely located from the database, and transferring at least the third account information and the fourth account information from the database to a memory of the second portable electronic device via the second communication link so that at least the third account information and the fourth account information are caused to exist simultaneously in the memory of the second portable electronic device;

(K) transporting the second portable electronic device to a vicinity of a third POS terminal;

(L) when the second portable electronic device is in the vicinity of the third POS terminal, manipulating a user input of the second portable electronic device to select the third media for use in a third transaction at the third POS terminal;

(M1) causing a second token attached to the second portable electronic device to embody at least a portion of the third account information;

(M2) after performing the step (M1), detaching the second token from the second portable electronic device, with the second token continuing to embody at least the portion of the third account information after the second token has been detached from the second portable electronic device;

(M3) after performing the step (M2), and when the second token is still detached from the second portable electronic device, interfacing the second token with the third POS terminal and transferring at least the portion of the third account information from the second token to the third POS terminal;

(M4) after performing the step (M3), re-attaching the second token to the second portable electronic device;

(N) transporting the second portable electronic device to a vicinity of a fourth POS terminal;

(O) when the second portable electronic device is in the vicinity of the fourth POS terminal, manipulating the user input on the second portable electronic device to select the fourth media for use in a fourth transaction at the fourth POS terminal;

(P1) causing the second token to embody at least a portion of the fourth account information;

(P2) after performing the step (P1), detaching the second token from the second portable electronic device, with the second token continuing to embody at least the portion of the fourth account information after the second token has been detached from the second portable electronic device;

(P3) after performing the step (P2), and when the second token is still detached from the second portable electronic device, interfacing the second token with the fourth POS terminal and transferring at least the portion of the fourth account information from the second token to the fourth POS terminal; and

(P4) after performing the step (P3), re-attaching the second token to the second portable electronic device.

6. The method of claim 1, wherein the step (E1) further comprises causing the token to embody at least the portion of the first account information so that at least the portion of the first account information can be read from the token by a magnetic stripe reader.

7. The method of claim 6, wherein the step (E1) further comprises causing a simulated magnetic stripe to be generated on the token.

8. The method of claim 1, further comprising steps of:

(I) employing a user-authenticator included in the first portable electronic device to authenticate an identity of a user of the first portable electronic device; and

(J) enabling the transfer of at least the first account information and the second account information from the database to the memory of the portable electronic device to be performed only after the user authenticator has authenticated the identity of the user.

9. The method of claim 8, wherein the first and second media issuers are unrelated, and the method further comprises steps of:

enabling the transfer of the first account information from the database to the memory of the portable electronic device to be performed only after the controller associated with the database has received an authorization signal from the first media issuer; and

enabling the transfer of the second account information from the database to the memory of the portable electronic device to be performed only after the controller associated with the database has received an authorization signal from the second media issuer.

10. The method of claim 1, wherein the first and second media issuers are unrelated, and the method further comprises steps of:

enabling the transfer of the first account information from the database to the memory of the portable electronic device to be performed only after the controller associated with the database has received an authorization signal from the first media issuer; and

enabling the transfer of the second account information from the database to the memory of the portable electronic device to be performed only after the controller associated with the database has received an authorization signal from the second media issuer.

11. The method of claim 1, wherein the communications link comprises a secure communications link.

12. A method, comprising steps of:

(A) storing a first version of information including at least first account information for a first media issued by a first media issuer and second account information for a second media issued by a second media issuer in a memory of a portable electronic device so that at least the first account information and the second account information exist simultaneously in the memory;

(B) storing a second version of information including at least the first account information and the second account information in a database in communication with a transfer server distinct and remotely located from the portable electronic device so that at least the first account information and the second account information exist simultaneously in the database;

(C) transporting the portable electronic device to a vicinity of a first point-of-sale (POS) terminal;

(D) when the portable electronic device is in the vicinity of the first POS terminal, manipulating a user input on the portable electronic device to select the first media for use in a first transaction at the first POS terminal;

(E1) causing a token attached to the portable electronic device to embody at least a portion of the first account information;

(E2) after performing the step (E1), detaching the token from the portable electronic device, with the token continuing to embody at least the portion of the first account information after the token has been detached from the portable electronic device;

(E3) after performing the step (E2), and when the token is still detached from the portable electronic device, interfacing the token with the first POS terminal and transferring at least the portion of the first account information from the token to the first POS terminal;

(E4) after performing the step (E3), reattaching the token to the portable electronic device;

(F) transporting the portable electronic device to a vicinity of a second POS terminal;

(G) when the portable electronic device is in the vicinity of the second POS terminal, manipulating the user input on the portable electronic device to select the second media for use in a second transaction at the second POS terminal;

(H1) causing the token to embody at least a portion of the second account information;

(H2) after performing the step (H1), detaching the token from the portable electronic device, with the token continuing to embody at least the portion of the second account information after the token has been detached from the portable electronic device;

(H3) after performing the step (H2), and when the token is still detached from the portable electronic device, interfacing the token with the second POS terminal and transferring at least the portion of the second account information from the taken to the second POS terminal;

(H4) after performing the step (H3), re-attaching the token to the portable electronic device;

(I) altering one of the first version of information stored in the memory of the portable electronic device and the second version of information stored in the database; and

(J) establishing a communication link via a non-dedicated public communications channel between a controller associated with the database and the portable electronic device, and communicating commands between the controller associated with the database and the portable electronic device that cause the alteration in the one of the first version of information stored in the memory of the portable electronic device and the second version of information stored in the database to be reflected in the other of the first version of information stored in the memory of the portable electronic device and the second version of information stored in the database.

13. The method of claim 12, further comprising steps of:

(K) employing a user-authenticator included in the portable electronic device to authenticate an identity of a user of the portable electronic device; and

(L) enabling each of the steps (E2) and (H2) to be performed only after the user authenticator has authenticated the identity of the user.

14. The method of claim 13, wherein the step (K) comprises:

measuring a biometric characteristic of the user of the portable electronic device; and

comparing the measured biometric characteristic with a representation of a biometric characteristic stored in memory of the portable electronic device.

15. The method of claim 12, wherein the first and second media issuers are unrelated.

16. The method of claim 12, wherein the step (E1) further comprises causing the token to embody at least the portion of the first account information so that at least the portion of the first account information can be read from the token by a magnetic stripe reader.

17. The method of claim 16, wherein the step (E1) further comprises causing a simulated magnetic stripe to be generated on the token.

18. The method of claim 12, further comprising steps of:

(K) employing a user-authenticator included in the first portable electronic device to authenticate an identity of a user of the first portable electronic device; and

(L) enabling the communication of commands between the controller associated with the database and the portable electronic device that cause the alteration in the one of the first version of information stored in the memory of the portable electronic device and the second version of information stored in the database to be reflected in the other of the first version of information stored in the memory of the portable electronic device and the second version of information stored in the database to take place only after the user authenticator has authenticated the identity of the user.

19. The method of claim 12, wherein the communications link comprises a secure communications link.

20. A system, comprising:

a transferring server comprising a database and a database controller, the database having stored therein so as to be accessible by the database controller at least first account information for a first media issued by a first media issuer and second account information for a second media issued by a second media issuer; and

a portable electronic device, distinct and remotely located from the network server, comprising a device controller, a memory, a user input device, a port, and a token releasably retained in the port, the device controller being configured to establish a communication link with the network server via a non-dedicated public communications channel and to enable a transfer of at least the first account information and the second account information from the database to the memory of the portable electronic device via the communication link, the device controller being further configured to select one of the first media and the second media for use in a transaction at a point-of-sale (POS) terminal in response to manipulation of the user input device, and to cause the token to embody at least a portion of the one of the first account information and the second account information that corresponds to the selected one of the first media ard the second media, the token being configured so that after the token is released from the port, the token can be interfaced with the POS terminal to transfer the information embodied by the token to the POS terminal.

21. The system of claim 20, wherein the portable electronic device further comprises a user-authenticator to authenticate an identity of a user of the portable electronic device, and the device controller is configured to enable the token embodying the one of the first account information and the second account information to be released from the port only after the user authenticator has authenticated the identity of the user.

22. The method of claim 21, wherein the user authenticator is configured to analyze a biometric characteristic of the user.

23. The system of claim 20, wherein the first and second media issuers are unrelated.

24. The system of claim 20, wherein the device controller is further configured to cause the token to embody at least the portion of the one of the first account information and the second account information that corresponds to the selected one of the first media and the second media so that the information embodied by the token can be read by a magnetic stripe reader included in the POS terminal.

25. The system of claim 24, wherein the device controller is further configured to cause the token to generate a simulate magnetic stripe that represents at least the portion of the one of the first account information and the second account information that corresponds to the selected one of the first media and the second media.

26. The system of claim 20, wherein the portable electronic device further comprises a user-authenticator to authenticate an identity of a user of the portable electronic device, and wherein the network server is configured to enable the transfer of at least the first account information and the second account information from the database to the memory of the portable electronic device to be performed only after the user authenticator has authenticated the identity of the user.

27. The system of claim 26, wherein the first and second media issuers are unrelated, and wherein the network server is further configured to enable the transfer of the first account information from the database to the memory of the portable electronic device to be performed only after the database controller has received an authorization signal from the first media issuer, and to enable the transfer of the second account information from the database to the memory of the portable electronic device to be performed only after the database controller has received an authorization signal from the second media issuer.

28. The system of claim 20, wherein the first and second media issuers are unrelated, and wherein the network server is further configured to enable the transfer of the first account information from the database to the memory of the portable electronic device to be performed only after the database controller has received an authorization signal from the first media issuer, and to enable the transfer of the second account information from the database to the memory of the portable electronic device to be performed only after the database controller has received an authorization signal from the second media issuer.

29. The system of claim 20, wherein the communications link comprises a secure communications link.

30. A system, comprising:

a transferring server comprising a database controller in communication with a database, the database having stored therein a first version of information including at least first account information for a first media issued by a first media issuer and second account information for a second media issued by a second media issuer; and

a portable electronic device, distinct and remotely located from the network server, comprising a device controller, a memory, a user input device, a port, and a token releasably retained in the port, the memory having stored therein a second version of information including at least the first account information and the second account information, the device controller being configured to establish a communication link with the network server via a non-dedicated public communications channel and to enable communication of commands between the database controller and the device controller that cause alterations in one of the first version of information stored in the database and the second version of information stored in the memory to be reflected in the other of the first version of information stored in the database and the second version of information stored in the memory, the device controller being further configured to select one of the first media and the second media for use in a transaction at a point-of-sale (POS) terminal in response to manipulation of the user input device, and to cause the token to embody at least a portion of the one of the first account information and the second account information that corresponds to the selected one of the first media and the second media, the token being configured so that, after the token is released from the port, the token can be interfaced with the POS terminal to transfer the information embodied by the token to the POS terminal.

31. The system of claim 30, wherein the portable electronic device further comprises a user-authenticator to authenticate an identity of a user of the portable electronic device, and the device controller is configured to enable the token embodying the one of the first account information and the second account information to be released from the port only after the user authenticator has authenticated the identity of the user.

32. The system of claim 31, wherein the user authenticator is configured to analyze a biometric characteristic of the user.

33. The system of claim 30, wherein the device controller is further configured to cause the token to embody at least the portion of the one of the first account information and the second account information that corresponds to the selected one of the first media and the second media so that the information embodied by the token can be read by a magnetic stripe reader included in the POS terminal.

34. The system of claim 33, wherein the device controller is further configured to cause the token to generate a simulate magnetic stripe that represents at least the portion of the one of the first account information and the second account information that corresponds to the selected one of the first media and the second media.

35. The system of claim 30, wherein the first and second media issuers are unrelated.

36. The system of claim 30, wherein the portable electronic device further comprises a user-authenticator to authenticate an Identity of a user of the portable electronic device, and the network server is configured to enable communication of commands between the database controller and the device controller that cause alterations in one of the first version of information stored in the database and the second version of information stored in the memory to be reflected in the other of the first version of information stored in the database and the second version of information stored in the memory to take place only after the user authenticator has authenticated the identity of the user.

37. The system of claim 30, wherein the communications link comprises a secure communications link.

38. A system, comprising:

a transferring server in communication with a database having stored therein at least first account information for a first media issued by a first media issuer and second account information for a second media issued by a second media issuer;

a portable electronic device, distinct and remotely located from the database, comprising a memory, a port, and a token releasably retained in the port;

means for establishing a communication link via a non-dedicated public communications channel between a controller associated with the database and the portable electronic device, and for transferring at least the first account information and the second account information from the database to the memory of the portable electronic device via the communication link so that at least the first account information and the second account information are caused to exist simultaneously in the memory of the portable electronic device;

means for selecting one of the first media and the second media for use in a transaction at a point-of-sale (POS) terminal;

means for causing the token to embody at least a portion of one of the first account information and the second account information that corresponds to the selected one of the first media and the second media; and

means for releasing the token from the port so that the token can be used to authorize the transaction at the POS terminal.

39. A system, comprising:

a portable electronic device comprising a memory having stored therein a first version of information including at least first account information for a first media issued by a first media issuer and second account information for a second media issued by a second media issuer, means for selecting one of the first media and the second media for use in a transaction at a point-of-sale (POS) terminal, a port, a token releasably retained in the port, means for causing the token to embody at least a portion of one of the first account information and the second account information that corresponds to the selected one of the first media and the second media, and means for releasing the token from the port so that the token can be used to authorize the transaction at the POS terminal;

a transferring server in communication with a database, distinct and remotely located from the portable electronic device, having stared therein a second version of information including at least the first account information and the second account information; and

means for establishing a communication link via a non-dedicated public communications channel between a controller associated with the database and the portable electronic device, and for causing alterations In one of the first version of information stored in the portable electronic device and the second version of information stored in the database to be reflected in the other of the first version of information stored in the portable electronic device and the second version of information stored in the database.