System and method for mass transit merchant payment

• US 7,731,086 B2
• Filed: 06/09/2006
• Issued: 06/08/2010
• Est. Priority Date: 06/10/2005
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Barnes, Brian T., Saunders, Peter D., Peart, Lee J.
• Primary Examiner(s): Lee, Seung H
• Application Number:
  US11/423,388
• Publication Number:
  US 20060278704A1
• Time in Patent Office: 1,460 Days
• Field of Search: 235/379, 235/382, 235/380, 235/384, 235/492
• US Class Current: 235/382
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• 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 20/382 insuring higher security of transaction
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: G07B 15/04 comprising devices to free a barrier, turnstile, or the like turnstiles with registering means G07C9/10; coin-freed aspects G07F17/00
• CPC Class Codes: G07C 9/10 Movable barriers with registering means
• 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 7/088 the card reader being part of the point of sale [POS] terminal or electronic cash register [ECR] itself
• CPC Class Codes: G07F 7/0893 the card reader reading the card in a contactless manner

Abstract

Methods, systems and computer program products are provided for enabling payment of transit system fees using a financial transaction instrument. Entry is permitted onto a transit system by recognition of information included in an identification number stored on a financial transaction instrument. The identification number stored on the financial transaction instrument is associated with a transit system fee registered for each use of the transit system. A plurality of transit system fees associated with the same identification number from use of the financial transaction instrument is aggregated, and payment for the aggregated transit system fees is requested from a transaction account associated with the financial transaction instrument.

Claims

1. A method for enabling payment of transit system fees using a financial transaction instrument, said method comprising the steps of:

permitting entry into a transit system by recognition of information included in an identification number stored on a financial transaction instrument, wherein the identification number is distinct from a primary transaction account number associated with (1) a transaction account and (2) the financial transaction instrument;

associating the identification number stored on the financial transaction instrument with a transit system fee registered for use of the transit system;

aggregating a plurality of transit system fees associated with the identification number from use of the financial transaction instrument; and

requesting payment for the aggregated transit system fees from the transaction account associated with the financial transaction instrument, wherein the requesting includes transmitting the identification number to a transaction instrument issuer for matching with the primary transaction account number associated with the transaction account for processing and settlement.

2. The method of claim 1, further comprising the step of recording the registered transit system fees associated with the same identification number for each use of the transit system.

3. The method of claim 1, wherein the identification number is created by a mass transit operator and is associated with a mass transit account.

4. The method of claim 3, wherein an authorization message for the aggregated transit system fees is obtained prior to requesting payment.

5. The method of claim 1, wherein requesting payment for the aggregated transit system fees further includes transmitting an encrypted secondary transaction account number and a total aggregated transit system fee amount to the transaction instrument issuer for matching with the primary transaction account number associated with the transaction account for final processing and settlement.

6. The method of claim 5, wherein the secondary transaction account number is encrypted with a digital signature.

7. The method of claim 1, wherein requesting payment for the aggregated transit system fees further includes transmitting a total aggregated transit system fee amount to the transaction instrument issuer for final processing and settlement.

8. The method of claim 1, wherein the financial transaction instrument is a credit card.

9. The method of claim 1, wherein the information included in the identification number is a designation of a range of Mass Transit numbers, each constituting a separate identification and provided by a transit system operator for incorporation into the financial transaction instrument.

10. The method of claim 1, wherein the plurality of transit system fees registered over a period of time is aggregated into a single financial transaction.

11. The method of claim 10, wherein the plurality of transit system fees registered over a period of time are tallied as a series of individual transactions prior to aggregation into a single transaction.

12. The method of claim 1, wherein the primary transaction account number associated with the financial transaction instrument is not stored on the transit system.

13. A computer system for enabling payment of transit system fees using a financial transaction instrument, comprising:

an interface for permitting entry into a transit system by recognition of information included in an identification number stored on a financial transaction instrument, wherein the identification number is distinct from a primary transaction account number associated with (1) a transaction account and (2) the financial transaction instrument;

a database for storing a record of the identification number; and

a processor for;

managing said interface and said database,

associating the identification number stored on the financial transaction instrument with a transit system fee registered for use of the transit system,

aggregating a plurality of transit system fees associated with the identification number from use of the financial transaction instrument, and

requesting payment for the aggregated transit system fees from a transaction account associated with the financial transaction instrument, wherein the requesting includes transmitting the identification number to a transaction instrument issuer for matching with the primary transaction account number associated with the transaction account for processing and settlement.

14. The system of claim 13, further comprising:

a network for transmitting a payment request to the transaction instrument issuer.

15. The system of claim 14, wherein the network is the Internet.

16. The system of claim 14, wherein the network is a closed payment network for securely authorizing and settling the payment request.

17. The system of claim 13, wherein the processor additionally aggregates the plurality of transit system fees registered over a period of time into a single financial transaction.

18. The system of claim 17, wherein the processor tallies the plurality of transit system fees registered over a period of time as a series of individual transactions prior to aggregation into a single transaction.

19. The system of claim 13, wherein the processor additionally obtains an authorization message for the aggregated transit system fees prior to requesting payment.

20. The system of claim 13, wherein the interface is a gate terminal configured to interrogate and recognize the identification number stored on the financial transaction instrument by radio frequency identification (RFID).

21. The system of claim 13, wherein the database does not store any primary financial transaction account number associated with the financial transaction instrument for payment of the aggregated transit system fees.

22. A computer program product comprising a computer usable medium having control logic stored therein for causing a computer to enable payment of transit system fees using a financial transaction instrument, said control logic comprising:

first computer readable program code means for causing the computer to permit entry into a transit system by recognition of information included in an identification number stored on a financial transaction instrument, wherein the identification number is distinct from a primary transaction account number associated with (1) a transaction account and (2) the financial transaction instrument;

second computer readable program code means for causing the computer to associate the identification number stored on the financial transaction instrument with a transit system fee registered for use of the transit system;

third computer readable program code means for causing the computer to aggregate a plurality of transit system fees associated with the identification number from use of the financial transaction instrument; and

fourth computer readable program code means for causing the computer to request payment for the aggregated transit system fees from the transaction account associated with the financial transaction instrument, wherein requesting payment for the aggregated transit system fees includes transmitting the identification number to a transaction instrument issuer for matching with the primary transaction account number associated with the transaction account for processing and settlement.

23. The computer program product of claim 22, wherein the requesting payment for the aggregated transit system fees further includes recording the registered transit system fees associated with the identification number for each use of the transit system.

24. The computer program product of claim 22, wherein the identification number is created by a mass transit operator and is associated with a mass transit account.

25. The computer program product of claim 24, further comprising:

fifth computer program product code means for causing the computer to obtain an authorization message for the aggregated transit system fees prior to requesting payment.

26. The computer program product of claim 22, wherein the requesting payment for the aggregated transit system fees further includes transmitting an encrypted secondary transaction account number and a total aggregated transit system fee amount to the transaction instrument issuer for matching with the primary transaction account number associated with the transaction account for final processing and settlement.

27. The computer program product of claim 22, wherein the requesting payment for the aggregated transit system fees further includes transmitting a total aggregated transit system fee amount to a transaction instrument issuer for final processing and settlement.

28. The computer program product of claim 22, further comprising:

fifth computer program product code means for causing the computer to aggregate the plurality of transit system fees registered over a period of time into a single financial transaction.

29. The computer program product of claim 28, further comprising:

sixth computer program product code means for causing the computer to tally the plurality of transit system fees registered over a period of time as a series of individual transactions prior to aggregation into a single transaction.