Dynamic credit card with magnetic stripe and embedded encoder and methods for using the same to provide a copy-proof credit card

• US 7,793,851 B2
• Filed: 05/09/2006
• Issued: 09/14/2010
• Est. Priority Date: 05/09/2005
• Status: Active Grant

• Current Assignee: Dynamics Inc.
• Original Assignee: Dynamics Inc.
• Inventors: Mullen, Jeffrey D
• Primary Examiner(s): Frech; Karl D.
• Application Number:
  US11/431,254
• Publication Number:
  US 20080029607A1
• Time in Patent Office: 1,589 Days
• Field of Search: 235/375, 235/380, 235/383, 235/493, 235/382, 235/382.5, 340/5.42
• US Class Current: 235/493
• CPC Class Codes: G06K 19/077 Constructional details, e.g. mounting of circuits in the carrier
• CPC Class Codes: G06K 19/07703 the interface being visual
• CPC Class Codes: G06Q 20/105 involving programming of a portable memory device, e.g. IC cards, "electronic purses"
• CPC Class Codes: G06Q 20/24 Credit schemes, i.e. "pay after"
• 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 20/3674 involving authentication
• CPC Class Codes: G06Q 20/385 using an alias or single-use codes
• 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 20/40975 using encryption therefor
• 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 dynamic credit card is provided in which a secure credit card number (e.g., a secret/hidden credit card number) is encoded based on a timing signal (e.g., an internal counter) to provide a dynamic credit card number. This dynamic number may be displayed to a user via a display (e.g., so that online purchases can be made) or written onto a magnetic stripe such that the number may be processed by traditional credit card merchants (e.g., swiped). At a remote facility, the dynamic number may be decoded based on time (and/or a counter/key number/equation) Thus, a dynamic credit card number may change continually or periodically (e.g., every sixty seconds) such that credit card numbers may not be copied by thieves and used at later times. A dynamic verification code may also be utilized in addition to, or in lieu of, a dynamic credit card number.

Claims

1. A system comprising:

a payment card having a display for displaying a first number coded from a secure number, wherein said first coded number is displayed on said display during a first period of time and a second number is coded from said secure number and displayed on said display during a second period of time; and

a remote server, wherein said remote server validates said first coded number, without receiving timing information from the card to decode said first coded number, as part of validating a payment card transaction.

2. The system of claim 1, wherein said first coded number is communicated wirelessly to a card reader.

3. The system of claim 1, wherein said first coded number is communicated through a dynamic magnetic stripe communication device located on said payment card.

4. The system of claim 1, wherein said first coded number is communicated through a device, located on said payment card, to a magnetic stripe reader during said first period of time.

5. The system of claim 1, wherein said first coded number is communicated through a device, located on said payment card, to a magnetic stripe reader during said first period of time, said second coded number is communicated through said device during said second period of time.

6. The system of claim 1, wherein said payment card comprises a battery.

7. The system of claim 1, wherein said payment card comprises a processor for providing said first and second coded numbers.

8. The system of claim 1, wherein said first coded number comprises at least a portion of a payment card number.

9. The system of claim 1, wherein said first coded number comprises a verification code.

10. The system of claim 1, wherein said first coded number represents a first portion of a payment card number and a second portion of said payment card number is printed or imprinted on a surface of said payment card.

11. The system of claim 1, wherein said payment card does not include a magnetic stripe.

12. The system of claim 1, wherein said payment card includes a clock utilized to determine said first and second periods of time.

13. The system of claim 1, wherein said payment card includes a clock utilized to determine said first and second periods of time and said server is synched with the providing of said first and second coded numbers.

14. The system of claim 1, wherein said payment card includes a manual switch.

15. The system of claim 1, wherein said server receives a time stamp indicative of said first period of time and utilizes said time stamp as part of said validating said payment card transaction.

16. The system of claim 1, wherein said server receives said first coded number during said first period of time.

17. The system of claim 1, wherein information indicative of card tampering is displayed on said display.

18. The system of claim 1, wherein information indicative of time is displayed on said display.

19. The system of claim 1, wherein fraudulent use of said payment card is detected and an account hold is associated with said payment card.

20. The system of claim 1, further comprising a card reader, wherein said payment card includes a front surface and a rear surface and said card reader is operable to obtain said first coded number from said front surface and said rear surface.

21. The system of claim 1, wherein said payment card comprises a second display, wherein a third coded number is displayed on said second display during said first period of time and said third coded number is utilized in said validating said payment card transaction.

22. The system of claim 1, wherein said first coded number comprises a fifteen digit payment card number.

23. The system of claim 1, wherein said first coded number comprises a four digit verification code.

24. The system of claim 1, wherein said payment card comprises a battery, and information is transmitted from said credit card indicative of said battery being low.

25. The system of claim 1, wherein said card further comprises a security number provided on said card and that the first coded number includes at least a portion of a payment card number.

26. The system of claim 1, wherein said first coded number is encoded on a magnetic stripe located on said payment card by an encoder located on the card.

27. A method comprising:

coding a secure number on a payment card based on time to provide a first coded number;

displaying on a display of said payment card said first coded number during a first period of time;

coding said secure number of said payment card based on time to provide a second coded number;

displaying on said display said second coded number during a second period of time; and

communicating said first coded number from a device on said payment card, wherein said communicated first coded number is operable to be read from said device by a magnetic stripe reader and said communicated first coded number is operable to validate a payment card transaction.

28. The method of claim 27, wherein said first coded number comprises at least a portion of a payment card number.

29. The method of claim 27, wherein said first coded number comprises a verification code.

30. The method of claim 27, wherein said first coded number represents a first portion of a payment card number and a second portion of said payment card number is printed or imprinted on a surface of said payment card.

31. The method of claim 27, wherein said payment card includes a clock utilized to determine said first and second periods of time.

32. The method of claim 27, wherein information indicative of card tampering is displayed on said display.

33. The method of claim 27, wherein information indicative of time is displayed on said display.

34. The method of claim 27, wherein fraudulent use of said payment card is detected and an account hold is associated with said payment card.

35. The method of claim 27, wherein said payment card includes a front surface and a rear surface and said reader is operable to obtain said first coded number from said front surface and said rear surface.

36. The method of claim 27, wherein said payment card comprises a second display, wherein a third coded number is displayed on said second display during said first period of time and said third coded number is utilized in said validating said payment card transaction.

37. The method of claim 27, wherein said first coded number comprises a fifteen digit payment card number.

38. The method of claim 27, wherein said first coded number comprises a four digit verification code.

39. A machine-readable medium, executable by a machine, that includes program logic imprinted thereon for performing the method comprising:

coding a secure number on a payment card based on time to provide a first coded number;

displaying on a display of said payment card said first coded number during a first period of time;

coding said secure number on said credit card based on time to provide a second coded number;

displaying on said display said second coded number during a second period of time; and

communicating said first coded number from a device located on said payment card, wherein said first coded number is operable to be read from said device by a magnetic stripe reader and said first coded number is utilized to validate a payment card transaction.

40. The machine-readable medium of claim 39, wherein said first coded number comprises at least a portion of a payment card number.

41. The machine-readable medium of claim 39, wherein said first coded number comprises a verification code.

42. The machine-readable medium of claim 39, wherein said first coded number represents a first portion of a payment card number and a second portion of said payment card number is printed or imprinted on a surface of said payment card.

43. The machine-readable medium of claim 39, wherein said payment card includes a clock utilized to determine said first and second periods of time.

44. The machine-readable medium of claim 39, wherein information indicative of card tampering is displayed on said display.

45. The machine-readable medium of claim 39, wherein information indicative of time is displayed on said display.

46. The machine-readable medium of claim 39, wherein fraudulent use of said payment card is detected and an account hold is associated with said payment card.

47. The machine-readable medium of claim 39, wherein said payment card includes a front surface and a rear surface and said reader is operable to obtain said first coded number from said front surface and said rear surface.

48. The machine-readable medium of claim 39, wherein said payment card comprises a second display, wherein a third coded number is displayed on said second display during said first period of time and said third coded number is utilized in said validating said payment card transaction.

49. The machine-readable medium of claim 39, wherein said first coded number comprises a fifteen digit credit card number.

50. The machine-readable medium of claim 39, wherein said first coded number comprises a four digit verification code.