System and method for carrying out secure transactions

• US 8,276,814 B1
• Filed: 07/10/2009
• Issued: 10/02/2012
• Est. Priority Date: 07/12/2008
• Status: Active Grant

• Current Assignee: Kim C. Davis
• Original Assignee: Kim C. Davis
• Inventors: Davis, Kim C.
• Primary Examiner(s): Lee, Michael G
• Assistant Examiner(s): Savusdiphol, Paultep
• Application Number:
  US12/500,804
• Time in Patent Office: 1,180 Days
• Field of Search: 235/375, 235/379, 235/380, 235/487, 235/492
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/349 Rechargeable cards
• CPC Class Codes: G06Q 20/352 Contactless payments by cards

Abstract

A multi-function stored-value debit card system includes smart cards carried by a user, as well as associated hardware, software, and communications networks configured to allow a user of the system to carry out secure transactions. Smart cards are distributed to patrons by a business desiring the patrons to use them to carry out commercial transactions while visiting points of sale of the business. Patrons use the cards as stored-value debit cards and for other optional applications unique to the business. Monetary values are physically carried on the card. A card reader capable of sensing multiple identifiers is associated with the smart cards. At least one of the identifiers is visually perceivable, while at least one identifier is not visually perceivable. A processor is included for treating the sensed identifiers according to a predetermined algorithm to derive a unique code for use in generating a secure transaction.

Claims

1. A system for carrying out secure transactions, comprising:

a transaction card including;

a card memory portion;

transaction card criteria comprising a fixed, unique, non-visually perceivable, machine-read card identification number, the card identification number being stored in the memory portion, and

a visually perceivable, machine-readable card code, the visually perceivable card code differing from the non-visually perceivable card identification number and being placed on a surface of the transaction card;

a deposit terminal to receive the transaction card, obtain the transaction card criteria from the transaction card, analyze the transaction card criteria and, when the transaction card has not been previously utilized, associate the transaction card with a specific user and create a transaction record corresponding to the transaction card and the user, the transaction record being stored within the deposit terminal, the deposit terminal further being configured to encode the card memory portion with deposit data relating to a predetermined monetary value and to further store the deposit data in the transaction record;

a payment terminal for conducting offline commercial transactions based solely upon the transaction card criteria and the monetary value stored upon the transaction card, the payment terminal receiving the transaction card, obtaining the transaction card criteria and stored monetary value from the transaction card and updating the monetary value stored in the card memory portion to reflect commercial transactions, the payment terminal further storing information relating to the transaction card and the commercial transactions conducted using the transaction card; and

a database, the database receiving the non-visually perceivable card identification number and the visually perceivable card code, the database further receiving secret information from a rightful user of the transaction card,

the database utilizing the non-visually perceivable card identification number, the visually perceivable card code and the secret information as inputs to an algorithm, the algorithm generating a unique card account number,

the unique card account number being associated with an individual card account, the individual card account storing transaction history information relating to the transaction card and the validity status of the transaction card,

the validity status of the transaction card being periodically provided to the deposit and payment terminals.

2. The system of claim 1 wherein the transaction card is a contactless-type card configured to transmit and receive data by means of radio frequency communications.

3. The system of claim 1, further including:

a control connectable to a network, the deposit terminal and the payment terminal likewise being connectable to the network; and

the database being accessible by the control;

the control being configured to;

periodically poll the deposit terminal to obtain the deposit data, the deposit data being stored in the database,

periodically poll the point of sale terminal to obtain the information relating to the commercial transactions, the commercial transaction information being stored in the database, and

adjust the balance of the deposit transaction information stored in the database in the amount corresponding to the commercial transaction information.

4. The system of claim 3 wherein the network is a wireless network.

5. The system of claim 1 wherein the transaction card criteria does not include personally-identifiable data.

6. The system of claim 1 wherein the transaction card criteria further includes secret information supplied by the specific user.

7. The system of claim 1 wherein the transaction card criteria further includes an encryption key associating the transaction card to the system.

8. The system of claim 1 wherein the transaction card criteria further includes a predetermined site code.

9. A method for carrying out secure transactions, comprising the steps of:

providing a transaction card having a card memory portion and further including transaction card criteria comprising a fixed, unique, non-visually perceivable, machine-read card identification number, the card identification number being stored in the memory portion, and a visually perceivable, machine-readable card code, the visually perceivable card code differing from the non-visually perceivable card identification number and being placed on a surface of the transaction card;

providing a deposit terminal to receive the transaction card, obtain the transaction card criteria from the transaction card, analyze the transaction card criteria and, when the transaction card has not been previously utilized, associate the transaction card with a specific user and create a transaction record corresponding to the transaction card and the user, the transaction record being stored within the deposit terminal, the deposit terminal further being configured to encode the card memory portion with deposit data relating to a predetermined monetary value and to further store the deposit data in the transaction record;

providing a payment terminal for conducting offline commercial transactions based solely upon the transaction card criteria and the monetary value stored upon the transaction card, the payment terminal receiving the transaction card, obtaining the transaction card criteria and stored monetary value from the transaction card and updating the monetary value stored in the card memory portion to reflect commercial transactions, the payment terminal further storing information relating to the transaction card and the commercial transactions conducted using the transaction card; and

providing a database, the database receiving the non-visually perceivable card identification number and the visually perceivable card code, the database further receiving secret information from a rightful user of the transaction card,

the database utilizing the non-visually perceivable card identification number, the visually perceivable card code and the secret information as inputs to an algorithm, the algorithm generating a unique card account number,

the unique card account number being associated with an individual card account, the individual card account storing transaction history information relating to the transaction card and the validity status of the transaction card,

the validity status of the transaction card being periodically provided to the deposit and payment terminals.

10. The method of claim 9, further including the step of transferring funds to the transaction card by means of an internet web site.

11. The method of claim 10, further including the step of transferring funds to the transaction record by means of a kiosk.

12. The method of claim 10, further including the step of transferring funds to the transaction record by means of a customer service center.

13. The method of claim 9, further including the step of recording, in the transaction record, a predetermined indication, thereby rendering the transaction card unusable.

14. The method of claim 9, further including the step of storing, at a remote site, information relating to the transaction card, deposit account, deposit information and commercial transaction.

15. A payment terminal for securely conducting offline commercial transactions comprising:

a card reader configured to sense a plurality of transaction card criteria associated with a transaction card having a memory portion, at least one transaction card criterion being visually perceivable and at least one transaction card criterion being non-visually perceivable, the card reader further being configured to retrieve and modify available funds data stored upon the transaction card,

the at least one non-visually perceivable card criterion comprising a fixed, unique, machine-read first card identification number, the first card identification number being stored in the memory portion,

the at least one visually perceivable card criterion comprising a fixed, unique, second card identification number, the second card identification number differing from the first card identification number and being placed on a surface of the transaction card in two forms, one of which is human readable and one of which is machine-read but not stored in the memory portion,

the payment terminal being configured to retrieve available funds data from a select transaction card, debit an amount of a commercial transaction from the available funds data of the select transaction card, and modify the available funds data stored upon the transaction card to reflect the commercial transaction, and

the payment terminal conducting the commercial transaction based solely upon the transaction card criteria and the available funds data.

16. The payment terminal of claim 15 wherein the payment terminal further stores information relating to the transaction card and the commercial transactions in a terminal memory portion.

17. The payment terminal of claim 15, further comprising a processor, the processor receiving the sensed transaction card criteria and incorporating them into a predetermined algorithm to generate a unique card account number for use in generating a secure transaction.

18. The payment terminal of claim 17 wherein:

the processor is remotely located from the payment terminal; and

the processor periodically polls the payment terminal to obtain transaction data.

19. A deposit terminal for securely conducting offline commercial transactions comprising:

a card reader configured to sense a plurality of transaction card criteria associated with a transaction card having a memory portion, at least one transaction card criterion being visually perceivable and at least one transaction card criterion being non-visually perceivable, the card reader further being configured to retrieve and modify available funds data stored upon the transaction card,

the at least one non-visually perceivable card criterion comprising a fixed, unique, machine-read first card identification number, the first card identification number being stored in the memory portion,

the at least one visually perceivable card criterion comprising a fixed, unique, second card identification number, the second card identification number differing from the first card identification number and being placed on a surface of the transaction card in two forms, one of which is human readable and one of which is machine-read but not stored in the memory portion,

the deposit terminal being configured to encode the transaction card with deposit data relating to a predetermined monetary value and to generate and store within the deposit terminal deposit transaction information relating to the transaction card and the monetary value.