Open system account remote validation for access

• US 8,448,852 B2
• Filed: 03/01/2007
• Issued: 05/28/2013
• Est. Priority Date: 01/30/2007
• Status: Active Grant

• Current Assignee: Visa USA, Inc. (Visa, Inc.)
• Original Assignee: Visa USA, Inc. (Visa, Inc.)
• Inventors: Dixon, Phil, Hammad, Ayman A., El-Awady, Khalid
• Primary Examiner(s): Lee, Michael G
• Assistant Examiner(s): Mikels, Matthew
• Application Number:
  US11/681,175
• Publication Number:
  US 20080179394A1
• Time in Patent Office: 2,280 Days
• Field of Search: 235/375, 235/379, 235/380
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/0855 involving a third party
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/204 comprising interface for record bearing medium or carrier for electronic funds transfer or payment credit
• CPC Class Codes: G06Q 20/32 using wireless devices
• 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 20/3821 Electronic credentials
• 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 20/4016 involving fraud or risk level assessment in transaction processing
• CPC Class Codes: G07B 15/00 Arrangements or apparatus for collecting fares, tolls or entrance fees at one or more control points handling coins or valuable papers, e.g. banknotes, G07D; apparatus for vending or hiring articles or services activated by coins, credit cards, paper currency or the like G07F7/00, G07F17/00

Abstract

At each of a plurality of point of sale terminals (POS) of a transit system, for each of a plurality of riders, each seeking access to a facility of the transit system by using a payment device issued by an issuer in a payment system, data is read from the payment device, where the data includes an identifier for an account issued by an issuer. For each such access, a communication including the identifier is addressed to a network address of a system remote from the payment processing system and each of POS terminals. A response to the communication is received including information regarding whether access is granted based upon the identifier being on a list keep by the remote system. If access is granted, the rider is permitted access to the facility and the payment device is unchanged for the fare.

Claims

1. A method comprising:

reading data at a point of service (POS) terminal in a transit system, wherein;

a payment device is brought near a reader by a rider seeking access to a facility of the transit system; and

the data;

is read from the payment device issued by an issuer in a payment processing system;

includes at least an identifier of an account associated with the issuer of the payment device; and

includes such a history of payments for access to the facility that, when a transit system journey of the rider includes multiple legs and necessitates a transfer between said legs within the transit system, said history enables a determination of a cost of a sought access to a subsequent leg of the journey based on costs of access incurred at preceding legs of the journey;

addressing a communication including the identifier of the account to a remote system from the POS terminal that is not in communication with the issuer;

receiving, in response to the communication with the remote system, information as to whether the access is valid based upon the identifier of the account; and

permitting, when the received information includes a validation of the access based upon the identifier of the account, the rider access to the facility of the transit system.

2. The method as defined in claim 1, wherein the payment device is unchanged for a fare of the access to the facility of the transit system.

3. The method as defined in claim 1, wherein the determination of a cost to a current leg of a multiple-leg journey is enabled at the moment of a transaction associated with the transfer between the legs of the journey within the transit system.

4. The method as defined in claim 3, wherein the information stored for each of the accesses comprises the date and time thereof, an identification of the POS terminal in the transit system, and at least some of the data read from a data storage region of the payment device.

5. The method as defined in claim 1, wherein the identifier of the account is stored in a format selected from the group consisting of:

either Track 1 or Track 2 data fields of the payment device in accordance with a magnetic stripe data (MSD) configuration; and

a data track that is compatible with the payment processing system that processes data in accordance with a magnetic stripe data (MSD) configuration.

6. The method as defined in claim 1, wherein the payment device is selected from the group consisting of a credit card, a debit card, a stored-value card, a pre-paid card, and combinations thereof.

7. The method as defined in claim 1, wherein the reading, the addressing, the receiving, and the permitting are all performed within a time period not exceeding one (1) second.

8. A computer readable medium comprising instructions which, when executed by a computer, performs the method of claim 1.

27. The method of claim 1, wherein the issuer is a financial institution.

29. The method of claim 1 further comprising:

performing transit validation at the POS terminal, wherein the transit validation includes one or more of examining the expiration date of a payment device; and

calculating a checksum formula to validate the identifier of the account.

30. The method of claim 29 wherein the transit validation further comprises checking the identifier of the account against a black list or white list.

9. In a transit system having a plurality of Point of Service (POS) terminals each reading data from a data storage region of a payment device brought near a reader of each said POS terminals by respective riders, each rider seeking to conduct an access transaction for access to a facility of the transit system, wherein the payment device is issued by an issuer in a payment processing system and includes data including an identifier for an account issued by the issuer, a method for each said access transaction comprising:

receiving, via a network in communication with each said POS terminal, the identifier for the account issued by the issuer and read by the POS terminal;

checking at least one list, remote from each of the POS terminal, to determine if the identifier for the account is on the at least one list;

addressing a communication for transmission over the network to the POS terminal, wherein the communication includes information as to the validation of the access transaction on the basis of the checking,

wherein the data further includes such a history of payments for access of a given rider to the facility that, when a transit system journey of the given rider contains multiple legs and necessitates a transfer between said legs within the transit system, said history enables a determination of a cost of a sought access to a subsequent leg of the journey based on costs of access incurred at preceding legs of the journey.

10. The method as defined in claim 9, wherein:

the at least one list includes a velocity list of the identifiers of those accounts having been read by one or more said POS terminals a number of times per time period exceeding a predetermined threshold; and

the method further comprises;

incrementing a counter for each said identifier of a corresponding said account read by the POS terminal corresponding to the number of times per time period applicable to the predetermined threshold; and

adding each said identifier for said account to the list when the corresponding counter exceeds the predetermined threshold.

11. The method as defined in claim 9, further comprising calculating a fare for the access transaction.

12. The method as defined in claim 11, wherein:

the information in the communication includes the calculated fare for the access transaction; and

the payment device is unchanged for the fare of the access to the facility of the transit system.

13. The method as defined in claim 9, wherein the at least one list includes the identifiers corresponding to those accounts that have been denied transactional use by the issuer.

14. The method as defined in claim 9, wherein the receiving further comprises receiving data for the access transaction.

15. The method as defined in claim 14, wherein the received data for the access transaction comprises the date and time thereof, an identification of the POS terminal in the transit system, and at least some of the data read from a data storage region of the payment device.

16. The method as defined in claim 15, wherein the data read from the data storage region of the payment device is in a format selected from the group consisting of:

either Track 1 or Track 2 data fields of the payment device in accordance with a magnetic stripe data (MSD) configuration; and

a data track that is compatible with the payment processing system that processes data in accordance with a magnetic stripe data (MSD) configuration.

17. The method as defined in claim 9, wherein the receiving, the checking, and the addressing are all performed within a time period not exceeding one (1) second.

18. A computer readable medium comprising instructions which, when executed by a computer, performs the method of claim 9.

28. The method of claim 9, wherein the issuer is a financial institution.

19. A method comprising:

receiving a plurality of requests for validation from a plurality of Point of Service (POS) terminals for a transit system, wherein each of the requests is for an access transaction for access to a facility of the transit system using an identifier for an account stored in a payment device issued by an issuer in a payment processing system; and

addressing communications to respective one of the POS terminals, wherein each of the communications is in response to a corresponding one of the requests and includes;

a validation status of the account for the access transaction as determined by the presence of the identifier for the account on a list maintained remote from any of issuer and remote from any of the POS terminals; and

when a transit-system journey of the rider contains multiple legs and necessitates a transfer between said legs within the transit system, a determination of a cost of a sought access to a subsequent leg of the journey based on costs of access incurred at preceding legs of the journey, the determination being enabled by such data stored on the contact-based payment device that includes a history of payments for access to the facility at the preceding legs of the journey.

20. The method as defined in claim 19, wherein the requests can be received, and the addressed communications can be sent, via a network in communication with each of the POS terminals.

21. The method as defined in claim 19, further comprising:

receiving from one said issuer a transactional use indication corresponding to one said account; and

maintaining the list of said identifiers for the one said account according to the received transactional use indication.

22. The method as defined in claim 19, further comprising, for at least some of the received requests, calculating a fare for the access transaction, wherein none of the payment devices are changed for a fare corresponding to an access to the facility of the transit system.

23. The method as defined in claim 22, further comprising forming one of more communications each addressed to a member of the payment processing system for the collection by the transit system of one or more of the calculated fares and the identifiers of the accounts corresponding thereto.

24. The method as defined in claim 19, wherein:

the list further comprises a velocity list of the identifiers of those accounts having been read by one or more said POS terminals a number of times per time period exceeding a predetermined threshold; and

the method further comprises;

incrementing a counter for each said identifier of each said account that was read by the POS terminal corresponding to the number of times per time period applicable to the predetermined threshold; and

adding each said identifier for said account to the list when the corresponding said counter exceeds the predetermined threshold.

25. The method as defined in claim 19, wherein the receiving of each of the requests and the addressing of the corresponding one of the communications to the POS terminal are performed within a time period not exceeding one (1) second.

26. A computer readable medium comprising instructions which, when executed by a computer, performs the method of claim 19.