Method and system for conducting a transaction using a proximity device and an identifier

• US 20050127164A1
• Filed: 06/25/2004
• Published: 06/16/2005
• Est. Priority Date: 03/19/2002
• Status: Abandoned Application

• Current Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Original Assignee: Mastercard International Incorporated (MasterCard Incorporated)
• Inventors: Wankmueller, John
• Application Number:
  US10/876,872
• Publication Number:
  US 20050127164A1
• Time in Patent Office: Days
• US Class Current: 235/380
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/321 using wearable devices
• CPC Class Codes: G06Q 20/322 Aspects of commerce using mobile devices [M-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 20/40975 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 proximity device transmits a first dynamic authentication value contactlessly to a terminal. The first authentication value is included in a discretionary data field of message data arranged in an ISO Track 1 and/or ISO Track 2 format. Message data is sent from the terminal to an issuer. The issuer separately derives a second authentication value and compares it with the first authentication value. An identifier associated with the primary account number (PAN) is also used and transmitted instead of the PAN.

Claims

1. A method of conducting a transaction with a payment account having an associated account number and using a proximity device, comprising:

associating an identifier with said account number;

dynamically generating a first authentication value;

transmitting not the payment account number but the first authentication value and said identifier from the proximity device;

including the first authentication value in a discretionary data field of message data, the message being arranged in an ISO format; and

transmitting the message data including said identifier for verification.

2. The method of claim 1, further comprising:

storing said identifier in a database maintained by an issuer of said payment account;

transmitting said identifier to said issuer; and

determining at said issuer the associated account number.

3. The method of claim 1, further comprising:

storing said identifier in a database maintained at a terminal;

transmitting the first authentication value and said identifier from the proximity device to said terminal;

determining at said terminal the associated account number; and

transmitting said message data including the determined associated account number for verification.

4. The method of claim 3, wherein the message data includes a primary account field, and said determined associated account number is included in said account field.

5. The method of claim 1, wherein said identifier is further associated with an expiry date.

6. The method of claim 1, wherein said identifier is a card serial number.

7. A system for conducting a transaction with a payment account having an associated account number and using a proximity device, comprising a processing arrangement configured to perform the steps of:

associating an identifier with said account number;

dynamically generating a first authentication value;

transmitting not the payment account number but the first authentication value and said identifier from the proximity device;

including the first authentication value in a discretionary data field of message data, the message data being arranged in an ISO format; and

transmitting the message data including said identifier for verification.

8. The system of claim 7, further comprising:

storing said identifier in a database maintained by an issuer of said payment account;

transmitting said identifier to said issuer; and

determining at said issuer the associated account number.

9. The system of claim 7, further comprising:

storing said identifier in a database maintained at a terminal;

transmitting the first authentication value and said identifier from the proximity device to said terminal;

determining at said terminal the associated account number; and

transmitting said message data including the determined associated account number for verification.

10. The system of claim 9, wherein the message data includes a primary account field, and said determined associated account number is included in said account field.

11. The system of claim 7, wherein said identifier is further associated with an expiry date.

12. The system of claim 7, wherein said identifier is a card serial number.