Apparatus and method for processing coded information stored on an integrated circuit card

• US 6,419,161 B1
• Filed: 08/02/2001
• Issued: 07/16/2002
• Est. Priority Date: 01/22/1996
• Status: Expired due to Fees

• Current Assignee: Welcome Real-Time
• Original Assignee: Welcome Real-Time
• Inventors: Haddad, Aneace, Chevalier, Bernard
• Primary Examiner(s): Frech, Karl D.
• Assistant Examiner(s): Lee, Seung H.
• Application Number:
  US09/920,401
• Time in Patent Office: 348 Days
• Field of Search: 235/492, 235/381, 235/380, 705/14
• US Class Current: 235/492
• CPC Class Codes: G06Q 20/3437 the counter having non-monetary units, e.g. trips
• CPC Class Codes: G06Q 20/387 Payment using discounts or coupons relating to marketing G06Q30/02
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 30/0226 Incentive systems for frequent usage, e.g. frequent flyer miles programs or point systems
• CPC Class Codes: G07F 7/02 by keys or other credit registering devices
• CPC Class Codes: G07G 1/0036 Checkout procedures

Abstract

The present invention relates to a method and a device for processing coded information stored on an integrated circuit card. A system includes a card reader adapted to receive the integrated circuit card and to read and write data values from an encrypted memory structure of the integrated circuit card. A processor electrically coupled to the card reader includes instructions for executing an algorithm that, in response to insertion of the integrated circuit card into the card reader, extracts information from one or more files stored in the encrypted memory, updates the files based on a current date and information extracted from the files. A display terminal electrically coupled to the processor displays information resulting from the execution of the algorithm. Thus, with the invention, it is possible to alter an operation on the basis of previous operations performed using the integrated circuit card. A method according to the invention includes steps of inserting the integrated circuit card into one of a plurality of card readers and processing the coded information stored thereon in accordance with the algorithm, which can be different for different card readers.

Claims

1. A system for dynamically storing and retrieving information in a storage medium, comprising in combination:

an integrated circuit card having an encrypted memory structure partitioned into a first file containing information identifying the integrated circuit card, a second file containing a plurality of data records each comprising information pertaining to prior uses of the integrated circuit card, and a third file comprising an accumulation value that is incremented in accordance with a plurality of different algorithms;

a card reader adapted to receive the integrated circuit card and to read and write data values to and from the encrypted memory structure of the integrated circuit card;

a processor electrically coupled to the card reader and including processor instructions for executing an algorithm that, in response to insertion of the integrated circuit card into the card reader, extracts information from one of the data records in the second file, writes to the one data record in the second file based on a current date and the information extracted from the one data record in the second file, and increments the accumulation value in the third file based on the information extracted from the one data record in the second file; and

a display terminal, electrically coupled to the processor, that displays information resulting from the execution of the algorithm executed in the processor.

2. The system of claim 1, wherein the encrypted memory structure of the integrated circuit card is encrypted using a first encryption key that encrypts the contents of the first file, a second encryption key that encrypts the contents of the second file, and a third encryption key that encrypts the contents of the third file.

3. A method of conducting a transaction with a cardholder using an integrated circuit card that includes a first memory area that identifies the card, a second memory area capable of storing a plurality of records each containing data relating to the cardholder'"'"'s purchasing behavior at a specific one of a plurality of different merchants, wherein each merchant operates an independent promotional program in conjunction with the integrated circuit card, and a third memory area separate from the second memory area and comprising an accumulation value that can be incremented by one or more of the plurality of different merchants, the method comprising the steps of:

(1) inserting the integrated circuit card into a card reader located at one of the plurality of different merchants;

(2) reading information from the first memory area and the second memory area and receiving a transaction amount corresponding to the transaction;

(3) applying a merchant-specific algorithm that pertains to the promotional program for the one merchant with whom the transaction is being conducted, wherein the merchant-specific algorithm writes to one of the records in the second memory area and generates an electronic benefit value that is dependent on the date of the transaction and on the cardholder'"'"'s prior purchasing behavior at that merchant, wherein the merchant-specific algorithm is independent from algorithms operated by others of the plurality of different merchants; and

(4) providing a merchant-specific benefit to the cardholder on the basis of the electronic benefit value.

4. The method of claim 3, wherein step (3) comprises the step of generating an electronic benefit value that is dependent upon a number of transactions performed by the cardholder at the one merchant within a predetermined time period.

5. The method of claim 3, wherein step (3) comprises the step of generating a first electronic benefit value if the transaction represents a first visit by the cardholder to the one merchant during a predetermined time period, and generating a second electronic benefit value different from the first electronic benefit value if the transaction represents a later visit by the cardholder to the one merchant during the predetermined time period, wherein the number of visits during the predetermined time period is stored in the second memory area.

6. The method of claim 3, wherein step (3) comprises the step of generating an electronic benefit value that is dependent on a total amount of cumulative spending at the one merchant during a predetermined time period.

7. The method of claim 3, wherein step (3) comprises the step of generating an electronic benefit value that is dependent upon whether the cardholder has previously visited the one merchant, such that cardholders that previously visited the one merchant receive a different electronic benefit value than cardholders that have not previously visited the merchant.

8. The method of claim 3, wherein step (3) comprises the step of generating an electronic benefit value that represents a percentage of the transaction amount.

9. The method of claim 3, wherein step (4) comprises the step of printing a coupon that shows a previous benefit balance, the electronic benefit value generated in step (3), and a new benefit balance representing the previous benefit balance plus the electronic benefit value generated in step (3).

10. The method of claim 3, wherein step (3) comprises the step of generating an electronic benefit value that is dependent on whether the first memory area contains information identifying a card that has been selected to receive a benefit.

11. The method of claim 3, wherein the electronic benefit value is calculated without reference to an external database of cardholder information.

12. The method of claim 3, wherein step (3) comprises the step of updating a total number of merchants recorded on the integrated circuit card.

13. The method of claim 3, wherein step (3) comprises the step of incrementing the accumulation value in the third memory area.

14. Apparatus for conducting a transaction with a cardholder, comprising:

a card reader capable of reading from and writing to an integrated circuit card having a first memory area that identifies the card, a second memory area capable of storing a plurality of records each containing data relating to the cardholder'"'"'s purchasing behavior at a specific one of a plurality of different merchants each of which operates an independent promotional program in conjunction with the integrated circuit card, and a third memory area separate from the second memory area and comprising an accumulation value that can be incremented by one or more of the plurality of different merchants; and

a processor coupled to the card reader and programmed to, in response to the card reader reading information from the second memory area of the integrated circuit card, apply a merchant-specific algorithm that pertains to the promotional program for the one merchant with whom the transaction is being conducted, wherein the merchant-specific algorithm writes to one of the records in the second memory area corresponding to the one merchant and generates an electronic benefit value that is dependent on the date of the transaction and on the cardholder'"'"'s prior purchasing behavior at that one merchant and provides a merchant-specific benefit to the cardholder on the basis of the electronic benefit value.

15. The apparatus of claim 14, wherein the processor is programmed to generate an electronic benefit value that is dependent upon a number of transactions performed by the cardholder at the one merchant within a predetermined time period.

16. The apparatus of claim 14, wherein the processor is programmed to generate a first electronic benefit value if the transaction represents a first visit by the cardholder to the one merchant during a predetermined time period, and generating a second electronic benefit value different from the first electronic benefit value if the transaction represents a later visit by the cardholder to the one merchant during the predetermined time period, wherein the number of visits during the predetermined time period is stored in the second memory area.

17. The apparatus of claim 14, wherein the processor is programmed to generate an electronic benefit value that is dependent on a total amount of cumulative spending at the one merchant during a predetermined time period.

18. The apparatus of claim 14, wherein the processor is programmed to generate an electronic benefit value that is dependent upon whether the cardholder has previously visited the one merchant, such that cardholders that previously visited the one merchant receive a different electronic benefit value than cardholders that have not previously visited the merchant.

19. The apparatus of claim 14, wherein the processor is programmed to generate an electronic benefit value that is dependent on whether the first memory area contains information identifying a card that has been selected to receive a benefit.

20. The apparatus of claim 14, wherein the processor is programmed to generate an electronic value without reference to an external database of cardholder information.

21. The apparatus of claim 14, wherein the processor is programmed to update a total number of merchants recorded on the integrated circuit card.

22. The apparatus of claim 14, wherein the processor is programmed to increment the accumulation value in the third memory area.

23. A method of processing coded information during a purchase or payment operation by a customer, holder of a card with a chip, at a merchant, in which the contents of the memory of the chip card are read and an entitlement is or is not granted to the customer on the basis of the information arising from the contents of said memory,

characterized in that, with the memory of the chip card including a first identification file, termed the Member file, identifying the chip card or the card-holding customer, a second accounting file, termed the Points file, and a third file, termed the Behavior file, that is able to store data relating to the behavior of the card holder towards each of a plurality of merchants including a code for each of those merchants,

a specified algorithmic processing is performed dependent, on the one hand, on the date of the operation and, on the other hand, the presence of a code for the merchant at which the purchase or payment operation is being conducted in the Behavior file,

the algorithmic processing including a step of calculating the increment of the Points file by a predetermined number of points on the basis of the occurrence and/or nature of the first visit by the card holder within a time period of specified duration, and a step of determining if there is an entitlement to be granted by comparing the calculated increment number of points to a specified value to determine if the entitlement will be granted;

then new information, if any, is written to the Behavior file;

data, if any, is written to the Points file;

and said entitlement is or is not granted on the basis of the result of said algorithmic processing.

24. A method of processing coded information during a purchase or payment operation by a customer, holder of a card with a chip, at a merchant, in which the contents of the memory of the chip card are read and an entitlement is or is not granted to the customer on the basis of the information arising from the contents of said memory,

characterized in that, with the memory of the chip card including a first identification file, termed the Member file, identifying the chip card or the card-holding customer, a second accounting file, termed the Points file, and a third file, termed the Behavior file, that is able to store data relating to the behavior of the card holder towards each of a plurality of merchants including a code for each of those merchants,

a specified algorithmic processing is performed dependent, on the one hand, on the date of the operation and, on the other hand, the presence of a code for the merchant at which the purchase or payment operation is being conducted in the Behavior file,

the algorithmic processing including a step of calculating the increment of the Points file by a predetermined number of points on the basis of the occurrence and/or nature of the first visit by the card holder within a time period of specified duration, and a step of determining if there is an entitlement to be granted on that basis;

then new information, if any, is written to the Behavior file,

data, if any, is written to the Points file,

and said entitlement is or is not granted on the basis of the result of said algorithmic processing.

25. A method of processing coded information during a purchase or payment operation by a customer, holder of a card with a chip, at a merchant, in which the contents of the memory of the chip card are read and an entitlement is or is not granted to the customer on the basis of the information arising from the contents of said memory,

characterized in that, with the memory of the chip card including a first identification file, termed the Member file, identifying the chip card or the card-holding customer, a second accounting file, termed the Points file, and a third file, termed the Behavior file, that is able to store data relating to the behavior of the card holder towards each of a plurality of merchants including a code for each of those merchants,

a specified algorithmic processing is performed dependent, on the one hand, on the date of the operation and, on the other hand, the absence of a code for the merchant at which the purchase or payment operation is being conducted in the Behavior file,

the algorithmic processing including a step of calculating the increment of the Points file by a predetermined number of points on the basis of the occurrence and/or nature of the first visit by the card holder within a time period of specified duration, and a step of determining if there is an entitlement to be granted by comparing the calculated increment number of points to a specified value to determine if the entitlement will be granted;

then, the merchant code, if absent, is written to the Behavior file,

data, if any, is written to the Points file,

and said entitlement is or is not granted on the basis of the result of said algorithmic processing.

26. A method of processing coded information during a purchase or payment operation by a customer, holder of a card with a chip, at a merchant, in which the contents of the memory of the chip card are read and an entitlement is or is not granted to the customer on the basis of the information arising from the contents of said memory,

characterized in that, with the memory of the chip card including a first identification file, termed the Member file, identifying the chip card or the card-holding customer, a second accounting file, termed the Points file, and a third file, termed the Behavior file, that is able to store data relating to the behavior of the card holder towards each of a plurality of merchants including a code for each of those merchants,

a specified algorithmic processing is performed dependent, on the one hand, on the date of the operation and, on the other hand, the absence of a code for the merchant at which the purchase or payment operation is being conducted in the Behavior file,

the algorithmic processing including a step of calculating the increment of the Points file by a predetermined number of points on the basis of the occurrence and/or nature of the first visit by the card holder within a time period of specified duration, and a step of determining if there is an entitlement to be granted on that basis;

then, the merchant code, if absent, is written to the Behavior file,

data, if any, is written to the Points file,

and said entitlement is or is not granted on the basis of the result of said algorithmic processing.