Converting account data associated with a radio frequency device

• US 7,639,116 B2
• Filed: 06/24/2004
• Issued: 12/29/2009
• Est. Priority Date: 07/10/2001
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: Xatra Fund MX LLC (Intellectual Ventures LLC)
• Inventors: Saunders, Peter D
• Primary Examiner(s): Holloway, III, Edwin C
• Application Number:
  US10/876,822
• Publication Number:
  US 20050038736A1
• Time in Patent Office: 2,014 Days
• Field of Search: 340/5.61, 340/5.4, 340/10.1, 340/572.1, 705/39, 235/380
• US Class Current: 340/5.61
• CPC Class Codes: G06Q 20/00 Payment architectures, schemes or protocols apparatus for performing or posting payment transactions G07F7/08, G07F19/00; electronic cash registers G07G1/12
• CPC Class Codes: G06Q 20/027 involving a payment switch or gateway
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/08 Payment architectures
• CPC Class Codes: G06Q 20/085 involving remote charge determination or related payment systems
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/14 specially adapted for billing systems
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/367 involving electronic purses or money safes
• 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: G07C 9/29 the pass containing active electronic elements, e.g. smartcards

Abstract

A transponder-reader transaction completion system includes a Radio Frequency (RF) operable reader for interrogating a RF operable transaction device via RF communication, wherein the transaction device is operable to provide an account number in ISO/IEC 7816 magnetic stripe Track1/Track 2 format to the RF reader via RF communication. The RF reader is additionally operable to provide an account number in ISO/IEC 7816 magnetic stripe Track1/Track 2 format to a merchant system for use in transaction completion.

Claims

1. A method comprising:

receiving, at a Radio Frequency (RF) reader, a reader authentication signal and an encrypted transponder device authentication signal from an RF transponder device, wherein the RF reader communicates with a Point of Sale (POS) device that, in a first state, utilizes a first account format for processing a first type of transaction request under a business as usual standard, and wherein the POS device, in a second state, utilizes a third party server for processing a second type of transaction request in a second account format;

encrypting the reader authentication signal with a reader encryption key to facilitate authentication of the RF reader;

decrypting the encrypted transponder device authentication signal with a transponder device encryption key, wherein the transponder device encryption key corresponds to a transponder device identification code received from the RF transponder device, and wherein the decrypting the encrypted transponder device authentication signal facilitates authentication of the RF transponder device;

receiving, at the RF reader, encrypted account data from the RF transponder device in response to the authentication of the RF reader and the authentication of the RF transponder device, wherein the encrypted account data is stored on the RF transponder device in accordance with the second account format;

decrypting the encrypted account data with a transponder device account data key to create decrypted account data in the second account format;

converting at least a portion of the decrypted account data in the second account format into a POS account code in the first account format; and

forwarding the POS account code in the first account format to the POS device in the first state for processing under the business as usual standard without using the third party server.

2. The method of claim 1, wherein the reader encryption key, the transponder device encryption key, and the transponder device account data key are stored in a reader database.

3. The method of claim 1, wherein the reader encryption key and the transponder device encryption key are stored in a first reader database, and wherein the transponder device account data key is stored in a second reader database.

4. The method of claim 1, further comprising authorizing a transaction request from the RF transponder device in accordance with a risk criteria provided by an issuer.

5. The method of claim 4, wherein the risk criteria comprises at least one of transaction account limits for a time period, RF transponder device usage history, fund limits, reserve limits, refunding rules, reloading rules, or user defined limits.

6. The method of claim 1, further comprising receiving satisfaction of a transaction request associated with the RF transponder device, wherein the satisfaction of the transaction request is received in response to a funding protocol which satisfies the transaction request from a first funding source and a second funding source.

7. The method of claim 1 , wherein the first type of transaction request is a contact-based transaction request from a magnetic stripe card, and wherein the second type of transaction request is an RF transaction request from an RF device.

8. The method of claim 1, wherein the second account format is different than Track1/Track 2 format, and wherein the first account format is Track1/Track 2 format.

9. The method of claim 1, wherein the encrypted account data is not readable by the POS device.

10. The method of claim 9, wherein the RF reader communicates with a second POS device that utilizes a third account format for processing a third type of transaction request.

11. A method comprising:

receiving, at a Radio Frequency (RF) transponder device, a transponder device authentication signal and an encrypted reader authentication signal from an RF reader, which communicates with a Point of Sale (POS) device that, in a first state, utilizes a first account format for processing a first type of transaction request under a business as usual standard, and wherein the POS device, in a second state, utilizes a third party server for processing a second type of transaction request in a second account format;

encrypting the transponder device authentication signal with a transponder device encryption key to facilitate authentication of the RF transponder device;

decrypting the encrypted reader authentication signal with a reader encryption key, wherein the reader encryption key corresponds to a reader identification code received from the RF reader, and wherein the decrypting the encrypted reader authentication signal facilitates authentication of the RF reader;

retrieving encrypted account data in response to the authentication of the RF transponder device and the authentication of the RF reader, wherein the encrypted account data is stored on the RF transponder device in accordance with the second account format; and

transmitting the encrypted account data to the RF reader in response to the authentication of the RF transponder device and the authentication of the RF reader, wherein the RF reader decrypts the encrypted account data with a transponder device account data key to create decrypted account data in the second account format, wherein the RF reader converts at least a portion of the decrypted account data into a POS account code in the first account format, and wherein the RF reader forwards the POS account code in the first account format to the POS device in the first state for processing under the business as usual standard without using the third party server.

12. The method of claim 11, wherein the reader encryption key, the transponder device encryption key, and the encrypted account data are stored in a transponder device database.

13. The method of claim 11, wherein the reader encryption key and the transponder device encryption key are stored in a first transponder device database, and wherein the encrypted account data is stored in a second transponder device database.

14. The method of claim 13, further comprising receiving, from an issuer, the encrypted account data in the second transponder device database.

15. The method of claim 11, further comprising reloading a preload value data file in accordance with a reload protocol, wherein the RF transponder device is a preloaded RF transponder device.

16. A Radio Frequency (RF) reader comprising:

a communications device configured to receive a reader authentication signal and an encrypted transponder device authentication signal from a Radio Frequency (RF) transponder device, wherein the RF reader is configured to communicate with a Point of Sale (POS) device which, in a first state, is configured to utilize a first account format for processing a first type of transaction request under a business as usual standard, and wherein the POS device, in a second state, is configured to utilize a third party server for processing a second type of transaction request in a second account format;

an authentication circuit configured to encrypt the reader authentication signal with a reader encryption key to facilitate authentication of the RF reader;

a protocol/sequence controller configured to instruct the authentication circuit to decrypt the encrypted device authentication signal with a transponder device encryption key, wherein the transponder device encryption key corresponds to a transponder device identification code received from the RF transponder device, wherein decrypting the encrypted transponder device authentication signal is configured to facilitate authentication of the RF transponder device, and wherein the communications device is further configured to receive encrypted account data from the RF transponder device in response to the authentication of the RF reader and the authentication of the RF transponder device;

a reader database configured to store a transponder device account data key; and

a decryption component configured to retrieve the transponder device account data key from the reader database and decrypt the encrypted account data with the transponder device account data key to create decrypted account data in the second account format, wherein the decryption component is further configured to convert at least a portion of the decrypted account data in the second account format into a POS account code in the first account format;

wherein the RF reader is configured to forward the POS account code in the first account format to the POS device in the first state for processing under the business as usual standard without using the third party server.

17. The RF reader of claim 16, further configured to communicate with a second POS device, wherein the decryption component is further configured to convert at least a portion of the decrypted account data into a second POS account code in a third account format readable by the second POS device.

18. The RF reader of claim 17, wherein the POS account code is not readable by the second POS.

19. The RF reader of claim 18, wherein the decrypted account data in the second format is not readable by the POS device in the first state, and wherein the POS account code is not readable by the POS device in the second state.

25. The RF reader of claim 16, wherein the POS device in the first state is configured to transmit data from a magnetic stripe, contact-based transaction device via a network under the business as usual standard, and wherein the decrypted account data in the second format is not in a magnetic stripe format.

20. A Radio Frequency (RF) transponder device comprising:

a communications device configured to receive a transponder device authentication signal and an encrypted reader authentication signal from an RF reader, wherein the RF reader is configured to communicate with a Point of Sale (POS) device which, in a first state, is configured to utilize a first account format for processing a first type of transaction request under a business as usual standard, and wherein the POS device, in a second state, is configured to utilize a third party server for processing a second type of transaction request in a second account format;

an authentication circuit configured to encrypt the transponder device authentication signal with a transponder device encryption key to facilitate authentication of the RF transponder device;

a protocol sequence controller configured to instruct the authentication circuit to decrypt the encrypted reader authentication signal with a reader encryption key, wherein the reader encryption key corresponds to a reader identification code received from the RF reader, and wherein the decrypting the encrypted reader authentication signal is configured to facilitate authentication of the RF reader; and

a transponder device database configured to store encrypted account data, wherein the protocol sequence controller is further configured to retrieve the encrypted account data from the transponder device database in response to the authentication of the RF transponder device and the authentication of the RF reader;

wherein the communications device is further configured to transmit the encrypted account data to the RF reader in response to the authentication of the RF transponder device and the authentication of the RF reader, wherein the encrypted account data is configured to be stored in the RF transponder device in accordance with the second account format; and

wherein the RF reader is configured to decrypt the encrypted account data with a transponder device account data key to create decrypted account data in the second account format, wherein the RF reader is further configured to convert at least a portion of the decrypted account data into a POS account code in the first format, and wherein the RF reader is configured to forward the POS account code in the first format to the POS device in the first state for processing under the business as usual standard without using the third party server.

21. The RF transponder device of claim 20, further comprising a switch configured to enable access to the encrypted account data in response to the switch being toggled to a first position, wherein the encrypted account data is associated with a first account.

22. The RF transponder device of claim 21, wherein the switch is further configured to enable access to second encrypted account data associated with a second account distinct from the first account in response to the switch being toggled to a second position.

23. The RF transponder device of claim 20, further comprising a switch configured to facilitate transmission of a reader authentication signal to the RF reader in response to the switch being toggled to a position configured to allow mutual authentication of the RF reader and the RF transponder device.

24. The RF transponder device of claim 20, wherein the POS account code in the first format comprises a transaction card number.