System and method for transponder-enabled account transactions

• US 8,781,904 B2
• Filed: 04/03/2009
• Issued: 07/15/2014
• Est. Priority Date: 08/01/2000
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Rau, Scott W., Bertetti, Scott Philip, Beechum, Gerald A. Jr.
• Primary Examiner(s): Iwarere, Seye
• Application Number:
  US12/417,965
• Publication Number:
  US 20090192906A1
• Time in Patent Office: 1,929 Days
• Field of Search: 705/66, 705/64, 705/16, 705/17
• US Class Current: 705/16
• CPC Class Codes: G06F 21/00 Security arrangements for protecting computers, components thereof, programs or data against unauthorised activity
• CPC Class Codes: G06Q 20/04 Payment circuits
• CPC Class Codes: G06Q 20/20 Point-of-sale [POS] network systems
• CPC Class Codes: G06Q 20/202 Interconnection or interaction of plural electronic cash registers [ECR] or to host computer, e.g. network details, transfer of information from host to ECR or from ECR to ECR
• 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 20/206 comprising security or operator identification provisions, e.g. password entry
• CPC Class Codes: G06Q 20/208 Input by product or record sensing, e.g. weighing or scanner processing
• CPC Class Codes: G06Q 20/26 Debit schemes, e.g. "pay now"
• CPC Class Codes: G06Q 20/327 Short range or proximity payments by means of M-devices
• CPC Class Codes: G06Q 20/3674 involving authentication
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

A transponder-initiated transaction system is electromagnetically coupled to an account transponder device at the point of sale. The account transponder device may be embedded within a watch, key chain or other personal article for convenience or affinity. The transponder device may communicate account information to an RF-enabled point of sale device, enabling transactions to take place without resort to remote data processing facilities. In other embodiments partial or complete account information may be accessed or stored at co-located or remote sources. New account registrants may access a Web site to enter a transponder ID and activate a new account, which may be a credit account, debit account, cash account, special purpose vending account, or other types of accounts.

Claims

1. A computer implemented system for authorizing transponder-enabled transactions, comprising:

a transaction server comprising a memory that stores an account table and is communicatively linked to a point of sale device, wherein the account table comprises financial account information relating to a financial account and the point of sale device is associated with a merchant;

a transponder, that is provided to a user and is configured for inclusion in or on a wireless communications device that communicates independently of the transponder, that emits transponder identification information, linked to the financial account information, and that is capable of being received by a transponder information identification receiver that is coupled to the point of sale device, and the transponder identification information is emitted from the transponder upon presentation of the transponder with a transaction presented at the point of sale device;

wherein further the received transponder identification information is communicated to the point of sale device, and subsequently transmitted to the transaction server along with a payment amount for the transaction, the transmission occurring via the communications link, and the transaction server providing a validation for the transaction, allowing the transaction to be completed, based upon the validation;

wherein the transaction server and the account table are associated with an issuing bank and a transaction network; and

a registration server communicatively coupled with at least the account table and at least one client workstation;

wherein the registration server receives the financial account information and the transponder identification information from the client workstation, and links the financial account information and the transponder identification information in a database, and stores the linked information in the database for subsequent processing of transactions.

2. The system of claim 1, wherein the transaction server comprises;

a payment authorization unit that performs the validation of the transaction based at least in part upon the financial account information in the account table and transmits a message of non-authorization for the transaction to the point of sale device upon failure of the validation of the transaction.

3. The system of claim 2, wherein the transaction server transmits an authorization for the transaction to the point of sale device upon validation of the transaction, the validation being performed using information in the account table by the payment authorization unit.

4. The system of claim 1, further comprising the registration server being coupled to the transponder identification information receiver and updates one or more subscriber registration tables contained within the transponder identification information receiver to allow the transponder to be recognized upon receipt of the transponder identification information.

5. The system of claim 1, further comprising a merchant account to which an authorized payment is made, wherein the merchant account is associated with the merchant and the issuing bank.

6. The system of claim 1, wherein the transponder identification information is received by the transponder identification information receiver from the transponder via a wireless interface.

7. The system of claim 1, wherein the communications link comprises a plurality of communications links between the transaction server and multiple point of sale devices.

8. The system of claim 1, wherein the financial account comprises at least one of:

a credit card account, a debit card account, a cash account, a special premises account for use by employees of an entity, a special purpose vending account, and a telephone card account.

9. The system of claim 1, wherein the transaction identification information receiver transmits an acknowledgement signal over the link established to the transponder upon receiving the transponder identification information.

10. The system of claim 1, wherein the transaction server is co-located in physical proximity with the point of sale device.

11. A computer implemented system for authorizing transponder-enabled transactions, comprising:

a transaction server comprising a memory that stores an account table and is communicatively linked to a point of sale device, wherein the account table comprises financial account information relating to a financial account and the point of sale device is associated with a merchant;

a transponder, that is provided to a user and is configured for inclusion in or on a wearable personal article or the transponder is integrated with the wearable personal article and is provided to the user with the wearable personal article, that emits transponder identification information, linked to the financial account information, and that is capable of being received by a transponder information identification receiver that is coupled to the point of sale device, and the transponder identification information is emitted from the transponder upon presentation of the transponder with a transaction presented at the point of sale device;

wherein further the received transponder identification information is communicated to the point of sale device, and subsequently transmitted to the transaction server along with a payment amount for the transaction, the transmission occurring via the communications link, and the transaction server providing a validation for the transaction, allowing the transaction to be completed, based upon the validation;

wherein the transaction server and the account table are associated with an issuing bank and a transaction network; and

a registration server communicatively coupled with at least the account table and at least one client workstation;

wherein the registration server receives the financial account information and the transponder identification information from the client workstation, and links the financial account information and the transponder identification information in a database, and stores the linked information in the database for subsequent processing of transactions.

12. The system of claim 11, wherein the personal article comprises one of a key chain, watch, clothing, wireless communications devices, or key.