Abstract:
A portable credit card reader. A portable terminal reads a credit card, and accepts a keyed-in monetary amount. The terminal communicates with a credit card verification service, which accepts or rejects the monetary amount. The communication is done in a wireless manner. The terminal is self-teaching, allowing persons unfamiliar with its operation to successfully execute a credit card transaction without previous training.

Description:
The invention concerns a portable, wireless, device which (1) reads an identification number from a credit card, (2) connects with a verification service, (3) inquires whether a given monetary amount can be added to the credit card account, and (4) requests the amount be added to the account. 
   BACKGROUND OF THE INVENTION 
   Restaurant patrons frequently use credit cards to pay for meals and, in doing so, commonly experience the following sequence of events. 
   First, a waiter delivers a bill to the patron. Next, the patron hands a credit card to the waiter. Then, the waiter disappears with both bill and credit card, makes a telephone call to verify whether the credit card account will accommodate addition of the restaurant bill, and, if so, returns with a receipt for the patron to sign. If not, the waiter returns instead with solemn news, and request an alternate means of payment. 
   Several disadvantages exist with this type of transaction. One stems from the patron&#39;s relinquishment of possession of the credit card, which can cause a slight amount of anxiety in some patrons. This anxiety can be heightened if the waiter forgets to return it. 
   A second disadvantage is the delay involved: the waiter, in collecting the bill, makes five trips:
         one trip to deliver the bill;   a second trip to obtain the credit card from the patron;   a third trip to make the telephone call;   a fourth trip to return the credit card to the patron, with a receipt for signing; and   a fifth trip to file the receipt.
 
As a rough estimate, these trips probably represent ⅕ to ½ the total number of trips made by the waiter to the patron&#39;s table. If these trips can be reduced in number, the waiters can perhaps devote the time recovered to better service.
       

   A third disadvantage is the requirement of informing a patron that a credit card charge has been declined, which serves to embarrass the patron. 
   Patents exist on communication devices which allow a waiter to perform a credit card transaction at the patron&#39;s table. However, many of these devices are complicated to learn to use. One of the reasons for this difficulty is that a large number of features are packed into the device, requiring a large amount of time to master them all. They also require expensive equipment. 
   OBJECTS OF THE INVENTION 
   An object of the invention is to provide an improved credit card verification terminal. 
   A further object of the invention is to provide a credit card verification terminal which implements a minimal set of features, and is easy to learn to use, to the point of being self-explanatory. 
   SUMMARY OF THE INVENTION 
   In one form of the invention, a portable terminal issues prompts to a user, requesting (1) presentation of a credit card, and (2) entry of a monetary amount. When the customer complies with the prompts, the terminal transmits both (1) data obtained from the card and (2) the monetary amount, in a wireless manner, to a remote agency, which accepts or rejects the monetary amount as a charge against the credit card account. 

   
     BRIEF DESCRIPTION OF THE DRAWINGS 
       FIG. 1  illustrates one form of the invention. 
       FIG. 2  illustrates a sequence of screens generated by the invention. 
       FIG. 3  illustrates another form of the invention. 
       FIG. 4  illustrates another form of the invention. 
       FIG. 4A  is a flow chart illustrating logic executed by one form of the invention. 
       FIG. 5  illustrates a directional antenna  100  contained within a building  102 . 
       FIG. 6  illustrates a base station  21  to which a portable terminal  40  docks, and a proximity detector  106  which detects docking. 
       FIG. 7  illustrates a radio-frequency transmitter  107  which transmits a code to a receiver  107 A. 
       FIGS. 8 and 9  illustrate logic executed by another form of the invention. 
       FIG. 10  illustrates directional, and non-directional, antennas. 
   

   DETAILED DESCRIPTION OF THE INVENTION 
     FIG. 1  is a schematic illustration of one form of the invention, showing an implementation which embodies individual, separate components, for ease of explanation. A more compact, modular, implementation is illustrated in  FIG. 3 . 
   In  FIG. 1 , a portable computer  3  is connected to a magnetic card reader  6 , a printer  9 , and an acoustic coupler  12 . The acoustic coupler  12  functions as a modem, converting binary signals carried on line  15  into acoustic pulses for transmission by a telephone channel. A cordless telephone  18  receives the information represented by the acoustic pulses, and transmits the information to a base unit  21 , which is connected to a telephone channel, as indicated. 
   The computer  3  is programmed so that, when idle, it continually displays a message on its display  24  which says “SWIPE CARD THROUGH CARD READER,” or equivalent, as indicated by screen  27  in  FIG. 2 . Alternately, a printed sign  25  in  FIG. 3  can be affixed to the case of the computer, bearing the same message. 
   When a user responds to the message, and swipes credit card  30  in  FIG. 1  through the reader  6 , the reader  6  reads information carried on magnetic stripe  33  of the card  30 , which includes an account number, and a code indicating the type of credit card. (“Type of card” refers to the bank clearing system which handles the card&#39;s account. Trade names for such systems include “Master Card,” “Visa,” and so on.) 
   The display  24  in  FIG. 1  may alternate the screen  27  in  FIG. 2  with screen  28 , which prompts the user to manually enter the credit card number by way of keyboard  29  in  FIG. 1 . Manual entry is desired when malfunctions occur in the card reader  6  or credit card  30  itself. One example of a malfunction is a defective magnetic stripe  33  on the credit card  30 . 
   When the credit card number is obtained, the reader  6  produces a signal informing the computer  3  of this fact, as known in the art. Based on the type of card, the computer  3  retrieves, from its memory, not shown, the telephone number of (a) an appropriate credit verification service, or (b) the issuer of the credit card. The computer  3  dials this telephone number, and establishes a data connection with the service. 
   The computer  3  then displays the message indicated on screen  36  in  FIG. 2 , prompting the user to enter the monetary amount of the transaction, which is to be billed to the account represented by credit card  30 . This amount can be echoed on display  24 , and the user prompted to verify its accuracy, or re-enter the number if incorrect, as indicated by blocks  41  and  42   FIG. 2 . 
   The computer  3  transmits this amount to the service, while displaying the message indicated in screen  39  in  FIG. 2 , which indicates that the transaction is presently in-process. If the service accepts the amount, the computer  3  displays screen  42 . If the service rejects the amount, the computer  3  prints screen  45 , prompting the user to try another credit card. 
   The computer  3  then displays screen  48  in  FIG. 2 , which prompts the user to request a paper receipt, which is printed by printer  9  in  FIG. 1 . The customer may be requested to sign this receipt, as evidence of the transaction. 
     FIG. 3  illustrates a more compact version of the invention, wherein all the components of  FIG. 1  are contained within a single housing, which is approximately the size of an average human hand, or double that size. Terminal  40  contains a keypad  43 , which contains only the 12 keys of a standard touch-tone telephone (that is, keys labeled “1” through “0,” “#” and “*”). Alternately, the keypad  43  is identical to the keypad used on a standard Automated Teller Machine (ATM). In either case, the keypad  43  contains a restricted character set, and does not contain a full alphanumeric character set, such as is found in a QWERTY keyboard. The keypad  43  is a numeric keypad, as opposed to an alphanumeric keyboard. Preferably, the keypad contains between about 10 and 15 keys. 
   The terminal  40  also contains a card reader  46 , known in the art, through which a credit card  49  can be swiped, and which reads a code contained on a magnetic stripe  52  carried by the credit card  49 . 
   The terminal  40  contains a printer, indicated by phantom block  55 , which produced a receipt  58 . The terminal  40  also contains a display  61 , such as a liquid crystal display. In addition, the terminal  40  carries an antenna  65 , which can take the form of an aluminum strip fastened to the terminal&#39;s housing. Connected to the antenna, by line  68 , is a wireless modem  71 . The antenna  65  allows the terminal  40  to communicate with a base station  21 , shown in  FIG. 1 . 
   The terminal  40  performs seven major functions:
         1. It reads a credit card, using a card reader.   2. By wireless means, it establishes a data connection with a verification service.   3. It accepts a key-punched monetary amount from an operator.   4. It relays the monetary amount to the verification service, which processes the amount appropriately.   5. It receives an acceptance or rejection from the verification service.   6. It informs the operator of the result.   7. It prints a receipt for a customer to sign.
 
 FIG. 4A  illustrates these steps in flow-chart format.
       

   The massive computing capability of the computer  3  in  FIG. 1  can be incorporated into terminal  40  in  FIG. 3 , by means of a single-board computer. Miniature single-board computers, based on an architecture designed around the 8XX86 microprocessor produced by INTEL Corporation, Santa Clara, Calif., are available from Octagon Systems, 6510 West 91st Avenue, Westminster, Colo. Using such an off-the-shelf computer will eliminate the cost of developing logic to perform the functions identified above. Further, these single-board computers are themselves quite inexpensive, because they have become a mass-produced commodity item. 
   However, the single-board computer possesses vastly greater computing power than required by the invention. It is expected that a manufacturer of the invention will eventually wish to replace the single-board computer with dedicated logic. In sufficient quantities, such dedicated logic will perhaps be less expensive than even the mass-produced single-board computer. It is to be recognized that the invention is not limited to a particular implementation of the logic which executes the functions described above, partly because numerous different implementations are possible. 
   ADDITIONAL CONSIDERATIONS 
   1. It was stated above that the terminal  40  of  FIG. 3  dials the telephone number of a verification service. In one embodiment, the verification service is reached by dialing into an Automated Teller Machine (ATM) network, such as that operating under the trade name CIRRUS, NOVUS, PLUS, and so on. 
   One characteristic of the ATM network is that it can be reached only through dedicated telephone channels. That is, even though the terminal  40  dials a standard telephone number, that number is only accessible by a given terminal  40 , and no other terminals or parties. Restated, a dedicated telephone channel can be viewed as connecting two telephones, A and B. Telephone A can call telephone B, and, conversely, telephone B can call telephone A. However, no other telephones, other than B, can call A, and no telephones, other than A, can call telephone B. 
   Of course, other types of dedicated lines are available, such as where three telephones can call each other, but cannot receive calls from others. A major feature of dedicated telephone lines is that they do not accept incoming calls from telephones other than those to which the lines are dedicated. The dedicated lines prevent hackers from gaining access to the ATM network. 
   2. It is not necessary that the dedicated lines connect to an ATM network, but can connect directly to the verification service. However, it is perhaps more convenient to call the ATM network, because the ATM can act as a clearing house for multiple credit cards. That is, a single telephone number (that of the ATM network) is used for all credit cards. The terminal  40  need only store a single telephone number. 
   3. One embodiment of the invention is shown in  FIG. 4 , and would be expected to be used in a restaurant or club. Multiple terminals  40  are shown, and each utilizes a wireless modem  71 . Each wireless modem  71  communicates with a respective base station  21 . Each base station  21  connects to a dedicated telephone line  72 . That is, the restaurant or club is supplied by multiple dedicated telephone lines. 
   With this arrangement, multiple terminals  40  can be used simultaneously, so that restaurant patrons need not queue up to wait for a free terminal  40 . 
   4. A high degree of security is obtained by the use of dedicated telephone lines. Additional security can be obtained by measures such as the following:
         (A) A highly directional antenna  100  in  FIG. 5  can be used for each base station, thereby limiting reception to signals transmitted by terminals  40  located within the antenna&#39;s lobe  103 . Reception from terminals outside the lobe  103  is not likely. Directional antennas are known in the art.   (B) Each base station  21  can act as a docking station for its terminal  40 , as shown in  FIG. 6 . When the terminal is docked, and inactive, a proximity detector  106  detects the presence of the terminal  40 , and prevents the base station from receiving any signals whatsoever. Thus, for a hacker to contact a base station  21 , the terminal  40  must be removed from the proximity sensor  106 .   (C) When a terminal  40  in  FIG. 7  is removed from a base station  21 , the terminal detects the removal and broadcasts a coded signal by a transmitter  107 , which is separate and independent from the wireless modem (not shown in  FIG. 7 ). The coded signal is analogous to the signal broadcast by a common remote garage door opener.
           The base station  21  only accepts signals from a wireless modem  71  when the coded signal is being received. If the coded signal contains, for example, 20 bits, then 2 20  possible combinations exist, which represent a significant obstacle for a hacker to overcome. Further, the coded signal can be changed periodically.   
           (D) Repeating part of points (B) and (C), a base station  21  only accepts signals from a terminal  40  when two conditions occur together:
           (i) the proximity sensor  106  indicates that the terminal  40  is not docked, and   (ii) the coded signal assigned to the base station is being received.   
               

   5. The invention can be used without instruction from a teacher. That is, any person who can read, and has the physical ability to operate the keypad  43  in  FIG. 3 , and to swipe the card  49  through the card reader  46 , can operate the invention, without resort to a teacher or a reference manual. 
   One reason is that only four actions are required of the person:
         (i) reading the display  27  in  FIG. 2 , which says “Swipe card,” or “Swipe card through reader;”   (ii) swiping the card;   (iii) reading the display  27 , which says “Enter amount;”   (iv) entering the amount on the keypad  43  in  FIG. 3 .
 
Execution of these four actions, in the proper sequence, is self-explanatory, based on the display  27 . The terminal  40  is self-teaching, as to the actions required by the user.
       

   The Inventor observes that self-service gasoline stations exist in the United States, where customers present a credit card to a card reader, and dispense their own gasoline. These stations prove that such credit card terminals can be self-teaching. 
   6. Further simplification of operation can be obtained by eliminating the requirement of a sequence of operations. That is, as indicated in  FIG. 8 , the logic executed by the invention continually cycles through the “NO” loop, until both the card number and the amount of the sale have been entered, and buffered. However, the order, or sequence, in which these two events occur is not significant. 
   After the two events both occur, as indicated by block  125 , the invention prints the amount entered on display  61  in  FIG. 3 , and asks whether the amount is correct. If so, the invention proceeds to call the ATM network, as usual, as indicated by block  130 . 
   In this embodiment, the user need not be concerned with the order of (i) swiping the card and (ii) entering the amount. 
   7. Because of the simplicity of the invention, it is possible to allow customers to perform part of the billing operation, thereby releasing the waiter from several tasks. 
   For example, when a restaurant patron requests a bill, a waiter enters the amount of the patron&#39;s bill into the terminal  40  of  FIG. 3 , as indicated by block  130  in  FIG. 9 . The invention is designed such that the amount entered by the waiter cannot be changed by the customer, as indicated by block  140 . 
   For example, the terminal  40  can initially display the message “Enter Amount.” After the amount is entered, the terminal displays the message “Press * then # to lock.” When the waiter presses the *-key and then the #-key, the entered amount is stored into a buffer, and cannot be changed thereafter. 
   If, for some reason, the amount must be changed, several approaches can be used. In one approach, a lengthy number sequence can be entered to unlock the terminal  40 . Alternately, the terminal can be programmed such that it remains locked, but for a period of ten minutes, after which time it cancels the amount, and re-initializes itself. In this alternate approach, the waiter sets aside the locked terminal, and uses one of the other terminals  40  in  FIG. 4 . As another approach, a physical key can unlock a physical pin-tumbler lock (neither shown), which actuates a switch, which re-sets the terminal. 
   The waiter presents the locked terminal  40  to the patron. The terminal displays a message asking whether the patron wishes to add a tip to the bill, as by suggesting an additional fifteen percent be added, as indicated in block  150 . If the patron wishes to leave a different tip, block  160  is reached, wherein the patron keys in a desired amount. 
   When block  170  is reached, the terminal requests that the patron swipe a credit card, and proceeds with the logic indicated in blocks  190  and  200 . 
   After the verification service accepts the charges and applies them to the credit card account, the service informs the terminal of this fact. The terminal then issues a visible signal. For example, each terminal can be equipped with a light  220  in  FIG. 3 . When a locked terminal is presented to a patron, the light shines red. After the confirming signal of block  210  is  FIG. 9  is received, the light changes to green. In different embodiments, the light is preferably visible at distances of 10, 20, 30, 40, and 50 feet. 
   Waiters in restaurants will look for patrons leaving their tables, and check the color of the lights on the terminals. 
   Alternately, each terminal can issue a unique coded radio signal, as the confirming signal of block  210  in  FIG. 9 , which is received by a central receiver staffed by a cashier. The cashier thus learns of the completion of each transaction by each terminal. In addition, the cashier can be equipped with a bank of lights, each of which indicates the status (red or green) of the individual terminals  40 . 
   Because the customer is allowed to add a tip to the amount locked in the terminal, then, in one sense, the terminal is not strictly “locked.” However, this apparent anomaly can be resolved in several ways. One is to lock the amount against reduction, but to allow the amount to be increased by the customer. Another is to keep the amount locked, and treat the customer&#39;s tip as a second amount. The terminal  40  then verifies two amounts with the verification service. 
   8. The discussion above has been framed in terms of billing in restaurants. Of course, the invention is not limited to use in restaurants. 
   9. A directional antenna was discussed above. The term “directional” refers to the horizontal plane. For example,  FIG. 10  illustrates the radiation pattern of a short dipole antenna A. The pattern resembles a doughnut. It could be considered “directional,” in the sense that the field strength at point P 1  is different from that at point P 2 . 
   However, in the horizontal plane, the radiation pattern is concentric, as indicated by circles C 1  and C 2 . The field strength at points P 3  and P 4 , equidistant from antenna A, are identical. 
   Lobe L illustrates the radiation pattern of one type of directional antenna A 1 . Lobe L 1  is a horizontal cross section. Points P 5  and P 6 , equidistant from antenna A 1 , receive different field strengths. 
   In another form of the invention, the antenna of the base station  21  takes the form of a wire (not shown) which runs along the ceiling of the restaurant. 
   10. The term “card reader” refers to a device for reading information encoded upon a passcard, such as a credit card. 
   11. The following U.S. patents are hereby incorporated by reference: 
   
     
       
             
             
             
           
         
             
                 
                 
             
           
           
             
                 
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   Numerous substitutions and modifications can be undertaken without departing from the true spirit and scope of the invention. What is desired to be secured by Letters Patent is the invention as defined in the following claims.