Abstract:
A secure credit card and a method of use of the same is shown. A transactional processing system using the method and the secure credit card of the present invention is also shown. The secure credit card has a first group of numbers or symbols which identify a user, and a second group of numbers or symbols, which may be different from the first group of numbers or symbols, and which represent unique information known only to the user, such information not being placed, or encoded, on the secure credit card in any way, so that it cannot be used in credit card theft and fraud. The position and/or number and/or type of symbols in the second group of symbols, or a combination of these, may be used to indicate to a card reader a unique piece of information (the identified information) to be requested from a user to verify a transaction.

Description:
BACKGROUND OF THE INVENTION  
       [0001]     1. Field of the Invention  
         [0002]     The present invention relates generally to the field of credit card security. More particularly, the present invention relates to a simplified method and apparatus for providing credit card security. Most particularly, the present invention relates to a credit card or debit card having a first group of numbers or symbols which identify a user, and a second group of numbers or symbols, which may be different from the first group of numbers or symbols, and which represent information known only to the cardholder. The information known only to the user is not placed, or encoded, on the secure credit card in any way, so that it cannot be used in credit card theft and/or fraud.  
         [0003]     2. Description of the Prior Art  
         [0004]     Credit cards, and more recently debit cards, have been in use in the United States and around the world. The unauthorized or fraudulent use of such credit or debit cards for goods and services has been with the credit card and bankcard industry ever since the inception of the credit or debit card. Much of the problem of fraudulent use of such cards is due to the fact that all the information on the front of the credit card has also been contained on one or more magnetic stripes having one or more, but typically three, tracks for storing all the personal and credit card information.  
         [0005]     This is convenient for present day card reading systems, but can be decoded rather easily by one wishing to practice credit card fraud. Consequently, it is easy to use this information to create illegally any number of credit cards containing the user&#39;s personal information. Many solutions have been offered to solve the problem of credit card and bankcard fraud and theft, and all of them are becoming more and more complicated, and require completely revamping or replacing existing magnetic card readers.  
         [0006]     U.S. Pat. No. 4,614,816 to Pavlov, et al. shows a unitary self-contained card which does not require interaction with a fixed terminal device to prevent monitoring of confidential information contained with the card personal identification number (“PIN”). The unitary self-contained card has the ability to verify a PIN, which is entered directly into the card by way of a keyboard.  
         [0007]     U.S. Pat. No. 4,868,376 to Lessin, et al., shows an intelligent, portable, interactive personal data system having a microprocessor with memory contained in the credit card housing. An alphanumeric keypad and display is located on a surface of the housing.  
         [0008]     U.S. Pat. No. 6,095,416 to Grant, et al., shows an authorization card, such as a credit card, having a security feature. The authorization card generally has two operational states, a disabled state and enabled state. In the disabled state, which is the default mode of operation, access to confidential information stored on the card is denied. The card remains in the disabled state until a PIN code is entered on a keypad provided on the card. Once the card is enabled, access to the confidential information is permitted for a predetermined period of time.  
         [0009]     U.S. Pat. No. 6,257,486 B1 to Tiecher, et al., shows a smart card having a microprocessor contained within the card, with the user&#39;s PIN entered directly into the smart card and authenticated directly by the smart card itself, and not propagated outside the smart card.  
         [0010]     U.S. Pat. No. 6,811,082 B2 to Wong describes a novel bridge device to link the world of smart cards to that of magnetic finance cards.  
         [0011]     U.S. Pat. No. 6,816,058 B2 to MacGregor, et al. shows a card where a biometric sensor device is integrated into the credit card or debit card.  
         [0012]     All of the above devices decrease the possibility of fraudulent debit or credit card use, but certainly do not eliminate it, because they all use electronic devices which can be decoded by one intent on credit card fraud. They are also relatively expensive. The aforementioned U.S. Pat. No. 6,257,486 B1 discusses in detail the security problems of so-called “smart” cards.  
       SUMMARY OF THE INVENTION  
       [0013]     The present invention overcomes the above-discussed problems with credit card fraud by providing a secure credit card having minimal information encoded thereon, and no critical information which can be obtained by decoding. Instead, a first group of symbols, and a second group of symbols, which may be entirely different in type, number or style from the first group of symbols, is provided. The second group of symbols will typically be a group of X&#39;s replacing a group of numbers present on the typical prior art credit card. Only the first group of symbols is contained on a magnetic stripe on the back of the card or chip. This results in a credit or debit card which is more secure than other so-called “smart” cards, but is much less complicated, and less expensive.  
     
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0014]     The present invention will be readily understood by the following detailed description in conjunction with the accompanying drawings, wherein in like reference numerals designate like elements in the several views.  
         [0015]      FIG. 1  shows a first prior art credit card.  
         [0016]      FIG. 2  shows a second prior art credit card.  
         [0017]      FIG. 3  shows the secure card of the present invention.  
         [0018]      FIG. 3A  shows a modification of the construction shown in  FIG. 3 , which is also usable with the constructions shown in  FIGS. 4 and 5 .  
         [0019]      FIG. 4  shows a modification of the present invention.  
         [0020]      FIG. 5  shows a further modification of the present invention.  
         [0021]      FIG. 6  is a schematic diagram showing a credit card and transactional processing system embodying the present invention.  
         [0022]      FIG. 7  is a flow chart illustrating some of the steps that may be used in the practice of a method embodying the present invention.  
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0023]      FIG. 1  shows a typical prior art credit, debit or bankcard  20 . There is permanently displayed on the front face  22  thereof a multi-digit number  24 , typically sixteen numbers in four groups of four numbers, representative of the cardholder&#39;s debit or credit account number. Also displayed on the front face  22  are the expiration date  26  and cardholder&#39;s name  28 . A magnetic stripe  30  is typically found on the back face or surface  32  of card  20  and contains in magnetic form at least the information displayed on the front surface  22 . To process a transaction using the card  20 , a seller may use a magnetic stripe reader, and by sliding at least the upper portion of the card  20  through a slot to read the information stored on the magnetic stripe, may obtain an authorization for a credit card transaction by means well known in the art. It is the possibility of decoding this magnetic stripe that makes possible the widespread credit card fraud practiced today.  
         [0024]      FIG. 2  shows a second prior art credit card  34  having permanently displayed on the front face or surface  36  a fifteen-digit number  38  representative of the cardholder&#39;s debit or credit or bank account number. Also displayed on the front surface  36  are the expiration date  40  and cardholder&#39;s name  42 . Again, a magnetic stripe  44  is typically found on the back surface  46  of card  34  and contains at least the information displayed on the front surface  36 . To process a transaction using the card  34 , the seller again uses a card reader, and slides at least the upper portion of card  34  through a slot to read the information stored on the magnetic stripe. Again, this card provides no better solution to the problem of credit card fraud because of the possibility of decoding the magnetic stripe  44  to obtain all the necessary information to make counterfeit credit cards.  
         [0025]      FIG. 3  shows an improved secure credit or debit card  48  embodying the present invention. This card has a first group of symbols  50  on the front face or surface  54 , which may consist of one or more subgroups having an equal or different number of digits, and a second group of symbols  52 , representing information known only to the cardholder. Information identifying the first group of symbols  50  is encoded on magnetic stripe  48 A as in the prior art cards. With regard to the second group of symbols  52 , these may be encoded as in the prior art, but it is preferable that only information on the number and/or position and/or type of the second group of symbols  52  will be encoded on magnetic stripe  52 . Also, it is well within the scope of the present invention that any of the second group of symbols ( 52 A- 52 C) be replaced by a blank area  53 , as shown in  FIG. 3A .  
         [0026]     A novel feature of the secure credit card  48  is that the position of the second group of symbols  52  (or blank  53 ) on the card  48 , or the number or type of symbols in the second group of symbols  52 , or both, may be used to indicate a piece or pieces of information known only to the cardholder, but the information known only to the cardholder is never encoded on the card. In the preferred embodiment, this second group of symbols  52  is simply a group of four X&#39;s representative of a unique number only known to the user. Normally, in the preferred embodiment, four Xs would be representative of a four-digit number only known to the cardholder, but four digits could be representative of a longer or shorter number, or other piece of information, and the symbols could be alphabetic, numeric, or alphanumeric symbols, as desired.  
         [0027]     With reference to  FIG. 4 , there is shown a modification of the present invention. A first modified secure card  70  is illustrated, which is substantially similar to the secure card  48  shown in  FIG. 3 , except the modified first group of symbols  50 A is now placed completely to one side of the modified second group of symbols  52 A. As will be explained, this difference in position can be utilized by a card reader to determine what information to request from the cardholder. As before, only information relating to the modified first group of symbols  50 A is encoded on magnetic stripe  70 A, either as in the prior art, or per se. Preferably, only information on the number and/or position and/or type of the modified second group of symbols  52 A will be encoded on magnetic stripe  52 , and the information to be requested from the cardholder is never encoded on the modified secure card  70 . As with the construction illustrated in  FIG. 3 , it is well within the scope of the present invention that a blank  53  ( FIG. 3A ) could replace the modified second group of symbols  52 A.  
         [0028]     With reference to  FIG. 5 , there is shown a further modification of the present invention. A second modified secure card  72  is illustrated which is again substantially similar to the secure card  48  shown in  FIG. 3 , except the second modified first group of symbols  50 B is now different in number and completely to the other, or left side, of the second modified second group of symbols  52 B. This difference may be utilized by a card reader to request a different piece of information from the cardholder. Only information relating to the second modified first group of symbols  50 B is encoded on magnetic stripe  72 A, either as in the prior art, or per se. Information on the second modified second group of symbols  52 B is also encoded on the magnetic stripe  72 A. Preferably, only information on the number and/or position and/or type of the second modified second group of symbols  52 B will be encoded on magnetic stripe  52 . As with the construction illustrated in  FIG. 3 , it is well within the scope of the present invention that a blank  53  ( FIG. 3A ) could replace the second modified second group of symbols  52 B Referring to  FIGS. 3 and 6 , there is shown the secure card system  60  of the present invention. System  60  may include a terminal  61 , which may include a card reader  62 , which may be any magnetic or optical card reader known in the art which is capable of reading the first group of symbols  50  from the magnetic stripe  56  on the rear face or surface  48 A, or directly from the front face or surface  54  of secure card  48 .  
         [0029]     The terminal  61  may be similar in appearance to present day terminals, and may have a slot  63  into which the secure card  48  of the present invention will be inserted and slid past a card reader  62  as in any present day card reading system. However, in the preferred embodiment, instead of reading at least all of the information on the front of the card from a magnetic stripe ( 30 ,  44 ) (see  FIGS. 1-2 ) on the back of the card, as in the prior art systems, the reader will read the first group of symbols  50  from the magnetic stripe.  48 A, as well as information on the number and/or position and/or type of second group of symbols  52 , modified second group of symbols  52 A, second modified second group of symbols  52 C or blank  53 . The card reader  62  will transmit this information to a network  64  which identifies the user by the first group of symbols, and knows by the information on the second group of symbols or blank that the cardholder is using a secure card and what information to request.  
         [0030]     The network looks up or determines the information known only to the user, and displays a message on the screen  66  indicating that the cardholder should now type in the needed information for the transaction to continue. In the case of the preferred embodiment, the screen  66  may display the message “Type in unique number” or other similar message.  
         [0031]     Using the keypad  68 , the cardholder will then type in the information requested on the screen  66 . This information will be transmitted to the network  64  by means well known in the art. The network  64  will determine whether the information typed in by the cardholder is correct. Since there is always the possibility that the cardholder may make an error when typing in the information on the keypad  68 , if the information is not correct, the system  60  will again request the information. However, if the correct information is not typed in after a finite number of attempts by the card holder, to prevent fraudulent use, an error message will be displayed, and the system  60  will not allow further tries with that particular card.  
         [0032]     With reference to  FIG. 7 , the method of operation of the secure card system  60  may be understood. Upon the cardholder placing the secure card  48  in the slot  63  of terminal  61  of the present invention, a counter will be initialized at a predetermined value, in the preferred embodiment “0” (Box  100 ). As the card  48  is slid through slot  63  (Box  102 ), the card reader  62  reads information relating to a first group of symbols  50  and (Box  104 ) from the magnetic stripe  48 A on the rear face or surface of the secure card  48 . It is within the scope of the present invention that more information be read from the card as long as no information known only to the cardholder is contained on the secure card  48 . For example, it is contemplated that the position of the second group of symbols  52  (and/or modified second group of symbols  52 A and/or second modified second group of symbols  52 C and/or blank  53 ) with respect to the first group of symbols  50  (for example, the second group  52  is placed first on the card) may be utilized as an additional security feature, for example, to request different or additional information of the type known only to the user or card holder. In this case, information representing the position of the second group of symbols  52  would be encoded on the magnetic stripe  56 . However, the security of the system  60  would not be compromised because the potential fraudulent user would still not know what information was being requested from the network  64  because of the placement or number of the second group of symbols  52 .  
         [0033]     Based on the first symbols  50  and by the type, size, relative position and location of second symbols  52 , which is communicated to the network, the secure card system  60  will determine and identify which information to request from the cardholder (Box  106 ).  
         [0034]     Next (Box  108 ) the cardholder would be requested by a message generated by the network  64  and displayed on screen  66  to type in the identified information by the use of the keypad  68 . The network  64  will then determine if the information typed in by the cardholder matches the identified information (Box  110 ). If it does, the network  64  authorizes or accepts the transaction (Box  112 ).  
         [0035]     If the information typed in by the cardholder did not match the identified information, the counter would be incremented according to the formula x=x+1. In this case, since the counter was initially set to 0 (Box  100 ), the counter would now have the value 1 (Box  114 ). The network will then ask “Is x=3?” (Box  116 ). If “x is not =3”, then the cardholder would again be prompted to enter the identified information (Box  108 ). If the cardholder had made an error when first requested to enter the information, but now has entered the identified information correctly (Box  110 ), the secure card system  60  would now authorize the transaction.  
         [0036]     If for some reason the cardholder did not enter the identified information correctly, the counter would again be incremented by “1” (Box  114 ). The counter would now have a value of “2”, and the system would again ask the question “Is x=3?” (Box  116 ). Since the answer would be no, the cardholder would again be prompted to enter the identified information (Box  108 ), the system would determine if the information entered by use of the keypad  68  matched (Box  110 ). If it did, the secure card system  60  would authorize the transaction (Box  112 ). If the information entered on the keypad  68  did not match, the above process would continue until “x=3” (Box  116 ). The secure card system  60  would then not allow any more tries at entering the identified information, and the system  60  would display any error or fraud signal (Box  118 ). It is well within the scope of the present invention that the counter may be set to display an error or fraud signal (Box  118 ) at a different value, or that a different series of steps be used as long as the cardholder is only allowed a small number of tries before the system  60  will not permit another try.  
         [0037]     There is thus provided a secure credit, debit or bank card  48 , and a secure card reading system  60  and method of operation thereof which provides as much or more security as present day or proposed “smart” card systems, but which is much simpler and more cost effective.  
         [0038]     The foregoing descriptions and drawings should be considered as illustrative only of the principles of the invention. Numerous applications of the present invention will readily occur to those skilled in the art. Therefore, it is not desired to limit the invention to the specific examples disclosed or the exact construction and operation described. Therefore, it is to be understood that, within the scope of the appended claims, the invention may be practiced other than as specifically described herein.