Abstract:
A transaction method, system and apparatus of the present invention employs two electromagnetically read cards. A first card is employed for accessing account data of a corresponding account. A second card effectively carries identity data of the owner/account holder of the first card. During a transaction, the two cards must be used sufficiently in tandem or in proper series order, in order for the card processing center to authorize the subject transaction. In particular, use of the first card accesses a corresponding account to determine if the account is active versus in a halted state (e.g., due to a reported stolen or lost card). Use of the second card spaced apart (in time and/or in distance) from the first card then verifies identity of the user as an authorized person to be accessing the corresponding account and hence authorized user of the first card. As such the second card verifies, validates, authenticates or otherwise confirms identity of the first card owner (also referred to as the corresponding account owner) and serves as an identity data member.

Description:
RELATED APPLICATION 
       [0001]    This application claims the benefit of U.S. Provisional Application No. 60/782,562 filed on Mar. 14, 2006. The entire teachings of the above application are incorporated herein by reference. 
     
    
     BACKGROUND OF THE INVENTION 
       [0002]    Many monetary transactions are performed using a plastic card with a data carrying magnetic stripe. Examples are credit cards, debit cards, telephone calling cards, ATM cards and gift cards. There are other transactions (non-monetary included) that use such electromagnetically read plastic cards. 
         [0003]    The problems with such plastic cards include piracy and identity theft. The British Broadcasting Corporation reports card cloning or “skimming” has doubled in the United Kingdom in the past year with the resulting thefts up to millions of dollars. See “How Credit Cards Get Cloned”, news.bbc.co.uk, Thursday, Jan. 4, 2001. 
       SUMMARY OF THE INVENTION 
       [0004]    The present invention addresses the foregoing problems in the prior art. In particular, the present invention provides increased security of identity data of card owners of magnetically read cards. 
         [0005]    In one embodiment, a transaction method, system and apparatus of the present invention employs two electromagnetically read cards. A first card is employed for accessing account data of a corresponding account. A second card effectively carries identity data of the owner/account holder of the first card. During a transaction, the two cards are used sufficiently in tandem or in proper series order, in order for the card processing center to authorize the subject transaction. In particular, use of the first card accesses a corresponding account to determine if the account is active versus in a halted state (e.g., due to a reported stolen or lost card). Use of the second card spaced apart (in time and/or in distance) from the first card then verifies identity of the user as an authorized person to be accessing the corresponding account and hence authorized user of the first card. As such the second card verifies, validates, authenticates or otherwise confirms identity of the first card owner (also referred to as the corresponding account owner) and serves as an identity data member. 
         [0006]    Preferably the identity data member is universal and thus usable with other credit/debit/transaction cards. That is, an individual may own several credit/debit cards and the like but need only have one identity data card which is usable in tandem/series with each such credit, debit card or other transaction type card in the manner described above. 
         [0007]    In order to deter piracy and theft, the second card (identity data member) is encoded or programmed so as to not be usable before a first card to access an account and causes generation of error signals if not used properly in succession after a first card (i.e., if used other than second in turn). 
         [0008]    In other embodiments, the identity data member is a transaction card with a digital processing chip instead of electromagnetically readable stripe. Other alternative embodiments include use of RF (radio frequency) technology or similar for the identity data member to reduce the ability to be skimmed (cloned). In that embodiment, the identity data member includes an electronic tag (or digital processing chip plus radio frequency antenna) that electronically communicates the identity data to the system. The card reader may be wireless or otherwise configured to further accommodate the present invention. 
         [0009]    In other embodiments, the identity data member enables credit history requests and other personal records requests to be initiated in a paperless fashion. 
         [0010]    In another embodiment, the identity data member enables requests of a digital image of the authorized user/account owner to be initiated. An authorized user/account owner updates the digital image. 
         [0011]    In yet another embodiment, a first or second card uses multiple magnetic stripes for storing data. 
         [0012]    In still yet another embodiment, a respective data carrying magnetic stripe of the first or second card uses a Track 1 and a Track 2 for storing data. The Track 1 and Track 2 contains either a 7-bit alphanumeric characters or a 5-bit numeric characters. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0013]    The foregoing and other objects, features and advantages of the invention will be apparent from the following more particular description of preferred embodiments of the invention, as illustrated in the accompanying drawings in which like reference characters refer to the same parts throughout the different views. The drawings are not necessarily to scale, emphasis instead being placed upon illustrating the principles of the invention. 
           [0014]      FIG. 1  is a schematic view of a point of sale system and network employing embodiments of the present invention. 
           [0015]      FIGS. 2   a  and  2   b  are schematic views of a first credit card. 
           [0016]      FIGS. 3   a  and  3   b  are schematic views of an identity data member of the present invention. 
           [0017]      FIG. 4  is a block diagram of datastore records employed in the system of  FIG. 1 . 
       
    
    
     DETAILED DESCRIPTION OF THE INVENTION 
       [0018]    A description of preferred embodiments of the invention follows. 
         [0019]    The subject invention is described below for use at a point of sale (POS) terminal  60  such as in restaurants and retail stores. The POS terminal  60  includes a cash register  61  and a card reader  10 . The cash register  61  is of conventional type with a display  63 , keypad  62 , and drawer  64 . 
         [0020]    The card reader  10  is a common magnetic reader and is connected over a network (e.g., Ethernet, telephone, cable net, or other suitable connection)  75  to an authentication server  80  for verifying and authorizing a credit card transaction. The authentication server  80  is operated by a credit card company or clearing house (an organization that contracts with multiple credit card companies to provide centralized credit checks and risk evaluation services). 
         [0021]    Card reader  10  may be of the wireless or any variety of types used in the industry. 
         [0022]    During a transaction in the present invention, card reader  10  reads a first of two credit cards  20 ,  30 . In particular, card information such as a card number is read from the first credit card  20  and transmitted by the card reader  10  to the authentication server  80 . In response, the authentication server  80  runs a credit check to verify if the credit card  20  was reported lost or stolen or if the corresponding credit card account is inactive for any other reason. The authentication server  80  returns the risk evaluation result to the POS terminal  60 . 
         [0023]    Next data from the second  30  of the two cards of the present invention is read by the card reader  10  and provides information regarding the owner of the two cards  20 ,  30 . The card reader  10  transmits this magnetically read identity data (from second card  30 ) to the authentication server  80  for matching to the subject credit card account (accessed by the first credit card  20 ). Specifically, authentication server  80  queries its datastore for owner and authorized user information of the subject credit card account as stored by authentication server  80  or otherwise recorded from the financial institution (e.g., bank) issuing the first credit card  20 . If the transmitted identity data from the second card  30  does not match the account owner/authorized user information for the first card  20 , then the authentication server  80  does not approve the transaction and returns a pertinent indication (message) to the POS terminal  60 . 
         [0024]    In other embodiments, any number of credit cards owned by an individual may be used as the first credit card  20  above. The same one identity data (second) card  30  is universally usable with each qualifying first credit card to provide the above described authentication (e.g., identity verification). 
         [0025]    Further, if the second card  30  is used (read) preceding the first card  20 , the authentication server  80  prevents any current transaction at POS terminal  60 . That is, the data encoded on second card  30  does not include a valid or working credit card account number. Alternatively, the encoded data may otherwise indicate that second card  30  is a decoy credit card carrying identity data to serve only as a security check (and not as a typical account accessing transaction initiating means). Thus the authorized card user (account owner) is the only one who apparently knows which credit card serves as the identity data card  30  that is to be used second in succession with a qualifying first credit card  20 . 
         [0026]    In another embodiment, the identity date of the second card  30  may also include a digital image of the account owner/authorized user. A card reader  10  transmits this magnetically read digital image (from second card  30 ) to an authentication server  80  for matching to the subject credit card account (accessed by the first credit card  20 ). Specifically, authentication server  80  queries its datastore for the owner and authorized user of the subject credit card account as stored by authentication server  80 . The authentication server  80  returns a stored digital image to a vendor. The vendor visually inspects the returned visual image with a person using the second credit card  30 . If the transmitted digital image from the second card  30  does not match the person using the second credit card  30 , the vendor will not approve the transaction. It is useful to note that a person should update the digital image corresponding to their second card  30 . 
         [0027]    Other POS terminals  15  of respective merchants are similarly capable of processing tandem/serial credit cards  20 ,  30  of the present invention by connecting to authentication server  80  through network  75 . 
         [0028]    The first and second credit cards  20 ,  30  of the present invention are encoded using known technology. Any number of encoders which magnetically encode data onto magnetic strips known in the art may be used. For example, the encoder may include a magnetic imprinter of conventional design for erasably imprinting the below described indicia on stripes  22 ,  32  ( FIGS. 2   b ,  3   b ) of conventional temporarily magnetizable material such as is commonly used on credit cards. Stripes  22 ,  32  extend along appropriate substrates on the back of the cards  20 ,  30 . 
         [0029]    Typically a magnetic stripe card includes a magnetic stripe within a plastic-like film. The magnetic stripe is located about 0.223 inches from the edge of the card, and is about 0.375 inches wide. The magnetic stripe may also operatively contain three tracks, each about 0.110 inches wide. Tracks one and three are typically recorded at about 210 bits per inch, while track two typically has a recording density of about 75 bits per inch. Each track can either contain 7-bit alphanumeric characters, or 5-bit numeric characters. Financial transactions typically use up to three tracks on magnetic cards. Following industry protocol or industry standards, these tracks are named Track 1, Track 2, and Track 3. Currently, Track 3 remains unused by the major worldwide networks. In fact, Track 3 is not physically present on many of the magnetic cards in use. A Point-of-sale card readers almost always read track 1, or track 2, and sometimes both, in case one track is unreadable. The minimum cardholder account information needed to complete a transaction is present on both tracks. Track 1 has a higher bit density (210 bits per inch vs. 75), is the only track that may contain alphabetic text, and hence is the only track that contains the cardholder&#39;s name. 
         [0030]    A track format is written with a 5-bit scheme (4 data bits+1 parity), which allows for sixteen possible characters, which are the numbers 0-9, plus the six special characters (e.g., : ; &lt; = &gt; ?). The data format typically includes a start sentinel, primary account number, separator, expiration date, service code, discretionary data, end sentinel, and LRC (Longitudinal Redundancy Check). 
         [0031]    In accordance with the principles of the present invention, the magnetic stripe  22  ( FIG. 2   b ) on the back surface of a qualifying first credit card  20  is encoded with account data, such as a credit card account number, bank identifier, etc. In an embodiment, a first or second card  20 ,  30  may use two magnetic stripes for storing data. For example, a magnetic stripe may be used for each Track. The front surface of credit card  20  bears the credit card account number, name of the card (and account) owner and other indicia as typical in the industry.  FIG. 2   a  is illustrative. An authorized user places his signature on the back of card  20  in a designated area  24  shown in  FIG. 2   b . An n-digit code  26  appears in the signature area  24  of the credit card  20  and serves as extra security by means known in the art. 
         [0032]    The second credit card  30 , serving as the identity data member of the present invention, is encoded with name of the authorized user and/or owner and holder of accounts corresponding to qualifying first credit cards  20 . Means for linking to or otherwise referencing those accounts may also be encoded on second card  30 . In one embodiment, the magnetic stripe  32  ( FIG. 3   b ) of the second credit card  30  holds only account owner (or authorized user) identity data matching the account owner (authorized user) data of the accounts of qualifying first credit cards  20  without the second card&#39;s  30  account number data and information normally encoded on credit cards. However, as shown in  FIGS. 3   a  and  3   b , the front and back side of the second credit card  30  from all appearances look like a credit card and bears a credit card number, signature area  34  with n-digit code  36  and other indicia as a decoy. That is, the second credit card  30  is encoded in a manner such that a transaction cannot be initiated by the second credit card  30  but only authorized user identity is verified or otherwise validated. In this way, those not familiar with the two cards  20 ,  30  cannot easily distinguish which is the identity data card  30  and which is a conventional credit card usable for initiating transactions. Only the authorized user/owner of the credit cards  20 ,  30  knows the distinction either based on the printed card number on the face of the cards or the n-digit code  26 ,  36  or other security number printed on the back of the cards. In some embodiments, the account number on the face of the second card  30  is effectively an inactive account number as interpreted by the authentication server  80 . 
         [0033]    Other decoy indicia and fashioning of a second credit card  30  are suitable. For example, second credit card/identity data member  30  may appear as a gift card, telephone calling card, library card, fundraising card, a card for a random organization or entity, etc. 
         [0034]    In other embodiments, the first and/or second credit cards may employ digital processor chips instead of magnetic stripes  22 ,  32  for carrying respective data. 
         [0035]    In another embodiment, the second credit card or identity data member  30  is implemented using RF technology. Radio-frequency identification (RFID) is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders. An RFID tag is an object that can be attached to or incorporated into a product, such as a credit card for the purpose of identification using radio waves. Chip-based RFID tags contain silicon chips and antennas. The card  30  has (i) a digital chip and radio frequency antenna or (ii) an electronic tag for electronically communicating the authorized user identity data to authentication server  80 . 
         [0036]    In other embodiments, smart cards containing an integrated circuit chip are used. A smart card, chip card, or integrated circuit(s) card (ICC), is a pocket-sized card with embedded integrated circuits. 
         [0037]    In another embodiment, the identity data member (second card)  30  is used to electronically communicate name, address and other personal identity data of an authorized user (card owner and account holder). For example, such communication may be to a credit bureau in a request for credit history such as by a real estate office, mortgage broker, car dealer, etc. A card reader  10  in that example transmits the read identity data over a network  75  to a credit bureau server (not shown) programmed to process such requests. In response, the credit bureau server searches and finds credit records corresponding to the subject user and generates a credit history report. Authentication server  80  may serve as such a credit bureau server or may be coupled to communicate to one. Other configurations are suitable and in the purview of one skilled in the art, given this disclosure of the present invention. 
         [0038]    For example, on-line shopping (via the Internet) using the invention dual cards  20 ,  30  approach (method) of the present invention may occur as follows. The user enters account data from first credit card  20  as prompted. When prompted to enter the additional security code from the back of the credit card, the user enters the code  36  from the back of the second card  30 . The authentication server  80  is programmed to match this security code  36  with the authorized user of qualifying first credit card  20  and corresponding credit card account. This effectively validates, authenticates or otherwise confirms that the end-user is a legitimate (authorized) user of the first credit card  20 . 
         [0039]    Further authentication server  80  is programmed by known means and techniques to properly interpret the serial or tandem reading of the invention cards  20 ,  30  as described above. A time threshold between the two readings or other spacing between the reading of the two cards  20 ,  30  may be utilized (so that if the second card  30  does not readily follow the reading of the first card  20 , authentication server  80  denies/does not approve the transaction). Database indexes, links or other techniques may be employed by authentication server  80  to implement the cooperation between the first credit card  20  (account data) and the identity data card  30  (authorized user data) in the many embodiments described above. 
         [0040]    For example, in a database or other datastore accessible by authentication server  80 , there is one record  40  ( FIG. 4 ) per credit card account. For a given credit card account, the respective record  40   a  has a field for holding the credit card (account) number such as at  42  in  FIG. 4 . This field  42   a  may serve as an index to the record  40   a  enabling authentication server  80  to find the record based on a search (query) using the credit card number. The record  40   a  also indicates other subject account information such as name of issuing bank  41 , billing information  44 , n-digit code  26  and whether the account is active  46 . For the latter, a flag may indicate a reported lost or stolen credit card and hence inactive or halted account status. The record  40   a  also indicates names of authorized users  48   a  (e.g., account/card owner and/or others). 
         [0041]    The record  40   b  for the identity data member (second card  30 ) has similar fields  41   b ,  42   b ,  44   b ,  46   b ,  48   b  of information as above. The field or flag indicating account status  46   b  is set to “inactive”, or “identity purpose only” or the like. This enables authentication server  80  to send a proper “non-authorized transaction” response to a second card  30  being read out of turn (i.e., before a first card  20 ) as mentioned above. In addition, the names of authorized users  48   b  and n-digit code  36  are indexed, linked or otherwise cross-referenced to the records  40  of qualifying first card  20  (as indicated by dashed lines) that the second card  30  is usable with (to authenticate). This enables the authentication server  80  (and/or card reader  10  program) to respond to the reading of the second card  30  subsequent to the reading of a first card  20  by matching authorized users data  48   a, b.    
         [0042]    The foregoing is for example and not limitation of the present invention. Other configurations, indications, and programming are suitable. 
         [0043]    While this invention has been particularly shown and described with references to preferred embodiments thereof, it will be understood by those skilled in the art that various changes in form and details may be made therein without departing from the scope of the invention encompassed by the appended claims.