Abstract:
A value storage system in which information representing value is directly written to an easily portable storage medium as a reference fingerprint. The value storage system includes a plurality of read/write units for storing and retrieving the value information. Each of the read/write units may include a data authenticator for authenticating information previously stored on the storage medium, the authentication information consisting of a numerical representation of a level of trapped charges representing the reference fingerprint. The read/write units may be connected to a central server which retrieves information from each of the read write units, stores information, and provides various accounting and statistical analyses, as well as reconciling transactions between two or more read/write units. The value stored may represent units of value employed in a customer loyalty program which are stored on the portable media during a sales transaction and then later redeemed for purchase of or discounts on merchandise, a gaming player&#39;s points or winnings, or any of a host of types of value related information which may be carried on a portable card.

Description:
FIELD OF THE INVENTION 
     This invention relates generally to electronic information storage, and more particularly, to a system for electronically storing and retrieving value related information on a portable card. 
     BACKGROUND OF THE INVENTION 
     Electronic value storage systems have gained widespread acceptance over the past thirty years or so, but the scope of applications in which they can be used continues to be limited. This is because the value storage system typically consists of a central database, with debits and credits being made at the database. A customer is typically issued a plastic card with a magnetic stripe identifying the customer&#39;s account. The card typically contains no balance information or other information besides the customer&#39;s account number or other identifying number. 
     The card typically contains no security provisions. Instead, security is provided by a separate access code or personal identification number (PIN) preferably memorized by the customer, which must be provided along with the card in order for the card to operate. The access code is preferably stored at the central database along with the identifying number found on the card. 
     The cards utilized in conjunction with the central database system are quite inexpensive, but the cost of the cards represents only a trivial portion of the cost of the overall system. The system is dependent on one or more central databases, each of which can be quite expensive. Moreover, the databases must be accessible to every terminal at which the card might be used. A typical system thus requires a card; a card reader at the point of sale; a central database at the customer&#39;s home bank; and a telecommunications network which must be able within seconds to establish a connection between a point-of-sale terminal in, for example, Kuala Lumpur, Malaysia, and a central database in, for example, New York City. 
     The need for a large central database, which may need to be accessible over a wide area, increases the cost of the system and makes it impractical for a small merchant who may, for example, wish to institute an automated customer loyalty tracking and rewards program. For such an application, it would be preferable to have value stored on the card itself. In this way, a decentralized system of cards and readers could be created which was no larger than necessary to serve the required number of point-of-sale terminals. Unlike the case in which a central database was used, the decentralized network would not require a central data storage location in order to operate. Moreover, under normal operation, one reader would not necessarily need to be in contact with another reader, but instead could execute its transactions independently. 
     Card systems, such as the SMARTCARD® have been introduced in which information is stored directly on the card, but these systems suffer from several drawbacks. First, the cards and the readers are expensive. The cards range in price from $3.50 to $13.00, while the readers range in price from $59.00 to $420.00 and the transaction costs range from $0.02 to $0.16. The cost of the card, in particular, is a significant factor, and limits the flexibility of practical uses of the card. It would be impractical, for example, to use the card for a one-time, limited duration promotion, as the benefits to be derived over a limited time would not cover the cost of the cards. Moreover, the cost of the card readers and of the transactions limit the base of customers who may be able to use the cards. 
     Cards such as the SMARTCARD® also have limited security. The danger therefore exists that fraudulently manufactured cards will be used, thus disrupting the business of legitimate customers. 
     A need therefore exists in the art for a low-cost, high-security system for electronic storage of value on an easily transportable medium such as a card. 
     SUMMARY OF THE INVENTION 
     According to one embodiment of the invention, a value storage system is provided in which value is stored on a transportable medium. Information representing the value is preferably stored on the medium in semiconductor memory cells of a semiconductor device. A numerical data string is generated, called a reference fingerprint, representative of the data stored in the memory cells. The reference fingerprint is related to numerical representations of the precise levels of trapped charges present in the memory cells at the time data is programmed. An EEPROM is suitably used as the semiconductor memory device. A reader/writer retrieves information from the device and writes information to the device by conventional means. The EEPROM is authenticated via the reference fingerprint. If the actual reference fingerprint matches the expected reference fingerprint, then a match occurs and data is read from or written to the EEPROM, as desired. 
     The authenticated data may be suitably used in an application such as a customer loyalty program. Each of a number of customers is issued a low cost card containing an EEPROM, on which information can be securely recorded. A plurality of read/write units are suitably furnished, each read/write unit being capable of securely storing data on, and reading data from, a customer&#39;s card. Each card may contain various data which can be read and employed in various recordkeeping, accounting and statistical functions. While a networked system could be employed, each read/write unit is capable of operating independently from the others, reading and writing data to each card, and maintaining a log of information relating to transactions from each card. 
     Each card is preferably encoded with identifying information, and used in sales transactions for the storage of bonus points related to each transaction. Bonus points may be awarded for sales transactions, and subsequently used for the purchase of, or discounts on, merchandise. Read/write units and cards may be connected to a central server to facilitate the transfer and maintenance of information on a storewide basis. 
     As an exemplary alternative, the presently disclosed cards and card systems may be suitably employed in a gambling or gaming context, such as in conjunction with Pachinko games, slot machines, off track betting (“OTB”) or the like. In such a system, a winner&#39;s winnings or points may be stored on a card and then redeemed at a later date without the need of tickets, chips or prizes. One or more merchants, stores or other authorized providers can then redeem the points or winnings. For example, a bank could pay out a winner&#39;s winnings, or a store could provide merchandize. Gaming points or winnings might be stored in a separate register or the same register containing points from another loyalty program. Similarly, multiple loyalty programs might have separate point total registers or the same register depending upon the relationship of the participants in the programs. It will be recognized that other sources of value related information could also be used in conjunction with the present system. 
     A more complete understanding of the present invention, as well as further features and advantages of the invention, will be apparent from the following Detailed Description and the accompanying drawings. 
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS 
     FIG. 1 illustrates a value storage system employing the methods and apparatus of the present invention; 
     FIG. 2 illustrates an alternative embodiment of a value storage system according to the present invention, employing a central server to facilitate the transmission and processing of information; 
     FIG. 3 illustrates a multi-merchant cooperative loyalty system according to the present invention; 
     FIG. 4 illustrates a card read/write unit according to the present invention, shown connected to a point-of-sale terminal; 
     FIG. 5 is a functional block diagram of a read/write unit according to the present invention; 
     FIG. 6 is a flowchart illustrating a method of monitoring and rewarding customer loyalty according to the present invention; and 
     FIG. 7 is a flowchart illustrating a method of receiving and processing information in a multi-merchant customer loyalty system according to the present invention. 
    
    
     DETAILED DESCRIPTION 
     FIG. 1 shows a value storage system  100  according to the principles of the present invention. System  100  is suitably adapted to the administration of a consumer or customer loyalty program operated by a merchant with a plurality of branches in a particular geographic area. System  100  includes a plurality of cards, of which an illustrative example is card  102 , which are used as an easily transportable medium for the storage of data or information, such as value indicia, customer identification, customer profile information, bonus points based upon the dollars spent by the customer, points, gaming winnings, or the like. Card  102  preferably contains an EEPROM  102 A for the storage of data, suitable for use with a data security system according to the teachings of Fernandez U.S. Pat. No. 5,644,636 (“Fernandez”), which is incorporated herein by reference. The use of the data security system of Fernandez in conjunction with the teachings of the present invention protects against counterfeiting and provides for a high level of confidence in the integrity of the data without the need for complicated and expensive communications systems to verify each individual transaction. 
     System  100  further includes card read/write units  104 A-D, each of which is adapted to operate with any of the cards such as card  102 . The units  104 A-D way be located in a single store or distributed through a number of stores. Although four units are shown, it will be recognized that a smaller or larger number of units may be readily employed as desired. 
     When a merchant desires to institute a loyalty program, he can purchase a supply of cards and purchase or lease sufficient read/write units to serve his point of sale locations. The supplier can program the read/write units to operate the loyalty program, as desired by the merchant. The merchant then distributes cards  102 A-N to his customers, who then present the cards to the merchant whenever they make purchases. For example, suppose that a customer has been given card  102 , and makes a purchase at the point of sale terminal  103 A which is served by read/write unit  104 A. The customer presents the card  102  to the merchant, who inserts card  102  into read/write unit  104 A. Read/write unit  104 A receives information about the sale from point-of-sale terminal  103 A, calculates an appropriate amount of value to add to card  102 ,reads the value on card  102 ,updates the value on card  102  by adding the additional value to the presently existing value, and writes the updated value on the card  102 . 
     When a customer desires to redeem credit, he presents card  102  to the merchant, who inserts the card into read/write unit  104 A. The merchant enters the amount of credit to be redeemed. Read/write unit  104 A debits the value of card  102 A accordingly, in a process similar to that described above, and transmits the redeemed value to point-of-sale terminal  103 A, which calculates appropriate credit for the redemption, and adjusts the balance due for the sale accordingly. While an exemplary loyalty program is described above, it will be recognized that the present invention may be adapted to a wide variety of such programs. 
     For example, the present invention may be applied to Pachinko, gaming, gambling, or the like. Further specific examples might be off track betting, lotteries, and casinos. to this end, system  100  is shown as including a further source of value related information  103 D′ connected to a read/write unit  104 D′. Exemplary sources within further source  103 D′ are a Pachinko machine, a slot machine, OTB, other gaming sources and other sources generally. The advantages provided by the present invention will be readily adaptable to a host of applications. 
     FIG. 2 shows a loyalty system  200  in an alternative embodiment according to the present invention. System  200  includes cards  202   1 - 202   n  similar to the card  102  illustrated in FIG. 1, point of sale terminals  103 E-H and read/write units  104 E-H. System  200  also includes a central server  106 . Central server  106  is adapted to furnish updated information to each of the read/write units  104 E-H upon request. This information may include criteria by which value is to be added to a card, criteria governing the amount of value to be added, rules governing the use of value for purchases or discounts, and the like. Through the use of central server  106 ,the operation of read/write units  104 E-H can be conveniently updated. 
     Central server  106  also makes possible online operation of the loyalty system  200 . While online operation does not require read/write units  104 E-H to be in continuous communication with central server  106 , or to have continuous access to central server  106 , read/write units  104 E-H can connect periodically with central server  106  to perform various online functions. It will be noted, however, that online operation is not needed for secure operation although it may be utilized in addition to the security presently provided. It will be recognized, however, that such redundant operation will eliminate much of the cost savings the present invention provides. 
     As was the case for the embodiment of FIG. 1, the online system  200  may be readily adapted to a variety of contexts, such as Pachinko, slot machines, OTB, other gaming applications and other applications generally. To this end, FIG. 2 additionally shows a further source  103 H′ and read write unit  104 H′ connected to the central server  106 . 
     FIG. 3 illustrates a multi-merchant cooperative loyalty system  300  in accordance with the present invention. For purposes of simplification, system  300  will be described in terms of two merchants including a supply of interchangeable cards (not shown) which will preferably be similar to card  102 ; first set of read/write units  104 J-M, belonging to a first merchant, read/write units  104 J-M connected to a first set of POS terminals  103 J-M, respectively; a second set of read/write units  104 N-Q belonging to a second merchant, a second set of read/write units  104 N-Q which are connected to a second set of POS terminals  103 N-Q, respectively, and a central server  302 . 
     The inclusion of the central server  302  in the loyalty system  300  allows the communication needed to operate a cooperative loyalty program, but without the necessity of maintaining continuous contact or access between read/write units  104 J-M,  104 N-Q, and central server  302 . Instead, each of the read/write units  104 J-M and  104 P-Q will preferably establish contact with central server  302  either on demand or at prearranged times, transmitting information for central server  302  to store and administer. In other words, contact will not be necessary on a transaction by transaction basis. For example, each of the read/write units may desirably transmit its daily transaction log to the central server  302 . Central server  302  can then use the transmitted logs to maintain and update stored information, which it can then process so as to administer the loyalty program. For example, central server  302  can make current information available on request, and can print a batch report at any time. Central server  302  can maintain a file for each merchant, which is updated periodically. Central server  302  can use the transaction log files received from the read/write units to produce marketing analysis reports. 
     Moreover, central server  302  can perform a reconciliation function similar to that of a clearinghouse. After the transaction logs of all of the read/write units have been transmitted to the central server, the central server identifies points earned and redeemed, and allocates them properly between merchants. Imbalances in point redemptions can be settled between merchants according to prior arrangements. 
     FIG. 4 is a more detailed illustration of a read/write unit  104 A and its operation according to the present invention. The read/write unit  104 A is shown connected to a point-of-sale terminal  103 A, with which the read/write unit  104 A preferably communicates. The read/write unit  104 A includes a slot  402  for insertion of a card, such as the card  102  illustrated in FIG.  1 . The read/write unit  104 A also includes a keypad  404  for direct entry of data. The read/write unit  104 A further includes a POS connection  406  to the point of sale terminal  103 A, as well as a server connection  408  which may be used to connect the read/write unit  104 A to a central server, such as the central server  302  illustrated in FIG.  3 . 
     The server connection  408  can be an ordinary telephone data interface such as a modem, allowing the read/write unit  104 A to be connected to the server over a conventional telephone line  410 .Read/write unit  104 A is suitably used in connection with a customer loyalty program, in which a customer is awarded points for participating purchases, and is able to redeem those points for merchandise or services. 
     Read/write unit  104 A may suitably perform all point award and redemption functions, and maintain a log of all points awarded and redeemed. Read/write unit  104 A is suitably programmed with loyalty program parameters, which may include frequency and monetary data, and information based on the merchant&#39;s own marketing strategy. Moreover, points are preferably identified with the issuing merchant, and their usability is defined. For example, points may be redeemable at only the issuing merchant, at any of the participants of a multiparticipant loyalty program, or at a subset of the participants of a multiparticipant loyalty program. Typically, the parameters of operation of read/write unit  104 A are programmed in when read/write unit  104 A is installed. Alternatively, new or updated parameters of operation can be downloaded from the central server. 
     During typical operation of the read/write unit  104 A, a customer gives his card to a sale clerk who inserts it into the read/write unit  104 A. If the sale is a normal sale in which points are to be awarded, the sales clerk then performs the sales transaction normally. The point of sale terminal  103 A transmits the sales information to the read/write unit  104 A. The read/write unit  104 A then computes the number of points to be awarded and updates the value stored on the card. Alternatively, the point transaction can be entered directly onto the keypad  404 . 
     If the transaction is to be a redemption of points, the customer gives the card to the sales clerk, who inserts the card into the read/write unit  104 A and processes the transaction on the point of sale terminal  103 A. The read/write unit  104 A then deducts the desired number of points from the card and updates the value of the card. The read/write unit  104 A simultaneously transmits a credit entry to the point of sale terminal  103 A reflecting the value of the points deducted. The read/write unit  104 A prints a receipt for each transaction, showing the transaction and the current point total. Points can also be redeemed by entering the transaction directly onto the keypad  404 . The redemption transaction can then be manually entered into the point of sale terminal  103 A. 
     FIG. 5 is a functional block diagram of a read/write unit  104 A according to the teachings of the present invention. Read/write unit  104 A preferably includes a microcontroller  502 , program storage  506 , control processor  508 , data storage  509 , a portion of which is dedicated to transaction log  510 , POS interface  512 , central server interface  514  and printer  516 . Microcontroller  502  is preferably adapted to read and write data to an EEPROM, and is preferably further adapted to provide data security according to the teachings of Fernandez U.S. Pat. No. 5,644,636 (“Fernandez”), incorporated herein by reference. In writing data, therefore, microcontroller  502  stores a reference fingerprint corresponding to numerical representations of a measurement of the levels of charges trapped in the memory cells. In reading data, microcontroller  502  makes comparisons of the reference fingerprints for authentication. Upon insertion of a card, microcontroller performs authentication by checking the reference fingerprint. If authentication passes, read/write unit  104 A functions normally. If authentication fails, read/write unit  104 A will not perform any operations on the card. The secure card provides a level of security which can be recognized at the read/write unit making it unnecessary to perform online verification of the validity of the card. The card may include a user personal identification number (PIN) in fingerprint form which the user will then key in so that protection is provided against lost or stolen cards. 
     Control processor  508  controls the operation of read/write unit  104 A, under the control of programming stored in program storage  506 . Standard programming is placed in program storage  506  at the time of manufacture of read/write unit  104 A, with supplemental programming being stored when read/write unit  104 A is to be installed in a customer location. Alternatively, supplemental programming can be updated by instructions received through server interface  512 , from a central server such as central server  302  described in connection with the discussion of FIG.  3 . 
     During typical operation, read/write unit  104 A communicates with a connected point of sale terminal through POS interface  512 . Read/write unit  104 A receives instructions and data from the point of sale terminal, and these instructions and data are processed by control processor  506 , which then directs appropriate actions by microcontroller  502 . 
     For example, if loyalty points are to be awarded, the point of sale terminal transmits the sale data to the control processor  506  over the POS interface  514 . The control processor logs the sale data in the transaction log  510  and microcontroller  502  to write updated information on the card. For security, this data may be written as a reference fingerprint. The control processor also directs printer  516  to print a transaction receipt reflecting the transaction as entered in the log. 
     If loyalty points are to be redeemed, this information is entered into the point of sale terminal as the method of payment for the transaction. The point of sale terminal directs the read/write unit to redeem an appropriate number of points. This directive is transmitted via POS interface  512  to the control processor  506 . The control processor  506  directs microcontroller  502  to check the card for a sufficient number of points. If the number of points on the card is insufficient, the control processor reports a failure to the point of sale terminal, which then rejects the transaction. If the card contains a sufficient number of points, write unit  504  updates the value on the card, again writing the new data as a reference fingerprint, and control processor  506  reports to the point of sale terminal that the transaction was successful. The point of sale terminal then applies the value of the points as a credit toward the purchase price of the product for which redemption is being made. 
     FIG. 6 is a flowchart showing the steps for processing a transaction according to the teachings of the present invention. At step  602 , the point of sale terminal and read/write unit are initialized. Next, at step  604 , a card is inserted into the read/write unit. Next, at step  606 , the card is checked for authenticity. Next, at step  608 , the authenticity of the card is evaluated, for example, by checking that an identification number stored as a reference fingerprint is valid. If the authenticity check fails, control is transferred to step  610  and the number of validation attempts is checked to determine whether the number of attempts has reached a predetermined maximum. If the predetermined maximum has not been reached, control is transferred to step  612 , the number of attempts is incremented and control is returned to step  608 . If the predetermined maximum has been reached, control is transferred to step  614  and the number of attempts is reset, the card is rejected, and the transaction is terminated. 
     If the evaluation of the authentication at step  608  is successful, control is transferred to step  616  and the transaction type is selected. The transaction can be a sales transaction for which points will be awarded, or a transaction for the redemption of points. If the transaction is to be one for which points will be awarded, control is transferred to step  620  and the sale is transacted in the normal manner. After completion of the sale, control is transferred to step  622  and the point of sale terminal sends the sale information to the read/write unit. Next, at step  624 , the read/write unit updates the card with the new point total. To prevent possible forgery, the new point total may be advantageously recorded as a reference fingerprint. Next, at step  628  the read/write unit logs the transaction. Finally, at step  630  the read/write unit prints a receipt showing the transaction details and the updated point total. 
     If the transaction type entered at step  616  is a redemption of points, control is transferred to step  632  and the point total on the card is checked. Next, at step  634 , the point total is displayed and the customer informed of the point total. Next, at step  636 , the transaction is performed as an ordinary sales transaction, to the point at which the amount due is arrived at. Next, at step  638 , the number of points to be redeemed is entered. Next, at step  640 , the point total on the card is checked to determine if the card contains the number of points entered. If the point total on the card is insufficient, control is transferred to step  638  and a new amount entered. Control is then transferred back to step  640 , and the total again checked. When the amount entered is less than or equal to the amount contained on the card, control is transferred to step  642  and the value of the number of points redeemed is transferred to the point of sale terminal as a cash amount to be applied to the sale. The sale transaction is then completed, with the customer supplying additional payment if the number of points redeemed is insufficient to cover the cost of the merchandise purchased. Control is then transferred to step  624 , and the card updated, preferably as a reference fingerprint, the transaction is logged, and a receipt is printed, as described above. 
     FIG. 7 is a flowchart showing the steps of receiving and processing information from a plurality of read/write units forming part of a multi-merchant loyalty system according to the teachings of the present invention. Control begins at step  701 , where the desired function is chosen. Control is then transferred to the chosen step, and, after the execution of the chosen step is completed, back to step  701 , where the next desired step is chosen. 
     At step  702 , each of the transaction logs of each of the read/write units is received. At step  704 , the information in each of the transaction logs is appropriately allocated to an account for each merchant, showing the number and value of points awarded and redeemed, as well as other information which is desired to be tracked. At step  706 , information from the transaction logs is allocated to an activity account for each customer, showing points earned and redeemed during a period, purchased preferences, and other desired information. Customer activity information can be filtered for the purpose of determining target audiences for marketing information and special offers. 
     At step  708 , merchant accounts for participants in shared point programs are reconciled, with point issuances and redemptions offset between different merchants, and payments between merchants being allocated for any imbalances. 
     At step  710 , a periodic statement is generated and distributed to each merchant, showing point activity and other desired information. 
     The steps illustrated by the flowchart in FIG. 7 need not occur sequentially; rather, each step can be executed as desired. Receipt of the transaction logs preferably occurs at least daily, and generation and distribution of the merchant statements typically occurs monthly, but each step can be executed at whatever frequency, and in whichever order, is desired. 
     While the present invention is disclosed in the context of a presently preferred embodiment, it will be recognized that a wide variety of implementations may be employed by persons of ordinary skill in the art consistent with the above discussion and the claims which follow below. By way of example, cards, such as card  102  may be used for customer identification in conjunction with check cashing. Customer profile information may be stored on the cards. The cards may be suitably utilized as an electronic purse to store value, preferably stored as a reference fingerprint, which is then utilized to make purchases. Also, as previously noted, the present invention is widely applicable in contexts such as Pachinko, gaming, gambling, off track betting, lotteries and the like, as well as a host of other contexts in which cards and online card readers, or SMARTCARD® systems are presently used.