Patent Publication Number: US-6991155-B2

Title: Transaction card system having security against unauthorized usage

Description:
PRIORITY CLAIM 
   This application claims priority to Provisional Application No. 60/333,035, filed Nov. 19, 2001, which is hereby incorporated by reference. 

   BACKGROUND OF THE INVENTION 
   The present invention relates generally to the art of transaction cards. More particularly, the invention relates to an improved transaction card system having security features for preventing unauthorized usage. 
   Transaction cards, such as credit cards, debit cards, access cards and the like, have gained widespread use. While transaction cards provide convenience for users, fraudulent use is also prevalent. Fraudulent use may occur through postal theft, counterfeiting and through stolen cards. It is believed that credit card companies suffer losses due to fraud each year in the hundreds of millions of dollars. These losses must ultimately be borne by the consumer in the form of higher prices. 
   While there have been attempts to prevent fraudulent use of transaction cards, a further need exists for a novel transaction card system. 
   SUMMARY OF THE INVENTION 
   The present invention recognizes and addresses various drawbacks of prior art constructions and methods. Accordingly, it is an object of the present invention to provide an improved transaction card system having security features for preventing unauthorized usage. 
   The present invention provides a system having a host having information regarding at least one transaction card account. The host functions to transfer card data to a drone card carried within the host. The host includes a biometric sensor or other suitable identification means for authentication of the user prior to use of the drone card. Once the user is authenticated, the drone card provides a readable identifier that corresponds to a transaction card account selected by the user. It should be understood by one of ordinary skill in the art that the functions of host could alternatively be integrated into the drone card. 
   Other objects, features and aspects of the present invention are achieved by various combinations and subcombinations of the disclosed elements, which are discussed in greater detail below. 

   
     BRIEF DESCRIPTION OF THE DRAWINGS 
     A full and enabling disclosure of the present invention, including the best mode thereof, to one of ordinary skill in the art, is set forth more particularly in the remainder of the specification, including reference to the accompanying drawings, in which: 
       FIG. 1A  is a front perspective view of a host and inserted drone card with the host having a portion partially cut away to reveal various internal components therein according to an embodiment of the present invention; 
       FIG. 1B  is a perspective view of the host and drone card of  FIG. 1A  showing removal of the drone card from the host; 
       FIG. 1C  is a side view of the host along line  1 C— 1 C of  FIG. 1A ; 
       FIG. 1D  is a cross sectional view of a portion of the host along line  1 D— 1 D of  FIG. 1A ; 
       FIG. 2  is a diagrammatic representation of the various functional components of the host of  FIGS. 1A-C ; 
       FIG. 3A  is a front view of a drone card such as may be used with the host of  FIGS. 1A-C ; 
       FIG. 3B  is a rear view of the drone card of  FIG. 3A ; 
       FIG. 4  is a diagrammatic representation of the various functional components of the drone card of  FIGS. 3A and 3B ; 
       FIG. 5  is a diagrammatic representation of an enroller interfacing with a host according to an embodiment of the present invention; 
       FIG. 6  is a flow chart illustrating the authentication process; 
       FIG. 7  is a perspective view of a drone card being scanned by a credit card reader of the type currently in widespread use; 
       FIG. 8  is a table showing transaction attempts for a drone card; 
       FIG. 9A  is a front view of an encoded card according to an alternative embodiment; 
       FIG. 9B  is a rear view of the encoded card of  FIG. 9A ; 
       FIG. 9C  is a cross sectional view of a portion of the card along line  9 C— 9 C of  FIG. 9A ; 
       FIG. 10  is a perspective view of an enroller according to an alternative embodiment; 
       FIG. 11  is a perspective view of the enroller of  FIG. 10  received within the host; and 
       FIG. 12  is a flow chart showing the enrollment process according to the embodiment of FIGS.  10  and  11 . 
   

   Repeat use of reference characters in the present specification and drawings is intended to represent same or analogous features or elements of the invention. 
   DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS 
   Reference is made in detail to presently preferred embodiments of the invention, one or more examples of which are illustrated in the accompanying drawings. Each example is provided by way of explanation of the invention, not limitation of the invention. In fact, it will be apparent to those skilled in the art that modifications and variations can by made in the present invention without departing from the scope or spirit thereof. For example, features illustrated or described as part of one embodiment may be used on another embodiment to yield a still further embodiment. 
   In one embodiment, the present invention provides a host that houses information regarding one or more card accounts. A card account includes but is not limited to credit cards, debit cards, library cards, social security cards, Medicare cards, phone cards, access cards, discount cards, and any other card containing identification information relating to a specific person or group. A drone card carried within the host can be configured to correspond to a card account. Often, the host may be configured to allow the user to select a particular card account from among several. An enroller operates to program information regarding various card accounts on the host for individual or group usage. 
   Once initialized by the enroller, the host contains user information required for authentication as well as data relating to the card accounts. To use a specific card account stored on the host, the user is first authenticated using the host&#39;s authentication sensor. Upon selecting the desired card account, the host uploads data relating to the selected card account onto the drone card. The drone card may contain an output circuit that generates a readable identifier (i.e. magnetic signal, bar code, etc.) corresponding to the selected card account. Unless the drone card is used within a certain time period, it will preferably become disabled and need additional authentication to be used. Likewise, the drone card may become disabled upon completion of a transaction. 
     FIGS. 1A ,  1 B and  1 C illustrate a host  10  carrying a drone card  100  in accordance with the present invention. Host  10  has a front face  12  and slot  14  for receiving drone card  100 . Preferably, host  10  is formed from a relatively rigid material and is no thicker than required to receive drone card  100  and house the requisite electronics. Often, host  10  will have a thickness no greater than about three times that of a standard credit card. While slot  14  is shown on a short side of host  10 , it should be understood that slot  14  could be located along any side of host  10 . For example, it may be desirable in some cases to locate slot  10  along a long edge of host  10  in order to make drone card  100  more easily removable by either left or right handed people. A cut-out portion  16  proximate to slot  14  allows access to drone card  100  by a user&#39;s finger to facilitate its removal from host  10 . Host  10  could also be integrated into other electronic devices, such as cellular phones or Personal Digital Assistants (PDAs). 
   The interior of host  10  may contain an appropriate anti-tampering mechanism to prevent someone from attempting to obtain the account information stored in the host. For example, the illustrated embodiment of host  10  includes a fine mesh  18  of wires just below its surface. The wires of mesh  18  may be serially connected so that any break in the mesh will remove all data stored in host  10 . It will be appreciated that attempts to open host  10  will result in mesh breakage. 
   Host  10  preferably contains an integrally mounted authentication sensor  20  for validating the identification of the user. Authentication sensor  20  is preferably a suitable biometric sensor, such as a fingerprint sensor. One fingerprint sensor that may be used for this purpose is known as FINGERLOC™ and is sold by AuthenTec, Inc. of Melbourne, Fla. It should be understood that authentication sensor  20  could be any other suitable means for validating the identification of the user, such as a personal identification number (PIN) keypad. 
   In the illustrated embodiment, host  10  contains a display  30  that allows a user to view information relating to various card accounts stored on host  10 . While display  30  is preferably a character liquid crystal display (“LCD”), any other suitable display could be used. Methods for driving a LCD with particular characters are known in the art. 
   A scroll button  40  mounted on front face  12  of host  10  allows the user to scroll through the names of the various card accounts stored on host  10  to which the user has access. As the user scrolls through the names of the card accounts, each can be shown on display  30 . Once the user determines a specific card account to be used, the enter button  50  is used to select the desired card account. Information corresponding with the selected card account is then uploaded along with a security code to drone card  100  as discussed in detail below. Information regarding a particular card account can also be viewed on display  30  by selecting display button  60 . It should be appreciated that display scroll button  40 , enter button  50  and display button  60  could be formed as a slide switch or other user input device. 
   Host  10  contains an interface  70  for downloading user data from enroller  200  ( FIG. 5 ) and uploading card data to drone card  100 . Card data includes data corresponding to a specific card account while user data contains information required to validate the user, such as a fingerprint image, and card data for each card account associated with the user. In light of the numerous devices and techniques for exchanging data, the interface could be implemented in a variety of ways, such as using electrical contacts, infrared communications or laser communications. If only a single card account is intended to be transferred to drone card  100 , host  10  could permanently write account data on drone card  100 . With respect to an electric contact interface, host  10  contains internal electric contacts  72  capable of interfacing with electric contacts on enroller  200  and drone card  100 . Enroller  200  preferably contains a card-like connector that can inserted into slot  14  for providing the necessary data to host  10 . 
   Referring now to  FIG. 2 , host  10  has an internal microprocessor  80  in electrical communication with on-board memory  82 . Memory  82 , which is preferably a suitable EEPROM, functions to store card data, user data and security codes (which will be described more fully below). A power source  90 , preferably a battery, provides electrical power to microprocessor  80  and memory  82 . Preferably an ultra-thin battery will be utilized for this purpose, such as the batteries sold by Power Paper Ltd. of Kibbutz Einat, Israel. Power source  90  may be rechargeable and receive supplemental charging using solar cell  92 . An optional indicator light (not shown) may also indicate when the battery is low on power. 
   Means may be optionally provided to magnify or amplify the ambient light available for solar cell  92 . For example, in one embodiment an optical prism  93  may be molded into front face  12  of host  10  so as to overlie solar cell  92  as shown in FIG.  1 D. The configuration and selection of the appropriate light amplifier should be understood by one of ordinary skill in the art. In order to increase battery life, microprocessor  80  preferably remains in “sleep” mode until activated by authentication sensor  20  or scroll button  40 . The term “sleep” mode means a low-power state maintained by the microprocessor until interrupted by input. 
   Authentication sensor  20 , scroll button  40 , enter button  50 , and display button  60  provide input data to microprocessor  80 . Interface  70  also provides input data to microprocessor  80  as well as receiving output data. Microprocessor  80  functions responsively to input data. 
   Microprocessor  80  responds to the input data from authentication sensor  20  by comparing the input data with the user data stored in memory  82  to determine whether the input data represents a valid user. Multiple users may be associated with a host; consequently, the user data for the host may correspond to more than one person. For example, if authentication sensor  20  were a fingerprint sensor, the fingerprints for each person associated with host  10  would provide access to selected card accounts stored on host  10 . 
   Referring to  FIG. 6 , the first step in authenticating a user is to read the user input data from authentication sensor  20 , such as by scanning the user&#39;s fingerprint. Next, the host will compare the data scanned by authentication sensor  20  with user data stored in the memory of the host. If the scanned data does not match the user data stored in memory, the user will not be allowed access to card accounts. Alternatively, if the scanned data matches the user data stored in memory, the user will be provided access to all card accounts to which that user has access. 
   Not every user associated with the host can necessarily access each card account stored on the host. The host can provide multiple levels of security to restrict certain users from gaining access to certain card accounts. For example, consider a host containing a fingerprint sensor for its authentication sensor that has card data stored in memory for “Card A” (e.g. VISA) and “Card B” (e.g. American Express) along with user data for “User A” and “User B.” Therefore, both “User A” and “User B” can activate the host using their fingerprints. Based upon the user data in this example, “User A” is associated with and can access “Card A,” but not “Card B.” When “User A” scrolls through the available cards on the host, only “Card A” is displayed. The user data, however, associates “User B” with both “Card A” and “Card B”. As a result, “User B” can view and use both “Card A” and “Card B.” 
   Upon authentication, microprocessor  80  responds to the input from scroll button  40  by driving display  30  with the identification of the next card account in the user data associated with the user. By continuing to select the scroll button, the user could review the entire list of card accounts stored on host  10  to which the user has access. In response to the input from display button  60 , microprocessor  80  displays the card data (e.g. account number) for the selected card account in conjunction with a security code. Microprocessor  80  responds to the input from enter button  50  by uploading card data in conjunction with a security code to drone card  100  via interface  70 . Optionally, drone card  100  could have memory containing card data so that only the security code is uploaded to drone card  100 . 
   A security code is a unique code associated with a card account and transaction. Although the card account remains constant, the security code is typically different for each transaction. If someone attempts to reuse a security code, the transaction will be denied as unauthorized. For example, if the selected card account is a telephone card, the telephone company will not authorize charges unless both the card account number and the expected security code is provided. If a third party intercepts the card number and a prior security code for later use, the telephone company will deny the charges. This authorization process is illustrated in the table of FIG.  8 . 
   The security code is preferably a 4-digit alphanumeric code generated based upon an algorithm residing on the host. For example, the security code could randomly change based upon an internal clock residing on host  10 . The security code could change during a certain time interval, such as 20 seconds, to provide for increased security. The central computer that validates the security code would be synchronized with the host to recognize the security code. Alternatively, multiple security codes could be stored in the memory of the host. In order to validate the security code, the reader performing the transaction provides the current security code to the central computer of the issuing entity, which then checks for a match with the expected code. This computer is programmed to expect a particular security code in the next transaction to be performed. 
   As can be seen in  FIGS. 3A and 3B , drone card  100  preferably has a similar size and thickness of a standard credit card. Unlike a credit card that contains an account number visible to anyone viewing the credit card, however, drone card  100  preferably contains no visible information, except optionally the name of the user or group associated with the drone card. Optionally, a photograph  102  of the authorized user is provided on host  12  or drone card  100 . Photograph  102  may be a permanent, static photograph of the authorized user or could be an electronic display that temporarily displays an electronic photograph of an authorized user. If an electronic photograph is used, the photograph corresponding with the user authorized by host  100  will be displayed. Accordingly, multiple photographs of users could be stored on host  10  with the appropriate photograph being transferred to drone card  100  and displayed based upon the particular user that is authorized. 
   All information needed to perform a transaction with drone card  100  is provided at readable identifier  130  when in an active state. In the active state, readable identifier  130  allows user to perform a transaction. At other times, readable identifier  130  will be disabled such that no transactions can be performed. A status indication light  110  may be provided to indicate the state of readable identifier  130 . For example, light  110  may be a green LED which is lighted when readable identifier is active. For visually impaired persons, an audible indicator could be provided to indicate changes in the state of readable identifier  130 . 
   Drone card  100  contains an interface  120  for receiving card data from host  10 . As noted above, since there are numerous devices and techniques for exchanging data, interface  120  could be implemented in a variety of ways, such as using electric contacts, infrared or laser communications. With respect to an electric contact interface, drone card  100  contains electric contacts  122  capable of interfacing with electric contacts  72  on host  10 . 
   Referring now to  FIG. 4 , the internal construction of one preferred embodiment of drone card  100  will be described. In this case, drone card  100  has an internal controller  140  in electrical communication with on-board memory  150 , which is preferably a volatile memory. In this embodiment, drone card  100  has sufficient memory to store card data in conjunction with a security code. A power source  160 , preferably an ultra-thin battery as described above, provides electrical power to controller  140  and memory  150 . Power source  160  may be rechargeable by receiving power from host  10  through galvanic connection, induction or other suitable means. 
   As noted above, drone card  100  contains an interface  120  in electrical communication with controller  140  that transfers card data received from host  10  for storage in memory  150 . As mentioned previously, the art contains numerous techniques for transferring data, such as using electric contacts, laser communications and infrared communications. 
   Controller  140  generates a signal to activate readable identifier  130  based upon card data received from host  10 . Preferably, readable identifier  130  will be in a form that is compatible with existing readers such as conventional card reader  165  shown in FIG.  7 . For example, readable identifier  130  could be a temporary magnetic stripe or a bar code display that is temporarily activated following authentication. 
   To generate a temporary magnetic stripe, the drone card may include an electric matrix to create a magnetic signal corresponding to the card account. For a discussion regarding the generation of a temporary magnetic signal using an electric matrix, see U.S. Pat. No. 6,089,451 to Krause, incorporated herein by reference. 
   Alternatively, readable identifier  130  could be generated using a magnetic powder or other material housed within drone card  100 . Host  10  could change the physical position or configuration of the powder to generate various readable identifiers. For example, the powder could be oriented to produce a temporary magnetic stripe that could be read by a standard card reader. 
   Alternatively, readable identifier  130  could be a LCD or other suitable display for producing a bar code corresponding to the card data. Based upon the card data, host  10  would transfer data sufficient to generate a corresponding bar code to drone card  100  for display on the LCD. The bar code shown on readable identifier  130  will be different for each card account transferred to drone card  100 . 
   Instead of using a magnetic card reader with this type of drone card  100 , a bar code reader could scan the drone card. For example, if the card account residing in the memory of the drone card was a credit card, the bar code corresponding to the credit card would be displayed as the readable identifier. A bar code reader would read the readable identifier and communicate with the necessary credit authorities to charge the appropriate account. 
   As noted above, the state of status indicator light  110  indicates whether the drone card is ready for use. When card data is initially transferred to drone card  100 , status indicator light  110  may become illuminated. In such embodiments, status indicator light  110  will preferably remain illuminated until the readable identifier becomes disabled. Preferably, the readable identifier may become disabled either (1) upon completing a transaction or (2) upon passage of a certain period of time. In many embodiments, controller  140  may simply remove the power to the readable identifier in order to disable the readable identifier. 
   Drone card  100  may contain a transaction sensor  170  that detects when a transaction with the drone card has been attempted. For example, if the drone card is configured to be scanned by a magnetic reader, transaction sensor  170  would detect scanning of the drone card by the magnetic reader. Once the drone card has been scanned, the readable identifier preferably becomes disabled. 
   In another embodiment, drone card  100  may not contain an internal power source. For example, drone card  100  could be configured having a readable identifier, such as a magnetic strip, which does not require continuous power to remain readable. In such embodiments, host  10  would contain an output circuit, such as a magnetic head, which would write card account data to the magnetic strip. As drone card  100  is pulled from host  10 , the magnetic head may write card account data to magnetic strip. A security code may also be written to drone card. A roller or generator within host  10  could be provided to synchronize writing of data onto drone card  100 . 
   Referring now to  FIG. 5 , enroller  200  initializes host  10  with user data and card data (and in some cases security codes). Enroller  200  may be a free-standing device or a peripheral to a general-purpose computer  300 . In this latter case, enroller  200  communicates with computer  30  via an interface  230 . As one skilled in the art will recognize, interface  230  could be implemented using numerous techniques, such as a serial line, wireless communications, or any other suitable data transfer technique. 
   General-purpose computer  300  contains software for gathering user data, including collecting information necessary to authenticate the user. General information about a user, such as name, address, social security number, et cetera, can be keyed into general purpose computer  300 . Enroller  200  contains an authentication sensor  210  for collecting information needed to authenticate the user. For example, if host  10  contains a fingerprint sensor, enroller  200  would collect a fingerprint image from the user. Enroller  200  could have a separate fingerprint sensor to perform this function or use the fingerprint sensor residing on host  10 . Enroller  200  may also contain a sensor  240  for collecting card data for each “card” to be stored on the host. Sensor  240  could be a standard transaction card reader. 
   An interface  220  transfers user data (and possibly security codes) to host  10 . As previously noted, the art contains numerous devices and techniques for transferring data. For example, enroller  200  could communicate using the electrical contacts on the host. 
     FIGS. 10-12  illustrate another embodiment for an enroller  500 . In this embodiment, enroller  500  may have a card-like portion  502  that may be received in slot  14  of host  10 . While it should be appreciated that entire enroller  500  may have the thickness of card-like portion  502 , the portion not received within host  10  may be thicker, such as for purposes of durability. Enroller  500  contains a user input device  506 , such as a keypad, for entering an unlock code into host  10 . Enroller  500  also contains an interface (not shown) to communicate with host  10 . Enroller  500  may interface with host  10  in a similar manner as drone card  100 , such as using electrical contacts, laser communications, infrared communications or other communication means. 
   In this embodiment, a disabled host  10  and drone card  100  may be shipped to a user, along with enroller  500 . In order to enable host  10 , the user must obtain an unlock code from the issuer of host  10  and drone card  100 . Accordingly, the user will communicate with the issuer of host  10  and drone card  100  to receive an unlock code. The user could obtain the unlock code using the issuer&#39;s website, or merely calling the issuer using a telephone. In order to obtain the unlock code, the user will be required to answer a series of security questions to authenticate the user. Once satisfied with the answers to the security questions, the issuer can issue the unlock code to the user. With enroller  500  received within host  10 , the user will enter the unlock code into enroller  500 , which will unlock host  10 . It should be appreciated that a host  10  may be matched to a particular enroller  500 . Moreover, enroller  500  could be designed for a one time use to prevent a single enroller from being used on multiple hosts. 
   With host  10  enabled, the user may proceed with the enrollment process. For example, the user can setup an account using authentication sensor  20  of host  10  and type in information for card accounts into user input device  506  of enroller  100 . Instructions for the enrollment process could be shown on display  30  of host  10 . Additionally, enroller  100  could contain a digital camera means  508  for transferring a digital photograph of a user to host  10 . 
   To use the host, the user must be validated using the authentication sensor. If the authentication sensor is a fingerprint sensor, for example, the fingerprint of the user must be validated to access card accounts stored on the host. Once authenticated, the user can display using the scroll button the identification of all card accounts stored on the host to which that user has access. Once the identification of the desired card account is displayed, the user can display the card data in conjunction with a security code for the selected “card” using the display button. To upload the card data and security code to the drone card, the user selects the enter button. 
   Once the host transfers the card data and security code to the drone card, the status indicator light is illuminated (if the drone card is powered and so equipped). To use the card for a transaction, the user removes the card from the host so that the readable identifier is exposed to a reader. Once the readable identifier is exposed to a reader, the readable identifier becomes preferably disabled and the status indicator light turns off. If a certain period of time passes before the readable identifier is exposed to a reader, the readable identifier also becomes preferably disabled and the status indicator light turns off. The user then returns the drone card to the host until needed for another transaction. It will be appreciated that the display allows the account number and security code to be seen so that transactions can be approved by call-in when necessary, such as where (rarely) the vendor does not have a suitable card reader. 
     FIGS. 9A and 9B  illustrate an alternative embodiment in which the functionality of the host and drone card, previously discussed, is integrated into an encoded card  400 . Encoded card  400  is preferably approximately the same thickness of a standard credit card. 
   Encoded card  400  preferably contains an integrally mounted authentication sensor  410  for validating the identification of the user. Any suitable sensor capable of identifying the user, such as a biometric sensor, could be used. 
   Optionally, a photograph  402  of the authorized user is provided on encoded card  400 . Photograph  402  may be a permanent, static photograph of the authorized user or could be an electronic display that temporarily displays an electronic photograph of an authorized user. If an electronic photograph is used, the photograph corresponding with the authorized user will be displayed. Accordingly, multiple photographs of users could be stored on encoded card  400  with the appropriate photograph being displayed based upon the particular user that is authorized. 
   Encoded card  400  includes a display  420  that allows a user to view information relating to various card accounts stored on encoded card  400 . A scroll button  430  mounted on encoded card  400  allows the user to scroll through the names of the various card accounts stored on encoded card  400  to which the user has access. As the user scrolls through the names of the card accounts, each is shown on display  420 . 
   Once the user determines a specific card account to be used, the enter button  440  is used to select the desired card account. As a result, the readable identifier  480  ( FIG. 9B ) provides a signal, such as a temporary magnetic stripe or a bar code display that is temporarily activated following authentication, that allows completion of a transaction. Upon selecting the desired card account, an indicator light  450  displays the state of the readable identifier. As discussed previously, the indicator light indicates whether the readable identifier is enabled or disabled. Transaction sensor  490  may be provided to detect when a transaction with the encoded card has been attempted. Information regarding a particular card account can also be viewed on display  420  by selecting display button  470 . In order to increase battery life, solar cell  460  may be included to supply power to encoded card  400 . A prism  462  or other suitable means may be provided to increase light available for solar cell  460  as seen in FIG.  9 C. 
   It can thus be seen that the present invention provides a transaction card system having novel properties. While preferred embodiments of the invention have been shown and described, modifications and variations may be made thereto by those of ordinary skill in the art without departing from the spirit and scope of the present invention. In addition, it should be understood that aspects of the various embodiments may be interchanged both in whole or in part. Furthermore, those of ordinary skill in the art will appreciate that the foregoing description is by way of example only, and is not intended to be limitative of the invention.