Source: http://www.google.com/patents/US8108307?ie=ISO-8859-1&dq=6978253
Timestamp: 2014-04-21 07:31:48
Document Index: 669226017

Matched Legal Cases: ['Application No. 60', 'Application No. 60', 'art/9704', 'art1', 'art/9801', 'art14', 'art/9606', 'art4']

Patent US8108307 - System, method and apparatus for value exchange utilizing value-storing ... - Google PatentsSearch Images Maps Play YouTube News Gmail Drive More »Sign inAdvanced Patent SearchPatentsA system, method and apparatus for exchanging value using a smart card in a financial transaction is disclosed. The system includes a smart card having a contact interface and a contactless interface interactive with a closed purse application and an open purse application controlled by a microprocessor....http://www.google.com/patents/US8108307?utm_source=gb-gplus-sharePatent US8108307 - System, method and apparatus for value exchange utilizing value-storing applicationsAdvanced Patent SearchPublication numberUS8108307 B1Publication typeGrantApplication numberUS 09/276,823Publication dateJan 31, 2012Filing dateMar 26, 1999Priority dateMar 30, 1998Also published asEP1028398A2, EP1028398A3Publication number09276823, 276823, US 8108307 B1, US 8108307B1, US-B1-8108307, US8108307 B1, US8108307B1InventorsJoseph C. Kawan, Ramiro Munoz, Mark KogenOriginal AssigneeCiticorp Development Center, Inc.Export CitationBiBTeX, EndNote, RefManPatent Citations (41), Non-Patent Citations (26), Referenced by (6), Classifications (11), Legal Events (1) External Links: USPTO, USPTO Assignment, EspacenetSystem, method and apparatus for value exchange utilizing value-storing applicationsUS 8108307 B1Abstract A system, method and apparatus for exchanging value using a smart card in a financial transaction is disclosed. The system includes a smart card having a contact interface and a contactless interface interactive with a closed purse application and an open purse application controlled by a microprocessor. The closed purse application contains application-specific value, while the open purse contains general value. The application-specific value and general value are each compatible within the system of the invention to perform and settle the financial transaction. The financial transaction may include the smart card communicating with a load terminal or a transaction terminal to add or change the amount of value on the smart card. Further, the present invention include auto-load functionality for adding an amount of value to the smart card. Finally, applications such as a transportation application and a loyalty application are described.
CROSS-REFERENCE TO RELATED APPLICATIONS This application claims the benefit of Provisional Application No. 60/079,802, filed Mar. 30, 1998 and Provisional Application No. 60/119,230, filed Feb. 9, 1999.
FIELD OF THE INVENTION The present invention relates to financial transaction systems, and more particularly, to a system and method for transferring value using compatible, electronic value-storing applications.
BACKGROUND OF THE INVENTION The use of smart cards is increasing in today's consumer-oriented society. A smart card or integrated chip (IC) card is a transaction card, similar in size and appearance to credit card, that contains a microcomputer chip. Traditional smart cards have a contact interface, such as a metallic contact pad, that is used to communicate between the microcomputer on the card and a reader/writer device (RWD) into which the card is inserted. Thus, traditional smart cards require a physical connection to a RWD in order to be utilized.
Also, current smart cards typically utilize an open purse application to transfer and store value. Examples of open purse applications are VISA CASH� and Mondex� payment systems. An open purse application allows value to be transferred to and from the smart card, making utilization of the smart card for a transaction very similar to utilizing cash. For example, when using a smart card open purse application to make a purchase, the card holder simply inserts the card into a RWD. The RWD allows the card to communicate with a merchant terminal, for example. The terminal and card authenticate each other, then the transaction amount is debited from the card and credited to the terminal. In turn, the terminal forwards the transaction information to a settlement system, which properly credits the merchant account and debits the pool of money associated with transferring the value onto the smart card. Unlike a credit card transaction, for example, the value transfer occurs in a matter of seconds and no receipt needs to be signed. Hence, the value stored in the open purse of a smart card is like cash, because it is generic value and can be used at any location that supports the particular open purse application. In the United States, for example, the VISA CASH� open purse application and settlement system is being accepted by an ever-increasing number of merchants. An open purse application, therefore, becomes more open and the value becomes more generic and like cash with the increased acceptance and use of the application. Thus, open purse applications can be very powerful methods of transferring value, giving a smart card the ability to look and act like cash.
Open purse applications can be risky, however, because of their similarity to cash. The load key, or the encrypted data utilized to authorize and load value into the open purse application on a smart card, must be closely guarded. Typically, load keys are kept on host system computers or at highly-secure remote terminals or load devices (e.g. in the Mondex� system). If the load key were to be stolen, then the owner of the load key, such as a financial institution, has a great exposure to fraud as the stolen load key could be used to improperly add value to a smart card. The improperly added value on the smart card could then be used to perform transactions, just like cash. Thus, it may be desirable to have a closed purse application that limits the ability to load and/or unload value on the smart card.
SUMMARY OF THE INVENTION According to the present invention, a system for performing a financial transaction to exchange value comprises a first electronic application for storing application-specific value and a second electronic application for storing general value, where the application-specific value and the general value are each compatible within the system to perform the financial transaction. The compatibility is achieved by formatting the financial transaction to be compatible with a common settlement system, such as a settlement system associated with the second electronic purse. The financial transaction may be performed utilizing a transaction application, which may be part of or associated with the first electronic application. The financial transaction may involve the exchange of all or a portion of either the application-specific value or the general value, or both. Further, the invention additionally comprises an auto-load application that adds new application-specific or general value to the first electronic application or second electronic application, respectively. The auto-load application exchanges general value for application-specific value, or it exchanges value for a debit to an associated, outside account. Finally, the system also includes at least one communication interface for interacting with the first and second electronic applications. The communication interface may include a contact interface, a contactless interface or both.
DETAILED DESCRIPTION OF THE INVENTION According to a preferred embodiment of the present invention, referring to FIGS. 1 and 2, a system 10 for exchanging value comprises a dual interface smart card 12 having a contact interface 14 and a contactless interface 16 in communication with an external contact reader/writer device (RWD) 18 and an external contactless reader/writer device (RWD) 20, which may each be in communication with back end computer systems 22. Both contact interface 14 and contactless interface 16 are interactive with dual interface microprocessor 24, which contains the functionality to communicate with each interface. Dual interface microprocessor 24 further comprises memory 26 for storing data and application programs. Memory 26 comprises application programs such as an open purse application 28 and a closed purse application 30 that allow for controlling an exchange of value through either contact interface 14 or contactless interface 16. Open purse application 28 enables the exchange of general value 32, while closed purse application 30 enables the exchange of application-specific value 34. Thus, dual interface card 12 utilizes dual interface microprocessor 24 to control the exchange of value from open purse 28 and closed purse 30 through contact interface 14 and contactless interface 16.
The term �general value� comprises value that is generally equivalent to cash in that the general value is readily accepted in a plurality of financial transactions. The term �application-specific value� comprises value that has limited acceptance, typically only for transactions associated with a specific application loaded onto the smart card. General value may be accessed by a specific application program and converted into application-specific value. Similarly, application-specific value may be able to be converted to general value. Alternatively, certain applications may limit or prohibit the conversion of their associated application-specific value to general value, such as entitlement program applications. Thus, while general value and application-specific value may be readily exchanged, the specific application program may provide specific rules governing the limits of the exchange.
Also, the term �purse� as used in this application refers to an application programmed within the memory of the smart card that stores and transfers value. There may be a plurality of purses within each smart card.
Dual interface microprocessor 24, in combination with contact interface 14 and contactless interface 16, comprise interface circuitry that advantageously provides smart card 12 with an integrated contact and contactless functionality. Dual interface microprocessor 24 further includes a central processing unit (CPU) 38 that manages data and runs application programs, security logic, sensors and interface management applications 40, and a co-processor 42 that provides additional processing capability. For example, co-processor 42 may be a Triple-DES (Data Encryption Standard), a crypto-public key (PK) co-processor, or other similar encryption co-processor that provides security for communications utilizing both contact interface 14 and contactless interface 16. Also, memory 26 may comprise memory units in the form of random-access memory (RAM) 44, read-only memory (ROM) 46 and electrically-erasable programmable read-only memory (EEPROM) 48. CPU 38 and memory 26 are capable of respectively processing and storing data and signals representative of algorithms, such as software programs. A suitable dual interface microprocessor 24 having the above-mentioned components is the MIFARE� PRO microprocessor manufactured by Philips Semiconductors. Also, a similar dual interface chip is available from Siemens. Dual interface microprocessor 24 runs on 5 volts or less of electricity, which may be provided through external sources, as is described below.
Open purse application 28 is an application that stores general value 32 that may be accessed by other applications to pay for all types of goods and services. Use of open purse application 28 is extremely flexible, as it may be accessed through either contact interface 14 or contactless interface 16, utilizing microprocessor 24 and secured by encryption capabilities performed by co-processor 42. Communications with open purse application 28 are in a common format, as is explained below, thereby allowing multiple external devices and applications to perform transactions utilizing the open purse application. Examples of a suitable open purse application 28 include VISA CASH� payments, Mondex� payment systems, and other similar applications that provide for the storage and exchange of general value 32.
The loading of the pass or number of free rides may be accomplished by the associated program within the terminal with which the card is interacting. For example, the terminal may read the card, accessing a loyalty register that maintains transaction information related to the card usage for the particular loyalty program. The terminal program may then comprise a mechanism to evaluate the dates and the transaction data to determine if any entitlement has been earned. The terminal program may then load the entitlement onto the card into the proper application. Alternatively, when an entitlement has been earned, the loyalty program may set a bit on the card that indicates a certain �free ride� time period or a certain number of free rides. By centrally locating the evaluation mechanism in the terminal or with a host computer, the parameters for various programs can be quickly and easily changed.
Another advantageous feature of the present invention is the integration of open purse application 28 and closed purse application 30 into a single system. As mentioned above, this is accomplished by structuring closed purse application 30 to be compatible with open purse application 28. Compatibility is enabled by structuring the data and transaction information for a particular closed purse application 30 in a format compatible with the data and transaction information utilized by the particular open purse application 28 being utilized. An identification number associated with the card is preferably used to properly direct the closed purse application transaction information through the established back end computer systems 22 utilized by the particular open purse system application 28. In multi-application environments the reference numbers associated with an individual card can become quite complex. The card itself, or more specifically, the chip silicon has an embedded serial number. This is useful for identifying that piece of silicon. However, each application that is loaded onto the card can also have an identification number attached to it. This is necessary in the case of transaction-based applications, such as in the Visa Cash� system where the identification number is akin to an account number, such that the devices and backend systems can specifically identify and track each instance of the product that has been issued. Visa breaks up this number into two parts, a BIN which identifies the issuer and a specific program of that issuer and a sequence number which is the individual instance of that product. Therefore, the identification number may include the BIN number and the application instance number, for example. As an open purse application 28 like VISA CASH� gains national and worldwide acceptance, this compatible structure between open and closed purses powerfully enables smart card 12 of the present invention to be utilized for virtually all transactions a cardholder may wish to perform. Thus, the value-exchange transactions, including those involving application-specific value, preferably are managed by the open purse application transaction system.
Referring to FIG. 4, one embodiment of a high level process flow according to the present invention comprises back end computer systems 22 (not shown) as part of a load/purchase transaction. Back end computer systems 22 may comprise a settlement system 92 in a transaction network 84 for properly settling transactions performed utilizing open purse application 28 and closed purse application 30 on smart card 12. Transaction network 84 comprises interface and/or connecting networks for performing value exchange transactions. Suitable examples of transaction network 84 comprise networks managed by VISA�, such as the PLUS� network for ATM transactions and VISANET� network for point-of-sale (POS) transactions.
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