Patent ID: 7725427

Claim:
A method comprising: receiving, at a radio frequency identification (RFID) reader, a recurring billing transaction request from a radio frequency (RF) transaction device, wherein the recurring billing transaction request comprises an encrypted RF transaction device identifier and a recurring billing amount; decrypting, at the RFID reader, the encrypted RF transaction device identifier to produce an RF transaction device identifier; converting, at the RFID reader, the RF transaction device identifier into a magnetic stripe formatted identifier; transmitting the magnetic stripe formatted identifier from the RFID reader via a point of sale (POS) device to a merchant server that includes a processor; requesting, by the RFID reader, a secondary verification in response to a transaction restriction associated with the RF transaction device identifier; receiving, at the RFID reader, the secondary verification; and indicating, at the RFID reader, approval of the recurring billing transaction request in response to the receiving the secondary verification, wherein the recurring billing amount is added to the total recurring billing amount in response to the merchant server approving the recurring billing transaction request, to create an updated total recurring billing amount, and wherein the updated total recurring billing amount is submitted via a network interface to a provider system for payment processing.