Registers – Systems controlled by data bearing records – Credit or identification card systems
Patent
1992-07-08
1994-09-27
Pitts, Harold
Registers
Systems controlled by data bearing records
Credit or identification card systems
235492, G06K 500
Patent
active
053509072
DESCRIPTION:
BRIEF SUMMARY
TECHNICAL FIELD
The present invention relates to apparatus and systems for cooperation with credit cards and the like. In the present context the term credit card is intended to cover all forms of information carriers which are portable and which can receive and give off information.
PRIOR ART
Nowadays various forms of identity and credit cards are generally used, most of them including, besides visually readable information such as the card holder's name etc., some form of information carrier, which could be read by electronic means. The information carrier usually comprises a tape of magnetic material into which a signal code is introduced. The code is readable for identification purposes by electromagnetic means and electronic apparatus connected thereto. An example is so called "Bankomat.TM." or ATM (Automatic Teller Machine) cards and card reading machines associated therewith.
There are also credit cards and identification documents today which include electronic circuits, so called chips, which in turn include memory and signal processing circuits. These chips are provided with means for receiving and emitting signals from and to outside transmission means. Consequently, by means of this technique information can be stored in the memory of the chip circuits, to be utilized in various ways. Among the public such credit cards are now called "smart cards" or IC-cards. The advantage of using a smart card for applications such as credit cards is that direct information of the holder's credit worthiness can be obtained at the point of use, provided that the point of use concerned is connected to a banking centre, e.g. via modems and telecommunication networks. For example, such communication can be used to establish that the purchase sum at any time of buying is automatically deducted from the credit amount available, and that the new available credit amount is stored in the memory of the chip circuit to be used at the next point of purchase.
A credit card used in this way will of course provide excellent security to shopkeepers as well as to the bank, inasmuch as control functions can be established in a very reliable way. The level of security in the present connection is thus very high. However, a considerable disadvantage of a system as disclosed above is the fact that each point of sale has to be equipped with a terminal connected by modems to a banking centre, e.g. by way of telecommunication circuits or leased circuits. As a matter of course it will be very costly for a department store to install a terminal at every cash desk. Also, the loading of the telecommunication network will also be considerable. Such systems have been tested in practice and have been found to be secure but they are, as stated, expensive to install as well as to run. The credit cards proper, however, are comparatively cheap to produce, even if they are provided with a chip.
In today's situation a credit card can be used repeatedly once over if an unauthorized person gets control of it. The period of time before one manages to freeze a card can vary from a few hours to a week, which of course is very unfavorable to the card holder. The economical loads on card holders as well as on account card enterprises are considerable. Therefore, much would be gained if a level of security could be attained in everyday handling which approaches that exhibited by the smart credit cards described above. It is particularly essential to prevent unauthorized persons from using another person's credit card.
SUMMARY OF THE INVENTION
The present invention is based upon a novel idea, namely, that a credit card or similar information carrier invalid for payment as long as the card holder does not take special measures to bring the card into a state of validity. According to the invention the card holder has at his disposal a code transmission apparatus which can communicate with a memory circuit included in the credit card or the like in order to transfer a specific validity code to render the card serviceable. A credit card brought into t
REFERENCES:
patent: 5017766 (1991-05-01), Tamada et al.
patent: 5053608 (1991-10-01), Senanayake
patent: 5086216 (1992-02-01), Mollet et al.
Pitts Harold
Utvecklings AB Jonic
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