Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Discount or incentive
Reexamination Certificate
1997-11-03
2001-07-24
Trammell, James P. (Department: 2161)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Discount or incentive
Reexamination Certificate
active
06266647
ABSTRACT:
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's account. The card typically contains no balance information or other information besides the customer'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'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'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'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'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.
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Survivable information storage systems, Wylie et al., pp 1, vol. 33 Issue 8, Aug. 2000.
Elisca Pierre E.
Priest & Goldstein PLLC
Trammell James P.
XTec Incorporated
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