Registers – Systems controlled by data bearing records – Time analysis
Reexamination Certificate
1998-07-02
2003-01-28
Lee, Michael G. (Department: 2876)
Registers
Systems controlled by data bearing records
Time analysis
C235S375000, C235S379000, C235S487000, C902S025000, C902S026000, C902S027000, C705S064000
Reexamination Certificate
active
06510983
ABSTRACT:
FIELD OF THE INVENTION
The present invention relates to financial transaction cards, and more particularly, to a system and method for transferring value on a transaction card from an advanced technology memory on the card to a magnetic stripe memory on the card.
BACKGROUND
It has been suggested that the extensive use of transaction cards having magnetic stripe memories, such as credit, debit and stored value cards, is inhibiting the growth of more advanced and powerful cards. With the latest technological advances transaction cards having integrated circuit memories, called smart cards, optical memories and thin film semi-conductor memories give consumers superior functionality and security. Yet, the large installed base of devices that only interact with magnetic stripe cards provides a huge obstacle to the commercial success of the lees technology transaction cards. Thus, a system is desired for providing a single transaction card that can interact with the installed base of devices dedicated to magnetic stripe cards, and also provide the advanced functionality and security of the latest technology memories.
Although the use of magnetic stripe cards is common, their utility is confined by their relatively limited memory capability. The magnetic stripe on a typical card comprises 3 tracks where data can be stored and accessed. The standards for determining location and types of data to be stored on the tracks are identified in standards issued by the International Standards Organization (ISO). Generally, certain industry information must be maintained on certain portions of the tracks, while other portions of the tracks may have open data fields. Standard information, such as the cardholder's name and account number, and the issuing banks routing number, must be stored on the tracks.
For example, when a magnetic stripe card is swiped in an Automated Teller Machine (ATM) transaction, the on-line ATM reads the account number information on the card and prompts the user to verify their identity by entering a Personal Identification Number (PIN). Also, the ATM prompts the user to identify the transaction, such as to make a checking withdrawal. Typically, the ATM then accesses the appropriate account in the on-line system and insures that the entered PIN matches the account PIN that is stored on-line. Further, the account balance is checked to insure that the transaction is not in excess of the account balance. When the PIN's match and the account balance is sufficient, the ATM allows a transaction to proceed and the on-line account information is adjusted accordingly. This is just one example of how an ATM transaction may proceed, but other steps or a variation of the above steps may occur. Thus, the use of a transaction card in an ATM allows access to an on-line account that may be utilized to access funds to be dispensed by the ATM as cash.
After the magnetic stripe card is initialized with the customer's name and account number, typically no further data is recorded onto the magnetic stripe on the card. The information contained in the stripe is just read for identification purposes so that the on-line system can be accessed. Thus, magnetic stripe cards are limited to being used to access accounts available only through on-line systems.
In contrast, cards having advanced technology memories are highly functional and the data may be read from and written to the memories. Suitable advanced technology memories include integrated circuit (IC) memories, also know as smart cards. Smart cards are similar to magnetic stripe cards in size and appearance, but instead of having a magnetic stripe along the back side, they have a microcomputer chip embedded within the card. Current technology integrated circuit chips give smart cards the ability to store about 16 kilobytes of E-squared memory. Because the advanced technology memories have computer functionality, they have the ability to store and run programs that can manipulate data. One advantageous feature of advanced technology memories such as smart cards is their ability to provide encryption technology that may be used to encode data to insure the security of the data. Thus, the advanced technology memories provide functional and security advantages not present in a magnetic stripe memory.
As mentioned above, however, many consumers may not be able to take advantage of the advanced technology memories because the businesses in their area may not provide devices capable of reading and writing to the advanced technology memories on transaction cards. In this situation, a consumer may be reluctant to obtain a transaction card with advanced functionality and security because they have limited usage in their area. Although local businesses may not provide devices for using cards with advanced technology memories, however, a consumer may still desire to obtain such a card for their own personal use, such as on a networked computer. For example, a consumer may use a transaction card with a smart card memory in conjunction with a smart card reader/writer and a personal computer or personal digital assistant in communication with a merchant on the Internet. The smart card allows the consumer to make a secure electronic transaction over the Internet. Similarly, the consumer may utilize such a set-up to communicate with their bank and transfer money into an electronic purse application within the smart card. Thus, even though advanced technology card usage is not accepted by local businesses, consumers may desire to utilize advanced technology cards for other reasons.
Further, with the internationalization of business, many communities in remote parts of the world are exposed to current financial devices, like credit cards, debit cards, and smart cards, but they may not be able to take advantage of them because they do not have the infrastructure to immediately support every new advance in technology. Despite this difficulty, it is desirable to bring these areas up to speed so that outside business can effectively deal with these communities. Further, the consumers in these communities desire to conduct transactions utilizing the latest devices. Thus, a single card with advanced technology memory that can interact with current systems is desired.
Therefore, a solution to these problems is desired to allow consumers to utilize a transaction card having advanced technology memories and be able to utilize the functional and security features of the advanced technology memories within the current installed base of devices that only read the card's magnetic stripe.
SUMMARY OF THE INVENTION
The present invention deals with leveraging the use of transaction cards having advanced technology memory capabilities, such as integrated circuit (IC) or chip memory, i.e. “smart cards,” optical stripe memory and thin film semi-conductor memory, within the established network that exclusively services magnetic stripe cards. The network includes automated teller machines (ATM's), customer access terminals (CAT's), the Internet, merchant terminals and their associated funds transfer communications network that allows a transaction card holder to obtain cash or transfer value at numerous locations worldwide. The present invention provides a card that combines the magnetic stripe memory with one or a combination of the advanced technology memories and allows the memories to cooperatively interact. The cooperative interaction allows at least a portion of the capabilities of the advanced technology memories to be utilized through the magnetic stripe memory. In particular, the present invention provides a system and method for securely transferring value on a transaction card from an electronic purse within an advanced technology memory, such as the integrated circuit memory, to the magnetic stripe. Thus, the present invention provides a system and method for enabling the utilization of the advanced technology memory capabilities of the transaction card in the current network of devices that exclusively serve magnetic stripe memory card
Horowitz Edward
Kawan Joseph C.
Lichstein Henry
Citicorp Development Center Inc.
Fureman Jared J.
Kilpatrick & Stockton LLP
Lee Michael G.
Marcou George T.
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