Payment system7006998Abstract The invention relates to a payment system utilizing so called "smart cards", which include a microprocessor attached to the card with associated memory circuits for storage of transactions, and which via a terminal can be supplied an available and for the card holder useable amount. According to the invention, a unique card number for said card, together with a PIN code chosen by the user and registered for the card, are transformed by means of the card microprocessor into a unique and preferably encoded user certificate for each individual card, which is used for verification of the authority of the user. Said card includes preferably stored information relating to a maximum level of amount to which the card can be used without stating PIN code, and information relating to the maximum number of such transactions that can be performed without the card communicating and transferring information of executed transactions to the bank holding the account or similar party, such transactions being registered and stored in the memory circuits of the card with a corresponding reduction of available amount. When the card is used in connection with terminals not communicating on-line with account holding bank or similar, transaction data are stored in the memory circuits of the card as well as in the payment terminal, with available amount being correspondingly reduced, and on insertion into a reading terminal directly connected to account holding bank or similar, transfer of in the card stored transaction data takes place for registration/checkup of booked transactions with said bank or similar. Claims What is claimed is: Description This is a nationalization of PCT/SE01/00562 filed Mar. 17, 2001 and published in English. With disregard to type of action, a card can be blocked by a report to the bank with information of the card number, or by a report via a shop terminal, requiring proof of identity and information relating to card number/PIN code. Furthermore, blocking can also be allowed by use of the shop code, combined with proof of identity for the owner, should same forget the PIN code of the card. When blocking has been performed, the card is placed on a list of barred cards, and de-activated when placed in a terminal connected to the system. This involves erasing of software and stored data on the card, which data simultaneously (or later) are transferred to the issuing bank. As previously mentioned, a card should preferably be used within a certain maximum period of time, e.g. one year, and otherwise be blocked against use. The object of such a feature is to prevent that the lists of blocked cards become infinitely long, e.g. filled with lost cards that no longer are being used. Money available on such cards can thereby automatically be transferred to a new card replacing existing card, which is blocked. Blocked and de-activated cards can obviously be reprogrammed by the bank and re-used. The payment system according to the present invention includes a number of basic functions, which briefly can be stated as facilitating the following actions: The above mentioned functions facilitate that a user receives access to his money as "semi-cash", i.e. the card can be used to transform electronic money into bank notes and coins, or for payments. This also applies to known pay, credit and bank cards. The money stored on the card is protected from theft and the party receiving payment knows that when payment is received, the money is available as immediately obtainable cash. The payment system according to the invention obviously also makes a user non-dependant on the opening hours of the banks, and a special feature is that payments via Internet can be made, without stating the card number. The risk taken by the banks with regard to card fraud is eliminated, as well as the problems that these can inflict on a card holder. Replacement cards replacing damaged or lost cards can be issued immediately, and with the same amount as was available at the time when the card was damaged or lost. Furthermore, replacement cards can be issued by any bank, a feature that is most desirable, e.g. when one is travelling. The risk for robberies aimed at persons is also reduced, partly due to the fact that the card is protected by a PIN code, partly due to the fact that only a small amount can be obtained without PIN code (SEK 250). Credit balance of mislaid cards is also transferred to the account of the holder after a predetermined period of non-use (e.g. 1 year). The payment system according to the invention includes a number of predefined and basic transaction types, which with regard to functions facilitate further additions to those defined below: a) Payment between cards. b) Payment to account. c) Transfers from card to card. d) Payment of goods/services via an online-terminal. e) Payment of goods/services in an Internet shop. f) Blocking of card. g) Recovery of amount from lost/damaged card. h) Transactions via mobile terminal. i) Transfer between mobile terminal and bank. j) Emptying of card. k) Updating of card. l) Change of PIN code. m) Payment with bank or credit cards via the system. Without regard to type of transaction, use utilizing a terminal directly connected to the bank involves a verification of the card and a checking operation of card data in relation to bank data. Any earlier transactions, which have not been communicated to the bank, e.g. any small amount transactions exist stored in the form of a transaction log in the card, are transferred to the bank for registration/bookkeeping before desired transaction is initiated. The transaction log which exists due to the memory capacity of the card allows a user to perform an estimated number of 64 transactions offline, before used memory capacity has been exhausted. When approximately 10 further transactions are allowed before existing memory capacity has been completely exhausted, this fact is preferably shown in a display unit of the offline-terminals used, whereby the user is informed of the need to download stored data via a directly connected terminal. The user does not need to make any purchase in the directly connected terminal in order to transfer the log. Even if a card during a long period of time is used only in offline-terminals, information relating to performed transactions will be transferred to the bank in connection with transfer of information to the bank from sellers of goods/services. Furthermore, for each transaction the amount available on the card is reduced by the transaction amount, which means that no purchase can be made for a larger amount than what is actually remaining. The above mentioned transaction types (a-m) will now be briefly described. a) Payment Between Two Cards A payment (transfer) from one card to another is easily accomplished, and when using a terminal without direct connection to the bank, such a transaction can be performed as follows. Card No. 1 is placed in the terminal and amount and PIN code are stated. The amount is reserved as a withdrawal in card No. 1 and a certificate is issued, which is intermediately stored in the terminal. This is preferably time restricted to a valid period of, for example, 15 minutes. Thereafter card No. 2 is placed in the terminal, which accepts the certificate, whereafter a receipt is issued, which is stored in the terminal. Card No. 1 is placed once again in the terminal, receives the receipt, which is verified by card No. 1. Available balance for card No. 1 is reduced, the transaction is logged by the card and a withdrawal receipt is transferred to and stored by the terminal. As a final step, card No. 2 is once again placed in the terminal, whereby the amount in question is definitely transferred to card No. 2, which transaction log is updated with transferred amount and information relating to the transaction. For the same type of transaction via Internet or at a directly connected terminal, the transfer can be carried out even more simply by placing card No. 1 in a reader, and by stating amount and PIN code. The card is verified by the bank and the amount in question is reserved as a permanent withdrawal, provided that card number of a recipient is received in a following step. Created certificate has once again a preferably time restricted period of validity, e.g. 15 minutes, and provided that card No. 2 is placed in the reader during this period of time with input of associated PIN code, the amount is transferred to card No. 2 and the transaction is registered as final and completed. In both of these two cases, the transaction is annulled should card No. 2 fail to be placed in the terminal within prescribed time period. b) Payment to Account The card is placed in the terminal and PIN code is inputted. Type of transaction is chosen, whereafter amount, clearing number of the bank and account number are stated. Transfer of the amount to selected account occurs immediately after that the card has been updated with the new information from the bank. Should the card holder interrupt input of the above information, the operation is terminated, and no change is made to the information stored within the card. c) Transfer from Account to Card This is accomplished substantially as described under b), i.e. the card is placed in the terminal with input of associated PIN code, type of transaction is stated and the amount requested to be transferred to the card. The account associated with the card is charged, and provided that desired amount is available, the card is updated with the new amount at the same time as the account is charged with transferred amount. d) Payment of Goods/Services in an Online-terminal The card is placed in the terminal with input of PIN code (if the amount exceeds the limit amount for transactions without PIN code, or if the number of such transactions has been reached), whereafter the amount in question is approved. As a result, available and stored amount in the card is reduced with the amount of the transaction. Should purchases have been made via mobile terminals, such purchases being placed in the card log of transactions as well as the log of the mobile terminal, the card information of such stored transactions is transferred at the same time. It is of no importance from which party the information is transferred first to the bank, since the last reported logged information serves as a verification of the first received, whereby such a transaction is completely verified. However, received information from one party only is sufficient for a secure verification of a completed transaction, since the verification is carried out in a safe manner. As well as with online-terminals as transactions via Internet, the information is updated immediately. e) Payment of goods/services in an Internet shop The card is placed in a reader connected to a computer, and the page of the site is chosen where payment should be made. As a first step, the software of the client is synchronized with the software of the shop, whereafter the client inputs the PIN code. Data from the client is sent coded (+128 bits) to the seller, who thereto adds the amount to be paid and its certificate. Contact with the bank is thereafter established from the seller, which checks the certificate of the seller, amount and client card data. Provided that received information is correct, the bank issues a "claim" with the amount in question calculated based on the currency of the card holder. This "claim" is sent via the seller to the client for verification of the stated amount (this amount is preferably stated in the currency concerned, and when required, also with rate of exchange). After verification from the client, the client contacts the bank for approval of the amount in question. This certificate from the client is now a "token" which is joined to the earlier "claim" from the bank for verification of correspondence with each other, whereafter a request for money is sent to the card. The amount is now reduced from present balance on the card and the balance information in the bank is updated correspondingly. A final certificate is sent to the seller, whereby the related amount is credited the seller, whereafter the transaction is completed. All information mentioned above is preferably transferred strongly coded, which further secures complete safety for each transaction. It is important, that the above described method of payment results in that the bank is immediately updated with regard to completed transactions, that the card is updated with used amount, that the seller receives verification approving the card, that the customer is allowed to accept the amount and to verify same, and that all parties involved receive verification of the allowed charge, and that money is available for the transaction. f) Blocking of a Card As previously mentioned, there might be reasons for blocking a card when it has been lost, damaged or stolen, and such an operation can be performed manually by the card holder or, under certain circumstances, automatically. As examples of various ways to perform blocking manually can thus be mentioned via a directly connected terminal (by statement of card number and PIN code), by direct contact with the bank, or by identifying oneself in a shop and stating the bank to which the card is associated and/or PIN code. The shop may then, by means of a special program in its terminal for blocking operations, based on stated information perform a blocking operation for the card in question. An automatic blocking operation is performed, as previously mentioned, when incorrect PIN code is stated repeatedly, as well as when a card has not been used during a specified period of time. A blocking operation for a card does not involve any mechanical damage to the card, but merely that it is emptied of stored information and program software at the first attempt made to use a blocked card in an online-terminal, whereby stored information is transferred to the bank. The card is thereby erased from the list of barred or blocked cards. It is also within the scope of the invention to include a memory with such an updatable list of barred or blocked cards in mobile terminals, and at an attempt to use a blocked card store the information from the card in the mobile terminal, and thereby empty the card of stored information and program software. In order to secure that a blocked card can not be used for a restricted number of smaller transactions, which do not require PIN code, a user may also choose that a card is issued for which PIN code is required for every single transaction. With regard to mobile terminals, it may also be stipulated that transfer of data should be performed within a certain period of time, e.g. 7 days, in order to further increase the safety of the system. For terminals, e.g. in soft drink machines, involving small amounts and longer service intervals, longer periods of time can obviously be accepted. g) Recovery of Amount from a Lost or Damaged Card Should a user loose his card, the unused amount can, as already previously mentioned, be transferred to a new card. This can obviously also take place should a user's card be damaged in such a way that it can not be used. As soon as a card is blocked, the new card can be issued, which is linked to the account of the user. A certain amount of the registered balance may initially be reserved by the bank, serving as a guaranteed amount for non-registered transactions performed with the card which has been lost or damaged. After, for example, 2 weeks, reserved amount not used for such transactions can be transferred to the new card, an operation that can be performed automatically in connection with use of the new card with an online-connection to the bank. This means that a user can collect a new card on the same day as a lost card is blocked, with a possible excess for non-registered purchases charged during a short period of time, which becomes available within a relatively short period of time provided that no non-registered withdrawals exist for the old card. h) Transactions via mobile terminal A purchase via a mobile terminal involves certain restrictions in view of the fact that same does not facilitate the same checking system as online-terminals. These should therefore not allow purchases exceeding a predetermined level of amounts. Mobile terminals can be used for e.g. soft drink machines, bus and taxi travel, admission to cinemas, car parking and other purposes involving relatively small amounts. An example of an interesting field of use is, for example, the possibility to use a special version of cards within a town as a means of payment for bus travel within public transport. Such a card having, for example, a limited amount of SEK 10 and 25 such transfers, can be used as a simple system for payment of bus travel. In those cases where return travel or transfer to another bus line is allowed during, for example, one hour, stored data relating to performed payment may also include the actual time for first travel, whereby a new amount is not charged when entering another bus, provided that such a time limit has not been exceeded. i) Transfer Between Mobile Terminal and Bank As previously mentioned, mobile terminals should be emptied of information at regular time intervals, an action related safety for the customer as well as accounting within the bank. With regard to mobile systems used e.g. for purchase of tickets on public transport, an emptying operation should preferably be performed on a daily basis, in view of the large number of transactions that may occur. Transfer can be accomplished by means of a terminal, or by use of a transfer card, which transfers logged information together with total amount. In order to obtain maximum security, this information is transferred coded in order to avoid risk for any form of illegal influence. Should the digital signature not be correct, logged information is not accepted, whereby payment is not made to the account in question. Hereby protection is obtained against unauthorized equipment. Used equipment for emptying mobile terminals shall of course be in direct contact with the bank to facilitate an emptying operation. j) Emptying of Card As already mentioned, a non-authorized or blocked card will be emptied of all information, to the extent possible, when such a card is brought into contact with directly connected equipment, or a mobile terminal having an updated list of blocked cards. When this occurs, an emptying sequence is initiated, whereby data, and program software, are transferred, preferably coded, to the terminal/bank. The ID-number of the card is also transferred at the same time, and the blocked card can thereafter be removed from the list of blocked cards. For unknown cards, a read routine is initiated by the terminal, arranged to attempt to read as much as possible of stored data and software. The data obtained are encoded and signed by the terminal in question, and transferred as an alarm disclosing that a manipulation or counterfeiting attempt is in progress. When the read routines have been completed, the present card is emptied/reprogrammed by initiation of a sequence with "block erase" erasing both data and program software from the card. This on condition that the card is not identified as a valid card from an issuing authority not participating in the payment system. Common for all deactivations is, that time, date and terminal number are logged and transferred together with data collected from the card. This facilitates a later analysis of data obtained, and thereby a possibility to develop protective means against possible attempts of attack aimed at the payment system. k) Updating of Card A card can be updated at any online-connected terminal when this is required. Such an update may, for example, relate to smaller changes of the program software of the card, or change of the entire program software to a new and updated version, as well as changes to the encoding key or a change from a primary encoding key to a secondary. Such an update should preferably always include a checking operation of present status for the card against the bank, and the bank information is thereafter added to the card, if such a need exists after the checking operation. l) Change of PIN Code Change of PIN code can only be performed via online-connected terminals, in view of the fact that the bank must be updated with the same information, since utilized encoding keys preferably are based on an algorithm which partly is based on present PIN code. It is obviously in this connection an advantage, that a user freely can select a PIN code with a combination of numerals that the user easily can memorize, as well as that change of PIN code can be performed in a rapid and simple way whenever a user so desires. m) Payment with Bank or Credit Cards via the System Should a person not hold a card intended for the payment system according to the invention, but be the holder of a credit, pay or bank card with magnetic strip or a chip system based on the ISO standard, these types of cards can also be used in the system according to the invention. For example, payments at distance, e.g. via Internet, involving a card with a magnetic strip, same is inserted into a therefor adapted reader, and stored information relating to card number and issuer are read. After input of PIN code by the user, the data obtained are transferred, preferably encoded, to the seller, which adds the requested amount to the information, whereafter all information is transferred to the bank and the customer. The customer verifies the amount and establishes contact with the bank stated on the certificate from the seller, and the bank checks the information from the seller against the information from the customer. A receipt for the present payment is created by the bank, which directly from the bank, or via the customer, is transferred to the seller as evidence of completed payment. The purchase is thereby made final, without any information given to the seller regarding the card number or risk for same being communicated to an unauthorized party. The seller can not change the amount, or make further withdrawals from the card, without the knowledge of the card holder. By this method all present day risks relating to spreading of card number and associated information of validity term are removed. As a further development of this method, a seller may also create a system for recognizing customers by fetching the certificate associated with a certain customer, and which can be obtained from the bank. This could, for example, be accomplished by sending card number together with PIN code to the bank, which in response informs of the certificate number for the customer. Such a certificate number only gives reference to a certain specific customer, and can not be used by a seller to create payments, since information relating to a payment must consequently be verified by the terminal of the buyer, since this traffic (verification) does not run through the system of the seller. Furthermore, each payment receives an encoded serial number, which means that for each payment a unique one time certificate is created, which is issued by the bank. A seller can only read the information related to and required for the seller with regard to each individual transaction. For direct payments, e.g. in a shop, stored data can be read and this can be transferred together with the amount of the purchase via online-connected terminals in a manner substantially corresponding to the terminals used today for this purpose. The terminals utilized for the payment system according to the present invention have already been partly described with regard to functions, but examples of embodiments that can be used will hereinafter be briefly described. The above described examples of cards, functions and terminals are only intended to disclose basic and non-restricting examples of embodiments within the scope for the payment system according to the invention, and to disclose ways in which they can be implemented. It is thus believed to be within the knowledge of a person skilled in the art to create necessary program software to accomplish described functions, as well as to design the terminal described herein and which construction can be varied in a number of different ways utilizing techniques known within the field. Any examples of suitable encoding algorithms have not been given, partly in view of the fact that knowledge of such algorithms should not be published, partly since examples of how a number of such algorithms are built up and work are previously known. In this connection it has only been stated, that same should preferably be of the type with at least 128 bits, and that the system should preferably include a primary and a secondary algorithm, and that utilized PIN code consists one of the elements for encoding. The payment system according to the present invention is thus in no way restricted to the examples of embodiments herein described, which means that a payment system according to the invention may include less as well as more functions than what has been described, within the scope of the inventive thought and the following claims.
|
Same subclass Same class Consider this |
||||||||||