WO2007004202A2 - System and method for performing card transactions - Google Patents

System and method for performing card transactions Download PDF

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Publication number
WO2007004202A2
WO2007004202A2 PCT/ID2006/000004 ID2006000004W WO2007004202A2 WO 2007004202 A2 WO2007004202 A2 WO 2007004202A2 ID 2006000004 W ID2006000004 W ID 2006000004W WO 2007004202 A2 WO2007004202 A2 WO 2007004202A2
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WO
WIPO (PCT)
Prior art keywords
transaction
card
menu
program
customer
Prior art date
Application number
PCT/ID2006/000004
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French (fr)
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WO2007004202A3 (en
Inventor
Daniel Suisa
Original Assignee
Daniel Suisa
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Publication date
Application filed by Daniel Suisa filed Critical Daniel Suisa
Publication of WO2007004202A2 publication Critical patent/WO2007004202A2/en
Publication of WO2007004202A3 publication Critical patent/WO2007004202A3/en

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    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/38—Payment protocols; Details thereof
    • G06Q20/40—Authorisation, e.g. identification of payer or payee, verification of customer or shop credentials; Review and approval of payers, e.g. check credit lines or negative lists
    • G06Q20/409—Device specific authentication in transaction processing
    • G06Q20/4093—Monitoring of device authentication
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/08—Payment architectures
    • G06Q20/16—Payments settled via telecommunication systems
    • G—PHYSICS
    • G06—COMPUTING; CALCULATING OR COUNTING
    • G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
    • G06Q20/00—Payment architectures, schemes or protocols
    • G06Q20/30—Payment architectures, schemes or protocols characterised by the use of specific devices or networks
    • G06Q20/34—Payment architectures, schemes or protocols characterised by the use of specific devices or networks using cards, e.g. integrated circuit [IC] cards or magnetic cards
    • G06Q20/341—Active cards, i.e. cards including their own processing means, e.g. including an IC or chip
    • G—PHYSICS
    • G07—CHECKING-DEVICES
    • G07F—COIN-FREED OR LIKE APPARATUS
    • G07F7/00—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus
    • G07F7/08—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means
    • G07F7/10—Mechanisms actuated by objects other than coins to free or to actuate vending, hiring, coin or paper currency dispensing or refunding apparatus by coded identity card or credit card or other personal identification means together with a coded signal, e.g. in the form of personal identification information, like personal identification number [PIN] or biometric data
    • G07F7/1008—Active credit-cards provided with means to personalise their use, e.g. with PIN-introduction/comparison system

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  • Business, Economics & Management (AREA)
  • Engineering & Computer Science (AREA)
  • Accounting & Taxation (AREA)
  • General Physics & Mathematics (AREA)
  • Physics & Mathematics (AREA)
  • Strategic Management (AREA)
  • General Business, Economics & Management (AREA)
  • Theoretical Computer Science (AREA)
  • Finance (AREA)
  • Microelectronics & Electronic Packaging (AREA)
  • Computer Networks & Wireless Communication (AREA)
  • Computer Security & Cryptography (AREA)
  • Financial Or Insurance-Related Operations Such As Payment And Settlement (AREA)
  • Control Of Vending Devices And Auxiliary Devices For Vending Devices (AREA)

Abstract

A system and method for performing a transaction with a card is presented. Initially, a card is issued to a customer (card holder) by a card issuer, wherein the card contains a transaction menu and/or a transaction program. Next, a transaction is performed at a transaction terminal with the card using the transaction menu and/or the transaction program acquired from the card. Accordingly, the transaction is forwarded to the card issuer for an authorization. The customer can thereby perform transactions at home terminals and third party terminals around the world with the same transaction menu.

Description

SYSTEM AND METHOD FOR PERFORMING CARD TRANSACTIONS
Field of the Invention The invention relates to transactions using cards . More specifically, the invention relates to a system and method for performing financial transactions with a card issued by a card issuer to a customer (card-holder) , wherein the card contains a transaction menu and/or a transaction program, so that the customer can perform transactions at a transaction terminal with the card using the transaction menu and/or the transaction program acquired from the card.
Background of the Invention
So far, card institutions or card organizations such as AMEX, Diners Club, VISA, MasterCard and others including the acquirers and the card issuers have been quite successful in helping customers (card holders) from many financial institutions (card issuers) around the world to conveniently perform transactions or payments of transactions at many locations through point-of-sale (POS) terminals at merchant sites around the world, and also providing to the customers facilities to withdraw cash at many ATMs around the world.
However, transactions that can be performed at the point-of-sale terminals are limited to payments of the point-of-sale transactions only, and transactions that can be performed at the ATMs in shared networks are limited to cash withdrawal transactions only and possibly few additional types of common/generic transactions .
Cooperation among financial institutions in establishing shared ATM networks have also been beneficial to the institutions them-selves in terms of increased transactions volume for the ATM deployers and in terms of expanded service points for the card issuers, and at the same time also been beneficial to the custome^s^card holders in terms of conveniences.
Nevertheless, the transaction types that can be ctbϊter in the shared ATM networks are typically cash withdrawal and balance inquiry transactions only, plus possibly few other transaction types, which are common to and agreed by- all member institutions . The transactions which are unique or specific to particular members of the network would be very difficult to be provided. Moreover, competitions have forced banks and other financial instituions to be more creative and innovative in providing new differenciated services . Some of the banks are very dynamic and aggresive in launching new innovative and differenciated products and services, whereas some other banks are tending to be conservatives . This leads to a gap among the member banks in terms of the number and the type of transasctions . As a result, the number and the type of transactions available on the ATMs of every member bank are various . Additionally, different business focuses and customer segmentations also contribute to the variations of products and services, in which some banks have specific products and services that other banks do not have, and vice versa.
Moreover, the Internet banking services which mostly provides routine services require the customers to download the standard transaction menu and/or transaction program to the user terminal over the networks every time a routine transaction is to be performed. This wastes the customer's time, the networks resources and other resources associated with the transaction.
High mobility of customers/cardholders requires financial institutions/card issuers to provide a plurality of services or more complete services to their customers every-where and any-where . And more importantly, the customers must be able to perform transactions any-where, at the home-terminals or at the third party terminals, with the same transaction menus and the same transaction instructions . It would therefore be desirable to have a syslA and method that can provide a plurality of non-cash transc types in addition to the traditional point-of-sale payme transactions at point-of-sale terminals in many merchant sites around the world, with the same transaction menu and/or transaction program.
Additionally, it would also be desirable to have a system and method that can provide a plurality of transaction types including unique/specific transactions from all member institutions, in addition to typical cash withdrawal and balance inquiry transactions, at all ATMs within the shared ATM networks, with the same transaction menu and/or transaction program.
Moreover, it would also be desirable to have a system and method that can provide a plurality of non-cash transaction types through cellular phones, personal computers, and other personal devices, and any terminal that can accept cards and can be connected to the authorization systems of the card issuers over the financial networks or the Internet, with the same transaction menu and/or transaction program.
Summary of the Invention
According to this invention, it is presented a system and method for performing a transaction with a card issued by a card issuer (typically a financial institution) to a card holder (customer) , wherein the card contains a transaction menu (or part of the menu) and/or transaction program (or part of the program) , and wherein the customer can perform transactions at a plurality of terminals with the card using the transaction menu and/or transaction program from the card.
Initially, a card- is issued by a card issuer to a customer, wherein the card contains a transaction menu and/or transaction program.
Next, a transaction is initiated/performed at a transaction terminal with the card using the transaction menu and/or transaction program from the card. W
Accordingly, the transaction is forwarded to tfels™3&ard"
Figure imgf000005_0001
The invention is expected to help customers ^sef™ financial institutions to perform transactions, at a 5 plurality of transaction terminals around the world within shared networks, with the same transaction menu and/or transaction program.
The invention is also expected to help the financial institutions (card issuers) to expand their service points 10 around the world through shared networks .
Additionally, the invention is expected to help the acquirers to increase the transactions volume as more type of transactions can be performed by more customers.
15 Brief Description of the Figures
Figure 1 is a flow chart describing the method of the invention.
Figure 2A is a diagram of an example of a card containing a transaction menu. 0 Figure 2B is diagram of an example of a card containing a transaction program.
Figure 3 is a diagram of a transaction terminal. Figures 4, 5 and 6 are diagrams of several examples of card transaction systems using a plurality of terminals 5 according to this invention.
Detailed Description of the Invention
Figure 1 describes the method of the invention. Initially, at step (110) , a card issuer (typically a 0 bank or a financial institution) issues a card to a customer, wherein the card contains a transaction menu or part of the transaction menu.
The transaction menu includes display screens. The transaction menu also includes states (transaction steps) . 5 The states can be a table containing the steps for performing each type of transaction. For example, when a customer inserts a card into a card reader of a terminal such as an ATM, for example, the ATM then displays a screen prompting the user to enter a PIN, and the ATM further isplays a screen for selecting the type of transac&ϊoϊr-asaS-
Figure imgf000006_0001
The card can also contain a computer program for performing transactions (transaction program or transaction application) . The transaction program can be part of a complete transaction program, wherein the other part of the program can reside in the terminal. The transaction program contained in the card can include the transaction menu. The transaction menu and/or transaction program can be generic for all customers, as in the traditional practice
Furthermore, the transaction menu and/or transaction program can be tailored to customer' s needs . It is known that not all type of transactions provided by a bank are needed by every customer. In many cases, a product or a service is designed based on customer's segmentation. This leads to a particular set of products/services is directed to a particular group of customers such as students, docters, lawyers, etc. Additionally, the transaction menu and/or transaction program can be tailored to individual customer' s needs . In one embodiment, a set of selected type of transactions can be prepared for an individual customer when the card is issued to the customer. In another embodiment, the card can be issued to a customer with a set of basic or standard type of transactions, and then the customer can add or delete the type of transactions later on based on the need to be stored in the card.
Furthermore, when there is a need to update/upgrade the transaction menu and/or transaction program, the customer can make such an update/upgrade through available terminals .
Moreover, the card can also contain transaction identifier code, encryption key including private key and other data required for performing transactions.
The transaction identifier code or generally called transaction code can be useful when the card is used for performing transactions at terminals belong to other banks or third party. Moreover, the card can contain an electronic "^aiSςiress
Figure imgf000007_0001
issuer so that the transaction can be forwarded to such address for transaction approval. Additionally, the card can also contain other components required for performing transactions .
Any available card having storage or having both storage and processor can be used in this invention. In one embodiment, a smart card (chip card) can be used. Referring to Figure 2A, in one embodiment, a smart card (210) contains a chip (211), which consists of at least one processor (212) and storage (213) for storing a transaction menu (214) or a component for forming the transaction menu. Figure 2B is another embodiment, wherein a smart card (220) contains a chip (221) , which consists of at least one processor 222 and storage (223) for storing a transaction program (224) .
Next, at step (120) , the customer performs a transaction at a transaction terminal with the card using the transaction menu and/or transaction program acquired from the card. The transaction terminal is generally called the transaction apparatus .
Referring to Figure 3, as an exemplary embodiment, a transaction terminal (300) comprising at least: a card reader (310) for reading/acquiring the transaction menu and/or transaction program from the card; a customer display unit (320) for displaying the transaction menu or at least part of the menu acquired from the card; a customer input unit (330) for acquiring information required by the transaction from the customer; and a communication unit (340) for sending/forwarding the transaction to the card issuer for an authorization/response and for receiving the response/authorization from the card issuer. In one embodiment, wherein the card contains only a transaction menu, then the transaction terminal can be equipped with a transaction program that has been prepared to perform transactions using the transaction menu acquired from the card.
Figure imgf000008_0001
equipped with a platform such as an operating system " support the operation of the transaction program from the card.
Furthermore, in another embodiment, wherein the card contains a transaction program and also contains computer processor, then the transaction program can be run inside the card itself, wherein the transaction terminal can supply the electricity power via the card reader (card contact) to the card to activate the processor inside the card to run the transaction program. In addition to supplying the power, the transaction terminal can also provide means for inputting and outputting the information required by the transaction as well as means for sending/forwarding the transaction to the card issuer for an authorization/response.
Running the transaction program inside the card itself can increase the security especially when the transaction is performed at a third party terminal. The card issuer can have a better control over the process of performing the transaction and thereby can eliminate or minimize the frauds .
The transaction terminal can be : a self service terminal such as an ATM, kiosk terminal; a point-of-sale terminal; a telephone including cellular phone and fixed phone; a pda; a PC; or any apparatus equipped with means for acquiring the transaction menu and/or transaction program from a card and can be connected to the card issuer for transaction approval.
Accordingly, at step (130), the transaction terminal sends/forwards the transaction (or the transaction request) to the card issuer for a response. The response can be an authorization, a notification, or a request for information.
In a shared network, wherein there is more than one card issuer, a transaction switch is required for switching/routing the transaction to the respective card ssuer, or for routing the transaction to the next\'ϊϊ&twork
Figure imgf000009_0001
Figure 4 is an example of a system according to tS&Sag: invention. It is a shared ATM network consists of, but not limited to: Bank-A having an ATM (421) connected to its host system (420); Bank-B having an ATM (431) connected to its host system (430); and Bank-C having an ATM (441) connected to its host system (440) . Every host system is connected each other through a transaction switch (410) . In this example, with a card issued by Bank-A, a customer of Bank-A can perform transactions at the ATM
(431) of Bank-B as well as at the ATM (441) of Bank-C with the transaction menu as performing the transactions at the
ATM (421) of Bank-A. Likewise, a customer of Bank-B can perform transactions at the ATM (421) as well as at the ATM (441) with the same transaction menu as performing the transactions at the ATM (431) . And likewise, a customer of Bank-C can perform transactions at the ATM (421) as well as at the ATM (431) with the same transaction menu as performing the transactions at the ATM (441) .
Figure 5 is another example of a system according to this invention. In this example, a customer of Bank-A can perform transactions at the terminal (540), the terminal (550) and the terminal (560) with the same transaction menu or at least with the same menu at the same type of terminal. And so can the customers of Bank-B and Bank-C with their own transaction menus .
In Figure 5, a phone operator (service provider or telecommunication company) (530) can be an acquirer or a transaction switching agent, which switches the transactions to the card issuers through the transaction network (510) or can just be a provider of phone channel for the Internet (520) . The phone can be a mobile phone or a fixed phone . Additionally, an Internet service provider (ISP) can also be an acquirer or a transaction switching agent, wherein the transaction terminal can be any Internet enabled device equipped with a card reading mechanism. Figure 6 is an example of a card transaction ;. wherein the transaction terminal and the phone operator (530) is
Figure imgf000010_0001
(610) issued by Bank-A is inserted into the cellular phone (550) , the cellular phone (550) will turn into a dedicated terminal for Bank-A, which can allow the user to perform all type of non-cash transactions including specific transactions of Bank-A. Likewise, when a card (610) issued by Bank-B is inserted, the cellular phone (550) will turn into a dedicated terminal for Bank-B. And also when a card (610) of Bank-C is inserted, the cellular phone (550) will turn into a dedicated terminal for Bank-C.
The present invention may be embodied in other forms without departing from its spirit and scope. The embodiments described above are therefore illustrative and not restrictive, since the scope of the invention is determined by the appended claims rather then by the foregoing description, and all changes that fall within the meaning and range of equivalency of the claims are to be embraced within their scope.

Claims

Claims
1. A system for performing a transaction with a ^|SM>Q comprising: a card issued by a card issuer to a customer, wherein the card contains a transaction menu (or part of the menu) and/or a transaction program (or part of the program) ; and a transaction apparatus for accepting the card, performing a transaction using the transaction menu and/or the transaction program from the card, and forwarding the transaction to the card issuer for an authorization.
2. The system of claim 1, wherein the transaction menu includes display screens.
3. The system of claim 2, wherein the transaction menu further includes transaction states (transaction steps) .
4. The system of claim 1, wherein the transaction menu and/or ' the transaction program is generic to all customers .
5. The system of claim 1, wherein the transaction menu and/or the transaction program is specific to a particular group of customers .
6. The system of claim 1, wherein the transaction menu and/or the transaction program is specific to an individual customer.
7. The system of claim 1, wherein the card further contains at least one transaction identifier code.
8. The system of claim 1, wherein the card is smart card
(chip card) .
9. The system of claim 1, wherein the trans" apparatus comprising at least: a card reader for acquiring the transaction menu the card; a transaction program for performing a transaction using the transaction menu acquired from the card; a display means for displaying at least part of the transaction menu; an input means for inputting the information required by the transaction; and a communication means for sending the transaction to the card issuer for an authorization.
10. The system of claim 1, wherein the transaction apparatus further comprising at least: a card reader for acquiring the transaction program from the card; a platform for supporting the operation of the transaction program acquired from the card for performing a transaction; a display means for displaying the transaction related information; an input means for inputting the information required by the transaction; and a communication means for sending the transaction to the card issuer for an authorization.
11. The system of claim 1, wherein the card further contains at least one computer processor for running the transaction program inside the card.
12. The system of claim 11, wherein the transaction apparatus further comprising at least: a display means for displaying to the user the transaction related information; an input means for inputting from the user the information required by the transaction; a card reader for connecting the apparatus with the card, wherein an electricity power is supplied to the processor inside the card for running the transaggog' program inside the card, the card reader recejiλn.ng from the card the information to be displayed toother user, the card reader providing to the card €lre- information from the user, and the card reader receiving form the card the transaction (transaction request) ; and a communication means for sending the transaction to the card issuer for an authorization.
13. The system of claim 1, wherein the transaction apparatus is a telephone.
14. The system of claim 13, wherein the telephone operator is an acquirer and/or a transaction switching agent.
15. The system of claim 1, wherein the transaction apparatus is an Internet enabled device.
16. The system of claim 15, wherein the Internet service provider is an acquirer and/or a transaction switching agent .
17. The system of claim 1 further comprising a transaction switch for switching/routing the transaction to the card issuer for an authorization.
18. A method for performing a transaction with a card, comprising the steps of: issuing a card to a customer by a card issuer, wherein the card contains a transaction menu (or part of the menu) and/or a transaction program (or part of the program) ; performing a transaction at a transaction apparatus with the card using the transaction menu and/or the transaction program from the card; and forwarding the transaction to the card issuer for an authorization.
19. The method of claim 18, wherein the step of performiiϊ^ the transaction includes the steps of acquiring, ;"the transaction menu from the card and displaying at lea's.tr' part of the menu to the customer.
20. The method of claim 18, wherein the step of performing the transaction includes the step of acquiring a transaction identifier code from the card and the step of associating the code with the related transaction.
21. The method of claim 18, wherein the step of performing the transaction includes the step of placing the transaction program to the transaction apparatus for execution.
22. The method of claim 18, wherein the step of performing the transaction includes the step of supplying an electricity power to the card for running the transaction program inside the card.
PCT/ID2006/000004 2005-07-01 2006-06-26 System and method for performing card transactions WO2007004202A2 (en)

Applications Claiming Priority (2)

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IDP00200500349 2005-07-01
ID20050349 2005-07-01

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WO2007004202A3 WO2007004202A3 (en) 2007-05-31

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Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US4874935A (en) * 1986-03-10 1989-10-17 Data Card Coprporation Smart card apparatus and method of programming same
US5844218A (en) * 1996-07-16 1998-12-01 Transaction Technology, Inc. Method and system for using an application programmable smart card for financial transactions in multiple countries
WO2000051086A1 (en) * 1999-02-22 2000-08-31 Telefonaktiebolaget Lm Ericsson Mobile communications device
KR20010037946A (en) * 1999-10-21 2001-05-15 신동철 Apparatus for confirming credit card user

Patent Citations (4)

* Cited by examiner, † Cited by third party
Publication number Priority date Publication date Assignee Title
US4874935A (en) * 1986-03-10 1989-10-17 Data Card Coprporation Smart card apparatus and method of programming same
US5844218A (en) * 1996-07-16 1998-12-01 Transaction Technology, Inc. Method and system for using an application programmable smart card for financial transactions in multiple countries
WO2000051086A1 (en) * 1999-02-22 2000-08-31 Telefonaktiebolaget Lm Ericsson Mobile communications device
KR20010037946A (en) * 1999-10-21 2001-05-15 신동철 Apparatus for confirming credit card user

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