WO2010007618A1

WO2010007618A1 - Apparatus for verifying authorized use of credit cards

Info

Publication number: WO2010007618A1
Application number: PCT/IL2009/000692
Authority: WO
Inventors: Maayan Zaribi; Roei Riheni
Original assignee: Maayan Zaribi; Roei Riheni
Priority date: 2008-07-13
Filing date: 2009-07-12
Publication date: 2010-01-21
Also published as: IL192777A0

Abstract

An apparatus, which is connected to a standard cash register or is built into a cash register and includes a keyboard, display panel, magnetic reader, and electronic computer system, that authorizes payment using credit cards, or alternately denies such authorization. The user must input his or her PIN using the apparatus's keyboard so that the apparatus's internal system may authorize the cash register to debit the credit card.

Description

Apparatus for Verifying Authorized Use of Credit Cards

Description

TECHNICAL FIELD The present invention refers to an appropriate designed to verify authorized use of credit cards when such are used for payment at cash registers in stores and at other points of sale.

BACKGROUND ART

The general public often purchases products and services in stores and other places and customarily pays using credit cards. In such cases, the user hands his or her credit card to the vendor who swipes the card through the appropriate reader (6) on the cash register (5). The cash register outputs a slip which the user is then required to sign. In addition, the general public customarily uses credit cards to execute payment using various unmanned automatic devices, such as parking lot payment machines and automatic vendor machines that sell beverages and other products.

Unfortunately, credit card theft is a common phenomenon and thieves use stolen credit cards to purchase products and services. Hypothetically, users may be asked to present identification at the point of sale so as to prevent unauthorized use of credit cards. In most cases, however, this identification process is not performed or. enforced and in many cases the thief is also in possession of the card owner's means of identification, for instance in cases in which the thief has stolen the card owner's bag or wallet. In addition, no verification is made of the user's signature on the cash register slip, SQ that even a hypothetical identification verification would not solve the said problem. The present invention offers an appropriate response to the above-mentioned problem.

THE INVENTION

Credit cards are equipped with magnetic strips and/or electronic chips that contain basic and confidential information about the card owner and his or her bank account. This information enables the owner to use his or her credit card to withdraw cash from automatic teller machines (ATMs) and to pay at cash registers (5) in stores and other points of sale and/or unmanned automatic vending machines. For the sake of convenience and fluency of explanation, the application will refer to payment stations in store, although it also covers and applies to unmanned payment machines.

Withdrawing cash from ATMs using a credit card:

The following operations and stages are executed when using a credit card to withdraw cash from an ATM: (a) The user inserts the credit card into the appropriate slot in the ATM. (b) The ATM's computer system reads the confidential information on the card, (c) The computer system verifies the card information and the card's PIN. [Clarification:

In some cases, the ATM's computer system communicates directly the bank's central computer to verify the card's PIN (a four digit number). In other case, the PIN is stored as part of the information on the card and the ATM's computer system uses a calculation algorithm to verify the card's PIN, without having to directly communicate with the bank's central computer.] (d) The user inputs the PIN. (e) The computer system compares the PIN received directly from the bank (if the PIN is not stored on the card) to the PIN input by the user using the ATM's keyboard, (f) If there is a match, the system authorizes the user to execute various operations including withdrawal of cash; if there is no match, such authorization is denied. All of the above is known to any average professional that is proficient in the area.

Paying with credit cards at store cash registers and points of sale: The following operations and stages are executed when credit cards are used for payment at cash registers (5) in stores and at points of sale: (a) The user hands the credit card to the vendor, (b) The vendor inserts or swipes the card through the appropriate reader (6) on the cash register. (c) The cash register's computer system reads the confidential information on the card, (d) The cash register's computer system communicates directly with the bank's central computer system and receives authorization for the payment, (e) After receiving authorization, the cash register outputs a slip which the user then signs. AU of the above is known to any average professional who is proficient in the area.

The present invention integrates components from the above two methods in order to minimize and prevent unauthorized use of credit cards in stores and points of sale by using the apparatus (1), subject of the present invention.

The present invention refers to an apparatus (1) that comprises a casing (2) that contains hardware and software designed to prevent payment using credit card without inputting the card owner's PIN.

The apparatus (1) comprises a casing (2), a numerical keyboard (3), a display panel (4), a magnetic reader (7), and an internal electronic computer system that includes the following main components: A card data reading unit (A), a card data verification unit (B), a unit (algorithm) that verifies the card owner's information (C), an internal communications unit (D), an external communications unit (E), and a unit that authorizes the cash register (5) to debit the card or denies it such authorization (F).

The structure of the apparatus (1), its principles of operation, and its basic components are largely similar to those of an ATM into which the user inputs the card's PIN before he or she can execute operations in his or her account. Therefore, there is no need to specify these issues in the present application since they are known to any average professional in the area.

The apparatus (1) can be built into the standard cash register (5) or it can be a separate element and be connected to the cash register by means of an external connection. Such external connection of the apparatus (1) will enable to implement the invention on existing cash registers and prevent the need to replace them with cash registers that include built-in apparatuses (1), subject of the present invention.

The apparatus (1) operations according to the following principles: (a) The user hands the vendor his or her credit card, (b) The vendor swipes the card through both the reader (6) located on the cash register (5) and the apparatus's magnetic reader (7). For the sake of convenience, the apparatus's magnetic reader (7) should be mounted above the cash register's magnetic reader (6) so as to enable the vendor to swipe the card through the two readers in one continuous motion, (c) The cash register's computer system sends a message to the apparatus causing the apparatus's display panel (4) to display a request for the user to input his or her PIN.

(d) The user inputs his or her PIN using the keyboard (3) located at the front of the apparatus, (e) The apparatus's computer system authorizes or denies authorization for the purchase according to the correctness of the PIN the user input.

The front of the apparatus (1), which includes the display panel (4) and keyboard (3) should face the user so as to enable the user to read the message on the display panel (4), have convenient access to the keyboard (3), and conceal his or her PIN from the vendor when inputting it.

The order of operations performed on the apparatus systems (1) and the cash register (5) can vary If the four-digit PIN is stored on the credit card's magnetic strip, the sequence can be as follows: The vendor/user swipes the card through the magnetic reader (7) [and also through the cash register's magnetic reader (6)]. The user inputs the card's PIN using the keyboard (3). The computer system of the apparatus (1) verifies the input PIN.

If the PIN is correct, the computer system of the apparatus (1) authorizes Communications between the cash register (5) and the central computer of the relevant bank. If the four-digit PIN is not stored on the credit card's magnetic strip, the sequence can be as follows: The user swipes the card through the magnetic reader (7) [and also through the cash register's magnetic reader (6)]. The computer system of the cash register (5) opens communications with the central computer and receives the said PIN from the bank. The user is requested to input the card's PIN using the keyboard (3). The computer system of the apparatus (1) verifies the input PIN. If the PIN is correct, the computer system of the apparatus (1) authorizes continuation of communications between the cash register (5) and the central computer of the relevant bank.

The apparatus (1), subject of the present invention, offers addition protection to prevent unauthorized use of credit cards when purchasing products and/or services at points of sale.

While the present invention has been described in connection with what is considered the most practical and preferred embodiments, it is understood that this invention is not limited to the disclosed embodiments but is intended to cover various arrangements included within the spirit and scope of the broadest interpretation so as to encompass all such modifications and equivalent arrangements. The drawings attached to the application are not intended to limit the scope of the invention and the possible ways of its application. The drawings are intended only to illustrate the invention and constitute only one of many possible ways of its application.

DESCRIPTION OF THE DRAWINGS

Drawing No. 1 depicts a standard, prior art cash register. Drawing No. 2 depicts a standard cash register (5) along with the apparatus (I) that comprises a casing (2), keyboard (3), display panel (4), and magnetic reader (7).

Drawing No. 3 schematically depicts the main units of the apparatus. ]

Claims

Claims What is claimed is:

1. An apparatus, which is connected to a standard cash register or is built into a cash register and includes a keyboard and electronic computer system, that authorizes payment using credit cards, or alternately denies such authorization.

2. The apparatus mentioned in Claim No. 1 whereby the apparatus includes a casing, display panel, keyboard, magnetic reader, and electronic computer system that comprises the following units: a card data reading unit, a card data verification unit, a unit that verifies the card owner's information, an internal and/or communications unit, and a unit that authorizes the said cash register to debit the said card or alternately denies such authorization.