FIG. 18
`
`.a2Q
`
`Personal Banking Machine c I r g B A INr ffi
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`� �
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`
`12127/98:2:20:41 PMII
`3\1 CffTHBA!Nr ffi
`
`!
`X m
`� J;;
`!
`
`en
`
`101-t--fl Open
`I 'I G t II
`Account
`102 --f--l Ch:ck
`
`Get
`103 +-II Citlcard
`Change
`1 04-t-11 Address
`
`©B�Iiilfk
`
`Open a new
`account today,
`About
`11+-1 05
`and we will send
`Cltlbank
`you
`PC banking
`Uol �
`About PC
`software
`Banking Itt---106
`
`(Direct Access)
`on the next
`
`business day
`
`Uol
`CJ)
`
`352
`I ,-1---, H Exit 1/1--107
`���1.
`�.
`f
`
`Petitioner Askeladden - Exhibit 1002 - Page 195
`
`

`
`INTERNATIONAL SEARCH
`
`REPORT
`
`Jntcmatiooal application No.
`
`PCTIUS98116448
`
`A. CLASS IFICATION OF SUBJECT MATTER
`IPC(6) :G06F 7/52
`USC L : 705135
`
`
`According to Jntematiooal Patent Classification (IPC) or to both national classification and IPC
`
`B. FIELDS SEARCHED
`
`
`
`Minimum doc:umc:ntation searched (classification system folloWI!d by classiiication symbols)
`
`
`
`u.s. : 705135, 38, 39, 41
`
`Documc:ntation searched other than minimum documentation to tho extent that such documents aro included in tho fields searched
`
`Elcctrooic data base CODsulted during the internation al search (name of data base and, where practicable, search terms used)
`
`c. DOCUMENTS CONSIDERED TO BE RELEVANT
`
`Catcgosy•
`
`Citation of document. with indieation, wbero appropriate, of the relevant passag es
`
`Relevant to claim No.
`
`A, p us 5, 794,230 A (Horadan et al.) 11 August 1998 (11.08.98),
`1-93
`column 6, line 33 to column 8, line 55.
`
`A,P US 5,769,269 23 JUNE 1998 (23.06.98),
`
`column 4, line 1-93
`A (Peters)
`45 to column 8, line 30.
`
`A,P US 5,719,383
`
`line 35 to column 3, line 6.
`
`A (Forrest) 17 February 1998 (17.02.98), column 2, 1-93
`
`A,P US 5,677,955
`
`2, line 3 to column 6, line 45.
`
`(Doggett et al.) 14 October 1997 (14.10.97) column 1-93
`
`� .
`
`Further documents aro listed in the continuation of Box C.
`
`D Sec patent family annex.
`publi>hed •Ita: II'MI intomaticmal fil\na dMe or priority
`Iaior document
`date ODd not rn oonOict wi1b tho awli<:otion but oiled to uzulenttiDd
`!he princ:iplo or th_,. underlyiDg tho imontion
`
`'T'
`
`'A'
`
`'E'
`
`'L'
`
`•o•
`
`'P'
`
`Special categories or cited document&:
`cloownent dcfmq tbc Bm<nl llate of tbc art which is not CONidcred
`relOYIUICC
`lO be Of por'IJWW
`urlier document puhlimed on or aftcf tho inwnotioaol fil"'s dMe
`doeummt wbidt lillY throw doubt& on priority claim(o) or which io
`-
`opecial """""' (U opecifaed)
`doeument referrintl 10 m oral disc:lotu:re. uoe. exhibition « Olbet
`"'"""'
`
`cited 10 establisb tho publioation date or aoothcr citoticm .. other
`
`·�·
`
`•y•
`
`to lhc international Cil"'s dMe but lat .. than
`
`·a·
`
`of parucular re...,anee; tho claimed invention cam>Ot be
`document
`no,·cl or eannot be COO:Jidc:red to itrtolve an inventi"fe ttcp
`considered
`when tho document is taken alone
`
`document of panicular relevance; tho clainted inYOntion
`ca<�Dot be
`considered 10 involvo Ill inventive mp when tho cloownec\
`is
`combined wi1h ono or more other tudt dooumenb. oudt combination
`l>oq obv iout 10 a ponon skilled ill tho lilt
`
`dooounent mm:bc< of the same patent £omily
`
`doeument published prior
`lito priority elate claimed
`
`
`
`
`Date of the actual completion of the international search
`
`07 OCTOBER 1998
`
`Name and mailing address of the I SAlUS
`Commissioner of Patents and Trademarks
`Box PCT
`D.C. 20231
`Washington,
`
`Facsimile No. (703) 305-3230
`
`1992)*
`Fon11 PCT/ISA/2!0 (sccood shcctXJuly
`
`
`
`Date of mailing of the international search report
`
`17DEC 1998
`
`
`
`Authorized officer
`
`FRANTZY POINVIL r;) J CWlf.,' )rru:t:I._. fy--
`
`Telephone No. (703) 305-9779
`
`Petitioner Askeladden - Exhibit 1002 - Page 196
`
`

`
`INfER.NATIONAL SEARCH REPORT
`
`lntcmational application
`No.
`
`PCT/US98116448
`
`DOCUMENTS
`C (Continuation).
`
`CONSIDERED TO BE RELEVANT
`
`passages Relevan t to claim No.
`of the relevant
`Category• Citation of doeumcot, with indication,
`where appropriate,
`
`A
`
`A
`
`A
`
`A (Marcous et al.) 22 July 1997 (22.07.97),
`column 1-93
`US 5,650,604
`3, line 40 to column 8, line 67.
`
`column 7, 1-93
`A (Rosen) 03 October 1995 (03.10.95),
`US 5,455,407
`line 50 to column 15, line 16.
`
`A (Lawlor et al.) 15 June 1993 (15.06.93),
`column 1·31
`US 5,220,501
`11, line 15 to column 35, line 41.
`
`of second shcc:tXJuly 1992)*
`Fonn PCT/ISA/210 (continuation
`
`Petitioner Askeladden - Exhibit 1002 - Page 197
`
`

`
`PCT
`WORLD lNTHLLBCIU
`AL PROPERTY ORGANIZATION
`International Bureau
`INTERNATIONAL APPLICATION PUBLISHED UNDER TilE PATENT COOPERATION TREATY (PC'l)
`WO 98145797
`(51) International Patent Classifi cation 6 :
`(11) International Publication Number:
`G06F 23100
`(43) International PuhHcatlon Date: 15 October 1998 (15.10.98)
`
`A2
`
`(21) International Application Number:
`(22) International Filing Date:
`
`8 April1998 (08.04.98)
`
`(30) Priority Data:
`081835,404
`
`8 April 1997 (08.04.97) us
`
`(81) Designated States: AL, AM, AT, AU, AZ. BA, BB, BG, BR,
`PCT/US98/071SO
`BY, CA, CH, CN , CU, CZ. DE, DK, BE , ES, PI, GB, GE,
`GH, GM, GW, HU, ID, ll.., IS, JP, KB, KG, KP, KR, KZ,
`LC, LK, LR, LS, LT, LU, LV, MD , MG, MK , MN , MW ,
`MX , NO, NZ, PL, PT, RO, RU, SO, SE, SG, SI, SK, SL, TJ,
`TM, "IR,· TT, UA, UG, UZ, VN, YU, ZW, ARIPO patent
`(GH, GM, KE, LS, MW , SD, SZ, UO, ZW) , Eurasian patent
`(AM, AZ, BY, KG, KZ, MD , RU, TJ, TM), European patent
`(AT, BE, CH, CY, DE, DK, ES, PI, FR, GB, GR, m, IT,
`LU, MC, NL, PT, SE), OAPI patent (BF, BJ, CF, CG, CI,
`CM, GA, GN, ML, MR , NE, SN, TD, TG).
`
`(71) Applicant: PROPAY U.S.A., INC. [US/US); 111 West Sunset
`
`ur 84404 (US).
`Drive, Alpine,
`(72) Inventor: wn.KES
`
`, W., Brl!dley; 1 1 West Sunset Drive,
`Alpine, UT 84404 (US).
`Published Without internoJioiiiJl search report and to be republished
`
`upon receipt of tlwt report.
`(74) Agents: O'BRYANT, David, W. et al.; Thorpe, North &
`Western, L.L.P., P.O. Box 1219, Sandy, ur 84091-1219
`(US).
`
`(54) Title:
`METII OD AND APPARATUS FOR CREDIT CARD PROCESSING VIA FACSIMILE
`(57) Abstract
`A method and apparatus for making credit card
`which includes utilizing a facsimile ma ­
`transacliona
`chine for transmitting credit card infonnation and pur­
`chase amount to an infonnation process ing center.
`The infonnation processing center receives and con­
`
`verts the received information into an electronic for­
`mat, and then accesses credit card account infonnation
`via tht lntemel A final disposition of the purchase is
`then transmitted to the men:hant via fcsimile which is
`
`either approval or disappro
`val of the transaction.
`
`022 r:ID
`I J
`, __ _ ____ _ __ _ ------
`24
`i ______ c _ •.
`I ,-211 I
`l 1 J I
`"----'-:-11 r-
`
`1
`I
`I
`
`I
`I
`I
`
`!., ______ _ ___ ,!
`
`14
`______ c:_
`
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`I
`L---------1
`
`Petitioner Askeladden - Exhibit 1002 - Page 198
`
`

`
`FOR THE PURPOSES OF INFORMATION ONLY
`
`Codes used to identify States party to the PCI' on the front pages of pamphlets publishing
`international applications under the PCI'.
`
`AL Albanla
`Annenia
`AM
`AT ADS!ria
`AU Allllnllia
`lt.Z Azelbaijan
`Bosnia aDd Hen:egovina
`BA
`BB 8aJbados
`Bit Belgium
`BJ:I Burkina Paso
`BG Bolguia
`B.J Be:nin
`BR Brazil
`BY Belarus
`CA Canada
`CF Cenual Afiicao Republic
`CG
`Congo
`CH Swil:u:rlalld
`CJ cece d'lvoire
`CM Cameroon
`CN
`Otina
`C1l Cub>
`Cudl Republic
`cz
`DE Germany
`DK Denmarlr
`Estonia
`EE
`
`SpaiD
`&'I
`Finland
`Fl
`liR
`Pnmce
`GA lhhoo
`GB Unlled Kingdom
`GE Gecrgia
`GH Ghana
`GN Guinea
`GR a-
`IRJ
`HUII8JIIY
`IB Jmland
`IL
`hnld
`IS
`Iceland
`IT llDiy
`JP Japan
`KB ICeoya
`KG Kyrgyzstllll
`Ptoplc'a
`Democratic
`KP
`Republic or K=a
`KR Republic or K.on:a
`KZ
`Kazabtan
`Saint Loda
`LC
`Ll
`Lledltenateill
`Sri Laaka
`LK
`LR
`Liberia
`
`Lesotllo
`LS
`LT Lithuania
`Lmembourg
`w
`LV Lalvla
`MC Monaco
`MD Republic of Moldova
`MG Madagaac: ..
`MK
`The former Yagmlav
`Republic of MaccdoDla
`Mali
`ML
`Mongolia
`MN
`MR M.turilallia
`Malawi
`MW
`MX Mexico
`NB Niger
`NL Netberlands
`NO Norway
`NZ New Zealand
`PL Po laud
`Portugal
`PT
`RO Romania
`RU Rwalan Pedemlon
`Sudm
`SD
`Sweden
`SB
`SG Sbtppon:
`
`Slowmla
`8[
`SK Slovakia
`SN Seoegal
`sz Swaziland
`TD
`Clad
`TG Togo
`T.J Tajlklllan
`TM 'J'mtmenlstm
`'l'lutcey
`TR
`Trinidad and Tobago
`1T
`UA lJttaine
`UG Uganda
`Uolted swes of America
`us
`uz lhbekislan
`VN
`Vlc:tNam
`YU Yugoslavia
`zw
`Zimbabwe
`
`Petitioner Askeladden - Exhibit 1002 - Page 199
`
`

`
`W098/45797
`
`PCf/US98/071SO
`
`BACKGROUND
`
`1. The Field Of The Xnvention.
`
`This invention relates generally to financial
`5 transactions via telephone. More specifically, the
`
`present invention provides a method and apparatus for
`
`accomplishing a credit card purchase utilizing facsimile
`
`technology and internet access, thereby avoiding the
`
`dedicated credit card transaction equipment which is
`
`10 typically required.
`
`2. The State Of The Art
`
`The state of the art process for making credit card
`
`transactions is efficient but costly. It is costly in
`
`15 that to process credit card transactions requires
`
`purchasing o� renting the equipment necessary for making
`
`the transactions. Furthermore, there are additional
`
`charges involved. Specifically, there is an access fee
`
`charged to those who want to approve a credit card
`
`20 transaction.
`
`The apparatus described above is typically arranged
`
`as shown in prior art figure L Figure 1 shows a credit
`
`card magnetic reader machine 10. The magnetic reader 10
`
`is also known as and will be referred to hereinafter as
`
`25 a "swipe" machine which describes the motion of placing
`
`a credit card along a track or.channel 12 in the swipe
`
`machine 10, and then pulling the credit card through the
`
`channel. As the credit card is pulled through the
`
`channel 12, information stor.ed on a magnetic strip on
`
`30 the credit card is "readu and transmitted to a credit
`
`card processing center 14. To transmit the information
`
`from the credit card to the processing center 14
`
`typically requires the use of a dedicated telephone line
`
`16. The swipe machine 10 is electrically coupled to a
`
`35 telephone 18 or directly to the dedicated telephone line
`
`16.
`
`Petitioner Askeladden - Exhibit 1002 - Page 200
`
`

`
`W098/45797
`
`PCf/US98/07150
`
`2
`
`The process of transacting a purchase utilizing the
`
`swipe machine 10 can be as follows. First, a customer
`
`provides the credit card to a merchant. The merchant
`
`initializes the swipe machine 10 by activating a
`
`5 connection between the swipe machine 10 and the
`
`processing center 14. Activating the connection can be
`
`as simple as swiping the credit card through the swipe
`
`machine 10, or pressing a button which causes the swipe
`
`machine to make a call to the processing center 14.
`
`10 After the connection is established, the credit card is
`
`swiped through the channel 12, or if already swiped, the
`
`information which typically includes the unique credit
`
`card number is transmitted to the processing center. 14.
`
`Along with the unique credit card number, the merchant
`
`15 also transmits a purchase amount which is to be
`
`transferred .. electronically. As the name implies, the
`
`transfer is typically a crediting of a merchant's
`
`account by debiting of the customer's credit card
`
`account by posting a charge against the account.
`
`20
`
`At this stage of the process, the merchant
`
`typically returns the credit card to the customer
`
`because it will probably not be needed again. The
`
`processing center 14 is now typically using the unique
`
`credit card number to locate an account which is
`
`25 associated therewith. After the account is located, the
`
`processing center 14 determines whether the purchase
`
`amount entered by the merchant exceeds the credit limit
`
`of the credit card account·. If the credit limit is not
`
`exceeded, the processing center 14 transmits an approval
`
`30 code back to the merchant. If the transaction is
`
`approved, the customer then leaves with the purchase.
`
`The process described above can vary slightly for
`
`many reasons. For instance, the process can vary
`
`according to the type of credit card account which is
`
`35 being utilized for the transaction. For example, even
`
`Petitioner Askeladden - Exhibit 1002 - Page 201
`
`

`
`W098/45797
`
`PCf/US98/07150
`
`3
`
`if a credit limit is exceeded, the transaction might
`
`still be approved, within certain limits. Other
`
`variations include automating the process so that the
`
`credit card is swiped by the machinery, and only the
`
`5 purchase price has to be man ually entered. However,
`
`none of these variations are particularly relevant to
`
`the present invention. What is impor tant to learn from
`
`the background informa tion above is that typically no
`
`transaction takes place without having a swipe machine
`
`10 10 which can read the credit card number from the credit
`
`
`
`card. Furthermore, the swipe machine 10 functions as a
`
`dedicated link to the processing center 14, supplying
`
`the necessary information for the processing center 14
`
`to determine whether the transaction is allowable in
`
`15 light of a credit limit and present debt associated with
`
`the credit card number.
`
`It should be apparent from the explanation above
`
`that the equipment necessary for setting up a merchant
`
`with the ability' to make credit card transactions is
`
`\
`
`20 simply a credit card swipe machine 10. However, the fee
`
`structure associated with the swipe machine 10 is
`
`surprising. For instance, the typical cost of a swipe
`
`machine 10 is around $1000. Even if a swipe machine is
`
`rented, the cost is typically around $40.00 per month.
`
`25 Furthermore, there is typically a fee associated with
`
`accessing the processing center 14 via a swipe machine
`
`10.
`
`It would be an improvement over the state of the
`
`art to provide a method and apparatus for making credit
`
`30 card transactions which did not require the use of a
`
`credit card swipe machine. It would be a further
`
`improvement to eliminate or substantially reduce initial
`
`start-up costs of making credit card transactions, and
`
`possibly reduce the cost .of accessing the processing
`
`35 center information.
`
`Petitioner Askeladden - Exhibit 1002 - Page 202
`
`

`
`W098/45797
`
`PCf/US98/07150
`
`4
`
`OBJECTS AND SUMMARY OF THE �NVENTXON
`
`It is an object of the present invention to
`
`provide a method and apparatus for making credit card
`
`5 transactions with essentially no investment in
`
`dedicated transaction equipment. It is another
`
`object to provide a method and apparatus for making
`
`credit card transactions which does not require the
`
`use of a credit card swipe machine.
`
`10
`
`It is another object to provide a method and
`
`apparatus for making credit card transactions which
`
`avoids a high initial start-up cost.
`
`It is another object to provide a method and
`
`apparatus for making credit card transactions which
`
`15 utilizes facsimile transmission technology, optical
`
`character recognition software, and internet access
`
`equipment.
`
`It is another object to provide a method and
`
`apparatus fOr making affordable credit card
`
`20 transactions to merchants who would not otherwise
`
`perform enough transactions to justify the initial
`
`costs of conventional credit card transaction
`
`equipment.
`
`The present invention is realized in a method and
`
`
`
`25 apparatus for making credit card transactions which
`
`includes utilizing a facsimile machine for
`
`transmitting credit card information and purchase
`
`amount to an information processing center. The
`
`information processing center receives and converts
`
`30 the received information into an electronic format,
`
`and then accesses credit card account information via
`
`the Internet. A final disposition of the purchase is
`
`then transmitted to the merchant via facsimile which
`
`is either approval or disapproval of the transaction.
`
`Petitioner Askeladden - Exhibit 1002 - Page 203
`
`

`
`W098/45797
`
`PCI'/US98/07150
`
`5
`
`In a first aspect of the invention, the merchant
`only needs to have a facsimile machine for
`transmitting credit card and purchase amount
`informa tion. This eliminates the need for a dedicated
`5 credit card swipe machine.
`
`In another aspect of the invention, optical
`character recognition software converts the credit
`card and purchase amount information to an electronic
`format, a format which is therefore suitable for
`10 transmission to a credit card processing center.
`
`In another aspect of the invention, the total
`cost of a credit card transaction is substantially
`reduced to a relatively small access fee for credit
`card account informa tion, thereby making the process
`15 affordable for merchants who make limited and even
`insignificant credit card transactions.
`These and other objects, features, advantages and
`alternative aspects of the present invention will
`become apparent to those skilled in the art from a
`20 consideration of the following detailed description
`taken in combination with the accompanying drawings.
`
`BRXEP DESCR%PTXON OP TBE DRAWXNGS
`
`25
`
`Figure 1 is a block diagram of the basic prior
`art elements involved in a credit card transaction
`
`utilizing dedicated transaction equipment, including a
`credit card swipe machine.
`Figure 2 is a block diagram of a presently
`30 preferred embodiment of the present invention,
`
`including the facsimile machines and Internet access
`for reducing costs of credit card verification.
`
`Figure 3 is a close-up block diagram of the
`
`elements of the pre-processing center of the present
`
`35 invention.
`
`Petitioner Askeladden - Exhibit 1002 - Page 204
`
`

`
`W098/4S797
`
`PCf/US 981071SO
`
`6
`
`Figure 4A is top view of a preferred embodiment
`of a transmittal form utilized in conjunction with the
`apparatus of figure 2, which includes spaces for
`handwritten or typed block letters and numbers.
`Figure 4B is a top view of an alternative
`embodiment of a transmittal form utilized in
`conjunction with the apparatus of figure 2, which
`includes bubbles for darkening instead of spaces for
`block characters.
`Figure 4C is a top view of an alternative
`embodiment of a transmittal form utilized in
`conjunction with the apparatus of figure 2 which
`combines block characters and bubbles for darkening.
`
`5
`
`10
`
`15
`
`DETAiLED
`
`DESCRIPTION OF TBE INVENTION
`
`Reference will now be made to the drawings in
`which the various elements of the present invention
`will be given n�erical defignations and in which the
`20 invention will be discussed so as to enable one
`skilled in the art to make and use the invention. It
`is to be understood that the following description is
`only exemplary of the principles of the present
`invention, and should not be viewed as narrowing the
`25 claims which follow.
`The preferred embodiment of the present invention
`comprise� both a method and apparatus for making
`credit card transactions which is advantageously more
`cost effective than the prior art. Specifically, the
`30 cost of a credit card swipe machine 10 (see figure 1)
`is avoided by utilizing an alternative method of
`sending credit card information to a credit card
`processing or informa tion center 14. By not using a
`credit card swipe machine, the high initial purchase
`35 price or relatively high rental fee is avoided.
`
`Petitioner Askeladden - Exhibit 1002 - Page 205
`
`

`
`W098/45797
`
`P<:.TIUS98/07150
`
`7
`
`A brief summa ry of the method and apparatus of
`
`the present invention is therefore as follows.
`
`Instead of using the swipe machine 10, figure 2 shows
`
`that the presently preferred embodiment of the present
`
`5 invention contemplates utilizing a first facsimile
`
`machine 20 at the site of the transaction 28.
`
`Accordingly, a merchant or a customer fills out a
`
`transmittal form 22 by handwriting or typing relevant
`
`information. The relevant information required for
`
`10 the process is the amount of the purchase, and
`
`information which can identify the credit card
`
`account. It may also be necessary to provide a name
`
`of the customer as well. It should also be observed
`
`that if address verification of the card holder is
`
`15 submitted, including the ZIP code, that the lowest
`
`rate is obtained for verification of account
`
`information. Therefore, it should be understood that
`
`the amount and type of information which is submitted
`
`via the tra12.smittal form 22 can vary substantially,
`20 depending upon the interests of the merchant and the
`
`card holder.
`
`Once a transmittal form 22 has been completed,
`
`the merchant transmits it via the first facsimile
`
`machine 20. To avoid the cost of typical long
`
`
`
`25 distance telephone rates, the merchant advantageously
`
`dials a toll free number of a pre-processing center
`
`24. The.pre-processing center 24 is an intermediate
`location between the credit card processing center 14
`
`and the location 28 of the merchant. A second
`
`30 facsimile machine 26 at the pre-processing center 24
`
`receives a facsimile of the transmittal form 22 which
`
`was sent from the merchant via the first facsimile
`
`machine 20.
`
`The next step is to process the transmittal form
`
`35 22. Processing typically includes converting the
`
`Petitioner Askeladden - Exhibit 1002 - Page 206
`
`

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`information into a format which is required by the
`credit card processing information center 14. In the
`most basic sense, this means preparing the information
`to be transmitted in an electronic format which is
`5 different from the electronic format of the facsimile
`transmission. This typically means a digital data
`format. Once converted, the data is then transmitted
`to the credit card processing information center 14.
`The credit card processing information center 14
`10 determines whether the credit card transaction is
`approved or disapproved based upon criteria which are
`not relevant to the present invention. What is
`
`important is that the approval status, either positive
`
`or negative, is then transmitted back to the pre-
`
`15 processing center 24. From there, the approval status
`is transmitted to the merchant's location 28 via
`
`facsimile from the second facsimile machine 26 to the
`
`
`
`first facsimile machine 20.
`
`These surprisingly simple steps not only result
`
`20 in a substantial savings to merchants in processing a
`
`credit card transaction, they also enable businesses
`to accept credit cards for purchases which would
`
`otherwise be turned away because of the prohibitively
`
`high initial costs of using typical credit card access
`
`25 methods and apparatus.
`Although the preferred embodiment in itself
`
`offers surprising advantages in cost reduction, there
`
`
`
`are man y details of the process and alternatives which
`
`bear explanation. First, processing of the
`
`30 transmittal form is preferably automated to make the
`
`
`
`overall process not only more free from human
`
`error,
`
`
`but also less labor intensive. Consequently, figure 3
`shows that the transmittal form 22 is preferably
`
`
`
`delivered automatically from the second facsimile
`
`35 machine 26 to a document reader 30. The document
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`reader 30 scans the transmittal form 22 for the
`relevant information. When the information is
`retrieved, it is then transmitted via a general
`purpose computer 32 which has access to the Internet
`5 38.
`
`The document reader 30 can operate in various
`ways depending upon the format by which the
`information is recorded on the transmittal form 22.
`For example, figure 4A shows that the tran smittal form
`10 22 can have predefined spaces 34 for letters and
`numbers to be written in block format. Alternatively,
`figure 4B shows that the predefined spaces can consist
`of bubbles 36 which are darkened by pencil or pen as
`is commonly known in the art. Another option as shown
`15 in figure 4C is to combine the block letters and
`numbers 34 with the darkening of bubbles 36 to provide
`more accuracy. What is important to realize from the
`embodiments of the transmittal form 22 is that many
`different types of forms which encode data in
`20 different ways can all be utilized by the present
`invention. However, it is an advantageous concept
`that the transmittal form can be submitted via
`facsimile.
`While it has been suggested that the only
`25 information contained the transmittal form 22 is
`purchase amount and card holder identification and
`account informa tion, it is another advantageous
`concept to include more informa tion. For example, it
`is possible that a portion of the transmittal form 22
`30 be standardized purchase amount and identification
`information as previously described. The remaining
`portion of the transmittal form 22 is dedicated to
`product information. For example, the product
`
`information might also include order information. In
`35 this way, a card holder could submit the transmittal
`
`Petitioner Askeladden - Exhibit 1002 - Page 208
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`fonm 22 which specifically identifies a product(s)
`
`that is to be purchased, along with the accompanying
`
`purchase. amount, card holder and account
`
`identification infonmation. Consequently, a complete
`
`5 credit card transaction can take place when the
`
`transmittal form 22 is submitted to the pre-processing
`
`center 24.
`
`While the purpose of the transmittal form 22 is
`
`to make it as simple as possible to obtain credit card
`
`10 account information and purchase information, it must
`
`be remembered that the nature of the information is
`
`sensitive financial data, the possession of which
`
`would enable anyone to make credit card purchases.
`
`Therefore, it is possible to enable encryption of
`
`15 information through the use of an encryption key. In
`
`this way, the facsimile machines can be ordinary
`
`machines, and not costly machines which have
`
`specialized hardware, software or firmw are.
`
`Because of the na�ure of the information being
`.
`20 transmitted, it is also possible
`that the transmitting
`
`merchant will desire to receive confirmation that the
`
`credit card informa tion was received by the intended
`
`recipient. In other words, the merchant will feel
`
`more confident in the process if after transmitting
`
`25 the infonmation, the second facsimile machine 26 at
`
`the pre-processing center 24 sends back confirmation
`
`of the information received. This confirmation could
`
`be a simple acknowledgement that information was
`
`received without going into specifics. Alternatively,
`
`30 the confirmation could include all the information
`
`which was transmitted and read electronically. In
`
`this way, the confirmation could not only assure the
`
`sender that the information was received, but that it
`
`was correctly understood by the document reader 30 of
`
`35 the automated pre-processing center 24.
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`Petitioner Askeladden - Exhibit 1002 - Page 209
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`In another aspect of the confirma tion process, it
`is envisioned that the pre-processing center 24 might
`
`be able to identify the source of an error when one
`
`occurs, or at least provide some helpful information
`
`5 to the merchant about why the error as occurred.
`Once the credit card and purchase amount
`information is received at the pre-processing center
`24, the informa tion is converted into an electronic
`format. In other words, the information is digitized
`10 because that is what the credit card processing
`informa tion ce�ter 14 expects to receive, whether from
`an interface to the credit card swipe machines, or via
`
`the Internet 38.
`A first aspect of the digitization process
`15 concerns the specific method and apparatus used to
`actually "readn the transmittal form 22 and digitize
`the informa tion. In the preferred embodiment, the
`document reader 30 accomplishes its function by way of.
`optical character recognition software being run on a
`20 general purpose computer. Of course, this assumes
`
`that the transmittal form 22 has handwritten or typed
`block letters and numbers, and not just the darkened
`bubbles which would not require as sophisticated a
`system. However, in the interests of ease of use and
`25 to make the process as fast as possible (and thus
`
`still convenient for the customer), the' preferred
`method of filling out the transmittal form 22 is to
`exclusively use block characters. Those skilled in
`
`the art of optical character recognition software and
`30 hardware understand how the system is able to function
`
`as desired.
`
`In an issue relating back to the confirmation
`
`notification, it is a part of the method and apparatus
`
`that after the information has been digitized by the
`
`35 optical character recognition software and hardware,
`
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`that the information should be checked for errors.
`
`Although it is understandably impossible to determine
`
`whether the merchant has transmitted all of the
`
`correct information unless it is sent back to the
`
`5 merchant, it might be possible to determine whether a
`
`number is missing in the credit card account, or if
`
`the expiration date of the card is valid.
`
`In another aspect of the digitization process, it
`
`should be apparent that there is more than one way to
`
`10 digitize the informa tion. For example, digitizing
`
`includes not only replacing numbers and letters with a
`
`computer equivalent such as in a binary or hexadecimal
`
`based forma t, it also includes the ability to encode
`
`the data before it is transmitted to the credit card
`
`15 processing information center 14. In this way,
`
`security of the informa tion is more assured than if no
`
`encoding is carried out. Again, the likely method is
`
`to use encryption keys which are automatically used in
`
`the automated process.
`
`20
`
`Once the informa tion is digitized and ready for
`
`transmission to the credit card processing information
`
`center 14, access thereto is provided by utilizing the
`
`Internet 38 as shown in figure 3. Specifically, a
`
`general purpose computer 32 located at the pre-
`
`25 processing center 24 connects to the Internet 38 via
`
`any Intern service provider, or through a dedicated
`
`connection thereto. Accessing the credit card
`
`processing information center 14 via the Internet 38
`
`avoids the more proprietary access path of the swipe
`
`30 machines. Furthermore, whereas a swipe machine 10
`
`must access the credit card processing information
`center 14 through a toll call via a publicly switched
`
`telephone network, the present invention utilizes the
`
`Internet 38, and thus avoids any long distance calling
`
`35 charges. By placing a plurality of pre-processing
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`centers 24 in major cities, interstate telephone calls
`can be eliminated from the entire system. Only intra­
`state local and long distance calls are then required
`to access the pre-processing center 24. By obtaining
`5 bulk calling rates utilizing a toll free number and by
`further reducing the cost by making all calls local,
`the present invention obtains even more savings.
`Utilizing the Internet 38 for transmission of
`
`digital data raises more issues about the format of
`10 the digital data. For example, transmission of data
`via the Internet 38 requires that the data be.properly
`prepared for transmission. This means that the data
`is encapsulated within packets of informa tion. The
`
`packets are prepared in accordance with standard
`15 Internet protocols. For example, the transmission
`control protocol/internet protocol (TCP/IP) is a
`common Internet forma t. Even the encoded data can be
`packeted for transmission utilizing a selected
`Internet protocol.
`Once the credit card processing information
`
`20
`
`center 14 has determined whether the credit card
`transaction is approved or rejected, an approval
`status code is typically transmitted to the merchant.
`In the present invention, the approval status code is
`25 first transmitted to the pre-processing center 24.
`The approval status code is first un-encapsulated from
`its Internet protocol. If the approval status code
`was also encoded, it is then un-encoded. Finally, the
`second facsimile machine 26 transmits the approval
`30 status code, whether it is positive or negative, to
`the merchant.
`
`It is an important aqd an advantageous principle
`
`of the present invention to realize that the first
`facsimile machine 20 being used by the merchant can be
`35 replaced with a general purpose computer which is
`
`Petitioner Askeladden - Exhibit 1002 - Page 212
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`capable of facsimile transmissions. Such a general
`
`purpose computer would include an electronic form of
`
`the transmittal form 22. The merchant will
`type in
`
`the information, and then transmit the transmittal
`
`5 form via a facsimile