(12) United States Patent
`US 7,865,448 B2
`(10) Patent N0.:
`Pizarro
`
`(45) Date of Patent: Jan. 4, 2011
`
`USOO7865448B2
`
`(54) METHODS AND SYSTEMS FOR
`PERFORMING CREDIT TRANSACTIONS
`WITH A WIRELESS DEVICE
`
`(75)
`
`Inventor: Christian A. Pizarro, Boonsboro, MD
`(US)
`
`(73) Assignee: First Data Corporation, Greenwood
`Village, CO (US)
`
`( * ) Notice:
`
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 1614 days.
`
`(21) Appl.No.: 10/969,780
`
`(22)
`
`Filed:
`
`Oct. 19, 2004
`
`(65)
`
`Prior Publication Data
`
`US 2006/0085357 A1
`
`Apr. 20, 2006
`
`(51)
`
`Int. Cl.
`(2006.01)
`G06Q 20/00
`(52) US. Cl.
`............................. 705/65; 705/39; 705/40;
`705/51; 705/67; 709/229; 235/380
`(58) Field of Classification Search ................... 705/64,
`705/39, 40, 51, 65, 67; 707/229; 235/380
`See application file for complete search history.
`
`(56)
`
`References Cited
`U.S. PATENT DOCUMENTS
`
`6,859,791 B1 *
`2004/0030659 A1 *
`
`2006/0006226 A1 *
`2006/0016880 A1 *
`2006/0047835 A1 *
`2006/0069642 A1*
`2006/0085333 A1 *
`
`2/2005 Spagna et a1.
`2/2004 Gueh
`
`................. 705/51
`705/67
`
`
`l/2006 Fitzgerald et a1.
`........... 235/380
`l/2006 Singer et a1.
`................ 235/380
`3/2006 Greaux ................ 709/229
`
`3/2006 Doran et al.
`705/39
`..................... 705/40
`4/2006 Wah et al.
`
`2006/0085357 A1*
`
`4/2006 Pizarro ........................
`
`70 5/64
`
`FOREIGN PATENT DOCUMENTS
`
`W0
`W0
`W0
`W0
`W0
`
`WO 98/34203 A
`WO 98/47116 A
`W0 02/052879 A
`W0 03/067506 A
`WO 2004/049621 A
`
`8/1998
`10/1998
`7/2002
`8/2003
`6/2004
`
`OTHER PUBLICATIONS
`
`EP extended Search Report mailed Oct. 13, 2009; Application No.
`058196627, 9 pages.
`
`* cited by examiner
`
`Primary ExamineriPierre E Elisca
`Assistant Examinerishahid Kamal
`
`(74) Attorney, Agent, or FirmiTownsend and Townsend and
`Crew LLP
`
`(57)
`
`ABSTRACT
`
`Methods and systems are provided of initiating a wireless
`device for use in performing transactions. A wireless com-
`munication is received from the wireless device at a host
`
`system. The wireless communication identifies a financial
`account to be authorized for use in supporting transactions. A
`location-positioning signal is received at the host system. The
`location-positioning signal identifies a geographical location
`for the wireless device at a time when the wireless commu-
`
`nication is received at the host system. The geographical
`location is determined from the location-positioning signal.
`An authorized address for the financial account is retrieved
`
`from a storage device in communication with the host system.
`It is verified that the geographical location is at a position
`substantially the same as the authorized address. Information
`defining an account transaction mechanism is transmitted
`wirelessly to the wireless device. The information includes an
`identification of the financial account.
`
`22 Claims, 5 Drawing Sheets
`
`Finnncial
`Institution
`
`218-2
`
`216-3
`
`,.
`
`2183
`
`216-1
`
`Financial
`
`Institution
`
`
`5 stern
`
`
`
`224
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`U.S. Patent
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`Jan. 4, 2011
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`Sheet 2 of 5
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`US 7,865,448 B2
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`U.S. Patent
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`Jan. 4, 2011
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`Sheet 3 of 5
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`US 7,865,448 B2
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`312
`
`304
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`Wireless Chip
`
`316
`
`320
`
`324
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`204
`
`
`
`PCS-Device
`Controller
`
`Internet Port
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`224¥N
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`340
`
`Wireless-Device
`
`
`
`344
`
`-
`
`Fig. 3A
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`352
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`356
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`360
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`368
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`GPS Chip
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`RFID Chip
`
`Wireless Chip
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`Cryptography
`Chip
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`372
`
`376
`
`Biometric
`System
`
`Camera
`
`VR Chip
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`380
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`384
`
`Fig. 3B
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`Fingerprint
`Scanner
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`388
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`U.S. Patent
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`Jan. 4, 2011
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`Sheet 4 of 5
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`US 7,865,448 B2
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`Customer Purchases Wireless
`Device
`
`
`
`Customer Provides Credentials
`to Financial Institution
`
`
`
`Customer Contacts Financial
`Institution with Wireless Device
`
`
`
`Customer Provides Account
`Information
`
`Financial Institution Verifies
`Location of Wireless Device
`
`
`
`Financial Institution Verifies
`
`Customer Biometric Information
`
`Financial Institution Downloads
`Account Transaction-Mechanism
`Software to Wireless Device
`
`Customer Establishes
`
`Encryption Key on Wireless
`Device
`
`404
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`408
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`412
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`416
`
`420
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`424
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`428
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`432
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`Fig. 4A
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`U.S. Patent
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`Jan. 4, 2011
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`Sheet 5 of 5
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`US 7,865,448 B2
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`
`
`Customer Visits Merchant
`
`Customer Selects Goods and/or
`Services for Purchase
`
`
`
`.
`.
`.
`Transaction Information Transmitted
`
`
`
`Wirelessly from Point-of—Sale Device to
`Wireless Device
`
`Customer Views List of Account
`Transaction Mechanisms Loaded on
`Wireless Device
`
`
`
`Customer Selects Account Transaction
`Mechanism to be Used
`
`Wireless Device Verifies Customer
`
`
`
`Biometrically
`
`.
`.
`.
`Wireless DeVIce Transmits Account
`
`
`
`Information and Key to Point-of-Sale
`Device
`
`Point-of-Sale Device Transmits Approval
`Request to Financial Institution
`
`Information and Authorizes Transaction
`
`Financial Institution Verifies Account
`
`440
`
`444
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`448
`
`452
`
`456
`
`460
`
`464
`
`468
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`472
`
`480
`
`Financial Institution Initiates Immediate
`
`Transfer of Funds to Merchant Account
`
`476
`
`Financial Institution Holds Transaction
`
`for Later Batch Funding of Merchant
`
`Account
`
`Fig. 43
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`US 7,865,448 B2
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`1
`METHODS AND SYSTEMS FOR
`PERFORMING CREDIT TRANSACTIONS
`WITH A WIRELESS DEVICE
`
`BACKGROUND OF THE INVENTION
`
`This application relates generally to use of wireless tech-
`nology. More specifically, this application relates to perform-
`ing transactions with a wireless device.
`In recent years, there has been considerable market pres-
`sure driving the development of more versatile ways of per-
`forming transactions. This is evident in the development of
`transaction products that supplement traditional credit cards,
`such as debit cards, stored-value cards, private-label cards,
`loyalty-program cards, prescription cards, insurance cards,
`and the like. This development has been coupled with increas-
`ing pressures to address the potential for fraud, which has
`become ofgreater concern with the proliferation ofnew trans-
`action products and with steadily more sophisticated tech-
`niques for committing fraud.
`One example of the manner in which transactions are cur-
`rently executed is illustrated with a credit-card transaction in
`connection with FIG. 1. A credit card may be issued to a
`customer by a financial institution such as a bank and typi-
`cally displays a logo for an association that implements rules
`that govern aspects of use of the card. Account information is
`usually printed on the face of the card, specifying an account
`number and name of an authorized holder of the card; this
`information is also stored together with additional informa-
`tion on a magnetic stripe that is usually affixed to the back of
`the card. When the cardholder wishes to execute a transaction,
`such as a financial transaction for the purchase of goods
`and/or services, he presents the card 120 to a clerk at a
`merchant location, who swipes the card through a magnetic-
`stripe reader comprised by a point-of-sale device 108. Mul-
`tiple point-of-sale devices 108 may have been provided at a
`variety of locations by an acquirer, who acts as an intermedi-
`ary between merchants and the issuer financial institutions.
`As an intermediary, the acquirer coordinates transaction rout-
`ing and performs a variety of backend processes.
`The point-of-sale device 108 typically initiates a dialup
`connection to an acquirer system 112 through a network 104.
`A packet of information that includes information read from
`the magnetic stripe ofthe card, a merchant identifier, the date,
`and transaction amount are forwarded by the point-of-sale
`device 108 through the network 104 to the acquirer system
`112. The acquirer system 112 may store some of the infor-
`mation and sends an authorization request to the issuing
`financial institution 116, which may be identified from a
`portion of the account number read from the magnetic stripe.
`The transaction is authorized or denied depending on such
`factors as the validity of the cardholder name, the validity of
`the card number, the level of available credit in comparison
`with the transaction amount, and the like. If authorized, an
`authorization code is routed back through the acquirer system
`112, which captures additional information and forwards the
`authorization code back to the originating point-of-sale
`device 108 so that the transaction may be completed. Periodi-
`cally, such as at the end of every day, the transactions are
`settled by the acquirer initiating funds transfers that fund
`merchant bank accounts with total transaction amounts that
`
`may have resulted from multiple transactions by multiple
`customers.
`
`Other types of cards may operate with similar structures,
`although the details for each type of card are different. For
`example, use of a debit card typically requires that the cus-
`tomer provide a personal
`identification number (“PIN”),
`
`2
`
`which must be validated before any authorization for the
`transaction can be provided. Authorization usually depends
`on the current level of funds actually in the identified account
`rather than on a credit level, and funds transfer is usually
`executed substantially contemporaneously with providing
`the authorization rather than performing periodic settlement.
`Other types of cards may use arrangements that have similar
`differences in their particulars.
`The proliferation of various types of transaction instru-
`ments has resulted in consumers limiting their use of some
`instruments, in part because there is only a limited amount of
`space in each person’s wallet or purse to carry the instruments
`and because ofconcerns that theft ofthe wallet or purse would
`result in loss of all the instruments. There is accordingly a
`need in the art for improved methods and systems for per-
`forming transactions.
`
`BRIEF SUMMARY OF THE INVENTION
`
`Embodiments of the invention thus make use of a wireless
`
`device, such as a cellular telephone, that may hold informa-
`tion for one or more accounts to execute transactions. The
`
`wireless device exchanges information wirelessly with a
`point-of-sale device in performing transactions.
`Thus, in a first set of embodiments, a method is provided of
`initiating a wireless device for use in performing transactions.
`A wireless communication is received from the wireless
`
`device at a host system. The wireless communication identi-
`fies a financial account to be authorized for use in supporting
`transactions. A location-positioning signal is received at the
`host system. The location-positioning signal identifies a geo-
`graphical location for the wireless device at a time when the
`wireless communication is received at the host system. The
`geographical location is determined from the location-posi-
`tioning signal. An authorized address for the financial account
`is retrieved from a storage device in communication with the
`host system. It is verified that the geographical location is at
`a position substantially the same as the authorized address.
`Information defining an account transaction mechanism is
`transmitted wirelessly to the wireless device. The information
`includes an identification of the financial account.
`
`In some such embodiments, the wireless device comprises
`a cellular telephone, in which case the wireless communica-
`tion may comprise a cellular telephone call from the cellular
`telephone. In one embodiment, biometric information read
`from a person initiating the wireless communication is
`received at the host system from the wireless device and a
`biometric record associated with the financial account is
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`retrieved from the storage device. The biometric information
`is confirmed to be consistent with the biometric record to
`
`identify the person as authorized under the financial account.
`In another embodiment, biometric information read from a
`person initiating the wireless communication is also received
`at the host system, and is stored on the storage device. In
`further embodiments, a second communication may be
`received from the wireless device at the host system, with the
`second communication including an encryption key that is
`stored on the wireless device. In an alternative embodiment,
`an electromagnetic identification code for the wireless device
`is received at the host system from the wireless device and
`stored on the storage device. The account may comprise a
`credit account, a debit account, or a stored-value account,
`among others.
`In a second set of embodiments, a method is also provided
`of initiating a wireless device for use in performing transac-
`tions.Awireless communication is transmitted from the wire-
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`US 7,865,448 B2
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`3
`identifies a financial account to be authorized for use in sup-
`porting transactions. A location-positioning signal is trans-
`mitted from the wireless device. Information defining an
`account transaction mechanism is wirelessly received at the
`wireless device from the host system after the host system
`confirms that a geographical location identified by the loca-
`tion-positioning signal is at a position substantially the same
`as an authorized address for the financial account.
`
`In some such embodiments, the wireless device comprises
`a cellular telephone and the wireless communication com-
`prises a cellular telephone call from the cellular telephone. In
`one embodiment, biometric information is measured with the
`wireless device from a person initiating the wireless commu-
`nication. A biometric record is retrieved from a storage device
`comprised by the wireless device. The biometric information
`is confirmed to be consistent with the biometric record to
`
`identify the person as authorized to use the wireless device. In
`another embodiment, biometric information is also measured
`with the wireless device from a person initiating the wireless
`communication, and is transmitted from the wireless device
`to the host system. In a further embodiment, an encryption
`key is generated with the wireless device and transmitted to
`the host system. In one embodiment, an electromagnetic
`identification code for the wireless device is transmitted from
`
`the wireless device to the host system.
`In a third set of embodiments, a method is provided of
`performing a transaction. A specification of terms for the
`transaction is received at a point-of-sale device. The terms
`include a transaction amount and an identification of a wire-
`
`less device. At least some of the terms, including the transac-
`tion amount, are transmitted wirelessly from the point-of-sale
`device to the identified wireless device. Information identi-
`
`fying a financial account to be used in supporting the trans-
`action is received wirelessly at the point-of-sale device from
`the wireless device. A request for approval of the transaction
`is transmitted to a financial
`institution. The request for
`approval includes an identification of the financial account
`and the transaction amount. An approval of the transaction is
`received from the financial institution.
`In some of these embodiments, the financial account com-
`prises a credit account, in which case the financial institution
`transfers funds to a merchant account and augments an out-
`standing balance of the credit account. In other of these
`embodiments,
`the financial account comprises a debit
`account, in which case the financial institution transfers funds
`to a merchant account and decrements a balance of the debit
`account. In still other of these embodiments, the financial
`account comprises a stored-value account, in which case the
`financial institution transfers funds to a merchant account and
`decrements a balance of the stored-value account. In one
`
`embodiment, the information received at the point-of-sale
`device from the wireless device comprises biometric infor-
`mation read from a person operating the wireless device. The
`request for approval of the transaction includes the biometric
`information to enable the financial institution to compare the
`biometric information with a stored biometric record associ-
`
`ated with the financial account in approving the transaction.
`In some instances, a receipt of the transaction may be printed
`by the point-of-sale device.
`In a fourth set of embodiments, a method is provided of
`performing a transaction. Terms for a transaction are received
`wirelessly at a wireless device from a point-of-sale device.
`The terms include a transaction amount. A specification is
`received at the wireless device of an account transaction
`
`mechanism to be used in supporting the transaction. Informa-
`tion related to the account transaction mechanism, including
`an identification of a financial account, is retrieved from a
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`storage device comprised by the wireless device. The infor-
`mation is transmitted wirelessly to the point-of-sale device.
`In some such embodiments, biometric information may be
`measured with the wireless device from a person operating
`the wireless device. A biometric record is retrieved from the
`
`storage device, and it is confirmed that the biometric infor-
`mation is consistent with the biometric record to identify the
`person as authorized to use the wireless device. In other such
`embodiments, biometric information is measured with the
`wireless device from a person operating the wireless device.
`The biometric information is transmitted from the wireless
`
`device to the point-of-sale device.
`Some methods of the invention may be embodied on a
`wireless device comprising an antenna, a location-position-
`ing chip, and a controller. The antenna permits wirelessly
`transmitting and receiving electromagnetic signals. The loca-
`tion-positioning chip is adapted to transmit a location-posi-
`tioning signal from the wireless device. The controller is
`coupled with the storage device and adapted to control the
`antenna and location-positioning chip to initiate the wireless
`device for use in performing transactions as described above.
`Other methods of the invention may be embodied on a
`wireless device comprising an antenna, an input device, and a
`controller. The antenna permits wirelessly transmitting and
`receiving electromagnetic signals. The input device is oper-
`able by a person operating the wireless device. The controller
`is coupled with a storage device and adapted to control the
`antenna and input device to perform a transaction as
`described above.
`
`Still other methods of the invention may be embodied in a
`point-of-sale device comprising an antenna, an input device,
`an output device, and a controller. The antenna permits wire-
`lessly transmitting and receiving electromagnetic signals.
`The controller is coupled with a storage device and is adapted
`to control the antenna and the input and output devices to
`perform a transaction as described above.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`A further understanding ofthe nature and advantages ofthe
`present invention may be realized by reference to the remain-
`ing portions of the specification and the drawings wherein
`like reference numerals are used throughout the several draw-
`ings to refer to similar components. In some instances, a
`sublabel is associated with a reference numeral and follows a
`
`hyphen to denote one of multiple similar components. When
`reference is made to a reference numeral without specifica-
`tion to an existing sublabel, it is intended to refer to all such
`multiple similar components.
`FIG. 1 provides a schematic illustration of a prior-art archi-
`tecture used for processing transactions;
`FIG. 2 provides an architecture used in one embodiment of
`the invention for processing transactions;
`FIG. 3A provides a schematic illustration of a structure of
`a point-of- sale device that may be used in embodiments ofthe
`invention;
`FIG. 3B provides a schematic illustration of a structure of
`a wireless device that may be used in embodiments of the
`invention;
`FIG. 4A provides a flow diagram illustrating a method for
`initiating a wireless device to be used in processing transac-
`tions in accordance with the invention; and
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`5
`FIG. 4B provides a flow diagram illustrating a method for
`processing transactions in accordance with the invention.
`
`DETAILED DESCRIPTION OF THE INVENTION
`
`Embodiments of the invention make use of wireless
`
`devices to exchange information as part of systems and meth-
`ods for processing transactions. As used herein, references to
`“wireless” exchanges of data are intended to refer to data
`exchanges made through the transmission of electromagnetic
`signals and are distinct from data exchanges that use physical
`connections such as copper wiring or optical fibers. A “wire-
`less device” is a device that receives and transmits data wire-
`
`lessly. In some instances, a wireless device may comprise a
`cellular device such as a cellular telephone or a handheld
`cellular email device. One example ofa wireless protocol that
`may be used for implementing wireless transmissions is the
`IEEE 802.1 lb protocol, which is sometimes referred to in the
`art as implementing “Wi-Fi” transmissions.
`Storage capacity on such wireless devices is used to record
`information regarding a number of account
`transaction
`mechanisms, each of which may have a counterpart in a
`traditional arrangement oftransaction mechanisms embodied
`on individual cards. That is, one transaction mechanism may
`be a credit transaction mechanism in which a customer
`
`charges funds against a defined line of credit. Another trans-
`action mechanism may be a debit transaction mechanism in
`which a customer decrements value in a defined account in
`
`substantially real time to support a transaction. A further
`transaction mechanism may be a stored-value transaction
`mechanism, which is similar in some respects to the debit
`transaction mechanism. While the account decremented as
`
`part of a debit transaction mechanism may be debited in
`multiple waysisuch as by writing a check, by making a cash
`withdrawal, etc.ithe account decremented as part of a
`stored-value transaction mechanism generally provides
`fewer options. In some cases, the only way to decrement such
`a stored-value account is with the stored-value transaction
`
`mechanism. The various transaction mechanisms may be
`augmented as described below to provide for loyalty pro-
`grams, in which customers may accumulate points or cur-
`rency that may be exchanged for bonus goods and/services in
`exchange for use of the transaction mechanisms.
`transaction
`With information regarding the account
`mechanisms stored on the wireless device, the wireless device
`may be used as a surrogate for any of the cards that were
`previously used in executing transactions. A general over-
`view of an architecture that may be used is provided in FIG.
`2, with the wireless device 224 shown for exemplary purposes
`in the form of a cellular telephone. The wireless device 224
`may communicate according to its normal wireless protocols
`with an existing network ofrelay stations 220. In addition, the
`wireless device 224 may communicate wirelessly with point-
`of—sale devices 204 that have been equipped for wireless
`communications, such as through a secure Wi-Fi connection.
`Communications with the financial institutions 216 that man-
`
`age the accounts identified for the account transaction mecha-
`nisms may be made in a number of different ways. For
`example, an Internet 208 facility may be used to provide
`communications between the point-of-sale devices 204 and
`host systems 218 ofthe financial institutions 216 that perform
`the actual processing functions. Alternatively, a wireless
`communications system 220 may be used, permitting com-
`munications with the financial institutions to be made either
`
`from the point-of-sale devices 204 or from the wireless device
`224 itself. Each host system 218 generally includes a proces-
`sor, a memory device, and communications interfaces to
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`enable the described functionality. Communications among
`the host systems 218 of the financial institutions 216 as may
`be used in effecting transfers of funds to settle transactions
`may be made with a separate financial network 212. Usually
`the financial network 212 has enhanced security and crypto-
`graphic protocols to prevent unauthorized access to the sen-
`sitive financial communications that it routes.
`
`The information regarding the account transaction mecha-
`nisms generally identifies the account to be used in support-
`ing transactions, including an indication ofthe financial insti-
`tution 216 where that account
`is maintained. Such
`
`identifications may conveniently be made with numerical
`strings similar to card numbers that have portions that identify
`a financial
`institution and portions that
`identify specific
`accounts. Additional
`information may include ownership
`details of the account, current balance levels for the account,
`and the like.
`In addition,
`the information regarding the
`account may include graphical information to display a logo
`for the account, which may be displayed whenever informa-
`tion related to the account is accessed by the customer.
`The wireless device may conveniently include software
`that allows a customer to review accounts that are identified
`for the account transaction mechanisms, such as in the form
`ofan additional menu added to existing menu functionality of
`the wireless device 224. In some embodiments, each of the
`account transaction mechanisms follows a standardized for-
`
`mat, permitting customized financial and nonfinancial appli-
`cations to be provided through exchange of information
`between the account transaction mechanisms.
`
`Exemplary structures for both the point-of-sale device 204
`and for the wireless device 224 are illustrated schematically
`in FIGS. 3A and 3B. Operations performed by the point-of-
`sale device are generally coordinated by a controller 304,
`which is provided in electrical communication with a number
`of components. Such components include an antenna 312 for
`transmitting and receiving electromagnetic signals and a
`wireless chip 316 that provides instructions for implementing
`a wireless protocol, such as a Wi-Fi protocol. The wireless
`chip 316 performs a more active role than the antenna 312,
`determining what electromagnetic signals to transmit over
`the antenna 312 and/or interpreting electromagnetic signals
`that are received by the antenna 312. A port may be provided
`to permit the exchange of wired communications with the
`point-of-sale device 204, one example of the port being a
`TCP/IP port that enables the point-of-sale device 204 to
`engage in Internet communications. A printer interfaced with
`the controller 304 permits receipts and other documents to be
`printed by the point-of-sale device 204. In addition to such
`components, the controller may be interfaced with a memory
`308, allowing the point-of-sale device 204 to store data in
`implementing methods of the invention.
`The wireless device 224 similarly includes a controller 340
`for coordinating the functions of a variety of components and
`includes a memory 344 interfaced with the controller 340 for
`storing data. Several of the components that may be con-
`trolled by the controller 340 include components used for
`standard functionality of the wireless device 224. For
`instance, in embodiments where the wireless device 224 is a
`cellular telephone, the controller may be interfaced with a
`microphone 352, a speaker 356, and an antenna 348. The
`microphone 352 and speaker 356 may be used to receive and
`amplify voice signals that are exchanged by users of the
`cellular telephone. The antenna 348 may be used to transmit
`and receive electromagnetic signals that correspond to
`encoded versions of the voice signals being exchanged.
`Other components may include a global positioning sys-
`tem 360 that may be used to locate a position of the wireless
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`Unified EX1007 Page 9
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`US 7,865,448 B2
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`device. Such a global positioning system 360 functions by
`transmitting an electromagnetic signal to an orbiting satellite
`that identifies a relative location ofthe source ofthe signal and
`correlates that relative position with a geographical map of a
`region of the Earth. A radio-frequency identification
`(“RFID”) chip may also be provided to transmit an electro-
`magnetic identification signal that uniquely identifies the
`wireless device. While an RFID chip operates specifically at
`radio frequencies, the invention is not limited to operation at
`such frequencies and may use any electromagnetic identifi-
`cation signal. A wireless chip 364 similar to the wireless chip
`316 provided in the point-of-sale device 204 may be provided
`to encode and decode transmissions sent and received elec-
`
`tromagnetically with the antenna 348. Because transmissions
`involving the account transaction mechanisms include sensi-
`tive financial data such as account numbers, an cryptography
`chip 372 may also be provided to allow encryption of data
`sent by the wireless device and decryption of data received by
`the wireless device. Furthermore, additional security may be
`provided through use ofa biometric system 376 that functions
`to use biometric data in verifying the identity of a user of the
`wireless device. The biometric system 376 includes an
`instruction module that implements an identification tech-
`nique and may include a number of subcomponents that are
`used in collecting data to be used in performing such identi-
`fications. For example, the biometric system 376 may com-
`prise a camera that may be used to record optical and other
`visible features of a user, such as a facial geometry or retinal
`structure that may be used in identifying the user. Alterna-
`tively or in addition, the biometric system 376 may comprise
`a voice-recognition chip 384 having the capability of analyz-
`ing frequency-change patterns in acoustic signals to correlate
`those patterns with known patterns of the individual to be
`identified. Similarly, the biometric system 376 may addition-
`ally or alternatively comprise a fingerprint scanner 388 that
`receives fingerprint patterns on a sensor provided on an exte-
`rior ofthe wireless device and correlates those patterns with a
`recorded pattern known to be associated with a particular
`user. As described below, in different embodiments the refer-
`ence biometric patterns may be stored locally on the memory
`308 so that identification is performed locally by the wireless
`device, or may be stored remotely so that the identification is
`performed remotely.
`The structure described in connection with FIGS. 2-3B
`
`may thus be used in implementing methods for processing
`transactions. To use a particular account transaction mecha-
`nism, the wireless device may undergo an initiation phase.
`Such initiation is illustrated with the flow diagram ofFIG. 4A.
`After such an initiation, the device may be used to execute
`transactions using the established account transaction mecha-
`nism. Such a process is illustrated with the flow diagram of
`FIG. 4B.
`
`The initiation of the device may begin at block 404 of FIG.
`4A with the purchase of the wireless device by customer.
`Credentials are provided to the financial institution that will
`maintain an account for the customer at block 408. Typically
`such credentials comprise an identification of the wireless
`device, the name and address of the customer, and the like. In
`some cases, the credentials may include a biometric identifi-
`cation that is stored by the financial institution as a mecha-
`nism for future identifications of the customer. In some
`
`instances, the wireless device may be purchased directly from
`the financial institution or from an affiliate of the financial
`
`institution so that credential information is automatically col-
`lected at the time of purchase and not separately provided by
`the customer. Identification of the wireless device may be
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`provided in the form ofa code that identifies the GPS chip 360
`and/or RFID chip 364, perhaps in combination with a serial
`number.
`At block 412, the customer contacts the financial institu-
`tion with the wireless device, such a