||||||||||||||||||||||||||l||||||||||||l|||||||||||||||||||||||||||||||||l||||||||||||l|||
`
`US 2004023663 2A1
`
`(19) United States
`(12) Patent Application Publication (10) Pub. No.: US 2004/0236632 A1
`(43) Pub. Date: Nov. 25, 2004
`
`Maritzen ct al.
`
`(54} SYSTEM AND METHOD FOR CONDUCING
`FINANCIAL TRANSACTIONS USING A
`PERSONAL TRANSACTION DEVICE WITH
`VEHICLE-ACCESSED, PAYMENT-GATEWAY
`TERMINALS
`
`{76}
`
`Inventors: Michael L. Maritzen, Fremont, CA
`(US); Him Yasuda, Woodcliff Lake, NJ
`(US); Robert Tanner, Boulder Creek,
`(.‘A (US); Harold Aaron Ludtke, San
`Jose, CA (US)
`
`Correspondence Address:
`Rogitz & Associates
`750 B Street, Suite 3120
`San Diego, CA 92101 (US)
`
`(21) Appl. No.:
`
`101015324
`
`(22
`
`Filed:
`
`Dec. 6, 2001
`
`Related U.S. Application Data
`
`(6(1) Provisional application No. so,-'254,217, filed on Dec.
`7, 2000.
`
`Publication Classification
`
`Int. CL" ..................................................... COfiF 17,!60
`{51)
`(52) U.S.Cl.
`................................................................ 705,0.6
`
`(57)
`
`ABSTRACT
`
`A system and method for conducting a financial transaction
`are described. In one embodiment, communication is estab-
`lished between a vehicle-accessed, payment-gateway termi-
`nal (VAPGT) and a pre-registered, key-enabled, personal
`transaction device (I’l‘D) The P'I‘I)
`is accessed using a
`privacyr card and a transaction request
`is transmitted to a
`server. Further,
`a
`transaction authorization message is
`received from the server to compiete the transaction.
`
`In an alternate embodiment, a pro—registered, key—enabled,
`personal
`transaction device (P113) is loaded with a pre-
`fundcd cash account. Further, communication is established
`between a vehicle-accessed, payment-gateway terminal
`{VAI’G'D and the P'I‘D and the P”) is accessed using a
`privacy card. Finally, a transaction amount is deducted from
`the pre~funded cash account to complete the transaction.
`
`t._
`(I Start
`
`"1.J
`
`
`Regi_stering A Personal Transaciiiiii fleece (PTO—i
`
`(d
`1110
`”Establishing Communication Between théPTD and a Vehicle—EN
`Accessed Payment Gatewex TerminaLQIAPGTI
`1115
`
`” Transmitting A Payment Request To The FTP)
`— "_—i— '
`
`_
`Accessing the PTD Using A Element: Contra!
`
`Generating A Transaction Key
`—_r"
`1130
`
`l
`
`1 120
`1125
`
`j
`
`
`
`-
`
`.
`
`Transmitting The TransactionKey To The VAP'GT
`
`l
`
`1135
`
`(\J
`Geneating A Transaction_Request
`1140
`_____—I
`: Transmitting The Transac_:t_lon Requesi To A Clearing House V‘J
`1145
`‘
`
`
`
`verifying The Transaction Request
`
`{V
`
`
`
`
`
`TSeIscting An Account
`
`'_NegottatingWith A Financier
`Processor
`
`1 160
`f—H/
`1165
`
`eductin—gA Transaction
`
`“mm“-:1 1 170
`“Trta—nsmit'tin—g;ATransactie—n
`AuthorizationJulessage—I
`
`.
`
`11m 1 ranEmFilingAn Invalid-
`Transaction Messaessage
`W1-
`wifiotfiying Appropriate Authorities
` 11
`i_—
`Disabling The. PTD I
`I
`
`I
`
`1
`
`Apple 1105
`Apple 1 105
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 1 of 1’?
`
`US 2004/0236632 A1
`
`44.0243“;
`
`
`
`mmeMOOw—mDmr
`
`
`
`330105.620
`
`.n$mouo<-o_o_;m>
`
`xmaflwwémgmm
`
`.mEELmF
`
`Ahoa<>v
`
`Emoaumzi
`
`omr
`
`Ecomzwn.
`
`casumwcmc.
`
`magma
`
`Ankmv
`
`0209
`
`F23E
`
`
`
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 2 of 17
`
`US 2004/0236632 A1
`
`LU
`dl—
`<_J
`
`MEMORY
`
`Figure2
`
`100
`
`
`
`O >
`
`.Z
`
`0Z
`
`

`

`Patent Application Publication Nov. 25, 20-04 Sheet 3 of 17
`
`US 2004/0236632 A1
`
`Non-Volatile Memory
`
`310
`
`320
`
`330
`
`340
`
`350
`
`VAPGT Application
`
`
`
`PTD Disabler Manager
`
`
`Biometric Control Manager
`
`
`
`Transaction Key
`
`
`
`Biometric Key
`
`240
`
`Figure 3
`
`

`

`Patent Application Publication Nov. 25, 20-04 Sheet 4 of 17
`
`Us 2004/0236632 A1
`
`250hmm
`
`SnEuEmEQm
`
`@335
`
`395.2Eh.
`
`
`
`oomtm—E..Bm..®cm®
`
`EmuEEm3:5253%
`
`
`
`w959;0:
`
`

`

`Patent Application Publication Nov. 25, 20-04 Sheet 5 of 17
`
`US 2004/0236632 A1
`
`VAPGT Memory
`
`
`
`> 520
`
`TransaCtiO”
`Request
`
`510
`
`530
`
`5340
`
`5‘50
`
`560
`
`115
`
`Payment Request
`
`‘ ‘\
`
`Transaction Amount
`
`
`
`
`
`Transaction Type
`
`Terminal Identifier
`
`VAPGT Transaction Key
`
`Figure 5
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 6 0f 17
`
`US 2004/0236632 A1
`
`
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 7 of 17
`
`US 2004/0236632 A1
`
`
`
`
`
`u_=a_o>.:oz«mac:9:320330...9:320
`EoEoEES"—.20:
`
`
`
`
`
`mmzoz@5320
`
`
`
`
`
`$0.31hmmD
`
`5:03ch
`
`moi
`
`
`
`@53209:520
`
`
`
`
`
`0:3:0....3.nt3:01
`
`w250E\5
`
`«man...@5320
`
`3&0
`
`
`
`
`
`

`

`Patent Application Publication Nov. 25, 20-04 Sheet 8 of 17
`
`US 2004/0236632 A1
`
`User Area
`
`User Account Information
`
`
`
`
`
`User Keys
`
`
`
`User Certificates and Profiles
`
`
`
`Historical Transaction Events
`
`
`
`Pre—estabiished Biometric Key
`
`880
`
`Figure 9
`
`

`

`Patent Application Publication Nov. 25, 20-04 Sheet 9 of 17
`
`US 2004/0236632 A1
`
`Transaction Area
`
`
`
`1020
`V“
`
`Account Number
`
`
`
`
`
`1030
`
`m
`
`1940
`M
`
`1950
`
`Transaction Amount
`
`
`
`Account Key
`
`
`
`1010
`Account
`
`Query
`
`J
`
`m Transaction Authorization Message
`
`1560
`\./*\
`
`Invalid Transaction Message
`
`
`
`890
`
`Figure 10
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 10 0f 17
`
`US 2004/0236632 A1
`
`K start
`
`1105
`
`
`
`Registering A Personal Transaction Device (PTD) L
`;_
`1110
`Establishing Communication fiefiveen the PTD and a Vehicle— N
`
`699933111; Payment Gateway Terminal gyAPGT)
`l
`Transmitting A Payment Reguest To The PTD
`l
`Accessing the PTO Using A Biometric Control
`
`N
`
`1115
`
`1120
`[\J
`"'T 1125
`
`I
`
`[_
`
`Transmitting The Transaction Key To The VAPGT
`
`Generating A Transaction Key
`l
`
`l“
`
`1130
`
` 1135
`
`___Generating A Transaction Request _—_
`
`_
`
`l
`
`1140
`. Transmitting The Transaction Request To A Clearing House l/“J
`—'
`"
`I
`1145
`_
`Verifying The Transactionw
`
`
`
`Valid
`Yes
`ransaction?
`
`
`
`
`
`
` Transmitting An Invalid-
`
`Selecting An Acoou nt
`
`
`
`Transaction Message
`‘ NegotiatingTJiTh A Financial N W_—_1_
`1160
`'
`l—— — 1165
`\_I
`Deducting A Transaction
`Disabling The PTD _
`..
`Amount
`_
`
`
`
`
` l
`
`Transmitting A Transaction
`_ Authorization Messa e
`
`1 1 7:0
`
`
`
`

`

`Patent Application Publication Nov. 25, 20-04 Sheet 11 0f 1?
`
`US 2004/0236632 A1
`
`1210
`
`Establishing Communication Between A Pre—Registered. Key—
`Enabled, Personai Transaction Device (PTD) and a Vehicle-
`Accessed, Payment Gateway Terminal (VAPGT)
`
`l
`
`
`
`Accessing the PTO Using A Biometric Control
`
`1
`
`Transmitting A Transaction Request To A Clearing House
`
`1
`
`Receiving A Transaction Authorization
`
`End
`
`Figure 12
`
`1215
`
`j 1
`
`220
`
`T 1
`
`225
`
`T
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 12 0f 17
`
`US 2004/0236632 A1
`
`Start
`
`
`
`1310
`
`
`
`
`Establishing Communication Between A Pre—Registered, Key-
`Enabled, Personal Transaction Device (PTD) and a Vehicie-
`
`
`
`
`
`
` 1315
`(«j
`
`Accessing the PTO Using A Biometric Control
`
`
`I
`TransmittingATransaction KeyToTheVAPGT
`
`1
`
`End
`
`Figure 13
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 13 0f 17
`
`US 2004/0236632 A1
`
`
`
`1410
`
`Establishing Communication Between A Pre-Registered, Key- N
`Enabled, Personal Transaction Device (PTD) and a Vehicle-
`
`
`Accessed, Payment Gateway Terminal (VAPGT)
`
`
`
`
`
`
`
`Receiving A Transaction Key From The PTD
`
`1
`
`1420
`‘
`Transmitting A Transaction Request To A Clearing House (V
`
`
`
`1425
`
`Receiving A Transaction Authorization From The Clearing
`
`House
`
`
`
`Figure 14
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 14 0f 17
`
`US 2004/0236632 A1
`
`Start
`
`.
`
`\
`
`
`
`1510
`
`Receiving A Transaction Request
`
`1515
`
`Determining If A Transaction is Valid
`
`Yes
`
`1520
`
`No
`
`
`vmm
`Transaction?
`
`
`Negotiating With A
`Financial Processor
`
`Transmitting A
`Transaction Authorization
`
`1525
`
`1530
`
`/ End
`
`Figure 15
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 15 0f 17
`
`US 2004/0236632 A1
`
`1 605
`
`
`
`Registering A Personal Transaction Device (PTD)
`—L .
`1610
`
`
`Loading The PTD With A Pré-Ffinded Cash Account
`
`1615
`
`
`
`
`Accessing 111?qu Using it} Biometric Control @225
`
`
`
`Establishing Communication With A Vehicle—Accessed,
`Pa ment-Gatewa Terminal VAPG
`
`
`
`
`Transmitting A Transaction Request To The PTD
`i
`“ Determining If A Transaction Is Valid
`
`1 620
`
` i
`
`i
`
`1630
`
`
`Valid
`ransaction‘?
`
`
`
`
`
`
`Deducting A Transaction
`Transmitting An Invalid-
`
`Amount
`Transaction Messae
`
`
`l
`1645
`\_,\
`
`
`
`Notifying Appropriate Authorities
`Transmitting A Transaction
`Authorization
`
`-
`
`1 660
`
`
`
`
`
`Disabling The PTD
`
`Figure 16
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 16 0f 17
`
`US 2004/0236632 A1
`
`
`
`1710
`
`Loading A Pre-Registered. Key-Enabled, Personal Transaction
`Device (PTD) With A Pre—Funded Cash Account
`
`1715
` Establishing Communication Between The PTD and a Vehicle-
`
`
`Accessed, Payment Gateway Terminal (VAPGT)
`
`
`
`i
`
`Accessing The PTD Using A Biometric Controi
`
`
`
`
`Deducting A Transaction Amount From The Pre-Funded Cash
`Account
`
`
`1720
`
`1725
`
`Figure 17
`
`

`

`Patent Application Publication Nov. 25, 2004 Sheet 17 0f 17
`
`US 2004/0236632 A1
`
`/1
`
`Start
`1810
`l
`Establishing Communication Between A Pre-Registered, Key— N
`Enabied, Personal Transaction Device (PTD) and a Vehicle-
`;
`Accessed, Payment Gateway Terminal (VAPGT)
`
`
`
`Receiving A Transaction Authorization Message From The p/
`
`
`
`PTD
`
`'
`
`Figure 18
`
`

`

`US 2004/0236632 A1
`
`Nov. 25, 2004
`
`SYSTEM AND METHOD FOR CONDUCING
`FINANCIAL TRANSACTIONS USING A
`PERSONAL TRANSACTION DEVICE WITH
`VEHICLE-ACCESSED, PAYMENT-GATEWAY
`TERMINALS
`
`RELATED APPLICATIONS
`
`[0001] The present application claims the benefit of U.S.
`Provisional Patent Application Ser. No. 60354317, filed on
`Dec. 07, 2000, and entitled “MEN-[OD AND APPARATUS
`FOR PRIVATEKANONYMOUS WIRELESS, AUTO«
`MATED PAYMENT AND SETTLEMENT OF TOLLS,
`FEES, SERVICE CHARGES AND RELATED FOR
`VEHICLES IN REAL-TIME AT A TOLLBOOTI-I SMOG
`CERTIFICA'I'ION STATION AND SIMILAR KIOSK
`ENABLED VIA A PIG-BASED BIOME’I‘RIC IDENTI-
`FIER” which is herein incorporated by reference in its
`entirety.
`
`FIELD OF THE INVENTION
`
`[0002] The present invention relates generally to conduct-
`ing financial transactions, and, more particularly, to a system
`and method to conduct financial transactions with a personal
`transaction device at vehicle—accessed, payment—gateway
`terminals.
`
`BACKGROUND OF THE INVENTION
`
`[0003] With the introduction of credit cards and pre-paid
`cash cards, society has moved from a cash—based to a
`cash—free society. However, there are still situations that
`require the use of cash to carry out financial transactions. A
`situation that still requires use of cash is in the collection of
`fees at vehicle-accessed payment gateways such as toll-
`booths, vehicular kiosks, smog-certification stations, and the
`like. The collection of fees at these gateways is time con-
`suming and subject to fraud.
`
`the electronic payment ol‘ fees at
`[0004] Systems for
`payment gateways have been developed using fixed sensors
`interacting remotely with devices carried by passing
`vehicles or persons. Such systems incorporate, for example,
`a pre-paid token or card in the devices in which the fee is
`deducted from the device.
`
`[0005] These systems offer anonymity but are inflexible as
`a device needs to be purchased for each specific financial
`transaction to be conducted. In addition, the financial trans-
`actions are insecure and are not fund-transfer transactions. In
`
`addition, these systems do not olfer real-time settlement of
`transactions. Finally, if the device is stolen, the funds may be
`used by anyone in possession of the device.
`
`[0006] What is required is a system and method for the
`real—time settlement of vehicle—accessed, financial transac—
`tions that provide anonymity and security.
`
`SUMMARY OF THE INVENTION
`
`[0007] A system and method for conducting a financial
`transaction are described. In one embodiment, eommunica~
`tion is established between a vehicle—accessed. payment—
`gateway terminal (VAPGT) and a pro—registered. key—en—
`abled, personal
`transaction device (PTD). The PTD is
`accessed using a privacy card and a transaction request is
`
`transmitted to a server. Further, a transaction authorization
`message is received from the server to complete the trans-
`action.
`
`In an alternate embodiment, a pre—registered, key—
`[0008]
`enabled, personal transaction device (PTD) is loaded with a
`pre-funded cash account. Further, communication is estab-
`lished between a vehicle-accessed, payment-gateway termi-
`nal (VAPG'I') and the PTD and the PTD is accessed using a
`privacy card. Finally, a transaction amount is deducted from
`the pro-funded cash account to complete the transaction.
`
`[0009] Other features and advantages ofthe present inven-
`tion will be apparent from the accompanying drawings and
`from the detailed description that follows.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`[0010] Features and advantages of the present invention
`will be apparent to one skilled in the art
`in light of the
`following detailed description in which:
`
`[0011] FIG. 1 is a block diagram of one embodiment for
`a financial transaction system;
`
`[0012] FIG. 2 is a block diagram for one embodiment of
`an architecture for a personal transaction device;
`
`[0013] FIG. 3 is a block diagram for one embodiment of
`a non-volatile memory for FIG. 2;
`
`[0014] FIG. 4 is a block diagram for one embodiment of
`a privacy card for FIG. 1;
`
`[0015] FIG. 5 is a block diagram for one embodiment of
`PTD memory of FIG. 4;
`
`[0016] FIGS. 6:: and 6b are examples of a personal
`transaction device with integrated privacy card;
`
`[0017] FIG. 7 is an example of a privacy card;
`
`[00.18] FIG. 8 is a block diagram for one embodiment of
`an architecture for a clearing house for FIG. I;
`
`[0019] FIG. 9 is a block diagram for one embodiment of
`a user area of FIG. 8;
`
`[0020] FIG. 10 is a block diagram for one embodiment of
`a transaction area of FIG. 8;
`
`[0021] FIG. 11 is a flow diagram for one embodiment of
`a method for conducting a financial transaction;
`
`[0022] FIG. 12 is a flow diagram for a second embodi—
`ment of a method for conducting a financial transaction by
`a personal transaction device;
`
`[0023] FIG. 13 is a flow diagram for one embodiment of
`a method for conducting a financial transaction by a personal
`transaction device;
`
`[0024] FIG. 14 is a flow diagram for one embodiment of
`a method for conducting a financial transaction by a vehicle-
`accessed, payment gateway terminal;
`
`[0025] FIG. 15 is a flow diagram for one embodiment of
`a method for conducting a financial transaction by a clearing
`house;
`
`[0026] FIG. 16 is a flow diagram for a third embodiment
`of a method for conducting a financial transaction;
`
`

`

`US 2004/0236632 A1
`
`Nov. 25, 2004
`
`[0027] FIG. 17 is a flow diagram for a fourth embodiment
`of a method for conducting a financial transaction; and
`
`[0028] FIG. 18 is a flow diagram for a second embodi-
`ment of a method for conducting a financial transaction by
`a vehicle-accessed, payment gateway terminal.
`
`DETAILED DESCRIPTION
`
`[0029] A system and method for conducting a financial
`transaction are described. In one embodiment, communica-
`tion is established between a vehicle-accessed, payment-
`gateway terminal (VAPGT) and a pro—registered, key—en—
`abled, personal
`transaction device (PTD). The PTD is
`accessed using a biometric control and a transaction request
`is transmitted to a server. Further, a transaction authorization
`message is received from the server to complete the trans-
`action in real time between the user and the VAPGT pro-
`vider. [n this embodiment, the funds are uniquely identified
`with the owner of the PTD and, thus, if the PTD is stolen,
`the funds cannot be used by another user.
`
`In an alternate embodiment, a pro-registered, key-
`[0030]
`enabled, personal transaction device (PTD) is loaded with a
`pre-fttnded cash account. Further, communication is estab-
`lished between a vehicle-accessed, payment-gateway termi-
`nal (VAPGT) and the PTD and the PTD is accessed using a
`biometric control. Finally, a transaction amount is deducted
`from the pre-funded cash account to complete the transac-
`tion in real time between the user and the VAPGT provider.
`In this embodiment, the funds are uniquely identified with
`the owner of the PTD and, thus, if the PTD is stolen, the
`funds cannot be used by another user.
`
`[0031] The embodiments described herein provide for
`secure, anonymous, real time settlement of financial trans—
`actions. In addition, the embodiments provide consistency
`and commonality in the key stages of the financial transac-
`tion capturing and processing lit'ecycle. This may provide in
`a cost
`reduction in the physical hardware required by
`eliminating some components from the current vehicle-
`based communication system by consolidating the compo—
`nents into the PTD. For example, reducing the need for
`separate tollbooth payment tokens within the vehicle. In
`addition, the embodiments may provide for consistent levels
`of security and other services across multiple payment
`gateways by use of a common transaction service provider.
`Also, the embodiments may provide strong integration with
`a user’s devices and other utilities such as, for example,
`financial reporting tools such as tax preparation, expense
`report generation, and the like.
`
`[0032] A portion of the disclosure of this patent document
`contains material which is subject to copyright protection.
`The copyright owner has no objection to the facsimile
`reproduction by anyone of the patent document or the patent
`disclosure, as it appears in the Patent and Trademark Office
`patent file or records, but otherwise reserves all copyright
`rights whatsoever.
`
`In the following detailed description of the present
`[0033]
`invention, numerous specific details are set forth in order to
`provide a thorough understanding of the present invention.
`However, it will be apparent to one skilled in the art that the
`present invention may be practiced without these specific
`details.
`In some instances, well—known structures and
`devices are shown in block diagram form, rather than in
`detail, in order to avoid obscuring the present invention.
`
`[0034] Some portions of the detailed descriptions which
`follow are presented in terms of algorithms and symbolic
`representations of operations on data bits within a computer
`memory. These algorithmic descriptions and representations
`are the means used by those skilled in the data processing
`arts to most effectively convey the substance of their work
`to others skilled in the art. An algorithm is here, and
`generally, conceived to be a self-consistent sequence of steps
`leading to a desired result. The steps are those requiring
`physical manipulations of physical quantities. Usually,
`though not necessarily,
`these quantities take the form of
`electrical or magnetic signals capable of being stored, trans-
`ferred, combined, compared, and otherwise manipulated. It
`has proven convenient at times, principally for reasons of
`common usage,
`to refer to these signals as bits, values,
`elements, symbols, characters, terms, numbers, or the like.
`
`It should be borne in mind, however, that all of
`[0035]
`these and similar terms are to be associated with the appro—
`priate physical quantities and are merely convenient labels
`applied to these quantities. Unless specifically stated other-
`wise as apparent from the following discussion, it is appre-
`ciated that throughout the description, discussions utilizing
`terms such as "processing" or “computing“ or “calculating”
`or “determining" or “displaying” or the like, refer to the
`action and processes of a computer system, or similar
`electronic computing device,
`that manipulates and trans—
`forms data represented as physical (electronie) quantities
`within the computer system’s registers and memories into
`other data similarly represented as physical quantities within
`the computer system memories or registers or other such
`information storage, transmission or display devices.
`
`[0036] The present invention aiso relates to apparatus for
`performing the operations herein. This apparatus may be
`specially constmcted for the required purposes, or it may
`comprise a general purpose computer selectively activated
`or reconfigured by a computer program stored in the com-
`puter. Such a computer program may be stored in a computer
`readable storage medium, such as, but is not limited to, any
`type of disk including floppy disks, optical disks, CD-
`ROMs, and magnetic-optical disks, read-only memories
`(ROMs),
`random access memories (RAMs), El’ROMs,
`EEPROMs, magnetic or optical cards, or any type of media
`suitable for storing electronic instructions, and each coupled
`to a computer system bus.
`
`[0037] The algorithms and displays presented herein are
`not inherently related to any particular computer or other
`apparatus. Various general purpose systems may be used
`with programs in accordance with the teachings herein, or it
`may prove convenient to construct more specialized appa-
`ratus to perform the required method steps. The required
`structure for a variety of these systems will appear from the
`description below. In addition, the present invention is not
`described with reference to any particular programming
`language. It will be appreciated that a variety of program—
`ming languages may be used to implement the teachings of
`the invention as described herein.
`
`[0038] FIG. 1 is a block diagram of one embodiment for
`a financial transaction system 180. Referring to FIG. 1, a
`personal transaction device (PTD) 100 communicates via
`communication link 150 with a vehicle-accessed, payment—
`gateway terminal
`(VAPG'I‘) 120 to conduct a financial
`transaction.
`In one embodiment,
`the PTD 100 is a pre-
`
`

`

`US 2004/0236632 A1
`
`Nov. 25, 2004
`
`registered, key-enabled, personal transaction device. In one
`embodiment, PTD 100 is a public-key infrastnictu re (I’KI)
`enabled device. In one embodiment, PTD 100 is registered
`with an appropriate enabling authority prior to initiation of
`the financial transaction. The appropriate enabling authority
`may be, for example, a financial institution, a third party
`distributor, a credit card issuer, or the like. In one embodi-
`ment, PTD 100 is associated with a particular user such that
`only the particular user may access PTD 100 and conduct the
`financial transaction using I’I‘D 100. Alternatively, a number
`of users may use FI'I) 100, each user having a unique
`biometric key associated with the user and 1711) 100.
`
`[0039] VAPGT 120 may be any vehicle—accessed terminal
`such as,
`for example, a tollbooth,
`a vehicular kiosk, a
`ticket-booth, a smog-certification station, or the like. In one
`embodiment, VAPGT 120 includes VAPGT memory 115 for
`the storage of financial transaction data such as, for example,
`a payment request and a transaction request. VAPGT 120
`communicates via communication link 160 with clearing
`house 130. Clearing house 130 may be any appropriate
`server. Clearing house 130 communicates via communica-
`tion link 170 with financial processor 140. In one embodi-
`ment, PTD 100 is connected to privacy card 110. In one
`embodiment, PTD 100 and privacy card 110 may be within
`the same device. In an alternate embodiment, PTD 100 and
`privacy card 110 may be separate devices that are connected
`by any suitable means. In this alternate embodiment, PTD
`100 and privacy card 110 may be connected via a hardwired
`connection. Alternatively PTD 100 and privacy card 110
`may communicate via a wireless connection. In one embodi-
`ment, privacy card 110 may be fully integrated into PTD
`100.
`
`’I‘ransmis‘sion via communication link 150 may be
`[0040]
`via wireless communication such as, for example, Blue-
`tooth, infrared, wireless LAN, or the like, VAPGT 120 may
`be connected to clearing house 130 via a hardwired com-
`mu nieation link such as, for example, a virtual private
`network (VPN), telephone connection, wide area network
`(WAN) or the like. Alternatively, VAPU'I' 120 and clearing
`house 130 may be connected via a wireless communication
`link such as, for example, a mobile telecommunications link,
`a radio communications link, an infrared link, a satellite link,
`a wireless WAN link, or the like.
`In one embodiment,
`VAPGT 120 and clearing house 130 are remotely connected.
`
`[0041] As PTD 100 nears VAPG'I‘ 120, the proximity of
`PH) 100 to VAPG'I‘ 120 is recognized. In one embodiment,
`VAPGT 120 may sense the proximity of PTD 100 and
`initiate communication with the PTD 100. In an alternate
`embodiment, P'I‘I) 100 may sense the proximity of VAPGT
`120 and initiate communication with VAPGT 120. Any of a
`variety of well-known methods for sensing the proximity ol‘
`the two devices may he used. For example, VAPG'I‘ 120 may
`periodically poll
`the surrounding area to determine the
`proximity of a PTD 100.
`
`To conduct a financial transaction, once the P'I‘D
`[0042]
`100 and VAPGT 120 are within proximity to each other,
`VAPG'I‘ 120 sends a payment request via communication
`link 150 to PTD 100. In one embodiment,
`the payment
`a
`request may include a
`transaction type,
`transaction
`amount, and a VAPGT identifier. Alternatively, any suitable
`information may be included in the payment request. Once
`PTD 100 receives the payment request from VAPUT 120,
`
`the user accesses privacy card 110 to access PTD 100. In an
`alternate embodiment, a user may access privacy card 110
`prior to the initiation of the financial
`transaction. For
`example, the user may access privacy card 110 to enter a
`vehicle or to start the vehicle.
`
`In one embodiment, privacy card 110 is a biometric
`[0043]
`control. Asuitable biometric control device that may be used
`is described in U.S. patent application Ser. No. 092610.811
`entitled “Method of Using Personal Device With Internal
`Biometric In Conducting Transactions Over A Network”.
`which is herein incorporated by reference. In one embodi-
`ment, the user accesses privacy card 110 using a finger or
`thumbprint
`input. Alternatively, any means of biometric
`access may be used. Privacy card 110 uses the biometric
`input to verify the user of the device. Only a registered user
`may access PTD 100 via privacy card 110.
`
`In one embodiment, if the biometric input is valid
`[0044]
`for the device, privacy card 110 creates a biometric key that
`is transmitted to PH) 100. If privacy card 110 is within P'I‘I)
`100, validation of the biometric information may be con-
`ducted by PTD 100. Alternatively, if privacy card 110 is
`separate from PTD 100, validation is conducted by privacy
`card 110. Privacy card 110 only transmits the biometric key.
`The biometric information identifying the user is not trans—
`mitted at any time. The biometric key is used to unlock PTD
`100 and to gain authorization of the financial transaction.
`
`In one embodiment, the biometric key is encrypted
`[0045]
`using well-known encryption technology such as,
`for
`example, PKI encryption. If the biometric key is valid, PTD
`100 creates a transaction key.
`In one embodiment,
`the
`transaction key may include the biometric key and a P'I‘I)
`identifier. ‘I‘he P'I‘I) identifier identifies the particular l’l‘l)
`being used. In an alternate embodiment, the transaction key
`includes only the biometric key. In one embodiment, PTD
`100 transmits the transaction key via communication link
`150 to VAPGT 120. PTD 100 does not transmit any user
`information to VAPGT 120. In one embodiment, the trans—
`action key is encrypted prior to transmission using standard
`encrypting methods such as, for example, public key infra-
`structure (PKI) encryption.
`
`[0046] Once VAPGT 120 receives the transaction key,
`VAPGT 120 generates a transaction request. In one embodi-
`ment, the transaction request includes the transaction key, a
`transaction amount, a transaction type, and a terminal iden-
`tifier. The terminal identifier identifies a particular VAPGT
`120. In alternate embodiments, the transaction request may
`include other information. The transaction request is trans-
`mitted via communication link 160 to clearing house 130. In
`one embodiment, the transaction request may be encrypted
`using well-known encrypting methods such as, for example,
`PKI encryption.
`
`[0047] Clearing house 130 determines if the transaction
`type is valid for a particular user.
`In one embodiment,
`clearing house 130 decrypts the transaction request and, if
`required, the transaction key. In one embodiment, clearing
`house 130 determines if the transaction type is consistent
`with historical transaction events conducted by the user. In
`addition, clearing house 130 may compare the current trans—
`action type against pre—established user certificates and
`profiles. In an alternate embodiment, clearing house 130
`may compare the transaction type against fraud detection
`
`

`

`US 2004/0236632 A1
`
`Nov. 25, 2004
`
`systems. Any of a variety of well-known fraud detection
`systems may be used. Any or all of the above verifications
`may be performed.
`
`In addition, clearing house 130 may validate the
`[0048]
`transaction key against pre-existing user keys.
`In one
`embodiment, the user may set-up specific keys to conduct
`specific financial transactions. For example, the user may set
`up a specific key for conducting tollbooth financial transac-
`tions. In an alternate embodiment, one transaction key may
`be used for all vehicle~accessed financial transactions. In one
`
`embodiment, clearing house 130 compares the transaction
`key against a list of keys associated with the particular user.
`In one embodiment,
`the list of keys may be maintained
`within clearing house 130. If a match is found,
`then the
`transaction key is valid. Clearing house 130 also verifies that
`the biometric key is valid by comparison of the biometric
`key transmitted to clearing house 130 with a known bio—
`metric key maintained within clearing house 130.
`
`[0049] Once clearing house 130 determines that the trans—
`action type and transaction key are valid, clearing house 130
`selects a pre-existing account
`from a number of user
`accounts associated with the PTD 100 and the user to
`
`process the financial transaction. In one embodiment, a list
`of accounts associated with PTD 100 may be maintained on
`clearing house 130. In one embodiment, clearing house 130
`selects an account associated with the transaction key.
`[0050] Once the transaction account is selected, clearing
`house 130 negotiates with a
`financial processor 140 to
`authorize the transaction. Clearing house 130 creates an
`account query to be transmitted via communication link 170
`to financial processor 140. In one embodiment, the account
`query may include an account number,
`the transaction
`amount, and an account key. The account key may be an
`encrypted key used to verify the account number by the
`linancial processor 140. In one embodiment, the account key
`is set-up by the user when PTD 100 is registered with the
`appropriate enabling authority.
`In one embodiment,
`the
`account query is encrypted using well-know encryption
`technology such as, for example, PKI encryption. Although
`FIG. 1 includes a single financial processor 140, any other
`number of financial processor's may be connected to clear-
`ing house 130. In one embodiment, the selected account is
`specific to financial processor 140.
`
`[0051] Financial processor 140 verifies the account and
`deducts the transaction amount from the selected account. In
`
`the
`one embodiment, financial processor 140 verifies that
`account number and account key match and that the account
`has sufficient
`funds for the financial
`transaction. If the
`
`account is valid and sufiicient funds exist, linancial proces-
`sor 140 creates an account authorization message and trans-
`mits the account authorization message via communication
`link 170 to clearing house 130. If the account query is
`invalid or if there are insufiicient funds in the account,
`financial processor 140 transmits an invalid account mes-
`sage to clearing house 130.
`[0052]
`In one embodiment, the account authorization mes-
`sage does not contain any account information. Only an
`authorization to proceed with the financial
`transaction is
`transmitted from financial processor 140 to clearing house
`130. In an alternate embodiment, the account information
`may be contained entirely within clearing house 130 and all
`account authorization may be conducted from within clear-
`ing house 130.
`
`In one embodiment, if the transaction is authorized
`[0053]
`by financial processor 140, the transaction amount is cred-
`ited to an account for VAPGT 120. In one embodiment,
`clearing house 130 negotiates with a linancial processor 140
`associated with VAPGT 120 to credit an account for the
`financial transaction. In an alternate embodiment, VAPGT
`120 negotiates to credit the appropriate account.
`
`[0054] Once the account is authorized, clearing house 130
`transmits a transaction authorization message via commu-
`nication link 160 to VAPG'I' 120. The transaction authori-
`zation message allows the financial transaction to be com—
`pleted. Once VAPGT 120
`receives
`the
`transaction
`authorization message, the transaction is completed. In one
`embodiment, the transaction authorization message allows
`the user to pay atoll ata tollbooth or similar transaction. The
`transaction authorization message does not
`include any
`financial processor 140 or user information. Only an autho-
`rization to proceed with the financ