(19) United States
`(12) Patent Application Publication (10) Pub. No.: US 2009/0171851 A1
`(43) Pub. Date:
`Jul. 2, 2009
`Beenau et al.
`
`US 20090171851A1
`
`(54) REGISTERING A BIOMETRIC FOR RADI
`O
`FREQUENCY TRANSACTIONS
`(75) Inventors:
`Blayn W. Beenau, Peoria, AZ (US);
`David S. Bonale, New Rochelle,
`NY (US): Seth W. Fields,
`Taylorsville, UT (US); William J.
`Gray, Salt Lake City, UT (US);
`Carl Larkin, West Sussex (GB);
`Joshua L. Montgomery, Orem, UT
`(US); Peter D. Saunders, Salt Lake
`City, UT (US)
`Correspondence Address:
`SNELL & WILMER L.L.P. (Main)
`400 EAST VAN BUREN, ONE ARIZONA CEN
`TER
`PHOENIX, AZ 85004-2202 (US)
`
`(73) Assignee:
`
`XATRA FUND MX, LLC,
`Wilmington, DE (US)
`
`(21) Appl. No.:
`
`12/388,280
`
`(22) Filed:
`
`Feb. 18, 2009
`Related U.S. Application Data
`(60) Division of application No. 1 1/858,393, filed on Sep.
`20, 2007, which is a division of application No.
`10/708,840, filed on Mar. 26, 2004, which is a continu
`
`(60)
`
`(51)
`
`ation-in-part of application No. 10/340,352, filed on
`Jan. 10, 2003, which is a continuation-in-part of appli
`cation No. 10/192,488, filed on Jul. 9, 2002, now Pat.
`No. 7.239,226, said application No. 10/340,352 is a
`continuation-in-part of application No. 10/318,432,
`filed on Dec. 13, 2002, said application No. 10/340,
`352 is a continuation-in-part of application No.
`10/318,480, filed on Dec. 13, 2002, now Pat. No.
`7,249,112.
`Provisional application No. 60/396.577, filed on Jul.
`16, 2002, provisional application No. 60/304.216,
`filed on Jul. 10, 2001, provisional application No.
`60/396.577, filed on Jul. 16, 2002, provisional appli
`cation No. 60/396,577, filed on Jul. 16, 2002.
`
`Publication Classification
`
`Int. C.
`(2006.01)
`H04L 9/00
`U.S. Cl. ............................................. 705/72; 705/76
`
`(52)
`(57)
`ABSTRACT
`An authorized sample receiver configured to verify an RF
`device in response to proffered biometric sample data is dis
`closed. The authorized sample receiver may be configured to
`receive data from the RF device and decrypt an encrypted
`authentication code using a unique device identification code.
`The RF device is authenticated in response to verifying prof
`fered biometric sample data and the authentication code.
`
`802
`
`CUSTOMER
`CHOOSESPAYMENT
`WAFOB
`
`804
`
`806
`
`808
`
`810
`
`MERCHANT INITIATES
`RF PAYMENT PROCEDURE
`
`RF TERMINAL SCANS
`FORFOBON INTERNAL
`OREXTERNAL ANTENNA
`
`CUSTOMER PRESENTS
`FOBTO
`RF TERMINAL
`
`MUTUALAUTHENTCATION
`BETWEENFOB
`AND READER
`
`RF TERMINAL PROVIDES
`USERFEEDBACK
`
`TRANSFERENCRYPTED
`TRACK1 iTRACK2DATA
`FROMFOBTO
`RF TERMINAL
`
`RF TERMINAL DECRYPTS
`DATA AND CONVERTS
`TOISO/IEC 7813 FORMAT
`
`TRACK1 TRACK2DATA
`TRANSFERRED TO
`POSTERMINAL
`
`PAYMENT TRANSACTION
`PROCESSED BY
`POTERMINAL
`
`812
`YES
`
`POSSENDS TRANSACTION
`STATUSBACK TO
`RF TERMINAL
`
`818
`
`822
`
`824
`
`828
`
`830
`
`832
`
`
`
`AUTHENTICATION
`SUCCESSFUL
`NO
`
`ERROR MESSAGETOPOS
`(ORTIME OUI)
`ANDUSERFEEDBACK
`
`ABORT
`TRANSACTION
`
`814
`
`816
`
`RFTERMINAL PROVIDES
`USERFEEDBACK
`
`834
`
`TRANSACTION
`COMPLETED
`
`Page 1 of 48
`
`GOOGLE EXHIBIT 1007
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 1 of 19
`
`US 2009/0171851A1
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`//
`
`Page 2 of 48
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`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 2 of 19
`
`US 2009/0171851A1
`
`
`
`
`
`WELSÅS NO||L\/ZITIVNOSHEId
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`
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`
`Page 3 of 48
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`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 3 of 19
`
`US 2009/0171851 A1
`
`
`
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`Page 4 of 48
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`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 4 of 19
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`US 2009/0171851 A1
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`
`
`Page 5 of 48
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`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 5 of 19
`
`US 2009/0171851 A1
`
`RFID READER PROVIDES
`INTERROGATION SIGNAL
`
`FOB RECEIVES THE
`NTERROGATIONSIGNAL
`
`FOBENCRYPTS THE
`AUTHENTICATION CODE
`
`ENCRYPTED AUTHENTICATION
`CODE PROVIDED TO RFID READER
`
`RFID READER DECRYPTS THE
`ENCRYPTED AUTHENTICATION
`CODE
`
`402
`
`404
`
`406
`
`408
`
`410
`
`Yes
`
`
`
`CORRECTLY
`ENCRYPTED
`414
`
`FOB AUTHENTICATED
`
`TRANSACTION
`PROCEEDS
`
`416
`
`412
`
`No
`
`FOB NOT
`AUTHENTICATED
`
`TRANSACTION
`TERMINATED
`
`418
`
`420
`
`FIG. 4
`
`Page 6 of 48
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 6 of 19
`
`US 2009/0171851A1
`
`504
`
`COMMAND RFID TO
`PROVIDE
`UNINTERRUPTED
`INTERROGATION
`SIGNAL
`
`
`
`
`
`
`
`
`
`
`
`510
`
`COMMAND RFID
`TO RETRIEVE KEY
`
`512
`
`NO (s YES
`
`5
`O2
`YES
`
`506
`COMMAND RFID
`TOAUTHENTICATE
`
`
`
`
`
`FOB
`SIGNAL
`
`COMMANDRFID
`TO REMAINDLE
`
`524
`
`
`
`COMMAND RFID TO
`OPEN
`COMMUNICATION
`WITH POSDEVICE
`
`NO
`
`NTERRgGATIO
`
`
`
`YES
`COMMAND RFID TO
`ENCRYPT SIGNAL
`
`COMMAND RFID TO
`PROVIDESIGNAL TOFOB
`
`FIG. 5
`
`Page 7 of 48
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 7 of 19
`
`US 2009/0171851A1
`
`612
`
`ABORT
`PERSONALIZATION
`
`
`
`YES
`
`610
`
`TERMINATION
`BY OPERATOR
`OR TIME-OU
`
`AUTHENTICATE
`PERSONALZATION
`SYSTEM
`
`
`
`
`
`AUTHENTCATION
`SUCCESSFUL
`
`LOAD FOBDATA FOR
`PERSONALIZATION
`(FORM KEYBOARD ORFILE)
`
`
`
`NO
`
`PRESENT TOKEN FOR
`PERSONALIZATION TO RF
`READER, READERESTABLISHES
`COMMUNICATION AND GETSD
`
`TARGET FOB
`PRESENT?
`
`
`
`
`
`
`
`
`
`
`
`
`
`F.G. 6A
`
`Page 8 of 48
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`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 8 of 19
`
`US 2009/0171851A1
`
`626
`
`CREATE LOG FILE ENTRY
`FOR RECORD KEEPNG
`
`616
`
`
`
`628
`
`(A)
`
`CREATE FOB-SPECIFIC
`DIVERSIFIEDKEYS
`
`ERROR OR
`?NTERREED FOBNNO
`PRESENCE
`
`YES
`
`SECURITY ALERT
`
`
`
`
`
`PERSONALE
`NEXT FOB
`
`
`
`YES
`
`GB)
`
`CONFIGURE FOBAND LOAD
`DIVERSIFIED FOB KEYS (USE OF INITIAL
`PRODUCTION KEYS FOR
`AUTHENTICATION AND SIGNATURE)
`
`618
`
`
`
`
`
`CREATE ENCRYPTED
`PAYLOAD DATAUSING
`PAYLOAD KEYS
`
`LOADENCRYPTED PAYLOAD DATA TO
`FOB (USING NEW FOB KEYS FOR
`AUTHENTICATION AND SIGNATURE)
`
`EXECUTERREVERSIBLE LOCKING
`OF FOB (USING NEW FOBKEYS FOR
`AUTHENTICATION AND SIGNATURE)
`
`620
`
`622
`
`624
`
`FIG. 6B
`
`Page 9 of 48
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`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 9 of 19
`
`US 2009/0171851A1
`
`READER GETS CONNECTED
`FOR PERSONALIZATION
`
`702
`
`ESTABLISH
`COMMUNICATION, READER
`SENDSD AND STATUS
`
`704
`
`
`
`
`
`NITIAL
`PERSONALIZATION
`
`706
`
`YES
`
`
`
`
`
`
`
`MUTUALAUTHENTICATION
`BETWEENPC AND READER (1ST
`TIME WITH DEFAULTKEYS)
`
`ABORT
`PERSONALIZATION
`
`714
`
`718
`
`
`
`
`
`DOWNLOAD FRMWARE
`TO READER TERMINAL
`
`710
`
`MUTUALAUTHENTICATION
`BETWEEN PC AND READER
`(WITH AUTHENTIC KEYS)
`
`
`
`
`
`712
`
`NO
`
`AUTHENTICATION
`OKAY?
`
`YES
`
`716
`
`YES
`
`FIRMWARE
`UPDATE OR
`INITIAL LOADING
`
`FIG. 7A
`
`Page 10 of 48
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 10 of 19
`
`US 2009/0171851 A1
`
`DOWNLOAD
`PERSONALIZATION KEYS
`TO READER TERMINAL
`(ENCRYPTED
`COMMUNICATION)
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`720
`
`PERSONALIZATION
`KEYS UPDATE
`OR NITIAL
`LOADING2
`
`724
`
`FOB
`KEYS UPDATE
`OR INITIAL
`LOADING
`
`DOWNLOAD FOB KEYS TO READER
`TERMINAL (ENCRYPTED
`COMMUNICATION)
`
`
`
`726
`
`READER TERMINAL LOADS FOB
`KEYS INTORF MODULE
`(AUTHENTICATION, SIGNATURE)
`
`728
`
`
`
`730
`
`
`
`732
`
`UPDATE STATUSLOG
`
`END
`PERSONALIZATION
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`FIG. 7B
`
`Page 11 of 48
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 11 of 19
`
`US 2009/0171851 A1
`
`802
`
`CUSTOMER
`CHOOSES PAYMENT
`VIA FOB
`
`804
`
`8
`
`808
`
`810
`
`MERCHANT INITIATES
`RF PAYMENT PROCEDURE
`
`RF TERMINAL SCANS
`FOR FOB ON INTERNAL
`OR EXTERNAL ANTENNA
`
`CUSTOMER PRESENTS
`FOBO
`RF TERMINAL
`
`MUTUALAUTHENTICATION
`BETWEEN FOB
`AND READER
`
`812
`YES
`
`RF TERMINAL PROVIDES
`USER FEEDBACK
`
`
`
`
`
`TRANSFERENCRYPTED
`TRACK 1 / TRACK 2 DATA
`FROMFOBTO
`RF TERMINAL
`
`RF TERMINAL DECRYPTS
`DATA AND CONVERTS
`TOISO/IEC 7813 FORMAT
`
`TRACK 1 / TRACK2 DATA
`TRANSFERRED TO
`POSTERMINAL
`
`PAYMENT TRANSACTION
`PROCESSED BY
`POTERMINAL
`
`POSSENDS TRANSACTION
`STATUS BACK TO
`RF TERMINAL
`
`818
`
`820
`
`822
`
`824
`
`828
`
`830
`
`832
`
`
`
`
`
`AUTHENTICATION
`SUCCESSFU
`
`NO
`
`ERROR MESSAGE TO POS
`(ORTIME OUI)
`AND USER FEEDBACK
`
`ABORT
`TRANSACTION
`
`814
`
`816
`
`RF TERMINAL PROVIDES
`USERFEEDBACK
`
`834
`
`TRANSACTION
`COMPLETED
`
`FIG. 8
`
`Page 12 of 48
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 12 of 19
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`US 2009/0171851 A1
`
`
`
`ZO6
`
`}}OSNES
`
`
`
`ÅHOWEW WIWO
`
`Page 13 of 48
`
`

`

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`
`Jul. 2, 2009 Sheet 13 of 19
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`US 2009/0171851A1
`
`L – – – – –
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`Page 14 of 48
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 14 of 19
`
`US 2009/0171851A1
`
`
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`?OunOS
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`uOISS?uusuel L
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`Page 15 of 48
`
`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 15 0f 19
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`US 2009/0171851 A1
`
`__n_.IIIIIIIIIIIIIIIIIIIIIum—fl.23an03m_—Win—n__0..un__1uuuuuuWnu____Hum.E12.n_:uifmm“\.Iv_ux_.mn____.mumwm"_____________k.m_\__llllllLV0?mn_x1"___u_All_\v:nu_win2._o?uIIVIQm_“lwvco
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`Page 16 0f 48
`
`Page 16 of 48
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`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 16 of 19
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`US 2009/0171851A1
`
`N
`O
`cy
`ver
`
`\
`
`92
`89.
`3 2
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`Page 17 of 48
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`

`

`Patent Application Publication
`
`Jul. 2, 2009 Sheet 17 of 19
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`US 2009/0171851 A1
`
`1401
`
`1403
`
`1405
`
`1407
`
`1409
`
`CONTACT ASR
`
`SUBMIT SAMPLE
`
`ASSOCATE SAMPLES
`
`
`
`SECONDARY
`VERIFICATION
`
`STORE SAMPLES
`AND IDENTIFIER
`
`FIG. 14
`
`Page 18 of 48
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`US 2009/0171851 A1
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`
`
`Page 19 of 48
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`US 2009/0171851 A1
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`
`
`---7----" zig
`
`Page 20 of 48
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`

`

`US 2009/0171851 A1
`
`Jul. 2, 2009
`
`REGISTERING A BIOMETRIC FOR RADIO
`FREQUENCY TRANSACTIONS
`
`0001. This application is a divisional of U.S. Ser. No.
`1 1/858,393, filed on Sep. 20, 2007, and entitled “METHOD
`FORUSING A SENSORTO REGISTER A BIOMETRIC
`FOR USE WITH A TRANSPONDER-READER SYSTEM
`RELATED APPLICATIONS, which is a divisional of U.S.
`Ser. No. 10/708,840, filed on Mar. 26, 2004, and entitled
`METHOD FOR USING A SENSOR TO REGISTER A
`BIOMETRIC FOR USE WITH A TRANSPONDER
`READER SYSTEM,” which is a continuation in part of U.S.
`Ser. No. 10/340,352, filed on Jan. 10, 2003, and entitled
`SYSTEMAND METHOD FORINCENTING PAYMENT
`USING RADIO FREQUENCY IDENTIFICATION IN
`CONTACT AND CONTACTLESS TRANSACTIONS
`which is a non-provisional of U.S. Provisional No. 60/396,
`577 filed Jul. 16, 2002. U.S. Ser. No. 10/340,352 is also a
`continuation in part of U.S. Ser. No. 10/192.488, entitled
`SYSTEM AND METHOD FOR PAYMENT USING
`RADIO FREQUENCY IDENTIFICATION IN CONTACT
`AND CONTACTLESS TRANSACTIONS filed on Jul. 9,
`2002 (issued as U.S. Pat. No. 7.239,226 on Jul. 3, 2007),
`which is a non-provisional of U.S. Provisional No. 60/304,
`216, filed on Jul. 10, 2001. U.S. Ser. No. 10/340,352 is also a
`continuation in part of U.S. Ser. No. 10/318,432, entitled
`SYSTEM AND METHOD FOR SELECTING LOAD
`OPTIONS FOR USE INRADIO FREQUENCY IDENTIFI
`CATION IN CONTACT AND CONTACTLESS TRANS
`ACTIONS filed Dec. 13, 2002, which is a non-provisional
`of U.S. Provisional No. 60/396,577 filed Jul 16, 2002. U.S.
`Ser. No. 10/340,352 is also a continuation in part of U.S. Ser.
`No. 10/318,480, entitled “SYSTEM AND METHOD FOR
`PAYMENT USING RADIO FREQUENCY IDENTIFICA
`TION IN CONTACT AND CONTACTLESS TRANSAC
`TIONS. filed Dec. 13, 2002 (issued as U.S. Pat. No. 7,249,
`112 on Jul. 24, 2007), which is a non-provisional of U.S.
`Provisional No. 60/396,577 filed on Jul. 16, 2002. All of the
`above applications are hereby incorporated by reference.
`
`BACKGROUND OF THE INVENTION
`0002. Like barcode and voice data entry, RFID is a con
`tactless information acquisition technology. RFID systems
`are wireless, and are usually extremely effective in hostile
`environments where conventional acquisition methods fail.
`RFID has established itselfin a tracking moving objects such
`as livestock or automobiles, and retail inventory applications.
`AS Such, RFID technology has become a primary focus in
`automated data collection, identification and analysis sys
`tems worldwide.
`0003. Of late, companies are increasingly embodying
`RFID data acquisition technology in a fob or tag for use in
`completing financial transactions. A typical fob includes a
`transponder and is ordinarily a self-contained device which
`may be contained on any portable form factor. In some
`instances, a battery may be included with the fob to power the
`transponder. In which case the internal circuitry of the fob
`(including the transponder) may draw its operating power
`from the battery power source. Alternatively, the fob may
`exist independent of an internal power source. In this instance
`the internal circuitry of the fob (including the transponder)
`may gain its operating power directly from an RF interroga
`tion signal. U.S. Pat. No. 5,053,774, issued to Schuermann,
`
`describes a typical transponder RF interrogation system
`which may be found in the prior art. The Schuermann patent
`describes in general the powering technology Surrounding
`conventional transponder structures. U.S. Pat. No. 4,739,328,
`discusses a method by which a conventional transponder may
`respond to a RF interrogation signal. Other typical modula
`tion techniques which may be used include, for example,
`ISO/IEC 14443 and the like.
`0004. In the conventional fob powering technologies used,
`the fob is typically activated upon presenting the fob in an
`interrogation signal. In this regard, the fob may be activated
`irrespective of whether the user desires such activation. Inad
`vertent presentation of the fob may result in initiation and
`completion of an unwanted transaction. Thus, a fob system is
`needed which allows the fob user to control activation of the
`fob to limit transactions being undesirably completed.
`0005. One of the more visible uses of the RFID technology
`is found in the introduction of Exxon/Mobil's Speedpass(R)
`and Shell's EasyPay(R) products. These products use tran
`sponders placed in a fob or tag which enables automatic
`identification of the user when the fob is presented at a Point
`of Sale (POS) device. Fob identification data is typically
`passed to a third-party server database, where the identifica
`tion data is referenced to a customer (e.g., user) creditor debit
`account. In an exemplary processing method, the server seeks
`authorization for the transaction by passing the transaction
`and account data to an authorizing entity. Once authorization
`is received by the server, clearance is sent to the point of sale
`device for completion of the transaction. In this way, the
`conventional transaction processing method involves an indi
`rect path which causes undue overhead due to the use of the
`third-party server.
`0006. A need exists for a transaction authorization system
`which allows fob transactions to be authorized while elimi
`nating the cost associated with using third-party servers.
`0007. In addition, conventional fobs are limited in that
`they must be used in proximity to the Point of Sale device.
`That is, for fob activation, conventional fobs must be posi
`tioned within the area of transmission cast by the RF interro
`gation signal. More particularly, conventional fobs are not
`effective for use in situations where the user wishes to con
`duct a transaction at a point of interaction Such as a computer
`interface.
`0008. Therefore, a need exists for a fob embodying RFID
`acquisition technology, which is capable of use at a point of
`interaction device and which is additionally capable of facili
`tating transactions via a computer interface connected to a
`network (e.g., the Internet).
`0009 Existing transponder-reader payment systems are
`also limited in that the conventional fob used in the systems is
`only responsive to one interrogation signal. Where multiple
`interrogation signals are used, the fob is only responsive to the
`interrogation signal to which it is configured. Thus, if the
`RFID reader of the system provides only an interrogation
`signal to which the fob is incompatible, the fob will not be
`properly activated.
`0010. Therefore, a need exists for a fob which is respon
`sive to more than one interrogation signal.
`0011
`Existing transponder-reader payment systems are
`additionally limited in that the payment systems are typically
`linked to a funding Source associated with the transponder
`which includes a predetermined spending limit. Thus no flex
`ibility is provided in instances where the payment is requested
`which exceeds the predetermined spending limit. This is typi
`
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`

`US 2009/0171851 A1
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`Jul. 2, 2009
`
`cally true in that traditional methods for processing a
`requested transaction involve comparing the transaction to
`the spending limit or to an amount Stored in a preloaded value
`data file prior to providing transaction authorization to a
`merchant.
`0012. Thus, a system is needed which processes transpon
`der-reader payment requests irrespective of the spending
`limit assigned to an associated transponder-reader payment
`system finding Source.
`0013 Further, traditional transponder-reader systems do
`not permit the user to manage the system user account data.
`This is extremely problematic where the user wishes to
`change a transponder-reader system funding Source to a
`Source which provides more available spending room, or
`where changes are made to the user's status (e.g., change in
`address, phone number, email, etc.) for which the transpon
`der-reader account provider wishes to readily update the
`user's account.
`0014 Thus a need exists for a transponder-reader system
`which will allow the user limited access to the transponder
`reader account for managing account data.
`0015. Further still, existing transponder-reader systems do
`not usually permit means for automatically incenting the use
`of the fob associated with the system as opposed to the credit
`or charge card associated with the fob. That is, conventional
`transponder-reader systems do not provide a means for
`encouraging usage of the transponder reader system by
`encouraging use of the fob product since the present systems
`do not sufficiently distinguish between usage of a system
`transponder and a charge or credit card account associated
`with the transponder.
`0016 Consequently, a need exists for a transponder-reader
`system which is capable of determining when a system tran
`sponder is used, and providing an incentive for Such usage.
`0017 Still further, present systems are limited in that the
`systems are unable to track credit or charge card usage and
`fob usage for a single funding source. For example, in typical
`prior art systems, a fob may be linked to a specified funding
`Source (e.g., American Express, MasterCard, Visa, etc.)
`which may be used to provide funds for satisfaction of a
`transaction request. The funding Source may additionally
`have a consumer credit or charge card which may be associ
`ated with the fob and which may be used for contact transac
`tions. Where the credit or charge card is used, a statement
`reporting the card usage is provided to the card user. However,
`the reporting statement does not include a reporting of the fob
`product usage. Thus, a fob user is unable to adequately chart,
`analyze or compare fob usage to the usage of the associated
`card. This is especially problematic where the funding Source
`is used by more than one entity (e.g., spouses, multiple com
`pany personnel, etc.) or where one entity may use the fob and
`a separate entity may use the card associated with the fob.
`0018 Thus, a need exists for a transponder-reader pay
`ment system which would permit reporting of the fob usage
`and the credit card usage in a single file.
`
`SUMMARY OF THE INVENTION
`0019 Described herein is a system and method for using
`RFID technology to initiate and complete financial transac
`tions. The transponder-reader payment system described
`herein may include a RFID reader operable to provide a RF
`interrogation signal for powering a transponder system,
`receiving a transponder system RF signal, and providing tran
`sponder system account data relative to the transponder sys
`
`tem. RF signal. The transponder-reader payment system may
`include a RFID protocol/sequence controller in electrical
`communication with one or more interrogators for providing
`an interrogation signal to a transponder, a RFID authentica
`tion circuit for authenticating the signal received from the
`transponder, a serial or parallel interface for interfacing with
`a point of interaction device, and an USB or serial interface
`for use in personalizing the RFID reader and/or the transpon
`der. The transponder-reader payment system may further
`include a fob including one or more transponders (e.g., mod
`ules) responsive to one or more interrogation signals and for
`providing an authentication signal for verifying that the tran
`sponder and/or the RFID reader are authorized to operate
`within the transponder-reader payment system. In this way,
`the fob may be responsive to multiple interrogation signals
`provided at different frequencies. Further, the fob may
`include a USB or serial interface for use with a computer
`network or with the RFID reader.
`0020. The RFID system and method according to the
`present invention may include a transponder which may be
`embodied in a fob, tag, card or any other form factor (e.g.,
`wristwatch, keychain, cellphone, etc.), which may be capable
`of being presented for interrogation. In that regard, although
`the transponder is described herein as embodied in a fob, the
`invention is not so limited.
`0021. The system may further include a RFID reader con
`figured to send a standing RFID recognition signal which
`may be transmitted from the RFID reader via radio frequency
`(or electromagnetic) propagation. The fob may be placed
`within proximity to the RFID reader such that the RFID signal
`may interrogate the fob and initialize fob identification pro
`cedures.
`0022. In one exemplary embodiment, as a part of the iden
`tification process, the fob and the RFID reader may engage in
`mutual authentication. The RFID reader may identify the fob
`as including an authorized system transponder for receiving
`encrypted information and storing the information on the fob
`memory. Similarly, the fob, upon interrogation by the RFID
`reader, may identify the RFID reader as authorized to receive
`the encrypted and stored information. Where the RFID reader
`and the fob successfully mutually authenticate, the fob may
`transmit to the RFID reader certain information identifying
`the transaction account or accounts to which the fob is asso
`ciated. The RFID reader may receive the information and
`forward the information to facilitate the completion of a trans
`action. In one exemplary embodiment, the RFID reader may
`forward the information to a point of interaction device (e.g.,
`POS or computer interface) for transaction completion. The
`mutual authorization process disclosed herein aids in ensur
`ing fob transponder-reader payment system security.
`0023. In another exemplary embodiment, the fob accord
`ing to the present invention, includes means for completing
`transactions via a computer interface. The fob may be con
`nected to the computer using a USB or serial interface fob
`account information may be transferred to the computer for
`use in completing a transaction via a network (e.g., the Inter
`net).
`0024. In yet another exemplary embodiment of the present
`invention, a system is provided which incents usage of the
`transponder-reader system transponder (e.g., fob). The sys
`tem distinguishes between the usage of a fob and the usage of
`a charge or credit card sharing the same funding source as the
`fob. Where the fob is used, the system may provide incentives
`to the user based on criteria predetermined by the fob issuer.
`
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`Additionally, where a preloaded fob system is used, the
`present invention recognizes when the associated fob pre
`loaded value data file is loaded or reloaded with funds. The
`invention then may provide reward points based on the crite
`ria associated with the loading or reloading action. Further,
`the system according to this invention may incent patronage
`of a merchant. In this case, the system may receive a fob
`transaction request and incent the fob user based on a marker
`or other identifier correlated with the merchant. The marker
`may be included in the transaction identification, in a mer
`chant identification provided with the transaction, or a com
`bination of both.
`0025 Instill another exemplary embodiment of the inven
`tion, a system is disclosed which enables the fob user/owner
`to manage the account associated with the fob. The user is
`provided limited access to all or a portion of the fob account
`information stored on the account provider database for
`updating, for example, demographic information, account
`funding Source, and/or account restrictions (e.g., spending
`limits, personal identification number, etc.). Access to all or a
`portion of the account may be provided to the user telephoni
`cally, via a network (e.g., online) or via offline communica
`tions. For example, the fob user may be provided access to a
`system which has delayed communications with the account
`provider database wherein such a system may include, for
`example, a kiosk which provides batch transmissions to the
`account provider system. In this way, the fob user/owner may
`update his account information in real-time (e.g., telephoni
`cally or online) or at the time the account provider receives the
`updated information (e.g., offline).
`0026. In a further exemplary embodiment, the present
`invention provides methods for processing a transaction
`request whereby the amount of the transaction request may be
`approved prior to requesting funding from the funding Source
`and/or verifying that the amount for completing the transac
`tion is available. In this way, the transaction may be approved
`provided the transaction and/or account meets certain prede
`termined authorization criteria. Once the criteria is met, the
`transaction is authorized and authorization is provided to the
`requesting agent (e.g., merchant). In one instance the pay
`ment for the transaction is requested from the funding Source
`simultaneously to, or immediately following, the providing
`of the authorization to the merchant. In another instance, the
`payment for transactions is requested at a time period later
`than when the authorization is provided to the merchant.
`0027. In yet another embodiment, a method for registering
`biometric information for use in a transponder-reader system
`is disclosed. The method includes steps of detecting, verify
`ing and storing a proffered biometric sample. During detect
`ing, a sensor detects a proffered biometric to obtain a biomet
`ric Sample. During the verifying step, the biometric sample is
`compared with other stored samples and/or other informa
`tion. During the storing step, the biometric sample is stored on
`a database, for use by the transponder-reader System in autho
`rizing transactions.
`0028. These features and other advantages of the system
`and method, as well as the structure and operation of various
`exemplary embodiments of the system and method, are
`described below.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`0029. The accompanying drawings, wherein like numer
`als depict like elements, illustrate exemplary embodiments of
`
`the present invention, and together with the description, serve
`to explain the principles of the invention. In the drawings:
`0030 FIG. 1A illustrates an exemplary RFID-based sys
`tem in accordance with the present invention, wherein exem
`plary components used for fob transaction completion are
`depicted;
`0031
`FIG. 1B illustrates an exemplary personalization
`system in accordance with the present invention;
`0032 FIG. 2 is a schematic illustration of an exemplary
`fob in accordance with the present invention;
`0033 FIG. 3 is a schematic illustration of an exemplary
`RFID reader in accordance with the present invention;
`0034 FIG. 4 is an exemplary flow diagram of an exem
`plary authentication process in accordance with the present
`invention;
`0035 FIG. 5 is an exemplary flow diagram of an exem
`plary decision process for a protocol/sequence controller in
`accordance with the present invention;
`0036 FIGS. 6A-B are an exemplary flow diagram of a fob
`personalization process in accordance with the present inven
`tion;
`0037 FIGS. 7A-B are an exemplary flow diagram of a
`RFID reader personalization process in accordance with the
`present invention;
`0038 FIG. 8 is a flow diagram of an exemplary payment/
`transaction process in accordance with the present invention;
`0039 FIG. 9 is another schematic illustration of an exem
`plary fob in accordance with the present invention;
`0040 FIG. 10 is a depiction of an exemplary preloaded fob
`payment/transaction process in accordance with the present
`invention;
`0041
`FIGS. 11A-B are a depiction of an exemplary pre
`loaded fob account reload process in accordance with the
`present invention;
`0042 FIG. 12 is a depiction of an exemplary Direct Link
`payment/transaction process in accordance with the present
`invention;
`0043 FIG. 13 is a depiction of another exemplary pay
`ment/transaction process in accordance with the present
`invention;
`0044 FIG. 14 is a depiction of an exemplary biometrics
`process in accordance with the present invention;
`004.5
`FIG. 15 is another schematic illustration of an exem
`plary fob in accordance with the present invention; and
`0046 FIG. 16 another schematic illustration of an exem
`plary fob in accordance with the present invention.
`
`DETAILED DESCRIPTION
`0047. The present invention may be described herein in
`terms of functional block components, screen shots, optional
`selections and various processing steps. Such functional
`blocks may be realized by any number of hardware and/or
`Software components configured to perform to specified
`functions. For example, the present invention may employ
`various integrated circuit components, (e.g., memory ele
`ments, processing elements, logic elements, look-up tables,
`and the like), which may carry out a variety of functions under
`the control of one or more microprocessors or other control
`devices. Similarly, the software elements of the present inven
`tion may be implemented with any programming or scripting
`language such as C, C++, Java, COBOL, assembler, PERL,
`extensible markup language (XML), JavaCard and MULTOS
`with the various algorithms being implemented with any
`combination of data structures, objects, processes, routines or
`
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`
`other programming elements. Further, it should be noted that
`the present invention may employ any number of conven
`tional techniques for data transmission, signaling, data pro
`cessing, network control, and the like. For a basic introduc
`tion on cryptography, review a text written by Bruce Schneier
`entitled 'Applied Cryptography: Protocols, Algorithms, and
`Source Code in C. published by John Wiley & Sons (second
`edition, 1996), herein incorporated by reference.
`0048. In addition, many applications of the present inven
`tion could be formulated. The exemplary network disclosed
`herein may include any system for exchanging data or trans
`acting business, such as the Internet, an intranet, an extranet,
`WAN, LAN, satellite communications, and/or the like. It is
`noted that the network may be implemented as other types of
`networks, such as an interactive television network (ITN).
`0049. Where required, the system user may interact with
`the system via any input device Such as, a keypad, keyboard,
`mouse, kiosk, personal digital assistant, handheld computer
`(e.g., Palm Pilot(R), Blackberry(R), cellular phone and/or the
`like). Similarly, the invention could be used in conjunction
`with any type of personal computer, network computer, work
`station, minicomputer, mainframe, or the like running any
`operating system Such as any version of Windows, Windows
`NT, Windows 2000, Windows 98, Windows 95, MacOS,
`OS/2, BeOS, Linux, UNIX, Solaris or the like. Moreover,
`although the invention may frequently be described as being
`implemented with TCP/IP communications protocol, it
`should be understood that the invention could also be imple
`me