USOO7239226B2
`
`(12) United States Patent
`Berardi et al.
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 7.239,226 B2
`Jul. 3, 2007
`
`(54) SYSTEM AND METHOD FOR PAYMENT
`USING RADIO FREQUENCY
`IDENTIFICATION IN CONTACT AND
`CONTACTLESS TRANSACTIONS
`
`(75) Inventors: Michael J. Berardi, Lauderhill, FL
`(US); Michal Bliman, Matawan, NJ
`(US); David S. Bonalle, New Rochelle,
`NY (US); Jennifer Anne Elwood, New
`York, NY (US); Matthew C. Hood,
`Wayne, PA (US); Susan E. Isenberg,
`New York, NY (US); Alexandra
`Mayers, New York, NY (US); Peter D.
`Saunders, Salt Lake City, UT (US);
`Kathryn D. Scheding, New York, NY
`(US); Sejal Ajit Shah, New York, NY
`(US); John R. Williamson, Jersey City,
`NJ (US)
`(73) Assignee: American Express Travel Related
`Services Company, Inc., New York,
`NY (US)
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 128 days.
`
`(*) Notice:
`
`(21) Appl. No.: 10/192,488
`
`(22) Filed:
`
`Jul. 9, 2002
`(Under 37 CFR 1.47)
`
`(65)
`
`Prior Publication Data
`US 2004/OO49.451 A1
`Mar. 11, 2004
`
`Related U.S. Application Data
`(60) Provisional application No. 60/304.216, filed on Jul.
`10, 2001.
`
`(51) Int. Cl.
`(2006.01)
`H04Q I/00
`(52) U.S. Cl. ...................... 340/5.61; 340/10.1; 340/5.4
`
`(58) Field of Classification Search ............... 340/5.52,
`340/5.6, 5.82, 10.1, 10.41, 541; 705/17,
`705/18; 343/726
`See application file for complete search history.
`References Cited
`
`(56)
`
`U.S. PATENT DOCUMENTS
`
`3,914,762 A * 10/1975 Klensch ..................... 340/10.1
`(Continued)
`FOREIGN PATENT DOCUMENTS
`
`CH
`
`689070
`
`8, 1988
`
`(Continued)
`OTHER PUBLICATIONS
`European Search Report dated Nov. 16, 2004.
`(Continued)
`Primary Examiner Brian Zimmerman
`(74) Attorney, Agent, or Firm Fitzpatrick, Cella, Harper &
`Scinto
`
`(57)
`
`ABSTRACT
`
`A transponder-reader payment system includes a fob includ
`ing a transponder, and a RFID reader for interrogating the
`transponder. The system may further include a personaliza
`tion system for populating onto the fob and RFID reader
`identifying information and security and authentication keys
`which may be used during mutual authentication of the fob
`and the reader and for completing a transaction. In exem
`plary operation, the fob and RFID reader may be personal
`ized, the fob may be presented to the RFID reader for
`interrogation, the fob and reader may engage in mutual
`authentication, and fob identifying information may be
`provided to the reader for transaction completion. In another
`exemplary embodiment, operation of the transponder-reader
`payment system may be controlled by an activation circuit.
`Further, the fob may be responsive to multiple interrogation
`signals.
`
`12 Claims, 12 Drawing Sheets
`
`
`
`102
`
`138
`
`Petitioner's Exhibit 1010, Page 1
`
`

`

`US 7,239.226 B2
`Page 2
`
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`Petitioner's Exhibit 1010, Page 2
`
`

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`
`

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`
`Petitioner's Exhibit 1010, Page 4
`
`

`

`US 7,239.226 B2
`Page 5
`
`2005, OO33686 A1
`2005, 0122209 A1
`
`2/2005 Peart et al.
`6, 2005 Black
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`WO O2/O86665 A2 10, 2002
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`WO O2.101670 A2 12/2002
`
`OTHER PUBLICATIONS
`Functional Specification, Standard Card IC MF1 IC S50, Philips
`Semiconductors, Product Specification Rev. 5.1 May 2001.
`“Bank Extends RFID Payment Pilot: Bank of America will continue
`to test its Quick Wave RFID payment card for another three
`months'. RFID Journal, Jan. 23, 2003.
`“MasterCard to Test RFID Card: Pilot will test whether consumers,
`merchants and credit card issuers value "contactless' payments'.
`RFID Journal, Dec. 20, 2002.
`“Vendors Target Amusement Parks: Protecting children and
`enabling cashless payments make RFID an appealing option for the
`entertainment industry'. RFID Journal, Nov. 27, 2002.
`
`“Inside's Next-Gen Smart Card: The French company plans to
`introduce an RFID card that uses a 16-bit microprocessor and new
`encryption technology'. RFID Journal, Oct. 29, 2002.
`“Sony, Philips Creating RFID Link: Consumer electronics giants are
`jointly developing a new RFID standard for payments and for
`communication between devices'. RFID Journal, Sep. 17, 2002.
`“Japan Gets Digital Ticket System: A national ticket seller and
`phone company are teaming up to create an electronic-ticket net
`work'. RFID Journal, Aug. 21, 2002.
`"Security for Wireless Java: NTRU, a starup that offers security
`software, has relased a Java version of its NTRU encryption
`algorithm'. RFID Journal, Jun. 27, 2002.
`"Making RFID Payments Ubiquitous: Philips and Visa want people
`to be able to pay for goods and services anywhere by using RFID
`chips embedded in phones and other devices'. RFID Journal, Jun.
`2, 2003.
`"RFID Smart Cards Gain Ground: The convenience of contactless
`transactions is driving widespread adoption of contactless Smart
`cards'. RFID Journal, Apr. 9, 2003.
`“T1 Embraces Prox Card Standard: Texas Instrument's ISO 14443
`payment platform promises faster data transfer rates and more
`security”, RFID Journal, Mar. 6, 2003.
`“Multiple Frequency Transponders: Volume production of dual
`band RFID chips begins'. Frontline Solutions, Jul. 16, 2003.
`“What's New: Timex Watch Features Speedpass System'. http://
`www.speedpass.com/news/article.jsp?id=51 (1 page).
`“Physical Reality: A Second Look”. Ken Sharp, Senior Technical
`Editor, http://www.idsystems.com/reader/1999 03/phys0399 pt2/
`phys0399 pt2.htm (6 pages).
`“Magic Wands' to Speed Mobile Sales”, BobBrewin, Jan. 15, 2001,
`http://www.computerworld.com/mobiletopics/mobile/story
`1,10801,563300.html (4 pages).
`“Mobile Speedpass Goes Global as Mobil Singapore Rolls Out
`Asia's First RFID-Based Pay-At-The-Pump System”. Press
`Release, Apr. 5, 1999, http://www.ti.com/tiris/docs/news releases/
`rel12.htm (3 pages).
`“Speedpass Unleashed'. Jun. 4, 2002 http://www.cardweb.com/
`cardtrak/news/cf2 20a 97.html (2 pages).
`Prophecy Central Update #9, Oct. 10, 1997, http://www.bible
`prophecy.com/pcu9.htm (5 pages).
`International Newsletter of the TI RFID Group, Issue 20, 2000 (12
`pages).
`“CES: Microsoft's SPOT Technology has Humble Origins”, by
`James Niccolai, Jan. 10, 2003, http://archive.inforworld.com/ar
`ticles/hn/xml/03/01/10/0301 10hnspot.xml?s=IDGNS (3 pages).
`“Microsoft: See SPOT Run. On Your Wrist”, by Richard Shim, Jun.
`5,
`2003,
`http://news.com.com/2100-1041 3-1013442.
`html?tag fl top (1 page).
`“Networking: Microsoft SPOT”, by Jeremy A. Kaplan, Jul. 1, 2003,
`http://www.pcmag.com/print article/0,3048.a=43561,00.asp
`(2
`pages).
`“Microsoft Launches Smart Personal Object Technology Initiative'.
`Press Release from COMDEX Fall 2002, Nov. 17, 2002, http://
`www.Microsoft.com/presspass/features/2002/nov02/11-17SPOT.
`asp (4 pages).
`* cited by examiner
`
`Petitioner's Exhibit 1010, Page 5
`
`

`

`U.S. Patent
`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 1 of 12
`
`US 7.239,226 B2
`US 7,239,226 B2
`
`
`
` CUSTOMERINTERFACE 130
`
`
`
`
`
`
`
`136
`
`FIG.1A
`
`134
`
`
`TRANSPONDER
`
`TRANSPONDER
`
`102
`
`102
`
`Petitioner's Exhibit 1010, Page 6
`
`Petitioner's Exhibit 1010, Page 6
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 2 of 12
`
`US 7.239,226 B2
`
`
`
`
`
`WELSÅS NO||WZITVNOS!!Ed
`
`900|
`
`Petitioner's Exhibit 1010, Page 7
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 3 of 12
`
`US 7.239,226 B2
`
`
`
`102
`
`13MHz
`ANFSNNA
`
`202
`
`RFID FOB
`
`SECURE
`MEMORY
`
`114
`
`210
`
`22
`
`RFIF
`13.56MHz
`
`AUTHENTICATION
`CIRCUIT
`
`134kHz
`TRANSPONDER
`
`206
`
`208
`
`MOD/DEMOD
`ISO/IEC
`14443-2
`
`222
`
`PROTOCOL
`SEQUENCE
`CONTROLLER
`
`214
`
`DATA MEMORY
`(ENCRYPTED)
`
`FIG.2
`
`Petitioner's Exhibit 1010, Page 8
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 4 of 12
`
`US 7.239,226 B2
`
`
`
`EONE[\ÕES
`
`/TOOO LO}{c}
`}}ETTO?]] NOO
`
`Petitioner's Exhibit 1010, Page 9
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 5 of 12
`
`US 7.239,226 B2
`
`402
`
`404
`
`406
`
`4.08
`
`410
`
`RFID READER PROVIDES
`INTERROGATIONSIGNAL
`
`FOB RECEIVES THE
`INTERROGATIONSGNAL
`
`FOBENCRYPTS THE
`AUTHENTICATION CODE
`
`ENCRYPTED
`AUTHENTCATION CODE
`PROVIDED TO RFID READER
`
`RFID READER DECRYPS
`THE ENCRYPTSD
`AUTHENTCATION CODE
`
`
`
`
`
`YES
`
`FOB
`AUHENCATED
`
`TRANSACTION
`PROCEEDS
`
`
`
`CORRECTLY
`ENCRYPTED
`414
`
`416
`
`412
`
`NO
`
`FOB NOT
`AUTHENTCATED
`
`TRANSACTION
`TERMINATED
`
`4.
`
`4
`
`FG4
`
`Petitioner's Exhibit 1010, Page 10
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 6 of 12
`
`US 7.239,226 B2
`
`504
`COMA)RED TO
`
`UNNTERRUPTED
`INTERROGATION
`SIGNAL
`
`CSTARD
`502
`
`506
`
`
`
`YES COMMANDRFID TO
`AUTHENTICATE
`
`
`
`
`
`
`
`COMMANDRFID
`TO RETRIEVE KEY
`
`
`
`5 12
`
`508
`
`NO
`
`YES/FOB
`SIGNAL
`
`524
`
`
`
`COMMAND RFID
`TO REMANDLE
`
`
`
`COMMAND RFID
`TO OPEN
`COMMUNICATION
`WITH POS DEVICE
`
`NTERRQGAT.9)
`YES
`
`COMMAND RFID
`TOENCRYPT SIGNAL
`
`
`
`COMMAND RFID
`TO PROVIDESIGNAL TO FOB
`
`FG.5
`
`Petitioner's Exhibit 1010, Page 11
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 7 of 12
`
`US 7.239,226 B2
`
`AUTHENTICATE
`PERSONALIZATION
`SYSTEM
`
`602
`
`604
`
`612
`
`ABORT
`PERSONAIZATIO
`
`YES
`
`610
`
`ERMNATION
`BY OPERATOR
`OR TIME-OU
`
`
`
`
`
`AUTHENTICATION
`SUCCESSFU
`
`
`
`LOAD FOBDATA FOR
`PERSONALIZATION
`FORM KEYBOARD ORFILE)
`
`NO
`
`
`
`
`
`
`
`PRESENT FOBFOR
`PERSONALIZATION TO RF
`READER READERESTABLISHES
`COMMUNICATIONAND GETSD
`
`
`
`
`
`TARGET FOB
`PRESENT
`
`YES
`
`FG.6A
`
`Petitioner's Exhibit 1010, Page 12
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 8 of 12
`
`US 7.239,226 B2
`
`626
`
`CREATE LOG FILE ENTRY
`FOR RECORD KEEPNG
`
`616
`
`618
`
`
`
`
`
`628
`E9F9RN NO
`INTERRUPTED
`FOB PRESENCE
`
`YES
`
`
`
`SECURITY ALERT
`
`CREATE FOB-SPECIFIC
`DVERSIFIEDKEYS
`
`CONFIGURE FOB AND LOAD
`DIVERSIFIED FOB KEYS (USE OF
`NITIAL PRODUCTION KEYS FOR
`AUTHENTICATION AND SIGNATURE)
`
`CREATE ENCRYPTED
`PAYLOAD DATA USING
`PAYLOAD KEYS
`
`620
`
`
`
`
`
`
`
`
`
`
`
`
`
`LOADENCRYPTED PAYLOAD DATA
`TOFOB (USING NEW FOB KEYS FOR
`AUTHENTICATION AND SIGNATURE)
`
`EXECUTERREVERSIBLE LOCKING
`OF FOB (USING NEW FOB KEYS FOR
`AUTHENTICATION AND SIGNATURE)
`
`
`
`
`
`622
`
`PERSONALIZE
`NEXT FOB?
`
`s:
`
`YES
`
`(e)
`
`FIG.6B
`
`Petitioner's Exhibit 1010, Page 13
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 9 of 12
`
`US 7.239,226 B2
`
`702
`
`704
`
`READER GETS
`CONNECTED FOR
`PERSONALIZATION
`
`ESTABLISH
`COMMUNICATION READER
`SENDS AND STATUS
`706
`
`
`
`NITIAL
`PERSONALIZAT. ON
`
`NO
`
`710
`
`
`
`YES
`
`MUTUALAUTHENTICATION
`BETWEENPC AND READER
`(WITH AUTHENTICKEYS)
`
`MUTUALAUTHENTICATION
`BETWEENPC AND READER (ST
`TIME WITH DEFAULTKEYS)
`
`
`
`712
`
`ABORT
`PERSONALIZATIO
`
`714
`
`NO AUTHENTICATION
`OKAY?
`
`718
`
`YES
`
`716
`
`DOWNLOAD FRMWARE
`TO READER TERMINAL
`
`YES
`
`
`
`
`
`FRMWARE
`UPDATE OR
`NTIAL LOADIS
`
`FG.7A
`
`Petitioner's Exhibit 1010, Page 14
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 10 of 12
`
`US 7.239,226 B2
`
`722
`
`DOWNLOAD
`PERSONALIZATION KEYSTO YES
`READER TERMINAL
`(ENCRYPTED
`COMMUNICATION)
`
`
`
`
`
`
`
`720
`
`724
`
`PERSONALIZATION
`KEYS UPDATE
`OR NITIAL
`LOADING
`
`
`
`NO
`
`
`
`NO
`FOB
`KEYS UPDATE
`OR NITIAL
`LOADING
`
`DOWNLOAD FOB KEYS TO READER
`TERMINAL (ENCRYPTED
`COMMUNICATION)
`
`READER TERMINAL LOADS FOB
`KEYS INTORF MODULE
`(AUTHENTICATION, SIGNATURE)
`
`726
`
`728
`
`730
`
`732
`
`UPDATE STATUSLOG
`
`END
`PERSONALIZATIO
`FG.7B
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Petitioner's Exhibit 1010, Page 15
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 11 of 12
`
`US 7.239,226 B2
`
`802
`
`CUSTOMER
`CHOOSESEME
`
`MERCHANT NTATES
`RF PAYMENT PROCEDURE
`
`RF TERMINAL SCANS
`FOR FOB ON INTERNAL
`OR EXTERNAL ANTENNA
`
`CUSTORRESENTS
`RF TERMINAL
`
`MUTUALAYLENSATION
`AND READER
`
`804
`
`806
`
`808
`
`810
`
`RF TERMINAL PROVIDES
`USER FEEDBACK
`
`TRANSFERENCRYPTED
`TRACK1 ? TRACK2 DATA
`FROMFOBTO
`RF TERMINAL
`
`RF TERMINAL DE-CRYPTS
`DATA AND CONVERTS
`TOISO/IEC 7813 FORMAT
`
`TRACK1 TRACK2 DATA
`TRANSFERRED TO
`POSTERMINAL
`
`PAYMENT TRANSACTION
`PROCESSED BY
`POSTERMINAL
`
`812
`
`
`
`
`
`AUTHENTICATION
`SUCCESSFUL
`
`NO
`
`ERROR MESSAGE TO POS
`(ORTIME OUT)
`AND USER FEEDBACK
`
`POS SENDS TRANSACTION
`STATUS BACK TO
`RF TERMINAL
`
`YES
`
`RF TERMINAL PROVIDES
`USER FEEDBACK
`
`814
`
`834
`
`TRANSACTION
`COMPLETED
`
`818
`
`820
`
`822
`
`824
`
`828
`
`830
`
`832
`
`816
`
`ABORT
`TRANSACTION
`
`FG.8
`
`Petitioner's Exhibit 1010, Page 16
`
`

`

`U.S. Patent
`
`Jul. 3, 2007
`
`Sheet 12 of 12
`
`US 7.239,226 B2
`
`102
`
`
`
`PROTOCOL
`206
`SEQUENCE
`MoD DEMool (CONIRO
`TROLLER
`
`DATA
`MEMORY
`
`214
`
`BIOMETRIC
`SENSOR
`
`FIG.9
`
`Petitioner's Exhibit 1010, Page 17
`
`

`

`US 7,239,226 B2
`
`1.
`SYSTEMAND METHOD FOR PAYMENT
`USING RADIO FREQUENCY
`IDENTIFICATION IN CONTACT AND
`CONTACTLESS TRANSACTIONS
`
`RELATED APPLICATIONS
`
`This invention claims priority to U.S. Provisional Appli
`cation No. 60/304216, entitled “SYSTEMAND METHOD
`FOR RFID PAYMENT, filed on Jul. 10, 2001 and incor
`10
`porated herein by reference.
`
`FIELD OF INVENTION
`
`This invention generally relates to a system and method
`for completing a transaction, and more particularly, to
`completing a financial transaction using Radio Frequency
`Identification (RFID) in contact and contactless transactions.
`
`15
`
`BACKGROUND OF THE INVENTION
`
`2
`passed to a third party server database, where the identifi
`cation data is referenced to a customer (e.g., user) credit or
`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 indirect path which causes undue overhead due
`to the use of the third-party server.
`A need exists for a transaction authorization system which
`allows Fob transactions to be authorized while eliminating
`the cost associated with using third-party servers.
`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 positioned
`within the area of transmission cast by the RF interrogation
`signal. More particularly, conventional fobs are not affective
`for use in situations where the user wishes to conduct a
`transaction at a point of interaction Such as a computer
`interface.
`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
`facilitating transactions via a computer interface connected
`to a network (e.g., the Internet).
`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.
`Therefore, a need exists for a fob which is responsive to
`more than one interrogation signal.
`
`SUMMARY OF THE INVENTION
`
`Described herein is a system and method for using RFID
`technology to initiate and complete financial transactions.
`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
`transponder system account data relative to the transponder
`system RF signal. The transponder-reader payment system
`may include a RFID protocol/sequence controller in elec
`trical communication with one or more interrogators for
`providing an interrogation signal to a transponder, a RFID
`authentication circuit for authenticating the signal received
`from the transponder, a serial or parallel interface for inter
`facing with a point of interaction device, and an USB or
`serial interface for use in personalizing the RFID reader
`and/or the transponder. The transponder-reader payment
`system may further include a fob including one or more
`transponders (e.g., modules) responsive to one or more
`interrogation signal and for providing an authentication
`signal for verifying that the transponder and/or the RFID
`reader are authorized to operate within the transponder
`reader payment system. In this way, the transponder may be
`responsive to multiple interrogation signals provided at
`different frequencies. Further, the for may include a USB or
`serial interface for use with a computer network or with the
`RFID reader.
`The RFID system and method according to the present
`invent