USOO8498898B1
`
`(12) United States Patent
`Kogen et al.
`
`(10) Patent No.:
`(45) Date of Patent:
`
`US 8.498,898 B1
`Jul. 30, 2013
`
`(54) SYSTEMAND METHOD FOR POINT OF USE
`REWARD DETERMINATION
`
`(75) Inventors: Mark F. Kogen, Lawndale, CA (US);
`Ramiro Munoz, Santa Monica, CA (US)
`(73) Assignee: Citicorp Development Center, Inc.,
`Blue Ash, OH (US)
`s
`Subject to any disclaimer, the term of this
`patent is extended or adjusted under 35
`U.S.C. 154(b) by 0 days.
`
`(*) Notice:
`
`(21) Appl. No.: 09/526,876
`
`1-1.
`(22) Filed:
`
`Mar 16, 2000
`
`Related U.S. Application Data
`(60) Provisional application No. 60/125,353, filed on Mar.
`19, 1999.
`
`(51) Int. Cl.
`(2012.01)
`G06O 30/00
`(2012.01)
`G06O 30/02
`(52) U.S. Cl
`AV e. we
`USPC ... 705/14.3; 705/14.1: 705/14.17; 705/14.23;
`705/14.28; 705/14.33; 705/14.38; 705/14.39
`(58) Field of Classification Search
`USPC .................. 705/1, 10, 14, 14.1, 14.17, 14.23,
`705/14.28, 14.3, 14.33. 14.38. 14.39: 235/379
`s
`s
`s
`s
`235/380
`lication file f
`let
`h historv.
`See app
`p
`ry
`Ca1Ca1OT TO CO. SeaCl 1SO
`References Cited
`
`(56)
`
`U.S. PATENT DOCUMENTS
`4,650,981 A
`3, 1987 Foletta .......................... 235,449
`4,795,898 A
`1, 1989 Bernstein et al. ............. 235,487
`4,977,501 A 12, 1990 Lefevre ......................... 364/401
`5,380,991 A *
`1/1995 Valencia et al. .............. 235,383
`
`5/1995 Hoss ............................. 235,380
`5,412, 192 A
`5,477,215 A 12/1995 Mandelbaum .
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`5,484.997 A
`1/1996 Haynes ......................... 235/492
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`1/1997 Kenneth et al.
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`5,687,322 A 11/1997 Deaton et al. ......
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`5,689,100 A 1 1/1997 Carrithers et al. ............ 235/380
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`3/1998 Halpern .......................... 380.49
`5,806,045 A
`9/1998 Biorge et al. ................... TO5/14
`5,884,271 A
`3/1999 Pitroda
`5,956,694. A * 9/1999 Powell ............................ TO5/14
`ck
`SE f
`3. San et al." TO5/14
`2002fOO65712 A1* 5, 2002 Kawan
`FOREIGN PATENT DOCUMENTS
`12267/97
`7/1997
`12267/97 A
`7/1997
`933.717 A
`8, 1999
`2743021
`7/1997
`
`AU
`AU
`EP
`FR
`
`(Continued)
`OTHER PUBLICATIONS
`Schlumberger unveils e-cash enabled Smart loyalty card from
`Newsbutes News Network dated Apr. 24, 1997.*
`(Continued)
`Primary Examiner — Raquel Alvarez
`y
`C
`74). Att
`Agent, or Firm — Eric L. Sophir. Dentons US
`Orney, Agent, or Firm — Eric L. Sopnir, Lentons
`
`ABSTRACT
`(57)
`A system and method that allows a group of organizations,
`e.g. a group of transit agencies, to provide their users with a
`stored value Smart card payment method that rewards them
`f
`luse. The sy
`d method include a card interf
`Oractual use. The SVStem and method 1nclude a card 1nterface
`device and a Smart card for storing respective reward appli
`cations, wherein the card interface device reward application
`retrieves transaction and reward data from the Smart card and
`processes the data within the card interface device in order to
`determine a transaction reward.
`
`6 Claims, 7 Drawing Sheets
`
`A valuet
`Smari Card
`
`Program
`CI
`12
`
`
`
`utilize Smart Card to perform
`transaction with Cld
`in wi
`0.
`
`
`
`Failure
`
`Mutual autheticatiyerification
`18
`Success
`CID searches SmartCard for reward splication
`
`
`
`
`
`Transactics
`Asted
`188
`
`CD determines application-based
`and classification-based reward
`14
`
`ID determines usage at shared effering rewards
`18
`
`CID calculates transaction amount
`118
`
`CIC) verifies walue less than transaction armourt
`2
`
`I deducts transactinamourt from Walus
`22
`
`updates Smart card files &Idkg
`
`Audiciisual cue
`12
`
`ransaction xmplete
`128
`
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`US 8,498,898 B1
`Page 2
`
`FR
`FR
`GB
`WO
`WO
`WO
`WO
`WO
`
`FOREIGN PATENT DOCUMENTS
`2762424
`10, 1998
`276973O
`4f1999
`2274349
`1, 1997
`WO 98,34458
`8/1998 .................. TO5, 14 X
`WO98, 47.093
`10/1998 .................. TO5, 14 X
`WO98,52159 A 11, 1998
`WO99/O1960
`1/1999 .................. TO5, 14 X
`WO99/13438 A
`3, 1999
`OTHER PUBLICATIONS
`“uniLoyalty—Software Solution for Loyalty Scheme.” site copyright
`of 1998, accessed Sep. 9, 1999, http://www.unicom.fi/uni loyalty.
`html.
`“Smart Cards Allow Supermarkets Loyalty Scheme to Target Indi
`vidual Shoppers,” Jun. 16, 1998, http://www.schlumberger.com/irf
`news/sct-edah O698.html.
`Lent, B., Derksen, E., "The Electronic Purse: A New and Economical
`Means of Payment for Public Transport.” Signal und Draht, vol. 85,
`No. 5, pp. 143-147, May 1993.
`Goto, K., Miki, S., “A New Railway Ticket System Using Contactless
`IC Cards,” Rail International, vol. 25, No. 2, pp. 26-30, Feb. 1994.
`O'Sullivan, O., “From France, A Glimpse of Things to Come Elec
`tronic Purse”. ABA Banking Journal, vol. 89, No. 3, pp. 57-58, 60,
`62, 69, Mar. 1997.
`Rainio, M., "Smart Card Provides Ticket to Ride.” ID Systems Euro
`pean Edition, vol. 5, No. 2, pp. 14, 16-17, Feb. 1997.
`Cunningham, R. F., "Smart Card Applications in Integrated Transit
`Fare, Parking Fee and Automated Toll Payment Systems—The
`MAPS Concept.” Conference Proceedings, National Telesystems
`Conference 1993, Commercial Applications and Dual-Use Technol
`ogy, (Cat. No. 93CH3318-3), pp. 21-25, Published: New York, NY.
`USA, 1993.
`Matukawa, K., Takesita, T., Aoyagi, H., Sezai, H., Tajima J., “Auto
`matic Passenger Gate System Using Contactless IC Card.” Transac
`tions of the Institute of Electrical Engineers of Japan, Part C. vol.
`115-C, No. 5, pp. 634-643, May 1995.
`
`Mathieu, J. M.. “Multi-Services/Multi-Providers Remote Ticketing
`on the Marseille Metropolitan Area.” Steps Forward, Proceedings of
`the Second World Congress on Intelligent Transport Systems ’95
`Yokohoma, Pt. vol. 5, pp. 2221-2222, Published: Tokyo, Japan, 1995.
`Attoh Okine, N.O., Shen, L.D., “Security Issues of Emerging Smart
`Cards Fare Collection Application in Mass Transit.” Pacific Rim
`TransTech Conference, 1995 Vehicle Navigation and Information
`Systems Conference Proceedings, 6th International VNIS, A Ride
`into the Future (Cat. No. 95CH35776), pp. 523-526, Published: New
`York, NY, USA, 1995.
`Quittner, Jeremy, “MasterCard to Pilot-Test Business Chip Card with
`Ticketless-Travel Feature.” American Banker, vol. 162, No. 135, p.
`17, Jul 16, 1997.
`Block, Valerie, "Lufthansa Using Smart Card that Eliminates Some
`Domestic Travelers’ Need for Tickets.” American Banker, vol. 161,
`No. 33, p. 12, Feb. 21, 1996.
`“SmarTrip(R). More than a smart card. It's Pure Genius', online).
`Washington Metropolitan Area Transit Authority (WMATA),
`retrieved on Dec. 12, 2002, Retrieved from Internet: www.wmata.
`com/riding/smartrip.cfm.
`Australian Patent Office Search Report dated Oct. 10, 2001.
`FR 2743021 published Jul. 4, 1997. Abstract only in English, down
`loaded from espacenet.com, 2 pages.
`FR 2762424 published Oct. 23, 1998, Abstract Only in English,
`downloaded from espacenet.com, 1 page.
`FR 2769730, published Apr. 16, 1999, Abstract Only in English,
`downloaded from espacenet.com, 1 page.
`European Search Report dated Jul. 29, 2003 in related Application
`No. EP00200964 filed Mar. 17, 2000, 3 pages.
`Australian Examiner's first Report dated Nov. 10, 2000 in related
`Application No. 22426/00, filed Mar. 17, 2000 2 pages.
`Search Report, and Written Opinion dated Oct. 10, 2001 in related
`Application No. SG 200001484-5 filed Mar. 17, 2000, 8 pages.
`* cited by examiner
`
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`

`U.S. Patent
`
`Jul. 30, 2013
`
`Sheet 1 of 7
`
`US 8.498,898 B1
`
`Smart Card
`22
`
`Card Interface
`Device
`24
`
`Fig. 1
`
`
`
`Card Interface Device 24
`
`Microcomputer 28
`&
`
`Applications
`48
`8:8&:8:8:
`CPU
`42
`
`Input/Output
`43
`
`Co-processor
`44
`
`Fig. 2
`
`Contact
`Interface
`30
`
`Contactless
`interface
`32
`
`Audio
`Component
`34
`
`Display
`Component
`36
`
`input Device
`38
`aa
`
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`U.S. Patent
`
`Jul. 30, 2013
`
`Sheet 2 of 7
`
`US 8.498,898 B1
`
`CID Applications 48
`
`Reward
`Application
`Program
`50
`
`Reward
`Application
`53
`
`Payment
`Application
`51
`
`Transaction
`LogFile
`52
`
`
`
`Smart Card 22
`
`Microcomputer 58
`
`Card
`Operating
`SVStem
`'s
`
`Smart Card
`Applications
`72
`
`Fig. 3
`
`Fig. 4
`
`Contact
`Interface
`60
`
`Contactless
`Interface
`62
`
`Co-processor
`68
`
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`U.S. Patent
`
`Jul. 30, 2013
`
`Sheet 3 of 7
`
`US 8.498,898 B1
`
`
`
`Smart Card Applications 72
`
`Master File 74
`
`- - - - - - - - - - - - - - - - - - - - - - - - -
`Directory Files 76
`
`Electronic
`Purse
`Application
`80
`
`|
`
`|
`
`Smart Card
`Reward
`Application
`82
`
`Purchase
`Transaction
`Log
`96
`
`Cardholder
`Personality
`86
`
`Product List
`90
`
`Product Records
`92
`
`Elemental Files 78
`
`Application
`Personality
`84
`
`Application
`Transaction
`Log
`94
`
`Fig. 5
`
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`U.S. Patent
`
`Jul. 30, 2013
`
`Sheet 4 of 7
`
`US 8.498,898 B1
`
`Add value to
`Smart Card
`100
`
`Program
`CID
`102
`
`Utilize Smart Card to perform
`transaction with CD
`104
`
`
`
`Failure
`
`Mutual authentication/verification
`106
`SuCCeSS
`CID searches Smart Card for reward application
`110
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Transaction
`Aborted
`108
`
`
`
`CID retrieves relevant files
`112
`
`CID determines application-based
`and classification-based reward
`114
`
`CID determines usage and shared offering rewards
`116
`
`CD Calculates transaction amount
`118
`
`CD verifies value less than transaction amount
`120
`Yes
`CD deducts transaction amount from value
`122
`
`CID updates Smart Card files CID log
`124
`
`Audio/visual Cue
`126
`
`Transaction complete
`128
`Fig. 6
`
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`Jul. 30, 2013
`
`Sheet 5 Of 7
`
`US 8.498,898 B1
`
`200 Ya
`
`
`
`Provider
`56
`
`Localiver
`
`Provider
`56
`
`Local Server
`2O2
`
`Smart Card
`
`Smart Card
`
`Back End Systems
`26
`
`Fig. 7
`
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`U.S. Patent
`
`Jul. 30, 2013
`
`Sheet 6 of 7
`
`US 8.498,898 B1
`
`
`
`
`
`
`
`Back End Systems
`26
`
`Provider
`56
`
`
`
`Provider
`56
`
`Smart Card
`
`Smart Card
`
`
`
`
`
`Back End Systems
`26
`
`Collection/
`Update Device
`402
`
`Fig. 8
`
`Fig. 9
`
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`U.S. Patent
`
`Jul. 30, 2013
`
`Sheet 7 Of 7
`
`US 8.498,898 B1
`
`
`
`Back End Systems
`26
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`Storage 502
`
`Provider
`
`56
`
`
`
`Storage 502
`Medium
`
`Smart Card
`22
`
`Provider
`
`56
`
`Storage 502
`Medium
`
`Smart Card
`22
`
`Fig. 10
`
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`US 8,498,898 B1
`
`1.
`SYSTEMAND METHOD FOR POINT OF USE
`REWARD DETERMINATION
`
`CROSS-REFERENCE TO RELATED
`APPLICATIONS
`
`The present application claims priority to, and incorporates
`herein, provisional patent application Ser. No. 60/125.353
`filed Mar. 19, 1999.
`
`10
`
`BACKGROUND OF THE INVENTION
`
`2
`with the usage. This requires additional investment in time,
`manpower and equipment for the provider.
`From the consumer aspect, many times the benefit of the
`reward is outweighed by the cost of obtaining the reward. In
`the case of the monthly pass discussed above, for example, the
`customer is required to commit an up-front investment in
`order to obtain the reward. Typically the up-front investment
`is Substantially greater than the near-term cost of the product
`or service. For example, the METRO system in Washington
`D.C. costs at a minimum S1.15 per ride and a customer, if they
`choose, can purchase a METRO card for exactly S1.15. But,
`the METRO offers a reward of 10% for METRO card pur
`chases in excess of S20 and S30, respectively. Consequently,
`although a customer may need only S1.15 in METRO fare for
`his/her immediate use, if the customerfronts in excess of S20
`he/she will be rewarded with an additional $2.00 on the pur
`chased METRO card. Obviously, this reward system requires
`the customer to forecast their expected usage in order to
`determine whether or not the up-front investment exceeds the
`cumulative total of the expected usage. Further, the up-front
`investment may discourage many consumers from participat
`ing in the program. Even though a consumer may have an
`expected usage that would justify the up-front investment, the
`consumer may not be able to afford Such a large investment.
`Additionally, these types of rewards offer little incentive to
`infrequent users.
`Finally, many conventional reward programs implement
`the reward application through the customer's device (e.g.,
`Smart card microprocessor). This is disadvantageous for a
`numerous reasons. It is cumbersome to try and update or alter
`the reward application due to the number of devices that need
`to be updated. Further, assuming that a customer does not
`update his/her reward application, he/she could miss out on
`possible rewards.
`Thus, the current systems and methods for implementing
`typical reward programs are often inefficient from the per
`spective of both the provider and the consumer.
`
`BRIEF SUMMARY OF THE INVENTION
`
`Embodiments of the present invention include a system
`and method that allows a group of organizations, e.g. a group
`of transit agencies, to provide their users with a stored value
`Smart card payment method that rewards them for actual use.
`An embodiment of the present invention includes a system
`for processing a transaction. The system includes a card inter
`face device having a first memory for storing software pro
`grams and a first processor for running software programs,
`wherein the Software programs include at least one reward
`application program with at least one rules file, a payment
`application, and a transaction log file, the reward application
`program determining a transaction award and a Smart card
`capable of communicating with the interface device, the
`Smart card having a second memory for storing Software
`programs and a second processor for running software pro
`grams, the second memory including a main software pro
`gram having an electronic purse application integrated with a
`reward application, wherein the reward application includes
`at least one file utilizable by the card interface device to
`determine the transaction reward.
`An embodiment of the present invention includes a method
`for performing a transaction including determining a trans
`action-based award and facilitating payment for the transac
`tion. The method includes reading reward data from a Smart
`card reward application on a Smart card via a card interface
`device, entering the reward data into a reward application
`program on the card interface device, applying rules from a
`
`15
`
`1. Field of the Invention
`The present invention relates to a system and method for
`determining a reward, and more particularly, to a point-of-use
`reward determination system and method.
`2. Description of the Related Art
`Many providers of goods and services offer rewards to
`those with whom they interact. The rewards may take many
`forms, such as discounts off of the normal price of a good or
`service, free goods or services, or other special offers. These
`rewards are most prevalent in consumer-oriented industries,
`where the consumer has a multitude of choices among com
`peting products and services. The entities within these indus
`25
`tries utilize reward-type programs to attract, maintain and
`expand their consumer base. It is believed that the reward
`applications modify consumer behavior, resulting in
`increased consumer loyalty. For example, in the transporta
`tion realm, monthly passes can be purchased at a price lower
`than the cumulative price of paying for the service on a daily
`basis. Thus, reward applications are key components of many
`providers of goods and services.
`There are a number of disadvantages, impacting both pro
`viders and consumers, in current implementations of these
`types of programs. From the stand-point of the provider, the
`management and operation of these programs can require a
`tremendous investment. Many reward programs utilize a cen
`tral computer system to track and update the reward status of
`the consumers participating in the program. The centralized
`40
`tracking is inherently inefficient, as it requires the plethora of
`transaction information related to the reward program, from
`numerous transaction Sources associated with a multiplicity
`of consumers, to be routed to one location for sorting and
`tracking. The complexity of such a system is further increased
`by the checks and balances that must be implemented to audit
`and account for each step of the process flow. This requires a
`large investment in both capital goods and human resources.
`Further, the traditional reward system requires the devel
`opment and classification of various product categories that
`must be managed throughout the system. For example, in
`transportation services, pass products as rewards may be
`offered for daily, weekly, monthly and other specially-defined
`periods or for other type services, like transfers. As such, the
`variety of product categories requires consumers to search
`through and choose the most appropriate product category
`that the customer wishes to have associated with the current
`purchase. This can be especially cumbersome and frustrating
`when implementing product purchasing through self-service
`terminal devices.
`Additionally, with regard to prepaying for a good or ser
`vice, the provider is often required to implement special
`accounting rules in allocating and tracking the money asso
`ciated with Such goods or services. The provider may have to
`allocate the money to a special prepaid pool. Then, the pro
`vider may need to track actual usage of the good or service
`associated with that prepaid pool to reconcile the prepayment
`
`30
`
`35
`
`45
`
`50
`
`55
`
`60
`
`65
`
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`US 8,498,898 B1
`
`3
`rules file within the reward application program to the reward
`data to determine the transaction-based award, calculating a
`transaction amount, reading payment data from a purse appli
`cation on a Smart card via a card interface device, entering the
`payment data into a payment application on the card interface
`device, processing the payment data to determine the avail
`ability and source of the transaction amount, deducting the
`transaction amount from the purse application, updating a
`purchase transaction log on the Smart card, and updating a
`transaction log file on the card interface device.
`
`BRIEF DESCRIPTION OF THE DRAWINGS
`
`10
`
`15
`
`4
`authorized to overwrite an existing reward program file in the
`card data file and add a new program to the card. Thus, system
`20 of the present invention advantageously provides a point
`of-use reward by maintaining the Software programming for
`determining the reward within CID 24 while keeping the
`relevant data used in the reward determination on Smart card
`22.
`All communications between the smart card 22, CID 24
`and back end system 26 will be handled with appropriate
`security to ensure the integrity, validity and privacy of the
`information being moved. This technology will change over
`time as the Sophistication of interlopers and their access to
`technology increase. As one skilled in the art as defined by
`today's security technology recognizes, all messages would
`be signed and all files MAC'ed. Additional security provi
`sions are included to ensure that proper devices are used in
`critical dialogs such as updating program characteristics on
`the CID or in the case of the Smart card, using techniques such
`as independent mutual authentication for those operations.
`Referring to FIG. 2, CID 24 comprises a terminal for hous
`ing microcomputer 28, contact interface 30 and contactless
`interface 32 for performing a point-of-use transaction. For
`example, CID 24 may comprise a terminal/gateway used to
`gain access to and/or exit from a service. Similarly, CID 24
`may comprise or connect to a point-of-sale (POS) merchant
`terminal. Contact interface 30 or contactless interface 32 may
`be utilized to establish a communications channel with a
`corresponding interface on Smart card 22. For example, con
`tact interface 30 may comprise an interface meeting the speci
`fications of International Standards Organization (ISO) stan
`dard number ISO-7816. Similarly, contactless interface 32
`may comprise an interface meeting the specifications of ISO
`standard number ISO-14443.
`Additionally, CID 24 further comprises audio component
`34. Such as a speaker, display component 36, Such as a moni
`tor, and input device 38, like a key pad or a touch-screen
`monitor when it is combined with display component 36 in
`one embodiment. Audio component 34 and display compo
`nent 36 are used to provide feedback to those interacting with
`CID 24. Further, display component 36 and input device 38
`allow an interactive transaction to be performed.
`Microcomputer 28, in combination with contact interface
`30 and contactless interface 32, comprises interface circuitry
`that advantageously provides CID 24 with an integrated con
`tact and contactless functionality. Microcomputer 28 further
`comprises memory 40, a central processing unit (CPU) 42
`that manages data and runs application programs, and a co
`processor 44 that provides additional processing capability.
`For example, co-processor 42 may be a Triple-DES (Data
`Encryption Standard), a crypto-public key (PK) co-processor,
`and/or another similar encryption capable co-processor that
`provides security for communications utilizing both contact
`interface 30 and contactless interface 32. In one embodiment
`CID 24 interfaces with back end systems 26 via input/output
`(I/O) channel 43 managed by CPU 42. Also, memory 40
`comprises standard memory units known in the art, Such as
`memory units in the form of random-access memory (RAM),
`read-only memory (ROM) and electrically-erasable pro
`grammable read-only memory (EEPROM). Microcomputer
`28 operates under firmware controlled by its internal read
`only memory and formats data and interprets commands
`between contact interface 30 and contactless interface 32. A
`suitable microcomputer 28 having the above-mentioned
`capabilities is the MIFARER PRO microprocessor manufac
`tured by Philips Semiconductors. Similarly a dual interface
`chip is available from Siemens.
`
`FIG. 1 is a schematic representation of one embodiment of
`a system according to the present invention;
`FIG. 2 is a schematic representation of one embodiment of
`a card interface device (“CID) according to the present
`invention;
`FIG. 3 is a schematic representation of the file structure of
`one embodiment of a CID application file according to the
`present invention;
`FIG. 4 is a schematic representation of one embodiment of
`a Smart card according to the present invention;
`FIG. 5 is a schematic representation of the file structure of
`one embodiment of a Smartcard applications file according to
`25
`the present invention;
`FIG. 6 is a flow chart representing one embodiment of the
`process flow according to the present invention;
`FIG. 7 is a schematic representation of local system
`embodiment according to the present invention;
`FIG. 8 is a schematic representation of broad system
`embodiment according to the present invention;
`FIG. 9 is a schematic representation of a remote system
`embodiment according to the present invention; and
`FIG. 10 is a schematic representation of another remote
`system embodiment according to the present invention;
`
`30
`
`35
`
`DETAILED DESCRIPTION OF THE INVENTION
`
`According to one embodiment of the present invention,
`FIG. 1, is a point-of-use method and system 20 for rewards
`comprising a Smart card 22 performing a transaction with a
`card interface device (CID) 24. CID 24 comprises hardware
`and Software and/or firmware programming for determining
`at the time of the transaction whether or not the transaction
`qualifies for a reward. CID 24 makes the reward determina
`tion based on data read from Smart card 22 using the Software
`programming. A reward comprises either a discount applied
`to the current transaction, a credit for a future free transaction,
`access to a special offer, and any other similar type of benefit
`that accrues to the owner of smart card 22. CID 24 then
`determines the transaction amount, taking into account
`whether or not a reward applies and updates and debits Smart
`card 22 for the applicable transaction amount. Further, CID
`24 updates the reward application file and transaction log file
`on Smart card 22, while maintaining its own transaction log
`file. CID 24 communicates with back end systems 26 to
`transfer the transaction log file data for settlement purposes.
`Additionally, back end systems 26 may provide CID 24
`with updated Software programming to initiate changes or
`start new reward applications. For example, if no reward
`application file exists on the card for a program Supported by
`CID 24, CID 24 will check to see if there is space to add
`additional files and adds the reward program file accordingly.
`Alternatively, CID 24 gives the owner a listing of the current
`reward programs so that a consumer can select to overwrite a
`reward program file they no longer use. CID 24 is capable and
`
`40
`
`45
`
`50
`
`55
`
`60
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`65
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`US 8,498,898 B1
`
`6
`TABLE 1
`
`Card Number
`Merchant Transit
`Agency ID
`
`Txn ID
`
`Terminal ID
`
`Txn Date
`Price or Fare S
`charged
`Txn Time
`
`S Discount Granted
`
`Basis For Discount
`
`Level Reached
`
`Loyalty Program
`ID
`Merchant Transit Agency
`ID
`
`Terminal ID
`
`10
`
`15
`
`30
`
`35
`
`45
`
`50
`
`Uniquely identifies the card
`The merchantitransit agency
`or which this loyalty record
`applies. Could be an identifier
`or a group of
`merchantStransit agencies.
`Same as the Loyalty program
`D.
`Unique ID for this transaction
`posted on this loyalty record.
`Could contain authentication
`mechanisms to prevent
`ampering.
`Uniquely identifies the
`device, hence the merchant,
`hat performed this
`ransaction on this loyalty
`record.
`The date of this transaction
`Actual amount deducted from
`he card.
`The time stamp for the
`ransaction.
`Discount from the normal
`are that would have been
`applicable to this route, card,
`ime of day had not discounts
`applied.
`Code that indicates the reason
`or granting the discount.
`Could be because of S
`volume reached, or number of
`ransactions reached. Further
`it would indicate over what
`period (day, week, month,
`year).
`The level reached (S or if) that
`entitled the card to a discount.
`
`5
`CPU 42 and memory 40 are capable of respectively pro
`cessing and storing data and signals representative of algo
`rithms, such as CID operating system 46 and Software pro
`grams such as CID applications 48. CID operating system 46
`and applications 48 may be utilized with either contact inter
`face 30 or contactless interface 32. Operating system 46 may
`comprise standard operating systems or platforms, such as the
`Java R platform, or proprietary Solutions.
`Referring to FIG.3, CID applications 48 comprise service/
`purchase transaction payment and reward application pro
`grams 50. Such as payment application 51 and reward appli
`cation 53, and its associated transaction log file 52 and rules
`file 54 used to run the payment and reward applications.
`Payment application 51 comprises methods and security
`associated with authenticating the payment application, Such
`as an open or closed purse, on card 22 and processing for the
`collection of value for a transaction. Reward application 53
`comprises methods and security associated with authenticat
`ing the reward application on card 22 and adding or subtract
`ing reward value as appropriate for the transaction being
`processed. Payment application 51 and reward application 53
`may pass information between each other (as denoted by the
`dashed line) in a controlled manner, such as under the man
`agement of reward application program 50 or operating sys
`25
`tem 46.
`Further, reward application program 50 comprises the soft
`ware that manages the selection and interaction of the appli
`cation or service between smart card 22 and CID 24 in per
`forming a reward, transaction amount, and/or payment
`determination. The service may comprise an application pro
`gram that provides services and/or manages all of the other
`applications on a card. Such as a security service or update
`service. The programming in rules file 54 for CID applica
`tions 48 is associated with provider a 56, who is the entity
`Such as a merchant or operating authority that implements
`Similar to the schema of TABLE 1, the transaction log file
`and controls the service/purchase and reward application.
`52 of the CID 24 also contains a database that includes data
`CID applications 48 may be set up such that there are multiple
`and logic necessary to perform reward calculations (e.g.,
`rules files 54, each corresponding to a different provider 56,
`40 discount calculations). TABLE 2 sets forth a schema for
`and a single reward application 53 that interacts with each of
`storing and tracking rewards calculation data.
`the multiple rules files 54. Alternatively, CID applications 48
`may be set up with a separate reward application 53 and rules
`file 54 for each provider 56. As such, a single CID 24 may
`comprise applications for: multiple providers 56 each having
`individual reward application 53 and rules files 54; multiple
`rules files and a single reward application for a single pro
`vider, and/or a single rules file and reward application for
`multiple providers. One embodiment of the single reward
`application program for multiple providers, for example,
`allows local merchants to compete with larger, national mer
`chants.
`Transaction log file 52 comprises a detailed data record of
`the specific information associated with each transaction per
`formed between CID 24 and smart card 22. This detailed
`information includes the data typically utilized in the settle
`ment process performed by back end system 26, Such as card
`number, date, amount of transaction, etc. Further, transaction
`log file 52 may comprise additional information specific to
`reward application 53 and used in the reward and transaction
`amount determination process. TABLE 1 below is a schema
`according to an embodiment of the present invention for
`recording transaction payment information within the trans
`action log file 52. The CID will retain the electronic purse
`purchase transaction and append to it as discretionary data the
`information to be tracked for statistical analysis. For example
`the following data would be appended to a purchase record in
`the purchase batch maintained on the CID.
`
`TABLE 2
`The loyalty program
`applicable to the card data
`The merchant transit
`agency for which this
`oyalty record applies.
`Could be an identifier for a
`group of merchants or
`transit agencies.
`Uniquely identifies the
`device, hence the merchant,
`hat performed the last
`transaction on this loyalty
`record
`The Samount to charge for
`a non discounted
`transaction. This will be
`actually several registers
`since different types of
`card, etc., incur different
`transaction charges.
`Today's Date
`The number of transactions
`hat the card needs to
`achieve with this group of
`merchants this week to
`qualify for a discount.
`The number of times that
`the card needs to be used
`
`55
`
`Txn S
`
`60
`
`Txn Date
`# Txins this week
`
`65
`
`# Txins this month
`
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`US 8,498,898 B1
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`7
`TABLE 2-continued
`
`# of TXns this year
`
`TOTS this week
`
`TOTS this month
`
`TOT S this year
`
`S Discount for if Txns this
`week
`
`Discount for if Txins this
`month
`
`Discount for ii of Txins
`his year
`
`Discount for TOTS this
`week
`
`Discount for TOTS this
`month
`
`S Discount For TOTS this
`year
`
`with this group of
`merchants this month to
`qualify for the discount.
`The number of times that
`the card needs to be used
`with this group of
`merchants this year to
`qualify for the discount.
`Total Samount spent on
`this merchant or group of
`merchants this week or
`even this day to qualify for
`a discount.
`Total Samount spent on
`his merchant or group of
`merchants this month to
`qualify for a discount.
`Total Samount spent on
`his merchant or group of
`merchants this year to
`qualify for a discount.
`The actual discount (or
`applicable fare) if the card
`qualifies for a discount
`based on the # of
`transaction this week.
`The actual discount (or
`applicable fare) if the card
`qualifies for a discount
`based on the # of
`transaction this month.
`The actual discount (or
`applicable fare) if the card
`qualifies for a discount
`based on the # of
`transaction this year.
`The actual discount (or
`applicable fare) if the card
`qualifies for a discount
`based on the S of
`transaction this week.
`The actual discount (or
`applicable fare)